US-SL trade talks conclude in Colombo

Daily FT - 16/10/2014

• GSP, labour, trade promotion among discussed items
• SL-US biz relationship at $ 3 b: Trade Rep Delaney
• US Ex-Im Bank renewing ties with Lanka: Rishad
• US biz team also in town, US-SL Biz Forum today
• YoY SL-US trade up by 21% to $2.8b

Minister of Industry and Commerce Rishad Bathiudeen (third from left) addresses the 11th Joint Council Meeting under the US-Sri Lanka Trade and Investment Framework Agreement joined by SL Embassy in Washington DC Minister Counsellor Bandula Somasiri (far right), Sri Lanka’s Ambassador to the US Prasad Kariyawasam (second from right), Ministry of Industry and Commerce Secretary Anura Siriwardena (fourth from right), DoC DG R.D.S. Kumararatne (fifth from right) and MoIC Additional Secretary Sheita Senaratne (sixth from right) and Minister (Commercial) at Lanka Embassy in US Bandula Somasiri (right)

Talks under the Sri Lanka and US Trade and Investment Framework Agreement (TIFA) concluded yesterday in Colombo, reiterating the commitment to foster greater bilateral economic engagement.
“The US-Sri Lanka Trade and Investment Framework Agreement (TIFA) is the premier dialogue for managing bilateral trade and investment relationship between both countries. This relationship amounts to $ 3 b” said Michael Delaney, the visiting Assistant United States Trade Representative for Central and South Asia yesterday in Colombo.

Delaney, who is leading a 10-member official delegation to Sri Lanka, was addressing the 11th Joint Council Meeting (JCM) under the US-Sri Lanka Trade and Investment Framework Agreement (TIFA) at the Taj Samudra, Colombo.

Visiting Assistant United States Trade Representative for Central and South Asia Michael Delaney addresses the 11th Joint Council Meeting under the US-Sri Lanka Trade and Investment Framework Agreement held at the Taj Samudra yesterday

Joining Trade Representative Delaney in his team were Andrew Mann (Chargé d’Affaires of the Embassy of US in Sri Lanka), Ann Zollner (Division Chief, Trade Policy and Negotiations, Bureau of International Labor Affairs/United States Department of Labour), Matthew Beh (South Asia Trade Officer/United States Department of State), Ryan Essman (Sri Lanka and Maldives Desk Officer/United States Department of State), John Michael Fleming (Commercial Consul/US Consulate General Chennai), Manimala Venkatram (Senior Commercial Specialist/US Consulate General Chennai), Jessica Slattery (Foreign Affairs Officer/US Department of State Office of International Labour Affairs), Kalpana Reddy (South Asia Intellectual Property Attaché/US Embassy New Delhi, India) and Allison V. Areias (Economic and Commercial Counsellor/Embassy of USA, Sri Lanka).

Joining the opening session were Minister of Industry and Commerce Rishad Bathiudeen, Sri Lanka’s Ambassador in USA Prasad Kariyawasam, DoC DG R.D.S. Kumararatne and EDB Chairman/CEO Bandula Egodage.

The 15 October technical session was co-chaired by Trade Representative Delaney and Ministry of Industry and Commerce Secretary Anura Siriwardena). Twenty-seven delegates from the Sri Lankan side, including reps from the Ministries of Industry and Commerce, Agriculture, Economic Development, Labour Relations, Civil Aviation, Petroleum Industries, Investment Promotion, Highways, Ports and Shipping, External Affairs and Finance and Planning, as well as Sri Lanka Customs, Ports Authority, Sri Lanka Tea Board, BoI and EDB were in attendance.

After the conclusion of the session, a joint message by both Sri Lanka and the US on the 11th United States and Sri Lanka TIFA Joint Council Meeting was issued, which stated:
“Senior officials from the Governments of the United States and Sri Lanka met today to continue their trade dialogue and evaluate progress under the United States-Sri Lanka Trade and Investment Framework Agreement (TIFA). The officials discussed a wide range of trade and investment issues including market access, the US Generalised System of Preferences (GSP), labour, trade promotion efforts, intellectual property rights, agriculture, and sector-specific investment challenges. Progress on all of these trade and investment issues fosters economic growth, thus providing a strong foundation for inclusive economic development.

“The meeting marks the 11th session of the US-Sri Lanka TIFA Council. The US-Sri Lanka TIFA, signed in 2002, has been the primary forum for bilateral trade and investment discussions between the two countries. The TIFA process has been the focal point of a sustained and multi-faceted high-level engagement between the United States and Sri Lanka on trade and investment issues, including addressing impediments to greater trade and investment flows between the two countries.

“During the TIFA Council Meeting, both parties took note of progress made in the subcommittee working group on labour. The TIFA process encourages public and private sector dialogue and facilitates private-public partnership conferences, business opportunities, events and investment fora on the sidelines of TIFA official meetings. Following this tradition, the US-Sri Lanka Business Forum will be held at the Ceylon Chamber of Commerce at 10 a.m. on Thursday, 16 October.”

At the morning’s opening session, Trade Representative Delaney said: “Being the premier dialogue channel, we attach considerable importance to the TIFA and in our view, over the years TIFA has proven that it has been successful in deepening our economic relationship. The US greatly values our trade and investment relationship with Sri Lanka. That relationship is responsible for a lot of beneficial things and is hundreds of years old. Today we in this room have been entrusted to manage this relationship and take the necessary measures that will enable it to continue to grow. Our economic relationship is about creating employment and prosperity for both our countries. We have accomplished much and we can do so much more. Today we have a diverse agenda of issues to work through and let address ourselves to this task, and grow our economic relationship.”

Bathiudeen, delivering his inaugural address at the morning session, said: “We are pleased that this is the fourth occasion Delaney is visiting Sri Lanka. It is with satisfaction that recall as to how you generated support of the US Government for Sri Lanka’s Conflict Affected Widows Project and facilitated a significant monetary contribution for project commencement, thereby uplifting their lives. I am happy to note that a US business and investment team is now in Colombo on the sidelines of TIFA talks. My Ministry will be hosting the US-Sri Lanka Business Forum in association with the Ceylon Chamber of Commerce and AMCHAM Colombo, followed by B2B meetings.

“Today’s senior officials’ meeting will cover many important aspects, thereby opening the door to jointly explore new opportunities in trade and investment. TIFA has become a very effective mechanism for the two governments to advance trade and investment interests, since it began in 2002. As Sri Lanka takes on a journey to become the economic hub of South Asia, it is clear that TIFA’s importance will continue to grow.
“Thanks to the visionary leadership of President Mahinda Rajapaksa, Sri Lanka is now on a journey to become an upper middle income country in the near future. Sri Lanka is reporting stronger GDP growth and modern infrastructure facilities, as well as a better positioning to become the economic hub of South Asia. Due to our strategic location, the proposed five hubs plus tourism strategy, the new port and airport infrastructures, and our connectivity, our international trade is improving.

“As for bilateral trade, the US is the single largest buyer of our exports since 1979. Seen from our side, bilateral trade between both countries increased by a strong 21% to 2.8 billion dollars in 2013, compared to 2012; the US absorbs 23% of Sri Lanka’s annual total exports, of which 73% comes from high-end apparels. Sri Lanka also has the most liberal investment climate in South Asia. According to the Washington-based Heritage Foundation’s Index of Economic Freedom of this year also, Sri Lanka has maintained its commanding position as the most economically-free nation in South Asia.

“The US is an important source of Foreign Direct Investments to Sri Lanka. So far there have been more than 220 US investment projects to the value of around $ 400 million. Speaking of investments, I understand that the US Export Import Bank has renewed its partnership with Sri Lanka after almost a decade. Through its facilitation, a US company has invested $ 65 million in a water supply project in Badulla District. I invite other US investors to make use of Export Import Bank’s benchmark initiative for infrastructure development projects in Sri Lanka.”

Sri Lanka Pavilion at Gardex / IFEX 2014 on Oct. 15-17 in Japan

news.lk - 15/10/2014

The Sri Lanka Export Development Board (EDB) with the assistance of the Sri Lanka Embassy in Tokyo, Japan, has organized a Sri Lanka Pavilion at the Gardex / IFEX 2014 International Garden Exhibition from October 15 to 17 in Japan.

Eight (08) leading Sri Lankan exporting companies from Coconut Based Substrate and a leading Foliage and Live Plants exporter exhibits at this event.

The Sri Lanka Country Pavilion showcases the following range of products during the event:

Coco peat grow bags
Coco peat planter bags
Coco peat bales, disks and briquette
Coir mattings
Coir pots and decorative Coconut shell pots
Cut foliage and potted plants
Japan is one of the main destinations for Coconut based substrate other than the EU countries and it shows a huge potential for further expansion through the demand created with their intensive farming systems.

Sri Lanka Export Development Board has organized Sri Lanka's participation at Gardex 2014 targeting Coconut based substrate, Cut foliage and potted plants.  This exhibition is targeting entire Gardening industry including Gardening Equipment, Floriculture and Gardening inputs.

Since this show is very popular in all other Asian countries such as Korea and China which are the other main target markets for Sri Lankan products, the participants could establish business linkages with these countries by participating at this event.

56% of export target achieved: Rishad

Daily FT - 08/10/2014

• Jan-Aug exports bring Lanka closer to ’14 target

With latest January-August export totals, Sri Lanka has clinched 56% of annual export target for 2014 while the spice sector has returned, as revealed on 3 October. Meanwhile, the spice industry is full of praise for the Government for the assistance lent to the sector’s development.

“By end of this August we have already achieved 56% of our annual national export target for year 2013. Thanks to you, the committed spice and other product exporters, we are able to move towards our overall $ 20 b target now,” said Minister of Industry and Commerce Rishad Bathiudeen on 3 October in Colombo.
Bathiudeen was addressing the 11th Annual General Meeting of The Spice Council (TSC) at the Taj Samudra Hotel.  Also present on the occasion were Minister of Minor Export Crop Promotion Reginald Cooray, DoC DG R.D.S. Kumararatne, EDB DG Sujatha Weerakoone, The Spice Council Chairman Nanda Kohona, founder Chairman of the Spice Council of Sri Lanka Sarada De Silva, top officials of EDB and many leading members of Sri Lanka’s spice industry.


The AGM featured many speeches, analyses and presentations of the sector by members of the spice industry.

“The strong performance of minor export crops has returned in 2103 after a decline in 2012. The production of cinnamon, pepper, cloves, cocoa, etc recorded a growth in 2013,” said Bathiudeen. “Even cashew production has increased in 2013, helping our exports. Spices are also the biggest item in our overall six-item basket of ‘export crops’; 45% of the $ 315 m export crop values in 2013 was claimed by spice exports. I am pleased to inform you that the 2014 January-July spice exports stood at $ 143 m.

Commenting further, Bathiudeen said: “When it comes to exports 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 b, in comparison to 2013 January-August exports. Even provisional monthly exports for August 2014, have increased by 2.4% to $ 978 m from July 2014’s $955 m. What this means is that, by end of this August, we have already achieved 56% of our annual national export target for year 2013. Thanks to you, the committed spice and other product exporters, and industry representatives, we are able to move towards our overall target of $ 20 b exports by 2020, under the committed vision of President Mahinda Rajapaksa.

“There is no doubt, that Ceylon spices have strong potential in the global premium markets. In view of this, My Ministry has, taken many important initiatives, to enhance the spice sector. Firstly, at a cost of $ 42,000, we have enlisted 28 companies, including several spice companies, and are supporting them to obtain, ISO 22000 certification within this year. The full certification, charges for, every selected company, will be paid by us. Secondly, we also submitted a proposal to the value of $153,000 to the Treasury to support, Spice industry value addition, for medium scale spice industries of Sri Lanka starting 2015. Thirdly, the important project ‘Enhancing the cinnamon value chain in Sri Lanka’ implemented through the Spice Council at a cost of, $ 830,000, with support of WTO, this project is one of the biggest projects by us to upgrade Sri Lanka’s spice industry. It will facilitate the industry to obtain ISO 22000, and HACCP certifications.

“In addition, the project will support the EDB to protect the national Pure Ceylon Cinnamon trademark through a Geographic Indication scheme in the international markets. We thank the WTO for this support. The Spice Council’s vision is to make Sri Lanka to be within the top five branded and value added Spices and Allied Product marketers in the world. I am pleased to say that not only the Spice Council but all line Ministries, agencies, and the industry too call for the same and we extend our maximum support in this regard.”

Sri Lanka’s total spice exports which stood at $115 m in 2009 tripled to $329 m by 2013.
Addressing the session, Immediate Past President and founder Chairman of the Spice Council of Sri Lanka Sarada De Silva said: “From 2008-2013, the spice sector has been growing by 3% per annum and its value added sub-sectors such as oleoresins, cinnamon oils are growing by as much as 15% annually. Here lies the opportunity for us! Value addition and planning is the way forward for this sector. We branded our cinnamon with the launch of the Lion Logo by President Mahinda Rajapaksa. The industry looks forward to GI Indication of Cinnamon in the EU. Minister Bathiudeen, your Ministry, along with the EDB and Secretary Anura Siriwardene, are working hard for the development of this sector for which we express our thanks and also pledge our fullest support.”

Announcing his intentions to retire, Sarada De Silva said: “On a very personal note, I have been involved in the spice sector in general and in cinnamon industry in particular, for the last 40 years. I am retiring from all day-to-day activities and executive duties. I believe that I have earned my well-deserved rest.”

Boat Show 2014 to take centre stage in October

Daily News - 06/10/2014
By Indunil Hewage

South Asia’s premier boat show and fisheries exhibition, ‘Boat Show 2014’ organized by Boat Building Technology Improvement Institute (BTI), Sri Lanka Export Development Board and Lanka Exhibition and Conference Services will take centre stage from October 10-12, 2014 at the Dickowita Fisheries Harbour under the theme ‘Promotion of Leisure Boating in Sri Lanka’

The main objective of the event is to attract buyers from all corners of the globe, while positioning Sri Lanka as the hub for the industry in South Asia and to develop a forum between buyers and sellers to facilitate industry growth.

The exhibition has been designed to provide an even larger and more diverse show for enthusiasts and industry professionals from India, Pakistan, Maldives, Bangladesh, Singapore, South Korea,China, Germany, Netherlands, UK and USA. The event will see the participation of over 30 delegates and boating and marina business specialists who will share knowledge and expertise.

The main feature of this year’s event will be the meeting of the International Marina Group of the ICOMIA, concentrating on the promotion of marina development and the development of leisure boating tourism.

Specific sections on exhibition will include segments for boat builders, life rafts, fishing boats and equipment, water sports equipment and accessories, outboard engine parts and services and boat interiors. The total exhibition will cover over 44 wide facets of the industry in terms of both industrial and recreational fishery as well as boating and leisure.

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.”