Sri Lanka’s Garment Exports to EU, US Jumps 30% in Sept’13

The exports of garments from the island nation of Sri Lanka to its major export destinations of the EU and the US recorded a remarkable growth of 30.7 percent year-on-year and 32.2 percent year-on-year, respectively, in September 2013, according to a press release issued by the Central Bank of Sri Lanka.
The sharp growth in Sri Lankan apparel exports to the EU and the US reflect the recovery in those economies, the statement said.

Sri Lanka’s textiles and garment sector as a whole posted a significant growth of 27.7 percent year-on-year during the month to register US$ 386.9 million, according to the Central Bank data.
From January to September 2013, Sri Lanka’s total textiles and apparel exports stood at US$ 3.126 billion, showing a rise of 5.2 percent over exports of US$ 2.972 billion made during the corresponding period of last year.

In 2012, Sri Lanka exported textiles and apparels worth US$ 3.8 billion, and the country has set a target of achieving US$ 4.1 billion in textiles and garment exports this year.
Meanwhile, Sri Lanka’s textile and clothing imports are showing a declining trend. In September 2013, the country imported textile goods worth US$ 174 million, registering a decrease of 3.1 percent year-on-year.
During the first nine months of the current year, Sri Lanka’s textile and garment imports declined by 8.6 percent to US$ 1.502 billion compared to imports of US$ 1.644 billion made during the same period last year.

Last month, Central Bank’s Governor Ajith Nivard Cabraal said the apparel manufacturing sector in Sri Lanka may face a shortage of skilled labour within the next 2-3 years, due to the country’s anticipated transition into a middle-income country, and advised the country’s garment industry to prepare for the changes in the same way as it prepared for dealing with the discontinuation of the GSP Plus.

Source: Srilanka Apparel

Export earnings increase to record levels in October

Daily News - 04/12/2013

The external sector strengthened further with the trade deficit contracting sharply in October 2013,the Central Bank said yesterday. Earnings from exports increased to record levels, reflecting the ongoing recovery in the global economy, while expenditure on imports declined. The contraction of the trade deficit, higher inflows to the services account and an increase in private transfers contributed to reducing the current account deficit.

The favourable developments in the external sector together with higher inflows to the financial account, resulted in the Balance of Payments (BOP) recording an estimated surplus during the first ten months of 2013, compared to the deficit recorded during the corresponding period of 2012, the Central Bank said yesterday.

Earnings from exports in October 2013 reached US dollars 1,041 million, the highest ever monthly value recorded in the history of Sri Lanka's exports.

This growth was led by industrial exports followed by agricultural exports. Earnings from industrial exports in October 2013, which account for more than 74 per cent of total exports, increased by 34 per cent on a year-on year basis to US dollars 771 million mainly due to higher export of textiles and garments.

Earnings from textiles and garments exports grew by 46.8 per cent, year-on-year, to US dollars 436 million in October 2013, which was the highest monthly value of export of garment and textiles ever recorded. Exports of garments to both the EU and USA, which are Sri Lanka's major export destinations, recorded remarkable growth rates of 53.2 per cent and 43.4 per cent, respectively in October 2013, reflecting the recovery in those economies as well as seasonal demand.

Meanwhile, earnings from rubber product exports increased by 50.1 per cent, year-on-year, to US dollars 94 million in October 2013, the highest monthly value since August 2012, led by higher exports of rubber tyres.

All categories of industrial exports, except gems diamonds and jewellery, animal fodder and petroleum products grew in October 2013. Earnings from agricultural exports rose by 37.4 per cent, year-on-year, to US dollars 258 million in October 2013 mainly due to an increase in export earnings from tea followed by spices. Earnings from tea exports recorded a healthy growth of 26.6 per cent to US dollars 147 million in October 2013. This was the combined outcome of a 13.6 per cent increase in export volumes and an increase in the average export price of tea by 11.4 per cent. Earnings from the export of spices increased significantly by 79.9 per cent to US dollars 41 million led by pepper and cinnamon exports. Continuing the strong performance recorded since June 2013, the volume of both pepper and cinnamon exports increased substantially although prices of those commodities declined, year-on-year. However, in October 2013 rubber export earnings contracted by 29.0 per cent compared to October 2012, due to the continuing decline in both export volumes and prices, owing to low demand from major rubber consumers, such as China and Japan.

Expenditure on imports declined by 2.8 per cent to US dollars 1,535 million in October 2013, due to the significant decline in both intermediate and investment goods imports. Expenditure on intermediate goods imports declined by 7.8 per cent, year-on-year, to US dollars 897 million in October 2013 mainly due to the decline in the importation of fuel and textiles. Expenditure on the importation of petroleum products declined in October 2013 due to the availability of sufficient stocks from previous months. Despite the strong growth in export of textiles and garments, there has been a steady decline in imports of textile and textile articles, reflecting improved backward linkages and higher value addition in the garment industry. Lower import of diamonds and precious stones and metals, rubber and articles also contributed to the decline in intermediate goods imports. However, fertilizer imports increased sharply by 110.7 per cent year-on-year, to US dollars 27 million in October 2013, mainly due to the low base in the corresponding period in 2012 and to ensure availability of adequate stocks for the upcoming Maha season. In October 2013, import expenditure on investment goods declined by 6.8 per cent, year-on-year, to US dollars 351 million mainly due to the decline in machinery and equipment imports by 16.5 per cent and a decline in transport equipment imports by 11.0 per cent although building materials imports increased by 13.4 per cent. Meanwhile, expenditure on consumer goods imports recorded a 25.6 per cent growth, year-on-year, to US dollars 286 million in October 2013 with increases recorded in both food and non-food consumer goods categories. Vehicle imports, mainly contributed to the increase in consumer goods imports, recording a year-on-year increase of 150.7 per cent in October 2013. Dairy products, clothing and accessories, Oils and fats, medical and pharmaceuticals and household and furniture items also contributed to the increase in consumer goods imports.

Lanka exports jump in October

Asian Tribune - 24/11/2013

Top officials join Rishad Bathiudeen (Minister of Industry and Commerce) to review exports at the Ministry of Industry and Commerce.

Sri Lanka is hopeful as exports continue to surge with latest volumes showing a promising uptrend. “The export trend in September is continuing. The 3% exports increase in October is higher than expected” said a pleased Rishad Bathiudeen, Minister of Industry and Commerce on 22 November.

Minister Bathiudeen was acknowledging the latest export numbers for October 2013 indicated to him by his top officials on 22 November at the Ministry of Industry and Commerce.

Accordingly, the January-October 2013 exports turnover increased by 3.07% to $ 8379.93 Mn in comparison to Jan-October 2012’s $ 8130.20 Mn.

According to the provisional data provided by the EDB, apparels rose by a strong 9.39% to $ 3549.94 Mn, while Industrial products rose by 2.32% to $ 6139.64 Mn. Agricultural and tea increased strongly- Agro product exports rose by 8.63% to $ 2015.85 Mn while tea exports also rose by 8.96% to $ 1237.82 Mn.

Other export crops such as spices, vegetables, fruits joined the trend, rising overall by 42% to $ 430.01 Mn.

Even fisheries products has increased by 15.03% to $196.35 Mn!

$ 01 B int’l biz partnerships from Reflection

Asian Tribune - 22/11/2013

Sujatha Weerakoon (DG-EDB-second from left) and Bandula Egodage (Chairman-EDB) join Rishad Bathiudeen (Minister of Industry and Commerce-far left) and Basil Rajapaksa (Minister of Economic Development-second from right) on 16 November at Reflection of Sri Lanka, Battaramulla.

The biggest Lankan trade, tourism and investment exposition in history successfully concluded on Sunday 17 November at Battaramulla, with $ 01 Bn in international business partnerships. “The event appears to be a sell-out. There were more than 242000 visitors that included an unprecedented number of international buyers representing 66 countries -which led to 1428 serious buyer visits, 101 promising B2B meetings” said Rishad Bathiudeen, Minister of Industry and Commerce on 20 November in Colombo.

Minister Bathiudeen was speaking with his top officials including Anura Siriwardena, (Secretary, Ministry of Industry and Commerce), on 20 November acknowledging the final review of the progress of Reflection of Sri Lanka -the integrated tourism, trade, investment and SME exposition -inaugurated on 13 November in Battaramulla. Reflection of Sri Lanka was inaugurated by (HE) the President Mahinda Rajapaksa on 13 November evening in the presence of a large number of Lankan and international dignitaries as well as media.

The strategic thinking behind “Reflection of Sri Lanka” is to leverage the opportunities provided by CHOGM as a platform to illustrate Sri Lanka’s capacity to easily integrate with global value chains. ‘Reflection’ will also highlight the country’s logistic capabilities, high knowledge base, and its dedication to international compliance standards encasing trade, tourism and investment opportunities in them. This historic Sri Lanka brand push targets no less than the movers and shakers-the international decision & policy makers as well as investment influencers arriving for CHOGM. In fact, many top Lankan brands, vendors and products such as Pure Ceylon Tea (Dilmah, Basilur), IT/BPO (SLASSCOM, PWC), were in prominent display at the site.

This event is an inter-Ministry effort, co-organized by the Ministry of Economic Development, our Ministry the Ministry of Industry and Commerce and the EDB functioning under it, and is joined by Sri Lanka Tourism, and the Board of Investment.

According to the Reflection of Sri Lanka performance report, there were The 242,176 visitors included an unprecedented number of international buyers representing 66 countries -which led to 1428 serious buyer visits, 101 promising B2B meetings, 195 negotiations for business partnerships leading to 37 confirmed, positive outcomes in 11 sectors- while another 897 event participants were being served by a novel concept called specific Export Industry Seminars that took upon such timely topics as ‘How to Export Under FTAs’.

Of the 1428 serious buyers visiting the event, 566 were trade delegates (including foreign visitors), 247 were online registered buyers, 510 from Business Forum delegates and 105 were new registrants. 101 promising B2B meetings were concluded successfully. 195 negotiations for business partnerships took place of which 37 led to confirmed, positive outcomes in no less than 11 sectoral categories of which the leading categories were ‘diamond, gems and jewellery’ and ‘soft toys & accessories’. 897 participants were given the opportunity to take part in a novel concept called Export Industry Seminars which focused on timely and very specific themes such as aquaculture development, bilateral technology cooperation, greener coconut production and exporting under FTAs.

Of the international visitors from 66 countries, business and investment delegations from China (04 delegations), Italy (1), South Africa(1), UAE(1), Iran(1), met Hon Minister of Industry and Commerce Rishad Bathiudeen at the Reflection venue and were enlightened of the many pathways to partner with Sri Lanka.

The Chinese, Italian, and South African delegations were afforded special factory visits upon their requests by Reflection organisers. Among the many factories visited were tea, construction, paint, rubber, cables, seafood, and fruits & vegetable processing. 49 international journalists from Canada, Dubai, Belarus, Russia, Ukraine, U.K., France, Saudi Arabia, India, Philippines, U.A.E, Pakistan, Japan and China visited the exhibition covering the opening ceremony, took comprehensive walk-throughs of the site and met Hon. Minister Industry & Commerce, Secretary Ministry of Industry and Commerce, DG Commerce, EDB Chairman, DG and with EDB officials at a briefing on 14 November. Hon Minister of Economic Development Basil Rajapaksa too, personally briefed international Journalists from Japan, India, New Zealand, and Australia. This large scale event was an inter-Ministry effort, co-organized by the Ministry of Economic Development, the Ministry of Industry and Commerce and the EDB functioning under it, and is joined by Sri Lanka Tourism, the Board of Investment and the Gem and Jewellery Authority.

The success of the event illustrated by its visitor composition alone is strong proof of confidence of international trade, investment and business communities on Sri Lanka’s new growth towards an upper middle income market economy.

The mini-BoI one stop shop at the venue recorded almost 4500 inquiries of which about 500 were from international business visitors. “Our stall has been well attended from the start. We have sector specific BoI specialist attending every serious inquiry immediately” said Jagath De Silva (BoI Senior Deputy Director-Media & Publicity). “There were many investment inquiries and among them, four large-scale investment inquiries positively stand out. The Spanish BoI wants to bring a strong investment delegation to Colombo for automobiles, machinery tools, and light engineering, A Canadian inquiry for an automated car park in Colombo, Iranian investment inquiry on fertiliser plant, Chinese investor inquiry to set up a steel construction material supply plant in Hambanthota” added De Silva.

Also inside Reflection was an expo within an expo- the China Engineering and Technology Expo event by China International Contractors’ Association, (CHINCA)China Council for the Promotion of International Trade, Chinese government officials, officials of Chinese Embassy in Colombo, and China Machinery Engineering Corporation. The CMEC stall, spanning 1300 Sq Ft, showcases 50 Chinese enterprises-including many businesses across many sectors including engineering contractors and engineering equipment manufacturers too.

Taiwan Textile Fair begins on November 26

Daily News - 20/11/2013

The top textile companies from Taiwan will be showcasing their cutting edge, unique and high performance textile products at Taiwan Textile Fairs in South Asia 2013 at the Taj Samudra, Colombo, Sri Lanka on November 26 and 27, 2013.

Taiwan is one of the largest textile exporters in the world and the Taiwan textile industry is internationally renowned for its manufacturing excellence. Their superior quality yarn, innovative fabrics and textile products are now coming to Sri Lanka and will present their range of state-of-the-art textile products to Sri Lankan apparel manufacturers at the Taiwan Textile Fairs in South Asia 2013.

With Sri Lanka's textile and export industry growing again, the Taiwan Textile Fairs in South Asia 2013 is the perfect opportunity for Sri Lanka's apparel manufacturers to source superior, exclusive and unique fabrics and yarns that will add substantially to their product range while also introducing manufacturers to new product categories.

Sourcing the unique fabric and yarn from these Taiwan based companies will give a substantial competitive edge to Sri Lankan manufacturers while also fuelling their growth in the growing domestic as well as international export market. The Taiwan Textile Fairs in South Asia 2013 is the ideal business matching platform for Sri Lankan marketers, business buyers, partners, distribution channels and key decision makers.

Taiwan Textile Fairs in South Asia 2012 was very successful and Justine Cheng, Specialist of Marketing Development Department of the Taiwan Textile Federation said, "We were pleased with the response in 2012.

The number of buyers to our show confirmed the strong potential of Sri Lanka's apparel market. This year the Taiwan Textile Federation has organised a group of textile and accessory suppliers specialising in fashion, function and innovative eco-friendly products. These suppliers will not only provide you premium products, but also provide Sri Lankan exporters and manufacturers a full package with high quality control and long-term reliable service."

This is organized by the Bureau of Foreign Trade (BOFT) and Taiwan Textile Federation (TTF) with its representative agency Worldex India Exhibition and Promotion Pvt Ltd., the event is duly endorsed by the Sri Lanka Export Development Board (EDB) and supported by the Joint Apparel Association Forum (JAAF) and Sri Lanka Apparel Exporters Association (SLAEA).

Spice, allied products turnover to reach US$ 500 mn by 2015

Daily News - 19/11/2013
By Indunil Hewage 

The demand for value added cinnamon products such as cinnamon leaf oil, bark oil, crushed cinnamon and ground cinnamon for confectionery and other food related industries has increased in the world. Sri Lanka is planning to double cinnamon export earnings by increasing value addition of cinnamon.

Sri Lanka is the largest supplier of cinnamon exports to the world spice market, producing about 85% of international output. However, Sri Lanka ranks well below in value added cinnamon exports to the world market. Other competitor countries make huge profits by adding value to cinnamon exported from Sri Lanka, while Sri Lanka is losing profit due to exporting more raw cinnamon.

“The annual spice export contribution to the total GDP is only around 0.5 % and plans are underway to enhance export income from spice exports to 10 % of the Gross Domestic Product (GDP) by 2022 with foreign donor funding.

In a bid to enhance spice exports, it is important to introduce new crop types, improve productivity and quality, enhance value addition and by- product development, research and development, explore new market opportunities, products valuation and processing activities and others.” Ministry of Minor Export Crop Promotion senior official told Daily News Business.

EDB Chairman and CEO Bandula Egodage told Daily News Business that spices especially cinnamon exports are performing well and Sri Lanka is the topmost exporter of cinnamon, producing about 85% of international output. “We are currently working on obtaining the certification for Geographical Indication Process (GIP) for cinnamon.

This will help us to consolidate our position in the global market”, he said. 

Ministry of Economic Development of the Democratic : Reflection of Sri Lanka International exhibition from November 13 to 17

4-traders.com
By Dharman Wickremaratne

The exposition on Trade, Tourism and Investment titled 'Reflection of Sri Lanka' is set to take place in parallel with the Commonwealth Heads of Government Meeting (CHOGM), in November 13 to 17, 2013 at the Battaramulla Ape Gama premises(Jana Kala Kendraya). This event would be the biggest of its kind, happening in Sri Lanka, with the registered participation of 520 exporters under one roof, accommodating 968 stalls.

Reflection of Sri Lanka International Exhibition on Trade, Tourism and Investment organized by the Ministry of Economic Development and Ministry of Industry and Commerce together with Export Development Board(EDB), Sri Lanka Tourism Promotion Bureau and the Board of Investment(BOI).



300 exporters have been chosen by the EDB to showcase their products in 355 stalls while 200 export-oriented SMEs have been allocated 100 stall in the vicinity under a separate SME sector corridor. Earlier markings noted 25 machinery exporters to be given 36 stalls and 82 tourism-related parties to have 100 stalls, while over 200 more were allocated  for international technology providers. Foreign representatives of importers from 70 countries are set to grace the event, paving way of a golden opportunity for potential exporting parties to attract potential investors.

With the anticipation of 700 registered foreign participants of the Commonwealth Business Forum, this is set to reach a total of 1300 with local attendance to the exposition. At a glance, it is estimated that up to 2500 foreign nationals will attend, making this one of the largest crowds ever to attend this landmark event, in Sri Lanka.

The trade stalls will concentrate on seven key sectors - tea, apparel, gem and jewellery, spices, food, rubber, products and ICT/BPO. Buyers are expected from India, China, Canada, UK, UAE, Iran, Philippines, Egypt, Pakistan, Singapore and Seychelles, with buyer delegations with national representation expected from China, India, South Africa and Iran.

The event, which will be held on a nine acre land, has instigated an informative and visible array of Sri Lanka's main crops adjacent to its relevant featuring stall in the form of a mini tea plantation, coconut, cinnamon and other spices, ayurvedic herbs, rubber etc.
The site will be preserved continuously after the conclusion of the exposition.

The Board of Investment (BOI) have also instigated a one-stop shop or 'Investment Centre' for the sole purpose of catering towards interested investors who can acquire relevant project information with regard to potential business projects in Sri Lanka, whilst assisting those interested parties in all aspects of immediate and convenient registration. The BOI is set to promote more than 55 Government related and large-scale projects to participants of the forum.

Anuga Exhibition from 5th to 9th October 2013 in Cologne, Germany

Asian Tribune - 10/11/2013

Anuga Exhibition from 5th to 9th October 2013 in Cologne, Germany

The Anuga Exhibition is the most important platform for the food business held in Cologne. This year, 6777 exhibition stands catered to the public, and more than 150 000 trade visitors from 187 countries were present to check out the actual trends in the food business.

The Minister of Industries and Commerce of Sri Lanka, Rishad Bathiudean, accompanied by Ambassador of Sri Lanka in Germany, Mr. Sarath Kongahage, and the Consul General of Sri Lanka in Frankfurt, Mr. Pradip Jayawardana, opened the Sri Lanka representation with 41 Sri Lankan companies exhibiting high quality Sri Lankan products such as tea and other export products.

Anuga Exhibition from 5th to 9th October 2013 in Cologne, Germany

15 of the Sri Lankan companies exhibiting at the Anuga were represented in the National Pavilion organized by the Sri Lanka Export Development Board. 8 companies represented the Sri Lankan tea in the Tea Board pavilion. 18 companies visited the Anuga by their own efforts, most of them operating in the tea export business. Many companies reported a good level of ordering activity. One company spokesperson also said that the participants generally expect the post-fair business to be fairly good.

There were many inquiries about Sri Lankan products in the course of the exhibition. The exhibiting companies reported many intensive discussions with high-level decision-makers. The new trends identified at the exhibition are modifications of the daily life style and eating habits. Companies have to focus more on freshness, taste, nutrition and sustainability of their products. Another trend is a focus on high quality and organic food products.

Lanka’s export revenue to reach US$ 11 billion mark

Daily News - 08/11/2013
By Indunil Hewage

Sri Lanka’s total export revenue is expected to reach US$ 11 billion mark by the end of this year, Export Development Board Chairman and CEO Bandula Egodage said

-“This is not an easy task, but we hope to reach the $ 11 billion export revenue mark by end of this year. As of September our total export value for 2013 is recorded at US$ 7314 million, which is a 1.07% increase in comparison to the same period in 2012. Our exports are now gradually strengthening despite the international market challenges. We have also set an export target of US$ 15 billion by 2015 and $ 20 billion by 2020. Apparel and tea exports currently account for over 40% and 20% of total exports from Sri Lanka respectively.

Apart from tea and apparel, spices, fishery products diamonds, gem and jewellery and other industrial products are performing well,” Egodage told Daily News Business Commenting on the cinnamon exports, Egodage noted, “spices especially cinnamon exports are performing well and Sri Lanka is the topmost exporter of cinnamon, producing about 85% of international output. We are currently working on obtaining the certification for Geographical Indication Process (GIP) for cinnamon. This will help us to consolidate our position in the global market.”

Egodage also added, “I’m confident that the upcoming budget will offer incentives to Sri Lankan exporters enabling them to be competitive in the global market. I’m a firm believer that the government will extend support to Sri Lankan exporters who bring valuable foreign exchange to the country.” 

SL-B’desh mull formulating PTA

Daily Mirror - 05/11/2013

Sri Lanka and Bangladesh will begin formulating a preferential trade agreement (PTA) between the two countries subsequent to the completion of the Commonwealth Heads of Government Meeting (CHOGM), with a view to developing into a free-trade agreement (FTA) in future, according to Bangladesh High Commissioner to Sri Lanka Mohammad S. Rahman.

“The current quantum of bilateral trade between Sri Lanka and Bangladesh is still relatively low at approximately US $ 9 million.

However, there is a lot of potential to improve this figure. We hope to establish a PTA once the CHOGM is completed, which can eventually be developed into a fullyfledged FTA in future,” he stated.

Rahman stated that a Working Group on Trade had already been formed between Sri Lanka and Bangladesh, adding that a PTA would be part of the Bangladeshi government’s continued efforts to increase intra-regional trade with its neighbours.

Emphasizing that the formation of a list of items to be given preferential treatment has still not commenced, he nevertheless stated that tea and rubber are potential Sri Lankan exports that could receive such concessions, while pharmaceutical exports from Bangladesh are also being considered.

He stated that the proposed PTA and eventual FTA between the two countries would be formulated along the lines of the South Asian Free Trade Agreement (SAFTA) and initially consists of alterations to the ‘sensitive list’ or negative list of items.

“Ultimately it will have to be the exporters and consumers in our markets who decide the actual terms of the agreement,” he added.

Additionally, Rahman stated that steps would also be taken to improve co-operation between Sri Lankan and Bangladeshi ports, potentially including a Memorandum of Understanding between the new Magampura Mahinda Rajapaksa Port and Bangladesh’s Chittagong Port.

“There are a lot of synergies that can be achieved that can be achieved in the shipping sector, particularly since about 80 percent of Bangladesh exports are first shipped to Singapore, of which a large majority is then shipped back West.

If Sri Lanka can improve its port efficiency, then there is a lot of potential to develop maritime links between our nations for mutual benefit,” Rahman observed.

Reflection of Sri Lanka - Export Industry Seminars

Reflection of Sri Lanka Promotional Video

Ornamental live fish exports –National Priority Needed

Asian Tribune - 03/11/2013
By T.K.Premadasa

The notable feature of our exports during the last few years was the decline in exports, an ominous signal to the economy. The reason behind this decrease was the local and foreign market factors such as high cost of production, lack of strategic strength, non-preference by Western countries and economic crises in the occidental world.

Major products manufactured in Sri Lanka which took take the precedent role in its contribution to the export trade also shown decline trend. Under this situation, the export of fresh and marine water ornamental fish have significantly maintained export strength except 2012 and now showing nearly 20 % increase of its export in 2013 up to August compare to the previous year.

Contribution of fresh water and marine water ornamental fish to the total export comes to nearly 0.4 %. Even if the percentage seems to be small, it carries a continuous share of its contribution to the national development. It is much importance looking into this sector in positive manner to take to priority area of exports as Sri Lanka rich with resources related these products.

Ornamental fish keeping is one of the most popular hobbies in the world today. Some people believes that looking in to the these fishes moving in tanks gets mental relaxation and it is an ideal tool for mediation. Even scientist believes the hobbies collection and looking in to the fish get reduction from stress and frustration. The keeping of fish as pet is not harmful to human health like other pets.

The hobbies of keeping of colorful fish in tanks has been going back to long history. The first such fish keeping fish is Gold Fish( Carassius auratus). According to historian says it was popular in China and first historical records of kept goes back to Ming Dynasty in China.( (1368–1644).

But all Sri Lankan should proud that during King Dutugamunu (161 BC to 137 BC) Sri Lanka kept gold fish as hobby. Archeologists discovered the gold fish park or Ranmasu Uyana which is located below the bund (dam) of the 'Tisawewa' tank in Anuradhapura. It is considered to be the royal park / pleasure gardens with granite ponds. It is interesting to note that in an inscription it is stated that, somewhere in this park, had been a pond with 'Goldfish'. The Vessagiriya inscription of King of 4th Mihindu has been mentioned this garden as Gold Fish Park. This proves that Sri Lanka is the first country keeping ornamental fish as hobby.

Ornamental fish developed as an industry with development of aviation industry. It made a path to become a global trade. With the development of new technologies in modern world such as development of aquaculture technology, water management systems, better understanding of nutrition and aquatic disease management and many other branches of animal husbandry sciences have supported to develop this industry as global industry.

Today this industry has became global item with nearly US$ half billion trade. The Asian countries maintained the large number of supply to the world. Singapore maintains as largest exporter of ornamental fish and recently Spain came to first place. Over hundred thousand varieties of Ornamental fish moving around the world. USA , EU Japan are the leading buyers.

Ornamental fish industry of Sri Lanka originated with the establishment of the Zoological Gardens in early 1940s. A few industrialists were involved in breeding fish before, but not on commercial basis. Of the few reputed personalities who encouraged divers on collection of marine fish as a hobby was Sir John Kotelawala. However the first public Aquarium was established in 1952. During a period of 60 years the industry became commercialized with the celebration of 50 year anniversary by some companies like, Lumbini Aquarium, Aquamarines International Private Limited.

Today nearly 50 leading companies export about thousand varieties of fresh and marine water ornamental fish to over 50 countries. Leading exporters on large scale business of aquariums located in Colombo suburban areas and Negombo region have started moving to Mahaveli and dry zone rural areas. Prevalent peaceful environment in the North and East has caused the expansion of the industry into tropical climatic locations in the island.

Sri Lanka exports over a thousand varieties of Ornamental fish to the tune of Rs 1,400 Mn around 40 countries world over. It is nearly 1.2% of the total world exports.

Sri Lanka Exports of Ornamental fish in US Dollars

Year	2008	2009	2010	2011	2012	2013Jan- July
Value	8,981,333	8,523,277	10,076,839	10,053,137	7,573,518	5,816,816

This industry has high expansion of potential available with an abundance of natural resources. Unbelievably charming fish of various kinds never seen before could be captured in plenty around Sri Lanka, island of the Indian Ocean. Availability of professional divers who routinely maintain the supply of marine fish is a remarkable advantage towards development of the industry.

Recent records indicate that nearly 120 species have been registered from inland water. Rivers, Reservoirs and Lakes with fresh water provide natural environment for sustenance of fresh fish. This has encouraged the government to promote production of fresh fish in central province. Sri Lanka has 82 species of indigenous fresh water fish out of which 54 species have been approved for export.

As the varieties of Fresh Water Ornamental Fish are limited, the industry has been concentrating mainly on marine water ornamental fish from the beginning as there was a vast area found in the ocean. Today Marine live fish leads by 75% of its ornamental fish exports.

However, restrictions on the import of ocean fish have been enforced by the occidental nations of the world causing a difficult situation for trade of marine fish. Fortunately, Sri Lankan breeders, particularly of younger generation, have braved the challenges with innovative and alternative measures taken to buttress the situation.

The new generation involved in breeding ornamental fish for export is qualified in professional education directly related to fish industry. Some of them have mastered marine biology degrees from world reputed Universities and utilized their know how for new innovation with high security measures adopted for the Ocean. The striking example is the introduction of new varieties of sea horse by companies like Aquamarines International (Pvt) Ltd. In early 2000, steps were taken to breed a variety of sea horse fish under the technical name Hippocampus Reidi netted from Brazilian sea exported with great success. Later the new varieties of Hippocampus ( Sea Horse ) Hippocampus Comes, Hippocampus Trimaulatues Hippocampus Kudda sea horse fish were captured from sea and effectively bred. In addition to varieties of shrimps like Fire Shrimp and Cleaner shrimp also introduced. Today the export of new varieties of fish has earned the highest export value. The objective of these researches was mainly to secure the environment. The cost of this marine fish is seven times higher than the fish captured from the ocean. Despite the high price of fish, the hobbyists have no qualms in purchasing as this system gives protection to these attractive fish as well as the environment.

Varieties of new products of artificial rocks and possibility of coral farming were introduced on experimental basis by Aqua Marine International (Pvt) Ltd opening the opportunity of a new venture to be developed to a lucrative business. Apparently, building ornamental fish villages in Sri Lanka has been proposed. Hopefully the new experiment may help develop the industry!

It is imperative for the government to give its priority to improve the industry with the support of the government. Ornamental fish is usually brought up moving with corals and live stock etc. Today experiments are being launched on upgrading the coral farming projects in Sri Lanka more effectively.

The most nations have volunteered to help develop the Coral Farming Project in their countries as a protective measure for corals in the Ocean and it will be a commercially viable industry. In appreciation of the effort taken by the companies to expand the industry with coral farming projects, it is the responsibility of the government to grant necessary approval sought by the companies without any delays in support of its endeavor of developing the industry.

As a result of experiments made already, chances are possible that export of artificial rocks in commercial scale will be launched in the near future. Tax rates will be considerably high despite this being a small scale business venture. So it is the onus of the exporters to stress the demand for tax concession in their effort to elevate the development of artificial rock industry.

As a school of thought it is suggested to open aquarium parks in the city that would make the people mentally relaxed. It is important that the government look in to the possibilities to link with its urban development activities of the government.

Another predominant factor is the high rise in electricity charges. It is suggested to address this issue with equal facilities enjoyed by other commercial organization to be extended to this industry as well.

Potential for marine fish industry in Northern waters post-war has become highly optimistic by the increasing trend of fishing in the region. The environment is so peaceful for fishermen to be engaged in their job quite freely sans threat of terrorism. If opportunity is given, the divers in the South skilled with professional expertise are willing to train Northern divers as a gesture of reconciliatory goodwill. It is the virtue of necessity on the part of the government to play the major role in taking all essential measures to have suitable protection to divers in the Northern and Eastern waters.

It lends credence to the breeders whose ventures have taken protective measures of nurturing endemic species evidently justified by the discovery of new varieties of species. Daino Pathirana discovered by Ananda Pathirana is a case in point.

Chairman of Aquamarines International (Pvt) Ltd Ananda Pathirana and Director Yohan Pathirana by their research in 2001 in Kegol and Nuckels successfully collected 8 specimens in an effort to checkmate the disappearance of this rare species. Braving a difficult challenge, breeding in large quantity of fish was begun encouraging the release of 2000 and 2500 with participation of local community and the blessings of the Department of Wild Life. The entire nation salutes them in appreciation of this excellent service.

Today the breeders are effectively utilizing advanced technology for development of the industry with no harm whatsoever to the environment. Most importantly, capture of rare varieties of marine fish from around the world and breeding them with new scientific resources methodically should be encouraged. Culturing aquarium plants in aquariums is currently in the experimental stage. New technical know-how being applied to secure the longevity of fish and new packaging techniques to reduce the weight has showcased a vast progress.

Support extended by Sri Lanka Export Development Board ( EDB) and NARA to uplift the industry is encouraging. The service rendered by the officials who assigned for the development of the industry from NARA and EDB in close communication with the exporters has gained high recognition. As proposed by the President Mahinda Rajapaksa in his budget speeches, that the implementation financial grant program to develop innovation on fresh and marine ornamental fish industry by the Sri Lanka Export Development Board with the various bureaucratic barriers is commendable.

Sri Lanka identifies key investment projects for Commonwealth Business Forum participants

The Colombo Page - 03/11/2013

Sri Lanka has identified several key areas for investment opportunities to offer to the attendants of the Commonwealth Business Forum (CBF) that will coincide with the Commonwealth Heads of Governments Meeting (CHOGM) scheduled to be held in Sri Lanka from 15th to 17th November, 2013.

The Commonwealth Business Forum will be held from 12th to 14th November at the Hotel Cinnamon Grand in Colombo.

The Forum, organized by the Commonwealth Business Council (CBC) in collaboration with the Sri Lankan government, is seen as a great opportunity for Sri Lanka to enlighten the world about the investment potentials in the island.

It is the premier business event in the Commonwealth bringing together Heads of Government, Ministers, and top business leaders from around the world and will be attended by over a thousand delegates, according to the CBC.

The main goal of the Forum is to enlighten the attendants from the Commonwealth countries as well as from other participating countries on the vast investment opportunities available in the island in various sectors and attract foreign direct investment from potential investors.

With this objective, the CBC jointly with the Board Investment (BOI) has identified investment opportunities which could be offered to potential foreign investors during the CBF.

Tourism and Leisure, Higher Education and Training, Agriculture and Fisheries, Health, Information Technology, Manufacturing and Agro-processing and Infrastructure including Aviation have been identified as key areas to promote foreign investment.

The Cabinet last week approved a proposal by Investment Promotion Minister Lakshman Yapa Abeywardena to proceed with the relevant activities of the CBF.

Sri Lanka has also organized the 'Reflection of Sri Lanka' a mega exposition to showcase the country's trade, tourism and investment potential to the global visitors who will be in the country to attend the Commonwealth Summit.

The four-day event is co-organized by the Ministry of Economic Development, the Ministry of Industry and Commerce and the Export Development Board (EDB) functioning under it, and joined by Sri Lanka Tourism, and the Board of Investment.

The 'Reflection of Sri Lanka' will be held from November 13 at the Jana Kala Kendraya (Folk Arts Center), in Battaramulla.

The exposition is aimed at illustrating Sri Lanka's capacity to easily integrate with global value chains. It will also highlight the country's logistic capabilities, high knowledge base, and its dedication to international compliance standards encasing trade, tourism and investment opportunities in them.

According to Minister of Industry and Commerce Rishad Bathiyutheen, 660 local and international exhibitors and more than 800 potential buyers from 31 countries have confirmed their participation in the event.


According to EDB, 579 local exhibitors in SME, tourism, trade and investment have come forward to enlist for Reflection's trade exposition. Another 81 Foreign companies as machinery and hi-tech equipment exhibitors from key hotspot markets such as China, India and Germany will participate.

Sri Lanka-China FTA not a blindsided rush- Minister Bathiudeen

nation.lk - 03/11/2013

Rishad Bathiudeen and CNCI delegation at the Ministry of Industry and Commerce on October 31. Gamini Gunasekara (new Chairman, CNCI) is seated second from left next to Minister Bathiudeen

Forthcoming FTA with China is not a blindsided move but is a process involving studies and even relevant stakeholder consultations. “We are still at initial study phase and we will not finalize product lists without consulting Lankan stakeholders such as various chambers and industries,” assured Minister of Industry and Commerce of Sri Lanka Rishad Bathiudeen to the oldest Industry Chamber in the country on October 31 in Colombo.

Minister Bathiudeen was addressing a delegation led by new Chairman, CNCI Gamini Gunasekara on October 31 at the Ministry of Industry and Commerce. Also taking part were Secretary, Ministry of Industry and Commerce Anura Siriwardena and additional secretaries, officials of Department of Commerce and CNCI officials.

Commenced in 1960, pioneering CNCI is the foremost service facilitator as well as the voice of the Industry. Currently, it consists of almost 300 members including SMEs. It is representative of all the industry sectors of Sri Lanka. Along with new Chairman Gunasekara, reps from such firms as Union Chemicals Lanka, Browns Group, EB Creasy, Central Industries, and Sinwa Holdings were meeting Minister Bathiudeen on October 31.

According to the Department of Commerce of Sri Lanka, the total trade turnover between Sri Lanka and China which stood at US $ 658.94 million in 2005 has increased by a massive 306% to $ 2676.13 million by 2012. In the corresponding period, exports to China increased by 286% to $108 million. This is an achievement considering the fact    that of the 50 Asian Countries only 8 including Sri Lanka were able to maintain a positive export growth to China since 2008. Latest statistics show that China has also entered the first 25 export    destinations for Sri Lankan products.


Having congratulated CNCI new Chairman Gunasekara on his new appointment and welcoming him, Minister Bathiudeen continued: “Lanka-China FTA is a major force to address our trade imbalance with China and increase our export volumes. We are still at initial study phase and we will not finalize product lists without consulting Lankan stakeholders such you and various other Chambers and industries. It is not a closed process but a transparent one. Once the initial studies are concluded, stakeholder meetings will commence. Of course, we will carefully craft market access on our side. Accordingly, we look forward to your valuable inputs. We will also take into account of the strengths of our trading partner, and product lists under other FTAs including Indo–Lanka, Lanka-Pakistan and APTA when we finalize the product lists in this regard.”

Tea export earnings reach Rs 142 b upto September

Daily News - 29/10/2013

Sri Lanka’s overall tea export earnings during the period January – September of the year has increased by Rs. 10.6 billion year on year (YoY) to record Rs. 141.9 billion, according to a Forbes and Walker report.

However, overall export volumes in the first nine months of the year has decreased by 1.4 million kg year on year to 234.5 million kg.

The total tea export earnings in August also increased to Rs. 123.1 billion while tea export earnings in September was Rs. 18.5 billion. The volumes decreased by 3.1 million kg to 28.7 million kg.

CIS, Iran, Turkey, Iraq, Syria, UAE, Kuwait, Japan, Jordan and Libya are currently the Sri Lanka’s top ten tea importers .

“In spite of the erratic weather conditions experienced in the high and medium elevations, the Black tea production for the month of September and for the cumulative period, January to September 2013 have recorded positive variances compared to 2012,” John Keells Tea Market Report said.

High grown production has gained by 18% whilst Medium Grown production has shown an increase of 14% for the month. Cumulatively too, the production of these two elevations have shown increases of 3.47% and 5.55% respectively. In contrary, Low grown production has recorded a significant negative variance of as much as 20% for the month.

Lanka moves up in global competitiveness

The Island - 28/10/2013

Rishad Bathiudeen (Minister of Industry and Commerce-left) in discussion with (HE) Cristian Barros (New Delhi based Ambassador of Chile accredited to Sri Lanka-right) during 25 October's presentation at Mt Lavinia Hotel.

Signalling a positive turn for its export diversification moves, Sri Lanka has notched itself up in the latest Global Competitiveness Index. And no less than 22 FTAs have helped Sri Lanka's topmost Southern hemispheric trading partner to lift itself off from a 'backyard GDP' and speed up to one of the best economies in South America today.

"I am pleased to say that Sri Lanka has improved to Rank 65 from its previous 68 in the Global Competitiveness Report 2013-2014. We stand just below Russian Federation in this ranking. The same index says that, Sri Lanka leads among SAARC countries on competitiveness levels" said Rishad Bathiudeen (Minister of Industry and Commerce of Sri Lanka) on 25 October in Mt. Lavinia.

Minister Bathiudeen was addressing the Seminar "From Agriculture to Agribusiness: The Pathway of Chile" last Friday (25) at Mount Lavinia Hotel. Joining the session were Sergio Rodriguez (Faculty of Agriculture and Forestry Engineering, University Catholic of Chile), and Mano Selvanathan (Honorary Consul of Chile in Sri Lanka). The session was attended by officials from EDB, private sector reps including Cargills, and academia and officials from Chile's Delhi Embassy.

Minister Bathiudeen revealed: "Chile is one of Sri Lanka's leading trade partners in the South American region. Bilateral trade between Chile and Sri Lanka stood at $ 45 Mn in 2012. Our top two exports to Chile are from agro sector- that is, tea and spices. The bi-lateral agreement, for agricultural trade, and cooperation, between both countries, signed in Colombo, in 2007, strengthened our historic links, further. We also see Chile as a platform to access other markets, in the South American region. We congratulate Chile for getting selected as the highest ranked, Latin American nation by the World Economic Forum in its latest, Global Competitiveness Report 2013-2014. This achievement is despite the challenging international markets. I am also pleased to say that, Sri Lanka too has improved to Rank 65 from its previous 68 in the same Index. We stand just below Russian Federation in this ranking. The same index says that, Sri Lanka leads among SAARC countries in competitiveness levels."


"Back in 1980s we were backward but after opening our economy and entering to many FTAs, our GDP grew steadily and now Chile is a global player. As a result, our exports grew and today we are the fifth largest exporter of wine in the world" said (HE) Cristian Barros, the New Delhi based Ambassador of Chile accredited to Sri Lanka, and added: "Sri Lanka - Chile trade cooperation goes back a long way despite being geographically distant. And of course, 90% of Chileans drink Ceylon Tea!"

Reflection of Sri Lanka

news.lk - 22/10/2013

A joint Trade, Tourism and Investment exhibition parallel to the Commonwealth Heads of Government Meeting (CHOGM) has been organized to be held from 13th to 17th November at the Janakala Kendraya in Battaramulla in Colombo under the title “Reflection of Sri Lanka”.

This exhibition has been jointly organized by the Ministries of Economic Development, Industry and Commerce and Investment Promotion.  More than 300 Sri Lankan exporters including 75 machinery exporters and 100 technology providers and 200 SMEs will showcase their products at this mega exhibition.


At a media conference held at the Centre for Media Development of the Information this morning, the Deputy Minister of Economic Development Mr. Susantha Punchinilame said that holding of Commonwealth Heads of Summit (CHOGM) in Sri Lanka will provide the opportunity for Heads of States, Business delegations and the international journalist to find the true situation about Sri Lanka at a time malicious propaganda are being carried out about the country by anti-national elements. He said that the Economic Development Ministry in collaboration with other Ministries has planned to get the maximum benefit out of the CHOGM.

Minister of Investment Promotion Mr. Lakshman Yapa Abeywardene addressing the media conference criticized the stance of the opposition about CHOGM despite it is being an event beneficial to the people of this country.  He said that when Sri Lanka was nominated as the host country the opposition claimed that Heads of States will not come to the country and even tried to prevent them coming for the Summit.  Finally when almost all the Heads of States have confirmed their participation, the Minister said that they are now criticizing about the expenditure.  He said that all infrastructure development being carried out is part of the ongoing development process since a long time and there is nothing new in these activities.

The Minister said that the Board of Investment is planning to get foreign investments increased to 10 million U.S.$ within the next 4 years as a result of the CHOGM. He said that the BOI will present 56 Investment Proposals to the Heads of States and the participants of the Business Forum.

Minister of Commerce and Industry Mr. Rishard Badiuddin said that CHOGM is a landmark event and the Reflection of Sri Lanka Exhibition will present more than 300 Sri Lankan products to the foreign visitors.  He said that more than 1,000 buyers are expected to attend CHOGM and its related events and the Exhibition has been organized to focus their attention on products and other facilities and investment potentials available in Sri Lanka.  He said that the CHOGM will crate the background for Sri Lanka to increase its exports to 20 Million US$ by 2020.


Details of the Exhibition arrangements that have been made by the Export Development Board and the Tourism Promotion Authority were made by the Chairman and Chief Executive of the Sri Lanka Export Development Board Mr. Bandula Egodade and the Chairman of the Sri Lanka Tourism Development Authority Mr. Bashwara Gunaratne.  The Secretary to the Ministry of Commerce and Industry Mr. Anura Siriwardene also spoke at the Media Conference.  The Secretary to the Ministry of Mass Media and Information Dr. Charita Herath and the Director General of the Government Information Depart Professor Ariyaratne Atugala also attended the Media Conference.

Exports turn around, Lanka enters CHOGM biz runway

Asian Tribune - 23/10/2013

Rishad Bathiudeen (Minister of Industry and Commerce-left), Lakshman Yapa Abeywardena (Minister of Investment Promotion-centre) and Susantha Punchinilame (Deputy Minister of Economic Development) watch a presentation on ‘Reflection of Sri Lanka’ during 22 October’s special presser held at the Ministry of Mass Media and Information, Colombo 5.

An eager Sri Lanka launched the business side of its forthcoming CHOGM -and announced its new export turnaround to a packed presser on 22 October. “I am happy to say that our exports from January to September this year shows an increase of 1.07%, in comparison to the same period in 2012. This shows that, having faced the international market challenges our exports are now gradually strengthening” said Rishad Bathiudeen, Minister of Industry and Commerce on 22 October.

Minister Bathiudeen was addressing the official media announcement and special presser on “Reflection of Sri Lanka” held at the Ministry of Mass Media and Information in Colombo 5 on 22 October. Along with Minister Bathiudeen, also present were Susantha Punchinilame (Deputy Minister of Economic Development), Lakshman Yapa Abeywardena (Minister of Investment Promotion), Anura Siriwardena (Secretary, Ministry of Industry and Commerce), Charitha Herath (Secretary, Ministry of Mass Media and Information), officials of Sri Lanka Tourism, BoI, Tea Board, EDB, Gem and Jewellery Authority, and Ministry of Economic Development.

“Reflection of Sri Lanka’ is an exposition showcasing the trade, tourism and investment potential of the country, is to be held in parallel to the CHOGM. ‘Reflection of Sri Lanka’ event will be held from 13 to 17 November. ‘Reflections of Sri Lanka’ is co-organized by, the Ministry of Economic Development, the Ministry of Industry and Commerce and the EDB functioning under it, joined by Sri Lanka Tourism, and The Board of Investment. Already 700 exhibitors and almost 1000 buyers have come forward to EDB to enlist for ‘Reflection of Sri Lanka.’

Speaking about new export growth, Minister Bathiudeen said: “I am happy to inform you today that we are seeing an export turnaround according to our latest export data. As of September our total export value for 2013 is recorded at, $ 7314 Mn. Our exports from, January to September this year therefore shows 1.07% increase in comparison to the same period in 2012. This shows that having faced the international market challenges our exports are now gradually strengthening. This latest export growth is helped by footwear exports growing by 85%, export crops such as spices, growing by 36.8%, diamonds, gems and jewelry exports, growing by 11.28%, fisheries exports, growing by 11%, and apparel exports, growing by 5.64%. Our strategic hub and logistical positioning is a major force in our development. The Free Trade Agreements that we have with India and Pakistan, on 8200 products, and more importantly our forthcoming FTA with China which is world’s largest consumer market are factors that international investors cannot find in many other emerging economies. Even our service sector is attractive for investments. The 2011 “A.T Kearney Global Services Location Index” places Sri Lanka at a respectable rank of 21 above Australia, France, and Portugal!”

Detailing the ‘Reflection’ event, Minister Bathiudeen revealed: “‘This event will be held in parallel to the forthcoming landmark event, the Commonwealth Heads of Government Meeting (CHOGM), as part of the leadership vision of HE the President Mahinda Rajapaksa. The CHOGM main event is represented by 54 Heads of States. The event will highlight the country’s capabilities, high knowledge base, and our dedication, to compliance standards together with tourism and investment opportunities. More importantly, this is an exposition hosting 700 exhibitors, displaying the best of Sri Lanka’s diverse products for export”.

“Anura Siriwardena (Secretary, Ministry of Industry and Commerce), addressing the event, said: “This is a rare but a very opportune moment to enhance the image of Sri Lanka to the international business. Almost 1000 buyers have already come forward to EDB to enlist for Reflection of Sri Lanka. We have even enlisted 100 technology providers. We are opening the event to the public for no less than three days – on 14, 15 and 17 November.”

Bandula Egodage, Chiarman/CEO of EDB, making a detailed presentation of Reflection of Sri Lanka, said: “Reflection gives the rare opportunity to our export community to meet international buyers in one location, right here in Sri Lanka. The EDB is using a multi-channel promotion strategy involving e-catalogues, e-brochures, web banners, press and electronic advertisements to engage the international buyers to our export products. Already 300 exporters, 700 exhibitors, 200 export oriented SMEs, 75 machinery exporters, 100 technology providers, to enlist for ‘Reflection of Sri Lanka’ – some of them being participants of Expo 2012 held in March 2012. There will also be exhibitor pavilions with sector branding. More importantly, many B2B sessions are planned with the visiting international business.”

Lakshman Yapa Abeywardena (Minister of Investment Promotion), addressing the event, said: “Our target is to source large and medium scale investors to Sri Lanka. We have ready information and procedures on 56 investment sectors in Sri Lanka awaiting the visiting international investors. We are not upgrading our infrastructure solely for the CHOGM-it’s part of our infrastructure development plan!”

Sri Lanka exports up 10.7-pct in August, imports down

Lanka Business Online - 21/10/2013

Sri Lanka's exports rose 10.7 percent to 917.8 million US dollars in August 2013 from a year earlier, and import dropped 7.7 percent to 1.6 billion US dollars, the Central Bank said.

Export earnings from tea grew 49.3 percent to 142.8 million US dollars and apparel exports barely grew 2.1 percent to 366.5 million US dollars. Rubber products export value dropped 8.0 percent to 77.7 million US dollars.

Imports fell 7.7 percent to 1.6 billion US dollars in August. Consumer goods rose 18.6 percent to 266.6 million US dollars and intermediate goods fell 5.7 percent to 1,017 million US dollars though fuel imports rose 7 percent to 531.3 million US dollars.

Investment goods plunged 25.7 percent to 330.5 million US dollars, with machinery and equipment falling 33 percent to 172.5 million US dollars and transport equipment falling 46 percent to 45.8 million US dollars.

Building material imports were up 13.8 percent to 908.8 million US dollars.

The trade deficit narrowed 24 percent to 698 million US dollars. Merchandise trade deficits occur when domestic economic agents earn money from outside the trade account (exports of goods) and spend the proceeds, triggering imports.

These include remittances (exports of labour), tourism, foreign borrowings (exports of debt) and even foreign direct investments (exports of investments).


In August remittances rose 16.3 percent to 570 million US dollars, earnings from tourism were up 34.7 percent to 110.2 million US dollars and inflows to the government was up 0.8 percent to 318 million US dollars.

‘FTA the biggest leap since ‘52 Rubber Rice pact’- Jianhua, China’s powerful int’l trade Minister

Asian Tribune - 19/10/2013

Rishad Bathiudeen (Minister of Industry and Commerce of Sri Lanka) and Yu Jianhua, the powerful Deputy International Trade Representative of the Ministry of Commerce of China view Minister Jianhua’s gift to Minister Bathiudeen (silk painting of the Forbidden City) on 17 October in Colombo.

The forthcoming China-Sri Lanka FTA is the biggest development in Sino-Lanka cooperation history since the 1952 Rubber-Rice Pact. And China is keen to see the groundwork on this FTA completed by December this year.

“My mission is to start the China-Sri Lanka FTA process. The forthcoming FTA is the biggest development in China-Sri Lanka bilateral cooperation since the historic 1952 Rubber Rice Pact between the two countries. We expect that the preparatory process of the forthcoming FTA to be completed by December this year. Then we can go to the next stage in 2014, ” said a confident Yu Jianhua, the powerful Deputy International Trade Representative of the Ministry of Commerce of China on 17 October in Colombo.

Jianhua was addressing Rishad Bathiudeen (Minister of Industry and Commerce of Sri Lanka) during his present on the occasion with Minister Bathiudeen were Anura Siriwardena (Secretary, Ministry of Industry and Commerce) and officials of the Department of Commerce.

Jianhua’s powerful portfolio covers the Chinese Department of International Trade & Economic Affairs, the Department of WTO Affairs (China WTO Notification and Inquiry Center), the Department of Asian Affairs, China International Center for Economic and Technical Exchanges, China Association of International Trade, and China Society for World Trade Organization Studies.

According to the Department of Commerce of Sri Lanka, the total trade turnover between Sri Lanka and China which stood at US $ 658.94 Mn in 2005 has increased by a massive 306% to $ 2676.13 Mn by 2012.

In the corresponding period, exports to China increased by 286% to $108 Mn. This is an achievement considering the fact that of the 50 Asian Countries only 8 -including Sri Lanka - were able to maintain a positive Export growth to China since 2008.

Latest statistics show that China has also entered the first 25 export destinations for Sri Lankan products.

“Sri Lanka is a priority country for my MOFCOM (China Ministry of Commerce). The FTA will not only upgrade trade levels between Sri Lanka and China but will also enhance trade skills of both countries as well. We will work diligently in our joint efforts. Before coming to Sri Lanka I looked at our trade with Sri Lanka very carefully in aspects such as tariffs, market access in China, diversifying of Sri Lanka’s exports, and overall enhancement of Sri Lanka’s export potentials to China. The FTA is not only for the sake of trade but something beyond-to materialize and institutionalize our strategic cooperation partnership as mandated by leaders of both countries. We are also encouraging Chinese firms to come and involve in Sri Lanka’s economic development. And my MOFCOM is thankful to Sri Lanka’s Ministry of Industry and Commerce for its ongoing support. I am also honoured to Chair this morning’s meeting with your Treasury which was a successful meeting with frank and friendly exchanges” Jianhua said.

Minister Bathiudeen, responding to Minister Jianhua, said: “This FTA is the most promising development in China-Sri Lanka trade relations, thanks to the initiative of the President Mahinda Rajapaksa. It will be stepping stone in our ongoing trade with China and we are very hopeful that with the implementation of the FTA, our trade with China will grow to a significant level. I am also pleased to hear that your meetings with Treasury have resulted in successful outcomes which are good news for our export and business communities. I invite Chinese investors for Joint Venture partnerships in textiles, mineral sands, graphite and mining as well as tourism sectors and access the huge South Asian market using our FTAs with India and Pakistan where more than 8000 export product lines are open for them upon 30% or more value addition.”

Secretary Siriwardena, apprising Minister Jianhua, said: “Our Treasury has also given the go-ahead for our FTA technical team on the FTA Tech teams of both sides has identified aspects and sectors of cooperation.”

During the in-depth discussions on 17 October noon, both Ministers also focused on such additional aspects of cooperation as Lankan rural sector /SME development and tourism with Chinese assistance.

EDB promotes design driven exports to key global buyers and retailers at SLDF 2013

Daily Mirror - 14/10/2013

The Sri Lanka Design Festival (SLDF) 2013, backed by local industries and the Sri Lankan Government, kicked off yesterday. The main objective of the festival, which is to promote design driven exports, is supported by Sri Lanka’s apex institute for driving exports, the Sri Lanka Export Development Board (EDB).
Together with EDB, SLDF 2013 is held under the theme of South Asia’s Creative Hub, encompassing Sri Lanka moving towards the regional hub status in design. Under this, SLDF will join hands with the EDB to highlight and draw international attention to the major export industries like fashion/apparel manufacturing as well as emerging sectors like contemporary craft.

EDB Chairman and Chief Executive Bandula Egodage stated that the SLDF aligns closely with EDB’s mission; “The EDB is keen to promote the Sri Lankan creative export industries such as apparel and upcoming sectors including contemporary craft, design and associated industries. We find it crucial for our exports to meet the needs of the global market and also to promote their ground-breaking initiatives to the world. We’re proud to recognise our design led industries and be part of establishing Sri Lanka as the South Asia’s Creative hub with SLDF 2013.”
This national design event supported by the EDB will include many industrial forums, sustainable summits, exhibitions and fashion shows. The event will bring global retailers, buyers and sourcing specialists from Europe, North America, Japan etc. visiting as special delegates.
The sustainable fashion summit held yesterday was attended by many international delegates hosted by the EDB who became an active part of discussing sustainability issues pertaining to the South Asian region and will become global ambassadors of Sri Lanka’s leadership towards regional commitment aimed at sustainability, which results in Sri Lanka positioning itself as a hub for sustainable trade and export.
The massive apparel agenda of the festival is also supported by EDB and includes the prestigious South Asian Apparel Leadership Forum, where over 200 local and international apparel big names and decision makers will discuss the future of South Asian apparel. With Sri Lanka earning its position as the fashion and apparel hub of the South Asian region and standing strong in its commitment to sustainability, value and invention, the South Asian Apparel Leadership Forum (SAALF) will play the pivotal role in deciding the future of this industry.
The SAALF aims to synthesise the global discourse with the intent of proposing solutions to the most demanding issues faced by the industry. This makes it a unique gathering where obstacles and doubts are discussed alongside strategies, plans and answers by supply chain partners, retailers, brand owners and the services sector engaging on equal terms to find solutions for a common purpose.
The EDB will actively be involved with the event and play a key role in enhancing Sri Lanka’s design led exports while contributing to the SLDF’s mission in creating more business opportunities for local designers. In addition to EDB, the Key stakeholder of SLDF 2013 along with the Government and Sri Lanka Apparel is also supported by many others. SLDF 2013’s principal partner is MAS holdings.

SLDF was founded by AOD International Design Campus. SLDF 2013 is also supported by Coats Thread (Official Thread Partner), GT Nexus (Official Software Partner), Textured Jersey (Contributing Partner), Standard Chartered Bank (Sustainable Fashion Summit Partner), British Council (Knowledge Partner), Mount Lavinia Hotel (Official Host), Cheryl Gooneratne (Official Hair & Makeup), WGSN (International Media Partner), JustStyle, Drapers as well as the partners Goethe Institut, Vista Advertising and Sunshine Travels and tours.

Lankan biz throng to EDB ‘Reflections’ expo at CHOGM

The Island - 10/10/2013

Lankan businesses of both SME and large scales are enthusiastically enlisting for the CHOGM event of EDB. "42 exhibitor firms from ornamental and handicraft sector, 40 from gem and jewelleries, and 19 from apparel sector are among them," said Ms Sujata Weerakoone, Director General of EDB on 08 October in Colombo.

Director General Weerakoone was addressing the special briefing session held at EDB auditorium on 08 October for exhibitors of forthcoming EDBs CHOGM exposition titled "Reflections of Sri Lanka-Exploring the Wonder of Asia". More than 250 reps from 184 Lankan businesses of SME and large scales from across the country were in attendance at EDB’s briefing session.

EDBs "Reflections of Sri Lanka- Exploring the Wonder of Asia" is scheduled to be held from 13 to 17 November at Janakala Kendraya, Battaramulla.

Director General Weerakoone briefed them in detail, on facilities provided to exhibitors, their duties and responsibilities as stallholders of CHOGM EDB "Reflections of Sri Lanka-Exploring the Wonder of Asia", criteria and expected standards of professionalism, expected levels of knowledge on their own products and services, display stall details and EDB contact points for each sector.