SL-Iraq trade talks begin in Baghdad

Daily Mirror - 27/02/2014

The latest Sri Lanka-Iraq Joint Committee for Economic Cooperation (JEC) Commenced February 25 in Baghdad, a statement from the Industry and Commerce Ministry said.

“Iraq is certainly an important market for us not only for tea but even for other prospective products. Similarly, there would be good opportunities for Iraq to promote its products using Sri Lanka’s potential,” said Industry and Commerce Minister Rishad Bathiudeen, making his opening remarks at the eighth session of Sri Lanka Iraq Joint Committee for Economic Cooperation (JEC) meeting in Baghdad, heading a 16-member delegation.

On its part, displaying an unprecedented interest, the Iraqi government was fielding an official team of more than 30 members that consisted representatives from such key Iraqi Ministries as Trade, Economic Relations, Transportation and Industry and Minerals. The Iraqi team at the Baghdad JEC session was led by Trade Minister Kheer-allah Hassan Babaker Muhammad.

Iraqi Trade Minister Babaker Muhammad said, “Iraq side is keen to share the experiences of Sri Lanka, particularly in the fields of investment promotion, free trade zones, financial and health sectors.”

According to the Commerce Department of Sri Lanka, the value of total trade between the two countries that stood at US $ 8.72 million in 2003 topped US $ 89.99 million in 2013.

Sri Lanka exported goods totalling US $ 89.80 million to Iraq and imported only goods worth US $ 0.19 million from Iraq during 2013. Tea has been a major export item to Iraq accounting for about 95 percent of Sri Lanka’s exports to Iraq, with an estimated 15,000MT of Ceylon tea being exported indirectly through Dubai, Jordan and Kuwait.

Minister Bathiudeen said, “The establishment of the Joint Committee for Economic Cooperation between our two countries in 1975, opened a new chapter in our cooperation for development and enhancing our relations in diverse fields covering trade, economic and technical cooperation. On bilateral trade, we observe that there is a very slow progress, which may be due to the prevailing circumstances.

There is a lot of renewed interest among the foreign investors in investment in prospective projects in different sectors. Sri Lanka’s highly literate skilled labour force, transparent investment laws guaranteed by the Constitution and the international agreements, have made Sri Lanka one of the most preferred investment destination among the international business community. I wish to take this opportunity to invite the Iraq business community to visit Sri Lanka and explore the opportunities available for them in their areas of interest.”

Iraq – Sri Lanka trade tops $90 million, up 80 per cent

Lanka Business Today - 26/02/2014

Bilateral trade between Sri Lanka - Iraq has reached $90 million, an 80 per cent increase, and the two countries are aiming to break new ground when the largest joint trade session has begun in Baghdad. OPEC’s second biggest oil power is also ready to channel its Basra Light Crude to Sri Lankan refineries.

”In the past Sri Lanka bought and refined our oil. You can buy our Basra Light brand of crude streams and we are ready to supply them to you as we are a top buyer of Ceylon Tea,” said a confident Ambassador of Iraq in Sri Lanka, Kahtan Taha Khalaf in Colombo last week.

Ambassador Khalaf made these observations during a meeting with Rishad Bathiudeen, Minister of Industry and Commerce of Sri Lanka on February 19. Also present on the occasion were officials of the Department of Commerce and Dr Ali Abdul Razaq Salah Al-Kuhlee, Assistant Commercial Attache, Embassy of Iraq in Sri Lanka.

Iraq is OPEC’s second biggest oil power after Saudi Arabia. According to the ministry, the value of total trade between the two countries that stood at $ 8.72 million in 2003 topped $ 89.99 million in 2013. Sri Lanka exported goods valued at $ 89.80 million to Iraq and imported only goods valued at $ 0.19 million from Iraq during 2013.  Tea has been a major export item to Iraq accounting for about 95% of the total exports to Iraq. It is also estimated that almost 15,000MT of Ceylon tea is being exported to Iraq indirectly through Dubai, Jordan and Kuwait.

“A can refine Basra light crude to more than 50%, even up to 60% here” said the envoy. Global oil industry related reports that showed Iraq’s Basra Light has now stabilized to around 30 (degrees) API density, also said that since 2013, Iraq has become very competitive in its oil supplies. Ambassador Khalaf however, did not discuss any pricing details of Basra Light with Minister Bathiudeen.

“We are also looking forward to strong participation at the Joint Economic Commission talks with Sri Lanka in Baghdad. We are planning to invite Iraqi business chambers and many of our officials for this session so that we can move bilateral business forward with Sri Lanka. We need to initiate double taxation avoidance on both sides” said ambassador Khalaf last week and added: “We are happy with your well-developed tourism-specifically, the medical tourism. More than 20,000 Iraqi’s go overseas annually for their medical needs and they will be very happy to come to Sri Lanka and benefit from your surging medical tourism facilities. They are comfortable with the six-hour flight to Sri Lanka. Please think of accommodating at least even 10% of them to Sri Lanka’s medical tourism. We are also in need of Sri Lankan trained medical personnel such as anesthetists, nurses, and physicians since they are good. We are ready to provide all facilities, food and tickets with good salaries - minimum salaries starting from $ 2,000 per month and even going to around $ 4,000!,” said the ambassador.

“Iraq is one of the biggest trade partners for Sri Lanka in the Middle East. This suggestion on Basra Light, among your other suggestions, is interesting and needs some study by us before any decisions. During the Joint Economic Commission (JEC) talks in Baghdad, your team can begin official discussions with us on this. I am also pleased to inform you that I am bringing one of the strongest Sri Lankan delegations ever, around 15 members, for next week’s eighth Joint Economic Commission Session in Baghdad. As per your request, we are looking to cover a wide range of issues to advance our cooperation-in aspects of trade including tea supplies and related shipping logistics, investment, financials, education, aviation, tourism, health and even man-power,” said the ambassador.

Since the Iraqi-Sri Lanka Joint Economic Commission was established in 1975, seven sessions have been held,-the last being in Colombo in October 2010. The 8th SL-Iraqi JEC session is now underway Baghdad beginning February 24 - one of the biggest bilateral trade rounds ever to take place involving both trade partners.

Lankan exporters invited to utilize Pakistan’s GSP Plus with EU

Daily Mirror - 24/02/2014
By Sashi Ratnayake

Pakistan’s High Commissioner to Sri Lanka Major General Qasim Qureshi made an open invitation to Sri Lankan exporters to utilize the current Generalized System of Preferences Plus (GSP) scheme Pakistan enjoys with the European Union (EU) and expand trade between the two countries through the existing free trade agreement (FTA).

“Pakistan’s new GSP plus scheme with the EU is an opportunity for Sri Lankan exporters. For that we should jointly explore whatever is possible within the rules and regulations of the trade concession,” Qureshi said during a discussion held at the National Chamber of Commerce, recently.

Pakistan was granted the GSP plus status by the end of December 2013 till the year 2017. The GSP Plus status will allow almost 20 percent of Pakistani exports to enter the EU market at zero tariff and 70 percent at preferential rates, enabling Pakistan to export more than US $ 1 billion worth of products to the international markets. It is said that only the textile industry would earn profits of more than Rs1 trillion per year.

Meanwhile, Pakistan’s High Commission First Secretary Hasan Zaigham joining the discussion explained Pakistan’s position as the third largest consumer of tea in the world.

He pointed out though Sri Lanka exports tea to Pakistan, only elite Pakistani citizens could afford to enjoy the exported tea while the majority of the middle class drinks cheap Indian tea. He urged Sri Lankan tea exporters to look at the possibility of revising the prices to cater to the growing middle class of Pakistan.

According to Zaigham Pakistan by 2012 had a population of 179.2 million people who extensively use motor vehicles. During his presentation he made a strong case for Lankan tyre exporters to contemplate on entering Pakistani tyre market.

Throughout the discussion the Pakistani officials repeatedly mentioned about the interest some of the Pakistani companies have upon entering the sugar industry of Sri Lanka, while explaining higher demand for fruits such as cashew and pineapple in Pakistan showing the new areas the two countries could work upon.

Sri Lanka and Pakistan bilateral trade currently stands at US $ 440 million and it is expected that the trade will grow over US $ 1 billion in the coming few years.

Pakistan expects to invest US$ 500 mn in Sri Lanka

Daily News - 24/02/2014
By Indunil Hewage

Pakistan is expected to invest around US$ 500 million in Sri Lanka in the next three years, said Hasan Zaigham, the First Secretary, Pakistan High Commission in Sri Lanka addressing a seminar on Sri Lanka and Pakistan trade, organized by the National Chamber of Commerce in Sri Lanka.

Investments from Pakistan into Sri Lanka have begun to pick up. As of December 2012, the total cumulative investment stood at around US$ 11.9 million and currently Investment of around US$ 233.3 million is in the pipeline.

Pakistani companies have invested in agriculture, IT, textiles and construction /real estate development.

A number of Pakistani companies have shown interest in investment in sugar sector of Sri Lanka.

Bi-lateral Trade between Sri Lanka and Pakistan to be increased to US$ 1 billion from current US$ 400 million.

“Promotion of Ceylon Tea and apparel in Pakistan, Sri Lanka needs to engage in an aggressive campaign in Pakistan to change the preference of the consumers,” Zaigham said.

Pakistan is the fourth largest importer of tea in the world after Russia, UK and Egypt.

Pakistan is the third biggest consumer of tea. The demand for black tea is over 170 million kg.

“Under-utilization of concessions provided by the both sides under the Sri Lanka Pakistan Free Trade Agreement is a major issue,” Zaigham said.

Tariff Rate Quota (TRQ) of 10,000 metric tons on tea is however not fully utilized by Sri Lanka. In 1975, close to 67 percent of Pakistani tea imports came from Sri Lanka. By 1998 it declined to 7 percent and to further 2.6 percent by 2003.

The TRQs granted to Sri Lanka on apparel also remain underutilized.

The opportunity offered by the FTA could be exploited by the apparel sector by taking a serious look at the Pakistani market.

Sri Lankan raw rubber exporters have a major opportunity to capture a larger share of the Pakistani market and there are also vast opportunities available to export pineapple and cashew nut.

Since many of the goods that Sri Lanka exports to Pakistan have low preference, there may not be a significant expansion in traded volume of exports in the near future, unless Sri Lanka diversifies its basket of goods to higher-preference point items.

Impact of the Sri Lanka- Pakistan Free Trade Agreement on the value of Sri Lankas exports to Pakistan seemed negligible.

“Despite the 4600 tariff lines offered to Sri Lanka only around 80 percent of its exports take place using 16 to 17 tariff lines,” Zaigham said. However, Pakistan experienced growth in exports to Sri Lanka at a much faster rate.

Sri Lankan imports from Pakistan rose from US$ 192 million in 2008 (1.4 percent of total imports), to US$ 351 million in 2012 (2 percent of total imports).

Pakistan imports from Sri Lanka were valued at US$ 83.412 Million in 2012. Pakistan exports to Sri Lanka comprise mainly of cotton and fabrics which in 2012 accounted for 32% of total exports.

In 2008 the value of Sri Lankan exports to Pakistan was US$ 71.37 million (0.9 percent of total exports). 2012 saw this figure rise to US $ 82.75 million, but this figure still accounted only for 0.9 percent of Sri Lanka's total export. Pakistan exports are being value added by Sri Lanka for export to other markets.

Further liberalization of trade in goods by rationalization of negative lists will help boost the bi-lateral trade between two countries. Broadening and deepening on FTA by including Investment and Services , Encouraging bilateral investments , building institutional mechanisms including more robust dispute resolution mechanism and customs cooperation, marketing Sri Lanka as a tourist destination in Pakistan, getting Inputs from the private sector in technical review talks on FTA and encouraging business delegations to participate in trade fairs will create many opportunities for both countries to enhance trade and investment opportunities.

Lanka, Iraq bilateral trade up by 80% to $ 90 mn

Daily News - 20/02/2014

Rishad Bathiudeen, Minister of Industry and Commerce meets Iraqi Ambassador in Sri Lanka Kahtan Taha Khalaf in Colombo

As bilateral trade topped $90 mn, Iraq and Sri Lanka are aiming to break new grounds when largest joint trade session will commence in Baghdad next week-and OPEC's second biggest oil power is now ready to channel its Basra Light crude to Sri Lankan refineries.

" In the past Sri Lanka bought and refined our oil but has discontinued. You can buy our Basra Light brand of crude streams and we are ready to supply them to you as we are a top buyer of Ceylon Tea," said Iraqi Ambassador in Sri Lanka Kahtan Taha Khalaf yesterday.

Iraq is OPEC's second biggest oil power after Saudi Arabia. According to the Department of Sri Lanka, the value of total trade between the two countries that stood at $ 8.72 mn in 2003 topped $ 89.99 mn in 2013. Sri Lanka exported goods totalling $ 89.80 mn to Iraq and imported only goods of $ 0.19 mn from Iraq during 2013. Tea has been a major export item to Iraq accounting for about 95% of the total exports to Iraq. It is also estimated that almost 15,000 MT of Ceylon tea is being exported to Iraq indirectly through Dubai, Jordan and Kuwait.

"In the past Sri Lanka bought and refined our oil but has discontinued. You can buy our Basra Light brand of crude and we are ready to supply them to you as we are a top buyer of Ceylon Tea. You can refine Basra light crude to more than 50%, even up to 60% here," Khalaf said.

SRI LANKA: Apparel exports exceed $4bn target

Sri Lanka's apparel and textile sector exported a record US$4.3bn in 2013 and its Joint Apparel Association Forum (JAAF) has predicted overseas sales will continue rising this year.

The JAAF president Noel Piyatilake told just-style the industry is targeting an ambitious target of US$6bn in exports by 2020, making Sri Lanka one of the world's top 10 apparel exporting countries.

Piyatilake is also hoping to gain extra leverage from planned trade agreements. "We have made several representations to the Sri Lankan government to explore the option of entering into preferential treatment agreements with several countries including China, Japan, India, Brazil and Russia, which will benefit our sector immensely," he explained.

Tuli Cooray, the JAAF secretary general, added that the 2013 figures were particularly encouraging given the original export sales target for last year was US$4bn. In 2012, Sri Lanka clothing and textile producers exported US$3.8bn worth of products.

Most sales were made to customers in the United States and Europe, with more than US$1.9bn of clothing exported to the European Union and US$1.8bn to the US.

Meanwhile, discussions are already underway between the Sri Lankan and Chinese governments for a possible free trade agreement which officials predict will be finalised and signed this year (2014).

The Sri Lankan apparel sector is particularly optimistic about this potential deal as it views China as a key emerging market, ripe for well-priced Sri Lankan exports.

Lanka mulling to be a medical tourism brand

Asian Tribune - 13/02/2014

Merging its latest tourism arrivals to its modernizing healthcare, Sri Lanka is mulling to be a medical tourism destination next-while also opening a new niche service niche in its surging exports.

“Due to the support of well-trained, high quality healthcare professionals, availability of treatment centres as well as pharmaceuticals, we are witnessing the emergence of a new sector, that is medical tourism, contributing to our service exports” said an upbeat Rishad Bathiudeen, Minister of Industry and Commerce of Sri Lanka on 12 February in Colombo.

Minister Bathiudeen was addressing the launch event of the twin exhibition -Intrad 2014 and Arogya 2014- at Hilton Colombo on 12 February afternoon. The event to be held from May from 16th to 18th in Colombo is organized by the National Chamber of Commerce of Sri Lanka with the Ministry of Industry and Commerce, Ministry of Health, Department of Commerce, Ministry of Traditional Industries & Small Enterprise Development and EDB being co-organisers. During the event, Minister Bathiudeen also launched the twin event’s official website, www.intrad-arogya2014.com.

“The INTRAD 2014 and Arogya 2014 are gaining gradual recognition among our business community as networking events for these growth sectors in Colombo. I am given to understand that INTRAD is a wide ranging exhibition, including industries, imports and even exports. As the Minister in charge of exports, I commend your efforts to promote our exports through this series” said Minister Bathiudeen, addressing the event,

He added: “In fact, I am pleased to share the good news with you on our exports. As announced two days ago, earnings from exports during 2013 grew by 6.3% to $ 10.38 Bn. As the Minister of Industries, I am also pleased to note that Industrial exports, have led 2013 December growth on Year on Year basis. In December, monthly Industrial exports increased by 15.2% to $ 741 Mn. These strong growth rates are reported at a time when we target national exports goal of $ 20 Bn by 2020 under the committed vision of HE the President Mahinda Rajapaksa. NCC’s other concurrent exhibition, the Arogya series, focuses on healthcare. With only a per capita healthcare expenditure of $ 175, at first, Sri Lanka does not appear to have an advanced healthcare infrastructure similar to the developed countries. However, this does not show us the full picture. Due to the support of well-trained, high quality healthcare professionals, availability of treatment centres as well as pharmaceuticals, we are witnessing the emergence of a new sector, that is medical tourism, contributing to our service exports. “

Minister further said, “Studies show that around 15% of patients in Sri Lanka are foreign patients, such as from Maldives. I am pleased to say that two healthcare companies, that is Lanka Hospitals and Durdans, already have active programs for foreign medical tourists. In fact, the Export Development Board under my Ministry, which is also partnering for INTRAD and Arogya, believes that medical tourism is a promising service sector to drive our foreign exchange earnings. Developing a strong niche in medical tourism, can result in a special tourism brand for Sri Lanka in the long term. Our tourism sector reported more than 1.2 million arrivals in 2013, according to the office of Sri Lanka Tourism. I wish to commend the Economic Development Minister Hon Basil Rajapaksa for this growth. Since medical tourism is at the middle of several sectors, such as tourism, healthcare and inbound travel packaging, we believe that Public Private Partnerships are a good way to strengthen this promising sector, so that our government’s goals in tourism related hub synergies are leveraged well”.

“The twin events have progressed considerably during the last few years” revealed Sunil Wijesinghe (Chairman-National Chamber of Commerce). “These two events in coming May in Colombo will have international participation like last year where Japanese, Chinese, Indian, and Pakistani delegates took part” Wijesinghe added.

“Some stalls of INTRAD 2014 and Arogya 2014 are already sold out” said Thilak Godamanna, Snr. Deputy President of NCC. “We hope this year’s event will be more successful than last year’s” Godamanna said.

Exports up by 6.3% to US$ 10.38 bn in Dec.

Daily News - 11/02/2014

Sri Lanka's external sector strengthened further with continued inflows to both the Current Account and the Financial Account of the Balance of Payments (BOP)in December 2013.These inflows resulted in a significant increase in the overall balance as at end December 2013, the Central Bank said yesterday.

Earnings from exports recorded an increase, while a notable reduction in imports was witnessed during the month, considerably reducing the trade deficit. Inflows on account of workers’ remittances and tourist earnings also recorded the highest values during a month, while inflows to the Financial Account increased moderately during December, the Bank said yesterday.

Earnings from exports, which surpassed US dollars 1 billion during the preceding two months continued to rise in December 2013, recording an increase of 13.2 per cent in December 2013, while expenditure on imports recorded a marginal increase of 2.1 per cent. As earnings from exports increased by more than the increase in expenditure on imports, the trade deficit contracted significantly by 12.9 per cent to US dollars 565 million in December 2013.

Exports in December 2013 increased to US dollars 986 million due to higher earnings from industrial and agricultural exports. Industrial exports, which account for more than three quarters of total export earnings, increased by 15.2 per cent on a year-on year basis to US dollars 741 million in December 2013 with continued growth in exports of textiles and garments. Earnings from export of textiles and garments grew by 26.9 per cent year-on-year to US dollars 454 million in December 2013.

Export of garments to the EU and USA, which are the major export destinations for garments, grew by 24.9 per cent and 35.6 per cent, respectively in December 2013.

Meanwhile, export of rubber products increased by 22.4 per cent to US dollars 94 million due to higher growth in surgical and other glove exports.

Export of leather, travel goods and footwear also grew by 82.4 per cent, year-on-year. Apart from these, plastics and articles thereof, chemical products and ceramic products also recorded positive growth.

However, earnings from the export of transport equipment, which include ships and boats declined significantly by 84.7 per cent due to the high base in 2012. Earnings from petroleum products exports also declined by 13 per cent, due to a decline in volumes, as the price was higher than in competitor countries. Earnings from agricultural exports rose by 11.4 per cent, year-on-year, to US dollars 242 million in December 2013, led by tea exports.

Earnings from tea exports increased by 7.3 per cent to US dollars 148 million in December 2013, due to favourable prices that prevailed in international markets, despite a decline in export volumes.

The average price of tea exported increased to US dollars 5.12 per kg in December 2013 from US dollars 4.47 per kg in December 2012. Earnings from coconut exports recorded a significant growth of 31.9 per cent led by an increase in kernel products due to both higher export volumes and prices. Earnings from the export of spices increased by 13.8 per cent to US dollars 26 million led by higher export volumes in pepper, cinnamon and nutmeg and mace exports.

Lanka records highest footwear & leather exports

The Island - 09/02/2014

Sri Lanka's booming footwear and leather sector has demonstrated the highest exports surge in recent history while the industry players lauded praise on the government for the support given to them. "Our footwear and leather exports have shown a strong growth trend. In 2012, exports from this sector stood at $ 30 Mn but now it has registered a remarkable 63% increase in 2013 to $ 51 Mn" said a satisfied Rishad Bathiudeen (Minister of Industry and Commerce of Sri Lanka) on February 7 in Colombo.

Minister Bathiudeen was addressing the inauguration event of the sixth edition of Footwear and Leather Fair on 07 February at BMICH, Colombo. Joining the event as the Chief Guest was Basil Rajapaksa (Minister of Economic Development), and other Deputy Ministers-Lakshman Wasantha Perera (Deputy Minister of Industry & Commerce) and Weerakumara Dissanayake (Deputy Minister of Traditional Industries & Small Enterprise Development), as well as members of diplomatic community from 13 countries, international participants from Egypt, France, Korea, Kenya, Germany, Seychelles and -including a delegation from Iran. 19 Indian exhibitors from Indian Footwear Component Manufacturers Association (IFCOMA) and one Chinese exhibitor were taking part in the event which was first held in 2007. The sixth edition, organized by Export Development Board, the Ministry of Industry and Commerce, Industrial Development Board and the Sri Lanka Footwear and Leather Products Manufacturers' Association (SLFLPMA), is the international level platform for Lankan footwear and leather product exporters, manufacturers and Small and Medium Enterprises (SMEs) to showcase their talents and capabilities locally and globally.

"This event is a strong platform for networking and market diversification for Lankan stakeholders" said Minister Bathiudeen, and added: "What is more interesting is that this event is also taking place at a time when our footwear and leather exports are showing a strong growth trend. In 2012, exports from this sector stood at $ 30 Mn but now it has registered a remarkable 63% increase by 2013 to $ 51 Mn. Having successfully completed five editions, the EDB is organizing the 6th event with the valuable support of Industrial Development Board, Sri Lanka Footwear and Leather Products Manufacturers' Association and other stakeholders-specially the more than 40,000 strong workforce in this sector.

‘As you are aware, the leather and footwear industry of Sri Lanka has also been identified by my Ministry as a thrust industry for development. Accordingly, the ministry has taken many initiatives to safeguard the local manufacturers and also to develop and promote exports. I also wish to commend producers and exporters in this sector as well as award winning Sri Lankan footwear exporters in Sri Lanka such as Michelangelo Group who are successfully supplying to global footwear brands such as JC Penny, John Lewis, and Bata Switzerland and even the competitive Italian market.

Our domestic supply source is bovines, and the numbers of Sri Lanka's bovines, have registered an encouraging 19% increase from 2002 to 2012.

Footwear, leather fair exhibition attracts foreign buyers

Daily News - 08/02/2014
By Indunil Hewage

The sixth edition of the Footwear and Leather Fair 2014 exhibition organized by Sri Lanka Export Development Board in collaboration with the Ministry of Industry and Commerce, Industrial Development Board and Footwear and Leather Products Manufacturers Association kicked off yesterday at the BMICH.

The Three day exhibition comprises of 225 stalls. This years exhibition sees the participation of foreign buyers from Egypt, Korea, Kenya, Seychelles, France, Germany and India, including a delegation from Iran. There will also be 19 Indian exhibitors from the Indian Footwear Component Manufactures Association (IFCOMA) participating at this years exhibition.

Leather products machinery

A local customer admiring a belt, at a foreign leather stall.  

Speaking at the inauguration ceremony, Sri Lanka Export Development Board Chairman and CEO Bandula Egodage said, "The multiple objectives of the exhibition are to improve the image of the industry both home and abroad, to showcase the talents and capabilities of the Sri Lankan Footwear and Leather products manufacturers, provide a platform for SME companies to link with the large scale companies in order to get sub contract opportunities, upgrade technological capabilities of SMEs and encourage them to move into to manufacture value added products to cater to the international market.

Shoes on display at a stall

"This industry makes a significant contribution to the Sri Lankan economy in two ways. The industry depends 50% on its imports and 50% local manufacturing, which means the industry is saving for foreign currency as well as earning for foreign currency," Egodage said. The three main parallel events will be an exclusive fashion show, a design competition and an award ceremony.

Shoes on display at a stall

In addition, the best stall competition has also been organized.

The award ceremony will be held at 4.00 pm on February 9, at the lobby of Sirimavo Bandaranaike Memorial Exhibition Centre (BMICH) and the fashion show will be held today. The total Leather and Leather Product exports stood at $ 51 million in 2013 as against $ 31.19 million recorded in the previous year.

Police and Army officers at a stall

Sri Lanka produces high quality leather goods in the range of leather gloves, travel bags, back packs, ladies handbags, jackets and small leather goods and caters to the high end of the niche markets in the International Market.

Lankans seek to dress the Chinese

The Sunday Times - 09/02/2014
By Sunimalee Dias

Sri Lanka’s apparel industry is looking towards China this year aimed at finding new brands and increasing chances of promoting garment exports via a new gateway with trade concessions for its existing buyers to the East Asian partner.

But reasons for the shift in market focus would also be due to the fact that industries need to align themselves with wherever the free trade agreements (FTA) are entered into by the government, Sri Lanka Apparel Exporters Association Chairman Yohan Lawrnce told the Business Times.

The Chinese market is said to have grown in addition to a good demand for luxury goods due to the large spending capacity by its locals. As a result of the rising income levels this new emerging market was today becoming a brand and quality conscious market.

In this respect, Mr. Lawrence pointed out that apparel manufacturers in Colombo could look for tie-ups with brands in China, promote existing brands and work with Sri Lankan businesses to market goods from Colombo using the tariff free concessions once the FTA was implemented.

However, in terms of clothing it was found that the clothes designed for the European market would be able to still expand its reach with similar clothing patterns without looking for a customised solution.

MAS Holdings Director Ajay Amalean told the Business Times he believes that since the global situation being quite unpredictable was why everyone was looking for new markets.

Commenting on whether they would go in for tie-ups with new brands from China, he said they would opt for both.

It was pointed out that the Chinese home grown brands needed to be identified first before venturing in for tie-ups. He noted that they had not carried out studies into this market yet.

On the other hand, Mr. Amalean was more positive in trying to use the FTA should it prove gainful for their existing brands.

The Export Development Board (EDB) would co-ordinate the relevant work for the apparel sector and it was pointed out that business to business meetings with trading associations was being worked out.

The government has been pursuing increased trade concessions with China and it was reportedly stated that this would be the strongest if achieved in their 60 year bilateral relations history.

Sri Lanka's footwear and leather industry booming

The Colombo Page - 08/02/2014

Sri Lanka's footwear and leather sector has shown a remarkable growth in the last year with exports surging over 63 percent from the previous year.

The total Leather and Leather Product exports stood at US$ 51 million in 2013 increasing 63.5% from the US$ 31.19 million earned in the previous year.

"Our footwear and leather exports have shown a strong growth trend," Minister of Industry and Commerce Rishad Bathiyutheen said Friday addressing the inauguration of the sixth edition of the Footwear and Leather Fair at the BMICH.

The 2014 exhibition held from February 7-9 is organized by Sri Lanka Export Development Board in collaboration with the Ministry of Industry and Commerce, Industrial Development Board and Footwear and the Leather Products Manufacturers Association.

Minister Bathiyutheen said the event is a strong platform for networking and market diversification for Lankan stakeholders.

"What is more interesting is that this event is also taking place at a time when our footwear and leather exports are showing a strong growth trend," the Minister said.

Foreign buyers from Egypt, Korea, Kenya, Seychelles, France, Germany, India, and a delegation from Iran are participating in this year's event. Also, 19 Indian exhibitors from the Indian Footwear Component Manufactures Association (IFCOMA) are showcasing their products at the exhibition.

Speaking at the inauguration ceremony, Sri Lanka Export Development Board Chairman and CEO Bandula Egodage said the industry makes a significant contribution to the Sri Lankan economy in two ways.

"The industry depends 50 percent on its imports and 50 percent local manufacturing, which means the industry is saving for foreign currency as well as earning for foreign currency," Egodage explained.

The three-day exposition which concludes Sunday includes an exclusive fashion show, a design competition, a best stall competition and an award ceremony. The fashion show will be held Saturday and the award ceremony will be held on Sunday.

“Lanka capable of producing 15 million pairs annually”-EDB

Asian Tribune - 01/02/2014

In this flashback photo at the fifth International Footwear & Leather Fair 2013, Colombo, HE the President Mahinda Rajapaksa inspects a leather product with Rishad Bathiudeen (Minister of Industry & Commerce) on 10 February 2013.

The Sri Lankan footwear and leather industry is growing at a steady pace-and has developed into a sector catering to international markets. “Forthcoming 6th International Footwear & Leather Fair is a three day event and will move our producers, who now show 45% value addition, to international buyers” said Rishad Bathiudeen, Minister of Industry and Commerce of Sri Lanka on 31 January in Colombo.

Minister Bathiudeen was acknowledging his officials’ info on the forthcoming 6th International Footwear & Leather Fair which will commence in Colombo on 07 February. The three day exposition will pack such events as, a Designer Award Ceremony, an exclusive Fashion Show and a stall competition. On display are footwear, raw material, travel goods, chemicals, leather goods, components & accessories as well as machinery. In addition to the general public, Importers, Buying houses, Traders, Designers, Wholesalers & Agents, Brand owners, and Industrialists are expected to grace the expo.
According to the EDB, Sri Lanka is capable of producing up to 15 million pairs annually, excluding rubber thongs which alone is estimated to total between 27 and 30 million pairs annually. The footwear industry at present employs about 20,000 people directly and indirectly includes 10 large export companies, 30 medium scale companies and about 3000 small scale manufacturers. Footwear sector which showed a growth in the past 4 years (2004 – 2007), was badly reflected by global recession in the years of 2008 and 2009. The value of exports of footwear and leather & leather products accounts for US$. 12.24 million and US$. 18.95 million respectively in the year 2012 and US$. 29.27 million and US$ 21.61 million in 2013 shows an increase of exports of footwear and leather products compared to the corresponding year of 2012. It is important to mention that footwear sector was able to obtain a significant growth of 139.13% in the year 2013.

According to the EDB, the footwear industry has significant potential to be a key contributor to Sri Lanka’s economy, and already provides high end products to Mark & Spencer, Bata France, H.H. Browns, Clarks, Aerosoles and Nike. A diverse range of shoes including canvas and rubber boots, thongs, sports shoes and leather shoes are produced, using a variety of raw materials. From colourful rubber thongs to genuine leather shoes, Sri Lanka footwear industry has already established as quality conscious and fashionable supplier to well known international brands.

The EDB added: “In just a short space of time the shoe industry in Sri Lanka has adapted itself to the requirements of the world market. Today it is equipped to tackle both functional and fashion requirements of the modern and ever changing market place. The country produces an extremely diverse range of modern shoes in a multitude of materials and finishes. The bulk of the production in the canvas range consists of up market fashion shoes both in cold processed and vulcanized construction. Shoes are produced for well known brand names such as Esprit, Benetton. The rubber boot range consists of children’s boots in attractive colours and designs, yachting boots, fishing boots, bean boots and boots for a variety of functional purposes including military. A large volume of rubber flip flops (thongs) are produced both for local and export markets. In recent times the leather shoe sector has emerged as one with good prospects.

“Today, leather shoes accounts for a significant proportion of the footwear exported from Sri Lanka. A variety of dress shoes, boots and casual shoes in stitched down and cemented construction are available for all genders. Sri Lanka is slowly but surely carving out a niche for herself in the world market for leather footwear. Apart from manufacturing processed leather, the leather products industry includes the manufactures of goods such as gloves, wallets, bags, purses, etc. There are approximately 5 large companies, 10 medium scale companies and around 1000 small enterprises. Eleven tanneries in the country produce 25 tons of leather every day, and most of the large companies have their own tanneries.

“Leather product manufacturers also cater to famous international brands like Play Boy, Laurel, Helen Kaminiski, etc. One of the key advantages enjoyed by the footwear industry is the locally available high quality natural resources including rubber and sole crepe. Sri Lanka is the only country which produces and exports sole crepe with value addition. Encouraged by the push for “green” products worldwide, there is a great demand from international markets for unit soles manufactured from Sri Lankan sole crepe.Major export markets for Sri Lanka footwear industry are Italy, UK and France and other European Union countries.

The industry continues to consolidate these existing markets while looking to enter emerging markets. Reliable quality, sustainable volumes and competitive pricing of our footwear have been key factors contributing to the success of the footwear industry in Sri Lanka. Thus, the Footwear & Leather Fair 2014 will strengthen and sustain the image of the Industry and promote Sri Lanka export capabilities among international buyers and provide opportunity for SME’s to advance their talents and capabilities to become industry experts in the export field.”