Sri Lanka’s Consumer Electronics & Appliances Imports Showed Robust Growth during 2010 - 2011, but Slowed down in 2012

27th February 2013, www.news360.lk

Sri Lanka’s consumer electronics and domestic appliances imports have seen robust growth during the year 2010 and 2011, but has slowed down in the year 2012, with number of products recording a decline in imports both in value and quantity.

A study conducted by the Ceylon Chamber of Commerce says, the 2010 and 2011 growth was propelled by the overvalued exchange rate coupled with low interest rates and reduction in taxes applied for the importation of those goods.

The study says, the 2012 moderate growth was due to the sharp fall in the rupee, ceiling on credit and increased cost of borrowing.

The value of imports coming under the HS Chapter 84, which covers a large variety of machinery and parts, classified as investment goods in addition to consumer electronics and domestic appliances have recorded a 66% growth in 2011 and 19% in 2012.

“The growth in imports in this category reflects increasing demand for investment goods as well as demand for durable consumer electronics”, added the Chamber in a statement issued.

The Chamber says the expenditure on importation of electronic machinery and equipment coming under HS Chapter 85 has increased by 57% in 2011 and by 18% in 2012.

As a percentage of total imports, Chapter 84 has accounted for 8.2% and Chapter 85 has accounted for 6% in 2012.

The study finds that the decline in consumer electronic items imported in 2012 has been modest compared to the high rate of growth experienced during 2010 and 2011.

However, the Chamber says, the volume imported of most items in 2012 remains well above the annual average volume of imports during 2005-2009.

“For example the number of household type refrigerators imported increased by 267% in 2011 to reach 167,844 units. In 2012 although quantity imported declined by 26%, the volume of imports of 119,923 units is well above the average of less than 50,000 units per year imported during 2005-2009”, added the Chamber in its findings.

While most products analyzed in the report have recorded a decline in imports in 2012, few products have recorded an increase.

These are air conditioning machines, televisions and mobile phones.

During the year 2011, and 2012, items such as fans, rice cookers and mobile phones have exceeded 1 million units imported per year.

The items where imports exceeded 500,000 units per year in 2011 and 2012 are televisions, electric kettles, electric irons and fruit or vegetable juice extractors.

Items that have recorded imports in excess of 100,000 units a year during 2011 and 2012 are fans, household type refrigerators, portable computers, other types of computers, toasters and radio broadcast receivers.

Personal care electronic items such as shavers, hair clippers, hair removing appliances, hair dryers have recorded a modest growth over the years and the number of units imported of each item still remains below 50,000 units a year.

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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 2011 Export Earnings Rise by 22.4pct while Imports Up by 50pct Affecting Trade Deficit to Increase by 99.6pct

24th February 2012, www.news360.lk

Sri Lanka’s trade deficit during the year 2011 has jumped to US$ 9.74 billion, an increase of 99.6% over the previous year’s figure of just US$ 4.88 billion.

The country’s total export earnings during the year 2011 has risen by 22.4% year on year to achieve a figure of US$ 10.48 billion, while its import bill has climbed up to US$ 20.23 billion, an year on year increase of 50%.

Out of the total import cost, the country has spent US$ 4.63 billion to import oil while motor cars and cycle imports which falls under the consumer goods imports has cost  US$ 1 billion.

Expenditure on imports of textiles and clothing has amounted to US$ 2.23 billion while gold imports have seen a bill of US$ 604 million.

Sri Lanka also has spent US$ 4.66 billion to import investment related goods to the country.

The country’s export earnings have been backed by exports of textiles and garments which has seen growing by 24.6% year on year to bring in US$ 4.20 billion.

Island nation has seen its tourism sector bringing in US$ 830 million, a 44.2% year on year growth.

Worker remittances to the country during the year 2011 have hit a record mark of US$ 5.14 billion.

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Sri Lanka - France Trade Shows a Significant Growth in the Past Two Years. Sri Lanka France Business Council Highlights Untapped Potential of the 5th Largest Economy

24th January 2012, www.dailynews.lk, By Sanjeevi Jayasuriya

The trade relationship between Sri Lanka and France has recorded a significant growth in the past two years. Reviewing the trade performance between Sri Lanka and France we see an encouraging revival with healthy increase in both imports and exports, despite challenging business conditions. Exports to France in 2010 increased by 12% to US$ 160 million compared to the previous year, Sri Lanka France Business Council Immediate Past President Nirmali Samaratunga said.

The apparel exports accounted for the major share, notwithstanding removal of the GSP plus facility. The imports from France showed an impressive increase of 49% to US$ 152 million as against the previous year, with 46% of the total been on account of imports of electrical machinery and equipment, she said at the recently held AGM in Colombo.

The first quarter figures of 2011 indicated an upward trend, with exports showing an 11% increase and imports a 154% increase over the previous period, which is encouraging.

The economy of France which was impacted by the downturn of 2009 has shown resilience and recovery in the years that followed. The first quarter of 2011 indicated that the economy has been growing at a stronger pace than expected at 0.9% - one of the best in Europe, although in the period July-September has slowed down to 0.4%. ‘Meanwhile we need to be mindful of the emerging situation in the Euro Zone and the growing sovereign debt problem of several countries leading to a possible recession in the Euro Zone.’

‘We need to be geared to minimize the threat of a possible global economic slowdown which would impact both our countries,’ he said.

Total trade stood at just over US$ 300 million in 2010, with balance of trade remaining in favour of Sri Lanka. It is a mere fraction of the country’s total trade, exports being 1.9% of total exports and imports just 1.2% of the country’s total imports. The investment continues to be around $ 45 million again highlighting the potential for greater French investments especially with the emerging opportunities in the newly liberated areas in sectors such as agriculture and fisheries as well as in the rebuilding and strengthening of the country’s infrastructure.

All this indicates the untapped potential, which our Council can play a role to harness especially in view of France being the 5th largest economy globally. The strategy is to identify sectors, hitherto untapped, where there is emerging potential for Sri Lanka products, and where our products, notwithstanding the loss of duty concessions and preferential trade facilities, can hold its own. These include high end, value added products, marketed particularly through niche marketing and branding.

Furthermore, it is necessary to identify and focus on the emerging market trends in Europe including France, where demand is growing for eco friendly and health products such as organic products and herbal medical products such as ayurveda products.

We need to target such areas where our products have a competitive edge. The recent Budget 2011 proposals which are development oriented with strong focus on exports and upgrading technology and research and development will be a further support. France’s strengths also need to be exploited to a greater degree in key industries such as telecommunication, machinery and pharmaceuticals, through greater awareness and promotion and linking Sri Lanka business with French counterparts. The inward and outward trade delegations can play a very valuable role in facilitating this, Samaratunga said.

Sri Lanka's Post War Growth Motivates US Investment & Trade between the Two Countries

19th January 2012, www.news.lk

US Department of Commerce Deputy Assistant Secretary for Africa, the Middle East and South Asia has said that the impressive economic growth in post-war Sri Lanka was “exciting” and it is motivating the US Department of Commerce to urge their companies to invest in the country and diversify trade between the two nations.

She has said that the United States is taking a more regional approach to increase ties and they hope to identify specific opportunities during the mega Expo 2012 that Sri Lanka is organising in March 2012.  She has said that the United States is optimistic of the Sri Lankan government’s moves to increase its rankings in the World Bank Ease of Doing Business Rankings.

Ms. Vineyard has disclosed that on the sidelines of the Expo the latest round of Trade and Investment Framework Agreement talks between the US and Sri Lanka will be held to formulate policies. She has pointed out that US investment in the booming tourism industry did come up during her meetings with officials including the Board of Investment and that it was possible to explore prospects of franchising with global brands.

She has also pointed out that last year Sri Lanka attracted over US$ 1 billion in Foreign Direct Investment, which is extremely good and an indication of how global investors perceive the country. She has also said that when there is more and more trade there will be more and more issues to deal with and it is very important to have a partner willing to talk and resolve them, and Sri Lanka has always been such a partner and that is very positive.

Referring to China’s involvement with Sri Lanka Ms. Vineyard has said that US companies welcome competition from anywhere when there is a level playing field, and has called on authorities to consider the lifespan of projects and stressed that in terms of long term dependability and return US companies have a solid record.

A delegation of 14 companies is travelling to India next month and Ms. Vineyard expects them to explore Sri Lanka’s harbours as investment options as well.

2nd Image: Courtesy www.dailynews.lk

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Emir of Qatar to Visit Sri Lanka. Two Agreements to be Signed on Investment Promotion, Protection & Cooperation in Education & Research

13th January 2012, http://www.ft.lk

Sri Lanka is to pen two agreements with Qatar on Investment Promotion and Protection as well as for cooperation in education, higher education and scientific research. The documents will be signed between the two countries during the Qatar President’s visit, which will take place on 15 and 16 January. Emir of Qatar Sheikh Hamad Bin Khalifa Al Thani will make an official visit to Sri Lanka on the invitation of President Mahinda Rajapaksa.

The Qatari delegation will consist of high-ranking officials of the Qatari Government and several leading business tycoons of Qatar, the official Government website said.


On a proposal made by External Affairs Minister Prof. G.L. Peiris Cabinet approval was granted for the proposed agreement to intensify economic cooperation to the mutual benefit of Sri Lanka and the State of Qatar, while creating and maintaining more favourable conditions for investments by investors of both countries.

Meanwhile, on the proposal made by Education Minister Bandula Gunawardena, Cabinet decided to sign a Memorandum of Understanding (MOU) for cooperation in education, higher education and scientific research.

This MoU intends to consolidate friendship ties and promote cooperation in the fields of education, higher education and scientific research between the two Governments, Cabinet Spokesman Minister Keheliya Rambukwella said.

Under the investment agreement, protection and security will be assured for businesses by both countries.

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Citi Bank RMB Settlement Service in Sri Lankae will Eiminate Cross Currency Exchange Risks as Trade with China Continues to Grow

11th January 2012, www.news360.lk

Citi’s global transaction services has launched its renminbi settlement services in Sri Lanka, said a Media report.

The latest move of the Citi comes as the trade volume between Sri Lanka and China continue to grow.

The report says this solution will help Sri Lankan firms by eliminating cross currency exchange risks.

The new Service is aimed at enabling companies to open and maintain renminbi accounts in renminbi with Citi, and make renminbi payments directly to the beneficiaries.

The service by Citi in Sri Lanka follows after the country recognized the Chinese currency as a settlement currency.

Trade between Sri Lanka and China is growing as the Asian giants influence and engagement in the Island is growing.

China has already financed or in the process of financing key infrastructure development projects in Sri Lanka including financing the Hambantota Port.

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UAE Foreign Trade Minister Lubna Al Qasimi Meets Sri Lankan Minister for Trade & Industry to Discuss Trade & Investment

23rd May 2011, www.wam.ae

Foreign trade Minister Sheikha Lubna Al Qasimi discussed here today at the ministry with Sri Lankan Minister for Trade and Industry Rashad Badi Al-Din, the bilateral relations and ways to boost them in the areas of trade and investment.

The two sides discussed ways to bolster business communities in both countries to benefit from potential opportunities. They praised the progress of the bilateral relations, especially in the field of trade, citing that the trade between the two countries grew by 9.3 per cent last year to $364 million.

Sheikha Lubna stressed the keenness of the UAE to boost the trade with Sri Lanka, indicating that both countries enjoy a variety of cooperation opportunities. She referred to the importance of encouraging the private sector in both countries to benefit from the economic opportunities.

For his part, the Sri Lankan minister stressed the keenness of his country to boost joint cooperation, and benefit from the successful UAE developmental experience.

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High Level Visit to the Czech Republic by a Sri Lankan Minister to Promote Trade & Investment. Investment Protection & Promotion Agreement Signed

28th March 2011, www.dailymirror.lk

External Affairs Minister Prof. G.L. Peiris yesterday began an official visit to the Czech Republic on the invitation of Deputy Prime Minister and Minister of Foreign Affairs of the Czech Republic Karel Schwarzenberg.

This was the first high-level visit by a Sri Lankan minister to the Czech Republic in recent years.

During the official visit, the Minister was scheduled to meet the President of the Czech Republic, Vaclav Klaus, Deputy Prime Minister and Minister of Foreign Affairs, Karel Schwarzenberg Minister of Industry and Trade, Martin Kocourek, Minister of Finance, Miroslav Kalousek, First Deputy Minister of Defence, Jiri Sedivy and Chairwoman of the Chamber of Deputies of the Czech Parliament, Mrs. Miroslava Nemcova.

He would also meet the Inter-parliamentary Group, Friends of Sri Lanka.

The Minister of External Affairs would address the Czech-Sri Lanka Investment Forum at the International Chamber of Commerce to help promote economic, trade and investment cooperation between Sri Lanka and the Czech Republic.

Representatives of the Czech Business and Investment Sectors would be present at this Forum. During the visit, Mr. Peiris and the Czech Minister of Finance Miroslav Kalousek were to sign an Agreement for the Promotion and Reciprocal Protection of Investment between Sri Lanka and the Czech Republic.

Image: Minister of External Affairs Prof. G.L. Peiris and Minister of Finance of the Czech Republic Miroslav Kalousek sign Investment Protection and Promotion Agreement at Ministry of Finance in Prague.

Emir of Qatar to Visit Sri Lanka later this year. Two Countries to Establish a Joint Commission to Develop Bilateral Trade

23rd February 2011, www.gulf-times.com

HH the Emir of Qatar Sheikh Hamad bin Khalifa al-Thani will visit South Asian island republic of Sri Lanka later this year, according to a report in one of the English newspapers of that country yesterday.

Quoting Sri Lankan government sources, Colombo’s Daily Mirror newspaper reported that the Emir’s decision to visit Sri Lanka followed an invitation from the country’s President Mahinda Rajapakse, which he sent through his External Affairs Minister G L Peiris, when he visited Qatar a week ago.

Quoting official sources, the newspaper also reported that the two countries would establish a joint commission to develop bilateral ties in trade, investment, tourism and economic sectors.

When contacted, a senior official of Sri Lankan embassy in Doha confirmed the reports on the proposed visit of the Emir.

“Even though it is too early to say when the Emir would visit Colombo, it is certain that it would take place this year itself,” he said. It would take place at a time which is convenient to both the Sri Lankan government and the visiting delegation, the official added.

Answering a query, the embassy official said besides the Emir, the Sri Lankan external affairs minister had also met HE the Prime Minister Sheikh Hamad bin Jassim bin Jabor al-Thani and HE the Minister of Labour and Social Affairs Sultan bin Hassan al-Dhabit al-Dossari.

The newspaper also said that Qatar had agreed to help to develop tourism in Sri Lanka.

It was also agreed to employ engineers and technicians from Sri Lanka in the works linked to the Fifa World Cup Football, which Qatar would host in 2022.

The local Sri Lankan embassy sources put the number of Sri Lankans in the country close to 95,000.

“This number is based on the records provided to the embassy by Qatar ministry of interior,” said the mission’s official.

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Qatar Sri Lanka Investment & Trade to Expand with a Joint Commission and Proposed Investment Agreement

18th February 2011, www.dailynews.lk

A strong foundation exists for a significant expansion of the investment and trade relationship between Sri Lanka and the State of Qatar with the eradication of terrorism and the establishment of stability, External Affairs Minister Prof G L Peiris said at his audience with Emir of the State of Qatar Sheikh Hamad bin Khalifa Al-Thani at the Emiri Diwan in Doha.

The Emir recalled his meeting with President Mahinda Rajapaksa on the sidelines of the United Nations General Assembly in September last year in New York.

The Emir welcomed the opportunity to work with Sri Lanka in the new situation. Minister Peiris said a treaty for the avoidance of double taxation has been signed by the two countries, and discussions were initiated to establish Joint Commission and the provisions of a proposed investment agreement.

The two sides agreed to work together towards rapid implementation. They also discussed a proposal for a multi-purpose storage facility in Colombo for liquid natural gas, of which Qatar is the largest producer in the world, for trans-shipment purposes, skilled employment from Sri Lanka and a range of issues connected with food security.

The Emir offered assistance with regard to Hi-Tech projects.

The Emir said Sri Lanka is considered a suitable destination for investment.

Minister Peiris held a discussion with Prime Minister and Foreign Affairs Minister of Qatar Hamad bin Jassim bin Jabir Al-Thani at the Prime Minister's Office. Tourism was identified as a promising area for collaboration and a joint project was to be formulated.

Plans were discussed to bring about closer interaction between the Chambers of Commerce in the two countries.

Prof Peiris also met Social Affairs Minister and Acting Labour Minister Nasser bin Abdullah Al-Humidhi.

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Sri Lanka to Renegotiate CEPA, Comprehensive Economic Partnership Agreement with India

11th February 2011, in.news.yahoo.com

Colombo, Feb 10 (PTI) The Sri Lankan government today decided to renegotiate the Comprehensive Economic Partnership Agreement (CEPA) with India which has been hanging fire for the last few years.

An inter agency committee will be set up to prepare a new draft framework to restart the negotiations, the information department said in a release here.

"The representatives of the India and Sri Lanka Governments which met in November 2010 in Colombo noted the significant progress made under the Indo-Sri Lanka Free Trade Agreement (ISFTA).

"They reaffirmed the understanding that it would be timely to build on this achievement through a more comprehensive framework of economic cooperation'', it said.

Accordingly, Cabinet approval was granted to appoint an Inter-Agency Committee on proposal made by the ministry of industry and commerce.

"The Inter Agency Committee will comprise representatives of the Ministries of Finance, Industry, External Affairs and Economic Development and Departments of Immigration, Civil Aviation, Board of Investment and the Attorney General" the statement said.

There have been apprehensions in some quarters in Sri Lanka that the proposed CEPA will give India greater advantage in terms of getting professional jobs in the Island Nation besides imbalances (in favour of India) in investment opportunities between the two countries.

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UAE Sri Lanka Trade to Expand with Unconventional Products at Dubai International Boat Show & Gulfood 2011

05th February 2011, www.khaleejtimes.com

Sri Lanka is introducing unconventional products to its export basket, according to the country’s new Consul General in Dubai.

M. M. Abdul Raheem said that Sri Lanka would be showcasing its expertise in boat making with its first-ever participation in the Dubai International Boat Show being held from March 1- 5, 2011, at the Dubai International Marine Club, Mina Seyahi.

“We have a strong boat building industry and we must introduce it to the world,” Abdul Raheem told members of the Sri Lanka Business Council at a reception hosted on Thursday to celebrate the 63rd Independence Day of their country and to welcome him as took charge in Dubai only some three weeks ago.

“We, the consulate and business community, will work together to promote our unconventional items alongside our conventional products, like tea. In addition, we will also join hands for the growth of investment and tourism,” he said.

Abdul Raheem said that 20 companies from Sri Lanka are also taking part in the Gulfood 2011 exhibition and conference taking place in Dubai from February 27 to March 2. A delegation from Sri Lanka would also visit Dubai during the event, he said.

He said that the total trade volume between the two countries stood at $550 million, of which exports from Sri Lanka, mainly tea, were $220 million. “We can increase our tea exports, improve our export basket and build the private sector in both countries,” he said.

Farook Qasim, Chairman of Sri Lanka Business Council, said that the council has redone its constitution. The seven office bearers are now members of the board of directors with three ex-officio members. The term of office is extended from one to two years.

The reception was attended by Sri Lankan Ambassador to the UAE, Sarath Wijesinghe.

The Sri Lankan Ambassador to the UAE, Sarath Wijesinghe, told Khaleej Times that an important element of the foreign policy of Sri Lankan President Mahinda Rajapaksa is to develop a new rapport with the Middle East and Gulf countries.

He said that in line with the president’s new vision, the country’s missions abroad have been told to break the traditional shell in working for the development of the country.

The envoy said that his priority would be to develop close relations between the peoples and the leaders of the two nations and to promote the sectors of tourism, investment, education and employment generation.

He said that 60 percent of the 250,000 Sri Lankans in the UAE were domestic helpers and his priority is to gradually bring down their number and to replace them with educated skilled workers who have good knowledge of Arabic and English languages.

“Our country is thankful to the domestic helpers who have done enough to support their country’s economy,” Wijesinghe said. “Sri Lanka is not a poor country any more. Domestic helpers have good job opportunities in their home country. We need them there,” he added.

He said that the Sri Lankan government planned to teach Arabic and English to the young educated workers before sending them to the Middle East for employment.

“The knowledge of these languages would serve as an advantage for these workers,” Wijesinghe said, adding that the UAE was ready to help teach Arabic to Sri Lankan workers in their country.

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UAE Foreign Trade Minister to Visit Sri Lanka with a High Powered Business Delegation

11th January 2011, www.sundaytimes.lk, By Bandula Sirimanna

In a bid to explore investment opportunities in Sri Lanka, Foreign Trade Minister of United Arab Emirates (UAE) Sheikha Lubna Bint Khalid Al Qasimi will be visiting Sri Lanka along with a high powered business delegation in the next two months.

Tourism, health and education sectors have lot of potential and these sectors could be promoted with UAE investment, a senior official of the Ministry of Trade in UAE, Dawood Al Shezawi told the Business Times on the sidelines of a seminar on investment promotion between Sri Lanka and the UAE, in Colombo this week.

He added that the UAE can assist Sri Lanka in attracting high spending UAE travellers specially families including children to the island.

Mr Al-Shezawi expressed his willingness to assist Sri Lanka to hold an international investment meeting, accepting a proposal made by Tissa Jayaweera, President of the Federation of Chambers of Commerce and Industry of Sri Lanka who said that Sri Lanka has the potential and resources to attract more foreign investment by hosting high level investment meetings. Data from Sri Lanka's Board of Investment shows direct investment from UAE-based firms exceeded US$ 100 million in the recent times creating employment opportunities for around 90,000 Sri Lankans.

Two UAE's Ministry of Trade officials - Mr Al Shezawi and Emaad Ishaq - who attended the seminar as special guests during their 24-hour trip to Sri Lanka extended an invitation on behalf of the UAE Government to the local business community to attend an annual investment meeting in Dubai from May 10 to 12.

US GSP Trade Facility for Sri Lanka Likely to be Renewed

07 January 2011, www.lankabusinessonline.com, By Ashanthi Ratnasingham

A United States trade facility allowing duty free Sri Lankan exports that lapsed is likely to be renewed with retroactive effect as has happened in the past, officials said.

The US Congress has not renewed the Generalized System of Preferences (GSP) program before its conclusion of business and therefore GSP expired from December 31.

"The Congress considered legislation in December 2010 to extend the facility but ultimately adjourned without taking action to extend it," Subhashini Abeysinghe, Economist at the Ceylon Chamber of Commerce said.

"This means, GSP products from GSP beneficiary countries arriving in the United States on or after January 1, 2011, will not be eligible for the concession.

"This has happened before and the last time authorization of the GSP program lapsed was in 2001," she said.

"The Congress subsequently reauthorized the program ten months later with the renewal being made retroactive."

If renewed retroactively, companies can arrange to be reimbursed for tariffs paid during the gap period.

In the past, U.S. Customs and Border Protection has arranged for the timely processing of refunds of duties deposited on GSP-eligible entries.

The GSP program is designed to promote economic growth by providing preferential duty free entry for about 3,400 products from 131 designated countries which include Sri Lanka.

"It is not only Sri Lanka that will not have this facility extended from January 2011; there are 131 countries involved as well," Abeysinghe said.

"This has happened seven times since 1993 and we think the US will renew the program retroactively as has happened before."

Products covered under the facility include machinery, electrical goods, chemical products, agricultural products, and jewelry.

Most textiles and apparel are not eligible for preferential benefits under the program.

"Only a small percentage of the overall bilateral trade will be affected because garments and textiles which comprise 79 percent of Sri Lankan exports to the US are outside the realm of the GSP," Abeysinghe said.

Countries eligible for GSP benefits must meet several criteria.

These criteria include internationally recognized workers rights like the right of association, the right to organize and bargain collectively, a prohibition on compulsory labor, and a minimum age for the employment of children.

Prohibition on the worst forms of child labor, acceptable conditions of work with respect to minimum wages, hours of work and occupational safety and health are also included.

Sri Lanka Cracks down on Software Piracy. Anti-Piracy and Counterfeit Unit of Sri Lanka Police Carries out Raids

05th December 2010, www.sundayobserver.lk

The Anti-Piracy and Counterfeit Unit, recently established at the Criminal Investigation Department (CID) of the Sri Lanka Police carried out a series of raids on an international group of companies suspected of infringing the intellectual property rights of Business Software Alliance members. Amongst the pirated and unlicensed software were those from Adobe, Autodesk and Microsoft.

The use of pirated and unlicensed software in businesses is a criminal offense under the Intellectual Property Law No.36 of 2003.

The inspection and identification of suspected pirated software took over eight hours and the police seized over 30 computers, installed with suspected pirated business software valued at rupees seven million five hundred thousand (Rs. 7,500,000) taken into Police custody for further inspection and to be produced in Court.

Director CID Wijaya Amarasinghe said: "The laws of Sri Lanka must be respected.

We are focusing on taking action against companies using pirated and unlicensed software in their business as they are not only infringing upon the rights of copyright owners, but may be indirectly rewarding illegal vendors or even organised crime networks. Companies trying to cut costs may be tempted to use pirated software and disregard the law, but piracy is theft and is actionable by law.

The software industry and other creative sectors need protection against this kind of crime. We are responsible for creating a safe environment where legitimate businesses, innovation and original ideas can flourish".

"The Police is committed to protecting intellectual property rights, and will not hesitate to pursue criminal action against senior management of companies found to be taking advantage and flouting the law in this regard", Amarasinghe said.

Consultant, Business Software Alliance (BSA) Sri Lanka Shalini Ratwatte said, "The BSA commends the Government for its initiative to create a safe environment for Intellectual Property and Innovation to thrive.

The establishment of the Anti-Piracy and Counterfeit Unit at the CID, with its dedicated and well trained team, is an example of the Government's commitment to ensure respect for the law in this area.

This is vital for building investor confidence and supporting the growth of legitimate local business".

The cases are being heard at the Magistrate's Courts of Panadura and Kalutara under the instructions of Sudath Perera Associates.

Pakistan to Extend $250mn Export Credit Line to Sri Lanka. Pakistan-Sri Lanka Trade to Reach $0.5bn in Five Years

30th November 2010, www.dailynews.lk, By Anjana Samarasinghe and Charumini de Silva

The Trade between Sri Lanka and Pakistan is to reach US $ 0.5 billion within the next five years. Pakistan President Asif Ali Zardari addressing the Sri Lanka - Pakistan Business Forum 2010 yesterday said the two countries have had a good relationship as good friends and partners in the region.

“With the restoration of peace; the sky is the limit for Sri Lanka. This is a unique situation for Sri Lanka to recover. Sri Lanka will recover gradually and Pakistan will sincerely assist Sri Lanka,” he said.

He also called for a barter trade with Sri Lanka rather than depending on dollar-denominated trade.

There should be incentives for foreign investors that make them keep their profits here in Sri Lanka rather than taking out from the country. President also proposed that there should be discussions with high level financial teams from both countries in formulating strategies to support each other. Sri Lanka needs to develop many parts of the country and Pakistan is ready to assist in improving infrastructure of the country. Pakistani companies should visit Sri Lanka to seek investment opportunities and invest, he said.

Industry and Commerce Minister, Rishad Bathiudeen said the bilateral trade between the two countries has improved remarkably.

The total turnover of bilateral trade between Sri Lanka and Pakistan in 2005 recorded US $ 150 million, which grew up to US $ 252 million in 2009. This is a great indication of the strong trade between the two countries.

“It is time that Sri Lanka and Pakistan should further strengthen our bilateral trade agreements while increasing the volumes of trade,” he said.

Sri Lanka recorded an eight percent growth during the first six months of this year, while becoming one of the best performing capital markets in the world. The macro economic fundamentals are stronger and stabilized. The industries, trade and commerce are taking place in a rapid growth; with the investor friendly business environment the country offers great access to the market as well.

The trade ties between the two countries should be enhanced and promoted to have a constant impetus. There are immense potential opportunities in tourism, textile, IT, agriculture, fisheries, telecommunication, leather products, infrastructure, and sports products for the Pakistan investors to venture into. Sri Lanka is one of the most preferred countries for investments especially in the areas of garments, packaging, IT, telecommunication and rubber.

Sri Lankan investors have many opportunities in the power, gas and mining in Pakistan and Pakistan will offer similar incentives to those Sri Lanka offers for these investors Pakistan State Minister and Board of Investment Chairman Saleem Mandviwala said at the Business Forum.

He said that Pakistan will also extend an US $ 250 million export credit line to Sri Lanka to facilitate trade between the two countries.

“We will also bring down more projects to Sri Lanka,” he said.

Air links between two countries will be further strengthened with direct flights and visa procedures will be relaxed to have more access to Pakistan and facilitate more trade and investment among two countries, he said.

“We invite the Sri Lankan business community to explore the business opportunities available in Pakistan,” he said.

Pakistan is the second largest trading partner of Sri Lanka in the South Asian region and the Pakistan, Sri Lanka FTA covers over 4,000 products.

Belgium Trade & Investment Delegation in Sri Lanka for Belgium Week 2010

20th November 2010, www.island.lk

A trade and investment delegation from Belgium including some big companies in that country will be here for the Belgium Week 2010 beginning tomorrow and continuing till November 26. Belgian exports to Sri Lanka comprising mainly precious or semi precious stones (87.2%) together with pharmaceuticals, tobacco and manufactured substitutes, paper and paper board and plastics amounted to Euros 231.3 million last year.

Belgium imports comprised mainly precious or semi precious stones (60%) and apparel and clothing (20%) with rubber and rubber goods, tobacco and manufactured substitutes and automobiles being minor imports. During the visit here of the business delegation they will be meeting with ministers Basil Rajapaksa, Minister of Economic Development, G.L. Peiris, Minister of External Affairs, Rishard Bathiudeen, Minister of Industry and Commerce, Deputy Finance Minister Sarath Amunugama, Central Bank Governor Ajith Nivard Cabraal and other senior government officials.

They will also attend a briefing at the BOI and a specific seminar on construction, interior, infrastructure, harbour and marine development and tourism projects held in collaboration with the Chamber of Construction Industry.

The Sri Lanka export Development Board, the Benelux Business Council and the Ceylon Chamber of Commerce are organizing match making opportunities between the Belgian delegation and various Sri Lankan companies.

The program has also opportunities for visits to Sri Lanka’s blue chip companies.

The delegation is here under the auspices of arrangements made jointly by the Sri Lanka Embassy in Brussels, the Belgian Embassy in New Delhi and the Belgian Consulate in Colombo.

Although Belgium’s Minister of Enterprise and Streamlining Policy, Mr. Vincent Van Quickenborne, was due to lead the delegation, political developments in Belgium have prevented him from making this visit.

The delegation consists of 40 companies (over 50 persons) in the fields of agro-food, machinery, construction, interior, energy, fisheries, gems, information technology, infrastructure, water supply, financial services, textile, tobacco, tourism investments and various trading companies. Most of them are seeking to do business with Sri Lanka for the first time.

Projects of several Belgian companies in the health sector, infrastructure, water supply, water sanitation and waste disposal to the value in excess of 50 Million Euro have already received or are in the process to be approved by the Government of Sri Lanka and many more projects are waiting to be implemented, a press release issued in connection with the visit said.

Sri Lankan Exporters Should Make Use of Free Trade Deals

20th October 2010, www.lankabusinessonline.com

Sri Lankan exporters are still not making enough use of free trade deals giving duty free or preferential access to big markets, a senior trade official said.

Gomi Senadhera, Director General of the Department of Commerce, said rates of utilisation of key trade deals like the Asia - Pacific Trade Agreement (APTA) and South Asia Free Trade Agreement (SAFTA) were low.

"Utilisation rates are not very high either because exporters are not obtaining certificates of origin from the department of commerce or because the importer is not presenting it and getting duty concessions," he told a forum.

The seminar on free trade agreements was organized by the Spices & Allied Products Producers’ & Traders’ Association (SAPPTA) of the Ceylon Chamber of Commerce.

Senadhera said APTA, previously known as the Bangkok agreement, was becoming more important as it gave exporters like SAPPTA members access to China, India and South Korea.

China's membership of APTA theoretically gives Sri Lanka access to one of the largest markets in the world, he said.

"Under APTA there is a substantially large volume exported without preferences being claimed to China and Korea for which your importer is paying duty when they are entitled to duty free or preferential duty," said Senadhera.

"The rules of origin and other aspects are quite simple," he said. "Its importance today is that we look at APTA largely as a platform for market access with China and Korea."

Although exports under APTA have grown, it was still only about 50 million dollars worth of goods to China, Korea, India and Bangladesh with about 1,800 certificates of origin issued by the commerce department.

"Our utilisation rates are not very high - only around 50 percent," said Senadhera. "It means there's another 50 percent of exports which should benefit and people are not aware of it."

The main products exports under APTA are coir, natural rubber, tea, apparel, rubber products, fish products, activated carbon, floor tiles, and porcelain.

"We must improve exports to China and South Korea," he said. "If we are not using these free trade arrangements exporters should come and see us to find out how best they can use these trade preferences."

Under the South Asia Preferential Trading Arrangement (SAPTA) also total Sri Lankan exports "remains modest," Senadhera said.

Exports have actually fallen to 1.8 million dollars in 2009 from 3.8 million dollars in 2007.

The main products exported are rubber gloves, natural rubber, black tea, bicycle tires, copra, coconut oil, nutmeg, desiccated coconut, activated carbon, coir yarn and coir fibre.

"To China alone we exported last year about 28 million dollars worth of good and to India 13 million dollars worth under APTA," Senadhera said. "Under APTA we exported more to India than under SAPTA."

These trade deals were useful for exporters as a lot of products covered under them are locally produced for the domestic market and therefore eligible for export.

Senadhera said there was a lot of criticism about the free trade deal with India because more products were sent under that deal than under others.

"That's why we don’t hear about other agreements - when you don't export you don;t have problems. Only when goods go and you have to clear them that you have the problems.

"If a trade agreement is successful that should generate problems - no successful trade agreement is without problems."

Sri Lanka GSP trade deal with the United States was also not being used enough.

"There is a substantially large volume exported where exporters do not use GSP," Senadhera said.

"It appears some exporters and importers are paying a few million dollars in duty for which they are entitled to duty free access. We're trying to find out who these exporters are to find out whether they could get the concession."

Related Info :

• South Asian Free Trade Area (SAFTA) - Detailed Information - The Board of Investment of Sri Lanka (BOI)

• Asia– Pacific Trade Agreement (APTA) Formerly the Bangkok Agreement  - Detailed Information - The Board of Investment of Sri Lanka (BOI)

US Road Show in Sri Lanka on Doing Business. Private Public Partnership (PPP) Conference to be Held Today

13th October 2010, www.dailynews.lk, By Sanjeevi Jayasuriya

Sri Lanka will showcase investment and trade opportunities the country could offer for US companies with a series of discussions and visits for potential areas.

“We have 25 foreign company representatives who are currently in Sri Lanka exploring opportunities. There are 17 US companies and 10 Indian based US companies among the visiting delegation,” a Commerce Department official told Daily News Business.

The delegation is led by the Assistant US Trade Representative for Central and South Asia Michael Delaney together with US Government officials.

The peaceful and conducive environment in the country has helped emerging investment and trade opportunities. The delegation visited Jaffna yesterday to gain first hand information on opportunities available. The inauguration of the Private Public Partnership (PPP) conference will be held today with the participation of private sector business executives, representing US companies based in the US as well as India.

There will also be talks under the US-Sri Lanka Trade and Investment Framework Agreement (TIFA) to create awareness to capture opportunities.

The US delegate visit was organized by the Sri Lanka Embassy in Washington with the Commerce Department and the US Embassy in Sri Lanka.

Meanwhile the US Embassy in Sri Lanka, in a press release said the Embassy, together with the US Commercial Service and the US Small Business Administration, is organizing a road show seminar called Doing Business which will visit several locations in Sri Lanka. The first seminar, featuring the Assistant US Trade Representative Michael Delaney, will take place in Colombo on October 15. Subsequent seminars will be held in Galle (October 18), Kandy (October 20) and Trincomalee (October 21).

The improved business climate in Sri Lanka following the end of the ethnic conflict and the opening up of the North and East for trade and investment makes this an opportune time for the business community to learn more about increasing trade between the United States and Sri Lanka. According to the Commercial Director at the US Embassy in Colombo, Ken Kero-Mentz, this is the first Embassy Doing Business seminar that will visit some of the key provinces outside of Colombo.

It will give out valuable information to help expand rural economies and assist small and medium-sized enterprises (SME).

The “Doing Business” seminar will include in-depth presentations by officials from the US Embassy, the US Foreign Commercial Service, and the US Small Business Administration. Sri Lanka’s Export Development Board will introduce the sessions. Each seminar will conclude with a discussion led by a Board member from the American Chamber of Commerce and leaders of the local business chambers.

US technology and knowledge can help Sri Lanka’s companies compete effectively in the today’s challenging international markets.

Speakers at this “Doing Business” seminar will talk about partnering and doing business with US companies and increasing competitiveness in the global economy.

They will also discuss Sri Lanka’s export sector, buying American products as a way to grow Sri Lanka’s economy and the growing importance of SME’s in the global financial system.

The “Doing Business” seminar is expected to attract importers, business people, members of trade associations, manufacturers, and entrepreneurs interested in learning more about how doing business with the United States can help their bottom line.