Footwear & Leather Fair from 7 to 9 February at BMICH

Daily Mirror - 30/01/2014

The Sri Lanka Export Development Board (EDB) together with the Ministry of Industry & Commerce, Industrial Development Board and the Sri Lanka Footwear and Leather Products Manufacturers Association (SLFLPMA) will provide a platform for Sri Lankan footwear and leather product exporters, manufacturers and SMEs’ to showcase their talents and capabilities locally and globally by organising the 6th Footwear and leather Fair 2014 from 7 to 9 February 2014.

Footwear and Leather industry contributes a considerable share to the country’s exports earning and shown a remarkable growth during this year. In addition, footwear manufacturers cater to more than 50% of the local market requirement, minimising imports of such items.

It is said that 150 operations are necessary to produce a pair of shoes. The growth of this labour intensive industry will widen the employment opportunities for youth in the country too.
The internationally acclaimed recognition of the Sri Lanka apparel industry, highly skilled and trainable work force, and the availability and easy access to natural leather in south India are considered favourable factors for the growth of the industry.

The Footwear & Leather Fair initiated by the EDB in the year 2007 with the objective of creating and enhancing the image of the industry locally and globally. In addition to showcase the country’s entire footwear and leather products range under one roof; the exhibition provides an opportunity for up and coming designers to showcase their talents by participating at the design competition.
The growing enthusiasm of participants to participate in this competition helped to add innovative and novelty items to the Sri Lankan Footwear and Leather products basket.

This years’ fair will have more than 220 stalls exhibiting a wide range of footwear, leather products, travel goods, raw materials, machinery, components and accessories. The award ceremony of the design competition will also be held as a special event of the fair on 9 February at 4 p.m. and a fashion show organised parallel to the fair will be held on 8 February at 7 p.m. at the fair venue.

The fair provides a good opportunity for the young generation to learn and observe the progress made by this sector and to consider them to join as employees or entrepreneurs in the future. In addition, the fair allows public to purchase export quality footwear and leather products at a reasonable price too.

Apparel exports top US$ 4.3 bn in 2013

Daily News - 31/01/2014
By Diresh Jayasuriya

Apparel exports in 2013 have reached an all time record of US$ 4.3 billion compared with US$ 3.8 billion in 2012," said Joint Apparel Association Forum (JAAF) acting Chairman Noel Priyatilleke.

Speaking at the JAFF 10th Annual General Meeting he said that nevertheless, the challenge ahead of us is not only to sustain this business but also to grow because the Government expects Sri Lankan apparel, tea and rubber to fetch a turnover of US$ 10 billion by 2016 and Sri Lankan apparel has also to be among the first ten apparel exporter countriesof the world by 2020.

The time has come for us to explore all possible avenues to reach this target and I do believe that Sri Lankan apparel can achieve it, because of the visionary leadership given by the stalwarts of our industry coupled with the business friendly environment created by our Government. Let us get together to perform this task.

"The introduction of Gazette Notification which directed that all Shipping Service Providers shall ensure that a Bill of Lading clearly indicates whether the consignment is freight collect or freight pre-paid on a request made by us was a great achievement.

"This could not be achieved for more than a decade and a half".

"Sri Lankan entities can now place orders in other low cost bases in the region, bring back to Sri Lanka, add value and export. Multi country consolidation which is offering enormous opportunities is also now possible." "We have continuously included the subject of market diversification and made representations to the Government to explore the possibilities of obtaining preferential treatment from China, India, Japan, Russia and Brazil.

The proposed FTA with China would help the industry in a great way."

"If not for the introduction of the suspended VAT scheme the complexities attributed to VAT administration system including refund mechanism and double digit rate, the apparel industry could not have been able to perform.

"I believe a transparent single digit VAT system is an absolute necessity for the economy to grow."

"JAAF believes that the completed reform agenda supported by the international market penetration activities, in particular conclusion of China Free Trade Agreement and other targeted non traditional markets, Sri Lanka will rank as the best among sourcing countries in this part of the world."

"We are confident that with all these reforms and trade facilitation measures, we should be able to reach the target of US$ 6 billion in 2020."

Dr. P. B. Jayasundara, Secretary to the Treasury, Ministry of Finance and Planning and Economic Development was the chief guest at the event. 

Cinnamon To The World

' Cinnamon To The World' event streaming live on "www.cinnamontotheworld.com/events.php" at 3.00 p.m. Sri Lankan Time

Biz delegation from Hong Kong to visit SL in April

Lanka Business Today - 25/01/2014

In a new breakthrough after a year from the first ever successful Hong Kong-Sri Lanka biz MoU in 2013, some Hong Kong based manufacturers are now looking to move factories to Sri Lanka and a high powered biz delegation from HK is now scheduled to arrive in early April.

”The first ever business development MoU between Hong Kong Trade Development Council (HKTDC) and the Export Development Board (EDB) was a tremendous success and some Hong Kong based manufacturers are looking to move factories to Sri Lanka. A delegation led by none other than the Deputy Executive Director of HKTDC Ms Margaret Fong is scheduled to arrive in early April for the next level in this process. Some HK manufacturers have already expressed interest to set up production in Sri Lanka, especially in garment and food, as well as handicraft and sunshine industries. Tentatively, there will be 20 delegates from 15 companies in the forthcoming delegation. We are also helping some Sri Lankan exporters to find HK markets and importers,” said Sunny Chau, Regional Manager, HKTDC Southeast Asia and India, on January 21 in Colombo.

Chau, on a three-day visit to Colombo, was leading a three-member delegation for preparation-cum-awareness sessions for interested Sri Lankan business on the forthcoming early April B2B sessions between Hong Kong’s HKTDC delegation and Sri Lankan businesses.

April’s delegation leader, HKTDC’s Ms Margaret Fong, has wide experience in international trade. She served as the Deputy Director-General in the Washington DC Economic & Trade Office of the Hong Kong Government.

Total bilateral trade between China and Sri Lanka in 2012 stood at US$ 2,676 million of which US$ 2,568 million consisted of imports to Sri Lanka. FDIs (Private investment inflows, equity, profit and inter-corporates excluding mega project funding and loans for them) from China to Sri Lanka in 2012 totalled US$ 185 million. Hong Kong is ‘the most globalized economy’ in terms of trade, according to Earnst & Young. HK is also the gateway to the complex Chinese marketplace.

More than 800,000 metric tons of fruits, veggies by Lanka

The Island - 24/01/2014 
By Don Asoka Wijewardena

Sri Lanka produces more than 800,000 metric tons of fresh fruit and vegetables annually while around 90 per cent of her processed food is being exported to the European Union market.

In addition, Sri Lanka is utilizing improved techniques in crop cultivation, especially under poly tunnels. Optimum input application, pest and disease control, post-harvest management and quality packaging are other features of our food production sector, Export Development Board Directoress Jeevani Siriwardena said.She was addressing joint talks between Maldives and Sri Lankan business delegations earlier this week.

Siriwardena added that Sri Lanka had received quality certificates, such as, ISO 22000,ISO 9001: 2000,ISO 14001, Halal, Kosher, SKAL, BRC, FDA and Global GAP for export products in the form of footwear and leather, sea food, ceramics, coir products, ornamental fish, fruits and vegetables, boat/ship building, plastic products, horticulture, activated carbon, printing, toys and gifts, wooden products and electrical and electronics goods.

Exports surge by 6.2% in 2013

The Island - 23/01/2014

Rishad Bathiudeen Minister of Industry and Commerce- (right) and Bandula Egodage Chairman-EDB, (left) upbeat on latest good news.

Sri Lanka’s exports, which suffered a YoY decline of 7% in 2012, returned with a bang in 2013 posting a 6.2% surge. "I and EDB thank our exporters for their commitment for this strong performance" a Ministry of Industry and Commerce press release quoted Minister of Industry and Commerce Rishad Bathiudeen as saying.

The release adds: ‘Minister Bathiudeen was acknowledging the latest provisional annual export performance numbers briefed to him by his officials on January 22 in Colombo.

‘According to the latest provisional figures by the EDB, 2013 cumulative exports earnings stood at $ 10379.94 Mn, growing by 6.2% from 2012’s annual export revenues of $ 9773.63 Mn.

‘High performing export ‘drivers’ were agriculture products, apparels, ‘other export crops’, and even industrial products, thereby contributing to the turnaround.

‘Surging along were the tea and fisheries products sectors.

‘On a YoY basis from ’12 to ‘13, agriculture products grew by 10.3% to $ 2479.94 Mn, apparels by 13.31% to $4492.20 Mn, other export crops up by 42.9% to $ 521.43 Mn, and industrial products rose by 4.91% to $ 7618.20 Mn.

‘Tea surged YoY by 9.22% to $1526.75 Mn and fisheries products rose by 19.14% to $ 244.43 Mn.

‘While rubber, unclassified products, petroleum, gems and jewellery showed a slight decline, manufacturing and coconuts showed very minute percentages of decline while largely staying stable.

Lanka coir now used by Mercedes Benz -EDB

The Island - 23/01/2014

Sri Lankan coir has grabbed the attention of a leading global automotive firm. "I am happy to say that our coir is now used by Mercedes Benz. This is the first time we learn that our coir have gone to such high levels" said a pleased Sujatha Weerakoone, Director General of EDB on January 22.

EDB Director General Weerakoone was addressing "Exporting to Korea" event, organised and held at the EDB. The session was honoured by a 16 member strong South Korean undergrad delegation led by Prof. Bell C.J. Park of Myongji University, South Korea, who made a presentation. Also in attendance were more than 100 reps from various Sri Lankan exporters.

"Korea is the 15th largest economy in the world with a high per capita exceeding $ 27900. At the moment our total trade with South Korea is around $ 380 Mn" said EDB Director General Weerakoone, and added: "Sri Lanka’s share of imports to South Korea are very low but we have great opportunities-their well developed automotives need our high quality rubber and coir. I am happy to say that our coir is now used by Mercedes Benz. This is the first time we learn that our coir have gone to such high levels. Also there are potentials for our apparels and electric and electronic parts sector in the Korean market."

In 2021, Sri Lanka exported $2.2 Mn of coir pads and $ 8.1 Mn of coir ropes. Germany ranked as the third largest buyer of Lankan coir pads. In 2012, total trade with South Korea stood at $366 Mn. Apparel was the dominant export item from Sri Lanka, taking 30% of total exports earnings from South Korea in 2012. 11% of Sri Lanka’s exports to South Korea in 2012 were coir fiber, ranking third export product to South Korea behind apparel and industrial and surgical gloves. 

Korean University Students on Sri Lanka Tour

Asian Tribune - 23/01/2014

Myongji University in Korea in collaboration with the Korea International Cooperation Agency (KOICA) and the Embassy of Sri Lanka in Korea, will be sending a student delegation to Sri Lanka from 20th – 27th January, 2014.

The delegation consists of Professor Bell J.C. Park, a faculty member of the International Trade Department of the Business Administration College at Myognji University, and 15 university students whose major interest is international trade business.

The objective of the visit is to promote greater understanding through enhancement of economic, educational, technical and cultural cooperation between students of Korea and Sri Lanka. On the first day of their stay in Sri Lanka, the delegation will visit Sri Lanka’s KOICA and KOTRA offices as courtesy calls for the country representatives. Additionally, the Korean students will get an opportunity to visit two of Sri Lanka’s universities, University of Colombo and University of Peradeniya, for the purpose of exchanging cultural experiences and discussing the possibility of signing a Memorandum of Understanding between the Sri Lankan universities and Myognji University.

The Export Development Board of Sri Lanka has arranged an interactive session with its member companies along with a progamme to educate the Korean students about exportable products of Sri Lanka. In addition to meeting the Export Development Board, the delegation will visit the Ceylon Chamber of Commerce and the National Chamber of Commerce as an opportunity to build a stronger relationship with the Sri Lankan chambers.

Prior to their departure to Sri Lanka, the delegation met the Sri Lankan Ambassador to South Korea, Mr. Tissa Wijeratne,at the Sri Lanka Embassy in Seoul.

Maldives-Sri Lanka, 'a unique friendship'

The Island - 23/01/2014
By Don Asoka Wijewardena

Head of the Maldivian delegation Quasim Ibrahim addressing business entrepreneurs at the Maldives-Sri Lanka interactive business session on Tuesday said that the Maldives and Sri Lanka had been enjoying a unique friendship born of traditional ties in ethnicity, language and culture. These bonds signified historical ties that date back hundreds of years. The relationship had been served well by geographic proximity, frequent travel and brisk trade.

The session was organized by the Sri-Lanka Maldives Bilateral Business Council in association with the Ceylon Chamber of Commerce and was held at the Hilton.

He pointed out that diplomatic relations between the two countries were established on July 26, 1965 - the date of independence of the Maldives. The Maldives and Sri Lanka were the founding members of the South Asian Association for Regional Cooperation (SAARC). Bi-lateral cooperation agreements existed in a variety of fields, including education, defense, air services, cultural cooperation, visa and consular matters, economic and technical cooperation, science and technology, seafaring and intelligence sharing.

Ibrahim emphasized that the vision of the Maldivian government would be to become a high income, resilient and inclusive economy by laying the foundation to diversify the economy to new sectors and industries. The government had formulated a policy to establish free trade and economic zones and to diversify the financial services sector through the development of a modern legal regime for financial services; attracting international banks and other financial institutions; building reputation of Maldives financial services and attracting investment funds/ venture capital.

Sri Lanka Export Development Board Directress Jeevani Siriwardena said that the key economic targets of Sri Lanka would be a sustained progress towards US $ 100 billion economy and US $ 4,000 per capita income by 2016.

The Gross Domestic Product (GDP) contributions included 59 per cent from services, 11 per cent from agriculture and 30 per cent from Industry.

She pointed out that the Sri Lanka's export growth had reached an upward trend in fairly recent times as it had increased from US $ 6,000 million in 2005 to US $ 9,000 million in 2012. It had also contributed to 20 per cent of the GDP.

Siriwardena added that Sri Lanka's export markets in 2013 had captured 24 per cent in the United States following Netherlands 2 per cent, France 2 per cent, Singapore 2 per cent, Iran 2 per cent, UAE 2 per cent, Japan 2 per cent, Russian Federation 3 per cent, Germany 4 per cent, Belgium 5 per cent Italy 5 per cent, India 5 per cent and the United Kingdom 10 per cent.

She said that bilateral trade between Sri Lanka and Maldives had been growing rapidly in the midst of competitive markets in the region. Sri Lanka's main exports to the Maldives included processed food, insulated wires and cables, fresh fruits and vegetables, confectioneries and bakery products.

Tea exports revenue hit record high in 2013

nation.lk - 17/01/2014

Sri Lanka has achieved the highest ever revenue from tea exports in 2013 realizing a total revenue of Rs. 199.4 billion surpassing the previous best of Rs.180.4 billion in 2012, recent statistics from a leading tea brokerage firm showed. The record revenue was realized despite the island exporting lesser quantity of tea from January – December 2013 where cumulative tea exports totalled 319.6M/kgs, showing a marginal decrease of 0.28M/kgs vis-à-vis 319.9M/kgs of 2012.

“When analyzing the respective categories, Tea in bulk totalling 129.8M/kgs for the period January – December 2013 shows a decrease of 2M/kgs vis-à-vis 131.8M/kgs of 2012 and tea in packets too totalling 156.9M/kgs show a marginal decrease when compared to 157.4M/kgs of 2012. On the other hand Tea in bags totalling 25.7M/kgs in 2013, shows a growth vis-à-vis 23.9 of 2012,” Forbes & Walker Tea Brokers said in a commentary.

They noted that Commonwealth of Independent States (CIS), which comprises countries from former Soviet Republics, has retained the No.1 position as the largest importer of Sri Lankan tea, followed by Iran and Turkey.

“Iraq and Syria are the other noteworthy importers, whilst, UAE and Kuwait also have imported a significantly higher volume in 2013 vis-à-vis 2012, whilst Libyan imports haves shown a decrease compared to the corresponding period of 2012,” they noted.

The nine full member states of the Commonwealth of Independent States are Armenia, Azerbaijan, Belarus, Kazakhstan, Kyrgyzstan, Moldova, Russia, Tajikistan and Uzbekistan.

Over 200 stalls at Footwear and Leather Fair in Feb.

Lanka Business Today - 11/01/2014

The sixth Footwear and Leather Fair is to be held from February 7 to 9 featuring over 200 stalls.

The event, organized by the Export Development Board (EDB), the Ministry of Industry and Commerce, Industrial Development Board and the Sri Lanka Footwear and Leather Products Manufacturers’ Association (SLFLPMA), is expected to provide a platform for Sri Lankan footwear and leather products exporters, manufacturers and Small and Medium Enterprises (SMEs) to showcase their talents and capabilities locally and globally.

Footwear and leather industry contributes a considerable share to the country's exports earnings and has shown a remarkable growth during. In addition, the footwear manufacturers cater to more than 50% of the local market requirement, minimizing the imports of such items, says Harsha Pathberiya, Deputy Director, Industrial Products, EDB.

It is said that 150 operations are necessary to produce a pair of shoes. The growth of this labour intensive industry will widen the employment opportunities for youth in the country too.

Internationally acclaimed recognition of the Sri Lanka apparel industry, highly skilled and trainable work force, availability and easy access to natural leather in south India are considered favourable factors for the growth of the industry.

This years' fair will exhibit a wide range of footwear, leather products, travel goods, raw materials, machinery, components and accessories.

Sri Lanka’s textile & garment exports surge 35% in Nov’13

Fibre2fashion - 09/01/2014

The textiles and garment industry turned out to be the leading driver of growth in the industrial sector in November 2013 for Sri Lanka, according to a press release issued by the Economic Research Department of the Central Bank of Sri Lanka.

Earnings from export of textiles and garments grew by 35 per cent year-on-year to US$ 491.4 million in November 2013, the Bank said in the press release.

“Export of garments to both the EU and USA, the major export destinations of garments, grew by 16.7 per cent and 58.7 per cent, respectively in November 2013, reflecting the recovery in those economies as well as seasonal demand,” the statement said.

From January to November 2013, Sri Lanka’s textiles and apparel exports were valued at US$ 4.054 billion, registering an increase of 11.6 percent over exports of US$ 3.633 billion made during the corresponding period of 2012.

Despite the strong growth in export of textiles and garments, there has been a steady decline in the importation of textile and textile related articles, reflecting improved backward linkages and higher value addition in the garment industry.

In November 2013, Sri Lanka imported textiles and clothing items worth US$ 182.8 million, showing a drop of 10.4 percent compared to US$ 204 million imports of textiles and apparel made in November 2012.

In the first eleven months of 2013, textiles and apparel imported by Sri Lanka were worth US$ 1.871 billion, showing a drop of 9.7 percent as against imports of US$ 2.072 billion made during the corresponding period of previous year.

In 2012, Sri Lanka exported textiles and apparels worth US$ 3.8 billion, and the country had set a target of achieving US$ 4.1 billion in textiles and garment exports in 2013, which is most likely to be achieved.

Meanwhile, the Sri Lankan apparel industry is enthusiastic about the signing of a free trade agreement (FTA) with China in mid-2014, which would give it duty-free access to the country with the world’s largest population.

If the Sri Lanka-China FTA materializes, the island nation’s textiles and garment exports are forecast to cross US$ 4.5 billion-mark this year. 

Second largest SAARC partner hungry for Lankan exports, FTA trade

Asian Tribune - 09/01/2014

Rishad Bathiudeen (Minister of Industry and Commerce) discusses with His Excellency Maj Gen Qasim Qureshi (Pakistan High Commissioner to Sri Lanka) on 07 January in Colombo.

Sri Lanka’s second largest trade partner in SAARC is hungry for more Lankan exports in the coming year-while also closely looking at Sri Lanka’s sugar sector for entry! ”Pakistan’s new GSP with EU is an opportunity for Sri Lankan exporters and they can do more things. In fact, we should jointly explore whatever is possible within the rules and regulations of these new developments!” stressed an upbeat Major Genenral Qasim Qureshi (Pakistan High Commissioner to Sri Lanka) on 07 January in Colombo.

High Commissioner Qureshi was addressing Rishad Bathiudeen Minister of Industry and Commerce on 07 January during his new-year courtesy call on Minister Bathiudeen at the Ministry of Industry and Commerce premises in Colombo 03.

Addressing Minister Bathiudeen, (HE) Qureshi revealed: “We believe that there is strong unrealized trade potential between both countries. Through the Joint Economic Commission, we annually review our trade progress of our FTA so that it becomes increasingly ‘commerce-friendly’ for both countries. And there is a trade imbalance between Pakistan and Sri Lanka and we want to reduce that. Which means that we should also explore avenues and ways in which more products from Sri Lanka are exported to Pakistan. So what we want to do is to expand the bilateral trade from the present annual level of $ 440 Mn to $ One billion in the coming years-perhaps even in a couple of years! The way to do this is by exploring areas where we can see new trading starts between the two countries in not just the traditional trade items but also to look at new items and new products. Also, Pakistan’s new GSP with EU is an opportunity for Sri Lankan exporters and they can do more things. Of course the rules of origin are from Pakistan. For example, Sri Lankan exporters can consider more raw material exports to Pakistani industries that are manufacturing to EU using this GSP. In fact, we should jointly explore whatever is possible within the rules and regulations of these new developments!”

According to the Department of Commerce, Pakistan is the second largest trading partner of Sri Lanka in the SAARC region after India. Lankan exports to Pakistan topped $ 42.97 Mn from January to June in 2013 and more importantly, registered a 27% surge from 2010’s $ 60.38 Mn to $ 82.75 Mn by 2012. A substantial growth in bilateral trade is seen in both exports and imports after the Free Trade Agreement between the two countries was implemented in 2005. The total trade has increased from US $ 158 Mn in 2005 to US $. 433.69 Mn in 2012 (and from January to June 2013, at $289.23 Mn). The balance of trade has always been in favour of Pakistan.

Speaking on investments, (HE) Qureshi said: “We are also looking into getting new investments from Pakistan to Sri Lanka because we think that it is not only just commerce but mutual investments too can strengthen bilateral economic relations. We are looking at some areas where we can bring investment from Pakistan to Sri Lanka and we are now keenly looking at the sugar industry in Sri Lanka for new investments.”

Sri Lanka spends around $ 60 Mn for sugar imports and imported $ 3.38 Mn of sugar from Pakistan in 2012. As for Pakistani investment in Sri Lanka, from 2005 to the third quarter of 2013, FDI from Pakistan to Sri Lanka stood at $ 7.5 Mn (cumulative) across 15 investment projects. In November 2013, Tarek M. Khan, President of Pakistan Sri Lanka Business Forum (PSLBF), meeting Minister Bathiudeen in Colombo, revealed that the Pakistani investors have a preference for Sri Lanka due to logistics and rapidly developing infrastructure.

Minister Bathiudeen, who praised Pakistan’s ongoing support to Sri Lanka at various times, responding to Qureshi, said: “It is with pleasure that our government observes that the Eleventh Sri Lanka-Pakistan trade talks concluded successfully on 27 November 2013, a day ahead, helped by the participation of Pakistani Federal Minister of Industries & Production, Ghulam Murtaza Jatoi.” Minister Bathiudeen added: “I believe that in the coming year we should maximize all opportunities presented by our FTA and enhance our bilateral trade levels. Our exporters are already leveraging the PSFTA and it is time our exporters try on new product exports since there are more than 4800 product lines available to them under this PSFTA. I and my officials welcome Pakistani investors and traders keen on Sri Lanka and are always ready to extend our fullest assistance.”

Pakistan's latest GSP with EU, opportunity for Sri Lankan exporters: Qureshi

Daily Mirror - 08/01/2014

Sri Lanka’s second largest trade partner in SAARC is looking for more Lankan exports in the coming year, while also eyeing Sri Lanka’s sugar sector entry,

”Pakistan’s new GSP with EU is an opportunity for Sri Lankan exporters, and they can do more things. In fact, we should jointly explore whatever is possible within the rules and regulations of t hese new developments, said Pakistan High Commissioner to Sri Lanka Major General Qasim Qureshi, addressing Industry and Commerce Minister Rishad Bathiudeen during his new-year courtesy call on the Minister.

Addressing Minister Bathiudeen, Qureshi said, “We believe that there is strong unrealized trade potential between both countries. Through the Joint Economic Commission, we annually review our trade progress of our FTA so that it becomes increasingly ‘commercefriendly’ for both countries. And there is a trade imbalance between Pakistan and Sri Lanka and we want to reduce that.

Which means that we should also explore avenues and ways in which more products from Sri Lanka are exported to Pakistan.”

“So what we want to do is to expand the bilateral trade from the present annual level of $ 440 million to $ 1 billion in the coming years-perhaps even in a couple of years.

The way to do this is by exploring areas where we can see new trading starts between the two countries in not just the traditional trade items but also to look at new items and new products.

Also, Pakistan’s new GSP with EU is an opportunity for Sri Lankan exporters and they can do more things. Of course the rules of origin are from Pakistan. For example, Sri Lankan exporters can consider more raw material exports to Pakistani industries that are manufacturing to EU using this GSP. In fact, we should jointly explore whatever is possible within the rules and regulations of these new developments.”

According to the Department of Commerce, Pakistan is the second largest trading partner of Sri Lanka in the SAARC region after India.

Lankan exports to Pakistan topped $ 42.97 mn from January to June in 2013 and more importantly, registered a 27 percent surge from 2010’s $ 60.38 mn to $ 82.75 mn by 2012. The total trade has increased from US $ 158 mn in 2005 to US $. 433.69 mn in 2012 (and from January to June 2013, at $289.23 mn). The balance of trade has always been in favour of Pakistan.

Speaking on investments, Qureshi said, “We are also looking into getting new investments from Pakistan to Sri Lanka because we think that it is not only just commerce but mutual investments too can strengthen bilateral economic relations.

We are looking at some areas where we can bring investment from Pakistan to Sri Lanka and we are now keenly looking at the sugar industry in Sri Lanka for new investments.”

“I believe that in the coming year, we should maximize all opportunities presented by our FTA and enhance our bilateral trade levels.

Our exporters are already leveraging the PSFTA and it is time our exporters try on new product exports since there are more than 4800 product lines available to them under this PSFTA,” Bathiudeen said.

ON A ROLL: GSP FOR TEN YEARS

EU, Lanka annual trade volume exceeds US$ 5 b

Daily News - 04/01/2014
By Chaminda Perera

Sri Lanka will continue to receive the benefit of the European Union (EU) GSP facility for another 10 years beginning from January this year, Industry and Commerce Minister Rishard Bathiudeen said yesterday.

He said the EU has been Sri Lanka’s largest trade partner next to the United States and the bilateral trade volume exceeds US $ 5 billion a year.

“Total trade between Sri Lanka and EU which was at US $ 3 billion in 2004 rose to US $ 4,946.18 million in 2012. Apparel, diamonds, tea and rubber products became the major export items,” he said.

The minister added that more than 87 countries have lost the EU GSP facility from this year with the activation of the new GSP Scheme approved by the European Parliament in June last year effective from January 1 , 2014.

“The number of countries that enjoyed this facility up to the end of 2013 has been reduced from 177 to 90 with the activation of the new GSP scheme,” he said.

The minister added that 20 countries that have achieved high and upper middle income levels will not receive preferential access to the EU market from this year.

Minister Bathiudeen said that EU is 500 million strong economy that holds a promise “The EU is also one of the most diversified investors in Sri Lanka, with leading European companies operating in almost all sectors of economy-specially, Fast Moving Consumer Goods (FMCGs), higher education, apparel, infrastructure, manufacturing, agro, technology and even in strategic development projects,” he said.

The minister added that there is an increase in terms of trade and balance of trade between Sri Lanka and European Union.

EU multinationals as Unilever and British American Tobacco are well established in Sri Lankan with their decades-long Fast Moving Consumer Goods (FMCGs).

‘Seven firms now in automotive assembly here’- Minister Rishad

news.lk - 02/01/2014

Export cess on rare earth/mineral sand were introduced to safeguard our industries –and no less than seven firms are now active in automotive assembly industry in Sri Lanka. “To safeguard domestic industries and to ensure a continuous supply of raw materials for local industries, we introduced exports cess on selected items.  And seven companies have ventured into the automobile assembly industry with a local value addition exceeding 30%” said Rishad Bathiudeen, Minister of Industry and Commerce on 10 December.

Minister Bathiudeen was making his Ministry’s Budget Statement on 10 December at Parliament, which was tabled by him.

Elaborating on the introduction of measures to safeguard domestic industries and on local automotive assembly, Minister Bathiudeen said: “Taking into consideration the requests made by the Division on behalf of industrialists, the Cess on several items was increased / imposed such as, fresh, preserved, dried vegetables and fruits/ other vegetable and fruit products (to protect the local processed food industry), edible oils, margarine, sausage or preserved meat products, honey & jaggery, confectionaries, bakery products, food preparations, mineral water, vinegar, salt, among others. In order to safeguard domestic industries to ensure a continuous supply of raw materials for local industries and to encourage the export of value added goods by discouraging the export of items in raw form, the Cess on Cinnamon, cloves, natural sands, quartz, clay, phosphate stones (emery, corundum), stones (gravel, pebbles etc.), mica, steatite, ilmanite, rutile, Titanium, Zirconium, Niobium, Tantalum, Vanadium etc. was increased, to facilitate domestic industries. Also exempted from the payment of excise duty on Locally assembled / manufactured motor vehicles and electrical items that come under the HS headings 84 and 85, which achieve a Local Value Addition (LVA) of above 30%.  From the time that the first batch of vehicles was granted the duty exemption in 2008, seven companies have ventured into the automobile assembly industry with 17 models of vehicles being assembled by the seven local companies totalling to over 6,000 vehicles with a LVA exceeding 30%.”

 Addressing the House on his Ministry’s utilization rates, Minister Bathiudeen said: “I am pleased to say that our actual recurrent expenditure up to 30th September 2013, stood at Rs 374.92 Million, which is a utilization rate of 66%. Our capital expenditure up to 30th September 2013, stood at Rs 518.6 Million, which is a utilization rate of 31%.  The grand total actual expenditure of both recurrent and capital are Rs 893.5 Million up to 30th September 2013.


These funds were fruitfully utilized by my Ministry’s committed divisions, departments, funds and projects -among them are, the Industrial Policy & Development Division, Regional Industrial Development Division, Development Divisions  1, 2,and 3, the Productivity Improvement, Industry Registration and Management Information Division, National Authority for the Implementation of Chemical Weapons Convention, Corporations & Statutory Boards Division and organisations under it, Small and Micro Industries Leader and Entrepreneur Promotion Project III Revolving Fund (SMILE III Revolving Fund), Textile Industry Development Division, Department of Textile Industries (DTI), the Department of Commerce (DOC), Department of Registrar of Companies, National Intellectual Property Office, and the Sri Lanka Export Development Board.