Matching global construction standards vital for country’s progress: Rishad

Daily FT - 04/10/2014

• Six construction exhibitions open at BMICH
• Sub-sector grows by 14.4%
• Construction sector 7.3% of GDP

Sri Lanka’s surging construction sector is not only an indicator of economic health, but also an integrator of an important economic layer, meaning that following international standards in the construction sector could help the country’s ‘Hub Status’ journey, Industry and Commerce Minister Rishad Bathiudeen said yesterday.

“The construction sector claims only 7.3% of our GDP. However, the sector is much more important than these numbers would indicate. There is a strong SME presence in this sub-sector,” the minister expressed.
Minister Bathiudeen was addressing the inauguration ceremony of the International Exhibition on Windows and Doors, Aluminium Extrusion, Roofing and Façade, Glass and the 2nd International Exhibition on Sri Lanka Wood at BMICH.

The event, organised by Futurex, was endorsed by the Ministry of industry and Commerce along with many private sector co-sponsors and associate partners. Joining Minister Bathiudeen at the occasion were Industrial Development Board Chairman Nawaz Rajabdeen, Futurex Group Managing Director Prem Anveshi, EDB Chairman and CEO Bandula Egodage and reps from sponsors JAT Holdings, Alumex, and Leitz Tooling.

Bathiudeen asserted that the construction sector was vital for two reasons.

“Firstly, the construction industry has become the clearest sign of the new economic growth phase, thanks to the committed vision of President Mahinda Rajapaksa, in that the immediate proof of our strong economic growth can be seen from construction sector activities,” he said.

“The second reason for its importance is that there is a strong SME presence in this sub-sector. As you may already be aware, more than 65% of our economy is made up of the SME sector. SMEs therefore are our economic driver. Therefore I do not have to tell you of the, importance of it to our economic growth and employment generation.

“This is one reason, why we should pay close attention to our construction sector at all times. Therefore, I and my ministry take pride in endorsing this important initiative, which not only supports the construction sector but also our SMEs. The construction sector becomes ever more important as we aim to become the economic hub of Asia. In other words in the new international phase of the country, our construction sector development too needs to be on par with international designs and innovations for us to achieve the hub status.

“It is here, that today’s inauguration of not just one but six international exhibitions and a forum, all at the same time, becomes an industry and an exhibition milestone that we should commend. Wood, glass, aluminium, roofing, windows and doors are all familiar items in our lives. But today all these are seen at an international level display here. More importantly, I have been given to understand that, this is one of the most prominent international exhibition platforms in Colombo for these sub-sectors. Since electrical equipment too is an important construction component similar to glass and aluminium, I am positive that one day in the future, we will be able to witness this sub-sector being added to this series of exhibitions.”
The Ministry of Industry and Commerce through its SME arm, the National Enterprise Development Authority (NEDA), has allocated more than $ 270,000 for various SME initiatives for 2014.

“Exhibitions such as these help the SMEs most unlike for the rich who have resources to fly out and import technology” said Prem Anveshi (Managing Director, Futurex Group) addressing the event, and added: “For SMEs such finances are not possible and international exhibitions held in their own country, such as these, they are able to see with their own eyes the new technology. That is where the revolution takes place.”
According to the Central Bank, in 2013, the construction sub sector grew by 14.4%, driven by highways, rail & road development projects, mega hotel projects, condominiums and housing units

Russia opens seafood market for Lankans

Daily News - 03/10/2014

Sri Lankan seafood exporters have been invited by Russia to export to the country giving a major boost to the industry.

Russia's Ambassador to Sri Lanka Alexendra Karchava speaking at the Russia Sri Lanka Business Council AGM and a meeting with Sri Lankan seafood exporters said in current political and economic context, Russia is seeking to diversify its food items market and reorient it from European countries by reaching towards new suppliers in new regions, particularly, in Asia.

"Sri Lanka's companies receive wide opportunities to enter the Russian food market and therefore to boost bilateral trade," he said.

Bilateral trade between Russia and Sri Lanka has been increasing over the years, and Sri Lanka's exports to Russia grew from US$ 11.6 million in 2001 to US$ 279.91 million in 2013. 'Sri Lanka's imports from Russia rose from US$ 3.7 million to US$ 145 million during the same period." The trade has now reached the US$ half a billion mark," he said speaking at the Sri Lanka Russia Business Council AGM (SLRBC).

President elect SLRBC, Hiran Karunaratne said there is continued interest from Russian industrialists and investors in the potentiaity of the growing economy that Sri Lanka offers.

"A number of visits and meetings have been facilitated by the Council in recent months concerning opportunities in the different spheres of industry, tourism and trade."

"The Council has had preliminary talks with some retail chains in Russia regarding the possibility of supplying seafood and fresh fruit and vegetables from Sri Lanka. The retailers have requested detailed information on the products, available volumes, production capacity, seasonality, lead times. The Council requests interested companies to make their commercial offers.

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.