Bangladesh, Sri Lanka near to historic trade pact

As both Bangladesh and Sri Lanka moved closer to their historic trade pact, the process took a new turn as a keen Bangladeshi private sector itself stepping in to accelerate it on 27 November, a rare development in an on-going Lankan trade negotiations-and bilateral trade between both countries has jumped by a strong 67%.

“I will meet our Commerce Minister who is very well meaning and serious, and inform him to expedite the FTA process” said Mahbubur Rahman (President, International Chamber of Commerce of Bangladesh ICCB) on Thursday (27) in Colombo. ICCB President Rahman was addressing Rishad Bathiudeen.

Minister of Industry and Commerce of Sri Lanka on 27 November during his courtesy call on Minister Bathiudeen at EDB, Colombo. Considered as a pioneer of Bangladeshi private sector, ICCB President Rahman, who started his business activities in 1960s, was the founder of the diversified group ETBL Holdings Ltd, and also Eastern Trading (Bangladesh), ETBL Development Construction, ETBL Securities & Exchanges Ltd., Progressive Investments (successors to the National Rubber Industries), and Century Cold Storage Ltd. He was also the leading sponsor of Bangladesh’ Eastland Insurance Co, International Publications (Publisher of the Daily Financial Express), National Bank Ltd and National Housing Finance & Investments Ltd. Also present at the session were Bandula Egodage (Chairman and CEO-EDB) and Ataur Rahman (Secretary General, ICCB).

“I am also pleased to say that many Lankan investments in Dhaka are doing very well. For example, the Commercial Bank of Sri Lanka is doing so well there that even our businesses seek its assistance always”,said ICCB President Rahman, According to the Department of Commerce of Sri Lanka, Bangladesh is the 25th export destination of Sri Lanka in 2013. Bilateral trade between both countries jumped by a strong 67% in 2013 to $ 139.23 Mn (from 2012’s $ 83.19 Mn).

Responding to ICCB President Rahman, Minister Bathiudeen said: “We welcome your intervention and this will greatly boost bilateral efforts. In fact, we too agree that it is the private sector at both sides that would finally drive trade. I am pleased to inform you that the Department of Commerce under me has already completed the Trade agreement study report on our side and both parties have now exchanged their respective reports. We are ready for the nature of Agreement that you look forward to-whether a Preferential Trade Agreement (PTA) or a Free Trade Agreement (FTA). Whatever the form, our government led by the committed HE the President Mahinda Rajapaksa would be positive on the requirements that you have. In fact we welcome a Free Trade Agreement if you so choose. Despite increase in trade, there is still great unrealised trade potentials and a trade agreement will be the way forward towards bigger bilateral volumes.”

On 23 September, Sri Lanka and Bangladesh successfully inked their second bilateral Joint Working Session in Colombo while also coming to a consensus on creating a prospective Trade Agreement between the historic partners, but stopped short of the exact nature of the Trade Agreement to be reached ‘for a while’. Sri Lanka’s leading exports to Bangladesh in 2013 were apparel (cotton, fabrics, Narrow woven fabrics and other articles of apparel) and enzymes. Leading imports from Bangladesh in 2013 were medicaments, apparel, electric accumulators, and potatoes-in fact, most of Sri Lankan exports to Bangladesh relate to the garment industry.

How to develop Sri Lanka’s wood-based industry

Daily Mirror - 24/11/2014

A conference and workshop under the theme “Wood Based Industry – Way Forward’ organized by the Wood Based Industrialist Association of Sri Lanka (WBIA), will be held at the Export Development Board (EDB) Auditoriumon on November 28.

Channa Wijesekera, President of the Wood Based Industrialist Association of Sri Lanka, is expected to outline the problems facing the wood based industry in this article. He explains why this important industry has not developed over the years and proposes a series of solutions to remedy the situation.
When analyzing the development of t he various industries in Sri Lanka, the timber and ti mber related industry indicates a comparative downward trend or slow progress in comparison with the other industries.

The Table shows information provided by the Export Development Board indicates the total export value of wood and wood based products in US Dollars.

In a cautious investigation, the following main causes can be identified.

INADEQUATE KNOWLEDGE AND AWARENES ABOUT DRYING AND PRESERVING TIMBER
Many medium and small scale wood industrialists use un-dried and untreated timber to manufacture their products due to lack of knowledge about the subject. This process directly effects negative impact on the quality of the products, in particular, furniture with wide surfaces such as Almairahs, Tables and Wardrobes etc.

These products tend to warp, expand discolor or disfigure and mostly become unusable. Therefore, a national programme on publications on methods of treatment of timber and kiln drying etc. and educating the trainers of Government and private vocational training schools is required urgently. Another virtually important action is to introduce Carpentry into new GCE Advanced Level Examination under Technical Education segment and train teachers on the subject.

UNAVAILABILITY OF EASY AND SUFFICIENT QUANTITIES OF DRIED AND TREATED TIMBER IN THE MARKET
This is a disappointment to the Wood i ndustrialists who have identified the significance of this process. When an order for furniture is obtained, the industrialist has t o purchase logs, obtain transport permits, transport the logs to Saw Millers, re-transport the sawn timber planks for treatment/drying and transport the dried/preserved timber planks back to his work shop after obtaining another permit. This process takes a month or more which results delays of delivery of the order to the customer.
Following are the suggestions which are to be implemented immediately to overcome above.
Step 1  - Provide Government assistance to Industrialists with chemical treatment plants and kilns and formulate a programme to encourage them.
Step 2  - Introduce Laws to transport all treated and dried timber released by these entities island wide on the Invoice issued by them. When implemented, the above will immensely benefit small and medium scale wood industrialists and self-employed carpenters.
On the other hand, this will enormously help a person to acquire long lasting wood products such as doors, windows, frames from properly dried and adequately treated timber. In addition, such person will save unwanted time spent for observing sawing, preservation, drying and obtaining permits and transporting etc.

INSUFFICIENT USAGE OF MODERN MACHINERY AND LACK OF KNOWLEDGE ABOUT TECHNICAL OPERATION OF MACHINES
In rural areas, manual tools are being used as yet for complex carpentry related work. This reduces the speed, capacity and quality of production making them uncompetitive in the market.

The Government and private vocational training Institutes should be encouraged to introduce training modules such as wood machine operations, finishing processors of furniture, etc. These training programmes and the training institutes should be registered under TVEC. Trainees who successfully complete this training programme to be registered and directed to Sri Lankan Industry and foreign job agencies. When Sri Lankan Industry and foreign job agencies want to test skills and knowledge of applicants, it can be done by these registered private and government training institutes. In my personal opinion, attitudes of the wood technicians who returned after foreign exposure are more positive and their improved technical knowhow can be used to the betterment of the industry.

ABSENCE OF CAREER GUIDANCE PROGRAMMES ON TIMBER RELATED INDUSTRIES FOR SCHOOL LEAVERS
As a preliminary step, Education Ministry, Higher Education Ministry, Ministry of Vocational Skills Training and Ministry of Industries can jointly organize special Seminars/ workshops for school leavers on wood technology and publish career guidance books for the students with the assistance of the wood industrialists. It is important to highlight the success stories of entrepreneurs who have climbed up the ladder. It is virtually important to expose the students to the operations of medium and large scale industries as most of the students have seen only small carpentry shops. This act would inspire them tremendously to join wood related trades. In addition, the foreign employment agencies can test their prospective candidates’ skills through these government and private institutions.

LIMITATIONS OF THE DESIGNING METHODS OF FURNITURE AND OTHER WOODEN PRODUCTS
Government and private training institutions should be encouraged to introduce professional courses on furniture designing. It is important to try to obtain aid from Japan, America, and Germany etc. for these programmes.

SCARCITY OF BOOKS WRITTEN IN SINHALA AND TAMIL LANGUAGES ON CARPENTRY.
Books published on wood technology in indigenous languages are almost nonexistent in Sri Lanka. This is a big hindrance to the development and progress of the industry. Therefore the books should be published on following topics which should include workshop drawings, supportive sketches, photos, etc. The subject matter of the books to be published are “Wood Technology”, “Drawings for Wood Work”, “Wood Work Practicals”, “Operation of Wood Processing Machines”, “Mathematics for Wood Training”, etc.

UNAVAILABILITY OF PROFESSIONAL QUALIFICATIONS IN THE INDUSTRY, REVISION OF CURRICULUMS AND PUBLICATION OF TEACHER STUDENT GUIDES
Currently, TVEC has introduced classifications and training standards under NVQ qualification system. It is extremely important to re-discuss the modules with Wood industrialists for re-design them and publish teacher training instruction books. In the absence of proper guidelines, results of practical tests differ according to knowledge, skills and attitudes of the examiner. As a result, the skill level of the same NVQ certificate will vary and standard of the certification may lose its credibility. This should be considered as a major issue and these testing methods to be revised in collaboration with industrialists.

EXCESS IMPORTS OF WOODEN AND WOOD BASED FURNITURE
Government has taken a reasonable step by announcing that heavy taxes will be levied from furniture imports in 2014 budget. Further, Government has instructed Developers working in BOI projects to purchase local furniture and related products from local manufacturers. We consider this as a step forward and we would like to pay our gratitude to the government for making this proposal.

PROVIDING MORE TAX CONCESSIONS FOR RAW MATERIAL, PAINTS AND FITTINGS USED IN THE WOOD SECTOR
It is virtually essential to offer further tax concessions for raw material and fittings and paints. As examples, items such as sand papers used for finishing work, thinner & various types of paints and accessories such as hinges should be considered for tax concessions.

Russia shows green light on fish import from SL

Daily Mirror - 26/11/2014

Russia has granted approval to import fish and fish products to the Russian Federation from Sri Lanka, 2014, the External Affairs Ministry said.

The Ministry said the Federal Service of Veterinary Surveillance under the Ministry of Agriculture of the Russian Federation granted approval to import fish and fish products to the Russian Federation as a result of the untiring efforts of the Sri Lankan Government through its Embassy in Russia.


Initially, 14 Sri Lankan fish exporting companies who had sought to export their products to the Russian Federation have been included in the register of enterprises and individuals allowed to export into the territory of the Russian Federation and would benefit from this approval, it said.

According to the Ministry, these companies would also have the added advantage of exporting their products to the Republic of Belarus and the Republic of Kazakhstan since these countries have established a Customs Union with the Russian Federation, whereby a product imported to one country can also be imported to the 2 other countries without payment of Customs duties.

The 14 Sri Lankan companies which would be able to supply fish and fish products in the categories of Fresh or Chilled Fish, Frozen Fish, Fish Fillets and Other Fish Meat, and Dried or Salted Fish.

According to statistics of the Russian Federal Customs Service, in 2013 Russia imported 443,014 tons of fish and fish products of these categories to the value of US$ 1581 million while it imported 484,000 tons of fish and similar products falling under this category to the value of US$ 1422 million.

Taiwan textile fair opens in Colombo

Daily FT - 25/11/2014

The Taiwan textile industry is the acknowledged world leader in research, development and manufacturing of fabric and garment accessories. The highly successful Taiwan Textile Fairs brings together leading suppliers of textiles and related products from Taiwan, one of the world’s largest apparel textiles exporting countries to Sri Lanka, at the Taiwan Textiles Fairs in South Asia 2014.

The fairs will showcase innovative and high performance functional textiles for apparel, bags, shoes, rainwear, etc. to Sri Lankan manufacturers. The fair will be held on 24 and 25 November at the Grand Crystal Ballroom of the Taj Samudra Hotel.

The Taiwan Textile Fairs in South Asia 2014 is an excellent opportunity for Sri Lankan apparel manufacturers, exporters, brand-owners, buying houses, buying agents, big retailers, importers, etc. to interact with manufacturers from Taiwan to source superior fabrics and textile auxiliaries that will add more value to their product range. The fairs will also introduce Sri Lankan manufacturers to new product categories to cater to growing demand in the domestic and export market.

The Sri Lanka apparel industry is set for strong growth on the back of continued positive growth in the economy, with it recording 7.8% growth year-on-year in the second quarter. The apparel industry, which makes up 15.9% of the economy’s total revenue, is on track to achieve the export target of US $ 5 billion by 2016 buoyed by rising export demand. Bilateral trade between Taiwan and Sri Lanka has increased over the years and the organisers believe that Sri Lanka has a strong demographic dividend. With South Asia predicted to become the largest textile and apparel producer, Taiwan is looking for stronger bilateral trade and co-operation with Sri Lanka.

Taiwan Textile Fairs in South Asia are organised by the Bureau of Foreign Trade (BOFT) and Taiwan Textile Federation (TTF) in association with the Sri Lanka Export Development Board (EDB) and represented in South Asia by Worldex India Exhibition and Promotion Ltd.
The event is supported by leading textile associations of Sri Lanka such as the Joint Apparel Association Forum (JAAF), the Sri Lanka Apparel Exporters Association (SLAEA) and the Sri Lanka Apparel Sourcing Association (SLASA).

The fairs will showcase a wide range of high performance and innovative textile products from knitted fabrics, functional fabrics, woven fabrics, polyester fabrics, Raschel, Jacquardtronic and Textronic laces, textile uxiliaries, leather auxiliaries, nature industrial cleaner, heat transfer label, reflective transfer label, active-casual fabric, texture fabric, double knit fleece fabric, laminated fabrics for shoe, bags, tents, rainwear, etc.

Taiwan Textile Fairs in South Asia 2013 was very successful, seeing over 300 buyers in just two days with concrete business ventures and collaborations taking place between exhibitors and buyers. Sean Tsai from the Overseas Market Development Department, remarked: “This year we are bringing special 100% waterproof nylon targeting the rainwear market: rain coat, tent roof, etc. as Sri Lanka faces heavy rains during the monsoons and there is a good opportunity for Taiwanese manufacturers to showcase their products in this sector.”

EDB hits China gold with first mainland MoU

Daily FT - 25/11/2014

• Deeper commitments with new FTA: Vice President Hua
• Fresh ties: EDB’s Egodage
• Exports to China grew in last 5 years: EDB’s Dr. Maraikkar
• Bilateral trade at $ 3 b

Sri Lankan exports broke fresh ground on 20 November, as a pioneering MoU between the country’s apex exports facilitator EDB and China was entered into in Colombo. With the commencement of FTA talks, bilateral relations have also further deepened.

“During President Xi Jinping’s recent visit to Sri Lanka this September, he and President Mahinda Rajapaksa reached consensus to deepen the strategic partnership and joint construction of 21 Century Maritime Silk Road. Now the countries have officially started the bilateral FTA negotiations and we believe that the bilateral cooperation would be further deepened in future,” said Zhang Hua, Vice President of CCPIT Guangdong Sub Committee.

Hua was addressing the first MoU signing event between EDB and China Council for the Promotion of International Trade of Guangdong (CCPIT – Guangdon) held on 20 November at EDB, Colombo.
Reps from 19 leading Guangdong firms and Government enterprises, including  Guangdong Guangye Asset Management (mineral resources), Guangzou Dajunmei Electric (consumer electronics), Landrent Investment Ltd. (enterprise management), Qinyuang Takson (tea), Qinyuang Silver Field (tin and scrap metal processing), Qinyuang Shengli Copper Materials (copper processing), and First Rare Materials Co (producer of high purity metals including selenium, tellurium, cadmium), were present for B2Bs with more than 20 Lankan firms such as D. Samson Industries, Akbar Bros, Mt. Lavinia Hotel, Robert Agencies, Abans PLC, Oviklo International and Agility Logistics.

Guangdong (formerly Canton) is China’s largest provincial economy producing more than 10% of China’s GDP, with 104 m population and hosting some of the largest global multinationals such as Shell (the Petrochemical giant) and Du Pont (chemicals).

Guangdong also hosts China’s largest international annual expo, the Canton Fair.
Addressing the event, Hua said: “CCPIT Guangdong has maintained good cooperation, relations with Consulate General of Sri Lanka in Guangzhou, organised several business meetings to further promote bilateral communications. In fact, we have just organised a business meeting last month with the Consulate General of Sri Lanka in Guangzhou for the entrepreneurial delegation led by EDB. We hope that today’s MoU with EDB will further promote bilateral business communications between Guangdong and Sri Lanka.”
China is Sri Lanka’s second largest import country with a value of $ 3 billion, accounting for 17% of total imports in 2013. Total trade with China was $ 3,081 m in 2013.

EDB Chairman/CEO Bandula Egodage addressing the event said: “This is the reciprocal event for the visit of the entrepreneurial delegation led by EDB to Guangdong. We thank you for giving us the opportunity to access Guangdong. The EDB team has played a considerable work to coordinate this MoU. The MoU is a commitment that shows the interest of both parties to engage in bilateral trade.”

EDB ED Dr. Yousuf Maraikkar, addressing the event, said: “China was the 18th export destination for Sri Lanka with an export value of $ 121 m, contributing 1.2% of total export earnings in 2013. Sri Lanka’s exports to China have grown over the past five years increasing from $ 59 m in 2009 to $ 121 m in 2013. The EDB has organised participation of 27 Sri Lankan companies at the 11th China International Small and Medium Enterprises Fair held in Guangzhou, China in October this year. Today’s MOU aims to exchange market information and relevant publications, exchange of official visits between two countries and support to participate at trade exhibitions and other trade events with the overall objective of developing trade between two countries.”

EDB Director General Sujatha Weerakoon led the Sri Lanka trade delegation to the 11th China International Small and Medium Enterprises Fair held in Guangzhou and during a meeting with the CCPIT Guangdong Province she invited CCPIT to organise a delegation from Guangdong, China to Sri Lanka.

EDB secures links with world’s largest textile retailer ZARA

Daily News - 26/11/2014

For the first time in Sri Lanka’s apparel history, the Export Development Board has directly linked top Lankan apparel suppliers with the world’s largest textile retailer, Spain’s ZARA and is stepping up its support for apparel market diversification.

“Though the Lankan apparel sector caters to many international brands, we have still not been able to manufacture to Zara brand, the world largest fashion retailer.

This successful effort directly linked our apparels to Zara for the first time,” said Chitranjali Dissanayake (Director-Industrial Products of SLEDB).

Dissanayake was reporting on the success of first ever Lankan apparel industry delegation to Spain’s Inditex, recently. Inditex ranks as the world’s largest textile retailer by sales, and is present in 87 countries.
It owns such international retail brands as Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home and Uterqe.

“Inditex is commonly known by its oldest and biggest brand, Zara. Though Lankan apparel sector caters to many international brands such as Victoria’s Secret, Gap, Nike, Tommy Hilfiger, Marks & Spencer we have still not been able to manufacture to Zara brand, the world largest fashion retailer” said EDB Director Dissanayake, and added: “As a result of the Lankan industry leaders showing a keen interest to develop business contacts with Spain’s Inditex and to manufacture apparel in Sri Lanka for its ZARA Brand, the EDB promptly initiated a dialogue with Spain’s Inditex Inditex for an initial meeting with a Lankan delegation to present the country’s capabilities and invite Inditex SA to source from Sri Lanka.

EDB in global apparel breakthrough

Daily FT - 26/11/2014

• Secures links with world’s largest textile retailer ZARA
• 6-member EDB-led delegation to Spain 
• Brandix, Timex, Fergasam in pioneering session 
• September apparel exports up by 4.4%

For the first time in Sri Lanka’s apparel history, the EDB, Sri Lanka’s apex export facilitator, has directly linked top Lankan apparel suppliers with the world’s largest textile retailer, Spain’s ZARA on 29 October.
The facilitator, the Sri Lanka Export Development Board (EDB), is stepping up its support for apparel market diversification.

“Though the Lankan apparel sector caters to many international brands, such as Victoria’s Secret, Gap, Nike, Tommy Hilfiger and Marks & Spencer, we still haven’t been able to manufacture for the Zara brand, the world’s largest fashion retailer. This successful effort directly linked our apparels to Zara for the first time,” said EDB Director – Industrial Products Chitranjali Dissanayake recently.

Dissanayake was reporting on the success of the first-ever Lankan apparel industry delegation to Spain’s Inditex on 29 October. Inditex ranks as the world’s largest textile retailer by sales, is present in 87 countries, and owns international retail brands such as Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home and Uterqüe.

Inditex’s consolidated sales in 2013 totaled over $ 20 b, recording an impressive growth of 6% over 2012. The Group’s brands strive to sell fashionable products (fast fashion) with high quality. Inditex describes its business model as “creativity and quality design together with a rapid response to market demands”.

“Inditex is commonly known by its oldest and biggest brand, Zara. As a result of the Lankan industry leaders showing a keen interest to develop business contacts with Spain’s Inditex and to manufacture apparel in Sri Lanka for its Zara brand, the EDB promptly initiated a dialogue with Spain’s Inditex for an initial meeting with a Lankan delegation to present the country’s capabilities and invite Inditex SA to source from Sri Lanka. EDB succeeded in getting the meeting, resulting in a good session with Jesus Echevarria Hernandez, General Director of Communication for Inditex SA, at their headquarters in Spain. Under the guidance of Minister of industry and Commerce Rishad Bathiudeen and support of EDB Chairman and CEO Bandula Egodage, the EDB is stepping up support for the apparel market diversification efforts of Lankan sector.”
Apparels became the leading growth driver in September’s exports (followed by coconut and food, beverages and tobacco). September apparel exports grew by 4.4% to $ 403.8 m in September compared to the same period last year.

The pioneering 29 October Lankan delegation to Zara consisted of reps from Brandix Lanka, Timex & Fergasam Garments, Union Apparel and EDB officials. The six-member delegation, facilitated by EDB, Sri Lanka’s apex exports body, has held several one-to-one meetings with heads of sourcing teams of different Inditex product groups to explore manufacturing for Zara brand.

During the visit, the delegation was provided a Zara company presentation and a meeting with Hernandez, followed by a guided tour to their cutting and finishing processes and logistics departments located in corporate headquarters as well as headquarters of Zara and Zara Home, two Inditex brands. A detailed presentation on Sri Lanka’s capabilities on the apparel industry was made by the Sri Lanka delegation which was followed by a discussion.

The Sri Lankan apparel industry is readying to generate $ 5 b in export earnings by 2016 and the Government’s aim is to position Sri Lanka among the top 10 high quality apparel manufacturing countries in the world by 2020. Sri Lanka is gearing to position itself as a commercial hub and the apparel sector is keen on getting into supply chain management as well.

Kenya-Sri Lanka Joint Economic Cooperation talks a success

Daily FT - 18/11/2014

Kenya, the newest entrant to Africa’s top 10 list, called for renewed trade with Sri Lanka and in a display of its commitment towards this end requested three trade pacts with Sri Lanka in one go by 2015.

“We are looking forward to more trade interaction and expecting a delegation to Nairobi from Sri Lanka next year. By the time of your visit to Nairobi we are looking forward to conclude current discussions on three agreements being discussed and to sign them,” said Amb. Nelson Ndirangu Ogn (Director, Economic Affairs and International Trade of Kenyan Ministry of Foreign Affairs, Nairobi) on 12 November in Colombo.

Ogn was addressing Minister of Industry and Commerce Rishad Bathiudeen and top officials during his delegation’s courtesy call on Bathiudeen at the EDB. Ogn was in Colombo leading a nine-member trade delegation to Sri Lanka. The Kenyan team successfully concluded its Joint Economic Cooperation (JEC) session with Bathiudeen’s official delegation on 11 November.

Noting that Kenya is aiming to become a middle income country by 2030, Ogn expressed hope that the agreements – a Bilateral Trade Agreement, an agreement on Avoidance of Double Taxation and an agreement on Promotion and Protection of Bilateral Investments – would be formalised during Sri Lanka’s visit there.

“Once we formalise these three instruments at government to government level, the private sectors at both ends can commence their own trade. Even on agriculture cooperation, a draft agreement is now being finalised. Our Minister of Agriculture, Livestock and Fisheries will be coming to Sri Lanka to sign it once it is ready. All these bilateral agreements are for stronger trade between both countries. We also need to have ongoing B2B interactions and forge chamber level interactions.  President Mahinda Rajapaksa visited the Nairobi Chamber of Commerce last year and as a result the two chambers entered into a MoU which strengthened bilateral trade. We also saw your Chamber of Commerce in this visit and are impressed by your chamber, which was established way back in 1839. It is now time to expand business-to-business links between the two countries in a significant way.”

In 2013, trade between both countries stood at $13.94 m, rising from 2012’s $12.78 m.  Among Sri Lanka’s exports to Kenya in 2013 were natural rubber, tyres, sacks and bags, staple fibre, tea, rice, coconut coir and activated carbon. Trade in January-June 2014 totalled $ 5.86 m.

Kenya discovered oil and gas in 2012 and is now the ninth largest economy in Africa. In its Global Competitiveness Report 2014-’15, the World Economic Forum listed Kenya as the sixth best among the top 10 economic performers of Africa.

“I have been given to understand that 11 November’s Joint Commission (JEC) Session discussions were successful and I am pleased,” said Bathiudeen. “The JEC also helped to link our fruits and vegetables, construction, ceramics and leather sectors to Kenyan economy. We especially note your keen interest in our leather processing. We thank you for your invitation to us to Kenya’s Tea Expo in 2015. If you inform the EDB of the important events in your trade calendar in advance, we would be able to facilitate even greater B2B interactions. I am pleased about the Kenya Export Promotion Council’s interest to enter into a MoU with the EDB so that export and trade is facilitated starting from a higher level. Such a MoU can also facilitate joint trade delegations.”

Ogn and Bathiudeen also discussed other avenues of bilateral cooperation yesterday (17).
Also taking part were Ministry of Industry and Commerce Secretary Anura Siriwardene, EDB Chairman/CEO Bandula Egodage, EDB DG Sujatha Weerakoone and DoC DG R.D.S. Kumararatne.

Canada for more trade with SL

Daily FT - 19/11/2014

• Canada has 24 FTAs including NAFTA: Whiting 
• Another opening to largest market: Rishad 
• EDB revives TRO-Canada links
• Top Lankan exporters at Canada session
• Bilateral trade at $ 437 m

Minister of Industry and Commerce Rishad Bathiudeen (second from left) in discussion with EDB Chairman/CEO Bandula Egodage yesterday as Canadian High Commissioner in Sri Lanka Shelley Whiting (far right) and Canada Asia-Trade Facilitation Office Project Manager Zaki Munshi (far left) look on

As part of its new internationalisation thrust, the second largest economy in North America directly called for a fresh trade round with Sri Lanka yesterday, recording success for Sri Lanka with yet another NAFTA member.

More than 100 Lankan firms of all sizes packed EDB’s pioneering ‘Exporting to Canada’ session in Colombo.

“I see great potential and synergy here today to do business with Canadian businesses and the Canadian import market. We are in a continuous process of internationalising, especially targeting emerging markets,” said Canadian High Commissioner in Sri Lanka Shelley Whiting yesterday in Colombo.

Whiting was addressing the pioneering EDB session ‘Exporting to Canada’ held at the EDB, which was attended by over 200 eager reps from 100 Lankan firms of all sizes.

Also joining the session were Minister of Industry and Commerce Rishad Bathiudeen, EDB Chairman/CEO Bandula Egodage, Canada Asia-Trade Facilitation Office Project Manager Zaki Munshi, EDB DG Sujatha Weerakoone, EDB ED Dr. Yousuf Maraikkar, Bangalore Senior Canadian Trade Officer Stanley Gomes and officials from Sri Lankan Consulate, Toronto.

“Our aim is to build ties and extend businesses between both countries. The presence of TFO Canada in Colombo today speaks of the enormous economic progress underway in Sri Lanka right now and Sri Lanka’s potential as a trade partner for Canadian Companies. 54% of Lankan imports Canada are apparel. Canada has established an important share in Sri Lanka’s market for wheat and other agricultural commodities; 83% of Canadian merchandise exports to Sri Lanka in 2013 consisted of wheat and lentils,” said Whiting.

She added: “Canada and Sri Lanka share a broad-based bilateral relationship, with long history of development assistance to Sri Lanka beginning with Colombo Plan and continuing through today where Canadian technical assistance is focused on building sustainable economic growth. All the locomotives that arrived under the Plan 60 years ago are still functioning today! I think these Canadian workhorses are in many ways are symbolic of Canada’s trade relationship – longstanding, reliable, quality products, somewhat small-scale, but in for the long haul.

“We have a growing and significant presence in Sri Lanka’s education, agriculture, IT, energy, and infrastructure. Just as Sri Lanka engages in a large export volume to India, our main partner is also in our neighbourhood – in our case, the US. However, as various people have acknowledged, we are not defined by that trading relationship alone. Just this September, the Canadian Government celebrated its most successful month for trading and investment in Canadian history. Like Sri Lanka, Canada too has entered into several Trade Agreements including with the EU, Korea, etc. Starting from the North America Free Trade Agreement (NAFTA), Canada has signed nearly 24 FTAs with the world. We also have seen a fivefold increase in Canada-India trade in the recent years.”

Sri Lanka’s bilateral trade with Canada has shown a continuously growing trend in the last few years. The $ 346 m total in 2009 surged by 26.23% to cross $437 m in 2013.

Bathiudeen, addressing the event, said: “With the support of our committed exporters, President Mahinda Rajapaksa has set a goal of $ 20 billion exports by 2020. As we aim for this goal, not only diversification, but even deeper access to existing markets has become important. Canada is in fact a promising destination in this regard. Last year our bilateral trade with Canada stood at $ 437 m. Firstly, Canada’s consumer market is about 2.25% of the world’s total consumer market. The neighbouring US market, which is also the largest market in the world, has 28% of the world’s total consumer market. Therefore the Canadian market which is located just next to our biggest global marketplace not only offers its own opportunities for Lankan exporters, but even new openings to the US market as well.

“It is clear that $ 437 m trade with the Canada market also shows great unrealised potential that we can begin to explore. Today’s session with the valuable support of the Trade Facilitation Office of Canada (TFO Canada), and Sri Lankan Consulate in Toronto could help our committed exporters explore this promising North American market with added strength. I have no doubts that in time to come, with the support of TFO Canada, our EDB will be able to open new doors in Canada for our keen exporters. Therefore, on behalf of the people of Sri Lanka, I extend our warmest appreciation to the people of Canada today for this and many other support initiatives.”

Among the 106 Lankan private sector giants at yesterday’s session were A. Baur, Hayleys Exports, Eswaran Brothers, Ceylon Biscuits, Ramya Horticulture, Akbar Bros, Barbara Sansoni, Dankotuwa Porcelain, Samson Rubber and Anverally.

Jaffna Int’l Trade Fair during Jan 23-25, 2015

Daily News - 19/11/2014

The Jaffna International Trade Fair (JITF), the most comprehensive and ‘looked forward to’ exhibition in the North will be held for the sixth consecutive year in the heart of Jaffna from the January 23-25, 2015.

The exhibition which was the first of its kind to be held in the Northern region of the country has throughout the years been renowned as the best and most potent platform for the meeting of investors, businesses and the masses in the region.

JITF has been hailed to be the common platform under which networking and expanding of investments, business ideas, existing businesses and sharing of knowledge occurs. The North is yet to be fully penetrated by private investments and remains ‘virgin territory’, with many of the resources in the area yet to be fully utilized.

The Jaffna peninsula has among its natural riches and resources, a vibrant community filled with passionate human resources who are willing to harness and expand their potential through such meetings.

The exhibition last year drew record number of visitors with each exhibitor achieving well beyond their expected targets. The massive infrastructure development currently underway in the region has also paved way for many investment opportunities in the region which could not be afforded previously.

The regions, roads, electricity, bridges and all other core facets are currently being developed in the governments endeavor to ensure the region is on par with many of the most potent business and lifestyle destinations in the world.

K. Vignesh President of Chamber of Commerce & Industries of Yarlpanam said, “There is no event of this kind for the entire Northern region and all businesses and locals of the region look forward to this event. The exhibition is considered the best meeting point between them and the rest of the country and the world. Therefore each and every visitor to the exhibition is focused in order to harness maximum value during the three days”.

The exhibition will feature the construction industry, hospitality industry, food beverage and packing industry, Automobile industry, ICT industry, financial services, apparel, agricultural, consumer goods and many others, which will be on show during the three days.

CEO of the Presidential Award winning event organizer Lanka Exhibition and Conference Services Aasim Mukthar said that all exhibitors have throughout the years gained maximum benefits at the JITF.

“It is a historic event where the North meets the rest and is considered by everyone who participates as the best and most comprehensive destination to further their knowledge, investments and businesses. We have left no stone unturned in order to make the 2015 edition the best that the peninsula has ever witnessed and are of the belief that it will be one of a kind,” he said.

The event is supported by Consulate General of India – Jaffna, Federation of Chamber of Commerce & Industry of Sri Lanka ( FCCISL), Ceylon Institute of Builders (CIOB), Sri Lanka Convention Bureau (SLCB) and the Jaffna Municipal Council along with the endorsement of the Ministry of Traditional Industries & Small Enterprise Development & Sri Lanka Export Development Board (EDB). 

Sri Lanka's export trade sector grows 11.1%

Ceylon Today - 16/11/2014

Sri Lanka's Export Trade sector recorded a relatively a higher growth of 11.1 per cent in second quarter 2014, when compared to the slower growth of 1.2 per cent recorded in the second quarter of 2013, Department of Census and Statistics said in its Quarterly Estimates of Gross Domestic Product report released recently.

According to the Balance of Payment statistics of Central Bank of Sri Lanka, export earnings increased to Rs343,058 million in the second quarter of 2014, from Rs291,274 million in the second quarter 2013, indicating a growth of 17.8 per cent, said the Census and Statistics Department.

Compared to the second quarter of 2013, agricultural and industrial exports grew by 26.5 per cent and 15 per cent respectively. According to the Trade Indices of Central Bank, export volume index and unit value, index have increased by 11.6 per cent and 5.6 per cent respectively in second quarter 2014.
Sri Lanka will import 50,000 metric tonnes of rice from Bangladesh to ensure food security and control the escalating price of Sri Lankan's staple food.

The Sri Lankan Cabinet, according to the Colombo Page web site, has given its approval for the purchase of rice stock from Bangladesh on a government-to-government basis.
The measure has been taken in anticipation of the demand that will arise during the forthcoming Yala Harvest festive season.

The import of rice is to be carried out immediately and the stocks will be distributed through island wide supermarkets of Lanka Sathosa, the state-owned wholesale and retail grocery network at an affordable price.

Sri Lanka's rice harvest has been hit by the prolonged drought in the rice growing districts of Polonnaruwa, Hambantota, Moneragala, Ampara and Vavuniya.

The proposal to purchase this stock of rice from Bangladesh was submitted to the Cabinet by President Rajapaksa in his capacity as Minister of Finance.
Meanwhile, Sri Lanka and Mauritania signed an agreement to establish a Joint Commission on Cooperation to further strengthen relations between the two countries.

The signing took place following bilateral talks between Sri Lankan President Mahinda Rajapaksa and President of Mauritania Mohamed Ould Abdel Aziz at the President's Office.
During the meeting between the two presidents, Mauritania requested for Sri Lanka's expertise and assistance in developing a number of sectors, including mining, health, vocational training, fisheries and agriculture.

Pointing out the advancements Sri Lanka has made in all these areas, President Rajapaksa said Sri Lanka is more than happy to assist in keeping with its overall policy of enhancing relations with Africa.
"We have been taking measures to strengthen our relations in Africa," President Rajapaksa said. (Reuters)

Bangladesh announces speedier trade pact in the offing

Daily FT - 13/11/2014

• Good news, prefer an FTA: Rishad
• Talks will conclude successfully: Ashan
• YoY bilateral trade jumps by 67%

Minister of Industry and Commerce Tarik Ashan (third from left) greets Bangladeshi High Commissioner to Sri Lanka Tarik Ashan (second from left) yesterday in Colombo as Bangladeshi High Commission Colombo Counsellor and HOC F.M. Borhan Uddin (far left), Ministry of Industry and Commerce Secretary Anura Siriwardene(third from right), DoC DG R.D.S. Kumararatne (second from right) and EDB Chairman/CEO Bandula Egodage (far right) look on

As bilateral trade with Bangladesh showed a strong rise, the country has signalled that it has now started moving towards the historic trade pact with Sri Lanka, as revealed yesterday in Colombo, and Bangladesh wants the agreement to be signed fast.

“At my final meeting with Prime Minister Sheikh Hasina just before my departure to Colombo, she advised me to focus strongly on trade during my new tenure in Sri Lanka. I am pleased to inform you that the trade agreement under discussion between both countries at present will come to a successful end,” announced the newly-appointed Bangladeshi High Commissioner to Sri Lanka Tarik Ashan yesterday.


Ashan was addressing Minister of Industry and Commerce Rishad Bathiudeen and his top officials at EDB, Colombo, making his first courtesy call on Bathiudeen upon his arrival to Colombo. Ashan has been in Dhaka for the previous four years and this is the first time he has assumed overseas duties as a High Commissioner.

According to the Department of Commerce of Sri Lanka, Bangladesh is the 25th export destination of Sri Lanka in 2013. Bilateral trade between the countries jumped by a strong 67% in 2013 to $ 139.23 m (from 2012’s $ 83.19 m).

“Sri Lanka-Bangladesh bilateral trade has tripled over the last few years. Once agreed on technicalities, we need to sign the trade agreement immediately. In the meantime, in the coming days, we will start to respond to your trade suggestions made to us at the Colombo meeting on 23 September. The Government of Bangladesh wishes to appreciate Sri Lanka for its support in its international initiatives. We thank Sri Lanka for its support to Bangladesh at International Telecommunication Union ballots,” Ashan added.

On 23 September, Sri Lanka and Bangladesh successfully inked their second bilateral Joint Working Session in Colombo while also coming to a consensus on creating a prospective trade agreement between the historic partners, but stopped short of the exact nature of the trade agreement to be reached.

“We welcome your Government’s prompt response in this regard,” said Bathiudeen. “We are ready for the nature of agreement that you look forward to – whether a Preferential Trade Agreement (PTA) or a Free Trade Agreement (FTA). Whatever the form, our Government led by President Mahinda Rajapaksa would be positive on the requirements that you have. In fact we welcome a Free Trade Agreement if you so choose. Despite increase in trade, there is still a great potential for win-win outcomes and therefore it is now time to move beyond the current trade levels of $ 139 m. A trade agreement is the way forward to move towards bigger bilateral export baskets and volumes.”

Sri Lanka’s leading exports to Bangladesh in 2013 were apparel (cotton, fabrics, narrow woven fabrics and other articles of apparel) and enzymes. Leading imports from Bangladesh in 2013 were medicaments, apparel, electric accumulators, and potatoes – in fact, most of Sri Lankan exports to Bangladesh relate to the garment industry.

Ornamental fish featuring notably in 14 percent export growth

The Island - 10/11/2014
By Ifham Nizam

Sri Lanka has earned USD 7.34 billion from exports up to August this year, recording a positive growth of 14 per cent when compared to the corresponding period in 2013, said Sri Lanka Export Development Board Chairman cum Chief Executive Officer Bandula Egodage.

Addressing a gathering at the First International Ornamental Fish Trade Conference in Colombo yesterday he said despite many constraints and challenges faced by local exports domestically and internationally, the willingness shown by them to sustain continuous growth was commendable.

He added as an apex export promotion body of the country, EDB had directed its market strategies to capture more shares in the export market by focusing on the products having high growth trends.

Fish and fisheries product sector, including ornamental fish, has been identified in the EDB Strategic Plan for the year 2015-2020 as a priority product sector to be developed to achieve the national export target of USD 20 billion by 2020, he added.

Speaking on the occasion Industries and Commerce Minister Rishad Bathiudeen said 40 Sri Lankan regular exporting companies have successfully taken 2.7 per cent share of the USD 400 million global ornamental fish market.

In 2013 Sri Lanka exported USD 10.7 million worth ornamental fish. This USD 10.7 million is an increase of a strong 41 per cent from 2012’s exports he said, adding that US, UK, Germany, Japan and France, were Sri Lanka’s top five buyers.

"What is important to note here is that, promising new global markets have begun to open for our products in 2013. The promising and profitable new markets come from the Middle-East. They are Qatar, Iran and Lebanon, who have strongly increased their demand for our ornamental fish products in 2013 for the first time, he said.

Bathiudeen added other new promising, markets in 2013, were Switzerland, Spain and Taiwan.

The minister said that with development, they are also concerned about the native species, threatened species entering the Red List. Thus, government is taking meaningful measures in this regard.

He said: "Of the 90 varieties of Lankan freshwater fish, 50 are considered to be endemic to Sri Lanka, about which, we all are, well aware of."

He said President Mahinda Rajapaksa, had assured that the government would intervene in securing new technology to provide information and incentives to the medium and small scale ornamental fish entrepreneurs, to access the international markets.

"On behalf of, our ornamental fish producers, let me commend, His Excellency Mahinda Rajapaksa for his many unprecedented initiatives to safeguard Sri Lanka’s aquaculture, in Budget 2015.

"Total value of these initiatives are almost close to USD two million dollars, he said.

The minister pointed out that among the budget initiatives the following are notable; increasing inland fisheries production to 20 per cent of total fish production, a loan scheme to assist SME entrepreneurs to develop their fish farms, allocation of USD 1.5 million to develop 1000 inland fish farm villages, allocations for NARA fish breeding centers and allocating USD 380,000 for the expansion of ornamental fish exports.

The minister said that he has no doubts that our committed industry players would be able to meet these new markets, which is a sign of sector’s progress. Citing examples, he said 17 Sri Lankan firms were at last year’s Aquarama International in Singapore.

Fisheries and Aquatic Resources Development Minister Rajitha Senaratne said that country’s exports to the European Union have shown an annual growth rate of 10 per cent over the last five years.

A smiling minister said keeping an aquarium was his first love in his childhood and added over the past 60 years a cottage scale or hobbyist industry has grown to exporting to more than 40 countries.

 More than 300 local and international delegates are taking part in the two-day conference.

 Renowned fish expert Gerald Bassleer too would make a presentation here. He is the President-OFI, a fish pathobiologist and has worked in the ornamental fish industry since 1977.

He is the author of several books and publications on ‘fish diseases’. He works at an international level as a professional trainer and consultant in the fish industry. Since 2006, he has been the President OFI, representing the international industry of ornamental fish, plants and invertebrates.

 Netherlands-based Ornamental Fish International – a worldwide organisation representing wholesalers, importers, exporters, manufacturers, breeders and other members of the ornamental fish, water plant, food and aquatic equipment industries-organises Aquarama in Singapore and Interzoo in Germany, the two major events in the industry.

 Co-organiser INFOFISH, originally launched in 1981 as a project of the Food and Agriculture Organization (FAO) of the United Nations, is an intergovernmental organization providing marketing information and technical advisory services to the fisheries industry of the Asia-Pacific region with headquarters in Malaysia. Fourteen countries, including Sri Lanka, are currently members of INFOFISH.

Rubber industry can grow bigger than garments

Daily FT - 10/11/2014

• Potential to become a 10 billion dollar business: Prabhash Subasinghe

Global Rubber Industries Managing Director Prabhash Subasinghe receiving the Platinum Sponsor award from Minister of Economic Development Basil Rajapaksa at the recently concluded Global Rubber Conference 

The rubber industry in Sri Lanka has the potential to grow bigger than the garment industry. “Unfortunately, foreign investors have not seen the possibility of this factor,” says Global Rubber Industries Ltd (GRI) Managing Director Prabhash Subasinghe.

According to GRI, a leading industrial solid tyre manufacturer based in Sri Lanka; supplying solid tyres to Original Equipment (OE) manufacturers and replacement markets in more than 45 countries worldwide since 2001; Sri Lanka is the world’s largest producer of high-quality solid tyres, dominating about 60% of the global market.

Commenting on Industry & Commerce Minister Rishard Bathiudeen’s statement at the recently held Global Rubber Conference (GRC) 2014, the MD of GRI said that Sri Lanka can become a natural polymer hub and that the country needs to strive towards making this goal a reality. The Global Rubber Conference, held for the first time in Sri Lanka earlier this month, was co-organised by the Sri Lanka Export Development Board and supported by the International Rubber Research Development Board (IRRDB). The conference had over 20 global government agencies and associations participating in the event.

Currently Sri Lanka exports just under a billion dollars’ worth of value added rubber products says Prabhash Subasinghe. “Sri Lanka is the largest producer of solid tyres in the world. The value addition in this segment is over 60% and we can categorically state that this is the highest value addition especially in comparison with the garment industry. I am by no means being negative about garments but looking at the rubber industry on a positive note, I would like to explain why there is a huge future for the rubber industry in Sri Lanka. Taking into account the significant value addition as well as the vast potential for future investment; this industry in Sri Lanka can be a 10 billion dollar business.”

Since the solid tyre business category is relativelya small one, the MD of GRI points out that there is a need for Sri Lanka to increase production of rubber in order to grow the business. He says that the subsidy for rubber farmers in this year’s budget was an encouraging step towards this goal as that would help to promote more rubber production and especially support the small holders.

Speaking of the tyre trade he says, “We need large foreign manufacturers to come and invest in our tyre tradeas well as to look at other businesses which are parallel to the solid tyre business let it be in construction tyres, miningtyres, and agricultural tyres to name a few. As much as Sri Lanka is the global leader in solid tyres, we can also become global leaders in related industrial tyre products – and that should be our absolute target.”

The Export Department Board has said that by 2020, Sri Lanka should export 3 billion dollars worth. Currently exports from garments are valued at 5 billion dollars while rubber exports stand at only $ 1 billion.  However, according to Prabhash Subasinghe the value addition from rubber is far higher than most other products.

“What is important for a country is the value addition from exports because that value addition can only be kept within the country. When you look at our Sri Lankan foreign trade, we import products and we export products. In the case of garments, we have to import majority of the raw material from overseas, add value and then export; so your value addition percentage is smaller. This is certainly not the case with the tyre business; because we produce and grow rubber in Sri Lanka andwe add value in Sri Lanka as well. More than 80% of the rubber produced in Sri Lanka is value added locally.

“We also expect to increase our production in the future and hence the value addition in this trade will be far higher. High value addition is necessary for any country to grow, because value addition stays in the country.  In the case of the tyre manufacturing sector for export a value addition of 60% is currently retained in Sri Lanka.  Where there is more value addition a country can become more prosperous.”

Prabhash Subasinghe says we need to be known as a serious player in the raw material production if Sri Lanka is to attain ‘hub’ status, which is why rubber production overall needs to increase and manufacturing processes need to increase parallely in order for the country to become No. 1 in this industry. The plus factor according to him is that the country already has a lot of it in place, and only requires more awareness and the will to achieve the goal.

Trade renewal in offing with largest Nepali biz visit in a decade

Daily FT -  03/11/2014

• ‘Time for air links, new trade’: Nepal’s Dhakwa
• ‘Sending two teams’: EDB’s Egodage
• Bilateral trade at $ 5 m
• ‘Come to us & get Indo, Thai markets’: Nepal’s Dhakwa

TEPC Member of Board of Directors and the leader of the visiting Nepali delegation Bikash R. Dhakwa (third from right) gifts a copper and gold dust plated Shakyamuni Buddha statue crafted by Nepali artisans to EDB Chairman and CEO Bandula Egodage on 29 October in Colombo

As Lanka-Nepal trade leaped by threefold and showed new signs of revival, the biggest Nepali business delegation to Sri Lanka after almost a decade concluded their visit successfully on 2 November and also gave an unprecedented opening for the country’s artisans to enter two of the highly profitable craft markets in the region through Nepal and Sri Lanka’s creative artisans have been invited to November’s International Fair in Kathmandu.

“Sri Lanka and Nepal have historic relations and now is the time to go to the next step; towards stronger bilateral trade. The main reason we are coming to Sri Lanka is that you have very good gem processing technology – also we need your natural precious stones,” announced Trade and Export Promotion Center (TEPC) Member of Board of Directors and the leader of the visiting Nepali delegation Bikash R. Dhakwa on 29 October in Colombo.

Director Dhakwa was addressing the EDB top officials’ team led by EDB Chairman and CEO Bandula Egodage during his delegation’s visit to EDB on 29 October. The visiting 12 member business delegation from Federation of Handicraft Associations of Nepal was the largest ever Nepali business delegation to come to Sri Lanka in recent times. This was also the first ever such handicraft focused delegation to visit Sri Lanka from Nepal, with leading Nepali handicraft, gold, silver and metal crafts and other artisan entrepreneurs in it.
Several of the visiting businesses are also well-linked to the craft markets of India and Thailand. Notable among the Nepali reps were international jewellery designer Suman Dhakwa (Proprietor, Valhalla Enterprises) as well as Sanam Shakya (Executive Member, Federation of Handicraft Associations of Nepal and sole craft supplier to Dalai Lama).
Also present at the session EDB were EDB DG Sujatha Weerakoone, EDB ED Dr. Yousuf Maraikkar, EDB Director – Market Development Jeevani Siriwardena and other top officials.
“We warmly welcome one of the largest business teams from Nepal. Today’s meeting with your delegation could be considered as a preparatory meeting of our craft sector for Kathmandu SAARC sideline meeting as well,” said Egodage, addressing Director Dhakwa and the delegation, and added: “Relations between Sri Lanka and Nepal have been historic. The arrival of such a large team strengthens these on-going relations further and helps increase trade.”
As for bilateral trade, both countries remain promising virgin markets to each other. In 2013, Sri Lanka’s exports to Nepal stood at $ 5.07 million, a sudden 296% jump from 2012’s $ 1.2 million. Handicraft and jewellery exports to Nepal totalled $ 0.42 million in 2013. Sri Lanka’s top exports to Nepal in 2013 were printed books, newspapers and other printing products, pepper, fowls, electrical apparatus/switches, rubber tyres, and industrial machines.
Director Dhakwa responding said: “Sri Lanka and Nepal relations have been historic and now is the time to go to the next step-towards stronger bilateral trade. Both Nepali handicrafts and jewellery sector representatives are here. Unlike in Sri Lanka, jewellery, gold, silver and precious stone crafts are included as part of ‘handicrafts’ in Nepal. We have 22 different kinds of key crafts being exported to 60 countries. The main reason we are coming to Sri Lanka is that we believe that you have very good processing technology of precious and semi-precious stones here – that is stone cutting-as well as a strong manufacturing sector in them.
“Also we need your natural precious stones to be used in our jewelleries. Our jewellery producers have very good linkages with Thailand and India and these two markets are continuously fed by our artisans. Sri Lankan precious stones will help us to meet the increasing demand for high quality precious stones embedded crafts in these two markets. For Sri Lankan gem, silver and handicraft exporters, there are huge prospects in the $ 420 million Nepali gold, silver, jewellery and handicraft making industry which already employs two million workers. “These prospects are within Nepal and through Nepal to countries such as India and Thailand. Apart from SAARC meet, we also invite a Sri Lankan handicraft, silver and gold crafters team to the Nepali Handicraft Trade Fair held 20-24 November at the Bhrikuti Mandap Exhibition Hall in Kathmandu. We also suggest that it is time to renew direct air-links between Kathmandua and Colombo.”
“We are looking forward to meet you during SAARC meet,” said EDB’s Egodage, and added: “We are also planning to send a business delegation to Nepal in January.”
The previous Nepali delegation of this magnitude to visit Colombo was the business delegation organised by the Economic Forum of Nepal, way back in December 2003.