New markets for ornamental fish

Daily News - 31/12/2014

Some 40 regular export companies in Sri Lanka have successfully taken a 2.7 % share out of the US$ 400 million global market. Promising new global markets have opened for ornamental fish in 2013. The promising and profitable new markets come from the Middle East such as Qatar, Iran and Lebanon who have strongly increased their demand for ornamental fish

Sri Lanka's ornamental fish industry which commands about 2% market share in the global ornamental fish industry should enhance nutrition and disease management, water management, selective breeding and genetic enhancement if the country needs to further increase its share in the global market, industry officials said.

The government of Sri Lanka has taken various measures to enhance the value chain to boost international ornamental fish earnings in a better manner and to become a premium product supplier to the high end of the market. Sri Lanka exports to more than 40 countries and major buyers include countries such as Argentina, Canada and the USA.

Sri Lanka, UAE Customs sign agreement to boost technical cooperation

News.lk - 30/12/2014

Customs departments of the United Arab Emirates (UAE) and Sri Lanka have signed an agreement to boost the technical cooperation between the two agencies.
The UAE, represented by the Federal Customs Authority, FCA, and Sri Lanka Customs, have initialed the agreement on customs technical cooperation in Colombo, during a UAE delegation's visit to discuss ways to bolster cooperation, Emirates News Agency reported.

The agreement was signed by Saud Salem al-Aqrouby, FCA Head of the International Relations Department, and S. Rajendran, Additional Director of Sri Lankan Customs in the presence of Director-General of Sri Lankan Customs, Jagath P. Wijeweera, and several additional Directors-General and Deputy Directors in the Sri Lankan regulatory body.

Khalid Ali Al Bustani, FCA Acting Director-General, said, "The UAE is keen on enhancing and promoting cooperation with its trade partners worldwide, through signing customs technical cooperation agreements, applying the standards of corporate excellence to achieve the FCA's strategic goals, protecting society's security, facilitating trade and increasing cooperation with different countries across the world." He went on to say that these agreements maximize added value to the local economy by exchanging information and experience about customs shipments. This in turn promotes customs risk management between the UAE and its trade partners.

In its plan to enhance ties with foreign partners, the FCA relies on the location of the UAE as a global trade hub having strong trade relationships with most of the world's countries. In this field, the customs regulator is keen on concluding cooperation agreements in light of the UAE's position on the world trade map, Al-Bustani added.

The UAE has close trade relations with Sri Lanka, marked by growing trade, Al-Bustani explained, noting that Sri Lanka is one of the UAE's strategic partners.

Al-Aqroubi said that UAE-Sri Lankan bilateral trade set new heights from 2009 to the end of the first half of 2014. The value of mutual trade between both countries reached AED 7.6 billion (US$ 2 billion), of which UAE imports accounted for AED 3.4 billion, exports AED 1.8 billion and re-exports to Sri Lanka AED 1.5 billion.

He added that the agreement contributes to sharing experiences, enhancing economic cooperation and mutual trade, and protecting society from illegal trade practices through exchanging information about customs shipments between both countries

University of Jaffna hosts biggest IT conference in Northern Peninsula

news.lk - 24/12/2014

IT industry thought leaders and undergraduates meet and network at Day Four of Jaffna IT Week

One of the most prevalent needs of Sri Lanka’s blossoming IT industry is increased human capital, to meet the rising demands of an industry that is hungry for further growth. Public-private partnerships need to play a dynamic role to strengthen our human resources and make known to our youth some of the country’s best employment opportunities.
The Jaffna IT Week – an industry initiative for inclusive growth and reconciliation – facilitated this collaboration, bringing together top stakeholders from the public and private sectors to share knowledge and network with some of the young talent of the country at the Jaffna IT Conference, which was held on 6 December 2014 at the University of Jaffna.


Held on the fourth and final day of Jaffna IT Week, the event, hosted by the University of Jaffna attracted over 200 students from State universities all over the country, who were exposed to the core of Sri Lanka’s IT industry, for them to understand the skill sets and expertise required of them, and to open up avenues and opportunities that were previously hard for them to access.

A line-up of some of Sri Lanka’s leading personalities in the IT/BPM sector shared insights on the latest developments in the local and global IT industry – topics discussed included a mix of technical, trending topics in the industry (Development, Internet of Things, Mobile), as well as more business-related themes, with both a local and global outlook.

The panel of speakers included ICTA CEO Reshan Dewapura, WSO2 Founder, Chairman and CEO Dr. Sanjiva Weerawarana, CodeGen CEO and Chief System Architect Dr. Harsha Subasinghe, Motorola Solutions Sri Lanka Country Manager Anuradha Tennakoon, Microsoft Sri Lanka Country Manager Imran Vilcassim, Zone24x7 Vice President – Engineering and General Manager Dr. Sankalpa Gamwarige, Microimage Founder/CEO Harsha Purasinghe, Calcey Technologies Founder and CEO Mangala Karunaratne, 99X Technology Co-Founder and CEO Mano Sekaram and IFS General Manager/Director Sales and Consulting South Asia, IFS Pakistan Country Director and IFS Global Academy Project Consultant Poorna Bandara.

The interest from the students prior to the conference and the levels of interaction between the undergraduates and the speakers at the conference, as well as between the Jaffna undergraduates and their peers from across the island, was extremely heartening to see, and the response from all parties has been exceedingly positive.

Additionally, the Jaffna undergraduates hosted their counterparts from other parts of the country in their own homes, giving the visiting students a real feel of life in the North, forging lasting friendships between the youth – a small yet sure step forward in the process of reconciliation in Sri Lanka.

The ‘Jaffna IT Week’, held from 3 to 6 December 2014, was an IT industry initiative for inclusive growth and reconciliation, driven by SLASSCOM, and supported by the Export Development Board (EDB), Information and Communication Technology Agency of Sri Lanka (ICTA), Ministry of Education (MOE), University of Jaffna (UOJ) and the Yarl IT Hub, with NDB as Official Bank and Mobitel as Exclusive Mobile Communication Partner.

Over four days, the Jaffna IT Week featured key Government stakeholders, Sri Lanka’s top IT industry thought leaders and tech entrepreneurs. It was a significant event to be hosted in the Jaffna Peninsula, not only for the promotion of IT in Jaffna but also in terms of bridging the digital divide and bringing about reconciliation.

CMI and KPMG discuss how to take advantage of FTAs with India and China

Daily FT - 24/12/2014

In an effort to go beyond the obvious and to better understand the dynamics, opportunities and challenges that stem from Sri Lanka’s Free Trade Agreements (FTA) with India and prospects with China, the Chartered Management Institute (CMI) – UK’s Sri Lanka Branch, held a knowledge sharing event recently which they organised in association with their exclusive knowledge partner, KPMG in Sri Lanka. The event captioned ‘Free Trade Agreements: Trends, Prospects and Opportunities with India and China’ brought together business leaders in an interactive discussion on how to make the most of the trade agreements with India and China and how they can contribute to the development of Sri Lanka’s economy.

Setting the platform for the discussion National Institute of Exports Chief Executive Officer P.D. Fernando shared Sri Lanka’s experience on FTAs, highlighting trends, limitations and opportunities. He stated that to counter challenges these agreements pose a joint operational cell to handle FTA related disputes can largely be of benefit to businesses.

P.D. Fernando also reviewed the FTA in place between China and Switzerland and mentioned that reading such agreements between other countries would assist in drawing up the Sri Lanka China FTA.

Sighting the importance of facing the main world trade route, as a natural marine hub, he said that the vision of Sri Lanka should be to conclude an effective FTA with China and step in to the Regional Comprehensive Economic Partnership process.

KPMG in Sri Lanka Principal – Tax & Regulatory Suresh R.I. Perera presented an overview of the 27 Articles of the Indo Lanka Free Trade Agreement including the Rules of Origin and the negative lists. He pointed out that according to the Rules of Origin, two criteria namely, 35% value addition and change of the HS coding at 4 digit level, must both be fulfilled. He also emphasised that though the parties have not invoked, the agreement contains measures for dispute resolution and establishment of a Joint Committee for the smooth operation of the FTA.

According to Article XI, a Joint Committee is to be established at Ministerial level and to meet at least once a year to review the progress made in the implementation of the FTA so as to ensure that benefits of trade expansion emanating from the FTA accrue to both Contracting Parties equitably. He also emphasised that articles should include addressing safeguard measures, balance of payment issues, state trading enterprises, domestic legislations etc.

His presentation was followed by a panel discussion moderated by KPMG in Sri Lanka Managing Partner Reyaz Mihular. The panel discussion included eminent business leaders and professionals comprising Dr. Rohantha Athukorala, Country Director – Turner Investments (USA), R.D.S. Kumararatne, Director General of Commerce, Navindra Abeyesekera, President, Sri Lanka-China Business Council, P.D. Fernando, Chief Executive Officer, National Institute of Exports, and Suresh R.I. Perera, Principal – Tax & Regulatory, KPMG in Sri Lanka.

Commenting on the opportunity that the China FTA can pose to Sri Lanka, Navindra Abeyesekera stated that today, China’s population stands at 1.4 billion people, which is more or less 19% of the total world’s population. China’s Imports have grown year on year by 7% from $ 1,817 billion in 2012 to $ 1,949 billion in 2013, and out of these imports, 42% is from developed Asian countries, namely, South Korea, Japan, Taiwan, Hong Kong and Malaysia.

Responding to how Sri Lanka could exploit the China market, Navindra Abeyesekera stated that our export strategy to China should be based on China’s presently high value added import products from Asia, which can be manufactured either fully or partially in Sri Lanka and focusing on the new Chinese consumer, their behavioural and spending habits. He added that in our exports strategy we need to focus on value addition through brand names, whereby Sri Lankan companies look at partnering reputed brands especially in high value added import segments such as, jewellery, shoes, thereby generating higher margins and changing our identity.

Rohantha Athukorala pointed out that in order to exploit the now available access to the market, one does not have to wait for FTAs. He believed one must venture out of the country and meet prospective buyers and initiate business. The FTAs will support the entrepreneurial venture that one embarks on. Specifically on the proposed China FTA he voiced the opinion that it is not going to be easy for the Sri Lankan export industry.

One will have to work out a competitive position by continuously studying the Chinese market. 15 countries have duty free and preferential access to the Chinese market. Many more FTAs are in the pipeline and are at a more mature stage compared to the Sri Lanka – China FTA. He added that focusing on consumer information is vital for successful business insights on market opportunities.
The most popular bilateral FTA to emerge in the region was the India-Sri Lanka FTA. In 2011-12, India’s imports from Sri Lanka went up by almost 45% to cross $ 720 million, making Sri Lanka the largest source of merchandise from the South Asian region for India. It is relevant to note that over 70% of Sri Lanka’s exports to India are covered under the FTA. Commenting on it R.D.S.

Kumararatne stated that the full potential of the FTA is yet to be fully exploited by Sri Lanka, and broadening the FTA is the way forward. He added that FTAs are essential for countries, especially like Sri Lanka, to come up with strategies in order to face the new challenges in highly competitive markets.

In conclusion, Reyaz Mihular stated that businesses need the right insight in evaluating and implementing savings and compliance related advisory to exploit these agreements and be provided with necessary support of the complex business challenges and key issues faced by businesses.
CMI and KPMG hope to continue their partnership on similar knowledge sharing initiatives, bringing together industry professionals to share their expertise on topics that are of relevance to the Sri Lankan business environment.

Sri Lanka tops the Brown Fiber Export Market

News.lk - 24/12/2014

Coconut is one of the major plantation crops in Sri Lanka which accounts for approximately 12% of all agricultural produce in Sri Lanka. Total land area under cultivation is 395,000 hectares and about 2,500 million nuts are produced per year.

Sri Lanka is very popular in world market for Desiccated Coconut (DC) and Brown fiber. Distinguish white colour and characteristic taste of the DC ranked Sri Lanka at No. 04 position of world export of all kernel products. Sri Lanka is in No. 01 position of world exports of Brown fiber. The technique called drum system used to extract fiber resulting long pure fiber which are more suitable for brush industry.

Coconut Development Authority, Coconut Cultivation Board and Coconut Research Institute are three major Government Institutions that are responsible for product & quality improvement, supply development and research respectively.

To ensure the quality of DC exports, the certificate issued by the Coconut Development Authority should accompany with each and every shipment.

Sri Lanka's Desiccated Coconut exports records a 148% increase

news.lk - 22/12/2014

Sri Lanka has recorded a remarkable 148% increase during the first eight months of this year in Desiccated Coconut exports compared to the same period in 2013.
Sri Lanka has exported 26115 M/T in 2014 against 10530 M/T for the same period in 2013 for the period referred to above.

Sri Lanka's D/C exports are likely to have a bright future from a short and medium term market perspective due to Philippines D/C production being affected by Cyclones.

Philippines is the world's largest exporter of D/C. Her main market is the US with which country she has close political and economic ties. Last year the Philippines was seriously affected by a typhoon in which more than 30 million coconut trees were destroyed which to a great extent affected D/C production. Again Philippine was seriously affected by another Cyclone recently and it would have caused a considerable damage to the D/C industry.

Already Sri Lanka's exports have received a major shift from the Middle East and Europe to USA.

Sri Lanka has been a major exporter to the global market of desiccated coconut for many years. Desiccated coconut (D/C), a basic by-product of coconut with limited technological input has been a foreign exchange earner for the country for a long period of time.

Sri Lanka was in fact the birth-place of the desiccated coconut industry, when nearly a century ago, a Colombo based European firm established the first ever desiccated coconut factory in the world, in Sri Lanka - then known as Ceylon.

Ever since then, "Ceylon Desiccated Coconut" as it was then known, has remained a popular and affectionate name in the confectionery trade the world over. Sri Lanka DC is famous for its unique taste and as a result it is enjoying a premium price in certain market segments. Sri Lanka DC is available in various grades such as Super Fine, Fine, Medium, Coarse, and Fancy.

The end use of the product is used for fillers inside Chocolate Bars, ingredient in biscuits, Toffees, and Chocolates, Cake Decorations, Baking Industry, Snacks, Frozen Food Industry, Ice Cream.

There had been the usual ups and downs or changes in demand patterns for D/C over the years but the international market situation is certainly looking up currently for D/C exports. In addition prices obtainable for the product too are promising which augers well for foreign exchange earnings from this product.

SRI LANKA RANKS 89 IN FORBES’ BEST COUNTRIES FOR BUSINESS

The Sri Lanka government said that the country is placed 89th out of 146 nations in the Forbes’ Best Countries for Business 2014 ranking, while India was 93rd.

The Sri Lanka government said in a statement that Forbes noted, “however, low tax revenues are a major concern. A large trade deficit remains a concern, but strong remittances from Sri Lankan workers abroad help offset the trade deficit.”

The best country for business this year is Denmark, which ranked No. 1 three straight years between 2008 and 2010. The top10 includes also Hong Kong, New Zealand, Ireland, Sweden, Canada, Norway, Singapore and Switzerland.

Forbes’ annual ranking of the Best Countries for Business grades countries on 11 different metrics, including property rights, innovation, taxes, technology, corruption, freedom (personal, trade and monetary), red tape, investor protection and stock market performance.

According to the Sri Lanka government, the Forbes report highlighted that the country “continues to experience strong economic growth following the end of the 26-year conflict with the Liberation Tigers of Tamil Eelam. The government has been pursuing large-scale reconstruction and development projects in its efforts to spur growth in war-torn and disadvantaged areas, develop small and medium enterprises and increase agricultural productivity. The government’s high debt payments and bloated civil service have contributed to historically high budget deficits, but fiscal consolidation efforts and strong GDP growth in recent years have helped bring down the government’s fiscal deficit. However, low tax revenues are a major concern.”

The government statement also highlighted that elsewhere in the report,  “The 2008-09 global financial crisis and recession exposed Sri Lanka’s economic vulnerabilities and nearly caused a balance of payments crisis. Agriculture slowed due to a drought and weak global demand affected exports and trade. In early 2012, Sri Lanka floated the rupee, resulting in a sharp depreciation, and took steps to curb imports. A large trade deficit remains a concern, but strong remittances from Sri Lankan workers abroad help offset the trade deficit. Government debt of about 80% of GDP remains among the highest in emerging markets.”

SL betters BRIC nations

nation.lk - 21/12/2014

Forbes Best Countries for Business

Sri Lanka has been rated at the 89th position in the Forbes’ list of the best countries for business this year out of 146 nations ranking better than even larger economies like Russia (91), India (93), Brazil (94) and China (97). A breakdown of the ratings showed that Red Tape has declined to 85th position whilst Trade Freedom has been rated at 98, Monetary Freedom 124, Property Rights 72, Innovation 45, Technology 92, Investor Protection 50, Corruption 78, Personal Freedom 99, Tax Burden 124 and Market Performance improved to the 7th position.

“Sri Lanka continues to experience strong economic growth following the end of the 26-year conflict with the Liberation Tigers of Tamil Eelam.

The government has been pursuing large-scale reconstruction and development projects in its efforts to spur growth in war-torn and disadvantaged areas, develop small and medium enterprises and increase agricultural productivity. The government’s high debt payments and bloated civil service have contributed to historically high budget deficits, but fiscal consolidation efforts and strong GDP growth in recent years have helped bring down the government’s fiscal deficit. However, low tax revenues are a major concern. The 2008-09 global financial crisis and recession exposed Sri Lanka’s economic vulnerabilities and nearly caused a balance of payments crisis. Agriculture slowed due to a drought and weak global demand affected exports and trade. In early 2012, Sri Lanka floated the rupee, resulting in a sharp depreciation, and took steps to curb imports. A large trade deficit remains a concern, but strong remittances from Sri Lankan workers abroad help offset the trade deficit. Government debt of about 80% of GDP remains among the highest in emerging markets,” a profile of the country according to the website stated.

Forbes determined the Best Countries for Business by grading 146 nations on 11 different factors of property rights, innovation, taxes, technology, corruption, freedom (personal, trade and monetary), red tape, investor protection and stock market performance.
Denmark topped Forbes’ 9th annual ranking of the Best Countries for Business, followed by Hong Kong, New Zealand, Ireland and Sweden.

'The new year, a challenge for business’

Sunday Observer - 21/12/2014
By Lalin Fernandopulle

With the year coming to a close and a few more days for the new year, the business community expressed mixed sentiments about the past year and the year ahead. Some corporate and Chamber heads were pleased with the growth in business given the political stability and business environment.

Chevron Lubricant Lanka PLC, Managing Director and CEO Kishu Gomes said that 2014 was a fairly good year though there was no phenomenal growth in the lubricant business and added that there was economic predictability during the year than in 2013. He said that he was optimistic about 2015 and added that more would depend on the political and macro economic stability in the country.

The global economic scenario has a mixed outlook with certain countries emerging strong from the economic crisis and showing enormous potential for trade and investment while the Middle East and Russia are grappling to survive with the slump in oil prices and sanctions.

Russia is going into recession with the drastic drop in oil prices and US and Western sanctions. The Rouble has been devalued against the dollar and the Russian banks have raised key interest rates to boost the economy.

National Chamber of Commerce of Sri Lanka, Deputy President Sujeeva Samaraweera said that ending the 30-year battle against terrorism resulted in a peaceful situation in the country and a conducive environment for business activity. Infrastructure development such as ports, airport and roadways is an impetus for economic growth.

He said that the government has affirmed a series of benefits to SME entrepreneurs and large-scale businesses through the 2015 Budget. The cost reduction in power and fuel in the coming year will be help reduce production and overhead costs.

Reduction of interest rates and the business-friendly banking transformation will encourage entrepreneurs to venture into new ventures and expand businesses.

“The wage increase in 2015 will result in increasing disposable income which in turn will help maintain a stable cash flow in the market.

Therefore, 2015 will be a productive year for the business community.

As many foreign companies are exploring the possibility of investing in Sri Lanka in 2015 we expect a considerable increase in FDIs, Samaraweera said.

Heladive Group Chairman Rohan Fernando said that 2014 was a year full of challenges for the tea industry and in particular the tea export sector. The auction prices in Colombo declined in line with the world supply and demand which applies to all commodities.

However, Sri Lanka will finish the year as the best performing tea auction centre in the world having recorded an annual average price much higher than all other auction centres.

On the other hand, the biggest markets for Ceylon tea, the Russian Federation countries, Iran and Syria suffered direct and indirect trade sanctions imposed by the US and western countries. Sri Lanka's exports to these countries amount to 30% of total tea exports by volume.

Russia, due to the falling prices in crude oil devalued its currency on a regular basis and from a ROE of 30 Roubles to a US dollar at the beginning of the year to 70 Roubles by the second week of December.

Iran too suffered with oil income declining and severe trade sanctions being imposed via the blacklisting of all banking institutions in the country. The situation in Syria is far worse with supply chains and financial transactions badly disrupted due to the ongoing war.

"Two thousand and fifteen does not look too good with falling tea prices and trading conditions not improving in the global market place. This will be another challenging year for Sri Lanka where cheaper teas from other producing countries will compete for market share.

On the other hand, an opportunity will arise to enter the top end market hitherto occupied by Western brands, now being curtailed entry into Russia in a tit-for-tat action. It will be prudent to deploy the promotion and marketing funds collected from tea exporters for over the past three years in these countries for Ceylon tea brand to carve out a niche market,” Fernando said.

Industrial Development Board (IDB) Chairman Nawaz Rajabdeen said that the IDB has identified a large number of potential entrepreneurs from the North and the East through its regional programs. Two thousand and fifteen will be a positive year as the IDB has provided state-of-the-art technology and local and foreign exposure to entrepreneurs to showcase their products and be competitive in the global market, he said.

The Industrial Development Board has facilitated the SME sector and worked in all 25 districts to create new micro and small industries through the regional development unit.

More than 345 new industrial units were set up in the country with the support of Enterprise Promotion Officers.

The industries were identified through the availability of raw materials and proper training was extended with marketing support. Technical training was imparted to over 960 industrial units to increase productivity and compete with imported products.

Over 600 self-employment projects were created in a few districts under the livelihood program of the IDB. Over 12,000 new entrepreneurs were given assistance to develop new technology with the market research being conducted by the IDB.

Over 80 industrialists were provided assistance to visit the International Machinery fair in India and China to find advanced technology and new machinery to upgrade industries.

Under the village development program and the self-employment sector for women entrepreneurs over 90 people were provided interest free loans of Rs 250,000 by the Regional Development Bank.

This year, the IDB had an accelerated program to restructure the industrial sectors to increase productivity, packaging, branding for the local market competing with substandard imported products.

International Tea Day Observed In Mumbai

On the occasion of International Tea Day, Dlecta Café – India’s leading beverage vending solutions company observed the day by raising awareness on tea followed by a Tea Tasting session to celebrate the legacy of the iconic beverage. Prahlad Kakkar, renowned Ad man and tea aficionado attended the event and shared stories on his love for the beverage. The day was also marked by the unveiling of the first ever automatic fresh tea brewing machine. The machine is unique to the world of tea and is being patented for technology.

International Tea Day has been observed since 2005 in many tea producing countries most of which are Asian. The first International Tea Day was celebrated in New Delhi on the 15th December 2005 and has ever since been observed by several countries each year.

“International Tea Day was formerly introduced with the aim of drawing global attention of governments and citizens to the impact of global tea trade on workers, small growers and consumers. The forum has helped many small scale growers and workers to come together and become a collective voice of the industry.Today, we observe this day to continue reminding ourselves that tea is not just the favorite beverage of India but also that there is an entire industry that thrives and livelihoods that sustain because of tea,” says Mr. Deepak Jain, Founder and Managing Director, Dlecta Foods Pvt. Ltd.

“Even though Tea is lot more subtle and varied than coffee it is losing out to it because the younger generation is adapting to it and it is not promoted sufficiently. Tea is our heritage and should be promoted as the national drink of India,” says Mr. Pralhad Kakkar.

Mr. Jain also added that India being the second largest producer and biggest consumer of tea after China, is a global lead in this segment. “We occupy the fourth place in exports after Kenya, China and Sri Lanka, and together with these nations account for 78% of world production and 71% of world exports. In 2013 world tea production was 4819 million kgs, of which India’s share was 25% with a volume of 1200 million kgs,” he adds.

Dlecta Foods Pvt Ltd, the parent company of Dlecta Café is a leading name in the Food and Beverage (F&B) industry specializing in the dairy segment. The company is already a pioneer in the manufacture of dairy creamers. With the introduction of the tea brewing machine it has also become the first Indian company to make a breakthrough of significance in the tea vending circuit.

“The technology is one of its kind in the vending space and the first one for tea. Coffee has seen advancements from time to time and is now at a place where it enjoys dominance in the retail scenario. We wish to be progressive in our approach to bring tea to that level. In fact, India is pre-dominantly a tea drinking nation and given the deserved quality and taste, we are positive that tea will supersede all other beverages. Dlecta Café’s tea brewing machine is only the first of many steps that will lead to tea gaining cult status in the future,” concludes Mr. Jain.

About Dlecta Foods Private Limited:

Dlecta Foods Private Limited commenced operations in 2001 primarily as a marketing company. As the sole marketer and distributor of Dynamix Cow Ghee, D’lecta not only established the Dynamix brand, but also went on to create a market for Cow Ghee in India. Till its introduction, the consumer ghee market was dominated by buffalo ghee.

Since then Dlecta has introduced a slew of products and services that include food ingredients with special focus on dairy, bakery, confectionary and nutrition. It comprehensively covers the needs of any HORECA, offering from a range of top quality value products for the industry and a small range of consumer products including cheese, ghee, UHT milk, dairy creamers and even vending solutions.

World’s top ICT economy in rare opening for Lankan start-ups

Asian Tribune - 12/12/2014

In a major renewal of its economic cooperation with Sri Lanka, World’s ICT innovation leader has announced that it is ready to form a joint Business Council with Sri Lanka for the first time, as revealed on 04 December-and Lankan ICT start-ups have received a breakthrough invitation to showcase themselves at one of world’s top-tier start-up events in 2015.

“It is time that we establish a Finland-Sri Lanka Business Council for B2B activities. Such mechanisms will kick-start the process. We are also looking forward to see SME level Sri Lankan ICT BPM and business start-ups at the 2015 ‘Slush’ event in Helsinki” said an upbeat Matti Anttonen (Finnish Deputy Minister of External Economic Relations & Finnish Under-Secretary of State) on 04 December in Colombo.

Finnish Deputy Minister Anttonen, who was leading the first ever Finnish business delegation to Sri Lanka was addressing Rishad Bathiudeen (Minister of Industry and Commerce) on 04 December during his courtesy call on Minister Bathiudeen at the Ministry of industry and Commerce, Colombo. Joining Minister Bathiudeen were two of his top officials-Bandula Egodage (Chairman & CEO-EDB) and RDS Kumararatne (DG-Department of Commerce). The first ever high level trade & business delegation to Sri Lanka from the World’s ICT leader Finland, the team consisted of Rauli Suikkanen (Delhi based Roving Ambassador of Finland to Sri Lanka), Pertti Ikonen (aide for trade coordinator/MFA), Ulpu Koskinen (First Secretary/Office of the Roving Ambassador), Janne Hirvonen (Attache, South Asia Unit/MFA), Siv Ahlberg (Director, Finnpartnership), Leena Osterberg (Head of Finpro Regional Office, New Delhi), Anand Sethi (Senior Advisor (PhD), Finnfund) and Jouni Aitamaa (Director, Outotec Corporation, Sri Lanka).

“As for Sri Lanka’s growth, the positive thing we see is that things could only get better here! The business atmosphere in Sri Lanka is very good and encouraging. My delegation had a very good series of meetings in Sri Lanka. Sri Lanka tourism is on our radar. We are no 9 in global Doing Business Index” said Finnish Deputy Minister Anttonen, and added: “Our economy, after a little stagnation has started to grow again. As for Finnish investments to Sri Lanka, there is growing interest. I suggest it is time that we establish Finland-Sri Lanka Business Council for B2B activities. Such a mechanism will kick-start the process together with private sectors at both ends. We are also looking forward to see SME level Sri Lankan ICT BPM and business start-ups at the ‘Slush’ event held on 2015 November 18-19 in Helsinki. Slush is the focal point for Eurasian IT start-ups and tech talent to meet with top-tier international influencers, investors and media and is backed by such successful innovators as Rovio, Supercell and MySQL. Sri Lankan IT and business services can promote their ventures at Slush.”

The Nordic powerhouse Finland is the World’s ICT Innovation Leader is also the lead producer and user of information and communication technology (ICT) in the world and ranks No 1 in the Legatum Prosperity Index. The $ 195 B economy also was the birthplace of such global brands as Nokia, and Nokia Siemens Networks, F-Secure (IT sector), and Viking Line (shipping).

“Your visit to Sri Lanka and also the proposal to establish first Finland-Sri Lanka Business Council will create the much needed new platform of economic cooperation for both countries and will boost bilateral trade” said Minister Bathiudeen, and added: “We thank you for your renewed on Sri Lanka. We are focusing on a globally competitive industrial development effort in Sri Lanka as per the vision of HE the President Mahinda Rajapaksa backed by market oriented policies. Even our trade policy with liberalised tariff structure is focused on hub focused development. Partnering with Finland, specifically with Finnish investors will open the door for both parties for win-win outcomes. Finnish investors can invest here and use our regional Free Trade Agreements such as ISFTA and PFTA to access the growing South Asian markets while Sri Lanka could benefit from Finnish funds and crucial tech transfers. With bilateral trade at a mere $28 Mn, both countries largely remain virgin markets to each other and it’s time we move to explore these unrealised potentials.”

According to the Department of Commerce, Sri Lanka’s trade with Finland has been fluctuating for the last few years and in 2013, and reported $28 Mn in 2013, with exports taking $16.05 Mn. Tea is the main item exported to Finland (55% in 2013) followed by apparel.

Rauli Suikkanen (Delhi based Roving Ambassador of Finland to Sri Lanka), addressing Minister Bathiudeen said: “This is the first time that a Deputy Finnish Minister is visiting Sri Lanka. A Finland-Sri Lanka Business Council will promote economic cooperation. Powerful Finnish institutions such as FinFund, FinPro can support in financing and facilitation in this regard.”

Sri Lanka’s leading import from Finland, mobile cellular phones, saw their peak in 2010 and from 2011 is overtaken by marine propulsion engines and electric generating sets. Sri Lanka is a GSP Beneficiary Country under EU GSP Scheme, which gives an added advantage for Sri Lankan exports to Finland.

‘Lanka IT sector to hit $1B mark next year’-EDB

news.lk - 05/12/2014

Sri Lanka’s surging IT and BPO exports would hit the critical dollar one billion mark as early as next year, surpassing previous expectations! And London Stock Exchange and HSBC have praised the Lankan IT sector ‘with joy’, as revealed on 05 December in Jaffna. And the pioneering Northern IT Exports forum by EDB & ICTA was packed with enthusiastic regional IT industry.

“We earned $719 Mn from ICT exports, and our projection for 2014 is $820 Mn. At this rate, we expect to hit dollar one billion mark very soon-as early as 2015. We have seen 123% growth in IT sector over the last five years. London Stock Exchange and HSBC also praised the Lankan IT sector with joy” said Saman Maldeni (Director, Export Services of SLEDB) on 05 December in Jaffna.

EDB Director Saman was addressing the pioneering IT/BPM Export Forum & Entrepreneurship Worksop that took place in Jaffna on 05 December at Jaffna’s Tilko City Hotel. The first ever such Forum to be held in Northern Province, it packed 30 ICT operators and 30 would be young entrepreneurs and start-ups and seven leading Lankan IT BPM CEOs. Held on the theme of “Accelerating IT Exports and Fostering Entrepreneurship”, the one day, one-of-a-kind session consisted of presentations from seven Lankan IT firms – Virtusa, Stax Inc, WSO2, Calcey, CodeGen, Hayleys BPO, 99X Technology well as top two public sector agencies  ICTA and EDB. Co-organisers of the Forum were EDB and ICTA.

“Sri Lanka’s IT/BPM sector vision 2022 is a $ 5 Bn revenue, 200,000 direct jobs and 1000 start-ups. Northern region has been identified as one of the major regions that can harness its strengths and skills to make this dream a reality” said EDB Director Saman, and added: “Jaffna region’s stress free environment, availability of skills and infrastructure such as internet and electricity are key factors in this regard. National Outsource Association of UK awarded SL the Outsource destination of 2013 which shows the up and coming potential of Lankan IT and business processing sector. In 2013, we earned $719 Mn from ICT exports, and our projection for 2014 is $820 Mn. At this rate, we expect to hit dollar one billion mark very soon-as early as 2015. We have seen 123% growth in IT sector over the last five years. This growth was across all IT/BPM sectors, in domestic and export sectors.  A reason for this is our high quality-London Stock Exchange and HSBC also praised the Lankan IT sector with joy. This was due to our high quality software products and services that they received. EDB is not a regulator in Lankan exports but a promoter, supporter, facilitator and mediator operating through a regional network.”

Addressing the event, Mano Sekaram (SLASSCOM Vice Chairman) said:  ““Just five years ago, such an event was merely a pipe dream. Today however peace and prosperity is finally the reality we are living in and events like this are not only possibility but happening as we speak. We kicked off the Jaffna IT week two days ago at Vembadi School ,where we shared with the school children who are the future leaders of our country of the career prospects in IT/BPM –this was a successful 2 days in which we had over 2000 children and youth taking part. Sri Lanka’s IT/BPM sector has taken less than 15 years to become the country’s fifth largest exporter. In 2013, export revenue grew to an estimated $ 719Mn, employing 80000 with 220 firms engaged in it. We have an ambitious vision-our 2022 vision of the industry is to be a $5 Billion industry creating 200,000 Jobs. Part of our strategy  is to build regional ICT capacity creating 2 tier cities and fostering entrepreneurship to ignite start-ups.  Today, the Western Province contributes over 95% of IT/BPM exports. The creation of ‘Second Tier Cities’ –Kandy, Galle and Jaffna-will IT empower the regions and would see a paradigm shift from being Colombo-centric to regional-centric IT development. Furthermore, it has been identified that the proliferation of ICT in provincial regions is the fastest way of developing marginalised areas. Let me thank all the my industry friends , industry leaders /CEO, EDB officials, ICTA  colleagues and our sponsors for  working tirelessly  to put together this even and coming all the way to Jaffna.”


Reshan Devapura (CEO-ICT Agency Sri Lanka), addressing the event, said: “Previously we expected  to break $ 1 Billion mark in IT revenue by 2016 or later but now, with latest revenue projections coming in, we are expecting to hit $ one billion revenue by 2015 with 100,000 IT sector employment in ’15.”


EDB has conducted many IT related events, conferences, trade exhibitions, both locally and abroad. It also successfully conducted export coaching programmes for IT sector personnel.

EDB to host international delegation at SLDF 2014

Daily FT - 05/12/2014

Lanka Design Festival (SLDF) 2014, which is backed by local industries and the Government, is scheduled to kick off over the next few days.

The main objective of the festival is to promote design driven exports as a major economic sector for the country. For this reason, SLDF is supported by Sri Lanka’s apex institute for driving exports, the Sri Lanka Export Development Board (EDB).

Together with the EDB, SLDF’s fashion edition is held under the theme ‘From manufacturing to branding’, encompassing Sri Lanka move towards a brand-driven future with regional hub status in design.
In light of this, SLDF will join hands with EDB to draw international attention to the massive potential of emerging exports like contemporary handloom fashion.

Using SLDF as a platform to gain worldwide recognition for the growing potential of handlooms as a high fashion export, EDB is hosting an international delegation of buyers, fashion opinion leaders, media, retailers and fashion presentation experts from Europe, North America, India, etc. This delegation will be direct buyers, promoters and ambassadors for local design driven exports.

EDB Chairman and Chief Executive Bandula Egodage stated that SLDF’s objectives to promote traditional crafts revitalised through design such as handloom, aligns closely with EDB’s mission to discover, develop and promote new design exports from the country.

“EDB is an institution dedicated to strengthening existing exports and promoting new exports for Sri Lanka. SLDF plays an important part in helping us in this mission by integrating design into traditional sectors like handloom and crafts to revive them as new exports for Sri Lanka.

“We find it crucial for our exports to meet the needs of the global market and evolve as high quality products and we’re proud to be part of the process of traditional cottage industries transforming into potential power exports with SLDF 2014. We have supported SLDF for the past few years and in 2014 too we are delighted to support the event as key stakeholders,” Egodage said.

In addition to hosting a powerful international delegation of ambassadors for Sri Lankan design-driven exports, EDB has also extended its support to host an impressive fashion display of contemporary handloom fashion, produced and presented by an international team of experts.

This dazzling display of locally woven textiles as high-end fashion includes a range of cutting-edge collections targeting global consumers and the launch of an e-commerce platform where European and North America consumers can directly purchase Sri Lanka handloom online.

SLDF 2014, the national celebration of design supported by the Sri Lanka Export Development Board, will include an exciting and educational range of forums, exhibitions and shows which will be held at SLECC from 5-7 December.

In addition to the EDB, SLDF is also supported by the Ministry of Economic Development, Sri Lanka Tourism and Sri Lanka Apparel as key stakeholders. Brandix Lanka Ltd. and MAS Holdings are the official fashion industry patrons while other supporters include Coats Thread Lanka – official thread and zip partners, GT Nexus – official technology partner, Daily FT/Daily Mirror/Sunday Times – official print media, MTV/MBC – official electronic media, Mount Lavinia – official venue partner, Triad – official communications partner and Cheryl Gooneratne Hair & Beauty Academy – official hair & makeup partner, Sunshine Travels – official travel partner and Pico – official exhibitor logistics partner.

Visegrád Four to synergise Lanka's FTAs to penetrate South Asia

Daily News - 04/12/2014

The V4 industrial economy billed as the Tetra Tiger due to its high growth, has revealed for the first time that it wants to synergise Lanka's historic FTAs to penetrate South Asia, and it is also readying for new bilateral efforts of high capacity across the board-in Lanka's wheat production, energy and even defence.

"Our aim is to make Sri Lanka our business and investment platform to South Asia. There are many Slovakian manufacturers ready to invest here, produce and export to South Asian markets using your FTAs with India and Pakistan," said Peter Burian, State Secretary of the Ministry of Foreign and European Affairs of the Slovak Republic recently.


V4 stands for Visegrád Four (or Visegrád Group) -an alliance of four Central European states of Czech Republic, Hungary, Poland and Slovakia who grouped as V4 in 1991 to further their EU integration and was also called as the 'Tetra Tiger' due to its raging GDP growth up-to 2007. State Secretary Burian was making a courtesy call on Minister Bathiudeen with two members of his official delegation to Sri Lanka. Joining Minister Bathiudeen at the in-depth discussions were Bandula Egodage (Chairman & CEO-EDB) and other top EDB officials.

"Our intention is to renew trade with Sri Lanka. It is time to leverage the political friendship and understanding between both countries towards trade and investment promotion at both sides. We have something to offer in every aspect of Sri Lanka's five hub development strategy," said State Secretary Burian.

"We are very interested in SME and industrial cooperation with Sri Lanka-there are many Slovakian manufacturers ready to invest here, produce and export to South Asian markets using your FTAs with India and Pakistan."

"Our main export to Slovakia is apparel. With the efforts of my Department of Commerce and EDB, we have diversified our exports to Slovakia beyond apparel, with tyres, coconut fibre, rubber tubes and other textile articles. Still there is great, unrealised trade potentials that we need to explore since $ 21 million total trade shows that we are largely virgin markets to each other. And since 95% of our exports to Slovakia are our apparels, we invite Slovakian investments to this sector as well."

Minister Bathiudeen said, "We import almost 900,000 metric tonnes of wheat annually and therefore your support to kick-start our wheat production could save our foreign exchange considerably."

Over US$ 1b gems to China by 2016

Daily News - 05/12/2014

Sri Lanka could bridge the trade imbalance with China to a greater extent and also increase the US$ one billion overall export target in 2016, if the local gem/precious stone exports were encouraged and developed. At present there is a huge trade gap in favor of China, Director Marketing and Export -National Gem and Jewellery Authority, Rohan Perera said.

"We are now looking at increasing gem export to China being the biggest buyer in the recent past. Since, China being a prosperous country in the world the demand for super luxury items like gems has increased considerably," Perera told the Daily News Business.

As far as Sri Lanka exports are concerned, China is the 18th largest export market for Sri Lanka with exports of US$ 121 million in 2013, one percent of total exports of Sri Lanka against the import of US$ 3 billion worth of goods to Sri Lanka

This shows that there is huge un-favorable trade balance between the two countries.

The positive list of products may include large number of products in the proposed FTA, but the issue is whether Sri Lanka could supply all the products.

Perera said that with the signing of the Free Trade Agreement (FTA) many Chinese buyers will tend to buy gemstones especially blue sapphire.

Therefore, we could bridge the trade gap and also increase gem exports to US$ one billion by 2016, he said.

The government has very good ambitious schemes to increase gem export. he added.

Director Marketing and Export authority being the regulator developer and promoter of the sector have launched may projects to promote the sector by encouraging new players to achieve set targets.

Further, they also encourage all gem exporters to participate in international trade fairs and exhibitions, he said.

China could supply any volume of its products. Out of the 30 products exported to China, five products, apparel, tea fibre, tobacco and rubber cover nearly 75 percent of exports to China.

20 IT SMEs in EDB’s first Jaffna Export Forum today

Daily FT - 05/12/2014

• ‘30 more would be entrepreneurs too’: SLAASCOM’s Sekaram
• ‘$ 5B IT exports by 2020’: EDB’s Egodage
• ‘Cloud tech helping regional IT’: SLAASCOM’s Sekaram2103 IT exports at $ 719 m

Sri Lanka’s apex export facilitator EDB’s first IT event in Jaffna has been boosted by an influx of Jaffna based operators and would be ICT entrepreneurs on 4 December and the event also packs in-depth industry presentations from no less than seven top Lankan IT firms.

“Almost 20 SME IT operators in Jaffna region have registered for 5 December’s IT/BPM Export Forum in Jaffna. Another 30 prospective IT entrepreneurs from Jaffna who are looking to set-up, too have joined making it a total of 50 players,” said SLASSCOM Vice Chairman Mano Sekaram on 4 December in Colombo.

Sekaram was discussing in Colombo on the progress of first ever IT/BPM Export Forum and Entrepreneurship Workshop to be held in Jaffna on 5 December at Jaffna’s Tilko City Hotel. Held on the theme of ‘Accelerating IT Exports and Fostering Entrepreneurship’, the one day, one-of-a-kind session is scheduled for presentations from seven Lankan IT leaders – Ruwindhu Peiris (Managing Director of Stax Inc), Dr. Sanjiva Weerawarana (Founder, Chairman and CEO of WSO2), Mangala Karunaratne (Founder and CEO of Calcey), Dr. Harsha Subasinghe (CEO & Chief System Architect of CodeGen), Dr. Arul Sivagananathan (Managing Director Hayleys Industrial Solutions and Hayleys BPO), Mano Sekeram (Co-Founder and CEO of 99X Technology) and Madu Ratnayake (Head of Digital, SVP & General Manager at Virtusa) – as well as top two public sector agencies (presentations by Saman Maldeni-Director–Export Services of EDB, Reshan Dewapura (CEO of ICTA) and Fayaz Hudah (Program Head of ICT Agency of Sri Lanka (ICTA).

“Almost 20 SME IT operators in Jaffna region have registered for 5 December’s IT/BPM Export Forum in Jaffna. Another 30 prospective IT entrepreneurs from Jaffna who are looking to set-up, too have joined making it a total of 50 players,” said Sekaram, and added: “What is important is that not only we already have 50 registrants, but they are SME operators in both hardware and software with entrepreneurial side. The old way of doing IT exports is that being a domestic producer in Colombo, you enter the export market but with the cloud powered technologies and overall online connectivity across the country, its different today.”

The IT/BPM Export Forum runs in parallel to ‘Jaffna IT Week’, that began on 3 December and ends on 6 December in Jaffna. The event comprises of Future Careers Program (on 3, 4 December at the Vembadi Girls’ High School), the 5 December’s IT/BPM Export Forum and Jaffna IT Conference (at the Kailasapathy Auditorium of University of Jaffna on 6 December). The Export Development Board (EDB) is partnering SLASSCOM in this initiative with Information and Communications Technology Agency of Sri Lanka (ICTA), the Ministry of Education, the University of Jaffna and the Yarl IT Hub.

EDB Chairman and CEO Bandula Egodage said: “SLAASCOM, ICTA, EDB and all the IT/BPM firms are setting up a new milestone. EDB is a facilitator in this event. The Government is focusing on IT/BPM sector since it is the future. When it comes to non-traditional exports development, IT plays a major role. Huge improvements are seen and also needed for us to achieve $ 5 billion IT/BPM exports by 2020. In 2013, IT exports stood at $ 719 million. Currently IT is concentrated in Colombo but the way forward is taking them to regions starting with Tier 2 cities. Jaffna is the third city after focusing on Kandy and Galle.  When it comes to EDB, we have conducted IT related events, conferences, trade exhibitions, both locally and foreign. We also conducted export coaching programmes for IT.”

New dimension in Lankan fashion and apparel to debut at SLDF 2014

Daily FT - 02/12/2014

Sri Lanka Design Festival’s 2014 fashion edition is taking shape with a preview into Sri Lanka’s brand-led future in fashion. Taking a giant step forward from the country’s longstanding reputation as a sustainable and technologically advanced manufacturing destination, Sri Lanka is about to forge its reputation as a fashion industry with its own brands. Sri Lanka Design Festival is the platform for this major step for Sri Lanka, and its sixth successful fashion edition is scheduled to unfold this week.

Big brands and bigger names; fashion and apparel celebrities at SLDF

SLDF 2014 will bring down a number of apparel big names and leaders in fashion to witness Sri Lanka’s fashion evolution. The dynamic duo Martin Raymond and Chris Sanderson from The Future Laboratory revolutionary trend forecasting, research and brand innovation consultancy who have presented thought-provoking ideas in UK, US, Germany, Australia, Denmark and have an impressive clientele including  Louis Vuitton, M&S, Microsoft and BMW etc. will be speaking at SLDF.
Other influential personalities visiting Sri Lanka for the festival include Kurt Cavano – the founder and chief strategy officer of GT Nexus – featured among World Trade Magazines world’s 50 most influential business people and a seasoned veteran on technology and innovation related to fashion.
Among the renowned personalities speaking at SLDF is Peter Ingwersen – the former LEVIS director for Europe. Peter is highly passionate about Sri Lankan fashion and the immense potential it holds to deliver something unique to the world. His several decades’ worth experience on building global brands is now to be shared in Sri Lanka. Hailing from a fashion supply chain background, Giles Watkins – Coats Commercial Director of Global Services is also attending the forum to share his expertise on building brands in foreign landscapes.
Former editor of Elle India Nonita Kalra who is an expert on Indian fashion markets and consumers is also among the elite fashion names visiting SLDF this year. Another distinguished personality for SLDF 2014 includes Jane Rapley OBE who has become an icon in British design and was honoured with Queen’s Order of the British Empire, for leading the team that launched the careers of some of the most legendary names in design, including Alexander McQueen, Stella McCartney and Matthew Williamson. Other delegates include seasoned fashion educator and designer Jane Gottelier, experienced colour theorist Janet Best and British designer/educationalist Patrick Gottelier.
Among Sri Lankan apparel big names participating in SLDF this year as speakers is CEO of Brandix Lanka Ltd. Ashroff Omar and Chairman of MAS Holdings, Deshamanya Mahesh Amalean. The festival is due to see other local fashion brand leaders such as Ajay Amalean – Managing Director of amanté/Director of MAS holdings as well as Arshad Sattar – Director of Avirate/Timex Garments.


Fastest ticket to a brand-led future; South Asian Apparel Leadership Forum
With over 100 professionals in apparel manufacturing, supply chain services, ethical fashion, retail brands, media and opinion leaders the fifth annual South Asian Apparel Leadership Forum (SAALF) will be held this December as part of Sri Lanka Design Festival. This forum aims to bring together the most cutting-edge international knowledge on building brands. With expert insights into global consumer behaviour patterns, technology, the pros and the cons for Sri Lanka as well as first-hand experiences in building brands at home and abroad from those who have truly walked the talk.
Whether you are an apparel industry professional, a designer launching own brand or an entrepreneur looking to take a local business to the global forefront, South Asian Apparel Leadership Forum is your fastest ticket to some world-class knowledge on the topic. The forum is scheduled to take place at SLECC, 6 December 9 a.m. to 1 p.m.
‘Fashion Innovation Runway’ featuring the best of local apparel industry and a preview into Sri Lanka apparel’s brand led future
With a special showcase of the success stories of using ‘design’ as the value addition for apparel manufacturing industry, this fashion show brings together the creative talent of the design studios in Brandix, MAS Holdings, Orient Design, Orit apparel, Star Garments etc. with supply chain experts like Coats, Rainwear and Colourzone. A number of unique brands such as RedCocoon, Kiito, Prabath, Aqua Island, Nithya, Lonali, RumPunch, LICC, Aviraté and Tarja along with the international brand George will be part of this extravagant show which promises to be a fantastic display of fashion made in Sri Lanka.

Networking and speed dating at SLDF 2014 
As a marked event in the global apparel calendar, Sri Lanka Design Festival is attended by a large number of retailers, sourcing specialists and brands keen to establish links with Sri Lankan apparel and fashion businesses. SLDF’s many pre-fashion show cocktails, and fringe events provide many informal networking opportunities, making the festival a hotspot for making business matches between retailers, brands and fashion manufacturers.
For tickets and more information, call SLDF Secretariat on 0115867772/3, visit them at 29, Lauries Road Colombo 4 or log on to www.srilankadesignfestival.com.
Sri Lanka Design Festival 2014 will be held between 5th to 7th December at SLECC, Colombo with the Ministry of Economic Development, Export Development Board, Sri Lanka Tourism and Sri Lanka Apparel as Key Stakeholders. Brandix Lanka Limited and MAS Holdings are the Official fashion industry patrons while other supporters include Coats Thread Lanka – Official Thread & Zip Partners, GT Nexus – Official Technology Partner, Daily FT/Daily Mirror/Sunday Times – Official Print Media, MTV/MBC – Official Electronic Media, Mount Lavinia – Official Venue Partner, Triad – Official Communications Partner and Cheryl Gooneratne Hair & Beauty Academy – Official Hair & Makeup, Sunshine Travels – Official Travel Partner and Pico – Official Exhibitor Logistics Partner.

Vietnam calls for FTA

Daily FT - 02/12/2014

• ‘Appointing Lanka’s first trade official to Vietnam’ – Rishad
• ‘Bilateral trade should not be just rice and tea’ – Kieu Thu
• YoY bilateral trade surges by 88%
• ‘Time to explore joint apparel synergies too’ – Kieu Thu

Stepping up its trade cooperation with Sri Lanka, Vietnam said that it was working towards establishing a groundbreaking FTA with Sri Lanka.

In view of this, Sri Lanka has promptly appointed its first-ever trade officer to Vietnam, the world’s fifth largest apparel exporter which is ready to partner with Sri Lanka’s own apparel industry.

“There is huge unrealised trade potential between both countries that we need to explore. Trade need not be mostly the exchange of rice and tea between both countries. Therefore, while in Colombo, I will take up the task of promoting an FTA with Sri Lanka,” said Vietnam’s new ambassador to Sri Lanka, Phan Kieu Thu on 27 November in Colombo.

Ambassador Thu was speaking to Industry and Commerce Minister Rishad Bathiudeen during her maiden courtesy call on the minister at EDB.

Joining Minister Bathiudeen in the discussions were officials from the Department of Commerce and EDB Chairman and CEO Bandula Egodage.

“The former Vietnam Ambassador in Colombo Ton Sinh Thanh has done a good job in Colombo promoting bilateral trade right until the last minute of his departure. He was also instrumental in promoting bilateral investments,” said Minister Bathiudeen said.

“As per the export vision of President Mahinda Rajapaksa, we are targeting $ 20 b in exports by 2020 and free trade agreements with our partners could help us in this effort. The Department of Commerce has increased its efforts to boost bilateral trade. I am pleased with the establishment of our successful first-ever Lanka-Vietnam official trade mechanism in August. This Joint Trade Subcommittee has enhanced existing bilateral trade and economic relations to new heights. I am pleased to inform Your Excellency of the appointment of the first Lankan Trade (Promotion) Officer to Vietnam by the Department of Commerce and this officer is expected to start in January 2015. Next year we are also planning to send a strong Lankan business B2B delegation to Vietnam, based on a Vietnamese invitation to do so during my August visit.”
In reply Thu said: “We are working on receiving the Lankan B2B delegation in Vietnam next year. Expansion of your exports to Vietnam will give a wider choice of Lankan goods to our consumers and an FTA is a great instrument.”

At present Vietnam ranks 40th as an export destination and 23rd among suppliers to Sri Lanka, accounting for 0.43% of total Lankan exports and 1.06% of total imports respectively. Total trade between both countries – which stood at $ 119.5 m in 2012 – increased to $ 224.4 m in 2013, registering a remarkable growth of 88%.