Lanka aiming to be a top 10 apparel exporter by 2020: Minister Rishad

Daily Finance Times - 01/04/2014

• SL starts first modern footwear and leather training centre
• 2013 apparel exports a record $ 4.3 b: Rishad
• SLITAs engineering setup upgraded with hi-tech mechatronics
• 2013 footwear and leather exports up by 63%: Rishad
• New technology from Germany, Japan and Singapore

Minister Bathiudeen at the leather and footwear industry training unit and the upgraded engineering workshop at the Sri Lanka Institute of Textile and Apparel (SLITA), Ratmalana.

In the aftermath of latest record apparel earnings, Sri Lanka is now entertaining bigger apparel dreams. “Our internationally recognised apparel sector has shown strong performance, and has earned revenues of $ 4.3 billion in 2013. President Mahinda Rajapaksa now wants us to be among the world’s top 10 apparel export countries by 2020,” said Minister of Industry and Commerce Rishad Bathiudeen on 21 March.

Minister Bathiudeen was addressing the inauguration event of the newly established Leather & Footwear Industry Training Unit and the upgraded Engineering Workshop with mechatronics at the Sri Lanka Institute of Textile and Apparel (SLITA) on 21 March in Ratmalana.

The latest SLITA facilities are constructed exclusively with Treasury funding of $ 153,000 (Rs. 20 million), and are the only such industry training centres in Sri Lanka. The Leather and Footwear Centre will train new student intakes at vocational levels on design and manufacturing. The Engineering Workshop with mechatronics is a high-tech venture, equipped with ultramodern machinery from Germany, Japan and Singapore. Automatic pattern sewing machines, electronic button hole and bar-tag machines, double needle lockstitch machines, electronic pneumatic training kits for motion and sensor trainings are some of the latest tech trainings that the students will undergo at SLITA Engineering Workshop.

In 2013, SLITA recorded highest income at $ 1.05 million, which is an increase of 44%, compared to 2012. 92% of this total income came from training, testing and consultancy services of SLITA. This institution has no less than 185 training programs with a total trainee strength of 3,430. Total training income also increased by 34% compared to 2012. SLITA’s 56-strong lecture panel of which 18 are qualified at the Masters level is yet another benchmark in the industry.

Also present on the occasion were Secretary Ministry of Industry and Commerce Anura Siriwardena and SLITA Director General D.N.S. Kuruppumullage

“Today, our Ministry’s Sri Lanka Institute of Textile and Apparel is taking a major step, in its on-going, contribution to Sri Lanka apparel sector. We are commencing a footwear and leather unit and the new, engineering building with high tech as a key event of the on-going development efforts of this institution. SLITA, operating under my Ministry caters to the industry in training, testing, consultancy and technical services. We are pleased, to say that SLITA has a world class testing lab which is internationally accredited and is certified with ISO 17025 and 9001 standards,” said Minister Bathiudeen, and added: “SLITA is only one example of our government’s efforts, to support the apparel industry. Most notably and on behalf of SLITA, I wish to thank the President for the triple deductions provided in the last budget for research and innovation carried out within apparel businesses. This has encouraged the apparel sector greatly for its, strong performance especially in 2013.  “Our internationally recognised apparel sector has earned record revenues of $ 4.3 billion in 2013. This is a historic record for us and shows that we are now moving towards the apparel target of $ 10 billion by 2016 as set by President Mahinda Rajapaksa. Our President also wants us to be among the top 10 apparel export countries of the world by 2020. In 2013 our apparel sector has also entered the G4 manufacturing levels for the first time in partnership with a global multinational, the PVH Corporation. I commend our committed apparel sector for leading our exports performance. I am also thankful to the Treasury for the assistance to upgrade our apparel training facilities.”

Speaking on Lanka’s Footwear and Leather exports, Minister Bathiudeen said: “My Ministry is also in the frontlines of footwear and leather sector development with many initiatives, the latest being this new unit at a cost of $ 153,000 (Rs. 20 million). I am pleased to say that our footwear and leather exports also have shown a record growth trend. In 2012, exports from this sector stood at $ 30 million, and has registered a remarkable 63% increase by 2013, to $ 51 million.”

Sri Lanka’s textile & garment exports soar 23.4% in Jan’14

fibre2fachion.com - 27/03/2014

The exports of textiles and garments from the island nation of Sri Lanka surged by 23.4 percent year-on-year in the first month of 2014, according to a press release on ‘External Sector Performance – January 2014’ issued by the Economics Research Department of the Central Bank of Sri Lanka.

Textiles and garments, which is the main contributor to the growth in industrial exports from Sri Lanka, grew by 23.4 percent to US$ 412 million in January 2014, compared to exports of $333.9 million made during the same month last year.

“The EU and the US continued to be the major markets for textiles and garments of Sri Lanka, representing around 85 percent of total garment exports during the month,” the press release said.

The data also shows a notable increase of 38.3 percent in exports of textiles and garments to non-traditional markets, reflecting greater diversification of markets in the industry, the statement said.

Despite the strong growth in textiles and garment exports, imported inputs into the industry declined by 4.7 percent to $193.6 million during the period under review, as against imports of $203.2 million made during the corresponding month of 2013.

“The continuing decline in imports of textiles and textile articles has been due to the usage of built up raw material stocks, backward integration and production of items at the higher end of the value chain,” the statement said.

In 2013, Sri Lanka’s earnings from textile and garment exports grew by 13 percent year-on-year to $4.508 billion, while its value of imports declined by 9.7 percent year-on-year to $2.045 billion.

Sri Lanka exports up in Jan 2014, trade gap down amid low credit growth

Lanka Business Online - 26/03/2014

Sri Lanka's exports surged 23.3 percent to 728.7 million US dollars in January 2014, and the trade gap narrowed 5.9 percent to 755.9 million US dollars amid low credit growth, official data showed.

Industrial exports rose 23.6 percent to 691.6 million US dollars with apparel also up 23.4 percent to 412.0 million US dollars, the Central Bank said.
Agricultural products grew 14.9 percent to 116.1 million US dollars, with higher prices also coming for tea. The Central Bank said the average export price of tea had risen to 5.31 US dollars per kilogram in January 2014 from 4.58 dollar a year earlier.

Rubber product exports were up 16.6 percent to 73 million US dollars. Petroleum export revenues from bunkers and aviation fuel had fallen 18.4 percent to 33 million US dollars despite a 10.6 percent rise in volume, due to falling prices.

Imports had risen 7.9 percent to 1,654 million US dollars in January from a year earlier. Intermediate goods had rise 22 percent to 1,033 million US dollars with fuel imports up 68.1 percent to US dollars 490 million in January.

Crude oil imports were up 41.2 percent, refined petroleum products were up 85.4 percent and cola by 79.4 percent.

"The increase in imports of refined petroleum products was due to greater dependence on thermal power generation as hydro power generation declined due to the prevailing adverse weather conditions," the Central Bank said.

Imports of inputs to the textile trade had fallen 4.7 percent, partly due to running down of old stocks but also due to greater domestic production of material, the Central Bank said.
Expenditure on of cement clinkers, iron and steel, palm oil, paper and paper boards had increased.

Consumer goods imports had risen 2.7 percent to 254 million US dollars with car imports up 54 percent to 46 million US dollars.

Investment goods imports had fallen 16.8 percent to 366 million US dollars, spending on machinery had fallen 21.3 percent. Building material imports were down 11 percent with aluminium and asbestos falling.

The trade deficit fell by 5.9 percent to 755.9 million US dollars.

A trade deficit is caused when people spend foreign exchange earned through sources other than merchandise exports, such as remittances or exports of labour (up 10 percent to 555.5 million US dollars), and foreign borrowings (exports of debt) and tourism services.

When credit growth is weak, not all external inflows are spent quickly, allowing liquidity to build up in money markets and the central bank to collect reserves by mopping up the rupees.

But the money can be spent later, driving imports up, if the cash is not permanently mopped up, analysts say.

In January private credit was negative. But there have been concerns over possible non productive borrowing by state energy enterprises, due to a steep increase in December, if they do not fully pass on the cost of imports of energy and run losses.

If they fully pass on import costs to their uses, any additional imports are equally squeezed from its customer base, keeping imports, the exchange rate and the economy in balance.

There were inflows 260.5 million US dollars into Treasuries during the month and a billion US dollar bond was also sold in January.

The Central Bank said foreign reserves rose to 8.0 billion in January from 7.2 billion US dollars in December.

6th FOOTWEAR & LEATHER FAIR 2014

6th FOOTWEAR & LEATHER FAIR 2014

7TH TO 9TH FEBRUARY 2014

BMICH- COLOMBO

The Footwear & Leather fair 2014 6th edition

The 6th Footwear & Leather fair 2014 was held from 7th to 9th February 2014 at the Sirimovo Bandaranaike Memorial Exhibition Center concluded successfully.

It was organized by the Sri Lanka Export Development Board in association with the Ministry of Industry & Commerce, Industrial Development Board (IDB) and the Sri Lanka Footwear and Leather Products Manufacturers Association (SLFLPMA).

The Footwear & Leather fair 2014 was ceremonially inaugurated by Hon Basil Rajapaksa Minister of Economic Development. Hon Rishard Bathiudeen, Minister of Industry & Commerce, Hon Lakshman Wasantha Perera, Deputy Minister of Industry & Commerce and Hon. Weerakumara Dissanayaka, Deputy Minister of Traditional industries & Small Enterprise Development were the Guests of honor at this event. Large gathering of diplomats form countries namely Iraq, Italy, Vietnam, Netherlands, Iran, Nigeria, Indonesia, Turkey, India, France, European Union, Libya, Romania, Cuba, Malaysia and Germany was presented at the opening ceremony.

The main objectives of this years’ fair was to strengthen and sustain the image of the industry, to promote Sri Lankan export capabilities among international buyers, providing opportunity for SME’s to improve their talents and capabilities to become export ready companies and to upgrade technological capabilities of SME’s and encourage them to move in to manufacture of value added products to cater to the international market.
There were 107 local companies and 20 foreign companies, amounting total of 225 stalls exhibited their products at the fair. There were 19 Indian companies who are the members of “Indian Footwear Components Manufacturers' Association” (IFCOMA) has participated at the exhibition at the IFCOMA pavilion.

• Special Events 

• Fashion Show

An exclusive Fashion show depicting the latest trends and designs of footwear and leather products held on 8th February 2014 added value to the event and Sri Lanka’s leading footwear and leather products manufacturers/exporters showcased their products at this show.

•  Design Competition

A   Design Competition was organized to provide an opportunity for upcoming young designers to showcase their talents. The competition was held under four categories namely Ladies Footwear, Gents Footwear, Special Category (Sandal or Slipper (ladies & Gents) made out of environmental friendly material) and Leather Products (Ladies hand Bags, Travel bags & Backpacks).
The winners were awarded the gold, silver, bronze trophies and  certificates for each category at Design Award Ceremony which was held on the 09th February 2014.

• Best stall competition

A best stall competition has been organized at the fair with the objective of encouraging companies to showcase their capabilities in a professional and attractive manner by designing their stalls up to international standards.

A trophy and a certificate was awarded to the winner of the best stall competition and certificates for first and second runners up. These awards were presented during the Design Award Ceremony.

B’Desh pushes biosimilar pharma JVs with Sri Lanka

The Island - 21/03/2014

Bangladeshi Health Secretary MN Neaz Uddin (left), Mohammad Sufiur Rahman (Bangladeshi High Commissioner to Sri Lanka- right)

For the first time, a government to government level cooperation effort is emerging to strengthen the supply of a crucial class of medicines in the $450 Mn Lankan pharma market. Bangladeshi pharma sector, which manufactures no less than 450 generic drugs for 5,300 registered brands, is now ready to partner with Sri Lanka to produce vital medicines used by seriously ill patients.

"Our local pharmaceutical manufacturers cater to 97% of the internal demand and they also export. We are ready to support Sri Lanka to produce biosimilar pharmaceuticals such as insulin and finalise them to finish product levels with a guaranteed cold chain. We are ready for government to government level JVs to begin with" said MN Neaz Uddin (Health Secretary, Bangladesh) on March 20 in Colombo.

Bangladeshi Health Secretary Uddin was addressing Rishad Bathiudeen Minister of Industry and Commerce of Sri Lanka at EDB premises in Colombo. Bangladeshi Health Secretary Uddin is in Colombo leading a 10 member strong Bangladeshi health sector delegation to the country.

Biosimilar pharmaceutical products such as insulin, growth hormones, and hepatitis B vaccines are used by critically ill patients. It is estimated that this segment consists of around 9% of Sri Lanka’s $450 overall pharmaceutical market. Bangladesh manufactures more than 450 generic drugs for 5,300 registered brands with 8,300 different forms of dosages and strengths. All top ten pharma manufacturers are of Bangladeshi origin without being multinationals, indicating a strong domestic manufacturing base. When it comes to Bangladeshi pharma exports, Beximo Pharmaceuticals is the leader taking for 19% of its $ 70 Mn pharma exports (in 2012). Bangledesh domestic pharma market alone is estimated to be around $ 1.25 Bn.

"Our local pharmaceutical manufacturers cater to 97% of the internal demand and they also export. We are ready to support Sri Lanka to produce biosimilar pharmaceuticals such as insulin and finalise them to finish product levels with a guaranteed cold chain. This is the first time we are looking at government to government level cooperation in pharma sector between both countries. We also invite Sri Lanka to visit and see some of our pharmaceutical manufacturing plants. We have high quality products and we are very competitive in pricing. Pharma joint ventures are a goal in Bangladeshi-Sri Lanka cooperation" said Bangladeshi Health Secretary Uddin, addressing Minister Bathiudeen.

"A government to government level joint venture can also help reduce our pharmaceutical import bill. Your suggestions are interesting and let us discuss terms and products on this with line agencies here. Our Economic Development Minister Basil Rajapaksa is keen to commence a pharmaceutical zone in Sri Lanka and your initiatives can help advance his vision" said Minister Bathiudeen responding to Bangladeshi Health Secretary Uddin, and added: "We are thankful for your invitation to visit your pharma plants of which we will consider favourably."

Plastics, Rubber make promising start in 2014

Lanka Business today - 22/03/2014

The Plastics and Rubber Industry in Sri Lanka (PRISL), the apex organization focused on the training and development of manpower needed to the emerging requirements of the plastics and rubber based industries in Sri Lanka, has successfully accomplished three significant events

A Joint venture with the Ministry of Industry and Commerce

PRISL achieved a significant milestone in its history of 55 years when it launched a training programme on the practical aspects of rubber processing technology, with the support of Rishad Bathiudeen, Minister of Industry and Commerce.

The official inauguration of the programme was held at the Ministry of Industry and Commerce (MOIC) on January 17, 2014. Anura Siriwardena, Secretary MOIC; Asitha Seneviratne, Additional Secretary, (Developments) and Epa Dayaratne, Director, MOIC also participated in the inauguration ceremony along with Rangith Samarasinghe, President of PRI,and other office bearers.

Fifteen participants selected by careful screening and interviews to follow the course also participated in the ceremony.

MOIC provided 50% of the funds required to conduct the Course as a grant while the balance was provided by the participants or their respective employer companies. It was encouraging to note the participation of SME Sector entrepreneurs from as far as Ampara, and some University students who are doing research projects related to the rubber industry.

Anura Siriwardena in his address stressed the need for establishing Private/ Public Particaption ventures of this nature in moving towards the country’s development targets. Ranjith Samarasinghe, thanked the senior members of the PRI who had worked untiringly with the Sri Lanka Export Development Board and the MOIC over the past two years to make this programme reality.

The Course was initiated on January 18, 2014 at the PRI Auditorium with a simple opening ceremony attended by the Office Bearers and the members of the Education and Events and Seminars Committees of PRISL.

The course, which will be conducted on Saturdays over a period of five months, will include visits to leading rubber product manufacturing companies and   Testing laboratories. A panel of lecturers well experienced and knowledgeable are selected to conduct the lecture sessions.

2 Seminar for sustaining profitability in the rubber industry

On January 23, PRISL conducted a half day seminar for the benefit of the supervisory and operator level personnel of the rubber product manufacturing industries. Forty participants attended the Seminar titled ‘Profitability of rubber product manufacturing in turbulent times’.

The topics were carefully selected to cover productivity, quality and energy management practices and a panel of experienced and knowledgeable resource personnel conducted the sessions whose main emphasis was on the practical aspects of cost savings which can be implemented at shop floor level. The panel discussion which followed generated a good amount of interaction and sharing of experiences among the participants

3 Seminar for sustaining profitability in the plastics industry

Based on the valuable inputs generated at the Seminar in January, PRISL ventured ambitiously to conduct a similar seminar on February 25 for the benefit of the plastics product manufacturing industry in Sri Lanka. The theme of the seminar was ‘Profitability of plastics product manufacturing in turbulent times’. This event was conducted as a joint seminar of PRISL and the Plastic Industry Association of Sri Lanka (PIASL) which is a relatively young organization, focusing mainly on policy issues specific to the plastics industry. The topics selected were on:

Process Controls and Productivity 

5S

Kaizen and Lean Manufacturing and 

Practical aspects of Energy Management. 

An eminent panel of nationally recognized resource personnel conducted the seminar

An unprecedented ninety eight personnel from supervisory and operator levels in the plastics product manufacturing participated in this highly successful seminar which brought forth into limelight the necessity for cooperation, and  collaboration among the organizations in order to achieve  common benefits for the polymer industry in Sri Lanka.

Aslam Omar, Director, Phoenix Industries, which is one of the leading plastic product manufacturing company in Sri Lanka, graced the occasion as the Chief Guest and made a short but thought provoking speech which emphasized the need for considering the turbulent times as a challenge.

PRISL envisages conducting similar events through the rest of the year in line with its core objective of education and knowledge dissemination in the polymer industry in Sri Lanka.

Tribute to Mr. Victor Santiapillai – The First Chairman of EDB

Asian Tribune - 23/03/2014
By : T.K. Premadasa

Victor Santiapillai - First Chairman of EDB

It was deeply saddened to hear the demise of Mr. Victor Santiapillai , the first Chairman of EDB early this month. Nation has lost a great personality who rendered an outstanding performance of duty for development of our Motherland. Mr. Santiapillai was recognized by international business community in high esteem.

Mr. Santiapillai after his preliminary education entered the University of Ceylon for higher studies. Later he joined Sri Lanka Civil Service. He was involved in bi-literal and multi-lateral trade development during his long career representing Sri Lanka at various forums etc. All his life dedicated for the trade development of Sri Lanka. His experience on commercial policy, trade and commodity agreements, market research and trade promotion comprehensively helped economic development of the nation.

Mr. Santiapillai was the Ceylon’s Trade Commissioner in the United Kingdom in the early 1960s and served nearly for 4 years. In 1975 he was appointed as the Executive Director of International Trade Centre (ITC) of the United Nation Conference on Development of Trade and Tariff and work there till 1979. His appointment as Executive Director of ITC brought high reputation for Sri Lanka. He was a legendary jewel of a man worthy of emulation who sacrificed international assignments to assume duties in 1979 as the Head of newly created EDB in favor of Sri Lanka

Mr. Santiapillai, the erudite scholar became the first Chairman of Sri Lanka Export Development Board with his name glow writ large in letters of gold in EDB history. His credibility and generosity not only captured the influence of the international community but also helped development of cordial relationship with other nations.

In the latter part of 1970s, Sri Lanka introduced market oriented economy also known as open economy. The main objective of market economic policy was to remove the barriers in trade locally and create export oriented economy. The main goal of creating export oriented economy was to develop product and services from Sri Lanka to present to the giant world market.

It was a huge challenge for Sri Lanka to deal with abrupt change from import substitute economy to export oriented economy. But the objective became a complete success as guided by intellectuals like Mr. Santiapillai. He infused unity and cooperation through which he reached progress.

It has been realized the necessity of a complete institutional framework and infrastructure in order to achieve the goals of Export Oriented economy. The establishment of Sri Lanka Export Development Board, apex body for export development was a fulfillment of national need for institutional framework for development and promotion of export trade.

The writer has written an article on the subject, “A Recollection of Collective Victory” at the 33rd Anniversary of EDB highlighting the victories of EDB. 90% of the activities were introduced during the tenure of Mr Santhiapillai as the Chairman of EDB. It would be appropriate to highlight the few work performed in tribute to the Great Leader. Implementation of Export Development Plan, Exporters’ Forum, Presidential Export Awards, Export performance oriented incentive payment scheme, Buyer seller Meets are a few areas.

The writer recall the warm welcome extended to all the six newly appointed officers including the writer offering his best wishes on their first day of assumption of duty at EDB in June 1981. He was a humble gentleman to his finger tips. The exemplary manner in which he taught us to be duty conscious to the nation with proper guidance was commendable. It was his dedicated hard work that EDB rose to the loftiest heights of glory in export development. The writer can assure that he never abused his privileges in the capacity as the Chairman of EDB to build up his image. High reputation acclaimed by him around the globe was indomitable. Most of the benefits being enjoyed today are regarded as fruition of his inspiring leadership. We all owe a debt of gratitude to this Great Son of Mother Lanka for his magnificent contribution made in silence to impress the world over of the competent prowess of our nation.

It would be more appropriate to quote Mr. Lalith Athulathmudai’s comments on Mr Santiapillai to end this note. In reply to a question raised by opposition at the Presentation of Export Development Board Bill in parliament in 1979, Mr. Lalith Athulathmudali said, “Chairman is Mr. Victor Santiapillai , the Secretary General of UNCTAD – GATT ITC – International Trade Centre – with world wide experience on this subject. I thought he was the best man to be influenced for his contribution to the benefit of the Motherland. He will be appointed as new Chairman of EDB.”

Encouraged by Mr. Santiapillai’s invaluable service to the country, the writer humbly pays his highest tribute to this Proud Son of Mother Lanka.

Norwegian GSP+ opens $ 100 b market for Sri Lanka

Daily Finance Times - 20/03/2014

• Norwegian Customs offers hands-on support in Colombo for first time
• Post-war Lanka demonstrated strong growth: Norwegian Ambassador
• Norwegian openings for Lankan textiles, tea and rice: Norwegian Customs
• 'Norway a gateway to Scandinavian market: EDB’s Egodage

As bilateral trade soared by a strong 26%, Norway, the gateway market to Scandinavia and the third highest per capita market in the world, called Sri Lanka on 18 March to step forward and grab promising opportunities available with it.

“There are many niche markets for your products and new opportunities are available in Norway. The new Norwegian GSP Plus involves lower middle income countries with populations of less than 75 million. Sri Lanka therefore qualifies as a GSP Plus country. As result, Sri Lanka now receives better market access to Norway,” announced Ambassador of Norway in Colombo Grete Lochem on Tuesday.
Lochem was addressing the EDB-facilitated seminar on the Norway GSP+ scheme at the EDB auditorium, Colombo.

Present at the session were Minister of Industry and Commerce Rishad Bathiudeen, EDB Chairman/CEO Bandula Egodage and top EDB officials. Also taking part were Directorate of Norwegian Customs and Excise Department of Customs Senior Adviser Susann Nilsenn and Directorate of Norwegian Customs and Excise Department of Customs Assistant Director Cecilie G. Alnaes.

This is the first time that top officials from the Directorate of Norwegian Customs and Excise Department of Customs were in Colombo at hand to clarify issues for Lankan exporters.

The Norwegian import market potential is estimated to be $ 100 b. It is considered to be a high purchasing power market due to it being the third highest GDP per capita nation in the world; GDP/capita PPP of nearly US$ 55,000.

Norway has concluded 25 preferential free trade agreements through EFTA, while negotiations are underway with a number of free trade partners. The new Norwegian GSP+ is not a part of the EU’s GSP assistance scheme.

“Our total bilateral trade with Norway has increased by 26% to $ 31.83 million since 2008. The balance of trade is in our favour. Apparel is the main export item to Norway from Sri Lanka, taking 38% of the total exports in 2012,” said Bathiudeen, noting that Sri Lanka is targeting an export goal of US$ 20 billion by 2020 as per the vision of President Mahinda Rajapaksa.

Market access for countries like Sri Lanka, through supportive schemes including the new Norway GSP Plus schemes, has been playing an important role in Sri Lanka’s export competitiveness, he asserted, adding that in this context it will be more important to explore the possibilities of widening Sri Lanka’s access to markets through such promising schemes.

“Sri Lanka has been benefiting from the Norwegian GSP general facility from 1972 and has now met the criteria to enjoy the Norwegian GSP Plus status from this year. The door is now open for our exporters to this highly promising $ 100 b market. From the SAARC region Sri Lanka enjoys Norwegian GSP Plus benefits on the basis of lower middle income categorisation. Sri Lanka appreciates the Government of Norway’s generous support in providing the GSP Plus facility. I am hopeful that the Government of Norway will maintain the same position in future in line with the principles of WTO. I am therefore very optimistic that today’s initiative will benefit our export community, especially manufactured products such as apparel, as well as agricultural products, including tea,” Bathiudeen outlined.

Pointing out that Sri Lanka has demonstrated strong economic growth since the war ended, Lochem addressing the session stated: “Progress has been made in service and manufacturing sectors. There is development in infrastructure – ports and roads. But Sri Lanka is experiencing a trade deficit, importing much more than exporting. In invoking Norway-Sri Lanka commercial cooperation, it’s the hard work of everybody that is involved. There are trade opportunities to expand trade and investment. Today Norwegian Customs officials are especially present here to answer all your questions on the Norway market. Let’s hope there will be more exports from Sri Lanka to Norway.”

Meanwhile, EDB Chairman/CEO Bandula Egodage stated that Norway offers a potential market for Sri Lanka with an import market of nearly US$ 100 billion and a per capita GDP that is the highest in Europe, recording over US$ 55,000.

“We all know that Norway is rich in terms of petroleum, hydropower, fish, forests and minerals. Besides, Norway could be an entry point for us for looking at the larger Scandinavian market, which includes Sweden, Denmark and Finland, with a combined population of over 25 million and a GDP of over US$ 1,100 billion,” Egodage added.

Directorate of Norwegian Customs and Excise Department of Customs Senior Adviser Susann Nilsenn, addressing the Lankan exporters, said: “As a GSP+ country, Sri Lanka will receive a better offer than ordinary GSP countries. You will get duty free access for goods under Chapters 61-63, as well as 50% or 100% duty free access for certain agricultural goods. There are no demands in the Norwegian GSP system relating to implementation of core international conventions on human and labour rights, sustainable development and good governance. The Norwegian GSP system is amended every three years. We don’t have any textile production in Norway, no tea production and no rice production, therefore exporters of such items have a ready opening. Sri Lanka is in Group 3 in regional cumulation; Group 3 countries are Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka.”

Kithulaka Varuna Exhibition and Trade Fair at Sudarshi Sinhala Cultural Centre

Daily Finance Times - 21/03/2014

The Ministry of Traditional Industries and Small Enterprise Development has organised the Kithulaka Varuna Exhibition and Trade Fair from 4 to 6 April 2014 at the premises of the Sudarshi Sinhala Cultural Centre opposite the BMICH.

This is an annual exhibition and trade fair held every year before the Sinhala and Tamil New Year to popularise and promote Kithul products. This exhibition will be opened to the public from 9 a.m. to 9 p.m. on all three days. Admission is free and it is open for public.

Minister of Economic Development Basil Rajapaksa will be the Chief Guest for this program, along with Minister of Traditional Industries and Small Enterprise Development Douglas Devananda providing the leadership and strategic guidance to take the kithul sector forward with the support of the Deputy Minister Weerakumara Dissanayake.

Secretary, Ministry of Traditional Industries and Small Enterprise Development V. Sivagnanasothy said that this three day exhibition and trade fair has been organised by the ministry with its implementing agency the Industrial Development Board (IDB) and with the participation of other stakeholders such as the Industrial Technology Institute (ITI), National Engineering Research and Development Centre (NERD), Sri Lanka Standard Institute (SLSI), Department of Export Agriculture, Department of Forests and Export Development Board (EDB).

Fifty (50) trade stalls have been established to exhibit and showcase the quality kithul products and provide market opportunities to the kithul producers to sell their products directly to the consumers. The producers will exhibit kithul treacle and jaggery, kithul flour (Piti), kithul based food and beverages such as pudding, halapa, thalapa, kithul pitti kandha, handicrafts, timber and furniture etc. Among the exhibitors, an assessment will be made to select the high quality Kithul products and producers to recognise, motivate and encourage and work towards high quality products. The best performers will be given awards and certificates.

Further, in all three days a demonstration training session will be organised for housewives, women, home based entrepreneurs and for those who are interested on preparing Kithul based food and beverages. This demonstration session will be conducted by the Sri Lanka Institute of Tourism and Hotel Management. This exhibition and trade fair will offer great opportunities for consumers to purchase high quality kithul treacle and jaggery to meet the Sinhala – Tamil New Year requirements. Moreover, producers have opportunities to interact with the exporters and establish sustainable long term buy back arrangements.

Declaration of Kithul Promotion and Consumption Week

The Ministry has initiated action to declare the first week of April 2014 (from 1 to 6 April) as Kithul Promotion and Consumption Week to coincide with the Kithulaka Varuna Exhibition and Trade Fair. It is scheduled to hold awareness programs at the district level, distribute nursery plants to kithul producers, create awareness among school children and university students on the nutritional, medicinal and health values, promote the products among tourists and general public and other related programs will be conducted to popularise and promote the kithul sector.

Kithul industry underutilised 

The kithul traditional industry which is over thousand years old and the indigenous traditional techniques and skills have been transferred from generation to generation need to be further supported, strengthened and upgraded and harnessed to realize the foreign exchange earning potential of the kithul sector.

Under the Mahinda Chintana – Vision for the Future – the national development strategy, the kithul sector has been identified as a rural economic development strategy for the development of livelihood, self employment, income generation and poverty reduction in the rural sector and facilitates the flow of foreign exchange directly to the villages.

The surveys undertaken by the ministry in partnership with the Department of Census and Statistics revealed that there are 3 million kithul trees in 18 districts which includes Ratnapura, Kandy, Badulla, Moneragala, Matara, Kegalle, Nuwara Eliya, Kalutara, Galle, Kurunegala, Matale, Hambantota, Colombo, Gampaha, Ampara, Anuradhapura, Polonnaruwa and Puttalam. Currently, there are over 35,000 tappers in all 18 districts. Of the 3 million trees, there are around 600,000 matured trees of which about 120,000 trees are currently being tapped. This is about 20%.  Therefore, there is a need to improve the tapping of the balance trees.

Nutritional products with export potential

On the other hand, kithul treacle and jaggery have been identified as nutritional and healthy products and believed to have a low Glycaemic Index value among sweeteners and as such it is claimed that it will not have an effect on the blood sugar level. Hence, pure kithul is widely believed as an ideal sweetener for diabetes patients.

The rapidly increasing export earnings very clearly demonstrate the very high export potential for kithul products. It is reported that the kithul treacle and jaggery export earnings was Rs. 26 million in 2011, Rs. 58 million in 2012 and Rs. 68 million in 2013. There is an increasing demand for Sri Lankan kithul in international markets such as Japan, Malaysia, and USA. Historical evidence has also revealed that Sri Lankan kithul products were also exported to Great Britain, Belgium, Germany, France, the Netherlands and several European countries.

License not required for tapping

The Excise Ordinance has been amended to enable the tapping of kithul trees without having to obtain special permits. Moreover, the removal of this impediment has been widely disseminated and awareness has been created among all Divisional Secretaries, Police officers and Excise Department officials.

Under the Mahinda Chintana – Vision for the Future the Ministry of Traditional Industries and Small Enterprise Development is implementing the National Kithul Development Program to strengthen this sector as a commercially profitable sector. The average monthly income obtained from a single kithul flower is in the range of Rs. 15,000 to Rs. 25,000. Moreover, it can significantly contribute to reduce the import of sugar and serve as a healthy sweetener in the international market.

National Kithul Development Program: Rural Economic Development Strategy

Secretary, Ministry of Traditional Industries and Small Enterprise Development V. Sivagnanasothy stated that the President’s budget proposal 2013 emphasised kithul development in Sabaragamuwa Province. The National Kithul Development Program has taken the following strategic interventions and initiatives to promote this sector.

Tappers Training Program and Master Training Programs to increase the number of tappers and impart tapping skills to young generation.

Provision of safety kits for kithul tappers (safety jacket, helmet, belt, knife etc.) and introduction of insurance schemes to mitigate the risk of climbing related accidents and life threats of kithul tappers.
Introduction of traditional and kasper technology to increase the sap yield and bring unproductive trees into the tapping process and increase the sap yield.

Quality improvement for kithul treacle and jaggery (GMP, SLS certification, cost effective stoves, brix meters, PH meters and devices to assess the level adulteration) to enable it to compete with other sweeteners such as maple syrup of Canada.

Registration and issue of identity cards to recognise kithul producers and overcome legal impediments.
Facilitation to link the kithul producers with large scale exporters including buy-back arrangements, placing the kithul products in city cops, super markets and franchising in the private sector and establish model sales outlets with high quality kithul products.

Nursery development and kithul plantation to increase the number of kithul trees in the country and convert it as a commercial operation.

Developing of user-friendly tapping system to reduce the risk of climbing – suitable elevators for climbing kithul trees.

Promote, demonstrate and encourage kithul based value added food and beverage products

Research and development
Introduce kithul as a nutritional and healthy sweetener by analysing its medicinal and nutritional contents.
Nutritional labelling of kithul products.
Preserving sap from fermentation to enable it to produce more treacle and jaggery instead of toddy.
Prevention of melting of jaggery and appropriate packing.
The Ministry is giving very high importance to the kithul sector to develop it as a dynamic export oriented sector that will benefit the rural economy.

EDB organises Lanka pavilion for Kunming Fair

Daily News - 19/03/2014

The Sri Lanka Export Development Board (EDB) in collaboration with the Sri Lanka Embassy in China will organize a Sri Lanka pavilion at the second China South Asia Exposition to be held at the Kunming International Convention and Exhibition Centre, from June 6 to 10, 2014

This exposition is sponsored by the Ministry of Commerce of China and the Government of Yunnan province to promote import products from the South Asian region .

Applications are expected from manufacturers and exporters from the categories such as food and beverages (tea, spices and kitchen essentials, processed food products, fish and related fishery products and fresh fruits and vegetables), agri products (cut flowers and foliage, coir and coir products), gems and jewellery, garments and textiles, ceramics and porcelain products, handicrafts (high quality handicrafts, batiks, artificial fashion jewellery), healthcare products (herbal products, personal care products) finally industrial products such as rubber and based products, paints and varnishes, automobile spare parts, bicycle products, electrical products and activated carbon.

The organizers in China will provide an effective publicity agenda to attract the local business representatives to the fair, thus providing the participants with a good opportunity to establish a good recognition in the import market. The organizers will also arrange one to one business interactions and corporate match making meetings for the attendants, in order to conduct clear presentations for the business visitors.

The shortlisted applicants will first be interviewed by the selection committee and selected companies will be provided stall space of 9sqmt with brick fixtures and fittings.

Applications can be obtained at the Market Development Division EDB or from the EDB website www.srilanka business.com, should be submitted to the Director/Market Development to reach before March 25,2014. 

Steps taken to expand Gem and Jewelry exports

news.lk - 18/03/2014

Sri Lanka’s Gem and Jewelry Industry is emerging as one of the biggest foreign exchange earning industry for the country. The Gem and Jewellery Authority has implemented many measures to uplift the industry.

These includes holding periodical exhibitions locally and in foreign countries and providing facilities for gem miners and establishing partnerships with other gem exporting countries in the world.

As a result of these activities Myanmar has invited Sri Lanka to establish cooperation in the industry.  Deputy Minister of Industry and Commerce Lakshman Wasantha Perera said that with this new initiative from Myanmar we could establish new industries both local and foreign to enable us to generate huge employment opportunities locally and overseas, in addition to development of Sri Lankan exports.

He said that there are possibilities of importing rough stones and re-exporting them with high value added finished products.

In 2012 Sri Lanka exported Rs.111 million worth of gems and, diamond re-exports amounted to over Rs. 410 million.  Plans have been made to increase the revenue from Gem exports to Rs. One Billion by the year 2015.

Initiative to jumpstart Palestine - SL trade

The Island - 18/03/2014

Minister of Industry and Commerce of Sri Lanka-far right Rishad Bathiudeen prepares for the interview with Mai Bakry (presenter, "Palestine TV") on 07 March in Colombo. Third from right (standing) is Anwer al-Agha, Palestine Ambassador to Colombo.

Bilateral trade needs to be revived first, before moving for such trade mechanisms as FTAs when it comes to trade with the virgin market of Palestinian Territories. "FTA with the Palestinian Territories is a good idea but with non-existent trade at present, it is too early for it" said Minister of Industry and Commerce Rishad Bathiudeen.

Minister Bathiudeen was speaking to Ms Mai Bakry, presenter of "Palestine TV" on March 07 in Colombo when he was interviewed for the channel.

"Sri Lanka has entered into a new economic development phase thanks to President Mahinda Rajapoaksa. We are now a lower middle income country focusing to develop as a commercial hub in this region. Sri Lanka and the State of Palestine are maintaining very cordial relations over the years. The recent visit of President Mahinda Rajapaksa to Palestine has further enhanced and strengthened relations between the two countries" Minister Bathiudeen said, introducing Sri Lankan economy to Palestinian viewers. "However, bilateral trade, between the two countries is low and almost negligible. This shows that there is very strong unrealised trade potential at both ends" Minister Bathiudeen added.

Sri Lanka’s total trade with Palestine Territories stood at $ 0.02 Mn in 2010. Thereafter the values fell to almost negligible amounts.

When asked by Bakry on current bilateral trade reality, Minister Bathiudeen responded: "The export values are very low at only $ 0.02 Mn! No imports from Palestine. Our exports to Palestine are only some yarn and vegetable oil."

When asked by Bakry on the potentials for FTAs with Palestine Territories, Minister Bathiudeen responded: "FTA? There is a need to work to enhance bilateral trade and business. FTA with the Palestinian Territories is a good idea no doubt but with non-existent trade at present between our countries, it is too early for it."

On practical steps to revive trade, Minister Bathiudeen said: "In view of the low trade, during my meeting with Dr. Ms. Khuloud Daibes, Palestinian Minister of Tourism, in April 2012 in Colombo, I expressed our country’s interest to create a "Sri Lanka - Palestine Joint Investment Forum" to increase bilateral trade. I believe that we can work to establish such a mechanism which is a promising starting point for both partners."

Explaining the investment opportunities in Sri Lanka for Palestinian investors, Minister Bathiudeen said: "There are many opportunities in Sri Lanka for Palestinian business community, in diverse sectors for trade and investment. Opportunities are also, available under the Indo-Sri Lanka Free Trade Agreement and Pakistan-Sri Lanka Free Trade Agreement. Also, I stress tourism. Middle Eastern tourists including from Palestine, are now more and more aware about Sri Lanka than before. We invite the Palestinian business delegation, to visit Sri Lanka to explore the opportunities available for them. My ministry will provide all the support and assistance to investors from Palestine. 100% ownership for, Palestinian investments also ensured. Palestinian investments in Sri Lanka are guaranteed by the constitution as well."

Exclusive Myanmar gem zone for Sri Lanka

Daily Finance Times - 17/03/2014

Sri Lanka’s gem mining industry is set to turn a new chapter as Myanmar has invited the country for unprecedented cooperation efforts across many sectors. “I am pleased to say that the follow-up delegation as a result of President Mahinda Rajapaksa’s visit to BIMSTEC in Myanmar has reaped great success. I am quite confident that, with this initiative, we could establish new industries both local and foreign, to enable us to generate huge employment opportunities locally and overseas, in addition to development of exports of Sri Lanka,” revealed Deputy Minister of Industry and Commerce Lakshman Wasantha Perera.

Deputy Minister Perera was speaking in the aftermath of his ministerial meetings with members of the Myanmar Cabinet in Myanmar.  Deputy Minister of Industry and Commerce Lakshman Wasantha Perera led the 15 member strong Sri Lankan delegation to the Myanmar Construction Summit held in the country’s capital city Naypyidaw.

Deputy Minister Perera’s delegation was organised by the Export Development Board, and consisted of EDB Chairman and CEO Bandula Egodage and representatives from 12 leading Sri Lankan construction firms as well as EDB officials, accompanied by Sri Lanka’s Ambassador to Myanmar H.R. Piyasiri.

Deputy Minister Perera’s delegation is a follow up to the recent visit of President Mahinda Rajapaksa to the BIMSTEC summit in Myanmar. During his visit, Deputy Minister Perera called on Union Minister of Mines Dr. Myint Aung, Union Minister of Construction U. Kyaw Lwin and Union Minister of Commerce U.Win Myint.

During Deputy Minister Perera’s meeting with Minister Dr. Myint Aung, held on 10 March, the usage of high technology for gem mining was the key highlight, but also focused on the possibilities of having a dedicated Sri Lankan gem mining zone in Myanmar with the added potential of ample employment opportunities for Lankans. This development is in spite of foreign gem mining being still not allowed in Myanmar.

In order to improve the efficiency and value addition to the total industry, usage possibilities of latest gems identification technology (CNC) by both countries was also discussed. Possibilities of importing rough stones and re-exporting with high value added (cutting/polishing) finished products was yet another topic that received the attention of both parties.

Sri Lanka’s offer of green housing technology was the key topic at Deputy Minister Perera’s meeting with U. Kyaw Lwin (Union Minister of Construction of Myanmar) on 10 March. Sri Lanka has offered low cost, environment friendly, green housing construction technology to Myanmar. Realising that construction plays a vital role in the development, both parties agreed for a follow up session in the due course.

During Deputy Minister Perera’s meeting with U. Win Myint (Union Minister of Commerce of Myanmar), technology upgrading in the processing of gram, pepper and agricultural products took place. Production of biogas from food waste and paddy husk was also tabled during the session.

The Government of Myanmar principally agreed to obtain proposed Sri Lankan high technology for Myanmar industries –including gem mining, low cost construction of housing and buildings, and agricultural process engineering.

Export Development Board, along with the Ministry of Industry and Commerce, will submit project proposals to the Government of Myanmar, in consultation with Ministries/Agencies of Environment, Gem and Jewellery authority, Housing and Construction, and Department of Agriculture, in the near future.

China starts first Sri Lanka value chain study

Daily Nation - 12/03/2014

Sujatha Weerakoon, Director General, EDB-far right, addresses Peng Jinhuo, Division Head of Inspection and Quarantine Authority (seated front row, far right in brown outfit)

Strengthening bilateral trade cooperation further, China’s powerful official organ in charge of import commodity inspections, has despatched its first expert study team to Sri Lanka, signalling that China is opening for Sri Lanka’s agro-exports.

The official quarantine study team from the powerful official organ in charge of import commodity inspections, Administration of Quality Supervision, Inspection and Quarantine of the People’s Republic of China (ADSIQ-China) has arrived in Sri Lanka on 05 February and begun work on 06 February, by liaising with the EDB. The three member team is scheduled to return to China on 12 March.

During his official visit to Kunming, China in June 2012, Minister Trade and Industry Minister Rishad Bathiudeen made an official request to Gu Zhaoxi, Deputy Governor of People’s Government of Yunnan Province on China’s quarantining of Sri Lankan perishables. The EDB under Minister Bathiudeen was informed by Lankan exporters of the difficulties when exporting fresh agricultural products to China which Minister Bathiudeen was representing to Chinese officials.

Thereafter, Administration of Quality Supervision, Inspection and Quarantine of the People’s Republic of China (ADSIQ-China) through the Sri Lankan Embassy in China, sent a questionnaire on the Pest Risk Analysis (PRA) requesting information to proceed with the quarantine protocol of China enabling them to consider granting approval and in July 2012 requested to prioritise the products and to request approval accordingly.

Thereafter, based on Chinese export market potentials, Mango, Banana and Pineapple were selected at the initial stage while on EDBs request, the National Plant Quarantine Service of Department of Agriculture had submitted a PRA to obtain Chinese market access for these three fruits. The EDB subsequently forwarded the same to the ADSIQ through the Sri Lankan Embassy in China.

“When it comes to China-Sri Lanka bilateral trade, we in China lack knowledge on the production processes of Sri Lankan agro sector” said Peng Jinhuo, Division Head of Inspection and Quarantine Authority (Liaoning based), who leads the team to Sri Lanka. “Our main objective during this tour is the capacity evaluation of Sri Lanka’s banana value chain. In that, we are looking for first-hand learning of value chains. We also want to learn of Sri Lankan rules on agro exports” added Jinhuo.

“We welcome you to study our agro products” said Sujatha Weerakoon (Director General, EDB) addressing Division Head Jinhuo, and said: “Our agro exports have strong standing in international markets. It is time that China experience them too.”

A presentation by Dr DPP Jayakodi (Additional Director, National Plant Quarantine Service) on quarantine procedures used in Sri Lanka exports, was also made to the visiting Chinese delegation at the EDB.

According to the Department of Commerce, Sri Lanka’s bilateral trade with China stood at $ 2.67 Bn, with the balance of trade in favour of China. Apparel, mineral sands, mattress fiber, coir fiber, rubber and tea (bulk) and tyres and tubes are the top Sri Lankan exports to China.  In 2012, China bought $ 0.02 Mn of fruits from Sri Lanka (including bananas). Biggest importer of Sri Lankan fruits in 2012 was Saudi Arabia ($ 4.28 Mn of fruits), followed by India, UAE, Maldives, Qatar and 33 other countries. According to the EDB, Sri Lanka’s total fruit exports in 2012 stood at $ 18.69 Mn.

‘75% of our exporters are SMEs’

The Island - 14/03/2014

Sujatha Weerakoon (DG-EDB-far left) addresses the audience at EDB facilitated Internationalisation of SMEs session by PUM Netherlands senior experts on March 14. Seated at head table (at centre) is Dutch Tech Transfer Expert Cees Van Dijl.

SMEs are the backbone of our economy and more importantly, they are at the level of exports too! "Of the more than 4000 of Sri Lankan export firms, 75% are SMEs. Therefore we have a huge responsibility to groom them to become large scale export firms" said Sujatha Weerakoon (DG-EDB).

DG-EDB Weerakoon was addressing the EDB facilitated "Internationalisation of SMEs session by PUM Netherlands senior experts" session held at EDB on March 14.

"Large firms do the exports on their own but we have to have a strong second tier. EDB is looking at SMEs very seriously, closely, allocating a whole division within EDB for its development. PUM senior experts are offering their valuable services free of charge and we can utilise their services to strengthen SME capacity building and go to the next level in exports. I am thankful for PUM Netherlands and more importantly to the government of Netherlands for the support given to us. In fact, the government of Netherlands has increased its expert supply quota to Sri Lanka."

"The Netherland government backed PUM Netherlands senior experts program operates in 70 countries in almost all sectors" said Dutch Tech Transfer Expert Cees Van Dijl, addressing the event. "We connect entrepreneurs in developing countries and emerging markets with senior experts from the Netherlands each of whom has gained at least 30 years of experience in a business environment. Our Sri Lanka support and consultancy are absolutely free! Our 3,200 volunteers advise 2,000 entrepreneurs annually in almost every field imaginable: from logistics to welding techniques, and from the hotel & catering trade to carpentry. PUM is already supporting more than 350 SMEs in Sri Lanka" Van Dijl added.

China starts Sri Lanka agro value chain studies

The Island - 13/03/2014

Fujian, China’s emerging high growth province, is eager for more Sri Lankan exports to its demanding marketplace-and a visiting delegation to Colombo pushed for direct links with Lankan businesses on 06 March in Colombo. "Sri Lanka has been rebuilt as the pearl of the Indian Ocean. And I agree with you that both sides can mutually benefit in many sectors of cooperation, including trade. In fact, we want Sri Lanka – Fujian trade to grow in Sri Lanka’s favour" said a keen (HE) Song Kening (Director-General of Fujian Provincial Foreign Affairs) on 06 March in Colombo.

Director-General Kening was addressing the Sri Lankan business team led by Bandula Egodage (Chairman/CEO, EDB) along with Dr Yousuf Maraikkar (ED, EDB), Sujatha Weerakoone (DG, EDB) and EDB sectoral representatives on 06 March at EDB premises, Colombo.

Director-General Kening is now in Colombo on a three day official visit leading a 21-member strong business and investment delegation (which he termed as an Economic delegation) from Fujian Province, China, facilitated by EDB (for B2B as well as networking). Director-General Kening, who handles foreign relations of Fujian, is in par with the rank of any Chinese Provincial Foreign Minister.

Among the leading Fujian firms and institutions in this Fujian delegation on 06 March were China National Engineering Research Centre of JUNCAO Technology, Fujian Agriculture & Forestry University, Centron Communication Technologies Fujian Co, Fuzhon Xinbei Bio-Chemical Industry Co, Yuangdong Huamei electric Motors, Gold Billras Water Environmental Engineering Co, Fujian Minwell Industrial Co, Fujian ABLE Motor Group Co, Ningde Junlv Agriculture Co, Ningde Hongdi Hotel Co, Fuzon Fanrong Jewelry Co, and Beijing Guo Chatang Health Technological Development Co. Among the Sri Lankan biz taking part, facilitated by EDB, were Tropical Foods, Global Seafoods, Hayleys Fibre, Micro Cars PLC, Diesel & Motor Engineering PLC (DIMO), Electronics Manufacturers and Exporters Association of Sri Lanka, Ceylon National Chamber of Industries, SLAMERP, Raigam Marketing, Global Rubber Industries, COSTI, Nature’s Beauty Creations, Sri Lanka Chamber of Garment Exporters and FGM Lanka, among others. During 06 March meeting, Lankan fisheries/seafood, tea, gem & jewellery, tourism, electronics and cosmetics appeared to have drawn the immediate attention of the visiting Fujian delegation.

China’s Fujian business delegation in town

Daily Nation - 07/03/2014

Bandula Egodage, Chairman/CEO, EDB-right, meets Song Kening, Director-General of Fujian Provincial Foreign Affairs-seated next to Mr Egodage

Visiting business delegation from China’s emerging high growth province Fujian has shown interest in more Lankan exports into its demanding marketplace and has pushed for direct links with Lankan businesses.

“Sri Lanka has been rebuilt as the pearl of the Indian Ocean. And I agree with you that both sides can mutually benefit in many sectors of cooperation, including trade. In fact, we want Sri Lanka – Fujian trade to grow in Sri Lanka’s favour” said Director-General of Fujian Provincial Foreign affairs Kening addressing the Sri Lankan business team led by Bandula Egodage, Chairman/CEO, EDB along with Dr Yousuf Maraikkar ,ED, EDB, Sujatha Weerakoone DG, EDB and EDB sectoral representatives.

Kening is now in Colombo on a three day official visit leading a 21-member strong business and investment delegation (which he termed as an Economic delegation) from Fujian Province, China, facilitated by EDB (for B2B as well as networking). Kening, who handles foreign relations of Fujian, is in par with the rank of any Chinese Provincial Foreign Minister.

Among the leading Fujian firms and institutions in the delegation were China National Engineering Research Centre of JUNCAO Technology, Fujian Agriculture & Forestry University, Centron Communication Technologies  Fujian Co, Fuzhon Xinbei Bio-Chemical Industry Co, Yuangdong Huamei electric Motors, Gold Billras Water Environmental Engineering Co, Fujian Minwell Industrial Co, Fujian ABLE Motor Group Co, Ningde Junlv Agriculture Co, Ningde Hongdi Hotel Co, Fuzon Fanrong Jewelry Co, and Beijing Guo Chatang Health Technological Development Co.

Among the Sri Lankan biz taking part, facilitated by EDB, were Tropical Foods, Global Seafoods, Hayleys Fibre, Micro Cars PLC, Diesel & Motor Engineering PLC (DIMO), Electronics Manufacturers and Exporters Association of Sri Lanka, Ceylon National Chamber of Industries, SLAMERP, Raigam Marketing, Global Rubber Industries, COSTI, Nature’s Beauty Creations, Sri Lanka Chamber of Garment Exporters and FGM Lanka, among others. During 06 Thursday’s meeting, Lankan fisheries/seafood, tea, gem & jewellery, tourism, electronics and cosmetics appeared to have drawn the immediate attention of the visiting Fujian delegation.

“Investment, tourism and trade –all these are aspects of commercial diplomacy” said EDB Chairman/CEO Egodage, who warmly welcomed Fujian Director-General Kening and the delegation to EDB. “We should not restrict ourselves to discussions but also set up an action plan after this session. I also urge potential partners at both sides to forge direct contacts with each other right here. Both sides can mutually benefit in many sectors of cooperation, including trade” Egodage added.

“Sri Lanka has been rebuilt as the pearl of the Indian Ocean. And I agree with you that both sides can mutually benefit in many sectors of cooperation, including trade” responded Director-General Kening, and added: “Post-war Sri Lanka’s economic momentum is good. We are confident of Sri Lanka’s progress and very happy to partner with Sri Lanka.

There is also good cooperation between people of Sri Lanka and Fujian and Fujian government attaches great importance to this connection. With this visit, we aim for stronger ties, friendship and networking mechanism. This delegation is only 21 members but they represent the typical business sector of Fujian. During this visit, we want to establish direct links with Lankan entrepreneurs and Fujian businesses. We sincerely appreciate Sri Lanka EDB’s efforts to this end. In 2013, Fujian province exported $ 170 Mn to Sri Lanka while it imported only $ 13 Mn goods from Sri Lanka. We want Sri Lanka – Fujian trade to grow in Sri Lanka’s favour.

With this latest initiative, there is opportunity for more Sri Lankan products to enter the Fujian market. Lack of natural disasters, strong ocean resources and access, mild, stable year-round weather are very attractive “Lankan factors” for Fujian businesses and investors. You see, China is a huge seafood consumer. Many Lankan seafood exporters present here today arranged by EDB, are therefore a very encouraging situation to us!”

Sri Lanka German trade tops US$ 852 mn

Daily News - 10/03/2014

A visitor making enquiries at the Sri Lankan ITB stand 

Sri Lanka German trade has hit record heights last year with the total trade turnover exceeding US$ 852 million.

G. L. Gnanatheva, First Secretary (Commercial) Sri Lankan Embassy in Germany said that total trade turnover was in the excess of US $ 771million. In 2012 Sri Lanka exported goods to Germany to the tune of US$ 452 million while German exports to Sri Lanka stood at US$ 319

He said that for the first time trade balance too has narrowed from US$133 million to US$ 83 million.

Sri Lankan exports to Germany included tea, apparels and electronic equipment based products manufactured in the Free Trade Zone.

He said that most of the exports from Germany to Sri Lanka are automobiles with Mercedes Benz and BMW leading the way. Other exports from Germany to Sri Lanka include medical equipment and machinery.

Sri Lanka German diplomatic relations are very strong and cordial and this too was a reason for additional trade.

He also said that Sri Lanka is a preferred destination for German tourists which is currently number three to Sri Lanka. Over a decade ago Germany was the highest tourism contributor to Sri Lanka.

Germany is Sri Lanka's second largest investor from the European Union. Many of the German companies operating in Sri Lanka are global leaders in their field. 

Cinnamon exports rise by 6.4% to $ 129.5 mn

Daily News - 03/03/2014

Bandula Egodage (Chairman/CEO, EDB-at centre) with Dr Yousuf Maraikkar (ED, EDB-left) and Sujatha Weerakoone (DG, EDB-right)

Ceylon Cinnamon, which is Sri Lanka’s second global brand, has secured its trademark in two more leading markets-with one more country application in the registration process. ”I commend the EDB’s Agro division for their efforts on this initiative” said Bandula Egodage (Chairman/CEO, EDB) on 27 February in Colombo.

Chairman Egodage was addressing the monthly review meeting of EDB last week when he was informed by EDB’s agro division of the latest development on Ceylon Cinnamon.

Accordingly, Ceylon Cinnamon trademark is now official in Peru and Columbia-having completed trademark registration in both these markets -and EDB is now awaiting for certificates. EDB is also in the process of accessing Mexico market as well, through its Madrid registration process due to Mexico’s WIPO/Madrid membership in it. In fact, in 2012, Mexico was the topmost buyer of Ceylon Cinnamon for the fifth year in running since 2008.

In 2012, Sri Lanka’s Ceylon Cinnamon exports stood at $129.53 Mn, growing by 6.4% from 2011’s $121.18 Mn. In Y’12, the biggest buyer was Mexico followed by US, Peru, Columbia, and Ecuador.

Ceylon Cinnamon already received official certification in EU and US. Ceylon Cinnamon has been Sri Lanka’s leading spice unique in quality, and the way it is produced. It has global market monopoly of 90% in true cinnamon.

The Ceylon Cinnamon Brand Promotion Programme was launched by the EDB with the objective of differentiating ‘Ceylon Cinnamon’ from other low quality substitutes in the international market and under this programme the ‘Ceylon Cinnamon’ Brand and ‘Ceylon Cinnamon’ Logo were ceremonially unveiled by H.E the President Mahinda Rajapksa in parallel to the Presidential Export Award ceremony held in June 2011.

EDB now holds the ownership of ‘Pure Ceylon Cinnamon’ Trademark which was introduced to the world by the Sri Lanka government as the second national Brand for agriculture products after ‘Pure Ceylon Tea’.

Ceylon Cinnamon secures two more int’l trademarks

The Island - 28/02/2014

Mr. Bandula Egodage (Chairman/CEO, EDB)

Ceylon Cinnamon, which is Sri Lanka’s second global brand, has secured its trademark in two more leading markets-with one more country application in the registration process. "I commend the EDB’s Agro division for their efforts on this initiative" said Bandula Egodage (Chairman/CEO, EDB).

Chairman Egodage was addressing the monthly review meeting of EDB on February 27 when he was informed by EDB’s agro division of the latest development on Ceylon Cinnamon.

Accordingly, Ceylon Cinnamon trademark is now official in Peru and Columbia-having completed trademark registration in both these markets -and EDB is now awaiting certificates. EDB is also in the process of accessing Mexico market as well, through its Madrid registration process due to Mexico’s WIPO/Madrid membership in it. In fact, in 2012, Mexico was the topmost buyer of Ceylon Cinnamon for the fifth year in running since 2008.

In 2012, Sri Lanka’s Ceylon Cinnamon exports stood at $129.53 Mn, growing by 6.4% from 2011’s $121.18 Mn. In Y’12, the biggest buyer was Mexico followed by US, Peru, Columbia, and Ecuador.

Ceylon Cinnamon already received official certification in EU and US. Ceylon Cinnamon has been Sri Lanka’s leading spice unique in quality, and the way it is produced. It has global market monopoly of 90% in true cinnamon. The Ceylon Cinnamon Brand Promotion Programme was launched by the EDB with the objective of differentiating ‘Ceylon Cinnamon’ from other low quality substitutes in the international market and under this programme the ‘Ceylon Cinnamon’ Brand and ‘Ceylon Cinnamon’ Logo were ceremonially unveiled by President Mahinda Rajapksa in parallel to the Presidential Export Award ceremony held in June 2011.

EDB now holds the ownership of ‘Pure Ceylon Cinnamon’ trademark which was introduced to the world by the Sri Lanka government as the second national brand for agriculture products after ‘Pure Ceylon Tea’.