Footwear Industry Gets a Boost from IDB Sri Lanka. Footwear Industry Identified as a Thrust Industry

03rd April 2013, www.dailynews.lk, By Ishara Mudugamuwa

The Industrial Development Board (IDB) of Sri Lanka has taken measures to develop the country's Leather and Footwear Industry to cut down on leather and footwear imports, IDB Chairman Udaya Kariyawasam said.

Addressing the media yesterday at the Information Department, the chairman said the government has identified the leather and footwear industry as a thrust industry. So it is important to increase the leather and footwear production and at the same time it is important to promote leather products among Sri Lankans. The IBD has recognized some important areas which should be developed to compete with the international market.

"At present the industry produces 75 percent of all shoes sold in the island. About 95 percent of the local shoes are made from non-leather (synthetic) materials or rubber. The remaining 25 percent of shoes sold in Sri Lanka are imported. This amounts to circa 10 million pairs per year. These are also made from non-leather (synthetic) materials. It is reasonable to assume the local companies will continue to try to seize some of that market, which offers low priced footwear at very competitive rates. These shoes are made from synthetic materials (non-leather) and therefore they offer no benefit for the prosperity of the leather manufacturing industry," Kariyawasam said.

He also said that the industry suffers from five major problems, which limit its ability to compete. Poor and insufficient leather, poor supply base for most material and components which are unsuitable for exported products, inadequate provision of training for operator and technical skills, poor mechanization and practices in production, no marketing strategy or brand identity for the industry.

"If the industry can open the export markets for leather footwear, it will target the overarching objective of this project which is to increase export earning and therefore will be more beneficial to the expansion of the industry, its employment levels and the country' s trade balance," he said.

IDB Director A. G. Karunadasa said leather products are environment-friendly and also using leather shoes is good for the health and has other advantages. He also said the IDB has already discussed with the University of Moratuwa and Colombo University Faculty of Fine Arts to develop the country's leather industry using modern technology and designs. The lack of skilled labour is a major problem in the leather industry. Therefore the IDB in association with the Tertiary and Vocational Education Commission has already introduced NVQ for those engaged in the industry.

Related Info :

• Sri Lanka's Footwear & Leather Fair 2012 in Colombo from February 10 to 12. 25 Indian Firms to Participate

• Sri Lanka Footwear & Leather Industry Show Remarkable Growth. Trade Show from 5 to 7 November 2010

Land Rover Defender Assembly Plant in Hambantota. Sathosa Motors to Invest $ 1mn

02nd April 2013, www.dailynews.lk

Sathosa Motors PLC will invest US $ 1 million to set up an assembly plant for Land Rover Defenders in Hambantota District.

“Preliminary work of the project has already been completed and the project is expected to commence shortly. The proposed project would make Land Rover vehicles available and affordable to a wider spectrum of the market,” Access Engineering and SML Frontier Automotive ( Pvt) Ltd Chairman Sumal Perera said.

He expressed these views at the launch of SML Frontier Automotive (Pvt) Ltd, which will be the exclusive distributor and after sales provider for Land Rover in Sri Lanka. SML Frontier Automotive (Pvt) Ltd is jointly owned by Sathosa Motors and Sheran Fernando.

This would be a 50-50% partnership between both parties.

Speaking about the new partnership Sumal Perera, Chairman SML Frontier Automotive said “We are very excited with the new partnership and this will be the first stepping stone to further expand our foot print in the motor vehicle market.

Access engineering Limited, a public quoted company now owns over 86% of Sathosa motors.

We are very much committed to keep the Land Rover name in its deserved status whilst upholding the good name that Land Rover have established in the world.

“The final beneficiary of this venture will be the Land Rover owners and enthusiasts; Today, we made a great emphasis on ‘after sales service’ through this joint partnership,” SML Frontier Automotive, Managing Director Sheran Fernando said.

After sales service is considered the corner stone of strengthening the Land Rover/ Range Rover brand in Sri Lanka and the construction of a new state-of-the-art workshop in Vauxhall Street will be the epicenter of Land Rover’s after sales service and will commence operations shortly.

It is planned to invest US $ 500 million at the initial stage of the project.

Image: SML Frontier Automotive ( Pvt) Ltd Chairman Sumal Perera and Managing Director Sheran Fernando at the launch of SML Frontier Automotive ( Pvt) Ltd. Picture by: Sumanachandra Ariyawansa.

Vizag Steel of India Seeks a Sri Lanka Partner for Manufaturing Tie-Up

28th March 2013, www.thehindu.com

 Rashtriya Ispat Nigam Ltd (RINL), the corporate entity of Vizag Steel, is looking for a Sri Lankan company to enter into a tie-up for manufacturing steel products there, a senior official of the state-owned steel maker has said.

RINL Director (Commercial) T.K. Chand said the company has already called for expression of interest from Sri Lankan steel rod and bar manufacturers for the tie-up and the process of selection of the partner may come to a final stage by May.

“We have already floated EOI (Expression of Interest) in this regard and received offers from companies who have manufacturing facility in that country. By May, we expect that the process may reach final stages,” Mr. Chand said.

According to him, the steel maker, on its part, will supply billets for conversion into CTD/TMT rebars and structurals on wet-leasing basis in Sri Lanka.

“We will not make any investments into the plant. We are looking for a party with minimum three years experience in conversion of billets into CTD/TMT rebars and structurals and having valid licence for production. The entire capacity of SPU/RM shall be dedicated to RINL,” Mr. Chand added.

Another senior official said the RINL is looking at a plant with 1.5 lakh tonne per annum capacity plant in the south Asian country.

The official said they would look at a new manufacturing either in Hambantota or Trincomalee areas of the island nation so that they can use the harbour network for export purpose to countries which include the Maldives and the Myanmar.

“A study revealed that there is good potential for RINL products in Sri Lanka. And also export of billets is easier to Sri Lanka from Chennai port,” the official said when asked why the company is zeroed in on Sri Lanka.

Mr. Chand said the Navratna Company is also planning to open a regional office at the World Trade Centre in Sri Lanka.

Replying to query, he said currently RINL exports around 3 per cent of its production and has plans to increase it by 10 per cent in the coming two to three years.

The steel maker currently exports finished products to countries such as the US, UAE, Thailand, Bangladesh and Sri Lanka.

RINL is currently working on expansion, after which the steel making capacity will increase to 6.3 million tonnes per annum (MTPA), from the existing 3 MTPA.

Sri Lanka's Raigam Starts Pure Salt Plant in Puttalam

04th March 2012, sundaytimes.lk, By Duruthu Edirimuni Chandrasekera

Raigam Wayamba Salterns, a subsidiary of the Raigam Group, began commercial production of its Pure Vacuum Dried (PVD) salt plant in Palavi in Puttalam recently where it would be producing 100 % impurities-free salt, Raigam Chairman Dr. Ravi Liyanage said.

"We already had orders placed even before starting production and these are adequate enough to run the plant with significant gains," Dr. Liyanage told the Business Times. He explained that this PVD process has an embedded vacuum evaporation technology which ensure that salt is 100 % free from any impurities and quality is consistent despite any condition of input raw salt. The input salt is fed in a form of a dissolved slug which is put to different high – tech processes like milling, centrifuging, evaporating, drying, etc under extreme temperature conditions to bring out a final output of ‘pure’ salt, Dr Liyanage explained further.

Demand for Pure Salt
Featured quality consistency and characteristics of PVD salt which differentiates it from any other salt has a significant demand not only in Sri Lanka but in world context as well. Dr Liyanage pointed out that the country's industrial requirement of pure salt is about 100 Metric Tonnes (MT) a month. "At present all of this is mainly imported from Thailand. This salt is used in the food and beverage industry as well as the leisure (hotels) industry," he said.

He added that this state of art modern plant has a production capacity of 0.5 MT per hour and also has the capacity for continuous for all 365 days of the year. The company has invested more than Rs. 50 million for the plant so far, which has generated 30 new employment opportunities. Dr Liyanage said that Raigam intends to offer the product to the export market provided the local demand is first fulfilled.

Raigam group has three companies for salt business - Raigam Wayamba Salterns PLC (at Palavi in Puttalam), Southern Salt Company (Pvt) Ltd (at Bata-atha in Tangalle), and Raigam Eastern Salt Company (Pvt) Ltd (at Kuchchaveli in Trincomalee). Additionally, Raigam is the main private party shareholder of Puttalam Salt Ltd and Raigam Wayamba Salterns PLC.

Reduced Demand
Dr Liyanage noted that now the country’s imported salt requirement has reduced to 20,000 Metric Tonnes (MT) per annum from the earlier 45,000 MT owing to the local salt production drive by firms such as Raigam and that imports could be brought down to 10,000 MT this year.

“During the past two years, the total imports have reduced to 20,000 MT from the more than 45,000 MT which was one third of the national requirement in 2007,” he said. Dr. Liyanage said the salt industry has significant potential to develop as the country is surrounded by the sea and the tropical weather is conducive to the production of salt. "But this year the weather was not all that good for salt harvesting,” he added, explaining that salt production is sensitive towards the weather conditions and that any unfavourable weather conditions will affect the production of the company in inverse manner.

Raigam’s Future Moves
He said that Raigam will be moving into eco tourism at their saltern operations, which will be a new experience to both local and foreign tourists. Dr. Liyanage added that for Raigam's eco-tourism project, the planned capital investment

is Rs. 200 million. “This will be branded as the ‘Salt Experience’ and this is the world’s second resort hotel chain which will be adjoining a saltern,” he said. The first chain is in Thailand. “The envisaged tourist operation does not have any disturbance to the salt operation and it is a value addition to the saltern,” Dr. Liyanage said, adding that the company is currently in the process of obtaining relevant approvals from affiliated authorities.

For developing salterns and setting up new factories, the company has planned an investment of Rs. 300 million.

Related Info :

• Sri Lanka's Raigam to Invest in Salterns and Chemical Plants

• Sri Lanka's Raigam Promotes Tourism in the Saltern in Kuchchaveli

Laugfs & Sri Lanka Institute of Nanotechnology to Process Mineral Sands for Value Addition

02nd March 2012, www.dailynews.lk,

Laugfs Holdings Limited entered into a strategic agreement with Sri Lanka Institute of Nanotechnology (SLINTEC) to process natural mineral sands for value addition.

The landmark agreement was signed yesterday creating a PPP venture to set up country’s first ever plant to produce titanium dioxide from mineral sand.

The agreement will be an initiative to bring in more foreign exchange in to the country where at present mineral sand is exported in raw form in bulk. The country imports processed sand paying 10 to 15 percent more in value thus making the industry a negative contributor to the economy. Our efforts will reverse this trend, Laugfs Holdings Chairman W.K.H. Wegapitiya said.

“Sri Lankan entrepreneurs and companies should be encouraged to venture into similar businesses leading to value addition. Although, we believe that FDI is key for economic development, it has not made significant impact on the economy. Therefore entrepreneurs with new thinking to take maximum advantage of our natural resources to engage in scientific research are the need of the hour,” he said. The country is rich with key ingredients of natural resources as factors of production, location specific advantages and entrepreneurship which according to Michael Porter are the pre-requisites of economic development.

We are rich with all three factors and also possess knowledge but not have reached the developed nation status. This is a concern and need corrective action. “We are a truly Sri Lankan company and this venture is going beyond commercial consideration to give back to society.


We are creating synergy with the agreement which could lead to new knowledge and confident that the country will benefit in the long run,” Wegapitiya said.

A fully fledged manufacturing plant will be set up shortly to produce different value added chemical from mineral sand.

Sri Lanka is estimated to have 18 million metric tons of ilmenite reserves, the world’s ninth largest deposit.

The country’s North and the East beach sands contained about 70 to 72 percent ilmenite and it is estimated to have 6 to 8 million metric tons of ilmenite according to the surveys of the Geological Survey and Mines Bureau of Sri Lanka.

Pulmoddai ilmenite is known to contain about 50 to 60 percent of titanium dioxide in its composition.

The SLINTEC has developed a proprietary process to produce TiO2 and nano TiO2 starting with ilmenite obtained from Pulmoddai. Signing of this agreement will initiate the commissioning of a pilot plant and then a large scale commercial plant where the project will be completed in three phases.

Image: Laugfs Holdings Chairman W.K.H. Wegapitiya, Senior Minister Tissa Vitarana and SLINTEC
and other officials at the tie up. Picture by Nissanka Wijeratne

Related Info :

• Sri Lanka Institute of Nanotechnology to be a Research and Innovation platform for Sustainable Nanotechnology in Asia

• Sri Lanka to Manufacture Nano Titanium Dioxide from Pulmoddai Mineral Sands

US Lifting Ban on Sri Lankan Coir Exports a Boost to Geo Textile Industry of World’s Largest Exporter of Coir Fibre

24th February 2012, www.island.lk

In a new boost to Sri Lanka’s geo-textile industry and Sri Lanka’s standing as the world’s largest exporter of coir fibre, a top US government agency has cleared the way for Sri Lankan made geo-textiles for two projects, the Ministry of Industry and Commerce announced yesterday.

The US Environmental Protection Agency (EPA) has waived its restrictions on use of foreign coir mats in US for Sri Lankan mats. The general restrictions for foreign coir mats have been imposed under the ‘Buy American requirements’ but US has specifically allowed Sri Lankan mats for two selected projects.

The US EPA has allowed Sri Lankan and Indian made coir mats to be used in two riverbank restoration projects in Ohio.

The project specific waivers are extended to the Bear Creek Restoration Project in Warrensville Heights, Ohio, and the Laurel Creek Restoration Project in Twinsburg, Ohio.

"This is a project-specific waiver and only applies to the use of the specified product for the American Recovery and Reinvestment Act (ARRA) funded projects being proposed...The coir woven mats under consideration are manufactured in India and Sri Lanka and meet the projects’ technical specifications and requirements," the US EPA said.

Sri Lanka produces 35percent of the world’s natural coir output. Almost all the coir fibre produced here are natural with no synthetic fibre produced. 90percent of coir exports are in raw form.

The raw coir is exported to UK, France, Germany, India and China.

According to the Export Development Board (EDB) the export revenue from coir based products from January to October 2011 stood at US$ 51 million. Export revenue from raw coir during the same period stood at US$ 39.7 million. Around 200 coir mills are in operation in rural Sri Lanka mostly operating in primitive working conditions with out-dated technology. The industry is also faced with labour migration to other jobs and it has become difficult to get new recruits, the ministry said.

Image: Riverbank erosion close to the road in Bear Creek tributary in Warrensville Heights, Ohio, USA. The US has temporarily lifted a ban Sri Lanka coir exports to facilitate two riverbank restoration projects.

Related Info :

• Sri Lanka Coir Fibre Exports Increased Sharply in 2009 due to Demand from China

Sri Lanka's First Trilingual Guide for SMEs Launched by the National Enterprise Development Authority

19th February 2012, www.nation.lk

In an effort to support the Small and Medium Scale Entrepreneurs (SMEs) in the island, the key driver of Sri Lanka’s industry sector, the National Enterprise Development Authority (NEDA) which falls under the Ministry of Industry and Commerce of Sri Lanka has recently launched Sri Lanka’s first trilingual Small & Medium Enterprise Guide Book 2012.

The Book is an operational manual for SMEs to sources of information in financing, technical assistance, Commercial bank extended loan schemes and other relevant attributes.

Image: M.S.S. Ameer Ali (Chairman/Director General of National Enterprise Development Authority, at left) presents the copies of Sri Lanka’s first trilingual SME help manual “Small & Medium Enterprise Guide Book 2012” to Rishad Bathiudeen, Minister of Industry and Commerce of Sri Lanka (centre) for its launch as Tilak Collure (Secretary, Ministry of Industry and Commerce, at right) joins in on 19 January in Colombo.

Small & Medium Enterprise (SME) Guide Book 2012 : Download here

Hirdaramani Group Invests $ 6.3mn In Asia's First Apparel Factory to Receive the Carbon Neutral Award

12th February 2012, www.nation.lk

Hirdaramani Group (HG), one of Sri Lanka’s largest apparel exporters, have invested US$ 6.3 million in their new factory ‘Mihila’ located at Agalawatte, the first apparel factory in Asia to receive the Carbon Neutral award, a senior official of the firm said. According to HG Director Aruna Kuruppu, the firm expects cost of production through the new plant would reduce by 15%- 20% monthly due to its eco-friendly construction that reduces water and energy consumption.


“This factory is also the first in Sri Lanka to receive the LEED certificate. Though this is more of Corporate Social Responsibility (CSR) project, in the long run it is going to be beneficial for the company as it will attract more customers and business partners due to this certification,” Kuruppu said.
He said, “Hirdaramani is also presently in the process of converting their factory based in Eheliyagoda as a Carbon Neutral factory, which will be completed within this year and plans to convert other factories under their holdings as Carbon Neutral in the future.”


“We have 18 companies here in Sri Lanka and two others in Vietnam and the Maldives. We will be converting each one of these in to carbon neutral factories in time to come,” Kuruppu said.
Meanwhile, Director of HG Nikhil Hirdaramani said that HG planned to invest US $5 million in opening a new factory in Vauniya in the near future, which would produce around 15, 000 pieces per day.

Related Info :

• Sri Lanka Could Generate $100mn in Carbon Trading

Sri Lanka Apparel Industry Tops $ 4bn for the First Time

10th February 2012, www.dailynews.lk, By Sanjeevi Jayasuriya

Sri Lanka’s apparel industry has surpassed the US $ 4 billion mark for the first time in its export earnings reaching $ 4.09 billion for 2011.

The industry tops $ 4 billion in foreign exchange for the first time and this impressive performance has also recorded a 22 percent growth over 2010 where the earnings were $ 3.2 billion. This shows that the country’s apparel industry is resilient and we need to take measures to sustain the growth, Joint Apparel Association Forum Secretary General M P T Cooray told Daily News Business.

We have now a bigger challenge to sustain the $ 4 billion level. This is largely due to the recession in the West. The USA and Europe are our biggest markets. However, we do not consider this as a serious threat as during the past we have overcome many difficulties successfully, he said.

The resilience of the industry has proved that we can face any challenge and there will not be any considerable drop that will effect us.

We believe that the rising cost will have a negative impact in sustaining the earnings. The policy framework to prudently manage the rapidly fluctuating exchange rate as proposed in the 2012 budget is timely as if not the market will dictate terms.

The apparel industry continues to aggressively penetrate new markets and it has focused on a number of markets outside traditional markets.

Additionally the country is looking at identifying growing markets such as India, China, Japan and Brazil and also looking at entering Turkey and Spain.

Though these markets are available there are certain barriers to penetrate. India has restricted our export by allowing only 3 million pieces of unconditional quota and 5 million pieces based on Indian fabric. Japan on the other hand has a number of bilateral agreements which provide tax concessions to our competitors. China and Brazil has higher tariff on a global basis this will also be a concern for Sri Lanka.

“We are working hard to becoming an apparel hub and will promote introducing legislation to set up international operations shortly to facilitate this effort. We are hopeful that the Act will be introduced by next month. With the target to become a $ 5 billion plus industry by 2015, Sri Lanka’s apparel industry is focusing on a continuous high growth trajectory,” Cooray said.

Related Info :

• Apparel Indistry to Achieve $5bn in 2015 despite Competition & Uneven Playing Field in the International Arena

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

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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NMK Green Technologies New Copra Production Process Saves Sri Lanka Rs 4bn a Year

03rd February 2012, www.nation.lk

NMK Green Technologies (Pvt) Ltd, a member of the NMK Holdings (Private) Limited has introduced a new process for the production of copra, after a series of research.

This innovative system will replace the age-old traditional method of copra production and will help Sri Lanka to save around Rs. 4 billion in foreign exchange per annum, said Manjula Narayana, Managing Director of NMK Group of Companies.

In the usual process of producing coconut oil, the enormous amount of coconut shells is unnecessarily wasted by burning them for drying the copra. Around 80,000 to 120,000 tons of coconut oil is produced locally per annum to meet the consumer demand. This means that around 8,000 coconuts are required to produce a ton of coconut oil. Therefore, on an average, one billion coconuts are needed to produce Sri Lanka’s annual coconut oil consumption.

“Around 65% - 75% coconut shells are annually burnt in this traditional method. If we were to export these wasted shells as charcoal and value added activated carbon, Sri Lanka can earn Rs. 4 billion per annum”.

This situation can be diverted for the greater benefit and prosperity of the country if the newly invented process of copra drying is applied. For the benefit of the national economy, this machinery can be provided to those keen in this new technology, he stressed.

Coconut oil contains the lauric acid which is a feature in mother’s milk too. Lauric acid enhances the human body’s immune system and helps in a big way to resist diseases caused by viruses and bacteria. As coconut oil contains short and medium chain fatty acid, it digests easily thereby providing the stamina the human system needs.

In addition, as coconut oil also contains substantial volumes of MCT (Medium Chain Triglyceride), it provides energy and nutrition to brain cells to enhance its functions apart from glucose.

He said these fundamentally important factors have been scientifically proven in research done in USA and Europe. But, it should be borne in mind that the human body can accrue all these health benefits only if proper and systematic processes and techniques are used to extract coconut oil. In applying traditional methods to produce coconut oil, the natural goodness and its useful health benefits are destroyed. Not only that, due to bad manufacturing practices and unhygienic process, green and yellow bacterial fungus which is health hazardous forms up.

“During ten years of research we did with the active involvement of academics including Professors, we were able to scientifically establish these factors. Our company is equipped with a modern, state-of-the-art laboratory to ensure safety, hygiene and the overall health of the nation”.

In the traditional system of extracting coconut oil, the coconut kernels are placed on the copra kiln and smoke induced from coconut shell is used to convert it into copra. The smoke emanating from coconut shells contain chemicals such as hydro carbons in the nature of Polycyclit Aromatic Hydrocarbon – PAH, which are harmful to humans. It is these chemicals which act on the kernels and changes its color from white to brown. This process also destroys the natural goodness of coconuts.

“Afterwards, it is common to dump the copra in insecure places infested with cockroaches, rats and other rodents. This results in the waste of these creatures also mixing with the copra. Another threat is contamination with active germs and harmful strains of bacteria stemming from yellow and green fungus due to high moisture contain as these stocks of copra are stored for long periods of time”, he noted.

When these stocks of copra are ultimately taken to the oil mill, the milling is done by a screw-type expeller which does not separate the impurities as well as milling and simple filteration can not remove microbes, free radicals, Free Fatty Acid and Peroxide value without refining. Therefore, most of the coconut oil sold in the marketplaces is of this inferior quality which has been extracted without even a semblance of quality and hygienic standards.

“Many people use caustic soda for refining, which is also harmful to the health, and to make the coconut oil white & clear; but, NMK manufacture Marina Refined Coconut Oil using new technology of physical refining with only steam & vacuum with the international standard of ISO 22000, HACCP and Halal. Further, Marina produced Virgin Coconut Oil using Cold Process for export to the international markets and now it is available in the local market as well. The Virgin Coconut Oil has immense health benefits and you can visit company web site for details.

Related Info :

• Sri Lanka Coir Fibre Exports Increased Sharply in 2009 due to Demand from China

Sri Lanka Chemanex Opens Chemical Plant. Rs 350mn carboxy Methyl Starch Extrusion Plant at Mirigama Export Processing Zone

03rd February 2012, www.lankabusinessonline.com

Sri Lanka's Chemanex said its Chemcel subsidiary has had a soft opening of its carboxy methyl starch extrusion plant on January 28, 2012.

The plant, built at a cost of 350 million rupees, is located in the Mirigama export processing zone, north of the capital Colombo, it said in a stock exchange filing.

The construction of the second phase of the plant will start soon at an estimated cost of 750 million rupees funded mainly by its overseas partners, it said.

Carboxy methyl starch is used in several fields including oil well drilling, textile printing, ceramics and corrugated paper.

Related Info :

• Chemanex US Chemical Company Tie up to Bring Investment for a New Plant

Atchuveli Industrial Zone Ready by March 2012. Local & Foreign Investors Express Interest

23rd 19th January 2012, www.dailynews.lk, By Shirajiv Sirimane, Picture By Saliya Rupasinghe


The first stage of the Atchuveli industrial zone would be ready by March this year. Several local and foreign investors have expressed interest to commence operations. The President of The Chamber of Commerce and Industry Yarlpanam, K.Poornachandran said that the first stage would include the developing of 25 acres and a further 67 acres would be added to the second stage. ‘Under the first stage 40 companies would operate and the total direct and indirect employment from the project would be over 6,000.’

One of the biggest advantages similar to the Hambantota airport and harbour industrial zones would be the close proximity of an international harbour and airport. “The Palali airport which is to be elevated to an international airportand Kankesanthurai harbour are located less than 10 kilometres to the zone giving investors the opportunity for exports,” he said speaking at the opening of the three day Jaffna International Trade Fair (JITF) which was concluded last Sunday at Alfred Dureiappa Stadium.


He requested the Indian government to open credit line through EXIM so that small and medium entrepreneurs could obtain financial assistance to expand. He also appealed to expedite rebuilding the railway to Jaffna.

“The JITF also helped them find new markets,” he said. “Year 2012 is completely development oriented, and therefore the trade fair is also focused on development.”

Consul General of India in Jaffna, V. Mahalingam said the Indian government would be investing US $ 20 million to rebuild Kankasanthurei harbour. ‘This would be ready by March,” he said. He also said that the Indian government is also assisting in upgrading Palali airport which too would be ready mid this year.

Government Agent, Jaffna Emelda Sukumar said that by the end of the year the province would have total coverage of electricity and all main cities would have pipe borne water. “Pipe borne water in Jaffna would be utilized for industries,’ she said. She also assured that a carpeted road network to Jaffna from Vavuniya would be completed in two years.

The President of the Federation of Chambers of Commerce and Industry of Sri Lanka (FCCISL) Kumar Mallimaratchi said that JITF helped inhabitants and traders of Jaffna to make technological exchanges and be in line with the vast advances that have taken place in technology. ‘This will help the traders in their endeavour to create more efficient and sustainable businesses,” he said.

Recently, the Northern Province recorded a provincial nominal GDP growth rate of 14.2 per cent, the second highest in Sri Lanka and Central Bank Governor Ajith Nivard Cabraal earlier this month predicted that the North and East wereexpected to grow at 13 percent during the next four years.

The trade fair organized by Sri Lanka’s award winning event organizing company, Lanka Exhibition and Conference Services (LECS) attracted over 200 companies both local and international, exhibiting over 300 stalls. Over 60,000 visitors participated.

Image: Minister of Traditional Industries and Small Enterprise Development Douglas Devananda, Consul General of India in Jaffna, V. Mahalingam, the President, FCCISL, Kumar Mallimaratchi, Director of LECS Imran Hassan opening the JITF.


Related Info :

• Palaly to be Made an International Airport for Regional Passengers to Sri Lanka. Rs 1bn Allocated for Northern Development

• Jaffna International Trade Fair 2012 from 20 to 22 January at Alfred Durayappah Stadium. Over 200 Companies to Take Part in JITF

Elephant Pass Saltern to Start Operations with an Indian Company

23rd January 2012, www.dailynews.lk, By Shirajiv Sirimane

An Indian salt manufacturing company will start operations on one of Sri Lanka’s largest salterns at Elephant Pass mid this year.

Consul General of India in Jaffna, V. Mahalingam said that they have already provided technical assistance to commence this plant.

He also said that the Indian government has also agreed to provide 10,000 push bicycles to the North East and an Indian company would soon start a bicycle assembly plant in Vavuniya.

He also said that travellers from North East to India have increased for leisure, pilgrim, education, business and for health purposes. ``We process around 50 to 75 applications each day,” he said.

He also said that the State Bank of India would open one of its branches in Jaffna making it the second Indian bank after Indian Bank to operate in Jaffna. “In addition Indian Life Insurance Corporation too is looking at opportunities in Jaffna,” he said.

Sri Lanka Sends Bicycles to European Markets

21st January 20122, www.nation.lk

The Governor of the Central Bank of Sri Lanka, Ajith Nivard Cabraal on Friday declared open a new bicycle manufacturing plant owned by B S H Ventures (Private) Limited, a joint venture between Bangladesh, Holland and Sri Lanka at the Biyagama Export Processing Zone.

The company, which has invested US $4 million in the venture, is set to produce branded bicycles to cater to the European market in its factory. The Governor along with the firm’s Managing Director, Jeyam Perumal are seen touring the new plant, which is capable of producing around 1300 bicycles a day. (Pic by Rukshan Abeywansha).

Central Bank Governor Ajith Nivad Cabraal and Jeyam Perumal of BSH Ventures ride bicycles on an inspection tour of a BSH bicycle assembling plant which was opened at the Biyagama Free Trade Zone on Saturday. (Image Courtesy By www.island.lk. Pic by Kamal Bogoda).

Nestlé Opens Rs 1bn Noodle Plant Marking the 2nd Phase of Its Investment Commitment of Rs 10bn in Sri Lanka

12th January 2012, www.ft.lk

Nestlé opened its new noodle plant at its state-of-the-art manufacturing facility in Kurunegala yesterday, marking the second phase of its investment commitment of Rs. 10 billion in the country.

The company’s latest investment, amounting to Rs. 1.1 billion, sees the completion of a new noodle manufacturing plant that will increase and upgrade output for Nestlé’s popular Maggi Noodles range.


The Maggi Noodles manufacturing plant was inaugurated by Minister of Health Maithripala Sirisena, who presided at the event as Chief Guest, in the presence of Minister of Environment Anura P. Yapa, Minister of Co-op and Internal Trade Johnston Fernando, Minster of Coconut and Janatha Estate Development Jagath Pushpakumara and NWP Chief Minister Athula Wijesinghe.

Also present were Embassy of Switzerland Deputy Head of Mission Franz Schneider, Chairman of Nestlé Lanka PLC and Regional Head for Nestlé South Asia Helio Waszyk and Nestlé Lanka PLC Managing Director Alois Hofbauer.

Commenting on the new noodle plant and the long term implications of the expansion, Minister Yapa said: “Nestlé Lanka’s strong and continued commitment to the development of Sri Lanka is increasingly evident through each aspect of the company’s activities.”

“The developments seen here will not only provide job opportunities and steady income for many members of the community, but also provide enhanced and consistent demand for raw materials that will positively impact many suppliers and rural farmers across Sri Lanka,” he added.

Nestlé Lanka MD Hofbauersaid: “Our new-cutting edge noodles plant for our much-loved Maggi Noodles product marks another milestone achieved in delivering on our Rs. 10 billion investment plan for Sri Lanka. We have a lot of exciting new products in the pipeline for 2012. This latest culinary expansion will ensure that our consumers are able to delight their taste buds with our latest and delicious Maggi Noodle innovations.”

Nestlé operates on the ethos of ‘Creating Shared Value’ in the communities it touches. In 2011, in line with its mission to ‘Create Shared Value,’ Nestlé committed to a Rs. 10 billion investment in Sri Lanka (for dairy development and capacity expansion in its beverage and culinary areas) over a period of five years. “The inauguration of this new noodle plant with an investment of Rs. 1.1 billion, our first investment in 2012, marks another investment milestone and demonstrates Nestlé’s commitment to invest in and partner with Sri Lanka for mutual growth and development. Being voted by Sri Lankan consumers as the number one nutrition, health and wellness company in a recent survey is a testament of our continuous focus and commitment to provide ‘Good Food, Good Life’ to our valued consumers,” said Waszyk.

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Ceylon Handlooms Brand for Promotion of Sri Lanka Handloom Sector

11th January 2012, www.fibre2fashion.com

The National Level Task Force (NLTF) formed on a high priority basis on December 22 by a top Minister for the development of Sri Lanka’s handloom sector started work on 10 January on the loom industry’s future roadmap as previously scheduled. The new national level project is expected to deliver value and professional structure to Sri Lanka’s $ 13 Mn and growing handlooms sector.

“This effort will bring in Ceylon Handlooms brand to the international markets and also will upgrade and modernise in order to attract more youth to the industry to sustain its long term course. More importantly, this is a collaborative effort by the Ministry of Industry and Commerce with various stakeholders such as the private, cooperative and provincial council level industries and the Universities” announced Rishad Bathiudeen, Minister of Industry and Commerce of Sri Lanka on 10 January at the Ministry of Industry and Commerce at Colombo 03.

Minister Bathiudeen announced this in the immediate aftermath of the in-depth, follow up discussion and presentations held on 10 January after the pioneering meet of the high level taskforce on 22 December at the Ministry of Industry and Commerce.

During the 10 January sessions representatives from the USAID, National Entrepreneurs Development Authority (NEDA), University of Moratuwa, Export Development Board, Department of Textiles, Sri Lanka Institute of Textile and Apparel, and reps from private sector handloom manufacturers, started work on the future industry roadmap of the promising Sri Lankan handlooms sector.

The stakeholders present reached consensus on the need for branding of country’s handlooms based on its unique identity characteristics and also on the needs of high end international niches.

“We want to become the most sought after destination for niche handloom products” Minister Bathiudeen said. The ‘Ceylon Handlooms’ brand-name came to the favourable attention of the stakeholders and Minister Bathiudeen.

Currently, the country’s handlooms, in addition to the domestic market, are absorbed by Italy, Maldives, Germany, France,United Kingdom, Thailand, Netherlands and Norway. According to the Exports Development Board (EDB) under the Ministry of Industry and Commerce, the handloom exports valued $ 0.90 Mn in 2009 rose in 2010 to $ 1.5 Mn and in January-October 2011, stood at $ 1.17 Mn. EDB expects the handloom exports to hit $ 2.24 Mn in 2015. The handloom textile export target for 2011 set by the EDB under the Ministry of Industries is US $ 1.29 million (Rs 146 million).

Sri Lanka’s handloom sector is one of the low cost but high earning industries. Its annual production exceeds six million metres of looms with an estimated annual production value of Rs 1500 Mn ($ 13.19 Mn) all of which are absorbed by both local and international demand.

The production is labour intensive and the industry consumes less electricity & utilities while generating higher employment. At present, there are 511 weaving centres with 2971 weavers and more than 10000 looms in Sri Lanka assisted by 22 dying houses.

Tata Acquires Dutch Lanka Trailers for $ 8.3mn

07th January 2012, www.ft.lk

Tata group firm TRF Ltd. has increased its shareholding in Sri Lanka-based Dutch Lanka Trailer Manufacturers Ltd. to 100 per cent by acquiring the remaining 49 per cent stake for $ 8.33 million.

TRF had picked a 51 per cent stake in 2009 for $ 8.67 million through its wholly-owned subsidiary TRF Singapore Pte. Ltd. The deal also gave TRF a Put and Call option to acquire the balance 49 per cent, which the firm has exercised now.

Dutch Lanka Trailer has a manufacturing facility in Sri Lanka and sells trailers in over 30 countries. One of its subsidiaries is also involved in repairing, maintenance and service business of trailers.It also has a subsidiary in Oman besides a JV with Tata International to manufacture and sell trailers in India.

TRF is involved in providing solutions for material handling equipment and processing systems required in the infrastructure development. It has also expanded into automotive applications business. TRF earlier said that it plans to grow to Rs. 2,500 crore by 2013 focusing on material handling business and auto applications business.


For the six month period ending September 2011, TRF reported 7.55 per cent increase in revenues to Rs. 271.86 crore with Rs. 5.3 crore in net profit (as compared to Rs. 15 crore loss) in the same period last year.
In 2010, TRF acquired UK-based Hewitt Robins International for $ 4.62 million. Hewitt Robins is engaged in design, manufacturing of screens, mobile crushing and related products.

Sri Lanka's Former War Zone Gets $ 5mn Apparel Plants by Timex and Fergasam Group

06th January 2012, www.lankabusinessonline.com

Apparel exporters Timex and Fergasam Group will build two factories at a cost of five million US dollars in Sri Lanka's north-western Mannar, part of the former war zone, the ministry of industry and commerce said.

The first Mannar factory is to start production by mid-October 2012, its statement quoted officials of Timex and Fergasam as saying.

The project will be in two phases with the first factory giving employment for 1,200 people and the second for 800.

The new factories will be the 17th and 18th manufacturing facilities to be set up by the apparel group.

Timex and Fergasam currently employs more than 8,000 across its 16 manufacturing facilities with offices in UK and Hong Kong.

Among clients of Timex and Fergasam are top labels like Marks & Spencer, Victoria’s Secret, House of Frazer, Diesel, H&M and SUZI Chin, the statement said.

$4bn Investments for Sri Lanka in First Half of 2011 for Tourism, Manufacturing & Infrastructure

04th July 2011, www.bloomberg.com

Sri Lanka’s Board of Investment approved 28 projects worth $4 billion from foreign and local companies in areas including tourism, manufacturing and infrastructure in the first half of 2011, acting chairman A.M.C. Kulasekera said in capital Colombo today.

To contact the reporter on this story: Anusha Ondaatjie in Colombo at anushao@bloomberg.net

To contact the editor responsible for this story: Hari Govind at hgovind@bloomberg.net

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