Lanka aiming to be a top 10 apparel exporter by 2020: Minister Rishad

Daily Finance Times - 01/04/2014

• SL starts first modern footwear and leather training centre
• 2013 apparel exports a record $ 4.3 b: Rishad
• SLITAs engineering setup upgraded with hi-tech mechatronics
• 2013 footwear and leather exports up by 63%: Rishad
• New technology from Germany, Japan and Singapore

Minister Bathiudeen at the leather and footwear industry training unit and the upgraded engineering workshop at the Sri Lanka Institute of Textile and Apparel (SLITA), Ratmalana.

In the aftermath of latest record apparel earnings, Sri Lanka is now entertaining bigger apparel dreams. “Our internationally recognised apparel sector has shown strong performance, and has earned revenues of $ 4.3 billion in 2013. President Mahinda Rajapaksa now wants us to be among the world’s top 10 apparel export countries by 2020,” said Minister of Industry and Commerce Rishad Bathiudeen on 21 March.

Minister Bathiudeen was addressing the inauguration event of the newly established Leather & Footwear Industry Training Unit and the upgraded Engineering Workshop with mechatronics at the Sri Lanka Institute of Textile and Apparel (SLITA) on 21 March in Ratmalana.

The latest SLITA facilities are constructed exclusively with Treasury funding of $ 153,000 (Rs. 20 million), and are the only such industry training centres in Sri Lanka. The Leather and Footwear Centre will train new student intakes at vocational levels on design and manufacturing. The Engineering Workshop with mechatronics is a high-tech venture, equipped with ultramodern machinery from Germany, Japan and Singapore. Automatic pattern sewing machines, electronic button hole and bar-tag machines, double needle lockstitch machines, electronic pneumatic training kits for motion and sensor trainings are some of the latest tech trainings that the students will undergo at SLITA Engineering Workshop.

In 2013, SLITA recorded highest income at $ 1.05 million, which is an increase of 44%, compared to 2012. 92% of this total income came from training, testing and consultancy services of SLITA. This institution has no less than 185 training programs with a total trainee strength of 3,430. Total training income also increased by 34% compared to 2012. SLITA’s 56-strong lecture panel of which 18 are qualified at the Masters level is yet another benchmark in the industry.

Also present on the occasion were Secretary Ministry of Industry and Commerce Anura Siriwardena and SLITA Director General D.N.S. Kuruppumullage

“Today, our Ministry’s Sri Lanka Institute of Textile and Apparel is taking a major step, in its on-going, contribution to Sri Lanka apparel sector. We are commencing a footwear and leather unit and the new, engineering building with high tech as a key event of the on-going development efforts of this institution. SLITA, operating under my Ministry caters to the industry in training, testing, consultancy and technical services. We are pleased, to say that SLITA has a world class testing lab which is internationally accredited and is certified with ISO 17025 and 9001 standards,” said Minister Bathiudeen, and added: “SLITA is only one example of our government’s efforts, to support the apparel industry. Most notably and on behalf of SLITA, I wish to thank the President for the triple deductions provided in the last budget for research and innovation carried out within apparel businesses. This has encouraged the apparel sector greatly for its, strong performance especially in 2013.  “Our internationally recognised apparel sector has earned record revenues of $ 4.3 billion in 2013. This is a historic record for us and shows that we are now moving towards the apparel target of $ 10 billion by 2016 as set by President Mahinda Rajapaksa. Our President also wants us to be among the top 10 apparel export countries of the world by 2020. In 2013 our apparel sector has also entered the G4 manufacturing levels for the first time in partnership with a global multinational, the PVH Corporation. I commend our committed apparel sector for leading our exports performance. I am also thankful to the Treasury for the assistance to upgrade our apparel training facilities.”

Speaking on Lanka’s Footwear and Leather exports, Minister Bathiudeen said: “My Ministry is also in the frontlines of footwear and leather sector development with many initiatives, the latest being this new unit at a cost of $ 153,000 (Rs. 20 million). I am pleased to say that our footwear and leather exports also have shown a record growth trend. In 2012, exports from this sector stood at $ 30 million, and has registered a remarkable 63% increase by 2013, to $ 51 million.”

Sri Lanka’s textile & garment exports soar 23.4% in Jan’14

fibre2fachion.com - 27/03/2014

The exports of textiles and garments from the island nation of Sri Lanka surged by 23.4 percent year-on-year in the first month of 2014, according to a press release on ‘External Sector Performance – January 2014’ issued by the Economics Research Department of the Central Bank of Sri Lanka.

Textiles and garments, which is the main contributor to the growth in industrial exports from Sri Lanka, grew by 23.4 percent to US$ 412 million in January 2014, compared to exports of $333.9 million made during the same month last year.

“The EU and the US continued to be the major markets for textiles and garments of Sri Lanka, representing around 85 percent of total garment exports during the month,” the press release said.

The data also shows a notable increase of 38.3 percent in exports of textiles and garments to non-traditional markets, reflecting greater diversification of markets in the industry, the statement said.

Despite the strong growth in textiles and garment exports, imported inputs into the industry declined by 4.7 percent to $193.6 million during the period under review, as against imports of $203.2 million made during the corresponding month of 2013.

“The continuing decline in imports of textiles and textile articles has been due to the usage of built up raw material stocks, backward integration and production of items at the higher end of the value chain,” the statement said.

In 2013, Sri Lanka’s earnings from textile and garment exports grew by 13 percent year-on-year to $4.508 billion, while its value of imports declined by 9.7 percent year-on-year to $2.045 billion.

Sri Lanka exports up in Jan 2014, trade gap down amid low credit growth

Lanka Business Online - 26/03/2014

Sri Lanka's exports surged 23.3 percent to 728.7 million US dollars in January 2014, and the trade gap narrowed 5.9 percent to 755.9 million US dollars amid low credit growth, official data showed.

Industrial exports rose 23.6 percent to 691.6 million US dollars with apparel also up 23.4 percent to 412.0 million US dollars, the Central Bank said.
Agricultural products grew 14.9 percent to 116.1 million US dollars, with higher prices also coming for tea. The Central Bank said the average export price of tea had risen to 5.31 US dollars per kilogram in January 2014 from 4.58 dollar a year earlier.

Rubber product exports were up 16.6 percent to 73 million US dollars. Petroleum export revenues from bunkers and aviation fuel had fallen 18.4 percent to 33 million US dollars despite a 10.6 percent rise in volume, due to falling prices.

Imports had risen 7.9 percent to 1,654 million US dollars in January from a year earlier. Intermediate goods had rise 22 percent to 1,033 million US dollars with fuel imports up 68.1 percent to US dollars 490 million in January.

Crude oil imports were up 41.2 percent, refined petroleum products were up 85.4 percent and cola by 79.4 percent.

"The increase in imports of refined petroleum products was due to greater dependence on thermal power generation as hydro power generation declined due to the prevailing adverse weather conditions," the Central Bank said.

Imports of inputs to the textile trade had fallen 4.7 percent, partly due to running down of old stocks but also due to greater domestic production of material, the Central Bank said.
Expenditure on of cement clinkers, iron and steel, palm oil, paper and paper boards had increased.

Consumer goods imports had risen 2.7 percent to 254 million US dollars with car imports up 54 percent to 46 million US dollars.

Investment goods imports had fallen 16.8 percent to 366 million US dollars, spending on machinery had fallen 21.3 percent. Building material imports were down 11 percent with aluminium and asbestos falling.

The trade deficit fell by 5.9 percent to 755.9 million US dollars.

A trade deficit is caused when people spend foreign exchange earned through sources other than merchandise exports, such as remittances or exports of labour (up 10 percent to 555.5 million US dollars), and foreign borrowings (exports of debt) and tourism services.

When credit growth is weak, not all external inflows are spent quickly, allowing liquidity to build up in money markets and the central bank to collect reserves by mopping up the rupees.

But the money can be spent later, driving imports up, if the cash is not permanently mopped up, analysts say.

In January private credit was negative. But there have been concerns over possible non productive borrowing by state energy enterprises, due to a steep increase in December, if they do not fully pass on the cost of imports of energy and run losses.

If they fully pass on import costs to their uses, any additional imports are equally squeezed from its customer base, keeping imports, the exchange rate and the economy in balance.

There were inflows 260.5 million US dollars into Treasuries during the month and a billion US dollar bond was also sold in January.

The Central Bank said foreign reserves rose to 8.0 billion in January from 7.2 billion US dollars in December.

6th FOOTWEAR & LEATHER FAIR 2014

6th FOOTWEAR & LEATHER FAIR 2014

7TH TO 9TH FEBRUARY 2014

BMICH- COLOMBO

The Footwear & Leather fair 2014 6th edition

The 6th Footwear & Leather fair 2014 was held from 7th to 9th February 2014 at the Sirimovo Bandaranaike Memorial Exhibition Center concluded successfully.

It was organized by the Sri Lanka Export Development Board in association with the Ministry of Industry & Commerce, Industrial Development Board (IDB) and the Sri Lanka Footwear and Leather Products Manufacturers Association (SLFLPMA).

The Footwear & Leather fair 2014 was ceremonially inaugurated by Hon Basil Rajapaksa Minister of Economic Development. Hon Rishard Bathiudeen, Minister of Industry & Commerce, Hon Lakshman Wasantha Perera, Deputy Minister of Industry & Commerce and Hon. Weerakumara Dissanayaka, Deputy Minister of Traditional industries & Small Enterprise Development were the Guests of honor at this event. Large gathering of diplomats form countries namely Iraq, Italy, Vietnam, Netherlands, Iran, Nigeria, Indonesia, Turkey, India, France, European Union, Libya, Romania, Cuba, Malaysia and Germany was presented at the opening ceremony.

The main objectives of this years’ fair was to strengthen and sustain the image of the industry, to promote Sri Lankan export capabilities among international buyers, providing opportunity for SME’s to improve their talents and capabilities to become export ready companies and to upgrade technological capabilities of SME’s and encourage them to move in to manufacture of value added products to cater to the international market.
There were 107 local companies and 20 foreign companies, amounting total of 225 stalls exhibited their products at the fair. There were 19 Indian companies who are the members of “Indian Footwear Components Manufacturers' Association” (IFCOMA) has participated at the exhibition at the IFCOMA pavilion.

• Special Events 

• Fashion Show

An exclusive Fashion show depicting the latest trends and designs of footwear and leather products held on 8th February 2014 added value to the event and Sri Lanka’s leading footwear and leather products manufacturers/exporters showcased their products at this show.

•  Design Competition

A   Design Competition was organized to provide an opportunity for upcoming young designers to showcase their talents. The competition was held under four categories namely Ladies Footwear, Gents Footwear, Special Category (Sandal or Slipper (ladies & Gents) made out of environmental friendly material) and Leather Products (Ladies hand Bags, Travel bags & Backpacks).
The winners were awarded the gold, silver, bronze trophies and  certificates for each category at Design Award Ceremony which was held on the 09th February 2014.

• Best stall competition

A best stall competition has been organized at the fair with the objective of encouraging companies to showcase their capabilities in a professional and attractive manner by designing their stalls up to international standards.

A trophy and a certificate was awarded to the winner of the best stall competition and certificates for first and second runners up. These awards were presented during the Design Award Ceremony.

B’Desh pushes biosimilar pharma JVs with Sri Lanka

The Island - 21/03/2014

Bangladeshi Health Secretary MN Neaz Uddin (left), Mohammad Sufiur Rahman (Bangladeshi High Commissioner to Sri Lanka- right)

For the first time, a government to government level cooperation effort is emerging to strengthen the supply of a crucial class of medicines in the $450 Mn Lankan pharma market. Bangladeshi pharma sector, which manufactures no less than 450 generic drugs for 5,300 registered brands, is now ready to partner with Sri Lanka to produce vital medicines used by seriously ill patients.

"Our local pharmaceutical manufacturers cater to 97% of the internal demand and they also export. We are ready to support Sri Lanka to produce biosimilar pharmaceuticals such as insulin and finalise them to finish product levels with a guaranteed cold chain. We are ready for government to government level JVs to begin with" said MN Neaz Uddin (Health Secretary, Bangladesh) on March 20 in Colombo.

Bangladeshi Health Secretary Uddin was addressing Rishad Bathiudeen Minister of Industry and Commerce of Sri Lanka at EDB premises in Colombo. Bangladeshi Health Secretary Uddin is in Colombo leading a 10 member strong Bangladeshi health sector delegation to the country.

Biosimilar pharmaceutical products such as insulin, growth hormones, and hepatitis B vaccines are used by critically ill patients. It is estimated that this segment consists of around 9% of Sri Lanka’s $450 overall pharmaceutical market. Bangladesh manufactures more than 450 generic drugs for 5,300 registered brands with 8,300 different forms of dosages and strengths. All top ten pharma manufacturers are of Bangladeshi origin without being multinationals, indicating a strong domestic manufacturing base. When it comes to Bangladeshi pharma exports, Beximo Pharmaceuticals is the leader taking for 19% of its $ 70 Mn pharma exports (in 2012). Bangledesh domestic pharma market alone is estimated to be around $ 1.25 Bn.

"Our local pharmaceutical manufacturers cater to 97% of the internal demand and they also export. We are ready to support Sri Lanka to produce biosimilar pharmaceuticals such as insulin and finalise them to finish product levels with a guaranteed cold chain. This is the first time we are looking at government to government level cooperation in pharma sector between both countries. We also invite Sri Lanka to visit and see some of our pharmaceutical manufacturing plants. We have high quality products and we are very competitive in pricing. Pharma joint ventures are a goal in Bangladeshi-Sri Lanka cooperation" said Bangladeshi Health Secretary Uddin, addressing Minister Bathiudeen.

"A government to government level joint venture can also help reduce our pharmaceutical import bill. Your suggestions are interesting and let us discuss terms and products on this with line agencies here. Our Economic Development Minister Basil Rajapaksa is keen to commence a pharmaceutical zone in Sri Lanka and your initiatives can help advance his vision" said Minister Bathiudeen responding to Bangladeshi Health Secretary Uddin, and added: "We are thankful for your invitation to visit your pharma plants of which we will consider favourably."

Plastics, Rubber make promising start in 2014

Lanka Business today - 22/03/2014

The Plastics and Rubber Industry in Sri Lanka (PRISL), the apex organization focused on the training and development of manpower needed to the emerging requirements of the plastics and rubber based industries in Sri Lanka, has successfully accomplished three significant events

A Joint venture with the Ministry of Industry and Commerce

PRISL achieved a significant milestone in its history of 55 years when it launched a training programme on the practical aspects of rubber processing technology, with the support of Rishad Bathiudeen, Minister of Industry and Commerce.

The official inauguration of the programme was held at the Ministry of Industry and Commerce (MOIC) on January 17, 2014. Anura Siriwardena, Secretary MOIC; Asitha Seneviratne, Additional Secretary, (Developments) and Epa Dayaratne, Director, MOIC also participated in the inauguration ceremony along with Rangith Samarasinghe, President of PRI,and other office bearers.

Fifteen participants selected by careful screening and interviews to follow the course also participated in the ceremony.

MOIC provided 50% of the funds required to conduct the Course as a grant while the balance was provided by the participants or their respective employer companies. It was encouraging to note the participation of SME Sector entrepreneurs from as far as Ampara, and some University students who are doing research projects related to the rubber industry.

Anura Siriwardena in his address stressed the need for establishing Private/ Public Particaption ventures of this nature in moving towards the country’s development targets. Ranjith Samarasinghe, thanked the senior members of the PRI who had worked untiringly with the Sri Lanka Export Development Board and the MOIC over the past two years to make this programme reality.

The Course was initiated on January 18, 2014 at the PRI Auditorium with a simple opening ceremony attended by the Office Bearers and the members of the Education and Events and Seminars Committees of PRISL.

The course, which will be conducted on Saturdays over a period of five months, will include visits to leading rubber product manufacturing companies and   Testing laboratories. A panel of lecturers well experienced and knowledgeable are selected to conduct the lecture sessions.

2 Seminar for sustaining profitability in the rubber industry

On January 23, PRISL conducted a half day seminar for the benefit of the supervisory and operator level personnel of the rubber product manufacturing industries. Forty participants attended the Seminar titled ‘Profitability of rubber product manufacturing in turbulent times’.

The topics were carefully selected to cover productivity, quality and energy management practices and a panel of experienced and knowledgeable resource personnel conducted the sessions whose main emphasis was on the practical aspects of cost savings which can be implemented at shop floor level. The panel discussion which followed generated a good amount of interaction and sharing of experiences among the participants

3 Seminar for sustaining profitability in the plastics industry

Based on the valuable inputs generated at the Seminar in January, PRISL ventured ambitiously to conduct a similar seminar on February 25 for the benefit of the plastics product manufacturing industry in Sri Lanka. The theme of the seminar was ‘Profitability of plastics product manufacturing in turbulent times’. This event was conducted as a joint seminar of PRISL and the Plastic Industry Association of Sri Lanka (PIASL) which is a relatively young organization, focusing mainly on policy issues specific to the plastics industry. The topics selected were on:

Process Controls and Productivity 

5S

Kaizen and Lean Manufacturing and 

Practical aspects of Energy Management. 

An eminent panel of nationally recognized resource personnel conducted the seminar

An unprecedented ninety eight personnel from supervisory and operator levels in the plastics product manufacturing participated in this highly successful seminar which brought forth into limelight the necessity for cooperation, and  collaboration among the organizations in order to achieve  common benefits for the polymer industry in Sri Lanka.

Aslam Omar, Director, Phoenix Industries, which is one of the leading plastic product manufacturing company in Sri Lanka, graced the occasion as the Chief Guest and made a short but thought provoking speech which emphasized the need for considering the turbulent times as a challenge.

PRISL envisages conducting similar events through the rest of the year in line with its core objective of education and knowledge dissemination in the polymer industry in Sri Lanka.

Tribute to Mr. Victor Santiapillai – The First Chairman of EDB

Asian Tribune - 23/03/2014
By : T.K. Premadasa

Victor Santiapillai - First Chairman of EDB

It was deeply saddened to hear the demise of Mr. Victor Santiapillai , the first Chairman of EDB early this month. Nation has lost a great personality who rendered an outstanding performance of duty for development of our Motherland. Mr. Santiapillai was recognized by international business community in high esteem.

Mr. Santiapillai after his preliminary education entered the University of Ceylon for higher studies. Later he joined Sri Lanka Civil Service. He was involved in bi-literal and multi-lateral trade development during his long career representing Sri Lanka at various forums etc. All his life dedicated for the trade development of Sri Lanka. His experience on commercial policy, trade and commodity agreements, market research and trade promotion comprehensively helped economic development of the nation.

Mr. Santiapillai was the Ceylon’s Trade Commissioner in the United Kingdom in the early 1960s and served nearly for 4 years. In 1975 he was appointed as the Executive Director of International Trade Centre (ITC) of the United Nation Conference on Development of Trade and Tariff and work there till 1979. His appointment as Executive Director of ITC brought high reputation for Sri Lanka. He was a legendary jewel of a man worthy of emulation who sacrificed international assignments to assume duties in 1979 as the Head of newly created EDB in favor of Sri Lanka

Mr. Santiapillai, the erudite scholar became the first Chairman of Sri Lanka Export Development Board with his name glow writ large in letters of gold in EDB history. His credibility and generosity not only captured the influence of the international community but also helped development of cordial relationship with other nations.

In the latter part of 1970s, Sri Lanka introduced market oriented economy also known as open economy. The main objective of market economic policy was to remove the barriers in trade locally and create export oriented economy. The main goal of creating export oriented economy was to develop product and services from Sri Lanka to present to the giant world market.

It was a huge challenge for Sri Lanka to deal with abrupt change from import substitute economy to export oriented economy. But the objective became a complete success as guided by intellectuals like Mr. Santiapillai. He infused unity and cooperation through which he reached progress.

It has been realized the necessity of a complete institutional framework and infrastructure in order to achieve the goals of Export Oriented economy. The establishment of Sri Lanka Export Development Board, apex body for export development was a fulfillment of national need for institutional framework for development and promotion of export trade.

The writer has written an article on the subject, “A Recollection of Collective Victory” at the 33rd Anniversary of EDB highlighting the victories of EDB. 90% of the activities were introduced during the tenure of Mr Santhiapillai as the Chairman of EDB. It would be appropriate to highlight the few work performed in tribute to the Great Leader. Implementation of Export Development Plan, Exporters’ Forum, Presidential Export Awards, Export performance oriented incentive payment scheme, Buyer seller Meets are a few areas.

The writer recall the warm welcome extended to all the six newly appointed officers including the writer offering his best wishes on their first day of assumption of duty at EDB in June 1981. He was a humble gentleman to his finger tips. The exemplary manner in which he taught us to be duty conscious to the nation with proper guidance was commendable. It was his dedicated hard work that EDB rose to the loftiest heights of glory in export development. The writer can assure that he never abused his privileges in the capacity as the Chairman of EDB to build up his image. High reputation acclaimed by him around the globe was indomitable. Most of the benefits being enjoyed today are regarded as fruition of his inspiring leadership. We all owe a debt of gratitude to this Great Son of Mother Lanka for his magnificent contribution made in silence to impress the world over of the competent prowess of our nation.

It would be more appropriate to quote Mr. Lalith Athulathmudai’s comments on Mr Santiapillai to end this note. In reply to a question raised by opposition at the Presentation of Export Development Board Bill in parliament in 1979, Mr. Lalith Athulathmudali said, “Chairman is Mr. Victor Santiapillai , the Secretary General of UNCTAD – GATT ITC – International Trade Centre – with world wide experience on this subject. I thought he was the best man to be influenced for his contribution to the benefit of the Motherland. He will be appointed as new Chairman of EDB.”

Encouraged by Mr. Santiapillai’s invaluable service to the country, the writer humbly pays his highest tribute to this Proud Son of Mother Lanka.