Over US$ 1b gems to China by 2016

Daily News - 05/12/2014

Sri Lanka could bridge the trade imbalance with China to a greater extent and also increase the US$ one billion overall export target in 2016, if the local gem/precious stone exports were encouraged and developed. At present there is a huge trade gap in favor of China, Director Marketing and Export -National Gem and Jewellery Authority, Rohan Perera said.

"We are now looking at increasing gem export to China being the biggest buyer in the recent past. Since, China being a prosperous country in the world the demand for super luxury items like gems has increased considerably," Perera told the Daily News Business.

As far as Sri Lanka exports are concerned, China is the 18th largest export market for Sri Lanka with exports of US$ 121 million in 2013, one percent of total exports of Sri Lanka against the import of US$ 3 billion worth of goods to Sri Lanka

This shows that there is huge un-favorable trade balance between the two countries.

The positive list of products may include large number of products in the proposed FTA, but the issue is whether Sri Lanka could supply all the products.

Perera said that with the signing of the Free Trade Agreement (FTA) many Chinese buyers will tend to buy gemstones especially blue sapphire.

Therefore, we could bridge the trade gap and also increase gem exports to US$ one billion by 2016, he said.

The government has very good ambitious schemes to increase gem export. he added.

Director Marketing and Export authority being the regulator developer and promoter of the sector have launched may projects to promote the sector by encouraging new players to achieve set targets.

Further, they also encourage all gem exporters to participate in international trade fairs and exhibitions, he said.

China could supply any volume of its products. Out of the 30 products exported to China, five products, apparel, tea fibre, tobacco and rubber cover nearly 75 percent of exports to China.

20 IT SMEs in EDB’s first Jaffna Export Forum today

Daily FT - 05/12/2014

• ‘30 more would be entrepreneurs too’: SLAASCOM’s Sekaram
• ‘$ 5B IT exports by 2020’: EDB’s Egodage
• ‘Cloud tech helping regional IT’: SLAASCOM’s Sekaram2103 IT exports at $ 719 m

Sri Lanka’s apex export facilitator EDB’s first IT event in Jaffna has been boosted by an influx of Jaffna based operators and would be ICT entrepreneurs on 4 December and the event also packs in-depth industry presentations from no less than seven top Lankan IT firms.

“Almost 20 SME IT operators in Jaffna region have registered for 5 December’s IT/BPM Export Forum in Jaffna. Another 30 prospective IT entrepreneurs from Jaffna who are looking to set-up, too have joined making it a total of 50 players,” said SLASSCOM Vice Chairman Mano Sekaram on 4 December in Colombo.

Sekaram was discussing in Colombo on the progress of first ever IT/BPM Export Forum and Entrepreneurship Workshop to be held in Jaffna on 5 December at Jaffna’s Tilko City Hotel. Held on the theme of ‘Accelerating IT Exports and Fostering Entrepreneurship’, the one day, one-of-a-kind session is scheduled for presentations from seven Lankan IT leaders – Ruwindhu Peiris (Managing Director of Stax Inc), Dr. Sanjiva Weerawarana (Founder, Chairman and CEO of WSO2), Mangala Karunaratne (Founder and CEO of Calcey), Dr. Harsha Subasinghe (CEO & Chief System Architect of CodeGen), Dr. Arul Sivagananathan (Managing Director Hayleys Industrial Solutions and Hayleys BPO), Mano Sekeram (Co-Founder and CEO of 99X Technology) and Madu Ratnayake (Head of Digital, SVP & General Manager at Virtusa) – as well as top two public sector agencies (presentations by Saman Maldeni-Director–Export Services of EDB, Reshan Dewapura (CEO of ICTA) and Fayaz Hudah (Program Head of ICT Agency of Sri Lanka (ICTA).

“Almost 20 SME IT operators in Jaffna region have registered for 5 December’s IT/BPM Export Forum in Jaffna. Another 30 prospective IT entrepreneurs from Jaffna who are looking to set-up, too have joined making it a total of 50 players,” said Sekaram, and added: “What is important is that not only we already have 50 registrants, but they are SME operators in both hardware and software with entrepreneurial side. The old way of doing IT exports is that being a domestic producer in Colombo, you enter the export market but with the cloud powered technologies and overall online connectivity across the country, its different today.”

The IT/BPM Export Forum runs in parallel to ‘Jaffna IT Week’, that began on 3 December and ends on 6 December in Jaffna. The event comprises of Future Careers Program (on 3, 4 December at the Vembadi Girls’ High School), the 5 December’s IT/BPM Export Forum and Jaffna IT Conference (at the Kailasapathy Auditorium of University of Jaffna on 6 December). The Export Development Board (EDB) is partnering SLASSCOM in this initiative with Information and Communications Technology Agency of Sri Lanka (ICTA), the Ministry of Education, the University of Jaffna and the Yarl IT Hub.

EDB Chairman and CEO Bandula Egodage said: “SLAASCOM, ICTA, EDB and all the IT/BPM firms are setting up a new milestone. EDB is a facilitator in this event. The Government is focusing on IT/BPM sector since it is the future. When it comes to non-traditional exports development, IT plays a major role. Huge improvements are seen and also needed for us to achieve $ 5 billion IT/BPM exports by 2020. In 2013, IT exports stood at $ 719 million. Currently IT is concentrated in Colombo but the way forward is taking them to regions starting with Tier 2 cities. Jaffna is the third city after focusing on Kandy and Galle.  When it comes to EDB, we have conducted IT related events, conferences, trade exhibitions, both locally and foreign. We also conducted export coaching programmes for IT.”

New dimension in Lankan fashion and apparel to debut at SLDF 2014

Daily FT - 02/12/2014

Sri Lanka Design Festival’s 2014 fashion edition is taking shape with a preview into Sri Lanka’s brand-led future in fashion. Taking a giant step forward from the country’s longstanding reputation as a sustainable and technologically advanced manufacturing destination, Sri Lanka is about to forge its reputation as a fashion industry with its own brands. Sri Lanka Design Festival is the platform for this major step for Sri Lanka, and its sixth successful fashion edition is scheduled to unfold this week.

Big brands and bigger names; fashion and apparel celebrities at SLDF

SLDF 2014 will bring down a number of apparel big names and leaders in fashion to witness Sri Lanka’s fashion evolution. The dynamic duo Martin Raymond and Chris Sanderson from The Future Laboratory revolutionary trend forecasting, research and brand innovation consultancy who have presented thought-provoking ideas in UK, US, Germany, Australia, Denmark and have an impressive clientele including  Louis Vuitton, M&S, Microsoft and BMW etc. will be speaking at SLDF.
Other influential personalities visiting Sri Lanka for the festival include Kurt Cavano – the founder and chief strategy officer of GT Nexus – featured among World Trade Magazines world’s 50 most influential business people and a seasoned veteran on technology and innovation related to fashion.
Among the renowned personalities speaking at SLDF is Peter Ingwersen – the former LEVIS director for Europe. Peter is highly passionate about Sri Lankan fashion and the immense potential it holds to deliver something unique to the world. His several decades’ worth experience on building global brands is now to be shared in Sri Lanka. Hailing from a fashion supply chain background, Giles Watkins – Coats Commercial Director of Global Services is also attending the forum to share his expertise on building brands in foreign landscapes.
Former editor of Elle India Nonita Kalra who is an expert on Indian fashion markets and consumers is also among the elite fashion names visiting SLDF this year. Another distinguished personality for SLDF 2014 includes Jane Rapley OBE who has become an icon in British design and was honoured with Queen’s Order of the British Empire, for leading the team that launched the careers of some of the most legendary names in design, including Alexander McQueen, Stella McCartney and Matthew Williamson. Other delegates include seasoned fashion educator and designer Jane Gottelier, experienced colour theorist Janet Best and British designer/educationalist Patrick Gottelier.
Among Sri Lankan apparel big names participating in SLDF this year as speakers is CEO of Brandix Lanka Ltd. Ashroff Omar and Chairman of MAS Holdings, Deshamanya Mahesh Amalean. The festival is due to see other local fashion brand leaders such as Ajay Amalean – Managing Director of amanté/Director of MAS holdings as well as Arshad Sattar – Director of Avirate/Timex Garments.


Fastest ticket to a brand-led future; South Asian Apparel Leadership Forum
With over 100 professionals in apparel manufacturing, supply chain services, ethical fashion, retail brands, media and opinion leaders the fifth annual South Asian Apparel Leadership Forum (SAALF) will be held this December as part of Sri Lanka Design Festival. This forum aims to bring together the most cutting-edge international knowledge on building brands. With expert insights into global consumer behaviour patterns, technology, the pros and the cons for Sri Lanka as well as first-hand experiences in building brands at home and abroad from those who have truly walked the talk.
Whether you are an apparel industry professional, a designer launching own brand or an entrepreneur looking to take a local business to the global forefront, South Asian Apparel Leadership Forum is your fastest ticket to some world-class knowledge on the topic. The forum is scheduled to take place at SLECC, 6 December 9 a.m. to 1 p.m.
‘Fashion Innovation Runway’ featuring the best of local apparel industry and a preview into Sri Lanka apparel’s brand led future
With a special showcase of the success stories of using ‘design’ as the value addition for apparel manufacturing industry, this fashion show brings together the creative talent of the design studios in Brandix, MAS Holdings, Orient Design, Orit apparel, Star Garments etc. with supply chain experts like Coats, Rainwear and Colourzone. A number of unique brands such as RedCocoon, Kiito, Prabath, Aqua Island, Nithya, Lonali, RumPunch, LICC, Aviraté and Tarja along with the international brand George will be part of this extravagant show which promises to be a fantastic display of fashion made in Sri Lanka.

Networking and speed dating at SLDF 2014 
As a marked event in the global apparel calendar, Sri Lanka Design Festival is attended by a large number of retailers, sourcing specialists and brands keen to establish links with Sri Lankan apparel and fashion businesses. SLDF’s many pre-fashion show cocktails, and fringe events provide many informal networking opportunities, making the festival a hotspot for making business matches between retailers, brands and fashion manufacturers.
For tickets and more information, call SLDF Secretariat on 0115867772/3, visit them at 29, Lauries Road Colombo 4 or log on to www.srilankadesignfestival.com.
Sri Lanka Design Festival 2014 will be held between 5th to 7th December at SLECC, Colombo with the Ministry of Economic Development, Export Development Board, Sri Lanka Tourism and Sri Lanka Apparel as Key Stakeholders. Brandix Lanka Limited and MAS Holdings are the Official fashion industry patrons while other supporters include Coats Thread Lanka – Official Thread & Zip Partners, GT Nexus – Official Technology Partner, Daily FT/Daily Mirror/Sunday Times – Official Print Media, MTV/MBC – Official Electronic Media, Mount Lavinia – Official Venue Partner, Triad – Official Communications Partner and Cheryl Gooneratne Hair & Beauty Academy – Official Hair & Makeup, Sunshine Travels – Official Travel Partner and Pico – Official Exhibitor Logistics Partner.

Vietnam calls for FTA

Daily FT - 02/12/2014

• ‘Appointing Lanka’s first trade official to Vietnam’ – Rishad
• ‘Bilateral trade should not be just rice and tea’ – Kieu Thu
• YoY bilateral trade surges by 88%
• ‘Time to explore joint apparel synergies too’ – Kieu Thu

Stepping up its trade cooperation with Sri Lanka, Vietnam said that it was working towards establishing a groundbreaking FTA with Sri Lanka.

In view of this, Sri Lanka has promptly appointed its first-ever trade officer to Vietnam, the world’s fifth largest apparel exporter which is ready to partner with Sri Lanka’s own apparel industry.

“There is huge unrealised trade potential between both countries that we need to explore. Trade need not be mostly the exchange of rice and tea between both countries. Therefore, while in Colombo, I will take up the task of promoting an FTA with Sri Lanka,” said Vietnam’s new ambassador to Sri Lanka, Phan Kieu Thu on 27 November in Colombo.

Ambassador Thu was speaking to Industry and Commerce Minister Rishad Bathiudeen during her maiden courtesy call on the minister at EDB.

Joining Minister Bathiudeen in the discussions were officials from the Department of Commerce and EDB Chairman and CEO Bandula Egodage.

“The former Vietnam Ambassador in Colombo Ton Sinh Thanh has done a good job in Colombo promoting bilateral trade right until the last minute of his departure. He was also instrumental in promoting bilateral investments,” said Minister Bathiudeen said.

“As per the export vision of President Mahinda Rajapaksa, we are targeting $ 20 b in exports by 2020 and free trade agreements with our partners could help us in this effort. The Department of Commerce has increased its efforts to boost bilateral trade. I am pleased with the establishment of our successful first-ever Lanka-Vietnam official trade mechanism in August. This Joint Trade Subcommittee has enhanced existing bilateral trade and economic relations to new heights. I am pleased to inform Your Excellency of the appointment of the first Lankan Trade (Promotion) Officer to Vietnam by the Department of Commerce and this officer is expected to start in January 2015. Next year we are also planning to send a strong Lankan business B2B delegation to Vietnam, based on a Vietnamese invitation to do so during my August visit.”
In reply Thu said: “We are working on receiving the Lankan B2B delegation in Vietnam next year. Expansion of your exports to Vietnam will give a wider choice of Lankan goods to our consumers and an FTA is a great instrument.”

At present Vietnam ranks 40th as an export destination and 23rd among suppliers to Sri Lanka, accounting for 0.43% of total Lankan exports and 1.06% of total imports respectively. Total trade between both countries – which stood at $ 119.5 m in 2012 – increased to $ 224.4 m in 2013, registering a remarkable growth of 88%.

Bangladesh, Sri Lanka near to historic trade pact

As both Bangladesh and Sri Lanka moved closer to their historic trade pact, the process took a new turn as a keen Bangladeshi private sector itself stepping in to accelerate it on 27 November, a rare development in an on-going Lankan trade negotiations-and bilateral trade between both countries has jumped by a strong 67%.

“I will meet our Commerce Minister who is very well meaning and serious, and inform him to expedite the FTA process” said Mahbubur Rahman (President, International Chamber of Commerce of Bangladesh ICCB) on Thursday (27) in Colombo. ICCB President Rahman was addressing Rishad Bathiudeen.

Minister of Industry and Commerce of Sri Lanka on 27 November during his courtesy call on Minister Bathiudeen at EDB, Colombo. Considered as a pioneer of Bangladeshi private sector, ICCB President Rahman, who started his business activities in 1960s, was the founder of the diversified group ETBL Holdings Ltd, and also Eastern Trading (Bangladesh), ETBL Development Construction, ETBL Securities & Exchanges Ltd., Progressive Investments (successors to the National Rubber Industries), and Century Cold Storage Ltd. He was also the leading sponsor of Bangladesh’ Eastland Insurance Co, International Publications (Publisher of the Daily Financial Express), National Bank Ltd and National Housing Finance & Investments Ltd. Also present at the session were Bandula Egodage (Chairman and CEO-EDB) and Ataur Rahman (Secretary General, ICCB).

“I am also pleased to say that many Lankan investments in Dhaka are doing very well. For example, the Commercial Bank of Sri Lanka is doing so well there that even our businesses seek its assistance always”,said ICCB President Rahman, According to the Department of Commerce of Sri Lanka, Bangladesh is the 25th export destination of Sri Lanka in 2013. Bilateral trade between both countries jumped by a strong 67% in 2013 to $ 139.23 Mn (from 2012’s $ 83.19 Mn).

Responding to ICCB President Rahman, Minister Bathiudeen said: “We welcome your intervention and this will greatly boost bilateral efforts. In fact, we too agree that it is the private sector at both sides that would finally drive trade. I am pleased to inform you that the Department of Commerce under me has already completed the Trade agreement study report on our side and both parties have now exchanged their respective reports. 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 the committed HE the 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 great unrealised trade potentials and a trade agreement will be the way forward towards bigger bilateral volumes.”

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 ‘for a while’. 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.

How to develop Sri Lanka’s wood-based industry

Daily Mirror - 24/11/2014

A conference and workshop under the theme “Wood Based Industry – Way Forward’ organized by the Wood Based Industrialist Association of Sri Lanka (WBIA), will be held at the Export Development Board (EDB) Auditoriumon on November 28.

Channa Wijesekera, President of the Wood Based Industrialist Association of Sri Lanka, is expected to outline the problems facing the wood based industry in this article. He explains why this important industry has not developed over the years and proposes a series of solutions to remedy the situation.
When analyzing the development of t he various industries in Sri Lanka, the timber and ti mber related industry indicates a comparative downward trend or slow progress in comparison with the other industries.

The Table shows information provided by the Export Development Board indicates the total export value of wood and wood based products in US Dollars.

In a cautious investigation, the following main causes can be identified.

INADEQUATE KNOWLEDGE AND AWARENES ABOUT DRYING AND PRESERVING TIMBER
Many medium and small scale wood industrialists use un-dried and untreated timber to manufacture their products due to lack of knowledge about the subject. This process directly effects negative impact on the quality of the products, in particular, furniture with wide surfaces such as Almairahs, Tables and Wardrobes etc.

These products tend to warp, expand discolor or disfigure and mostly become unusable. Therefore, a national programme on publications on methods of treatment of timber and kiln drying etc. and educating the trainers of Government and private vocational training schools is required urgently. Another virtually important action is to introduce Carpentry into new GCE Advanced Level Examination under Technical Education segment and train teachers on the subject.

UNAVAILABILITY OF EASY AND SUFFICIENT QUANTITIES OF DRIED AND TREATED TIMBER IN THE MARKET
This is a disappointment to the Wood i ndustrialists who have identified the significance of this process. When an order for furniture is obtained, the industrialist has t o purchase logs, obtain transport permits, transport the logs to Saw Millers, re-transport the sawn timber planks for treatment/drying and transport the dried/preserved timber planks back to his work shop after obtaining another permit. This process takes a month or more which results delays of delivery of the order to the customer.
Following are the suggestions which are to be implemented immediately to overcome above.
Step 1  - Provide Government assistance to Industrialists with chemical treatment plants and kilns and formulate a programme to encourage them.
Step 2  - Introduce Laws to transport all treated and dried timber released by these entities island wide on the Invoice issued by them. When implemented, the above will immensely benefit small and medium scale wood industrialists and self-employed carpenters.
On the other hand, this will enormously help a person to acquire long lasting wood products such as doors, windows, frames from properly dried and adequately treated timber. In addition, such person will save unwanted time spent for observing sawing, preservation, drying and obtaining permits and transporting etc.

INSUFFICIENT USAGE OF MODERN MACHINERY AND LACK OF KNOWLEDGE ABOUT TECHNICAL OPERATION OF MACHINES
In rural areas, manual tools are being used as yet for complex carpentry related work. This reduces the speed, capacity and quality of production making them uncompetitive in the market.

The Government and private vocational training Institutes should be encouraged to introduce training modules such as wood machine operations, finishing processors of furniture, etc. These training programmes and the training institutes should be registered under TVEC. Trainees who successfully complete this training programme to be registered and directed to Sri Lankan Industry and foreign job agencies. When Sri Lankan Industry and foreign job agencies want to test skills and knowledge of applicants, it can be done by these registered private and government training institutes. In my personal opinion, attitudes of the wood technicians who returned after foreign exposure are more positive and their improved technical knowhow can be used to the betterment of the industry.

ABSENCE OF CAREER GUIDANCE PROGRAMMES ON TIMBER RELATED INDUSTRIES FOR SCHOOL LEAVERS
As a preliminary step, Education Ministry, Higher Education Ministry, Ministry of Vocational Skills Training and Ministry of Industries can jointly organize special Seminars/ workshops for school leavers on wood technology and publish career guidance books for the students with the assistance of the wood industrialists. It is important to highlight the success stories of entrepreneurs who have climbed up the ladder. It is virtually important to expose the students to the operations of medium and large scale industries as most of the students have seen only small carpentry shops. This act would inspire them tremendously to join wood related trades. In addition, the foreign employment agencies can test their prospective candidates’ skills through these government and private institutions.

LIMITATIONS OF THE DESIGNING METHODS OF FURNITURE AND OTHER WOODEN PRODUCTS
Government and private training institutions should be encouraged to introduce professional courses on furniture designing. It is important to try to obtain aid from Japan, America, and Germany etc. for these programmes.

SCARCITY OF BOOKS WRITTEN IN SINHALA AND TAMIL LANGUAGES ON CARPENTRY.
Books published on wood technology in indigenous languages are almost nonexistent in Sri Lanka. This is a big hindrance to the development and progress of the industry. Therefore the books should be published on following topics which should include workshop drawings, supportive sketches, photos, etc. The subject matter of the books to be published are “Wood Technology”, “Drawings for Wood Work”, “Wood Work Practicals”, “Operation of Wood Processing Machines”, “Mathematics for Wood Training”, etc.

UNAVAILABILITY OF PROFESSIONAL QUALIFICATIONS IN THE INDUSTRY, REVISION OF CURRICULUMS AND PUBLICATION OF TEACHER STUDENT GUIDES
Currently, TVEC has introduced classifications and training standards under NVQ qualification system. It is extremely important to re-discuss the modules with Wood industrialists for re-design them and publish teacher training instruction books. In the absence of proper guidelines, results of practical tests differ according to knowledge, skills and attitudes of the examiner. As a result, the skill level of the same NVQ certificate will vary and standard of the certification may lose its credibility. This should be considered as a major issue and these testing methods to be revised in collaboration with industrialists.

EXCESS IMPORTS OF WOODEN AND WOOD BASED FURNITURE
Government has taken a reasonable step by announcing that heavy taxes will be levied from furniture imports in 2014 budget. Further, Government has instructed Developers working in BOI projects to purchase local furniture and related products from local manufacturers. We consider this as a step forward and we would like to pay our gratitude to the government for making this proposal.

PROVIDING MORE TAX CONCESSIONS FOR RAW MATERIAL, PAINTS AND FITTINGS USED IN THE WOOD SECTOR
It is virtually essential to offer further tax concessions for raw material and fittings and paints. As examples, items such as sand papers used for finishing work, thinner & various types of paints and accessories such as hinges should be considered for tax concessions.

Russia shows green light on fish import from SL

Daily Mirror - 26/11/2014

Russia has granted approval to import fish and fish products to the Russian Federation from Sri Lanka, 2014, the External Affairs Ministry said.

The Ministry said the Federal Service of Veterinary Surveillance under the Ministry of Agriculture of the Russian Federation granted approval to import fish and fish products to the Russian Federation as a result of the untiring efforts of the Sri Lankan Government through its Embassy in Russia.


Initially, 14 Sri Lankan fish exporting companies who had sought to export their products to the Russian Federation have been included in the register of enterprises and individuals allowed to export into the territory of the Russian Federation and would benefit from this approval, it said.

According to the Ministry, these companies would also have the added advantage of exporting their products to the Republic of Belarus and the Republic of Kazakhstan since these countries have established a Customs Union with the Russian Federation, whereby a product imported to one country can also be imported to the 2 other countries without payment of Customs duties.

The 14 Sri Lankan companies which would be able to supply fish and fish products in the categories of Fresh or Chilled Fish, Frozen Fish, Fish Fillets and Other Fish Meat, and Dried or Salted Fish.

According to statistics of the Russian Federal Customs Service, in 2013 Russia imported 443,014 tons of fish and fish products of these categories to the value of US$ 1581 million while it imported 484,000 tons of fish and similar products falling under this category to the value of US$ 1422 million.