FACETS 24th edition ends on a high note

Daily FT - 13/09/2014

The 24th edition of FACETS Sri Lanka 2014, the international gem and jewellery exhibition organised by the Sri Lanka Gem and Jewellery Association (SLGJA) ended in a high note. The event was very successful with over 150 stall holders including individual exhibitor pavilions from The National Gem and Jewellery Authority (NGJA) and an SME pavilion from the Sri Lanka Export Development Board (EDB).
In addition, over 100 international buyer delegations attended the expo, across China, India, Myanmar, Dubai, Singapore, Thailand, Hong Kong, USA, Russia and Germany. Stall holders from Singapore, Dubai, Myanmar, China and India also participated at the event.

Speaking about the successful 24th edition, FACETS Sri Lanka 2014 Chairman Juzar Adamaly stated, “Having started in 1991 with just 50 booths at the Hilton, to filling up the BMICH Exhibition centre with over 150 booths (and having a waiting list), the international gem and jewellery exhibition has made a long and successful journey. We thank all who made this event a success and we look forward to seeing you at the 25th Silver Jubilee FACETS Sri Lanka celebrations next year. Special note of appreciation to The National Gem and Jewellery Authority and EDB for the continuous support provided to make this event a success.”
More than 10,000 visitors including local and foreign witnessed a grand display of Sri Lankan gem and jewellery quality production. Key highlights included displaying of precious and semiprecious gems as well as an exclusive hall dedicated to jewellery, lapidary and machinery items. Knowledge sharing sessions included a series of seminars conducted by international and local panellists this year and a networking and fellowship session with the international buyer delegation.

EDB in new push for Japanese IT market

Daily FT - 13/09/2014

As Sri Lanka’s IT exports topped $ 719 m, a business journalist from world’s fourth largest selling newspaper was taken by surprise by the country’s inroads into one of the most demanding niche software markets in the world.
“I am really surprised by your ability in our platforms. This is news!” exclaimed Yuichi Kiriyama, business journalist of Japanese language Mainichi Shimbun, the world’s fourth largest selling newspaper.

Yuichi was addressing a special gathering of the software interest group for the Japanese market held on 5 September in Colombo facilitated by the EDB.

Led by EDB ICT Sector Director M.K.S.K. Maldeni, the session was attended by reps from leading industry players such as Seneru Information Technologies Ltd., MaxSolPro Ltd., 99x Technologies, OpenArc System Mgmt Ltd., Orion Development Ltd., hSenid Software and Information and Communication Technology Agency of Sri Lanka (ICTA).

The 5 September session was an outcome of the EDB’s successful May 2014 IT delegation to Tokyo.
To further boost Sri Lankan IT&BPM presence in Japan, last May, EDB’s Assistant Director R. Swarnapali accompanied a team of Sri Lankan IT&BPM firms to world’s second largest trade show on Information Technology (IT) called ‘Japan IT Week’ held at Tokyo Big Site international exhibition centre.

Among the Lankan companies taking part in Tokyo were Tellida Ltd., Sulva Sutra Concepts Ltd., Orion Development Ltd. and Openarc Systems Management Ltd. the Sri Lankan Embassy in Japan had also arranged meetings for the delegation with institutions such as Japan Information Technology Service Industry Association (JISA), Tokyo Chamber of Commerce and Industry (TCCI), Japan Users Association of Information Systems (JUAS), Fujitsu and Cannon IT Solutions Inc and JETRO Japan.

The 5 September session with Japanese media rep was a follow-up of the May ’14 delegation to Japan in which the progress of the visit was reviewed and Sri Lanka’s capacity was introduced to Japanese media.
To compete successfully in the Japanese software market, the software interface needs to be in Japanese, which is demanding since it is spread across no less than three alphabets totalling 8,092 characters.
Yuichi was surprised by the software capabilities showcased by Lankan software maker MaxSolPro Ltd. for Japanese platforms.

MaxSolPro CEO M. Gazzaly said: “We are totally Sri Lankan-owned firm. Japan is a specialised software market and you need high standards. For example, our Golvi Voice Navi, the voice navigator for golf players in thousands of Japanese golf courses, has been received well in Japan. We developed it with Digitalvox. It is a GPS-driven high-tech hand-held gadget that speaks to you and gives you exact directions to the tees, fairways and location of holes, etc., in all top golf courses in Japan. It first identifies the golf course automatically and loads the full profile at start. While playing, the player wearing voice navi does not need to worry about where to turn next! We are also into many other apps in Japanese language, such as the widely used jpTravel app.”

In 2013, Sri Lanka’s IT and Business Process Management (BPM) exports stood at $ 719 m, surging 237% from 2007; 77% of 2013 exports were BPM. Sri Lanka has set a target of $ 5 b IT&BPM exports by 2022, of which it expects 62% to be BPM while also creating 200,000 jobs and 1,000 start-ups by the target year.

To support the growth targets, in its National Budget 2014 the Government proposed a five-year half tax holiday for new partnerships or firms engaging in international services in the field of accountancy, commerce, finance, law, IT, engineering and architecture.

“Sri Lanka’s software industry is not widely known in Japan,” said Yuichi. “But now we are getting to know about it.” He also learnt in-depth about the Sri Lankan IT industry’s progress directly from EDB and industry officials present on the occasion.

Mainichi Shimbun is the world’s fourth largest selling newspaper with a reported readership of 12 million in Japan (within Japan itself, it’s the third largest; topmost is Yomiyuri Shimbun and secondly, Asahi Shimbun).

First ever business delegation from Finland due in December

Daily FT - 10/09/2014

Minister of Industry and Commerce Rishad Bathiudeen and Finland’s Roving Ambassador for Bhutan, Maldives, Pakistan and Sri Lanka Rauli Suikkanen hold discussions in Colombo last week

The first-ever high level trade and business delegation to Sri Lanka from the world’s ICT leader is now mulled for early December.
“I have been able to encourage my Government to renew trade cooperation with Sri Lanka. I have been highly encouraged by the rapid development seen in Sri Lanka. The first-ever Finnish business and investment delegation is now being scheduled for the first week of December 2014,” announced Finland’s Roving Ambassador for Bhutan, Maldives, Pakistan and Sri Lanka Rauli Suikkanen on 4 September in Colombo.

Suikkanen was addressing Minister of Industry and Commerce Rishad Bathiudeen during a courtesy call on Bathiudeen. Also present was EDB Chairman and CEO Bandula Egodage.

“I am very happy two Finnish firms are already successfully operating here in water and power sectors. Finland is world reputed for shipbuilding, telecom such as Nokia which used to be Finnish, ICT and even clean technologies. I see a lot of potential in Sri Lanka and Finnish businesspersons want to come here and find out the latest developments status in Sri Lanka,” Suikkanen said

“I congratulate Sri Lanka on its strong growth. I am very proud to be the Finnish Ambassador to Sri Lanka, especially since we are celebrating 50 years of diplomatic relations this year. We have lots of high tech which could support Sri Lanka’s education development as well. Finland’s IT leadership in the world is well known. We have not finalised the delegation yet but the Finnish Government’s promotion agency FINPRO is organising the business sectors reps to Sri Lanka. Their reps in New Delhi are now working on this. The Finnish development finance firm FinnFund is also involved, and more importantly ‘Finnpartnership,’ whose mission is to increase commercial cooperation and promote business partnerships between companies in Finland and in developing countries, will also be partnering with business feasibility studies and in linking matching firms at both sides. The first-ever Finnish business and investment delegation is now being scheduled for the first week of December 2014.”

The Nordic powerhouse Finland is the lead producer and user of information and communication technology (ICT) in the world and ranks No. 1 in the Legatum Prosperity Index. It is also the birthplace of global brands such as Nokia, and Nokia Siemens Networks, Neste Oil, Finnair, F-Secure (IT sector), and Viking Line (shipping).

Bathiudeen said: “Thanks to the committed leadership of President Mahinda Rajapaksa, we have seen rapid growth and expect GDP growth this year at 7.8%. This is the time to invest in Sri Lanka for keen Finnish investors. We are very pleased to welcome a leading business delegation from Finland and are ready to give our fullest support in this regard. The EDB can facilitate B2B sessions. I also observe that bilateral trade volume was at a low $ 28 m in 2013, which shows both countries are promising virgin markets to each other. Therefore for both countries this is breaking of new ground.”

According to the Department of Commerce, Sri Lanka’s trade with Finland has been fluctuating for the last few years and reported $ 28 m in 2013, with exports comprising $ 16.05 m. Tea is the main item exported to Finland (55% in 2013) followed by apparel.

The leading import from Finland, mobile cellular phones, saw their peak in 2010 and from 2011 was overtaken by marine propulsion engines and electric generating set imports followed by paper and cinema cameras. Sri Lanka is a GSP Beneficiary Country under the EU GSP Scheme, which gives an added advantage for Sri Lankan exports to Finland.

Bathiudeen and Suikkanen also emphasised on the progress of other forms of bilateral cooperation between both countries.

ICA to host 16th Congress in Sri Lanka

The International Colored Gem Stones Congress(ICA), the sole global think-tank which serves to benefit the colored gemstone industries have chosen Sri Lanka as its host country for its 16th congress to be held in May 16th - 19th, 2015 in Colombo at the Cinnamon Grand Hotel.

This is the second time that Sri Lanka will be hosting the prestigious ICA event which prides itself for uniting various segments of the colored gem trade. The theme for the event is `Sapphire and MORE`. A `Facets Congress Gem Show` will also be held from May 15th to 18th at same venue.

The event which is to be attended by leading international buyers, Gem and Jewelry academia, professionals, manufacturers, marketers and suppliers from all over the World has been poised as an occasion for networking and developing new business opportunities whilst showcasing the lucrative local gem and jewelry trade.

The ICA is in coordination with the main organizers, the National Gem and Jewelry Association of Sri Lanka (NGJA) and the Sri Lanka Gem and Jewelry Association (SLGJA) along with the Export Development Board (EDB) in planning and organizing this prestigious event.

ICA is a non-profit association which has a membership of over 500 members from 42 countries representing 75% of the purchasing power of the international market for colored stones.

The ICA often organizes congress on different issues ranging from promotion to the production of gemstones. The main purpose of the congress would be to link the various segments of the colored gemstone industry.

ICA to host 16th Congress in Sri Lanka

The International Colored Gem Stones Congress (ICA), the sole global think-tank which serves to benefit the colored gemstone industries have chosen Sri Lanka as its host country for its 16th congress to be held in May 16th – 19th, 2015 in Colombo at the Cinnamon Grand Hotel.

This is the second time that Sri Lanka will be hosting the prestigious ICA event which prides itself for uniting various segments of the colored gem trade. The theme for the event is “Sapphire & MORE”. A ‘Facets Congress Gem Show’ will also be held from May 15th to 18th at same venue.

Spice exports up 40% in 2013

Sunday Observer - 07/09/2014

Sri Lanka's spice exports rose 40 percent to $329 million in 2013 from $ 236 million in 2012. Spice export revenue was US$ 115 million in 2009, Export Development Board EDB statistics revealed.

As Sri Lanka's spice exports leaped by 40%, a new program was launched by the EDB last week to boost exports of the perennial crop. Meanwhile, a leading packaging consultant said that the Sri Lankan export packaging sector is now maturing with more ‘high barrier package’ visibility.

“The key factor is how to market our spices. Our spices are traditionally exported in bulk form. Sri Lanka now encourages value added exports and discourages raw exports.

We need an open dialogue among exporters, industry and the EDB to boost exports,” EDB Chairman Bandula Egodage told the first national packaging awareness seminar organised by EDB for spice and allied product exporters.

“The key factor is how to market our spices. The first impression from packaging tells a lot to the consumer. Production of raw material is encouraged but not exporting it, since value addition should be done here for much needed foreign currency,” he said.

“The primary objective of today's event is to create awareness on packaging quality. Second, to identify global trends - easy identification and novel appearance in packaging enhances brand value and creates additional sales. Third, we need an open dialogue among exporters, industry and EDB so that exports are boosted,” Egodage said.

“The global packaging awareness session is another initiative by the government to move spice exports, specially cinnamon, away from being exported in bale form to consumer-friendly packaging material,” said DG, EDB, Sujatha Weerakoone.

“This change in packaging not only assures quality but even build's Sri Lanka's image while increasing exports. Packaging should reach the consumer in its original condition,” she said.

“We invite the Lankan packaging sector to take part in various international trade fairs facilitated by the EDB but with your own financial arrangements. The internationally accredited ‘Pure Ceylon Cinnamon Global Certification’ lion logo was not given by the government to any particular company but only to a particular product design of the given company,” Weerakoone said.

“The ownership of Pure Ceylon Cinnamon Global Certification is vested with the EDB. This certification would give maximum value to our own true cinnamon, which faces competition from cheap cinnamon known as Cassia,” she said.

Lankan cinnamon exporter firms which were successful in fulfilling the criteria to win the official sanction for the use of the internationally accredited ‘Pure Ceylon Cinnamon Global Certification’ were awarded certification recently at the EDB.

“The design of the packaging sells the product. The 'packaging barrier’ determines the performance of the product, which in turn, determines whether the consumer will re-purchase it or not and therefore, it's a key ingredient,” said Packaging Consultant and a former top executive of an FMCG multinational, Abhaya Seneviratne.

“The ‘packaging barrier’ means to what extent the packaging material can keep the product inside without becoming spoilt by the environment,” he said.

“For instance, a high barrier plastic film packaging can seal spices well from seeping moisture and water, while the same spices packaged in a gunny sack could be contaminated due to the weak nature (low barrier) of the sack,” Seneviratne said.

Lanka-China FTA electrifies $8B global apparel giant to action

Asian Tribune - 06/09/2014

Mark Green (Executive Vice President of Global Supply Chain of New York’s PVH Corporation-left) meets Rishad Bathiudeen (Minister of Industry and Commerce of Sri Lanka-right) in Colombo on 14 August.

The forthcoming Lanka-China FTA has electrified no less than a $8B global apparel giant who is also the world’s largest shirt maker. “We are very excited about the forthcoming Lanka-China FTA; having duty free market access to China is very important for us as an apparel sourcing firm and the benefits are great.

This is even more important for us since we have considerable income from Asia-30% of our turnover from Calvin Klein brand alone originates from Asia!” said Mark Green, the Executive Vice President of Global Supply Chain of New York’s PVH Corporation on 14 August in Colombo.


Executive VP Green was addressing Rishad Bathiudeen (Minister of Industry and Commerce of Sri Lanka) on 14 August during his meeting with Minister Bathiudeen at the Ministry of Industry and Commerce, Colombo 3.

“Things are going very well with PVH. Recently we opened an office in WTC and reached $80 M business with Sri Lanka” said Executive VP Green, and added: “Since we acquired the global brand Calvin Klein the intimate apparel product line has become very important in our turnover. We are looking at working with Lankan apparel makers MAS, Brandix, Jinadasa, and Hirdramani Group–they are our big suppliers. We want to grow our business here further. Sri Lanka has been best in apparels, particularly intimate apparels in my experience. We source from around the world and one of the things I see is that Sri Lankan apparels is a role model for other countries to study and follow-because when you look at what you have done here in intimate apparels, its remarkable-lean manufacturing model which MAS started is probably a best in the world. Sri Lanka is also considered to be a world expert in apparels manufacturing-in compliance record, CSR and sustainability such as work on carbon neutral factory. When you compare with other apparel producers in the regions, Sri Lanka is way ahead and should be credited for that. PVH is seen as an American corporate but we are in fact Glocal in nature. We are very excited about the forthcoming Lanka-China FTA-having duty free market access to China is very important for us as an apparel sourcing firm and the benefits are great. This is even more important for us since we have considerable income from Asia-30% of our turnover from Calvin Klein brand alone originates from Asia! Having a production centre in Sri Lanka with duty free access to China market is very exciting for us. This is really exciting!”

The New York Stock Exchange (NYSE) listed PVH Corp (or Phillips-Van Heusen) is one of the largest lifestyle apparel companies in the world (and also reportedly the world’s largest shirts provider). Most of its brands are virtually household brands-Calvin Klein, Tommy Hilfiger, Van Heusen, IZOD, Bass, ARROW and Eagle. PVH reported $8.2 Bn in revenues in 2013, exceeding previous projections for 2013. PVC has 2035 stores across the world, 1025 of which are in Europe. PVH’s 2013 revenue projection stands at $8 billion.

Responding to Executive VP Green, Minister Bathiudeen said: “We are aiming for new levels of bilateral trade cooperation with China and under the leadership of HE the President Mahinda Rajapaksa. Sri Lanka-China FTA would create great opportunities for both countries. We have concluded joint feasibility studies on this FTA. Now we have started second round of negotiations. I am pleased to inform you that one of the items we look forward to make duty free in this historic FTA could be apparels! Under the guidance of HE the President Mahinda Rajapaksa, we are aiming to conclude the free trade pact during the forthcoming first ever visit of Chinese Premier to Sri Lanka. There is no doubt that this historic agreement would be a great opportunity not only for PVH but many such global multinationals who want to leverage our strategic hub positioning.”

According to the Department of Commerce of Sri Lanka, bilateral trade between Sri Lanka and China has grown by 15.2% in 2013 to $3.08 Bn from 2012’s $ 2.67 Bn. Sri Lanka’s exports to China in 2013 rose by 12.49% to $122 Mn from 2012’s $108.12 Mn. China has come within the first 20 export destinations for Sri Lankan products.

Also present at the 14 August session were Bandula Egodage (Chairman and CEO-EDB), RDS Kumararatne (DG-Department of Commerce) and M Raghuraman (CEO, Brandix Market Watch, Brandix Lanka Ltd).