Sri Lanka Czech Economic Forum for Enhanced Trade & Economic Cooperation. Minister Basil Rajapaksa & Czech Industry & Trade Minister Martin Kuba Address the First Forum

03rd April 2013, www.dailynews.lk,

A Sri Lankan delegation led by Economic Development Minister Basil Rajapaksa met Czech Industry and Trade Minister Martin Kuba, during the former’s visit last week to the Czech Republic. Environment and Renewable Energy Minister Susil Premajayantha was also included in the delegation.

The delegation attended the opening of the first Sri Lanka-Czech Economic Forum organized by the Confederation of Industry of the Czech Republic. They also met Czech Prime Minister Petr Necas at his office.

Minister Basil Rajapaksa and Minister Martin Kuba addressed the Economic Forum and discussed prospects for enhanced trade and economic cooperation as well as opportunities for joint collaboration in important sectors of the two countries. The vast potential that exists for investment in Sri Lanka for the Czech Republic in areas such as infrastructure, energy, water and environment protection, food processing, sugar industry, leisure, recreation and hospitality, higher education, as well as in the sector of small and medium enterprises was highlighted at the discussion.

Minister Rajapaksa observed the increased potential for Czech tourists to visit Sri Lanka following the expansion of the island’s tourism sector. Both ministers expressed their intention to conclude an agreement on mutual cooperation between their ministries for creating favourable conditions to develop trade and economic cooperation in areas of mutual interest.

The Czech representation handed over a draft of an agreement to the Sri Lankan delegation in this regard.

The Sri Lankan delegation also met Czech Republic’s Environment Minister Tomas Chalupa. They discussed issues relating to the promotion of sustainable energy and protection of the environment and means of cooperating in this area of global concern in international fora.

The two delegations discussed the possibilities of strengthening cooperation in the areas of renewable energy and waste management. Minister Premajayantha visited a waste recycling plant in Prague.

Minister Rajapaksa also met Czech Republic’s Foreign Affairs Deputy Minister Tomas Dub and discussed ways for enhancing bilateral cooperation in the areas of trade, investment and tourism.

Minister Rajapaksa met Czech Republic Vice President Jan Hamacek and Senate President Milan Stech at Czech Parliament. Their discussion centered on enhancing contacts between the legislative bodies of the two countries. They also emphasized the need to increase people to people contact, among other matters of bilateral importance.

Image: Economic Development Minister Basil Rajapaksa addressing the first Sri Lanka-Czech Economic Forum. Environment and Renewable Energy Minister Susil Premajayantha and Czech Industry and Trade Minister Martin Kuba are also in the picture.

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Sri Lanka Ireland Bilateral Trade Up. Sri Lanka Chambers Should Tie Up with Irish Counterparts to Enhance Cooperation

03rd April 2013, www.dailynews.lk, By Shirajiv Sirimane

The Sri Lanka - Ireland bilateral trade volume has demonstrated an upward trend in recent years. “Sri Lanka's major exports to Ireland include garments, retreaded tyres, tea, coconut and leather products. Major imports from Ireland include chemical and plastic products, machinery and pharmaceutical products.

The Sri Lanka Chambers should forge links with their Irish counterparts in a bid to enhance cooperation between the business communities of the two countries,” Consumer Affairs Senior Minister S B Nawinna said.

Speaking at the National Day reception hosted by the Consulate of Ireland, he added that with the dawn of peace in Sri Lanka, tourist arrivals from Ireland have increased in the recent past.

“There is considerable potential to promote tourism between the two countries. ‘It is important that tour operators in Ireland explore Sri Lanka as a tourist destination having a diverse range of attractions to offer.”

“Ireland's contribution towards the advancement of education in Sri Lanka, remains a strong link between the two countries.”

“With the end of the protracted terrorist conflict and restoration of normalcy in Sri Lanka, I believe it is opportune to explore new avenues for the further expansion of our relations in investment, trade, political and education spheres.

“In the post conflict environment, Sri Lanka had already initiated a number of projects related to infrastructure development in the areas of transport, telecommunication, health and tourism.

“There is enormous potential for investments from Ireland and I encourage Irish investors to make use of this positive business environment. “I'm pleased to note that Sri Lankan businessmen and professionals have started businesses in Ireland, particularly in the hotel and education sectors.

“I also acknowledge the contribution being made by Ambassador Feilim McLaughlin, and also Manic Perera, Honorary Consul of Ireland, towards the strengthening of ties of friendship and economic cooperation between Sri Lanka and Ireland.

Feilim McLaughlin Ambassador of Ireland, said that he had up-dated the Irish business community on the opportunities available for investments in Sri Lanka. “We expect even better economic relations in the future,” he concluded.

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Pakistan's Arif Habib Group Goes for Commodities and Trade Consultancy in Sri Lanka. A Boost to Bi-lateral Trade

28th March 2013, www.lankabusinessonline.com

Pakistan's Arif Habib group which has a stock brokering unit in Sri Lanka is planning to expand into commodities and trade consultancy which can boost bi-lateral trade, an official said.

In Pakistan he said there was a strong push from authorities for Pakistani businesses to go to Sri Lanka.

"As one of the largest Pakistani groups there are a lot of opportunities," Beg said. "Pakistan and Sri Lanka have had very strong ties.

"The political relationships are very strong, the bureaucratic relationships are very strong. And in every way possible both countries have supported themselves.

"So why can't there be a strong commitment on trade as well."

Beg, who is the son of a group director took over the reins at Serendib Stockbrokers last year and says Arif Habib group is also putting money into stockbrokering, which was the first business, the group when it started.

He says fresh capital has been injected, the balance sheet has been cleaned and the group will continue to put resources to build the business, including with expanding research capacity which will allow Sri Lankan stocks to be marketed through the group's sales desks.

The group has put an application to start a physical wholesale commodity business and bring in one million US dollars.

"We have written to the Central Bank to bring in money to start a wholesale commodity business," Naushervan Beg, who heads Serendib Stockbrokers, a unit of Arif Habib group said.

"We have dedicated commodity specialists in Pakistan who would handle that."

Arif Habib group which started as a stock brokering firm in 1994 in Pakistan has later expanded into asset management, corporate finance and has acquired interests in cement and fertilizer plants and real estate and grown into a 600 million US dollar business.

The idea was still in the preliminary stages, and the commodity business if permission is given, would involve physical storage and trading, will be a separate business, if authorities give permission, he said.

A related group company, Thatta Cement is planning a cement bagging plant in the Hambantota port.

Beg says Sri Lankan exporters have lost some of the markets in they previously had in Pakistan and opportunities existed provided they had the right parties to deal with.

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Yunnan Vice Governor Leads China Trade Mission to Sri Lanka. Bilateral Trade was USD 2.7 Bn in 2012

27th March 2013, www.lankabusinessonline.com

A Chinese delegation led by Yunan province vice governor Ding Shaoxiang is arriving in Colombo today, which will help expand bilateral trade of 2.7 billion US dollars reached last year, the commerce ministry said.

"This visit is a strong boost to the growing Lanka-China bilateral trade," commerce and industry minister Rishad Bathiudeen said in a statement.

Bilateral trade with China rose 19.5 percent to reach 2.676 billion US dollars in 2012. Sri Lanka's exports to China was 108.12 million US dollars.

The six member delegation from Yunan will meet key officials, the ministry said.

India Relaxes Quota on Apparel and Meat Exports from Sri Lanka. Exports Reached USD 720.89 Mn in 2011-2012

27th March 2013, www.lankabusinessonline.com

India has raised a quota of Sri Lanka-made apparel and the validity of a sanitary permit for meat had been doubled giving more freedom for Indian nationals to buy goods from the island.
Free Trade Agreements were then used to progressively give freedom to the poorer people to trade.

Quotas and rules of origins were used as a compromise to give more time for powerful production lobbies to continue to make excessive some profits at the expense of the domestic consumer, allowing authorities to give some liberty to domestic consumers.

Cheaper imports leave more money in the hands of consumers, raising their living standards by expanding the ability to buy other goods and especially services, which can boost domestic output and employment.

The Indian High Commission said the apparel quota relaxation came following request made to visiting Indian commerce and industry minister in August 2012.

In January, at the 8th India-Sri Lanka joint commission meeting it was agreed to double bi-lateral trade to 10 billion US dollars in the next three years.

India said Sri Lankan exports had reached 720.89 million US dollars in 2011-2012 and from April 2012 to December 2012 Sri Lankan exports to India was 528.76 million US dollars.

Sri Lanka last year raised taxes particularly on smaller vehicles, which are bought by less-affluent consumers, which come primarily from India.

The Indian High Commission (embassy) in Colombo said, there would be no sourcing requirement for fabric for up to eight million pieces of fabric exported from Sri Lanka each year from the current five under the Indo Lanka Free Trade Agreement.

The validity of a sanitary import permit (SIP) for processed livestock products had been extended to one year from the current six months.

The high commission said on September 06, 2012, export tax for Sri Lankan made fabric was cut to 5.0 percent from 11.0 percent under the South Asia Free Trade Arrangement.

Citizens of India and Sri Lanka traded freely in ancient times and Sri Lanka was part of a 'Silk Route of the Sea' that was at time controlled by India based empires and later by European powers.

After independence from British rule and the rise of economic nationalism rulers of both countries raised trade barriers and reduced the ability of their citizens to trade freely and the entire South Asian region lagged behind the rest of the world except Africa.

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Sri Lanka Bangladesh Trade to Increase with the Joint Commission on Economic and Technical Co-operation

11th March 2012, www.sundayobserver.lk

The latest round of Sri Lanka-Bangladesh Joint Commission on Economic and Technical Co-operation (JTandEC) were concluded in Dhaka, Bangladesh. “Both countries agreed to hold JEC sessions once every two years in future” Minister Bathiudeen said.

“The next Sri Lanka –Bangladesh JEC will be held in Colombo in 2014” “We also discussed ways to boost bilateral trade volumes further.

Our trade has increased by 150 percent from 2001. However, it still has huge potential to grow”,said the Minister.

Sri Lanka’s exports to Bangladesh has increased by 150 percent from 2006-2011 but Sri Lanka believes that there’s untapped potential in bilateral trade. Under the Sri Lanka – Bangladesh Joint Committee for Economic and Technical Cooperation, the two countries have already agreed to boost cooperation in small and cottage industries, air services, tourism, shipping, and cultural aspects.

The Sri Lanka-Bangladesh Joint Commission (JEC) is the most appropriate mechanism to implement the 2011 MoUs between Sri Lanka and Bangladesh.Among the cooperation avenues is the air-services, Mihin Lanka operates air services from Colombo to Dhaka but the Department of Commerce under the Ministry of Industry and Commerce believes that it would be appropriate if the existing Air Services Agreement is revisited to make it more responsive to current needs, including the facilitation of transport of air cargo.

“Last year President Mahinda Rajapaksa, and Prime Minister of Bangladesh Sheikh Hasina, agreed that the JEandTC should be revived” said, Industry and Commerce Minister, Rishad Bathiudeen. The fourth session was concluded while the previous JEC, the third session, was held in 1993.

During the visit of President Mahinda Rajapaksa, to Dhaka in April 2011, both countries recognised that the Bangladesh Sri-Lanka Joint Economic Commission as an effective mechanism to further enhance bilateral cooperation between the two countries and agreed that the fourth session of the Joint Economic Commission should be held ‘as soon as possible.’ Both sides agreed that bilateral trade between Bangladesh and Sri Lanka, though showing positive trends, was far below potential and did not reflect the cordial political relations. It was agreed that the two countries would undertake measures for trade facilitation including identification and removal of non-tariff barriers and simplification and harmonisation of mutually recognised standards.

Sri Lanka's Serendib Horticulture Expands Overseas. Ornamental Plant Exports to California & Florida to Begin

08nd February 2012, www.dailynews.lk, By Indunil Hewage

Serendib Horticulture Technologies (Pvt) Ltd as a part of its aggressive global expansion initiative, has recently tied up with several California and Florida based horticulture companies to export ornamental plants produced through tissue culture technology.

Speaking to Daily News Business Serendib Horticulture Technologies Chairman and CEO Dilip de Silva said the company came to an agreement with seven companies in USA and intends to generate US $ 100,000 revenue this year through this partnership. Serendib also intends to export approximately half a million ornamental plants to the USA market per annum.

Touching on future expansion plans in Sri Lanka, Silva noted that, Serendib is planning to work with the Indigenous Medicine Ministry to supply medicinal plants produced through tissue culture technology. In addition, the company is looking at expanding the capacities of their tissue culture laboratories and also establishing a good extension service in coming years. The investment will increase the company's exports and provide services to the local farmers.

"We have expanded to the Middle East, where we have started a project in Qatar with the Environment Ministry. We are the consultants to the Ministry at the Biotechnology Centre in Doha. We are training their staff in commercial tissue culture and also developing protocols for plant varieties that are required by the State of Qatar. Besides this, we have established our presence in Africa - Rwanda, where we are working with an American company, FAIM (Africa), to supply fruit planting material and to establish a tissue culture lab to produce their plant requirements," Silva said.

Image Courtesy: www.dailynews.lk

Sri Lanka Batiks to be a $1bn Industry in Two Years Having Made a Strong Comeback

08th February 2012, www.dailynews.lk, By Shirajiv Sirimane

The Sri Lankan batik industry is making a strong comeback and is poised to be a US $ one billion export earning industry in two years. One of the pioneering legends in the industry, Eric Suriyasena said that the main reason for business to rebound is the growth in tourism. “With tourism picking up there is a tendency in sales picking up locally as well,” he added. He said that currently the trade’s earnings are around US $ 300 million and the main sales are overseas.

Suriyasena, Chairman of Eric Suriyasena Batiks (Pvt.) Ltd, said that another positive trend is that Batik is once again in fashion and even the younger generation is keen on it. Even in local and international beauty pageants batiks have got its due recognism once again.

In addition, unlike two decades ago, today there are many new designers and this too helps the industry to grow. The industry which was formerly confined to a few items today has a wide range which includes household items and bed linen as well giving more choice for the customer.

Suriyasena said that finding quality fabric which was a problem too is now being solved with a company based in Ratmalana manufacturing quality fabrics for the local market.

He said that one of the biggest problems they faced is the low quality imported finished batik products from neighbouring countries. “Due to this some Sri Lankans also tend to manufacture low quality products which is a major threat to the industry. What the government should do is to increase the duty on imported batiks which would safeguard the local industry,” he added.

A leading exporter of batik art and batik garments, Suriyasena has showcased his artwork in such countries as Sweden, Norway, Australia, USA, Austria, Germany, Canada, Italy, and the United Kingdom. “I am hoping to have another international show in Sweden this year,” he said.

Eric Suriyasena Batiks has also invested over Rs. 30 million to open their modern flagship art gallery Marawila that will be opened on Friday. “This is bound to be a major tourist attraction as there would be live demonstrations as to how batiks are being created,” he added.

Suriyasena who is also the Chairman of three star plus Goldi Sands Negombo said that over 350 are employed with Suriyasena Batiks.

A unique aspect of Eric Suriyasena’s work is the full spectrum of colours used in his artwork. All the final pieces have been boiled out at least minimum four times and usually many more times. Each time the wax is boiled out, he introduces a new primary colour and with overlaying of colours is able to achieve the entire colour spectrum in each piece.

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Indo Lanka Trade Up by 72pct. Free Trade Agreement (FTA) Covers only 30pct of the Trade

10th January 2012, www.dailymirror.lk, By Kelum Bandara

The volume of bilateral trade between Sri Lanka and India during the first eleven months of last year had reached US$4.46 billion, an increase of 71.94 per cent when compared with the corresponding period of the previous year, an official said yesterday quoting Sri Lanka Customs data.

But of this India’s exports to Sri Lanka amounted to US$3.97 billion. During this period, Sri Lanka’s exports had grown by 15 per cent while India’s exports had grown by 85 per cent.

He said 70 per cent of trade between the two countries took place outside the Free Trade Agreement (FTA).

“This means that this percentage takes place outside the duty-free tariff regime. Sri Lanka imports numerous items from India because it is competitive,” the official said.

Meanwhile, Commerce and Industries Minister Rishad Bathiudeen will attend the Partnership Summit in Hyderabad from January 11 to 13. On the sidelines of the summit, the minister is expected to interact with his Indian counterpart and hold bilateral talks trade between the two countries.

Indo-Lanka talks continue to be held from time to time on the Comprehensive Economic Partnership Agreement (CEPA) which is still to be signed.


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Sri Lanka to Develop Trade Ties with Mexico with a View to to reach North American Markets. Mexican Envoy Predicts More Indian Investment here

26th April 2011, www.island.lk

Sri Lanka is keen to expand trade ties with Mexico and eventually gain greater access to markets in the US and Canada. A visiting Mexican diplomat says he was keen to promote Mexican and Indian investments in to Sri Lanka. Business partnerships between Mexican and Sri Lankan companies will help accessing the difficult North American markets.

Identifying focal points of representation for trade in Mexico, and in Sri Lanka, will be a step in this direction, said Rishad Bathiudeen, Minister of Industry and Commerce.

The minister made these comments he met Jaime Nualart, Mexican Ambassador to India, Bangladesh, the Maldives and Sri Lanka at the ministry premises in Colombo 3. Nualart is leading a Mexican business delegation to Colombo. This is the first ever official Mexican business delegation to visit Sri Lanka.

"The bilateral trade between Sri Lanka and Mexico stand at US $ 63 million. But what is important is that this is still a small volume and there is much potential between the two countries to enhance it further," Bathiudeen said.

Mexico was ranked Sri Lanka’s 26th largest export destination in 2010. Sri Lanka’s exports to Mexico have increased gradually since 2002, from US$ 38.26 million to US$ 60.99 million in 2010. Sri Lanka’s exports to Mexico are currently dominated by cinnamon, taking 60% of the total volume.

"To enhance the regularity of our bilateral cooperation and strengthen it further, frequent visits by business delegations to each other countries are crucial. Also, participation in trade fairs will strengthen trade cooperation further. To achieve our bilateral trade targets, we need to pursue a strategic trade vision, especially to harness synergies of Mexican and Sri Lankan entrepreneurs through mutually beneficial partnerships to exploit promising market opportunities in the US and Canada, opened by the North American Free Trade Agreement (NAFTA)," the minister said.

Bathiudeen informed the Mexican delegation that apparel, construction, pharmaceuticals, high-end shopping malls and multiplex cinemas are promising areas for investments in Sri Lanka.

Mexican Ambassador Nualart said that he would also invite Mexican businesspersons in India to invest in Sri Lanka. He expressed strong interest in investing here in food processing, multiplex cinemas and construction, specially shopping complexes.

"We want to share information and latest data with Sri Lanka", Nualart said.

Aldo Ruiz (Investment and trade Commissioner, Mexican Ministry of Economy), said: "Bringing Mexican food processing technology here will enormously assist Sri Lanka’s agro base (to access international markets)". Speaking of Mexican investments in India, Nualart said that housing, industrial electrical transformers, water pumps, catalytic converters and food products are key Mexican manufacturing investments in India.

Bandula Somasiri, Acting Director General of Department of Commerce, addressing the delegation briefed the delegation on Sri Lanka’s liberal trade regime and its opportunities for Mexico. "Sri Lanka wants to diversify its exports basket to Mexico," he said.

"The bilateral trade between the two countries stand at US $ 63. Our exports to Mexico amount to US$ 61 million while imports amount to US$ 2 million. What is important is that I strongly believe that our bilateral trade volume is still a small volume and there is much potential between the two countries to enhance it further," Bathiudeen said.

"What is exciting is that new products such as apparels, rubber and coconut-based products, are added to our export basket. Some other potential products for export expansion are tea in value added form, processed vegetables and fruits, prefabricated building materials, tents, sails, activated carbon, gem and jewellery, leather products and ceramic and porcelain," the minister said.

Sri Lanka Not Claiming Full Duty Free Access to US Under Its Generalized System of Preferences (GSP) Programme

23rd October 2009, www.lankabusinessonline.com

Sri Lankan exporters are not making enough use of duty free access to the United States under its Generalized System of Preferences (GSP) programme, officials said.

"It is necessary to educate our exporters about the duty free access to the US," said Gomi Senadheera, Sri Lanka's Director-General of Commerce. "There is much potential."

He said if exports eligible for duty free access makes use of the access the "opportunities for market expansion are very high."

There are a large number of products covered by GSP which are not exported to the US, he said.

Total two-way trade between Sri Lanka and the United States totalled 2.3 billion dollars in 2008, with US imports of two billion dollars and US exports of 283 million dollars.

The main US exports to Sri Lanka were aircraft, cereals, industrial machinery, electrical machinery and plastics.

US imports from Sri Lanka are mainly apparel, rubber, precious stones and industrial machinery.

Officials said that in 2008, US imports from Sir Lanka qualifying for GSP preferences were valued at 153 million dollars.

The US is the largest single market for Sri Lankan exports as much as 80 percent of which consists of apparel and textile products.

But a conference on US trade and investments in the island was told recently that according to trade statistics nearly 17 million dollars worth of GSP eligible goods from Sri Lanka had entered the US market in 2007 without claiming duty free benefits.

In 2008, the value of such Sri Lankan exports had risen to 18.7 million dollars.

This was because of lack of awareness among importers and exporters of the zero duty concessions offered under the US GSP programme and insufficient documentation, trade officials said.

The total value of US imports from Sri Lanka under the GSP programme was 172.05 million dollars in 2008 accounting for 9.1 percent of total US imports from the island.

The value of such imports in the first seven months of 2009 was 68.5 million dollars.