‘Even our SMEs suffered in global recession’-Rishad

news.lk - 26/05/2014

SMEs claim 70% of Sri Lankan enterprises and 23% of national employment. Our banking sector still looks the other way when it comes to our SMEs as they are worried about recovering credit from SMEs. This is despite our Central Bank’s efforts to keep lending rates at low levels. I urge our banking sector to link with Sri Lanka’s SMEs much closer and become a direct stakeholder in our national development. Do not avoid this risk. It is in such risks that great rewards and profits are found said Minister Bathiudeen and added: “In this background, I highly commend, the recent announcement by International Finance Corporation (IFC) office in Colombo to assist our SMEs with their valuable funding of $ 125 million.

Minister Bathiudeen was addressing the inauguration event of SMIDEX  held recently by the Industrial Development Board under Ministry of Traditional Industries & Small Enterprises at BMICH, Colombo. According to the IDB, SMIDEX has been introduced by the IDB to mark its 45th year anniversary. SMIDEX is yet another national event showcasing the SMEs with special attention to technology, machinery, raw materials, business development and other services.

Also present on the occasion were Basil Rajapaksa, Minister of Economic Development, Douglas Devananda, Minister of Traditional Industries & Small Enterprises, Weera Kumara Dissanayake, Deputy Minister of Traditional Industries and Small Enterprises, AHM Fowzie, Senior Minister, V. Sivagnanasothy, Secretary to Ministry of Traditional Industries and Small Enterprise Development, Anura Siriwardene, Secretary, Ministry of Industry and Commerce and Nawaz Rajabdeen, Chairman-Industrial Development Board of Sri Lanka.

SMIDEX is ably supported by the Ministry of Industry and Commerce and sponsored by the Export Development Board.

According to data available with National Enterprise Development Authority, Lanka’s SMEs claim 70% of Lankan enterprises and 26% of national employment. 91% of Industrial Establishments are SMEs.

The "Mahinda Chintana" vision of  President Mahinda Rajapaksa outlines SME entrepreneurs, to be the backbone of our economy. Thanks to President’s economic vision, in 2013 we achieved 7.3% GDP growth and, the Asian Development Bank, now forecasts, growth could reach, 7.5% in 2014.  The successful Divineguma program by Economic Development Minister Basil Rajapaksa is well known across the country, and has contributed to upgrade our entrepreneurs at rural levels. Also among other entrepreneur development efforts of NEDA, are the new business creation, and expansion programmes, the Women Entrepreneur Development program, and the Cluster development program. I am pleased to inform you, that the UNIDO focal point under my Ministry too has in the recent times spent more than $ 6 six million, to support our SMEs. The latest initiatives, by UNIDO are the project on Bamboo processing in Sri Lanka, the livelihood development project in the Eastern Province and the Cinnamon Industry skills upgrading project. Developing SMEs is not the responsibility of one institution alone, but is a team effort of several stakeholders.”

According to data available with National Enterprise Development Authority under Ministry of Industry and Commerce

 “SMIDEX is a forum for new market opportunities. IT helps boost Sri Lanka’s SMIs” said Nawaz Rajabdeen (Chairman-Industrial Development Board of Sri Lanka), addressing the event. “It is also a platform to share best practices, and strategies for our SME development, which is part of Mahinda Chinthana” Chairman Rajabdeen

Lankan delegation to explore new opportunities in post-revolution Tunisia at TIF 2014

The Island - 24/05/2014

Hon. Rishad Bathiudeen, Minister of Industry and Commerce will attend the Tunisia Investment Forum (TIF) 2014 along with a Sri Lankan business delegation on June 12 and 13 at El Mouradi Gammarth Hotel, Tunis. The forum takes place just six months after Tunisia’s adoption of a new constitution.
Under the theme, ‘New Tunisia: New Democracy, New Opportunities,’ TIF 2014 will showcase the impact of democratic progress on the country’s economic and social environment. The forum is expected to present a more transparent and conducive investment destination to the international business community, highlighting investment prospects and growth generating projects, a news release issued in connection with the forum said.

Last year’s forum saw the participation of 1,693 delegates including over 550 international delegates. TIF was launched by the Foreign Investment Promotion Agency-Tunisia in 2011, giving a new perspective to the Carthage Investment Forum that had taken place for 12 years. The new TIF reflects the colors and spirit of post-revolutionary Tunisia. It is Tunisia’s flagship economic event, bringing together the elite of the business community, high-level policy-makers, representatives of international organizations and experts.

"A new initiative in this year’s agenda proposes partnerships between Tunisian companies and foreign companies wishing to invest in Tunisia. TIF 2014 will serve as a platform for closer cooperation between Tunisian and foreign operators through B2B meetings scheduled along areas of interest expressed by the participants.

The face to face meetings are organised at no additional charge, and are reserved for companies, chambers of commerce and banks. They offer an opportunity to explore investment partnerships in various sectors, primarily industry and services. In order to guide participants in choosing and planning appointments, a catalog of Tunisian companies is available on the forum website, www.tunisiainvestmentforum.tn. Online registrations for TIF 2014 will be accepted until June 10,’’ the release said.

"TIF 2014 will focus on Tunisia’s macroeconomic situation and the impact of its new reforms, in order to strengthen the environmental sustainability of its investment climate. Institutional representatives, international experts and investors operating in the country will meet at four thematic workshops to share their views on the expected role of the economic reforms in high added value industries and in regions in search of an attractive new positioning. Foreign investors operating in Tunisia will testify to the propensity of this process achievement.’’

Further information and assistance with registration can be obtained by contacting The Export Development Board on 2300721 or 2300722.

First Lanka-Belarus JEC, biz delegations in July amidst renewed trade

Asian Tribune - 23/05/2014

Rishad Bathiudeen (Minister of Industry & Commerce-centre) greets Ambassador Vitaly Prima (the New Delhi based Ambassador of Belarus to Sri Lanka-second from left) on 22 May in Colombo.

As Sri Lanka’s trade with the virgin Eurasian market Belarus clocked $ 14 Mn, the gateway to the 170 Mn strong custom union wants to renew trade and business immediately -as early as in July.

“With your assistance, we want to prepare fruitful projects with Sri Lanka. We propose a Joint Economic Commission with Sri Lanka as early as July 2014 to be held in Colombo, if possible. We also can formulate the first Belarus Business delegation to Colombo during this event as per your interest” said a keen Vitaly Prima (the New Delhi based Ambassador of Belarus to Sri Lanka) on 22 May in Colombo.

Ambassador Prima was addressing the official Sri Lankan team led by Rishad Bathiudeen (Minister of Industry and Commerce) at the Ministry of Industry and Commerce on 22 May. Taking part in the discussion along with Minister Bathiudeen were R D S Kumararatne (Director-General of Commerce), Sujatha Weerakoone (DG-EDB), officials of Department of Commerce & EDB as well as reps of Belarus consul in Sri Lanka. Belarus is the world’s third largest potash power and an industry driven economy with a GDP equal to Sri Lanka.

For Sri Lanka, Belarus remains a virgin market. The first high level Belarus team to arrive in Sri Lanka in recent times, met Minister Bathiudeen and his officials in Colombo in August 2013.

According to the Department of Commerce, bilateral trade between both countries stood at $ 14.2 Mn in 2013 and bilateral trade volumes between Sri Lanka and Belarus more than doubled from its $ 7 Mn levels in 2010.

90% of Sri Lanka’s exports have been tea. Other export items are pneumatic tyres, articles for packing of goods and food preparations. Fertilizers (Potassium Chloride) has been the major import item from Belarus contributing to more than 95% of total imports in from Belarus in 2013. Belarus is the world’s third largest potash supplier after Canada and Braziland one of the key dairy economies in the world well-known for its cheese. The Russia-Kazakstan-Belarus Customs Union is reportedly keen for its expansion, with new regional members.

Ambassador Prima addressing Minister Bathiudeen, said: “With your assistance, we want to prepare fruitful projects with Sri Lanka. We propose a Joint Economic Commission (JEC) with Sri Lanka as early as July 2014 to be held in Colombo, if possible. I am pleased to hand over our proposal to you today in this regard. We believe the proposed JEC could be wide ranging-involving such aspects as trade, investment, education, agriculture and even science and technology. Closer ties with our country could open a 170 million strong Eurasian market of Russia-Kazakstan-Belarus Customs Union for Sri Lanka. We are also looking for more apparel and leather imports from Sri Lanka since our apparel production levels are low. “

“We understand you have a growing leather export industry here and we are also looking for upper shoe patterns/parts in big volumes for our shoe manufacturers from you. We continue to buy Sri Lankan made solid rubber tyres. We also like your fish and are keen on bigger imports of Sri Lankan seafood”

Responding to Ambassador Prima, Minister Bathiudeen said: “Due to President Mahinda Rajapaksa’s new initiatives, Lanka-Belarus cooperation has been strengthened in recent times. In this background, we welcome your proposals for Joint Economic Cooperation and I also suggest B2B visits to kick-off business and investment cooperation with Sri Lanka.

“Depending on the concurrence other line Ministries, July is a good time to start. Our current bilateral trade levels at $ 14 Mn shows of the huge unrealized trade potentials that could be realized with the latest trade efforts. We also invite Belarus investors to partner with us in our government’s proposed 60 investment projects as well as in our apparel, leather and seafood sectors. I propose the Department of Commerce under my Ministry to be the focal point in renewal of our bilateral trade efforts. We understand that Belarus is a dairy leader in the world. Therefore we welcome your support to our dairy sector. Stronger powdered milk manufacturing capacity for Sri Lanka is the need of the hour and can help us to cut down on our huge annual milk powder import bill of $ 1.7 Bn! I also invite a Belarus Business delegation to Colombo,” Minister Rishad Bathiudeen said.

Ambassador Prima, responding to Minister Bathiudeen, said: “Being one of world’s leading dairy nations, we can support developing Sri Lanka’s dairy sector-and not only on a single aspect such as powdered milk production but in its entire value chain! We shall favorably consider your request in this regard! As per your interest we would also formulate the first Belarus Business delegation to Colombo during July.”

Both Ambassador Prima and Minister Bathiudeen also explored other possible areas of bilateral cooperation on 22 May.

Algeria interested to buy Sri Lankan tea, fruits and vegetable juices

Ceylon Today - 14/05/2014

Algeria is inviting Sri Lankan businesses to export tea, fruit and vegetable juices and many other products to that country, the Ceylon Chamber of Commerce announced.

This invitation was made by Echarif Mohammed-Hacene, Ambassador for Algeria in Sri Lanka and India, when he visited the Ceylon Chamber of Commerce, accompanied by Consul General for Algeria in Sri Lanka, Mukthar Marikkar.

He held a meeting with CEO/Secretary General of the Ceylon Chamber of Commerce Harin Malwatte, while Lilakshi De Mel, Senior Assistant Secretary General of the Chamber, was also present.
During the meeting, the ambassador said, Sri Lanka can exports items such as, tea, fruits and vegetable juices, textiles, garments specially semi-finished traditional garments for women and spices.
Ambassador Echarif says, the Algerian consumers prefer to drink blended tea with mint and sugar and also would like to purchase tea in consumer bags.

“Algerian consumers prefer to drink blended tea with mint and sugar. Tea exported from Sri Lanka is channeled through Gulf region hence the country of origin is not reflect properly in Algeria” said the Ambassador Echarif.
His Excellency also said the Algerian consumer is cost conscious hence pricing should be economical.
“Tea exported from Sri Lanka should be in consumer packs of 500 gms to 2 kgs.  Tea bags are not popular hence they wish to use tea in consumer packs which could be purchased directly from the market,” added the Algerian envoy.

He further said that since Algeria is a non-alcoholic country, there is a great demand for tea, fruit and vegetable juices. At present fruits/vegetable juices to that country are imported from Mediterranean countries.
Speaking during the occasion, Harin Malwatte, CEO of the Ceylon Chamber Commerce told the Ambassador, that there is lot of scope available to develop trade, investment and tourism between Sri Lanka and Algeria.
The meeting took place, recently at the CCC premises in Colombo.

Algeria framed in the North by the Mediterranean Sea, the East by Tunisia and Libya, in the South by Niger and Mali, at the West by the Western Sahara then Morocco has a 37.1 million population with annual demographic growth of 1.53%. Algeria stretches over a 2.4 million sq.kms. Algeria ranks 42nd in GDP at an estimate of US$ 268.9 billion.

Japanese smiling on Lanka Ayurveda

Asian Tribune - 19/05/2014

Basil Rajapaksa (Economic Development Minister of Sri Lanka-second from right) and Rishad Bathiudeen (Minister of Industry and Commerce-fourth from left) attempt tasting fruit based confections from the Vietnamese exhibitor Alpha International Food JSC at the inaugural event of AROGYA 2014 and INTRAD 2014 at BMICH, Colombo on 16 May.

Sri Lanka’s Ayurveda healthcare is garnering the attention of high end tourist market. “Lately, the Japanese travel sector has shown stronger interest in Sri Lanka’s Ayurveda tourism. Last week a Japanese Member of Parliament touring Sri Lanka also has expressed of Japan’s interest in Sri Lanka’s Ayurvedic care for Japanese medical tourists” revealed an upbeat Rishad Bathiudeen (Minister of Industry and Commerce) on 16 May.

Basil Rajapaksa (Economic Development Minister of Sri Lanka) peeks through a microscope as Rishad Bathiudeen (Minister of Industry and Commerce-centre) looks on at the inaugural event of AROGYA 2014 and INTRAD 2014 at BMICH, Colombo on 16 May.

Minister Bathiudeen was addressing the simultaneous launch event of AROGYA 2014 and INTRAD 2014 at BMICH on 16 May. The twin expo is scheduled to continue through 18th May. The AROGYA series of exhibitions were introduced by the National Chamber of Commerce of Sri Lanka in partnership with the Ministry of Health and features indigenous medicinal products and services. As for INTRAD, this year’s is the eighth in the INTRAD series. Attending the twin expo were delegations and participants from Vietnam, Thailand, India, Maldives and China. Also present on the occasion were Economic Development Minister Basil Rajapaksa, Deputy Minister of Health Lalith Dissanayake, and Sunil Wijesinha (President National Chamber of Commerce) as well as representatives from the diplomatic community in Colombo. This is the first time that the twin events are held at once.

Since the end of conflict in 2009, Japanese tourists to Sri Lanka have doubled. In 2013, more than 31,500 Japanese tourists visited Sri Lanka. In the same year, Japan ranked 11th in arrivals to Sri Lanka as per tourists’ country of residence, immediately below USA, which ranked 10th.

“Already a Sri Lankan Ayurveda product brand has earned global reputation with its treatment centres being located in Europe. Today’s Arogya also takes place along with good news for this industry. I am given to understand that Japanese travel sector has shown stronger interest in Sri Lanka’s Ayurveda tourism. Last week a Japanese Member of Parliament touring Sri Lanka also has expressed of Japan’s interest in Sri Lanka’s Ayurvedic care for Japanese medical tourists. Our tourism sector reported more than 1.2 million arrivals in 2013. I wish to commend the Economic Development Minister Basil Rajapaksa for this growth” said Minister Bathiudeen and added: “Since medical tourism is at the middle of several sectors such as tourism, healthcare and inbound travel packaging, we believe that Public Private Partnerships are a good way to strengthen this promising sector so that our government’s goals in tourism related hub synergies are leveraged well. These twin events have been, gaining gradual recognition, among our business community, as successful networking events, in Colombo. With only a per capita healthcare expenditure of $ 175, at first Sri Lanka does not appear to have an advanced healthcare infrastructure similar to the developed countries. However, this does not show us the full picture. Due to the support of well-trained, high quality healthcare professionals we are witnessing the emergence of a new sector-that is medical tourism. Studies show that around 15% of patients in Sri Lanka are foreign patients, such as from Maldives. I am pleased to say that two healthcare companies already have active programs for foreign medical tourists. In fact the Export Development Board under my Ministry, which is also partnering for INTRAD and Arogya, believes that medical tourism is a promising service sector to drive our foreign exchange earnings. Developing a strong identity in medical tourism in western and Ayurveda can result in a special tourism brand for Sri Lanka in the long term. I am given to understand that INTRAD is a wide ranging exhibition including industries, imports and even exports. As the Minister in charge of exports I commend your efforts to promote our exports through this series. In fact I am pleased to share the good news with you on our exports. In that, the encouraging news is that we have identified 16% provisional export growth in the first quarter of this year from January to March, compared to last year’s January-March exports. Accordingly this year’s first quarter provisional exports totalled $ 2.80 Bn while the comparative 2013 first quarter total exports stood at $ 2.36 Bn, showing a 15.7% quarterly growth. This year’s first quarter provisional export growths is led by fisheries, agricultural and industrial exports. The increase in provisional exports only for the month of March this year is a strong 27% from February exports. This year’s March only exports totalled to a record $ 1.06 Bn. These strong growth rates are reported at a time when we target national exports goal of $ 20 Bn by 2020 under the committed vision of the President Mahinda Rajapaksa.”


Several international participants at the expo expressed that for them, Sri Lanka is a new opening. “Coming here from Vietnam for the first time, we did not know that Sri Lanka market has big such potential for our line of products” said Le Viet Anh (Business Director of Alpha International Food JSC) based in Yen Phong, Vietnam. “We have now decided to find and set up an authorised agent in Colombo to represent us. We are interested in potential joint ventures at distribution level here for our health confectionaries, which are based on tropical fruits.” Business Director Anh’s Alpha International Food is a top confectionary producer in Vietnam reporting annual revenues exceeding US $ 80 Mn.

SL to place its export products on top e-commerce portal

The Island - 11/05/2014

Sujatha Weerakoone (DG-EDB-far left) addresses the Rakuten platform intro event at EDB on 02 May as Japan's Kanagawa based Takashi Yoshino (Principal, Y and F Associates LLC-seated next, second from left) and Lankan exporters (seated next) look on.

As Lanka's exports to Japan topped $ 223 Mn mark, Sri Lanka is mulling a strategic, fast-track entry to one of the most coveted online markets in the world-Japan. "Japan is the second biggest retail market in the world. Japanese are also heavy internet users with a large e-commerce base. Using a top Japanese online giant like Rakuten could give Lankan exporters a wide-coverage and a low cost entry to this promising market" said Sujatha Weerakoone (DG-EDB) on 02 May at EDB premises.

DG Weerakoone was addressing the EDB organized event "Japan's Rakuten Platform for Sri Lankan Products" held for Lankan exporters on 02 May at EDB. The session consisted of a special in-depth presentation by Japan's Kanagawa based Takashi Yoshino (Principal, Y and F Associates LLC) who, in a his presentation, shoed in-depth of the pros and cons, and how to create an online strategy for Lankan exporters to Japan. Eager representatives from more than 40 Lankan export firms were present at the session.

Sri Lanka's exports to Japan has shown a steady rise. In 2012, total exports to Japan recorded $ 215.74 Mn and in 2013, it rose to $ 223.82 Mn. Apparel, tea and seafood (prawns and fish) became the lead products in 2013. Not only in Japan, but across the world, Rakuten (rakuten.co.jp) is considered as one of the largest e-commerce retailers. Within Japan, Rakuten is the largest e-commerce retailer. Rakuten is internationally present in 19 countries. As for Japan, around 30 percent of $ 13 Bn annual Japanese e-commerce traffic goes via Rakuten. With a single login to Rakuten, 78 to 80 million regular Japanese web users access its many services-which include retail business, travel, telecoms, banking and e-money services. The B2B2C Rakuten Platform recently reported revenues at $4.6 Bn with operating profits of about US$244 million.

"Japan is the second biggest retail market in the world. Japanese are heavy internet users. Using an online Japanese giant like Rakuten will give us a low cost entry to this market with immediate wider coverage" said DG Weerakoone and added: "This is also a novel concept and more importantly, a good, Sri Lankan product validation window. This is also a global online export strategy incubator for us. The lessons from this would be very important for us in placing our export products with top e-commerce retailers of the world. We at EDB are only looking at introducing and possibly a test run for to our exporters at present and are not imposing this on them. This online presence will also lift the burden for our exporters to not to maintain a ready inventory in Japanese warehouses."

"This is a challenge and a tryout for Sri Lankan exporters. I thank the EDB for inviting me to show you this novel concept. Japan e-commerce market is unlike many international online sales portals we know such as Amazon" said Principal Yoshino, addressing the session. "Japan's retail consumer market is world's second largest. It is not conducted in English though. Almost in Japanese language. More than 75% of Japanese buy products online, and most of them heavily use Japan's top online e-commerce portal Rakuten used by 29%-30% Japanese.

Apparel exports up by 20% to $ 1,257 m

Daily News - 12/05/2014

Bandula Egodage, Chairman & CEO of EDB having discussion with Rishad Bathiudeen Minister of Industry and Commerce about the latest export trends at the Ministry of Industry and Commerce. 

Sri Lanka's first quarter exports registered a positive growth of 16%, while monthly exports for March jumped by as much as 27%.

"This is encouraging for our efforts towards $ 20 bn export goal by 2020 as envisioned by President Mahinda Rajapaksa," said Rishad Bathiudeen, Minister of Industry and Commerce on May 9 in Colombo.

Accordingly, this year's first quarter provisional exports totalled $ 2.80 bn while the comparative 2013 first quarter total exports stood at $ 2.36 bn, showing a 15.7% Q-on-Q growth.

This year's first quarter provisional export growth is led by fisheries, agricultural and industrial exports. Fisheries exports grew by 23% to $ 71 mn, agricultural exports grew by 21% to $ 635.24 mn and Industrial exports grew by 18% to $ 2086 mn. Within the growth of industrial exports is the apparel exports increase by 20% to $ 1257 mn.

Within agricultural exports sector, coconut exports grew by a strong 68% to $ 125 mn, while tea grew by 16% to $ 383mn. Manufacturing exports which includes processed foods, leather and footwear, rubber and paper and are part of industrial exports also picked up, growing by 27% to $ 646 mn.

Unclassified exports grew by 44% to $ 11 mn. The increase in provisional exports only for the month of March this year, is led by many sectors, with strong performance by industrial exports. This year's March only exports totalled to a record $ 1.06 bn.

This is a 27% increase from this February's $ 841 mn monthly exports. The main growth driver for the month of March is 'manufacturing exports' which surged by 57% to $ 273 mn.

During March, tea exports increased by 34% to $ 154 mn, apparel exports surged by 16% to $ 454.53 mn and overall industrial exports grew to $ 784 mn, rising by a strong 26%.