Sri Lanka Targets $12bn Exports in 2012 up from $10.4bn in 2011. Upcoming Trade Fair & Weaker Rupee to Help

16th March 2012, www.lankabusinessonline.com

Sri Lanka is targeting 12 billion US dollars in exports in 2012 up from 10.4 billion in 2011 which will be helped by an upcoming trade fair and a weaker rupee, export development board chief Janaka Ratnayaka said.

Ratnayaka said if current trends continue exports may reach a 2015 target of 15 billion rupees earlier than expected.

But Sri Lanka's exports increased over 20 for two years running with a stable rupee at around 110 to the US dollar. A currency depreciation, increases profits of an export firm by cutting real wages of workers.

A depreciating currency impoverishes all wage earners and also destroys capital available for future investment by shrinking the real value of financial savings, including bank deposits and pension funds.

Sri Lanka started to have balance of payments trouble and its currency started to depreciate shortly after 1951 when a money printing 'soft-pegged' central bank was created, abolishing a 'hard peg' or currency board, which had kept the rupee fixed for more than 65 years.

Ratnayake said an upcoming 'Expo 2012' trade fair to kick off on March 28, will help Sri Lanka boost exports.

"Already more than 1,000 foreign delegates have signed up," Ratnayaka told reporters.

"Day by day more people are signing up and hotels in Colombo are fully booked and running out of rooms."

A 300 strong delegation would be coming from China.

Related Info :

• Sri Lanka Expo 2012 Fair Signs up 370 Exhibitors. To be Held from March 28 - 31 at BMICH, Colombo

• Sri Lanka's 2011 Export Earnings Rise by 22.4pct while Imports Up by 50pct Affecting Trade Deficit to Increase by 99.6pct
 
• Exporters Directory CD Launched by Sri Lanka Export Development Board

ICT Export Value Survey for 2010 by Export Development Board to Identify Current Export Value of IT/BPO Industry. Fifth Largest Export Earner in 2007

16th May 2011, www.island.lk

In the prevailing globalised business environment, the IT/BPO industry is emerging as one of the significant contributors to the Sri Lankan export market. However, due to the volatile and changing nature of the industry, much of the export revenue that is generated has not been clearly highlighted and recognised.

To address this gap, the Sri Lanka Export Development Board (EDB) together with the IT/BPO industry, has now launched the second ICT Export Value Survey for 2010, to identify the current export value of the industry, the board said in a statement yesterday (17).

The EDB carried out the first ICT Export Value Survey for 2006/2007. The survey identified 178 IT/ ITES export companies. It also identified the value of the IT/BPO exports to be US$ 173 million in 2006 which grew by 23% to US$ 213.2 million in 2007. The IT/BPO exports in 2007 depicted that its contribution as the fifth largest export earner for Sri Lanka. This finding also gives weight to the industry’s increasing potential of ultimately being one of the topmost players in the Sri Lankan export market.

Janaka Ratnayaka, Chairman and Chief Executive of the EDB, said, "There is a need to continuously measure the growth of the IT/BPO industry and its contribution to the country’s economy as the government has recognized the industry to be one of the key players in the Sri Lanka economy". The survey will show how far the industry has moved towards achieving its export revenue target of US $1 billion by the year 2015.

PricewaterhouseCoopers Sri Lanka, which carried out the initial survey in 2007, has been appointed to conduct the 2010 survey as well.

In addition to ascertaining the export value for the IT/BPO industry in 2010, the current survey will also capture the current status, developments and challenges in other operational areas of the industry. These include the service offerings, workforce, infrastructure, communications, markets, quality certifications and stakeholder support. Further, in light of the end of the war, it is expected that the IT/BPO industry would have appreciably changed and grown since the initial survey was conducted, and therefore the current survey is expected to capture and explore such changes.

The survey will commence in May 2011, with a selection of companies in the industry, being directly interviewed. The survey steering committee, formed by representatives of the EDB, the IT/BPO industry, the Information and Communication Technology Agency of Sri Lanka, Board of Investment and SLASSCOM, encourage the IT/BPO industry to provide their fullest support and cooperation for this survey. The survey results will be the basis for Government policy decisions in the future regarding the ICT industry. Further, a summary report will be generated from the survey, on the ICT export industry in Sri Lanka, which can be used for global and regional comparisons and also as a baseline for planning industry strategy, the EDB statement said.

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Exporters Directory CD Launched by Sri Lanka Export Development Board

13th May 2011, www.dailynews.lk

The directory CD of the exporters by the Sri Lanka Export Development Board (EDB) was recently launched at the Export Bazaar by the Economic Development Minister Basil Rajapaksa. Industries and Commerce Minister Rishard Bathiudeen and EDB Chairman and Chief Executive Janaka Ratnayake were also present on this occasion.

The Directory CD of the exporters has been developed by SLT Rainbow Pages, in partnership with the EDB. This Directory CD will showcase local businesses in overseas markets. At a time when peace has dawned in the country and a new growth spurt is witnessed in the industries of the country, many exporters want to showcase their products and services in overseas markets to attract foreign buyers. This Directory CD will be the ideal platform for this interaction and will be instrumental in giving popularity to local businesses overseas.

Export Development Board Chairman and the Chief Executive Janaka Ratnayake said "The collaboration of two nationally important entities will surely uplift Sri Lanka's image and give the much needed boost to exporters".

SLT Rainbow Pages is one of the best known names in directory information dissemination. Rainbow Pages is at the cutting edge of technology and launches products that are in keeping with the latest technological trends in the world. Some of the products unveiled by Rainbow Pages include WAP for Mobile Phone Users, the www.rainbowpages.lk Web Portal, Directory CD and Rainbow Pages on IPTV. In keeping with the policy of giving customers the best and the latest, Rainbow Pages in collaboration with EDB, plans to launch a web directory and an e directory for the exporters of Sri Lanka in the near future.

According to SLT Rainbow Pages CEO Malraj Balapitiya, they are planning to develop a web directory exclusively for exporters. The web directory will provide great exposure to exporters through the national web site. When overseas visitors require information about a local business, naturally they access the country's main directory web site. During 2010, people from 155 countries have accessed the Rainbow Pages web site to search information and this shows the popularity of this web site.

Therefore SLT Rainbow Pages is an effective partner to the EDB to provide great exposure for local exporters to access overseas markets successfully.

Image: The Directory CD of the exporters issued by the Sri Lanka Export Development Board (EDB) being launched at the Export Bazaar by Economic Development Minister Basil Rajapaksa, Industries and Commerce Minister Rishard Bathiudeen, EDB Chairman and Chief Executive Janaka Ratnayake. SLT Rainbow Pages CEO Malraj Balapitiya and SLT Rainbow Pages Sales and Marketing General Manager Ruwan Wijetunga.

Related Info :

• Sri Lanka Targets $20bn in Exports by 2020

• Export Bazaar Opens in Colombo, Organised by Export Development Board, Sri Lanka

• Doing Business Ranking of Sri Lanka to Improve with EDB Export Procedures

Export Bazaar Opens in Colombo, Organised by Export Development Board, Sri Lanka

08th April 2011, www.dailynews.lk

The Export Development Board expects over 40,000 visitors at the Expo Bazaar which will be opened in Green Path Road, Colombo today.

This is the first time that Sri Lankan people are going to witness world class export items in one place. EDB Chairman Janaka Ratnayake said there will be over 100 diplomats at the inauguration who will take the message to their countries about Sri Lankan products and this will in turn facilitate in achieving he US $ 10 billion export target this year.

The exhibition will be held till April 10.

Related Info :

• Sri Lanka Targets $20bn in Exports by 2020

Sri Lanka Handloom Textiles to Earn $2.24mn by 2015

04th October 2010, www.dailynews.lk

The handloom textile industry will aim to record US $ 2.24 million in export revenue by 2015.

Export Development Board (EDB) Chairman and Chief Executive Janaka Ratnayake said Sri Lanka is capable of producing various handloom textile products to foreign markets.

There is an increasing demand for Sri Lankan handloom textile products in foreign countries. Italy, Germany, France, UK, Norway, Netherlands, Maldives and Thailand are the main export markets for Sri Lankan handloom textile products.

Sri Lanka exports curtaining, table linen, bed linen, kitchen linen, upholstery and dress fabric and other products to foreign markets.

The products in demand in the local market are curtaining, table linen, bed linen furnishing, cushion covers, sarongs and sarees. Currently, cotton and silk yarn is imported from India and Korea, monthly. Around 900 private handloom producers inclusive of small, medium and large-scale are operating in the country.

The handloom textile industry is a highly labour intensive, export oriented rural based industry in the country.

However, lack of weavers and the high production cost has hampered the growth of the industry considerably.

There is a slight decrease in the current workforce in the industry as it is labour intensive. There were around 15,000 working in the industry five years back.

Total export value of handloom textile products in Sri Lanka recorded Rs 142.56 million and Rs 161.4 million in 2004 and 2005 respectively.

The country recorded Rs 209.97 million and 234.08 million and Rs 216.22 million as total handloom textile exports earnings in 2006, 2007 and 2008 respectively. In 2009, it was Rs 116.07 million.

Sri Lanka's EDB for more Agressive Entrepot Trade

14th June 2010, www.dailynews.lk, By Harshini Perera

Sri Lanka needs to re-consider the entrepot trade that was not aggressive during the past few years, Export Development Board (EDB) Chairman Janaka Ratnayake said. In the entrepot trade, value is added to an imported product in Sri Lanka which is less than three percent and will be re-exported with a higher value.

The products that can be considered under entrepot trade ranges from chemicals and cigarettes and to numerous products that will increase the country’s foreign exchange, Ratnayake told Daily News Business.

He said a financial arm has to be established similar to that of Ex-Im banks operating in other countries to address the financial needs of the SMEs in the country.

The EDB has recorded an increase of exports by 9.83 for the first quarter of this year as against the respective period of 2008 and 2009.

Among the sectors that have improved, agricultural sector is significant in which tea, rubber and other export crops showing significant highs. The agricultural sector has contributed 23.5 percent of the total exports last year.

The EDB expects to promote products for which Sri Lanka is famous such as organic fruits and vegetables, garments without guilt, high quality products and services.

There is a slight decline in fisheries products, textiles and garments, ceramic and porcelain products.

The turnover of exports for the first quarter this year was US $ 2.3 billion whereas it was US$ 2.08 billion in the respective period last year.

The country’s total exports contribution to the world export is as low as 0.05 which is in value nearly US $ 8 billion. It is similar to the revenue of a multi-national company of fortune 500 companies in the world, he said. He said that the exports turnover of the country was US $ 8.1 and US $ 7.08 billion for 2008 and 2009 respectively. Though there was a decline last year, EDB expects to regain the turnover of 2008 exports which is US $ eight billion this year.

Since Sri Lanka is politically stabilised now, the EDB expects to accelerate promotional activities to exploit international markets.

In the process, Sri Lanka will be promoted as a brand that is famous for specialized products such as Ceylon tea, gem and jewellery.

The EDB has developed a five-year corporate strategic plan in which Sri Lanka can position its products in the high end markets internationally.

Road shows of Sri Lankan products in different continents with the optimum support from the stakeholders including national and international chambers of commerce and foreign missions will be conducted in the future, Ratnayake said.

“We will be popularising Sri Lankan products with media campaigns in foreign magazines and Journals such as BBC, CNN. A wide space will be given to IT BPO service oriented professional services. We have recognised triggers and barriers of each and every product which will be promoted aggressively in the future,” he said. The EDB will support the SMEs sector with subsidies, technology, guidance and advisory services. He also emphasised the need to trickle down the benefits of exports to the SMEs.

“We will be presenting new budget proposals to the authorities to support SMEs as well as overall exports of the country. We as an Apex body, will be conducting the Presidential Exports Awards, the highest recognition for exporters in November this year which was not conducted for the last three years. Sri Lanka Expo Fair will also be held early next year.

Bhs UK Visits Sri Lanka to Explore the Possibility of Expanding Their Sourcing of Garments without Guilt

26th May 2010, www.dailynews.lk

A three member team from Bhs UK visited Sri Lanka from May 22 to 25 to explore the possibility of expanding their sourcing from the country. The members of the team were Divisional Buying Director Cassie Moore, Senior Buyer Julian Miller and Senior Quality Advisor Nick Duke.

Bhs, is a British department store chain with 186 branches located in high street locations primarily selling clothing was first launched in the UK in the early 1900's. It was bought by Sir Phillip Green the owner of the Arcadia Group in the year 2000 for Sterling Pounds 200 million. The Arcadia Group had recorded a sales value of over Sterling Pounds 3,000 million during the last fiscal year.

The EDB organized a meeting between the Bhs team, the Joint Apparel Association Forum (JAAF) and the leading apparel associations at the commencement of the program. This was the first official meeting of Janaka Ratnayake the newly appointed Chairman of the EDB. Welcoming the BHS team Ratnayake thanked them for including Sri Lanka in their South Asian itinerary. He stressed that since this is a vital industry for the economy of Sri Lanka accounting for nearly 44 percent of the export revenue, the Government would extend its fullest support to Bhs to increase their sourcing from Sri Lanka.

Sri Lanka Apparel Exporters Association Chairman and Favourite Group Managing Director Kumar Mirchandani, making a presentation on behalf of the industry to the Bhs team said that Sri Lanka has over the past three decades developed into a sophisticated industry from mere tailors to total solution specialists. The industry reality of no sweatshop conditions, no child labour, maintaining international health and safety standards, governed hours of work, community outreach programs were highlighted by Mirchandan.

Garments without Guilt - making the 'Made in Sri Lanka' label synonymous with ethical and sustainable apparel manufacturing was also explained.

It was mentioned that a Sri Lankan company was the first in the world to receive the Leadership in Energy and Environmental Design (LEED) Platinum award - a benchmark for design, construction and operation of high performance green buildings.

JAAF Secretary General Rohan Masakorale said that Sri Lanka has the fastest shipping connections to U.K, which is 15 days transit at the moment, where weekly services are offered with multiple carriers and the service is direct without any transshipment. No other country in Asia can match this service and it would be an added advantage to the buyers to place orders in Sri Lanka as the speed of the supply chain reliability is going to be critical and lead times and production cycles would play a key role in future decision making process for buyers.

Briefing the gathering, Cassie Moore said that Bhs was part of the Arcadia Group UK which owns and operates nearly 3000 Stores in the UK and worldwide. Their brands are Bhs, Top Shop, Dorthy Perkins, Wallis, Evans, Miss Selfridge, Outfit, Top man and Burtons. She said Bhs buys women's and men's clothing, children's wear, school wear lingerie, nightwear, underwear, house wear and footwear. She further said that Bhs has been buying school wear from Sri Lanka for the last 18 years.

The purpose of this visit was to review the opportunities of developing other products through Sri Lanka. Moore made use of this occasion to extend their thanks to their existing suppliers and to the new vendors scheduled to meet in Sri Lanka.

She also thanked the EDB and the Sri Lanka High Commission in the UK for having assisted them greatly in recognizing the opportunities for manufacturing development in Sri Lanka.

The Bhs team visited around 10 factories during their three day tour in Sri Lanka including small, medium and large scale units meeting their basic criterion of being Supplier Ethical Data Exchange (SEDEX) certified.

Doing Business Ranking of Sri Lanka to Improve with EDB Export Procedures

25th May 2010, www.dailynews.lk, By Ramani Kangaraarachchi, Picture by Saliya Rupasinghe

The Export Development Board will streamline export procedure in three stages to improve the Doing Business Ranking of Sri Lanka.

Export Development Board Finance Director M.D.K. Mendis speaking at the “Improving Doing Business Ranking of Sri Lanka” seminar at the Central Bank on Saturday said this will be done initially with tea and apparel sectors.

Phase two will develop the simplified documents sharing common data base to minimize processing time. Finally the Export Data Input (EDI) system will be developed.

The process will be simplified by providing common data sharing and, modern e-technology facilities, expanding services of agencies of One Stop Shop OSS and other service providing agencies and developing IT facilities with the support of ICTA.

Mendis said investors have to go to ten places wasting time to get things done at present as service providers are scattered causing inconvenience, undue delays, high volume of documents, low productivity and high transaction cost.

The objective of OSS is to speed up document processing, minimize inconvenience, improve productivity, avoid undue delays leading to enhance competitiveness of Sri Lankan exports.

The OSS facilitates exporters to submit documents to a single entry point and to fulfill all export related regulatory requirements under one roof.

Inadequate diversification is another reason for the low business ranking and the EDB will diversify its product range through value addition via branding in order to make Sri Lanka exports a US$ 20 bn industry by 2020.

Ease of Doing Business Ranking : Provides objective measures of business regulations and their enforcement across 183 economies and selected cities at the subnational and regional level.

Sri Lankan Business Delegation in Jeddah, Headed by Sri Lanka Export Development Board

28th October 2009, firstlanka.com

A twenty eight member Sri Lankan business delegation headed by the Sri Lankan Export Development Board has embarked on a visit to Jeddah on 24.10.2009, organized by the Consulate General of Sri Lanka in Jeddah.

The business delegation from various sectors will explore the market potentials for further enhancing the export of Sri Lankan products in the Kingdom of Saudi Arabia.

The group will visit the Jeddah Chamber of Commerce and Industry and arrangements have been made to meet Jeddah based reputed Business community at Chamber of Commerce premises.

They will also visit leading Supermarket chains such as Bin Dawood and Hyper Panda in addition to other reputed companies in Jeddah in order to establish business relationships.

The Consulate General has made arrangements for the delegation to meet Jeddah based Sri Lankans from commercial organizations at the Consulate and to hold discussions with a view to obtain their assistance in trade related matters.

This is the first time a Sri Lankan business delegation comprising of such a large number of participants is visiting Jeddah. It is expected that the visit will help to increase trade opportunities for Sri Lankan products in Saudi Arabia.

It is noteworthy to mention that the visit has been organized by Consulate General based on the directives given by Hon. Rohitha Bogollagama, Minister of Foreign Affairs at the Conference for Heads of Missions of Middle Eastern countries which was held in Dubai last year.