EDB secures links with world’s largest textile retailer ZARA

Daily News - 26/11/2014

For the first time in Sri Lanka’s apparel history, the Export Development Board has directly linked top Lankan apparel suppliers with the world’s largest textile retailer, Spain’s ZARA and is stepping up its support for apparel market diversification.

“Though the Lankan apparel sector caters to many international brands, we have still not been able to manufacture to Zara brand, the world largest fashion retailer.

This successful effort directly linked our apparels to Zara for the first time,” said Chitranjali Dissanayake (Director-Industrial Products of SLEDB).

Dissanayake was reporting on the success of first ever Lankan apparel industry delegation to Spain’s Inditex, recently. Inditex ranks as the world’s largest textile retailer by sales, and is present in 87 countries.
It owns such international retail brands as Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home and Uterqe.

“Inditex is commonly known by its oldest and biggest brand, Zara. Though Lankan apparel sector caters to many international brands such as Victoria’s Secret, Gap, Nike, Tommy Hilfiger, Marks & Spencer we have still not been able to manufacture to Zara brand, the world largest fashion retailer” said EDB Director Dissanayake, and added: “As a result of the Lankan industry leaders showing a keen interest to develop business contacts with Spain’s Inditex and to manufacture apparel in Sri Lanka for its ZARA Brand, the EDB promptly initiated a dialogue with Spain’s Inditex Inditex for an initial meeting with a Lankan delegation to present the country’s capabilities and invite Inditex SA to source from Sri Lanka.

EDB in global apparel breakthrough

Daily FT - 26/11/2014

• Secures links with world’s largest textile retailer ZARA
• 6-member EDB-led delegation to Spain 
• Brandix, Timex, Fergasam in pioneering session 
• September apparel exports up by 4.4%

For the first time in Sri Lanka’s apparel history, the EDB, Sri Lanka’s apex export facilitator, has directly linked top Lankan apparel suppliers with the world’s largest textile retailer, Spain’s ZARA on 29 October.
The facilitator, the Sri Lanka Export Development Board (EDB), is stepping up its support for apparel market diversification.

“Though the Lankan apparel sector caters to many international brands, such as Victoria’s Secret, Gap, Nike, Tommy Hilfiger and Marks & Spencer, we still haven’t been able to manufacture for the Zara brand, the world’s largest fashion retailer. This successful effort directly linked our apparels to Zara for the first time,” said EDB Director – Industrial Products Chitranjali Dissanayake recently.

Dissanayake was reporting on the success of the first-ever Lankan apparel industry delegation to Spain’s Inditex on 29 October. Inditex ranks as the world’s largest textile retailer by sales, is present in 87 countries, and owns international retail brands such as Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home and Uterqüe.

Inditex’s consolidated sales in 2013 totaled over $ 20 b, recording an impressive growth of 6% over 2012. The Group’s brands strive to sell fashionable products (fast fashion) with high quality. Inditex describes its business model as “creativity and quality design together with a rapid response to market demands”.

“Inditex is commonly known by its oldest and biggest brand, Zara. As a result of the Lankan industry leaders showing a keen interest to develop business contacts with Spain’s Inditex and to manufacture apparel in Sri Lanka for its Zara brand, the EDB promptly initiated a dialogue with Spain’s Inditex for an initial meeting with a Lankan delegation to present the country’s capabilities and invite Inditex SA to source from Sri Lanka. EDB succeeded in getting the meeting, resulting in a good session with Jesus Echevarria Hernandez, General Director of Communication for Inditex SA, at their headquarters in Spain. Under the guidance of Minister of industry and Commerce Rishad Bathiudeen and support of EDB Chairman and CEO Bandula Egodage, the EDB is stepping up support for the apparel market diversification efforts of Lankan sector.”
Apparels became the leading growth driver in September’s exports (followed by coconut and food, beverages and tobacco). September apparel exports grew by 4.4% to $ 403.8 m in September compared to the same period last year.

The pioneering 29 October Lankan delegation to Zara consisted of reps from Brandix Lanka, Timex & Fergasam Garments, Union Apparel and EDB officials. The six-member delegation, facilitated by EDB, Sri Lanka’s apex exports body, has held several one-to-one meetings with heads of sourcing teams of different Inditex product groups to explore manufacturing for Zara brand.

During the visit, the delegation was provided a Zara company presentation and a meeting with Hernandez, followed by a guided tour to their cutting and finishing processes and logistics departments located in corporate headquarters as well as headquarters of Zara and Zara Home, two Inditex brands. A detailed presentation on Sri Lanka’s capabilities on the apparel industry was made by the Sri Lanka delegation which was followed by a discussion.

The Sri Lankan apparel industry is readying to generate $ 5 b in export earnings by 2016 and the Government’s aim is to position Sri Lanka among the top 10 high quality apparel manufacturing countries in the world by 2020. Sri Lanka is gearing to position itself as a commercial hub and the apparel sector is keen on getting into supply chain management as well.

Kenya-Sri Lanka Joint Economic Cooperation talks a success

Daily FT - 18/11/2014

Kenya, the newest entrant to Africa’s top 10 list, called for renewed trade with Sri Lanka and in a display of its commitment towards this end requested three trade pacts with Sri Lanka in one go by 2015.

“We are looking forward to more trade interaction and expecting a delegation to Nairobi from Sri Lanka next year. By the time of your visit to Nairobi we are looking forward to conclude current discussions on three agreements being discussed and to sign them,” said Amb. Nelson Ndirangu Ogn (Director, Economic Affairs and International Trade of Kenyan Ministry of Foreign Affairs, Nairobi) on 12 November in Colombo.

Ogn was addressing Minister of Industry and Commerce Rishad Bathiudeen and top officials during his delegation’s courtesy call on Bathiudeen at the EDB. Ogn was in Colombo leading a nine-member trade delegation to Sri Lanka. The Kenyan team successfully concluded its Joint Economic Cooperation (JEC) session with Bathiudeen’s official delegation on 11 November.

Noting that Kenya is aiming to become a middle income country by 2030, Ogn expressed hope that the agreements – a Bilateral Trade Agreement, an agreement on Avoidance of Double Taxation and an agreement on Promotion and Protection of Bilateral Investments – would be formalised during Sri Lanka’s visit there.

“Once we formalise these three instruments at government to government level, the private sectors at both ends can commence their own trade. Even on agriculture cooperation, a draft agreement is now being finalised. Our Minister of Agriculture, Livestock and Fisheries will be coming to Sri Lanka to sign it once it is ready. All these bilateral agreements are for stronger trade between both countries. We also need to have ongoing B2B interactions and forge chamber level interactions.  President Mahinda Rajapaksa visited the Nairobi Chamber of Commerce last year and as a result the two chambers entered into a MoU which strengthened bilateral trade. We also saw your Chamber of Commerce in this visit and are impressed by your chamber, which was established way back in 1839. It is now time to expand business-to-business links between the two countries in a significant way.”

In 2013, trade between both countries stood at $13.94 m, rising from 2012’s $12.78 m.  Among Sri Lanka’s exports to Kenya in 2013 were natural rubber, tyres, sacks and bags, staple fibre, tea, rice, coconut coir and activated carbon. Trade in January-June 2014 totalled $ 5.86 m.

Kenya discovered oil and gas in 2012 and is now the ninth largest economy in Africa. In its Global Competitiveness Report 2014-’15, the World Economic Forum listed Kenya as the sixth best among the top 10 economic performers of Africa.

“I have been given to understand that 11 November’s Joint Commission (JEC) Session discussions were successful and I am pleased,” said Bathiudeen. “The JEC also helped to link our fruits and vegetables, construction, ceramics and leather sectors to Kenyan economy. We especially note your keen interest in our leather processing. We thank you for your invitation to us to Kenya’s Tea Expo in 2015. If you inform the EDB of the important events in your trade calendar in advance, we would be able to facilitate even greater B2B interactions. I am pleased about the Kenya Export Promotion Council’s interest to enter into a MoU with the EDB so that export and trade is facilitated starting from a higher level. Such a MoU can also facilitate joint trade delegations.”

Ogn and Bathiudeen also discussed other avenues of bilateral cooperation yesterday (17).
Also taking part were Ministry of Industry and Commerce Secretary Anura Siriwardene, EDB Chairman/CEO Bandula Egodage, EDB DG Sujatha Weerakoone and DoC DG R.D.S. Kumararatne.

Canada for more trade with SL

Daily FT - 19/11/2014

• Canada has 24 FTAs including NAFTA: Whiting 
• Another opening to largest market: Rishad 
• EDB revives TRO-Canada links
• Top Lankan exporters at Canada session
• Bilateral trade at $ 437 m

Minister of Industry and Commerce Rishad Bathiudeen (second from left) in discussion with EDB Chairman/CEO Bandula Egodage yesterday as Canadian High Commissioner in Sri Lanka Shelley Whiting (far right) and Canada Asia-Trade Facilitation Office Project Manager Zaki Munshi (far left) look on

As part of its new internationalisation thrust, the second largest economy in North America directly called for a fresh trade round with Sri Lanka yesterday, recording success for Sri Lanka with yet another NAFTA member.

More than 100 Lankan firms of all sizes packed EDB’s pioneering ‘Exporting to Canada’ session in Colombo.

“I see great potential and synergy here today to do business with Canadian businesses and the Canadian import market. We are in a continuous process of internationalising, especially targeting emerging markets,” said Canadian High Commissioner in Sri Lanka Shelley Whiting yesterday in Colombo.

Whiting was addressing the pioneering EDB session ‘Exporting to Canada’ held at the EDB, which was attended by over 200 eager reps from 100 Lankan firms of all sizes.

Also joining the session were Minister of Industry and Commerce Rishad Bathiudeen, EDB Chairman/CEO Bandula Egodage, Canada Asia-Trade Facilitation Office Project Manager Zaki Munshi, EDB DG Sujatha Weerakoone, EDB ED Dr. Yousuf Maraikkar, Bangalore Senior Canadian Trade Officer Stanley Gomes and officials from Sri Lankan Consulate, Toronto.

“Our aim is to build ties and extend businesses between both countries. The presence of TFO Canada in Colombo today speaks of the enormous economic progress underway in Sri Lanka right now and Sri Lanka’s potential as a trade partner for Canadian Companies. 54% of Lankan imports Canada are apparel. Canada has established an important share in Sri Lanka’s market for wheat and other agricultural commodities; 83% of Canadian merchandise exports to Sri Lanka in 2013 consisted of wheat and lentils,” said Whiting.

She added: “Canada and Sri Lanka share a broad-based bilateral relationship, with long history of development assistance to Sri Lanka beginning with Colombo Plan and continuing through today where Canadian technical assistance is focused on building sustainable economic growth. All the locomotives that arrived under the Plan 60 years ago are still functioning today! I think these Canadian workhorses are in many ways are symbolic of Canada’s trade relationship – longstanding, reliable, quality products, somewhat small-scale, but in for the long haul.

“We have a growing and significant presence in Sri Lanka’s education, agriculture, IT, energy, and infrastructure. Just as Sri Lanka engages in a large export volume to India, our main partner is also in our neighbourhood – in our case, the US. However, as various people have acknowledged, we are not defined by that trading relationship alone. Just this September, the Canadian Government celebrated its most successful month for trading and investment in Canadian history. Like Sri Lanka, Canada too has entered into several Trade Agreements including with the EU, Korea, etc. Starting from the North America Free Trade Agreement (NAFTA), Canada has signed nearly 24 FTAs with the world. We also have seen a fivefold increase in Canada-India trade in the recent years.”

Sri Lanka’s bilateral trade with Canada has shown a continuously growing trend in the last few years. The $ 346 m total in 2009 surged by 26.23% to cross $437 m in 2013.

Bathiudeen, addressing the event, said: “With the support of our committed exporters, President Mahinda Rajapaksa has set a goal of $ 20 billion exports by 2020. As we aim for this goal, not only diversification, but even deeper access to existing markets has become important. Canada is in fact a promising destination in this regard. Last year our bilateral trade with Canada stood at $ 437 m. Firstly, Canada’s consumer market is about 2.25% of the world’s total consumer market. The neighbouring US market, which is also the largest market in the world, has 28% of the world’s total consumer market. Therefore the Canadian market which is located just next to our biggest global marketplace not only offers its own opportunities for Lankan exporters, but even new openings to the US market as well.

“It is clear that $ 437 m trade with the Canada market also shows great unrealised potential that we can begin to explore. Today’s session with the valuable support of the Trade Facilitation Office of Canada (TFO Canada), and Sri Lankan Consulate in Toronto could help our committed exporters explore this promising North American market with added strength. I have no doubts that in time to come, with the support of TFO Canada, our EDB will be able to open new doors in Canada for our keen exporters. Therefore, on behalf of the people of Sri Lanka, I extend our warmest appreciation to the people of Canada today for this and many other support initiatives.”

Among the 106 Lankan private sector giants at yesterday’s session were A. Baur, Hayleys Exports, Eswaran Brothers, Ceylon Biscuits, Ramya Horticulture, Akbar Bros, Barbara Sansoni, Dankotuwa Porcelain, Samson Rubber and Anverally.

Jaffna Int’l Trade Fair during Jan 23-25, 2015

Daily News - 19/11/2014

The Jaffna International Trade Fair (JITF), the most comprehensive and ‘looked forward to’ exhibition in the North will be held for the sixth consecutive year in the heart of Jaffna from the January 23-25, 2015.

The exhibition which was the first of its kind to be held in the Northern region of the country has throughout the years been renowned as the best and most potent platform for the meeting of investors, businesses and the masses in the region.

JITF has been hailed to be the common platform under which networking and expanding of investments, business ideas, existing businesses and sharing of knowledge occurs. The North is yet to be fully penetrated by private investments and remains ‘virgin territory’, with many of the resources in the area yet to be fully utilized.

The Jaffna peninsula has among its natural riches and resources, a vibrant community filled with passionate human resources who are willing to harness and expand their potential through such meetings.

The exhibition last year drew record number of visitors with each exhibitor achieving well beyond their expected targets. The massive infrastructure development currently underway in the region has also paved way for many investment opportunities in the region which could not be afforded previously.

The regions, roads, electricity, bridges and all other core facets are currently being developed in the governments endeavor to ensure the region is on par with many of the most potent business and lifestyle destinations in the world.

K. Vignesh President of Chamber of Commerce & Industries of Yarlpanam said, “There is no event of this kind for the entire Northern region and all businesses and locals of the region look forward to this event. The exhibition is considered the best meeting point between them and the rest of the country and the world. Therefore each and every visitor to the exhibition is focused in order to harness maximum value during the three days”.

The exhibition will feature the construction industry, hospitality industry, food beverage and packing industry, Automobile industry, ICT industry, financial services, apparel, agricultural, consumer goods and many others, which will be on show during the three days.

CEO of the Presidential Award winning event organizer Lanka Exhibition and Conference Services Aasim Mukthar said that all exhibitors have throughout the years gained maximum benefits at the JITF.

“It is a historic event where the North meets the rest and is considered by everyone who participates as the best and most comprehensive destination to further their knowledge, investments and businesses. We have left no stone unturned in order to make the 2015 edition the best that the peninsula has ever witnessed and are of the belief that it will be one of a kind,” he said.

The event is supported by Consulate General of India – Jaffna, Federation of Chamber of Commerce & Industry of Sri Lanka ( FCCISL), Ceylon Institute of Builders (CIOB), Sri Lanka Convention Bureau (SLCB) and the Jaffna Municipal Council along with the endorsement of the Ministry of Traditional Industries & Small Enterprise Development & Sri Lanka Export Development Board (EDB). 

Sri Lanka's export trade sector grows 11.1%

Ceylon Today - 16/11/2014

Sri Lanka's Export Trade sector recorded a relatively a higher growth of 11.1 per cent in second quarter 2014, when compared to the slower growth of 1.2 per cent recorded in the second quarter of 2013, Department of Census and Statistics said in its Quarterly Estimates of Gross Domestic Product report released recently.

According to the Balance of Payment statistics of Central Bank of Sri Lanka, export earnings increased to Rs343,058 million in the second quarter of 2014, from Rs291,274 million in the second quarter 2013, indicating a growth of 17.8 per cent, said the Census and Statistics Department.

Compared to the second quarter of 2013, agricultural and industrial exports grew by 26.5 per cent and 15 per cent respectively. According to the Trade Indices of Central Bank, export volume index and unit value, index have increased by 11.6 per cent and 5.6 per cent respectively in second quarter 2014.
Sri Lanka will import 50,000 metric tonnes of rice from Bangladesh to ensure food security and control the escalating price of Sri Lankan's staple food.

The Sri Lankan Cabinet, according to the Colombo Page web site, has given its approval for the purchase of rice stock from Bangladesh on a government-to-government basis.
The measure has been taken in anticipation of the demand that will arise during the forthcoming Yala Harvest festive season.

The import of rice is to be carried out immediately and the stocks will be distributed through island wide supermarkets of Lanka Sathosa, the state-owned wholesale and retail grocery network at an affordable price.

Sri Lanka's rice harvest has been hit by the prolonged drought in the rice growing districts of Polonnaruwa, Hambantota, Moneragala, Ampara and Vavuniya.

The proposal to purchase this stock of rice from Bangladesh was submitted to the Cabinet by President Rajapaksa in his capacity as Minister of Finance.
Meanwhile, Sri Lanka and Mauritania signed an agreement to establish a Joint Commission on Cooperation to further strengthen relations between the two countries.

The signing took place following bilateral talks between Sri Lankan President Mahinda Rajapaksa and President of Mauritania Mohamed Ould Abdel Aziz at the President's Office.
During the meeting between the two presidents, Mauritania requested for Sri Lanka's expertise and assistance in developing a number of sectors, including mining, health, vocational training, fisheries and agriculture.

Pointing out the advancements Sri Lanka has made in all these areas, President Rajapaksa said Sri Lanka is more than happy to assist in keeping with its overall policy of enhancing relations with Africa.
"We have been taking measures to strengthen our relations in Africa," President Rajapaksa said. (Reuters)

Bangladesh announces speedier trade pact in the offing

Daily FT - 13/11/2014

• Good news, prefer an FTA: Rishad
• Talks will conclude successfully: Ashan
• YoY bilateral trade jumps by 67%

Minister of Industry and Commerce Tarik Ashan (third from left) greets Bangladeshi High Commissioner to Sri Lanka Tarik Ashan (second from left) yesterday in Colombo as Bangladeshi High Commission Colombo Counsellor and HOC F.M. Borhan Uddin (far left), Ministry of Industry and Commerce Secretary Anura Siriwardene(third from right), DoC DG R.D.S. Kumararatne (second from right) and EDB Chairman/CEO Bandula Egodage (far right) look on

As bilateral trade with Bangladesh showed a strong rise, the country has signalled that it has now started moving towards the historic trade pact with Sri Lanka, as revealed yesterday in Colombo, and Bangladesh wants the agreement to be signed fast.

“At my final meeting with Prime Minister Sheikh Hasina just before my departure to Colombo, she advised me to focus strongly on trade during my new tenure in Sri Lanka. I am pleased to inform you that the trade agreement under discussion between both countries at present will come to a successful end,” announced the newly-appointed Bangladeshi High Commissioner to Sri Lanka Tarik Ashan yesterday.


Ashan was addressing Minister of Industry and Commerce Rishad Bathiudeen and his top officials at EDB, Colombo, making his first courtesy call on Bathiudeen upon his arrival to Colombo. Ashan has been in Dhaka for the previous four years and this is the first time he has assumed overseas duties as a High Commissioner.

According to the Department of Commerce of Sri Lanka, Bangladesh is the 25th export destination of Sri Lanka in 2013. Bilateral trade between the countries jumped by a strong 67% in 2013 to $ 139.23 m (from 2012’s $ 83.19 m).

“Sri Lanka-Bangladesh bilateral trade has tripled over the last few years. Once agreed on technicalities, we need to sign the trade agreement immediately. In the meantime, in the coming days, we will start to respond to your trade suggestions made to us at the Colombo meeting on 23 September. The Government of Bangladesh wishes to appreciate Sri Lanka for its support in its international initiatives. We thank Sri Lanka for its support to Bangladesh at International Telecommunication Union ballots,” Ashan added.

On 23 September, Sri Lanka and Bangladesh successfully inked their second bilateral Joint Working Session in Colombo while also coming to a consensus on creating a prospective trade agreement between the historic partners, but stopped short of the exact nature of the trade agreement to be reached.

“We welcome your Government’s prompt response in this regard,” said Bathiudeen. “We are ready for the nature of agreement that you look forward to – whether a Preferential Trade Agreement (PTA) or a Free Trade Agreement (FTA). Whatever the form, our Government led by President Mahinda Rajapaksa would be positive on the requirements that you have. In fact we welcome a Free Trade Agreement if you so choose. Despite increase in trade, there is still a great potential for win-win outcomes and therefore it is now time to move beyond the current trade levels of $ 139 m. A trade agreement is the way forward to move towards bigger bilateral export baskets and volumes.”

Sri Lanka’s leading exports to Bangladesh in 2013 were apparel (cotton, fabrics, narrow woven fabrics and other articles of apparel) and enzymes. Leading imports from Bangladesh in 2013 were medicaments, apparel, electric accumulators, and potatoes – in fact, most of Sri Lankan exports to Bangladesh relate to the garment industry.