Top corporates in Lanka’s first industrial energy push

Daily FT - 29/09/2014

• 11 top Lankan manufacturers in pilot project
•  ‘Round one a success, mulling second!’: Rishad
• ‘Slowly getting-off from oil powered energy’: CEB’s Prof. Perera

Several top Lankan manufacturing firms have been enlisted in the first ever industrial energy initiative as announced on 25 September. As a result of the success, a second manufacturing energy initiative is now being mulled. And, Ceylon Electricity Board is slowly ‘getting off’ from expensive oil powered generation!

Minister of Industry and Commerce of Sri Lanka Rishad Bathiudeen (third from left) inaugurates 12th POWER Sri Lanka 2014 International Expo at Sri Lanka Exhibition and Conventions Centre, Colombo joined by (from left): CEMS Sri Lanka CEO Sarwar, Central Engineering Consultancy Bureau Chairman Nihal Rupasinghe, CEMS Global Asia Pacific Group CEO S.S. Sarwar, EDB Chairman & CEO Bandula Egodage and Ceylon Electricity Board Vice Chairman Professor Kapila Perera on 25 September

 “As our industries were affected during last year’s power price hikes, to support them my ministry has launched Sri Lanka’s first ever Industrial Estate Energy Efficiency Program recently. The selected manufacturers will reduce their annual energy usage by as much as 20% by the end of this year,” said a satisfied Rishad Bathiudeen (Minister of Industry and Commerce of Sri Lanka) on 25 September in Colombo.
Minister Bathiudeen was addressing the inauguration event of ‘12th POWER Sri Lanka 2014 International Expo’ event held at Sri Lanka Exhibition and Conventions Centre, Colombo on 25 September. An important event in Sri Lanka’s Power & Energy sector, this series of exhibitions has also been annually organised in Bangladesh and Indonesia. According to the organiser CEMS Global, it acts as a singular B2B platform bringing all power and energy industry stakeholders together, as well as a networking event. 12 Indian, Chinese firms and more than 15 Sri Lankan firms showcased their products in Colombo. The exhibition successfully concluded on 27 September.

Minister of Industry and Commerce of Sri Lanka Rishad Bathiudeen (right) tours 12th POWER Sri Lanka 2014 International Expo at Sri Lanka Exhibition and Conventions Centre, Colombo on 25 September joined by Asia Pacific Group of CEMS Global CEO S.S. Sarwar and EDB Chairman & CEO Bandula Egodage (centre)

“This series of exhibitions bring world-class technology to Sri Lanka to upgrade our Power & Energy sector and also plays an important role by assembling all the stakeholders under one roof creating a rare and, one-of-a-kind, networking opportunity in the sector. Increasing use of off-grid power is a great need at this moment, not only to reduce consumption expenditure but even to reduce transmission load,” said Minister Bathiudeen, and added: “I am given to understand that, the concurrent exhibition ‘Renewable Energy Sri Lanka 2014 International Expo’ encourages investment in this sector to generate power from renewable sources. This concurrent exhibition therefore could be useful to understand the importance of, such off-grid efforts too.
“More importantly we believe that significant progress could be made in our, Power & Energy sector through successful, public-private partnerships to accomplish the development vision of HE the President Mahinda Rajapaksa.  Apart from Power Generation I also see a definite need for our entrepreneurs to look into the power transmission sector which is being not looked into very well.
“As our industries were affected during last year’s power price hikes, to support our industries, my ministry at a cost of $ 39,000, has launched the first ever Industrial Estate Energy Efficiency Program recently. Based on applications we selected 15 manufacturers including Brandix, Phoenix, Lankem, GTB Steel MRS India, from our industrial estates, for this improvement program. I am pleased to say that 11 of these companies have been successful in all the criteria, in the program.
“They will reduce their annual energy usage by as much as 20% on average from the end of this year. Due to this success, we are now thinking of doing another round of energy efficiency for our industries. As the minister in charge of industries, on behalf of all our industries, I also wish to thank HE the President Mahinda Rajapaksa, for giving 25% reduction on electricity bills.”
“Slowly we are getting off from the burden of expensive oil powered electricity generation. As for my personal opinion what stands in the way is the tariff, and load curve in the night peak 6:30 p.m. to 9 p.m.,” said Professor Kapila Perera, (Vice chairman-Ceylon Electricity Board) addressing the event, and added: “We have 5.4 million customer-bases, which translates to 96% of households of Sri Lanka. We have bigger plans as for ‘Sri Lanka Unstoppable 2020’. By 2020 we are aiming for 6500 Mw capacity, 22% of which will be from renewable energy.”

Jan-August exports up by 14%’-Rishad

Asian Tribune - 26/09/2014

Rishad Bathiudeen (Minister of Industry and Commerce of Sri Lanka-second from left) prepares to address the Fifth National Exporters Forum held at EDB on 25 September as Anura Siriwardene (Secretary, Ministry of Industry and Commerce-far left), Bandula Egodage (Chairman & CEO-EDB-third from left), Sujatha Weerakoone (DG-EDB-far right) look on.

Sri Lanka’s January-August exports have surged by a strong 14%, as announced on 25 September. And more than 110 exporters and Chamber reps have thronged the fifth national Exporters’ Forum in Colombo.

“I am pleased to say that according to the latest provisional data by EDB, January to August 2014 exports have increased by a strong 14.03% to $ 7.34 Bn. As committed exporters, it is your valuable efforts that can help us, to move our target, of $ 20 Billion exports, by 2020, under the committed vision, of HE the President Mahinda Rajapaksa” said a satisfied Rishad Bathiudeen (Minister of Industry and Commerce of Sri Lanka) on 25 September.

Joint Apparel Association Forum (JAAF) Secretary General Tuli Cooray raises an issue on behalf of apparel exporters at the Fifth National Exporters Forum on 25 September.

Minister Bathiudeen was addressing the fifth national Exporters Forum organised by the EDB on 25 September. More than 120 reps from 50 companies and various Chambers-including Hayleys, Expolanka, Enrich Tea, Earnst & Young, DSI, Netle, Acquamarine, and Printcare as well as such chambers as Ceylon Association of Ships' Agents, Ceylon Chamber of Commerce, National Chamber of Exportes, Planters Association, JAAF-took part in the session. Also taking part were Anura Siriwardene (Secretary, Ministry of industry and Commerce), Bandula Egodage (Chairman-EDB), Sujatha Weerakoone (DG-EDB) and top officials of Ministry of Industry and Commerce.

“As committed exporters, it is your valuable efforts that can help us, to move our target, of $ 20 Billion exports, by 2020, under the committed vision, of HE the President Mahinda Rajapaksa” said Minister Bathuiudeen, and added: ”It is here, that I wish to thank you all sincerely for our positive export growth trend. In that I am pleased to say that according to the latest provisional data by EDB, January to August 2014 exports have increased by 14.03% to $7.34 Bn, in comparison to 2013 January-August exports. I am pleased to say that even monthly exports for August 2014, have increased by 2.4%, to $ 978 Mn, from July 2014’s $955 Mn.”

According to the latest provisional data, this increase is seen across all sectors. January to August increase have been led by agricultural products at $ 1.778 Bn increasing by 3.18%, manufacturing at $1.623 Bn increasing by 2.5%, apparel at $ 3.24 Bn increasing by 0.65%, industrial products at $5.343 Bn increasing by 0.91%, Ceylon tea at 1.07 Bn increasing by 3.09%, coconut exports at $356 Mn increasing by 4.2%, and other export crops at $ 315 Mn, increasing by 4.7%. Due to international rubber price decline, natural rubber exports show a decline.

Almost one fourth of issues listed in 25 Exporters’ Forum agenda were resolved successfully.

“These positive outcomes also are a result of the approach adopted by the EDB under my Ministry. In other words it is a result of all our collective engagement and efforts” Minister Bathiudeen said.

More than 100 reps from various government institutions including the Customs, Treasury, BoI, University of Moratuwa, EDB, Ministries of Industry and Commerce, Agriculture, Industrial Development Board, the Ports Authority, and Exchange Control Department too were present to answer exporter queries.

Sri Lanka showcases SME drive at UN’s Export Forum

Daily FT - 25/09/2014

• EDB takes part in WEDF 2014 in Kigali!
• Our brands competing with global brands: EDB’s Egodage
• WEDF 2014 learns of Lankan SME initiatives

A well-known Sri Lankan tea brand received the keen attention of global export experts at the UN’s latest 2014 World Export Development Forum in Rwanda, while the role of Sri Lanka’s apex export body, the EDB, in enhancing SME exports was also revealed to global experts.
“Several Lankan brands play an important part in Sri Lanka’s exports success. Some Lankan brands have been able to compete against larger brands from multinational companies,” said EDB Chairman and CEO Bandula Egodage, taking part in the World Export Development Forum (WEDF) on 16 September in Kigali, Rwanda.

Egodage was one among over 60 eminent international panellists who were sharing their valuable experience on the complexities of exports and their best practices at WEDF held from 15-17 September in Kigali, Rwanda.
The Kigali WEDF brought together more than 1,200 registered participants from 73 countries from governments, trade support institutions and businesses, to debate and identify solutions that contribute to sustainable economic growth and development. The Kigali WEDF 2014, which packed several networking sessions and company visits, was held on the theme of ‘SMEs: Creating Jobs through Trade.’
WEDF is an initiative of International Trade Centre (ITC), a subsidiary of the World Trade Organization (WTO) and the United Nations Conference on Trade and Development (UNCTAD), providing trade-related specialised technical assistance to exports of various economies, especially transition economies.
Egodage, speaking at the parallel session on ‘Building a Brand: Export Marketing for Developing Countries,’ added: “Lankan brands such as Dilmah have been able to compete against large brands from multinational companies and develop their presence in international markets successfully. SMEs are the backbone of Sri Lankan economy and a main player in the export supply chain. The Sri Lanka Export Development Board has launched many initiatives to strengthen SME exports, under the vision of President Mahinda Rajapaksa, and guided by Rishad Bathiudeen, Cabinet Minister in charge of exports.”
In 2013, 82% of Lankan exporters were from the SME sector. Sri Lanka’s Dilmah brand packs over 60 years of history in Ceylon Tea and the family-held brand reportedly follows the entire ‘nursery to tea cup’ value chain process closely.
Egodage also explained SLEDB’s many initiatives to strengthen Sri Lanka’s SME exports at Kigali WEDF 2014. Among recent such initiatives were the increasing number of Lankan SME pavilions in EDB-facilitated trade fairs (locally and internationally), facilitation of linkages between SMEs and international buyers, enlisting SME biz in advisory committees, and closely working with other Government ministries involved in SMEs (such as the Ministry of Agriculture).
Sectors such as leather, handlooms, packaging, food processing, fruits and vegetable and ornamental fish are some of the well-known SME contributors to Sri Lanka’s exports.

Sri Lankan Agricultural Delegation visit Israel

SLEDB organized  a technical exposure and awareness programme in Israel from 10-15 September 2014, for a group of growers of the Sri Lanka Protected Agriculture Entrepreneurs Association in the Central province, to provide  training & awareness on  intensive cultivation methods of fresh fruits & vegetables , other protected agriculture systems, efficient management of water resources & soil, open field irrigation methods, post harvest handling, export packaging  and  marketing.

The programme was conducted with the assistance of the Honorary Consulate of the Israel, The Sri Lankan Embassy in Israel, MASHAV (Israel's Agency for International Development Cooperation) and CINADCO  (Center for International Agricultural Development Cooperation) which is functioning under the Department of Agriculture & Rural Development in Israel.

This  professional program aimed to share with the participants Israel’s approach and experience concerning the development of its horticultural sector and to create a framework for discussion and exchange of knowledge between the participants, Israeli professionals and farmers. The program also included exposure to milk and honey production, small scale agricultural entrepreneurship, a meeting with Israeli companies at the Israeli Export Institute as well as a glance to Israel's history and culture.

The six-day visit allowed participants to get acquainted with intensive and high tech horticulture production systems, post harvest and marketing management  while understanding the challenges and policies of supporting institutions responsible for  research, extension and plant protection & inspection services.

Ceylon Chamber, EDB to lead business mission to Indonesia in October

Daily FT - 23/09/2014

The Ceylon Chamber of Commerce together with the Export Development Board of Sri Lanka is making arrangements to lead a business delegation to Indonesia, to explore trade, investment and tourism opportunities in that country.

The Joint Business Promotion Mission to Indonesia will take place from 7 to 11 October, which coincides with the Sri Lanka – Indonesia Joint Economic Commission meeting to be held in Jakarta.

The members of the delegation are also expected to attend the Sri Lanka – Indonesia Business Forum to be held on 9 October, which will see a large number of Indonesia businessmen also taking part.
A B2B session has also been organised between the businessmen of both countries, while a visit to the 29th Trade Expo Indonesia 2014 which will take place from 8 to 12 October 2014 is also on the cards for the Lankan delegation.

The exhibition showcases some of the best Indonesian export products from the industrial, mining, agricultural and craft sectors.

Interested Sri Lankan businessmen who want to join the delegation to explore trade, investment and tourism opportunities in Indonesia, can do so by contacting Harshini on 5588859 or via harshinif@chamber.lk.

EDB calls for full Lankan exporter registration

Asian Tribune - 19/09/2014

Sujatha Weerakoone (DG-EDB-far left) addresses the “How to Export Quality Fruit & Vegetable to the EU Region” session held at EDB on 16 September as Ms Champika Hewage (OIC, Plant Quarantine Station, Sea Port, Colombo-second from left, seated), Dr Yousuf Maraikkar (ED-EDB-third from left) and Ruwanthi Ariyaratne (Asst. Director-Department of Commerce) look on.

Sujatha Weerakoone (DG-EDB) addresses "How to Export Quality Fruit and Vegetable to the EU Region" session held at the EDB auditorium recently.

Sri Lanka's apex export entity has issued a clarion call to the country's exporter community to register with it and enlist in its surging database on 16 September. "Some non-registered exporters, unaware of procedures have brought a bad reputation for Sri Lanka. It is time all Lankan exporters register with EDB" voiced a keen Sujatha Weerakoone (DG-EDB) on 16 September in Colombo.

DG Weerakoone was addressing "How to Export Quality Fruit & Vegetable to the EU Region" session held at EDB on 16 September.

Recently, the European Commission Director General of Health and Consumers has 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, detecting that of 350 fresh fruits and vegetables (only) consignments that entered EU from 2011 to date, 292 were contaminated with pests.

As per Customs Department data, 3650 exporters of all scales were active in 2013 which included both EDB registered and non-registered exporters. As of 2014 July, 3170 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 EDB as exporters since 01 August 1985, getting into active exports at one time or another.

Sri Lanka starts work on global consumer compliance

Asian Tribune - 21/09/2014

From left: Sujatha Weerakoone (DG-EDB), Antony Taubman (Director of the WTO’s Intellectual Property Rights Division), Anura Siriwardene (Secretary, Ministry of Industry and Commerce), Gretchen Stanton (Senior Counsellor, World Trade Organization) and RDS Kumararatne (DG-DoC) at the 18 September WTO session in Colombo.

Sri Lanka has begun compliance work on the global consumer end of its exports basket on 18 September. And no less than two top experts from Geneva’s WTO are in town to facilitate the pioneering effort.

“Today, more countries around the world continue to reduce their border tariffs, either unilaterally or through an increasing number of free trade agreements, called as RTAs-Regional Trade Agreements. Non-tariff barriers such as SPS and TBT measures have begun to create a significant impact on international trade. Unfortunately, most of these measures appear to be highly complex and increasingly challenging” said Anura Siriwardene (Secretary, Ministry of Industry and Commerce) on 18 September in Colombo.

Anura Siriwardene (Secretary, Ministry of Industry and Commerce) addresses the 18 September WTO session in Colombo.

Secretary Siriwardena, on behalf of Rishad Bathiudeen (Minister of Industry and Commerce), was delivering the keynote address at the “National Seminar on WTO Agreement on Sanitary and Phytosanitary (SPS) Measures” held at the auditorium of EDB on 18 September. The first ever session to be held in partnership with WTO in Sri Lanka on SPS measures, the two day intensive program is conducted in Colombo by WTO Geneva’s Institute for Training and Technical Cooperation and organised by the EDB and the Department of Commerce, both under the Ministry of Industry and Commerce. 18 September session also saw more than 75 reps from 16 firms including CIC Agri Produce Export Ltd, Eastern Allied Agency Ltd, Ceylon Agro Industries, Basilur Tea, Akbar Bros, and Adamjee and Lukmanjee Ltd, eagerly taking part. Also at the session were Sujatha Weerakoone (DG-EDB), RDS Kumararatne (DG-DoC), Dr Yousuf Maraikkar (ED-EDB), and members of the Spice Council including Sarada de Silva (Immediate Past Chairman of the Spice Council). Representing Geneva’s WTO were the two experts-Ms Gretchen Stanton (Senior Counsellor, World Trade Organization-formerly with the US Department of Agriculture’s Foreign Agricultural Service) and Antony Taubman (Director of the WTO’s Intellectual Property Rights Division). “SPS measures” pertain to the international export standards to be adhered to by Lankan exporters when exporting food, animal and plant produce.

As for exports, on 17 September, the Central Bank announced that month of July 2014 exports to be at $955Mn, resulting in 2014 January-July total exports at $6.4 Bn.

“The SPS Agreement is one of the key legal instruments of the WTO-led multilateral trading system. It prevents countries from using various food safety and animal & plant health standards as disguised trade restrictive measures. Therefore, this seminar, will, no doubt, be a highly useful exercise, particularly for the private sector businesses, whose merchandise has to satisfy various SPS requirements on both sides of the borders, as well as all the government authorities, which are responsible for Sri Lanka’s own SPS regime. On behalf of every participant, I would, therefore, like to convey my heartfelt gratitude to the WTO for its most valuable cooperation extended in organizing this seminar” said Secretary Siriwardena, and added: “Today, more and more countries around the world continue to reduce their border tariffs, either unilaterally or through an increasing number of free trade agreements, which are broadly known as Regional Trade Agreements or RTAs in short. The extremely slow progress observed within the Doha Round of Negotiations appears to be the main reason for these mushrooming RTAs. According to the WTO itself, the number of notified RTAs had reached as many as 585 by the middle of this year, while 379 of them were in force. Against this backdrop, non-tariff barriers such as SPS and TBT measures have begun to create a significant impact on international trade. Unfortunately, most of these measures appear to be highly complex and increasingly challenging. Some of them have become even very expensive to comply with. As a result, the LDCs and the resource-poor developing countries, which do not have sophisticated SPS infrastructure at their disposal, are placed at a very disadvantaged position in the international market place. As the Secretary, responsible for Sri Lanka’s foreign trade, I am deeply concerned about the numerous difficulties our entrepreneurs, who make a vital contribution in our economy, continue to encounter in different export destinations. As most of you know already, the Government of Sri Lanka under the leadership of HE the President Mahinda Rajapaksa, has set an ambitious target in achieving $ 20 B exports by 2020. Though ambitious, this is not an impossible target, provided we get our act together and the economic conditions around the world remain conducive. My ministry and every institution that falls within its purview look forward to working very closely with our all stakeholders in this achieving this goal by 2020. In this context, we remain strongly committed to our business community, paving the way for them to play their role in the post-conflict development efforts of the island through job creation and export earnings.”

RDS Karunaratne (DG-Department of Commerce) addressing the event, said: “With increasing trade among WTO members, comes growing health concerns about the goods crossing their borders. As a result of use of SPS increasing. At times they serve to protect the importing country and other times, they act as non-tariff barriers. Sri Lanka is facing a number of SPS related tariffs when it comes to exports. For Sri Lanka, which trying to expand exports, this issue is a serious obstacle. At the same time as a net food importer, and as a country with liberal trade regime, Sri Lanka too needs to learn of the SPS measures to protect its own consumers. As a WTO member, Lanka’s policies too need to be adjusted in par with international trade regimes. Therefore this session will contribute towards a better understanding of this important set of standards.”