Lanka apparel exporters log on live to global Asycuda network

Asian Tribune - 01/08/2013

Rishad Bathiudeen (Minister of Industry and Commerce-centre) and Anura Siriwardena (Secretary, Ministry of Industry & Commerce-right) prepare to launch Sri Lanka’s log on to Asycuda World on 30 July at the Ministry of Industry & Commerce, Colombo.

Sri Lanka’s non-BoI apparel exporters have been now integrated to the crucial global network called Asycuda World (of UNCTAD). And having overcome the global recession, our apparel exports are now back on track-with good news. “Today, Sri Lanka’s apparel sector is entering into a new phase.

As a result of Sri Lanka’s non-BoI apparel manufacturers directly integrating into the online ‘Asycuda World’ system, we have now cleared a major bottleneck in our apparel exports” announced Rishad Bathiudeen, Minister of Industry and Commerce on 30 July in Colombo. Minister Bathiudeen was addressing the implementation event of the Asycuda World export documentation system for non-BoI apparel exporters held 30 July at the Ministry of Industry and Commerce.

Also present during the event were Anura Siriwardena (Secretary, Ministry of Industry and Commerce), officials from the Department of Customs, reps from various Chambers, and reps from the apparel exporter community, and textile officials of Minister Bathiudeen’s Ministry, among others. Integration of non-BoI apparel sector to Asycuda World network is expected to save more than 8200 man hours to them, annually.

“Our apparel exporters are joining a global network by UNCTAD in which 85 other countries are already part of” said Minister Bathiudeen, and added: “With our apparel’s entry to Asycuda World, we have now cleared a major bottleneck in our apparel exports. In that, with this integration, our non-BoI apparel manufacturers can successfully eliminate the present manual submission of custom documents (custdocs) and can directly submit custom declarations, to the customs and has become partially paperless. The result is that unnecessary travel time reduced, less bureaucracy, and less document processing by the non-BoI apparel exporters for their every single shipment. In fact, they can now submit customs declarations directly from their factories thereby paying better attention to their manufacturing and increasing apparel exports. Also, the Proposed Shipment Declaration (PSD) documents too will go online in the due course. I thank the Department of Customs for their on-going support in this regard.”

Speaking on apparel exports volumes, Minister Bathiudeen revealed: “I am pleased to say that Sri Lanka’s apparel exports are recovering from the impact of global recession thanks to the economic vision of HE the President Mahinda Rajapaksa. Overall garment exports which ‘include apparels and other woven fabrics’ too, have increased in first half of 2013 by 1.5% to $ 1,994 Mn, in comparison to 2012’s first half which stood at $ 1,964 Mn. This year’s ‘apparel only’ export value totalled $ 1,873 Mn, also at same levels of 2012 first half ‘apparel only’ exports at $ 1874 Mn. In fact, in 2012, our total apparel exports stood at a strong $ 3.77 Billion.”

“This is a great initiative” said MPT Cooray, Secretary General of Joint Apparel Association Forum (JAAF). “Cost is a major factor for us and lowering cost directly impacts our competitiveness. Reduction of transaction costs can help us in a great way. This electronic documentation we have been asking for, is an important step in this process. This new system does exactly that and also saves our time greatly, so that resource costs are also minimised. What we are trying to see in the eventuality is a total paperless system.”

Govt. grants tax incentives to port users, enterprises to boost exports

Daily Mirror - 31/07/2013

President Mahinda Rajapaksa who is also the country’s Finance Minister has declared Sri Lanka’s four main ports, Colombo, Hambantota, Trincomalee and Galle as ‘Free Ports’.

Additionally, the President declared the Mattala Rajapaksa International Airport, the Katunayake Export Processing Zone and Koggala Export Processing Zone as ‘Bonded Areas’.

The declaration entitles enterprises which are 65 percent foreign-owned and operating through the specified areas to wide tax exemptions including provisions under the Customs Ordinance and Exchange Control Act.


In the case of port users, with the exception of port handling, rent and lease charges, all additional levies will be waived.

The minimum investment for enterprises involved in import, minor processing and re-export stands at US$ 5 million with a further requirement of US$ 20 million in re-export turnover within a 5 year period.

Meanwhile, enterprises involved in export without manufacture or value addition in Sri Lanka, the management of finance supply chain and billing operations or front-end services to clients abroad were required to invest a minimum of US$ 1 million and achieve re-export revenues of US$ 10 per annum.

Enterprises involved in logistics services including bonded warehouses were given a US$ 3 million minimum investment and US$ 15 million p.a. minimum re-export revenue within a 5 year period.

While granting significant incentives to port users and enterprises, the Bonded Areas and Free Ports will deprive the government of significant revenue.

In that backdrop concerns have been raised as to whether or not gains generated through the fresh incentives are capable of offsetting extensive debt obligations tied to large scale developments embarked on.

Despite drawbacks, exports up in June: Mr. Bandula Egodage

Lanka Business Today - 30/07/2013

Despite the drawbacks of the anticipated economic recovery in the European Union and the United States not taking place and also the unsettled conditions in the Middle East, there has been a commendable increase in the country’s export earnings in June this year, said Bandula Egodage, Chairman and Chief Executive of the Sri Lanka Export Development Board .

Addressing the 16th annual general meeting of the Exporters’ Association of Sri Lanka as the guest of honour, Egodage said that according to provisional Customs data, Sri Lanka’s export earnings had recorded a commendable increase in June this year and exports to our key markets USA and EU, especially to the USA, had also shown a satisfactory increase in the same month.


“The export sector of Sri Lanka after showing strong growth in 2010 and 2011 experienced a setback in 2012 which continues to prevail even in this year. The setback is mainly due to the aggravated economic conditions in our key markets. The turmoil in these markets has lead to a drop in demand not only for our exports but also for exports of other developing and     emerging economies. Also there are supply side constraints in the domestic front,” said the EDB chief.

The anticipated economic recovery in EU and USA which absorb nearly 50% of our products had not taken place. According to international agencies such as the IMF it would take some time for growth to pick up in those regions. The unsettled conditions in the Middle East have further aggravated the situation, he added.

“The problems in our key markets suggest that we should focus on diversifying our markets to other regions. The Asian region comprising China and India have registered substantial economic growth. Accordingly, we are concentrating on diversifying our markets to these regions and other member countries in the BRICS group where the potential is high. This will be done while sustaining our market share in our key existing markets.

“We have already carried out promotional programmes in India and China and some more programmes are planned in the future to be carried out in these regions. We have also carried out market studies on Brazil and South Africa to ascertain the opportunities and barriers. The objective is to formulate suitable strategies to penetrate into these markets.

Expressing confidence that the Exporters’ Association could make a very positive contribution to these efforts using their close relationship with relevant stakeholders nationally and internationally, he said that utilizing those strong links the Exporters’ Association could facilitate to create healthy business relationships to enhance Sri Lanka’s exports.

The Exporters’ Association which represents about 80% of exporters in the country is the foremost body for exporters in Sri Lanka. The EDB highly appreciated the contribution of the Association towards the export development effort of the country. The export sector which contributes 17% to the GDP of the country, clearly played an important role in achieving that objective, said the EDB Chairman.

The EDB is the premier state organization entrusted with the task of developing and promoting exports from Sri Lanka. The EDB is geared towards promoting products and services of the country with the objective of making Sri Lanka the most sought after destination for global sourcing in identified product sectors.

Egodage also pointed out that the EDB strongly believed that the private/public partnership was very essential for the growth and the development of the sector. Private public partnership was not only essential for formulating successful export development strategies but also in implementing the same, he noted.

“Our approach is based on the principle that the public sector plays the facilitator role in developing the export sector while the exporters drive the sector,” said Egodage.

The public private partnership is also enshrined in the EDB Act. The enactment has provisions for establishment of Advisory Committees that are oriented towards the development and promotion of specific products as well as functional aspects of export trade.

In July this year the EDB had established 26 new Advisory Committees comprising 400 members. These members represent both the private and public sector. This will enable EDB to work together to identify the problems confronted by the export sector and find suitable solutions to such problems. The EDB has already scheduled the inaugural meetings of these committees and it expects the full participation of all members.

“Sri Lanka has today become an ideal location for international buyers, to source a wide range of highly quality products and services. But our competitive advantage has been deteriorating over the years due to a number of factors,” observed the EDB Chairman adding that the government had maintained inflation rate at a single digit level which was a positive factor.

“The energy cost is a major component in the cost structure. The government has offered tax concessions for industries adopting alternative energy sources. It is very important that we improve our productivity to regain and sustain our competitive advantage. The government has also offered tax incentives for upgrading technology and acquisition of new technology.

Improvement in technology is very essential to produce innovative products and reduce cost of production. This would lead to improved productivity and competitiveness,” said Egodage.

The EDB is also focusing on branding as a strategy to increase popularity of our products and enhance export earnings.

The strategic plan prepared by the EDB in consultation with the Advisory Committees have been updated to cover the period 2012 – 2016. It contains several programmes aimed at developing and adopting products and services to meet international market requirements, assisting exporters to identify new markets, facilitate supply chain efficiencies and promoting export oriented SMEs, etc.

Pointing out that the EDB intended to implement those programmes for the benefit of the export sector, Egodage said that, “I would request you to have a close rapport with the EDB to discuss any issues or constraints which require our attention.”

The Chairman and Chief Executive of Hayleys Group, Mohan Pandithage was the Chief Guest and the keynote speaker at the AGM. Rohan P, Daluwatte, Senior Manager - Operations & Logistics, Tea Tang Ltd assumed responsibility as Chairman for EASL whilst Sarada De Silva, Chairman and Managing Director of Intercom Limited was elected as 1st Vice Chairman and Fazal Mushin, Director – Export & Business Development, Link Natural Products (Pvt) Ltd was elected the 2nd Vice Chairman respectively. Mrs. Dawn Austin, Managing Director of Nidro Supply (Pvt) Ltd, stepped down as the chairperson of the EASL after serving in the committee in the said capacity for two years.

FACETS Sri Lanka to take centre stage for 23rd year

Lanka Business Today - 25/07/2013

FACETS Sri Lanka 2013, the International Gem and Jewellery Show that showcases hundreds of local and foreign exhibitors, will be held from August 29 to September 1 at the Sirimavo Bandaranaike Memorial Exhibition Centre. This year’s exhibition will comprise over 150 booths with a variety of gem and jewellery that include precious and semi-precious gems.

Organized by the Sri Lanka Gem and Jewellery Association (SLGJA), FACETS Sri Lanka enables all gem and jewellery traders to display market collections and also help create awareness about the importance of the gem and jewellery industry in Sri Lanka. Additionally, the event will consist a seminar on 'Gem and Jewellery in Sri Lanka' conducted by an expert panel of local and International panelists.

FACETS Sri Lanka 2013 encompasses individual exhibitor pavilions from Myanmar, The National Gem and Jewellery Authority (NGJA) and an SME pavilion from the Sri Lanka Export Development Board (EDB) . In addition, buyer delegations from USA, China, Russia and India will also be arriving. Stall holders from Singapore, Dubai, Myanmar and India will be participating at the event.

Speaking about the event, Juzar Adamaly, Chairman of FACETS Sri Lanka 2013 said, “Over the past 22 years, this exhibition has steadily grown to become a world-renowned show with active participation by Gem & Jewellery importers, wholesalers, manufacturers, retailers and collectors worldwide.”

He added that buyers looked forward to purchasing some of the world’s finest gems and jewellery directly from the source at this event. “This year we are expecting a record number of exhibitors and visitors as well,” Adamaly added. “With the industry looking at reaching US$ 1 Billion by the year 2015, this exhibition will continue to boost local sales and improve the brand of Sri Lankan Gem and Jewellery globally,” he further stated.

Established in 1984 as the Sri Lanka Gem Traders Association, and changed its name to Sri Lanka Gem & Jewellery Association in 2002, the Sri Lanka Gem and Jewellery Association (SLGJA) is the apex private sector organisation representing the interests of all industry sub-sectors from mining to manufacturing, wholesale and retail. SLGJA was amalgamated with three of the industry's top trade associations: Sri Lanka Jewellery Manufacturing Exporters Association, Sri Lanka Lapidarists and Exporters Association and Sri Lanka Jewellers and Gem Merchants Federation.

In the 2003 Budget, the Government of Sri Lanka declared SLGJA as the Apex industry body and charged it with a leadership role to formulate industry-level strategies to increase productivity and competitiveness. Since then, the Association works closely with the government's National Gem & Jewellery Authority and the Sri Lanka Export Development Board to advocate national policy and give input for the industry's regulatory framework. Currently, SLGJA has over 350 members who together account for over 75 percent of the country's gem and jewellery exports.

Sri Lanka InfoTech, firms in fast growth: industry chamber

Lanka Business Online - 25/07/2013

Sri Lanka's information technology and business process outsourcing sector has tripled exports and doubled the workforce in a little over five years, an industry official said.

The Sri Lanka Association of Software and Services Companies (SLASSCOM) say export revenues grew 182 percent to an estimated 600 million US dollars in 2013 from 213 million US dollars in 2007.
Total employment in the industry rose 100 percent to 67,000 in 2013 from 33,000 in 2007, the chamber's newly elected chairman Madu Ratnayake, from Virtusa, an information technology company said.


Companies in the sector also grew from 170 to 220 over the same period.

"As an industry, we made significant progress over the last five years," Ratnayake, said in a statement.

"This is tremendous growth from any stretch of imagination and is a result of a concerted effort from industry, academia, government and many other stakeholders."

Members of SLASSCOM make up most of the larger players in the export IT and BPO industry.

The industry has elected Mano Sekaram, chief executive of 99x Technologies, Indaka Raigama, chief executive of Navantis Sri Lanka and Virendra Perera, chief operation officer of Brandix Mercury Asia (Pvt) Ltd to its governing board for the current year of 2013/2014.

The industry is targeting a billion US dollars in revenues and 80,000 employed by 2016.

Rathnayake said that the industry also has significantly improved its global brand position over the last five years.


Sri Lanka has been ranked among the top 25 in the industry by US based A T Kearney, a consultancy firm while Gartern another American information technology research and advisory firm has also ranked the island in 30th place.

Morocco looking for more trade, JVS with Sri Lanka

Daily Mirror - 24/07/2013

Morocco has shown keen interest to boost trade and industrial cooperation with Sri Lanka.

“We need to expand our bilateral trade as well as our industrial cooperation. Investors from both countries can also enter into joint ventures in many sectors; we are strong in rubber and fishery -technologies that Sri Lanka can benefit from us considerably,” said Moroccan Ambassador to Sri Lanka, Larbi Reffouch during his recent meeting with Industry and Commerce Minister Rishad Bathiudeen at the Export Development Board.

“Morocco is the second biggest apparel supplier in the North African region, helped by no less than our bilateral FTA with USA. We are also located very close to EU markets, only eight miles away from Spain and just one hour by ferry to Southern Spain,” Reffouch noted.

According to the Department of Commerce, Sri Lanka exported tea, coir products and rubber based products to Morocco while spices and precious stones have been imported in small quantities to Sri Lanka from Morocco.

For the past few years, Sri Lanka has been reporting a favourable trade balance in its bilateral trade with Morocco, and in 2012, the total trade volume stood at $ 2.06 million of which $ 1.71 million consisted of exports.

Minister Bathiudeen welcoming the envoy’s suggestions said, our bilateral trade standing at $ 2 million shows huge unrealised trade potentials in future that we can jointly explore.

“The government has taken several initiatives in export market diversification and as a result, we see new market potential in your country. In fact, we are virgin markets for each other.

I also invite capable Moroccan investors to Sri Lanka’s apparel sector for synergies; we are well known around the world for our high quality and you are the second biggest apparel power in North Africa. On the other hand, we are closer to East Asian hubs.

I also invite a strong Moroccan delegation for the forthcoming CHOGM trade fair in Colombo.”

According to the World Economic Forum, Morocco is the best performing economy in North Africa in 2013. It’s also the biggest holder of phosphate reserves in the world.

‘Start making use of benefits given to industries’- Minister Rishad Bathiudeen

The Island - 19/07/2013

Rishad Bathiudeen (Minister of Industry & Commerce-centre) and Dr PB Jayasundara, (Secretary, Ministry of Finance and Planning-right) at the Forum on ‘Government Strategy for Industrial Development of Sri Lanka’ on 16 July held at the Ministry of Industry and Commerce, Colombo 3.

Industrialists should make the maximum use of the many facilities and benefits given to them by the government. "To develop our industry sector, the government has given many facilities to our industries and industrialists should start making maximum use of them. As the facilitators of industry development of Sri Lanka, we thank Dr PB Jayasundara, the Secretary, Ministry of Finance and Planning for directly meeting our industrialists on 16 July and successfully explaining and updating them on the government policies on industries" said Rishad Bathiudeen, Minister of Industry and Commerce on 16 July in Colombo, as quoted in a press communiqués issued by the ministry.

Minister Bathiudeen was acknowledging the speech and the assistance of Finance and Planning Secretary Dr Jayasundara at the Forum on ‘Government Strategy for Industrial Development of Sri Lanka’ held on 16 July at the Ministry of Industry and Commerce, Colombo 3. The Forum was attended by more than 95 leading exporters, Chamber representatives and industrialists of Sri Lanka. In addition to clearly portraying Secretary Jayasundara’s views to the crucial industry and export community, the two hour long, in-depth forum, also successfully resolved several sector specific issues raised by various industry sectoral reps present at the session.

"There are many tax concessions given to the industries. Also recent budgetary measures by HE the President Mahinda Rajapaksa has resulted in many new industrial initiatives that our industrialists should explore. Dr Jayasundara illustrated these to the Industrialists well" Minister Bathiudeen added. "The biggest obstacle we had for our development, the war, is over. In post conflict era, the biggest beneficiary is the private sector. There no more security worries, long transport delays in checkpoints and the additional security related insurance costs that you were once burdened with" said Dr PB Jayasundara, at the 16 July Forum.

Speaking on Taxes, Secretary Jayasundara said: "Under the vision of President Mahinda Rajapaksa, you all have got a bonus. He took a policy decision to rationalise tax. On the other hand, I ask exporters-if you can’t pay 12% export tax, then why export? Our taxes for SMEs are 12%, so is for the tourism sector, at 12%. You need to get your (export) products in good shape and make Sri Lanka the wonder of Asia."

Speaking on recent economic growth, Secretary Jayasundara said: "The government is criticised by some people on recent policy decisions but we took painful decisions and managed to keep the balance in the economic system. Also, our economy is strong. The Bank of Ceylon raised $ 500 Mn at short notice. And the Central Bank has done a first class job with the Rupee. For the fourth consecutive year, we have a declining budget deficit, last being 5.8%. The long term signal of this trend is that more ‘good money’ will come to you. And I am very optimistic about how Sri Lanka’s environment will turn out. But I am not sympathetic on change in rates of taxable computed profits. Taxes should be paid. Please help us to protect this tax regime since the government needs money to provide facilities. Countries will prosper, if tax rates prosper, and country will slide, if taxes fall."

Stressing that the export competitiveness, Secretary Jayasundara said: "We have to look for export markets elsewhere. The strategy of President Mahinda Rajapaksa is to ask for markets. ‘Don’t worry about competing there once you get there. First, ask for unrestricted market access from trade partners’ he said. We simply met Chinese and showed our product list, that’s all. China has responded to us very positively. Under Mahinda Chinthana we need to give a Sri Lanka brand identity in the sense that a few products are coming ONLY from Sri Lanka. This is the kind of vision that we all should share. You can continue to talk theories on exports as well as on export competitiveness. But as practitioners, you should understand that exports need not always be aimed at only lucrative markets. For example, there is a food import need in several African countries through the UN or WHO due to famine etc. Also, I believe that we need to deepen our economic ties with both India and Pakistan. These two markets provide unlimited potential if you are ready."

Anura Siriwardena, Secretary of Ministry of Industry and Commerce, said: "We need to appreciate the support from the Treasury for their on-going initiatives to uplift our industries. Without the assistance of the Treasury, our industrial development could lag behind."

Presidential Export Awards - 2010 & 2011

Tunisia invites Lankan apparel suppliers for a joint venture

news.lk - 13/07/2013

Tunisia, the fifth phosphate producer in the world and a high end, high speed apparel supplier to European fashion world is showing a new opening for Lankan apparel supply chains. And Tunisia is agog over Sri Lanka’s growth rates. “We are almost taken up by your strong GDP growth rates that exceed 6%. I congratulate Sri Lanka for its spectacular growth. When you specially compare with the world economic growth rate, it’s such a leading rate” said Tarek Azouz, Ambassador of Tunisia to Sri Lanka on Wednesday (10).

Azouz was addressing Rishad Bathiudeen Minister of Industry & Commerce during his courtesy call on Minister Bathiudeen at EDB premises in Colombo. Also present along with Minister Bathiudeen were Anura Siriwardena Secretary, Ministry of Industry and Commerce and Bandula Egodage Chairman, Export Development Board and officials from the Department of Commerce.

According to the Department of Commerce of Sri Lanka, bilateral trade between Sri Lanka and Tunisia does not show a growing trend or a regular pattern during the past five years. The overall trade transaction between the two countries is almost negligible, at less than one million Dollars ($ 0.64 Mn) in 2012. The main exports from Sri Lanka are rubber products, garments and tea.

“We are working towards getting down a Tunisian delegation to the forthcoming CHOGM sessions in Colombo. We get our Tea supplies from Sri Lanka and we prefer Ceylon Tea simply due to its high quality. Besides Algeria, we are the other supplier of Golden Deglet Noor dates to the world.

"We are now looking to enter into MoUs with various business and commerce chambers in Colombo so that bilateral trade linkages can kick-start through exchange of business delegations. We intend to show around our well-known technology, biology and pharmaceutical parks located in provinces to visiting Sri Lankan delegations.

"Due to our close proximity to EU markets and the trade arrangements with EU due to the EU-Tunisia Association Agreement, the high-end garments and apparel we export are manufactured based on the Just in Time (JiT) practices and within three days of their production, the apparels are available for sale in the counters of most European fashion retailers!

"Also, since Tunisia is a virgin market for Sri Lankan exporters, you can involve Tunisia as part of your export market diversification plan” said  Azouz and added:  “Tunisia is going through the first wave of liberalisation and privatisation process. We invite Sri Lankan apparel manufacturers to come into joint ventures with Tunisian apparel producers and use our close proximity to EU and our Just in Time apparel practices to increase their access to EU markets in such short (turnaround) times.”

In 1995, Tunisia became the first Mediterranean country to sign an Association Agreement with the EU. As a result of the agreement, a Free Trade Area (FTA) between EU and Tunisia came into being in 2008 for industrial products, which in turn, includes apparels.

Minister Bathiudeen, addressing  Azouz, said that with  almost negligible trade level between both countries, each other’s markets are virgin markets with vast development potential and therefore the unrealised trade potential is huge. The Minister further said that as fertiliser is being imported to Sri Lanka at high cost, Sri Lanka would welcome keen Tunisian investors and phosphate producers to Sri Lanka for ventures here to produce fertiliser at low costs.

Tunisian phosphate sector is ranked as the fifth largest in the overall global phosphate industry and Tunisia is also considered as a leading country in mineral fertiliser production.

Lankan business delegation in South Africa

Sunday Observer - 14/07/2013

The visit of a Sri Lankan business delegation to South Africa is a joint initiative of the Sri Lanka High Commission in Pretoria and the Sri Lanka Export Development Board (EDB) and Tea Board for the participation of Sri Lankan exporters at the SAITEX 2013 International Trade fair held at the Gallagher Convention Centre in Midrand from June 30 to July 2.

Leading Sri Lankan companies - DSI Tyres, Kelani Cables, Rathna Cinnamon Producers and Exporters, Queens Workwear, Nature's Secrets and Lalan Rubber - exhibited at the Sri Lanka pavilion while Basilur Tea Exporters and Sunshine Tea Exporters were at the Tea Board pavilion at the exhibition.


The High Commission of Sri Lanka organised a trade seminar in collaboration with the City of Johannesburg named 'Trade seminar -Joburg Vs Sri Lanka' on July 1, attracting more than 100 companies at the auditorium of the same venne.

Commercial Secretary, Sri Lanka High Commission, Nalika Kodikara made a comprehensive presentation, inviting leading companies to participate at the Commonwealth Business Forum to be held in Sri Lanka in November.

A business matchmaking program was organised by the High Commission of Sri Lanka in collaboration with the Cape Town Chamber of Commerce with the participation of members of the Cape Chamber and the ANC Progressive Business Forum (ANC-PBF). The session was chaired by the Co-Convenor of the ANC - PBF Renier Schoeman and past president of the Chamber Joe Emeran and the Commercial Secretary of the High Commission. Participation at the SAITEX international trade fair would help companies to strengthen their business relations with existing buyers and also to find new buyers.

Lanka rejuvenates a crucial export setup

news.lk - 12/07/2013

Rishad Bathiudeen (Minister of Industry & Commerce) addresses the ‘Soft launch of Expo 2014 and  appointment of members to the 26 Advisory Committees of the EDB’ event held at Kingsbury Hotel,  Colombo on 11 July.

“Today is an important day in Sri Lanka’s exports sector. We are appointing the Advisory Committees of Sri Lanka’s premier national exports organization, the EDB, and also launching the next international mega event in our exports calendar which is the ‘EXPO 2014” said Minister Bathiudeen, and added: “The global markets continue to show changing demand patterns, not only due to the recent global economic crisis but also as a result of long term fundamental changes in overall global consumption and shifting world market patterns. For example, 66% of the world market and population growth in the next century is expected to come from Africa."

Rishad Bathiudeen (Minister of Industry & Commerce-centre) launches Expo 2014 mega fair at the ‘Soft launch of Expo 2014 and appointment of members to the Advisory Committees’ event held at Kingsbury Hotel

Minister Bathiudeen was addressing the soft launch of Expo 2014 and appointment of members to the 26 Advisory Committees,at the EDB event held at Kingsbury Hotel, Colombo, Thursday (11).

“Export sector contributes 17% to the GDP. However, this sector has become more and more challenging for us. Therefore it is now time that we enhance our on-going market and product diversification even further. About 54% of our exports are still concentrated on EU and NAFTA markets” said Rishad Bathiudeen, Minister of Industry and Commerce of Sri Lanka.

The Minister observed that the rapid growth in China’s household consumption and their growing use of raw material has enabled it to become a major destination for our exports and in fact, the BRICS grouping is a promising new destination, for us. Therefore it is now time, that we enhance, our on-going market, and product diversification efforts, even further, said Minister Bathiudeen.  About 54% of our exports, are still concentrated, on EU and NAFTA markets.

Minister Bathiudeen pointed out that there are two segments with strong potential to become export growth drivers in the coming years. These two segments are Sri Lanka's high tech exports and export of services and they need even closer attention when formulating  future export strategies. Even though Sri Lanka's high tech and value added exports are only 1.5% of total exports, The Minister said the recent budgetary measures to upgrade our research and development infrastructure with the cooperation of private sector, is a positive step in this regard.

Sri Lanka's export sector after witnessing, two years of rapid growth in 2010 & 2011 experienced a setback in 2012 similar to many other countries in the region. However  despite these temporary setbacks,  export goal of US $ 20 Billion by 2020, under the committed economic vision of the President Mahinda Rajapaksa remains the same.

Rishad Bathiudeen (Minister of Industry & Commerce) hands over a letter of appointment to one of the 400 members appointed to the 26 Advisory Committees under the EDB at the ‘Soft launch of Expo 2014 and appointment of members to the Advisory Committees’ event held at Kingsbury Hotel, Colombo on 11 July, as Anura Siriwardena (Secretary, Ministry of Industry and Commerce-second from left) and Bandula Egodage (Chairman of EDB, far right) look on.

Banduala Egodage, Chairman of EDB, addressing the event, said:  “Setting up this Advisory Committee is a statutory requirement. This is one of the biggest advisory committees to be appointed under any single institution in Sri Lanka, with almost 400 brains in just one committee. I urge the fullest cooperation of the 400 members for us to get out of this export slump situation.”

The second in the revived international export fair in Colombo, Expo 2014 has now been tentatively scheduled for August 2014. It will be followed by the forthcoming CHOGM trade fair in November in Colombo

Sri Lanka has opportunities in export food processing

Lanka Business Online

Sri Lanka has to build capacity opportunities to be a processed food exporter, taking a cue from developments that occurred in East Asian nations such as Thailand and Vietnam, an Australia-based economist said.

Prema-chandra Athukorale, professor of economics at Australian National University said in Thailand 23 percent of non-oil exports were processed foods and in Vietnam it was 27 percent and in Sri Lanka only 5.0 percent.
He said global food habits were changing and there were opportunities for Asia food exporters.


"When I first went to Australia it was sometimes difficult to get rice," he told an annual economic policy summit organized by Sri Lanka's Ceylon Chamber of Commerce.

"But now there is an Asian section in every supermarket, and white Australians buy them."

In Sri Lanka the Eastern costs which had emerged from a 30-year war presented opportunities for aquaculture, he said.

At the moment Vietnam is helping Sri Lanka prepare a master plan for aquaculture and is also transferring technology to the island through a series of pilot projects.

Athukorale said exports of foods tied in with the current Sri Lanka administrations aim of developing agriculture.

Athukorale said industries should have an export orientation and be competitive while tariff protection import substitution industries tended to fail and has also failed in Sri Lanka in the past.

Free trade advocates say tariff protected industries go through the motions of production while fleecing and oppressing the poorest in society but make profits by arbitrating the tax differential.

Athukorale said it was helpful to have links and investments from the exported country especially due to tight food and sanitary standards imposed by developed nations.
In the case of Australia he said Mitsui, a big Japanese conglomerate that had an abattoir in Australia had helped get over potential problems and import restrictions, he said.

Analysts say Sri Lanka tea growing and manufacturing industry also grew in the 1800s with foreign direct investment mainly from the UK as the British developed a taste first for coffee and then for tea.

It is not clear whether made tea was considered a processed tea.

Athukorale said in East Asia there was a strong link with foreign direct investments and exports and a conducive environment was needed for investors to come.

Govt. says new standards for Ceylon Cinnamon to boost Sri Lanka’s exports

Daily Mirror - 10/07/2013
By Ashwin Hemmathagama

New regulations were tabled in Parliament yesterday to standardize and improve the quality of the centuries old cinnamon industry in Sri Lanka by shifting the focus from popular export crops – tea, coconut, and rubber – to the value added cinnamon in the international market.

These regulations published in the Gazette Extraordinary 1813/15, prohibits the export of crushed or ground cinnamon, cinnamon organic, cinnamon quills cut, cinnamon in retail packs of 1kg or less, cinnamon featherings, and cinnamon chips, or cinnamon in any other form being exported without the SLS81:2010 certification specified for Ceylon cinnamon.

According to the new regulation, the Government expects all cinnamon exporters to furnish a certificate of conformity with the Sri Lanka Standard stipulated for cinnamon issued by either laboratory accredited for testing of the particular article or a laboratory recognized by the Sri Lanka Standards Institution in addition to the certificate of clearance issued by the Director General of Sri Lanka Standards Institution.

According to Minister of International Monetary Co-operation and Deputy Minister of Finance and Planning Dr. Sarath Amunugama, the new regulations will enable the authorities to develop the brand “Sri Lanka cinnamon”, which will be of high quality and able to compete in global markets against the substandard cassia.

“Cinnamon is what brought foreign invaders – the Portuguese, Dutch, and English to Sri Lanka. This traditional cinnamon trade survived for several centuries and now at the verge of collapse unless its quality improves and a brand is developed,” the Deputy Minister said.

Amunugama said that equal recognition should be given to cinnamon industry, which employs over 350,000 families. “We receive an annual income of US$100 million from the cinnamon sector where exports have reached 13,000MT. However, the competition is getting tense despite the economic downturn in Europe. As a result, the demand has reduced and substandard cinnamon products made out of cassia have emerged,” he explained.

The new regulations would enable Sri Lanka to brand Cinnamon grown in this country as ‘Sri Lanka Cinnamon’ similar to the branding of Ceylon Tea. “We will also train the families engaged in cinnamon trade and arm them with the latest technology. We need to stop low quality cinnamon exports,” said Minister Dr.Amunugama moving the regulations under the Imports and Exports (Control) Act.

Prime Minister and Minister of Buddha Sasana and Religious Affairs D.M. Jayaratne who approved the Government move to standardize the cinnamon trade suggested exporting indigenous fruits and vegetables. According to Prime Minister, exporting fruits and vegetables “especially to China will help to reduce the widening trade deficit”.

Gems and jewellery sector records strong growth

Sunday Observer - 07/07/2013
By Sanjeevi Jayasuriya

The country’s gem and jewellery industry continues its growth momentum with increased export revenue for the first six months of 2013.“We could observe a steady growth in export revenue generation. The growth momentum in the sector augurs well for related industries where its contribution to the national economy becoming more significant,” said Chairman and CEO National Gem and Jewellery Authority, Amitha Gamage.

“We are confident that if this growth momentum continues the gem, jewellery and diamond sector will reach $ one billion by 2016, he said.

The NGJA being the Government body mandated to develop, regulate and promote the gem and jewellery industry in Sri Lanka has organised Sri Lankan Pavilions in several international gem and jewellery exhibitions in China, USA and Singapore.

These countries have been identified as booming markets for gem and jewellery.

Gamage said that the NGJA representative at the annual conference of International Coloured Gemstone Association (ICA) spoke on the importance of organising ICA 2015 Congress in Sri Lanka, an important gem bearing country.

He said that by hosting ICA Congress 2015 in Sri Lanka, the NGJA hopes to gain immense publicity for Sri Lankan gems, traditional and modern Sri Lankan craftsmanship, highly skilled gem cutting facility and the hospitality of Sri Lankans. The event could help build a strong image of the country.NGJA organised the Sri Lanka Pavilion at the JCK Las Vegas Show, one of the biggest gem and jewellery exhibitions in the international event calendar from May 31 to June 2. The NGJA Pavilion had eight Sri Lankan gem trading companies, where there was demand for jewellery made out of precious metals such as gold, platinum and base metals. Therefore, the NGJA plans to further promote Sri Lankan jewellery manufacturers at the JCK Las Vegas 2014 exhibition.

Gamage said that NGJA will encourage the gem and jewellery trading community to venture into new markets such as Poland, Russia, Ukraine and will organise ‘Sri Lanka Pavilions’ at two gem and jewellery exhibitions in China this year. Exhibitions of this nature will the pave way for exposure and opportunities for the gem and jewellery industry to introduce world-renowned brands in Sri Lanka for backward integration keeping in line with the Government’s development strategy which emphasises value addition to make products globally competitive.

Gem and jewellery exports increase

Daily News - 05/07/2013

• Gemstone export revenue tops Rs 1,635 million
• Jewellery exports record Rs 301 million

by Sumanachandra Ariyawansa

Eager buyers at the Singapore International gem and jewellery show which was opened at the Marina Bay Sands Hotel ,Singapore yesterday. The show will be held till July7

Sri Lanka’s gem, diamond and jewellery export sector has recorded an overall growth of more than 50 percent as at end of 2012. Revenue has increased significantly in comparison to the corresponding year’s figure of Rs.24,459 million in 2011.Therefore, Sri Lanka could be promoted as a gem and jewellery hub in the region, a senior official said.

The export of gemstones brought in revenue of Rs 1,635 million recording a 39 percent growth while jewellery exports generated revenue of Rs 301 million showing an impressive 121 percent growth. The service cutting industry showed signs of recovery by recording an Rs 26 million income with a 50 percent growth.

“Sri Lanka is exporting gems to several countries which have shown a keen interest in fine quality blue sapphires of large sizes and the prices fetched by unheated sapphires were unprecedented.

Therefore participating for an event like “Singapore International Jewellery Show” for the seventh consecutive year would help to promote our gem and jewellery products internationally” National Gem and Jewellery Authority (NGJA) Director General R.M.Janaka Udaya Kumara Daily News Business. Sri Lanka retains a world market position as a producer of fine quality gems and has some of the greatest varieties of gems in the world.

Therefore, Singapore being the fourth largest importer of Sri Lankan gems has given the country partner status at this exhibition from its inception, which is one of the big opportunities to strengthen trade links, he said.

In the export market promotion programme this year, the NGJA intends to organize “Sri Lankan Pavilions” in a number of international gem and jewellery events including this event “Gem and Jewellery Show Singapore 2013.In this event we got a very spacious pavilion to exhibit our gem and jewellery, he said.

According to Janaka Udaya Kumara ten countries and 200 exhibitors are participating in the event, which is a good opportunity for Sri Lanka to enhance trade links and promote our gem and jewellery in order to position Sri Lanka as a gem hub in the region. Further, the government has identified the gem and jewellery industry as one of the thrust areas of development, which has given unprecedented incentives to the sector through the last budget, which helps the country to promote itself as a hub in the region in future, he said.

The Director General said with this development they are now in the process of promoting eco friendly mining practices among local gem miners, which was the need of the hour to promote this sector in a more sustainable way.

The U.S.A., Thailand, Hong Kong, Switzerland, Italy, France, India, Malaysia, Singapore, China, Canada and Germany are among the top export destinations for Sri Lankan gems and Jewellery.

Today we are promoting our products in world class trade fairs and exhibitions held in many countries such as the U.S.A., Japan, Hong Kong, Switzerland, Thailand, Malaysia, Singapore, China, India and France, he said.

There will be several mega events such as the Jewellery Shanghai Show, Hyderabad Jewellery, Pearl and Gem Fair, Hong Kong International Jewellery Show, Malaysia International Jewelex, China International Jewellery Show (Beijing) and China International Gold, Jewllery and Gem Fair (Shanghai) during this year.

EDB to develop medical, health tourism

Daily News - 02/07/2013

The Export Development Board (EDB) has identified the potential growth of global Medical Tourism sector and capability of Sri Lankan medical and health tourism providers. EDB has requested assistance of International Trade Center (ITC) to develop this sector.

Accordingly ITC decided to have a case study in Sri Lanka health /medical tourism sector to access the capabilities of Sri Lanka in this sector and to benchmark Sri Lankan capabilities compared to the global Medical Tourism Industry.

An ITC delegation comprising an ITC official and an ITC consultant on Medical Tourism sector visited Sri Lanka

During the visit, they met top level representatives from hospitals practicing western medicine along with the officials from the Ministry of Health and other western medicine sector stakeholders.

Also they met the representatives of Ministry of Indigenous Medicine along with top level representatives from Ayurveda health resorts.

They also visited a cross section of the private hospitals and Ayurveda resorts to get a firsthand experience.