Sri Lanka looks to dress more Brazilians

Daily FT - 22/09/2014

First ever top Lankan apparel industry delegation kicks off promotion in giant South American market
By Shabiya Ali Ahlam

Sri Lanka’s apparel sector is looking to dress more Brazilians as the first ever industry delegation kicks off a promotional tour today to tap potential in the giant South American market.

In an effort to expand the buyer base for Lankan apparels, the Export Development Board (EDB) and the Joint Apparel Association Forum (JAAF) together with the Sri Lanka Embassy in Brazil has organised the six day promotional program from 22 to 27 September.

The delegation comprises nine companies – Brandix Lanka Ltd, Hirdramani Group of Companies, E. A. M.  Maliban Textiles Ltd, Timex Garments Ltd, Classic Garment Ltd, Stylish Garments Ltd, Trendy Connections Ltd, Globe Knitting Ltd and Rakshaa Ltd.

They will be showcasing a variety of products ranging from Men’s wear, Women’s wear, Formal wear, Business wear, Sportswear, Denim wear, Casual wear, Active wear, Babies and Children’s wear, Lingerie, Beach wear and Stockings and Hosiery.

The promotional tour includes B2B meetings and a mini exhibition for the first three days followed by visits to corporate offices of apparel buyers.

A key objective of the initiative is to explore market opportunities and establish direct contacts with prospective buyers in Brazil that has an apparel, textile and clothing market estimated at $ 37.2 billion overall and growing at 7 % per annum. Brazil imported $ 6.7 billion worth of textiles and clothing in 2013.

Industry believes Sri Lanka has much to do to be a part of that market as data from EDB indicates that it currently contributes only 0.40% of Brazil’s apparel imports. Currently Brazil’s top sources for apparel imports are China (61.29%), followed by Bangladesh (6.96%) and India (6.11%).

While Brazil is recognised to be of the most promising emerging economies in the world, the EDB and the JAAF noted it as one of the largest upcoming markets in the world fashion industry. In addition to importing fashion clothing, the country also has a well developed fashion industry of its own that comprises of many local brands and designers that are internationally renowned.

Apparel exports in the first seven months of this year have increased by 19% to $ 2.83 billion. In 2013 earnings from apparel rose by 13% YOY, to $ 4.5 billion surpassing the $ 4 billion target set by the apparel industry. Exports to the EU and the US recorded annual growth of 6.8% and 21%.Sri Lanka is working towards achieving an apparel exports target of $ 10 billion dollars by 2016 and it has greater ambitions to occupy a position among the world’s top 10 apparel exporting countries by 2020.

The need for exporters to register with the EDB stressed

Ceylon Today - 17-09-2014

Sri Lanka's apex export entity – EDB, yesterday claimed that some non-registered exporters with no knowledge of procedures have brought a bad reputation for Sri Lanka.

EDB pointed out that, the European Commission Director General of Health and Consumers had recently informed the National Plant Quarantine Services of Sri Lanka that some consignments of fresh fruits and vegetables (only) exported to EU and Switzerland were contaminated with pests, and that of 350 fresh fruits and vegetables (only) consignments that entered the EU from 2011 to date, 292 were contaminated with pests.

EDB Director General, Sujatha Weerakoon, said yesterday that the EDB has issued a clarion call to the country's exporter community to register with it and enlist in its surging database.
She said, of 295 consignments 290 were contaminated. None of the exporters of contaminated consignments were registered with the EDB. These few non-registered exporters, unaware of procedures, have brought a bad reputation for Sri Lanka.
Thus she pointed out that, it is time all Lankan exporters register with EDB.


From 1 August 1985, any and all exporters in Sri Lanka should register with EDB, as per gazetted regulations, in that, anyone exporting any article of commercial value from Sri Lanka on or after 1 August 1985, should register with the EDB. This registration is free of charge and is not a hindrance to the exporter, but rather, brings some benefits to the exporters where it could build a rapport with the topmost export body the EDB. They can enter EDB's database, and from time to time, they could receive relevant export information," she added.


Weerakoon made these remarks addressing a session on 'How to export quality fruit & vegetable to the EU Region,' organized by EDB with the assistance of the National Plant Quarantine Service, Department of Agriculture and the Department of Commerce held at EDB yesterday.


She said during their recent meeting with the Treasury facilitated by EDB, Sri Lanka's committed fruits and vegetable exporters came forward to contribute to make the sector a half-a-billion dollar industry in the future. Also what they were looking forward from the government was mostly policy direction and shaping, rather than funding support for them.
Moreover she said, most fruits and vegetable exporters are SME oriented and down the value chain, there is a significant contribution by them to our employment and farmer society and clusters, having a direct connection to our economy. "Now you can see that despite low export values, how important this sector is."


As per Customs Department data, 3,650 exporters of all scales were active in 2013 which included both EDB registered and non-registered exporters. As of 2014 July, 3,170 such active Lankan exporters have been reported, both EDB registered and non-registered. Interestingly, EDB statistics indicate that 227,853 companies, individuals, and SMEs have been registered with the EDB as exporters since 1 August 1985, getting into active exports at one time or another. Therefore, the overall exporters since 1985 August (both EDB registered and non-registered) could be much higher.


Champika Hewage OIC - Plant Quarantine Station Sea Port, Colombo who made an extensive and in-depth presentation on quarantine procedures adopted in Sri Lanka for fruits and vegetables, pledged to the exporters that when they export these products to markets such as EU, showing exports standards alone may not be enough – sometimes they even need to show that they have followed good agricultural practices. Based on the type of export products, the agency was in a position to help and teach them the necessary steps.


Around 65% of Sri Lanka's fruits and vegetable exports head to the Maldives and the Middle East. In 2013, Sri Lanka exported US$19.69 million of vegetables and US$ 40.82 million of fruits across the world. Fruit exports alone jumped by 118% from 2012 onwards to US$ 19 million. Vegetable exports too increased from US$15.06 million in 2012 to US$ 19.69 in 2013. Despite the low export volumes, both are critical for the Sri Lankan economy due to the social and livelihood importance of them in the SME value chain.


Among the representatives present at yesterday's session were from Aitken Spence Exports, Jagro, Eastern and Allied Agencies, Aloy Expo Ltd., Nidro Supply Ltd., Ceylon Chamber of Commerce, CR Exports, Ellawala Horticulture, Kingsfood, and HNB.
Representatives from Plant Quarantine Station (Sea Port, Colombo), the Department of Commerce also made detailed presentations to the exporters joined by Darshana Perera (Deputy Director – EDB).

EDB starts first ever medical tourism push

Daily News - 15-09-2014

“Professional service exports present a tremendous opportunity and can speed up government’s ‘$20B exports by 2020’ goal. Medical Tourism is one of the most promising sub-sectors in this. We are ready to work with any and all stakeholders to get this off the ground” said Director General, EDB, Sujatha Weerakoone addressing the kick-off session of EDB’s 2015-20 National Masterplan Initiative on Medical Tourism held at EDB last week.

The pioneering session saw top reps from Hemas Hospitals, Asiri Group of Hospitals, Lanka Hospitals, Durdans Hospital, Nawaloka Hospitals PLC, the Health Ministry as well as M.K.S.K Maldeniya (ICT Sector Director-EDB) joining the session. The private sector reps also represent Sri Lanka’s Private

Hospital Association (PHA).

PHA hosts the majority of Sri Lanka’s private hospitals, nursing homes and private healthcare providers as its members. 55% of country’s outpatients and 15% of the country’s in-house patients, are treated by members of PHA -the rest being treated by state sector hospitals & healthcare facilities.

Global Medical Tourism industry annual turnover is not definitive but Patients Beyond Borders, the oft-referenced consumer information source about international medical and health travel estimates that by 2014, the worldwide medical tourism market to be $47B (median value, $55 B at highest), growing 20% annually with 11 Mn cross-border patients worldwide, and $4250 median spending per visit! These visit costs “include all medically-related costs, cross-border and local transport, inpatient stay and accommodations.”

Studies show that around 15% of patients in Sri Lanka are foreign patients, such as from Maldives.”

“Professional service exports present a tremendous opportunity and can speed up government’s $20 B exports by 2020 goal. Medical Tourism is one of the most promising sub-sectors in this. Realising the importance of this, EDB, which strongly believes in Private Public Partnership approach, has decided to make the first ever national initiative to rally the healthcare providers as well as stakeholders and formulate a common voice for 2015-20 National Masterplan Initiative on Medical Tourism.”

The private healthcare reps at the session pledged prompt support, even declaring this to be a ‘much needed initiative’. Dr Lalith Peiris (CEO-Lanka Hospitals), addressing the session said: “We are very happy that the EDB is taking a lead role in this much needed initiative specially at a time when many medical tourism destinations such as Thailand, Singapore, Malaysia etc are competing and out-pricing themselves. This initiative can also help bring high net worth tourists instead of budget tourists and the ‘wellness medical tourism’ is a huge growth area.”

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.