The significance of ITPO in the Sri Lankan export sector

Daily News /Friday, November 30, 2007

Under the Indo Sri Lanka Free-trade Agreement sign in 1998, the Government of India is under obligation to grant duty free access to all exports from Sri Lanka or in turn of items freely imported to India under the schedule list of item agreed upon.

50% margin of preference for items are allowed as per a schedule period of operation and nothing in the agreement shall prevent any party of taking action and adopting measures necessary for the protection of national security, political, morals or public life.

The agreement is reviewed by a joint committee at ministerial level on the removal of tariff operational within a schedule period the items for export are listed and categorised under the HS Code. Indian Trade Promotion Organization (ITPO) provides a wide spectrum of services on trade and industry, acts as a catalyst for growth of India's Trade.

It is an armed agency of the government of India ITPO approves fostering of International Trade Fairs in India and regulates of holding various expositions within India to avoid any duplication of Trade promotional efforts. More>>

‘Excon 2008’ in Colombo this month

Daily Mirror /Friday, November 30, 2007

‘Excon 2008’ is the annual trade fair of the Chamber of Construction Industry Sri Lanka which is being held for the 5th successive year having commenced in the year 2002 under the distinguished patronage of President Mahinda Rajapaksa, then Prime Minister of Sri Lanka.

This Annual Trade Fair of the Chamber has been designed to enhance capacities and competitiveness of the domestic construction industry by promoting linkages among the industry stakeholders such as property developers, construction contractors, vendors of construction equipment, raw materials and technology in addition to professional service providers. While this event has brought the bigger players of the industry and the SME sector together, it has also brought in the institutional participation of professional organisations such as the Sri Lanka Institute of Architects, Institute of Quantity Surveyors etc. ‘Excon 2008’ will also be used by the Chamber to promote export of construction related professional services from Sri Lanka. With the Chamber of Construction Industry being identified as the focal point having successfully initiated an aggressive campaign to promote construction related services and supplies to emerging markets such as the State of Qatar and established markets like Dubai, ‘Excon 2008’ will record the presence of a large number of overseas participants who are invited to obtain first hand knowledge of the construction industry capacities of Sri Lanka. More>>

To encourage gem and jewellery exporters:

Daily New /Thursday, 29 November 2007

NGJA welcomes concessions to gem and jewellery industry
Chairman, National Gem and Jewellery Authority (NGJA) Hasitha Tillekeratne hailed the proposals introduced by the 2008 Budget to strengthen the local gem and jewellery industry.

The NGJA made representations to the Finance Ministry of the leading trade associations and feels confident that the proposed reforms will convert the gem and jewellery export sector to a US$ 1 Billion industry.

To further develop the lapidary sector, export income arising from gems imported and thereafter cut and

polished and re-exported will be exempt from income tax, which would help Sri Lanka to build a lapidary industry comparable in scale to the diamond manufacturing industry.

To further encourage gem and jewellery exporters, 50 per cent of foreign exchange earnings of such exporters maintained in bank Accounts in Sri Lanka, will be permitted to be used for the import of required raw material. More>>

CCC sets up dedicated unit to assist SMEs

Daily Mirror /Thursday, 29 November 2007

The Ceylon Chamber of Commerce as the leading Confederation of Chambers of Commerce in Sri Lanka has identified the need to actively support the SME sector, as part of its role as the backbone of the country’s economy.

In keeping with this role, the Chamber plans to use its long term experience in offering business development services and closer networking skills with the Government, donor agencies and international organizations to facilitate SME development, which will go hand in hand with the Government’s development efforts.Presently, the Ceylon Chamber of Commerce offers a range of business development services directed at the entire private sector. It has also been implementing several business development projects to assist private sector companies.
These projects have mainly focused on facilitating technology transfers, skills development, market access and the improvement of managerial competence. A large number of SMEs have benefited from the BDS services offered by the CCC and the special projects implemented by the CCC.

Exports increased by 14 per cent - Prof. Pieris

Daily News /Wednesday, 28 November 2007

Hiran H. Senewiratne

Economic development exercises should reach grassroots level to achieve sustainable development throughout the country, the Minister of Export Development and International Trade Prof. G.L. Peiris said yesterday.

"We have to link our local farmers with big businessmen to increase value addition to our local products for the purpose of venturing into export markets, Prof. Peiris said at the Society of Certified Management Accountants (CMA, Sri Lanka) Business Management Conference 2007.

The theme of the event was "Corporate Bottom Line Management".

He said that Sri Lanka is no longer a less developed country and its per capita is US$1350 per annum.

However, as far as the distribution of income and wealth is concerned we cannot be complacency, because Western province's per capita is eight times higher than the other rural areas in the country, he said. More>>

Sri Lanka Apparel launches 'Garments without Guilt' in Europe

Daily News /Wednesday, 28 November 2007

Sri Lanka Apparel launched its "Garments without Guilt" initiative in Europe at the Fatex Fair in Paris recently.

The Garments without Guilt initiative focuses on ethical manufacture and sustainable development assuring the industry's commitment to ethical working conditions, free of child labour, free of forced labour, free of discrimination and free of sweatshop practices.

"Children have no business in our business" is just one of the principles governing Sri Lanka Apparel's industry ethos. The others include providing a better quality of life to the apparel workers through rural poverty alleviation, women's empowerment, education and implementing environmental initiatives minimising damage to the environment. More>>

Ceylon Chamber delegation to Gulf

Daily News /Wednesday, 28 November 2007

President Sri Lanka Agri Business Council and Chairman International Foodstuff Company and Agri Bio Tech, Sarath de Silva will lead a Ceylon Chamber of Commerce delegation to the Gulf shortly.

The first delegation with the Ceylon Chamber of Commerce to the Gulf was very successful and the delegation hopes to follow up discussions made during the last visit. "This mission is to improve joint ventures, increase exports and trade and investment and also look at new targets for tourism," de Silva said. More>>

Paint Manufacturers welcome Cess imposition

Daily News /Wednesday, 28 November 2007

The Paint Manufacturers Association of Sri Lanka (PMASL) commended President Mahinda Rajapaksa for imposing a cess of Rs 75/- per kg on foreign paint imports.

This initiative follows the Paint Manufacturers' appeal to the President, to consider withdrawal of the 5% tax levied on paints at the previous budget of November 2006.

Imposition of the cess will protect local paint manufacturers from low priced inferior paint products that circumvent local statutory levies, which now flood the market and make the prices of local paint products uncompetitive.

The Government also stands to benefit from the cess, since a more competitive local industry would boost government coffers substantially. More>>

SAPPTA pushing for spice production on plantations

Daily News /Tuesday, 27 November 2007

There is a necessity to grow more spices for export to the global markets. This can only be achieved by getting the plantation sector involved in producing spices.

There is a great potential in increasing our exports of cinnamon, pepper and cloves as there is a ready market for these spices in the world markets.

World trade in Cinnamon is around 12,000 to 13,000 tonnes, Cassia is traded to the extent of 65,000 to 75,000 tonnes. An increase in production in Sri Lanka can easily take a good share of the Cassia trade.

World trade in pepper has been around 200,000 to 250,000 tonnes. Sri Lanka's export is less than 4% of the world trade. Sri Lanka could easily market double or even treble the present quantity being exported. More>>

CCI plans to promote overseas constructions

Daily News /Tuesday, 27 November 2007

The Chamber of Construction Industry with the assistance of the Diplomatic Representations of Sri Lanka is undertaking a campaign to promote construction related services and contracting capacities to emerging markets.

This is a pioneering initiative fully supported by the Ministry of Export Development and International Trade and the Ministry of Construction and Engineering Services.

A delegation comprising of Sri Lanka's top quality construction professional service providers and large construction contracting companies led by Minister of Export Development and International Trade Prof. G.L. Peiris and the Minister of Construction and Engineering Services, Dr. Rajitha Senaratne, were to visit the State of Qatar - Doha.

With Sri Lanka enjoying a national image of high quality professional service providers and geographic and language advantages and a reputation for being business friendly and high quality construction could assist the construction community of Doha Qatar in the undertaking of a highly ambitious infrastructure and property development programme. More>>

Canadian expertise for SMEs and Regional Enterprises

Daily Mirror /Tuesday, 27 November 2007

The Ceylon Chamber of Commerce (CCC) signed a memorandum of understanding (MOU) with the Canadian Executive Service Organization (CESO), which has been providing services in Sri Lanka for more than thirty years.

The MOU was signed to expand CESO services to as many companies as possible. CESO is a non-profit, private sector body funded by the Canadian Government and Canadian Trade and Industry. CESO sends mostly retired Canadian consultants to help developing countries.

Presently more than 2,700 distinguished Volunteer Advisers (VAs) are serving on the CESO roster and they are sharing their professional experience by serving as mentors, advisers and trainers. The CESO Sri Lanka office has taken this initiative to have a proactive outreach among regional enterprises and SMEs by signing an agreement with the CCC. More>>

Brewing a global brew - Ceylon Tea Tactics

Daily Mirror /Tuesday, 27 November 2007

Sri Lanka enjoys excellent basic factor conditions for tea production with six major (Nuwara Eliya, Uda Pussellawa, Uva, Dimbulla, Ruhuna, Kandy) and many minor agro-climatic zones, where tea is grown. However Sri Lanka’s nearly 150 year old tea industry is drowning in price competition and is trying very hard to sell a high quality product as a cheap, low quality one. Price as the main competitive strategy is dysfunctional for a product with high quality, at a high cost of production. Trying any harder to compete on price will be the end of the road for the venerable brew.

Packers and exporters in Sri Lanka have used a variety of devices including blending, offering low quality teas, substandard teas, packing overseas, passing on to their customer’s tax etc in a bid to achieve lowest cost producer status. But let’s face the realities of real teas. We can’t compete with the Chinas of the world. We are a high cost specialty tea supplier to the world with less or no potential in a low cost, mass market environment. Therefore we should define our own territory, drive, dominate and defend it. Sri Lanka should be a larger player in a small high value niche that is growing and sustainable and we need a paradigm shift from tea trading to tea marketing and tea delighting. More>>

“Thrust industry” gets raw deal?

Daily Mirror /Monday, November 26, 2007

By Shabnam Farook

The government’s launch of an aggressive plan to revitalize the local footwear and leatherwear industry by making it a “thrust industry,” came in for criticism by manufacturers and exporters who lamented that the space to develop the industry has been restricted.

On the sidelines of the first ever footwear and leather products trade exhibition that got underway at the BMICH on Saturday, local exporters and manufacturers seem apprehensive that the government’s ambitious plans may go up in smoke.

Sarra Os leather (Pvt) Ltd Manager of Merchandising Sanjaya Wijayadharmadasa told the Daily Financial Times that though the industry enjoys the benefits of the GSP+ scheme the road to development was limited.

“It’s true; we enjoy the benefits of the GSP+ scheme which gives us an advantage over other competitors but how can the government even think of developing the industry when there are very few tanneries. That is the root cause of the problem for the industry to lag behind. Without leather; the industry has no opportunity for any kind of development as 80% of the components that are used for production are being imported,” said Wijayadharmadasa. More>>

SMS Holdings awarded SLS product certification

Daily News /Monday, November 26, 2007

SMS Holdings (Pvt) Ltd, a cement based product manufacturer celebrated their achievement of Sri Lanka Standard Institute (SLS) product certification at the Galadari Hotel.

Commencing on 2001 as manufacturers of cement interlocking pavers, the company which started out with a very small investment and with locally replicated machines, has gone on to use imported state-of-the-art machines and has marked significant growth ever since.

Capturing 50 percent of the manufacturing market, SMS Holdings has proved to be the biggest interlocking pavers' manufacturers in the country two years since its inception.

The company has grown to exporting at a considerable scale in 2004. Some of the standardised interlocking pavers which were imported not longer ago is now being manufactured by SMS to cater to the local industry demand. More>>

Lankan stall at International Fair in South Africa

Sunday Times /Sunday November 25, 2007

Seen here is the South African Deputy Foreign Minister Ms. Sue van der Merwe enjoying a cup of Ceylon tea while High Commissioner Anura Rajakaruna stands beside her.
The Sri Lanka High Commission in South Africa took part in an annual International Fair held earlier this month in Pretoria, showcasing Sri Lankan products and cuisine.

The South African Deputy Foreign Minister, Ms. Sue van der Merwe, at the invitation of the Sri Lanka High commissioner Anura Rajakaruna, visited the Sri Lanka Stall and admired the tourist attractions and the products while enjoying a cup of Ceylon tea. More>>

Balance of trade in favour of Lanka:

Exports to Mexico rise

Daily News /Friday, 23 November 2007
Hiran H. SENEWIRATNE

Sri Lanka has the potential to penetrate into the Mexican market. The balance of trade is in favour of Sri Lanka, Ceylon Chamber of Commerce figures show.

Lanka’s exports to Mexico is growing at a rapid pace. The 2005 and 2007 export figures were Rs. 4643 million and Rs. 4871 million.

Sri Lankan imports have increased from Rs. 4643 million to Rs. 4871 million.

Mexico’s Consul to Sri Lanka A Gunasingham said Mexico has liberalised their economy and Sri Lanka has a lot of potential to improve trade ties between the two countries.

He said there is a ready market for spices especially cinnamon in Mexico with potential for increase.

Sri Lanka is also very popular in Mexico for garments also, he said. More>>

Industrial exports increased by 19% - Minister tells Parliament

Daily Mirror /Friday, 23 November 2007

By Kelum Bandara and Gihan de Chickera

Parliament was informed yesterday that the export of industrial products increased to a total of Rs. 422 billion within the first eight months of this year, which was a 19 percent increase compared to the previous year.

A significant contribution was recorded from the footwear industry which saw an increase of 32 percent while apparel exports increased by 11 percent despite high competition in the world market.

Addressing Parliament during the Committee Stage debate on his Ministry, Industrial Development Minister Kumara Welgama also revealed how the export sector had improved. The Minister attributed the growth of food products to investments made by the government in the agricultural sector, adding that Rs.640 million had been allocated in this budget to promote local industries. The Minister pointed out that industries based on natural products should be improved for growth with an indigenous identity. “We have started two programmes to develop the porcelain industry based on proposals put forward by the industrialists. By developing this sector, we are planning to create a stable market for porcelain products, wall tiles and floor tiles in the global market,” he said. More>>

Innovative tea beverage brand HELADIV plucks two buds

Daily Mirror /Friday, 23 November 2007

Receives ISO 22000 accreditation and awarded the Soorya Sinha certification

HELADIV, Sri Lanka’s innovative tea beverage brand has consistently broken the norms to market a traditional beverage in a non-traditional manner within the context of a modern world. HELADIV, the brand owned by the HVA Group, pioneered the concept of Tetra packed Ice Tea to Sri Lanka in 2001 and more recently introduced Ice Tea in PET packaging. With an advanced in-house R&D and quality control laboratory, HVA is currently exploring the commercial viability of tea-based beauty applications for both males and females.

Adding to its many previous accolades, Heladiv was awarded the prestigious ISO 22000 accreditation by Bureau Veritas, Geneva in a ceremony held at its head office recently. Following in close succession to its receipt of the Soorya Sinha Awards from the Mawbima Lanka Padanama, Heladiv is poised to intensify its international and domestic marketing efforts. More>>

Dialog, Ceylon Leather props up Bourse

Daily Mirror /Friday, 23 November 2007

Selling on the rise with high foreign investor interest evident

The market made a significant turnover of Rs.1.4 billion with both indices on the upward swing although value had marginally improved.

The benchmark ASPI was up by 20.92 points to 2598.96 while the MPI was up by 26.41 points to hit 3441.83.

The close to 30 million shares of Dialog traded yesterday pushed up turnover in addition to the Ceylon Glass rights Issue and the Ceylon Leather deal had impacted heavily on market performance.

Moreover there has been much interest shown by foreign investors amounting to over Rs.1 billion. But domestic sales and foreign sales have been over Rs.700 million although there have been relatively less domestic purchases amounting to Rs.437.9 million.Dialog saw 28,974,500 shares got traded at a high of Rs.22 up by 50 cents.One block of 28 million shares got traded at Rs.22. More>>

China opens window of opportunity for Sri Lanka exporters

Daly News /Thursday, 22 November 2007

China has taken a maiden initiative to promote South Asian exports to the Chinese Market by organising the South Asian Commodity Fair which scheduled from December 28 to 30, in Beijing.

The booming economic growth in China has also brought her a fare share of commitment to other nations. As a means of assisting countries particularly those having an adverse trade balance, the Chinese Government has taken measures to encourage global purchasing and investing overseas.

China is now becoming not only a big seller but also a huge buyer as the living standards of the people keep improving.

The South Asian Countries Commodity Fair is primarily aimed at assisting South Asian exporters to penetrate the Chinese market. The venue for the Fair is the prestigious China International Exhibition Centre in downtown Beijing. More>>

High preference for ICT:

UN Forum recognise Sri Lanka’s trade facilitation efforts

Daly News /Thursday, 22 November 2007

Sweden’s Foreign Trade Minister Ewa Bjorling in her keynote address at the 11th UN/ CEFACT Forum of the United Nations Centre For Trade Facilitation and Electronic Business (CEFACT) in Stockholm, Sweden, last month cited Sri Lanka as an example of a developing country that uses Information and Communication Technology (ICT) to facilitate international trade.

She said in Sri Lanka, 90 per cent of the Cargo Manifests submitted by shipping agents to the Customs are being transmitted electronically.

During the technical sessions of the Forum, the Electronic Certificate of Origin (e-CO) introduced by the Ceylon Chamber of Commerce in July 2007 drew much interest among the membership of the Working Group on United Nations Electronic Documents (UN-eDocs).

The UN/CEFACT has a global remit for developing international trade facilitation recommendations and electronic business standards. More>>

Budget 2008 a Bonus to the Private Sector: Jayasundara

Daly Mirror /Thursday, 22 November 2007
By Ravindu Peiris

The private sector is shy to develop because of the security situation in the country, Secretary to the Ministry of Finance and Planning P.B Jayasundara said.

Addressing the Budget Seminar: Path Ahead organised by the Society for International Development (SID) the defence system of Sri Lanka have broken terrorism and that even USA and UK are not safe anymore. Moreover, he said that the country had a serious cost of living issue and that if the country were to grow economically there should be a development in infrastructure and that it should not be confined to Colombo.

‘Colombo has developed immensely by around 9 percent while districts such as Jaffna and Monaragala are lagging behind with a growth rate of about 1-2 percent. However, the country has grown there is no doubt about it. The Ten Year Horizontal Development Framework is not in the horizon anymore’ said Jayasundara.

Further, he stated that the challenge would be to get the growth out of Colombo and spread it visibly throughout the island. According to him, the 2008 Budget is very democratic but complex and that represented diverse ideas with a very heterogeneous character. More>>

Growth in exports in September, trade deficit narrowing

Daily News /Wednesday, 21 November 2007

The economy, which grew by 6.2 per cent during the first half of the year, is expected to yield an annual growth of around 6.7 per cent for the year the Central Bank said yesterday.

This growth would be supported by the strong performance in the telecommunications and port services sub-sectors and recovery in the Agriculture sector.

Exports in September have recorded a growth of 19.2 per cent, benefiting particularly from the impressive performance in the agriculture sector, led by exports of tea.

The rising international commodity prices have caused the import expenditure also to increase compared with the previous month. However, the higher growth in exports over that of imports has led to the narrowing of the trade deficit during the January-September period compared with the same period of 2006.

The Central Bank has thus far been able to achieve its quarterly growth targets for reserve money as well as the indicative target for October 2007. More>>

Business Feature

Daily News /Wednesday, 21 November 2007

Sri Lanka must cross Rs. 100 bn in tea exports:

Position Ceylon Tea to be the cleanest in the world
Rohantha Athukorala

Chairman Tea Advisory Committee

Sri Lanka's tea exports crossed the magical mark of Rs. 80 billion as at end September 2007 which is encouraging at a growth of 18 percent above last year in value.

However, this is due to the supply chain issues driving the prices up, based on demand pull rather than actual stable market conditions of free enterprise as there is supply constraints in the market place.

So in actual volume terms Sri Lanka's market share would have declined in the global market place, resulting in a loss of share in some key markets which needs to be analysed and corrective action taken.

In volume terms the drop of 5.4 percent in comparison to last year's explains whilst the average price per kg of tea has catapulted to a 35 percent growth which would have helped improve the profitability of the industry that is under pressure. More>>

Tea Board goes for online CUSDEC

Daily News /Tuesday, 20 November 2007
Ramani Kangaraarachchi

The Sri Lanka Tea Board will be fully automated its export procedure reducing a significant cost and bringing about operating efficiencies next year.

Chairman Sri Lanka Tea Board Lalith Hettiarachchi announced the exemption of tea board document lodgement fees of Rs 100 per Customs Declaration (CUSDEC) sheet for tea exporters who submit CUSDECs through EDI, online system with effect from November 15. eServices Lanka Ltd has provided technical support.

This process will provide reduction of documentation related lead time and eliminate the need for an exporter to visit Tea Board office for submission and verification of the Customs Declaration forms and related activities giving a number of strategic benefits from EDI online submission.

Apart from elimination of Rs. 100 fee per CUSDEC sheet, acknowledgement of online submission of blend sheet to tea board, online approval of CUSDECs and online registration and approval of CUSDECs within minutes on tea board approval are the other benefits. More>>

Gem and jewellery sector finds new tax scheme refreshing

Daily Mirror /Tuesday, 20 November 2007

The gem and jewellery industry has prevailed that the 2.5% income tax to be charged as proposed in the new budget would create a transparent gem trading process.

The proposal to charge a 2.5% income tax in place of the prevailing income tax based on the value realized from the gem auctions conducted under the supervision of the National Gem and Jewellery Authority, would create a transparent gem trading process in an open market, (NGJA) Chairman, Hasitha Tillekeratne said.

NGJA which spear headed the representations made to Finance Ministry by leading trade associations, feels confident that the proposed reforms will convert the gem and jewellery export sector to a US$ 1 billion industry.

In order to develop the lapidary sector further, export income arising from gems imported and thereafter cut, polished and re-exported will be exempted from tax. This procedure would help Sri Lanka to build a lapidary industry comparable in scale to the diamond manufacturing industry. More>>

Dr.Amunugama meets Chinese investors

Daily Mirror /Tuesday, 20 November 2007

Minister of Enterprise Development and Investment Promotion Dr. Sarath Amunugama met the China investors recently at his ministry to discuss the new investment opportunities in Sri Lanka. Minister Amunugama briefed investors on the current policy of Sri Lanka to promote new investment in various sectors.

Zhai Ruoyu, President and Chairman, Cao Jingshan, Director, Fang Qinghai, Director, Kou Bingen, President of Branch Company, Wei Yuan, President of Branch Company, Jia Bingjun, Secretary of President, Yang Haibo, Chief of International Cooperation of Datang Power Group Company, and Zhou Gang, Executive Director and Vice President, Liu Yan, Director, Liu Yongjun, Project Manager of Datang International Power Generation Company were present at this meeting. More>>

Pepper exporters seek redress

Daily News /Monday, 19 November 2007

Stakeholders of the Sri Lankan Spice industry have sought an assurance from the Ministry of Trade and Commerce here that no caps would be imposed for exports of pepper to India.

Indian traders have contracted 300 tonnes of pepper from Sri Lanka, an exporter said.

India has been importing duty free pepper from Sri Lanka from March 18, 2003, when imports stood at 6,200 tonnes annually.

Over the last two years, it has risen to 7,500 tonnes from 7,000 tonnes.

The Spices and Allied Products Producers’ and Traders’ Associations recommendation was based on the argument that under the Indo-Sri Lanka FTA, applicable since March ‘03, a maximum quantity of around 3,500 tonnes of Sri Lankan pepper finds its way into the domestic market in India annually.

This was against the total quantity of about 7,500 tonnes exported from Sri Lanka to India, it said. More>>

Gem and jewellery maintain growth momentum

Daily News /Monday, 19 November 2007

The gem and jewellery sector has recorded an overall growth of 19 per cent during the first ten months of 2007 in comparison with the corresponding figure of 2006. A detailed break up of exports is given below.

While gem exports have recorded a 11% growth; the export of gem and diamond mounted jewellery have maintained their growth momentum by registering a positive variance of 23 per cent and 18 per cent respectively. Revenue on Service Gem Cutting has suffered a minor setback while processed diamond re-exports have recorded a 22 per cent growth being the top revenue earner in the sector.

The National Gem and Jewellery Authority has made arrangements to organise “Sri Lanka Pavilion” at following international Gem and Jewellery Shows in 2008.

The IJT Show, Tokyo, Japan - January 23 to 26; Bangkok Gems and Jewellery Fair, Thailand - February 27 to March 2; The JCK Show, Las Vegas, U.S.A. - May 30 to June 3; Singapore International Jewellery Show, Singapore - August 21 to 24; Bangkok Gems and Jewellery Fair, Thailand in September, Hong Kong Jewellery and Watch Fair, Hong Kong September 17 to 21; Malaysia International Jewelex, Malaysia November 21 to 24; China International Gold, Jewellery and Gem Fair, Shanghai in November and the Jaipur Jewellery Show, India in December. More>>

Investors mainly looking at trading opportunities:

Market volatile with healthy performance in exports

Daily News /Monday, 19 November 2007

MARKET remained highly volatile throughout the week sliding substantially on Friday with ASPI falling by 16 points, nevertheless managed to close 6.2 points higher for the week.

The ASPI (All Share Price Index) gained 6.2 points or 0.24 per cent at 2625.7 points while the more sensitive MPI (Milanka Price Index) slid 8.9 points or 0.25 per cent to close the week at 3506.7 points on WoW.

Conglomerate JKH generated 14.3 per cent of weekly turnover becoming the key contributor for the week. The stock traded almost 1.6 million shares to generate a turnover of Rs. 213 million. At Friday’s close, the JKH share was up 1.54 per cent WoW to Rs. 132.

Renewed interest was seen in C.W. Mackey & Company which saw an impressive 50 per cent price appreciation, which was also the highest traded stock for the week, with 5.3 million shares changing hands. C.W Mackey share managed to generate a total turnover of Rs. 202 million. More>>

Apparel industry experiencing robust growth - JAAF

Daily Mirror /Monday, 19 November 2007

By Shabnam Farook

Joint Apparel Association Forum (JAAF) President Ajith Dias says that contrary to widespread speculation the apparel industry was not experiencing a downward trend but seeing a robust growth opening up new opportunities for the sector.

He made these statements during the launch of The Sri Lanka apparel marketers’ alumni’s (SLAMA) website “www.srilankaama.com” at the alumni’s second get-together on Friday.

The SLAMA website which was launched by MAS Holdings chairman Mr.Maheash Amalean and JAAF President Mr. Dias entails information on programs available for apparel marketers, a data base for apparel marketers and other useful information about the industry. More>>

US trade concessions sidelined by Human rights concerns

Sunday Times /Sunday November 18, 2007
By Dilshani Samaraweera

Human rights concerns are spilling over into the area of trade, diverting attention from potential trade benefits to the country.
This week, the US ambassador said that concerns about Sri Lanka’s human rights situation have ‘eclipsed’ US attention on providing trade benefits to the country - despite Sri Lanka’s investment in ethical manufacturing. Sri Lanka’s garment industry is lobbying for trade concessions from the US to retain US market share. Earlier this year the Joint Apparel Association Forum, the industry representative body, visited the US to drum up support for trade concessions, mainly based on ethical manufacturing practices. The industry promoted its ethical manufacturing standards through its ‘Garments without Guilt’ campaign. However, Sri Lanka’s human rights image is now encroaching on the area of trade, turning US policy makers’ attention away from trade benefits, to human rights. More>>

Success at FCCISL SME machinery exhibition for second year

Sunday Times /Sunday November 18, 2007

The SME Machinery exhibition organised by the Federation of Chambers of Commerce and Industry of Sri Lanka (FCCISL), held at the BMICH was a resounding success in its second consecetive year.

Speaking at the inauguration of the exhibition Minister of Industrial Development, Kumara Welgama, said the government was keen to develop the rural sector industries and urged the organisers of the SME Machinery Exhibition not to limit it to Colombo but also to hold the exhibition in the provinces for the benefit of the up and coming industrialists in rural areas.

The minister said such exhibitions if held in the provinces would help provincial industrialists.

He said the government was interested in the promotion of provincial industries and were taking steps to open industrial estates in the provinces in a bid to promote provincial industry. “They are hard at work to provide necessary infrastructure facilities to facilitate this rural industrial reawakening and upsurge.” More>>

Garment industry transforming into a fashion industry

Sunday Times /Sunday November 18, 2007
By Dilshani Samaraweera

After decades of assembling garments together, Sri Lanka’s ready made garment industry is trying to transform itself into a ‘fashion’ industry.

On Wednesday, Moratuwa University’s design graduates showcased their creativity at a fashion show at the Galle Face Hotel. This is the third group of students passing out from the university’s Fashion Design degree course that was started in 2001 in collaboration with the London College of Fashion and supported by the Sri Lankan government.

This is also part of the garment industry’s plan to transform itself into a ‘fashion’ industry. More>>

Export promotion begins at home -CBI

Daily News / Friday, 16 November 2007

The recent editorial from CBI news emphasises the need for export promotion agencies to be sensitive on the aspects of country image, marketing and research initiatives.

This is a timely example for the Sri Lanka’s prominent export promotion agency the Sri Lanka Export Development Board at the threshold of making arrangements for the next Presidential Export Awards Ceremony to recognise the services of domestic exporters.

The editorial further emphasises to find for better results in exports for economic development by focusing on the export effort on a national business climate rather than making all the effort to penetrate the international market.

The work programme launched by the Sri Lanka Export Development Board towards activities to enhance the supply base is in agreement with the thinking advocated by the CBI recently. More>>

Go for green products, eco-friendly strategies - US Ambassador

Daily News / Friday, 16 November 2007
Tamara Nissanka

United States will work with the Sri Lankan apparel industry as a strong friend and a partner, US Ambassador to Sri Lanka, Robert Blake said at the annual general meeting of the Sri Lanka Apparel Exporters Association (SLAEA) in Colombo on Tuesday.

“The apparel industry represents country’s fully pledged manufacturing success. It also shows the potential for the other industries. Apparel industry plays a vital role as a domestic industry for jobs,” he said.

He added that the workforce consisting mainly of rural women proves them with many opportunities. He also commended Sri Lanka’s potential to attract high-end brands from the US and Europe. “

As there is a global inclination towards buying green products, the Ambassador suggested that the industry should look at incorporating eco-friendly manufacturing strategies in order to tap niche markets. More>>

India to export 300,000 tons of soyameal to Lanka

Daily News / Friday, 16 November 2007

Exports of soyameal from India to Sri Lanka are expected to touch 300,000 tons this year, a local importers body said here on Thursday.

Sri Lankan traders have preferred Indian soyameal even though it costs an estimated 300 dollars a tonne free-on-board as against 235 dollars a tonne available from Argentina.

“We have already received 50,000 tons of soyabean meal from India during the two months ending October and a similar quantity will reach by December from the Indian shores,” K Palaniandy, President of Old Moor Street Traders Association that undertakes large imports from India, told PTI here.

He said the proximity of Sri Lanka from Chennai or Tuticorin ports are factors that weigh in favour of importing soyameal from India rather from other countries. More>>

Surge in export earnings

Daily News /Thursday, 15 November 2007

Earnings from exports surged by 19.2 per cent in September 2007 and reached US$ 725 million, the Central Bank said yesterday.

Agricultural exports grew by 35 per cent bolstered by a 39.9 per cent growth in tea, as a result of both improved prices and higher volumes, the Bank said.

Prices of tea, which have been on an increasing trend from early 2007, increased further, pushing the average price of tea to US$ 3.37 per kg in September.

Industrial exports, which grew by 16.6 per cent, were supported by textiles and garments, food and beverages, diamond and jewellery and rubber based products.

The cumulative export earnings in the first nine months of 2007 were US dollars 5,651 million, recording a growth of 12.6 per cent over the corresponding period last year. Expenditure on imports increased by 24.9 per cent, year-on-year, to US$ 1,006 million in September 2007. More>>

Budget proposals to help sector earnings:

Credit guarantee scheme for gem exporters

Daily News /Thursday, 15 November 2007
Ramani Kangaraarachchi

The Sri Lanka gem and jewellery industrialists are to increase the growth rate up to 20 per cent from the existing 13 per cent through maximising production capacity.

President, Sri Lanka Gem and Jewellery Association Chanaka Ellawela commending the comprehensive and progressive proposals contained in the Budget 2008 in relation to the development of the gem and jewellery industry said the aim of the industry is to reach US $ one billion in export earnings within five years.

He hoped it would not be difficult to achieve this target with the given budget proposals.

He said the objectives of the six proposals are two fold. Firstly to rapidly increase the supply of raw material available to the industry both from domestic and foreign sources and to expand the manufacturing capacity for value addition through cutting and polishing of gems and jewellery manufacture. More>>

Exporters must offer best terms to attract markets - CB Governor

Daily News /Thursday, 15 November 2007
Ramani Kangaraarachchi

“Sri Lanka should strive to align with the international value chain of production, to attract foreign private capital flows and promote intra-regional trade,” Governor Central Bank of Sri Lanka Ajith Nivard Cabraal said.

Speaking at the 10th anniversary celebrations of Trade Finance Association of Bankers held on Saturday, the Governor said Sri Lanka has undergone remarkable improvement in its economic landscape during the last three decades , despite many adverse domestic and external shocks.

He pointed out that with continued improvement in living standards across the world, most notably in developing and emerging market economies, world trade is bound to grow significantly in the years ahead.

‘Trade will increase on account of increased demand for consumption goods including consumer durables as well as in relation to investment, particularly construction related activity. More>>

NCE service

Daily News /Thursday, 15 November 2007

At the request of the National Chamber of Exporters of Sri Lanka (NCE)Commercial Counsellor of the Indian High Commission Santosh Jha has consented to address members of the NCE to provide and overview of the opportunities available under the FTA as well to discuss the various issues and constraints that exporters encounter.

The Chamber has decided to open this address to non members as well. It will be held at the Taj Samudra Hotel on Thursday, November 22 at 4.45 p.m. and is offered free as a value added service of the Chamber. More>>

44th anniversary of the Sri Lanka Chamber Of Small Industry

Daily Mirror /Wednesday, 14 November 2007

By Aloy Jayawardene

Sri Lanka Chamber of Small Industry will be celebrating their 44th Anniversary with an ‘Industrial Excellence Award’ ceremony on Thursday November 29th 2007 at ‘Waters Edge.’ The High Commissioner for India, Alok Prasad will be the Chief Guest on this occasion.

The last 44 years have seen the Small Chamber grow from a Small Industries Association to its present stature of a ‘chamber.’ The names of its members who have passed into the halls of fame are many and so are the truly small industries they began. These small to medium sized firms institutions have now reached the zenith of corporate success. Consequently, the institution is no longer an ‘association’ but a ‘chamber’ with the power and capacity to stand shoulder to shoulder with the nation’s industrial leaders.

The Ministry of Industrial Development has prepared a cabinet paper to be presented to Parliament to add to ‘medium’ to their name. Nirupama Rajapaskse, M.P., will move this in Parliament shortly. Thereafter the Chamber will be known as the ‘The Sri Lanka Chamber of Small and Medium Industry.’ More>>

Revisiting China

Daily News /Wednesday, 14 November 2007

China is the third largest country in the world its area being 9,600,000 km to the power two where two thirds of which is mountainous or semi desert and only one tenth is cultivated.

Its population is by far the largest in the world and will reach two billion by the year 2050. At the moment China's child population comprises mostly of male children and faces a severe shortage of girls due to many parents terminating pregnancies of female children.

When the People's Republic of China was established in 1949 its economy was characterised by severe dislocations from decades of war and inflation. The then Government's immediate concerns were consolidation of power, restriction of public order and elimination of widespread unemployment and starvation.

In 1953 the Chinese decided to remould the economy using the soviet central planning method as a model by reducing investment in agriculture and had a five year plan of building up on heavy industry focusing mostly on national defence. More>>

Succession plan at Ceylon Biscuits

Daily News /Wednesday, 14 November 2007

Ceylon Biscuits Limited announced succession plan, outlining the structure, career path, progression and growth of several high level positions reporting to the Main Board have been drawn up to manage the rapid and sustained growth experienced by, the company.

The announcement, came after a high level internal conference that included the group's main board of directors.

Ceylon Biscuits, which emerged market leader with the brand Munchee capturing market leadership in biscuits in 2004, has seen rapid growth with volume share increasing continuously in local and international markets in other categories too, particularly chocolates, cakes and soya products. More>>

Export income to be evenly distributed

Daily Mirror / Tuesday, 13 November 2007

The Integrated Agricultural Farm Project of the Export Development Board has striven to provide a just and reasonable price for export products and also to minimize the unnecessary interventions of middlemen. It also supplies the farmers with irrigational facilities, fertilizer and relevant advice. So said Prof. G.L. Peiris, Minister of Export Development and International Trade at a meeting held at the Mahaweli Agricultural Training Institute at Thelhiriyawa, Thambuttegama where ‘kin ala’ plants and drip irrigation system tool kits were distributed among a select group of 165 farmers from the Mahaweli H zone.

The Integrated Agricultural Farm Project of the Export Development Board was conceptualized by Prof. Peiris and initiated last April with a target population of 200 farmers selected from Galnewa, Meegalewa, Thambuttegama, Eppawela and Talawa areas of the Mahaweli H zone. Under this scheme, Consolidated Business Ltd., a private company, has undertaken to pay a minimum price of Rs. 45 for a kilogramme of ‘kiri ala’ grown within the earmarked 100 acres. Another special feature of this programme was the provision made by the CB Ltd to pay the farmers 80% of the price of the day for ‘kin ala’ at the Dambulla Economic Centre, if the price moves beyond Rs. 50 per kilo.

Speaking further Prof. Peiris said that this programme was formulated within a policy framework that took into account the present needs of the country. Mahinda Rajapaksa’s vision has been to get the maximum benefit from the available resources of the country and channel it towards the strengthening of the economic environment that would ultimately benefit the people, He also said that earning foreign exchange was not the only objective of his Ministry. More>>

CCI to promote construction work in overseas

Daily News / Tuesday, 13 November 2007

Chamber of Construction Industry with the assistance of the Diplomatic Representations of the Sri Lanka is undertaking a campaign to promote construction related services and contracting capacities to emerging markets.

This is a pioneering initiative fully supported by the Ministry of Export Development and International Trade and the Ministry of Construction and Engineering Services. A delegation comprising of Sri Lanka's top quality construction professional service providers and large construction contracting companies led by Minister of Export Development and International Trade Prof. G.L. Peiris and the Minister of Construction and Engineering Services, Dr. Rajitha Senaratne, will visit state of Qatar-Doha during the period November 2 to 5.

With Sri Lanka enjoying a national image of high quality professional service providers and geographic and language advantages and a reputation for being business friendly and high quality construction could assist the construction community of Doha-Qatar in the undertaking of a highly ambitious infrastructure and property development programme. More>>

Shilpa 2007

Daily News / Tuesday, 13 November 2007

The local handicraft exhibition organised by the National Craft Council and the National Design Centre Shilpa 2007 was held at the BMICH from November 9 to 12. There
were 212 stalls from various parts of the country with their specialised products. This included clay products, wooden, leather, brass, and embroidery work and many other
ornamental items.The best products selected will be given President’s Award and cash prizes. Featured here are some of the exquisite and intricate handicrafts at the trade
fair. More>>

Budget 2008 exporters’ reactions mixed

Daily Mirror /Monday, November 12, 2007

The Exporters Association expressing the new budget’s benefits have also highlighted some features that are expected to “stifle growth of the industry” in the future. Mr. Lakshman De Silva, Acting Chairman of the Exporters Association of Sri Lanka made the following comments:

The reduction of Economic Service Charge (ESC) from 0.5% to 0.25% on all exports is most welcome as it is a step in the right direction.

The tax and other benefits to the Gems and Jewelry Industry are positive signals as they will stimulate more exports in this sector.

However, the reduction in the tax holiday to a three year period, may act as a disincentive and may stifle the growth of the Industry in the future. It is also hoped that the proposed increase in the Export licence fee will be kept to a minimum or better still if no burdens are placed on the export sector in order that the export sector remains competitive and bring in much needed foreign exchange to the country. More>>

Tea Industry to be ‘The Tea Nation of the world?

Daily Mirror /Monday, November 12, 2007

Pure Ceylon Tea can be positioned the Cleanest tea in the world !

The Sri Lanka’s Tea industry got a boost in the last years budget with the Economic Service Charge(ECS) reduced to 0.50 per cent, duty waiver on machinery purchased for modernization of factories and removal of VAT on electricity charges that sure conveyed that the industry is finally on track to become a 150 billion rupee industry within the next ten years but this strategy was short lived as the December 2006 wage hike alone cost the industry a staggering Rs.3 Billion that resulted in the Regional plantation company’s average Gross Profits dipping to a 12.2 percent and Net Profits reaching a 3.3 percent. With the recent unplanned wage hike meant to cushion the cost of living increase, will cost the RPC’s another Rs.2.9 billion rupees that will drive a typical RPC to the wire and may be even make the total industry not financially viable. This raises the question as to wheather the proposition of Sri Lanka becoming – The Tea Nation of the world, coming under threat.

On the total export of rupees 91 billion the Sri Lanka’s value added Teas which were at a dizzy height of forty eight percent of the total exports in 1997, dropped to 36.2 percent in 2006 said Rohantha Athukorala the Chairman of the advisory committee set up to increase value Added teas under the Industrial Development Board(IDB). In order to drive this segment harder, a team was put together of Industry Experts representing all stakeholders, that resulted in the Tea sector getting a fillip with the Industrial Development Board teaming up with the Sri Lanka Tea Board where an innovative solution by way of pooling of funds a Rs.70 million was raised for the purchase of a Liquid Chromatograph Mass Spectrometer that can check quality of tea for ingredients, flavours and chemical residue including pesticides so that Sri Lanka can enter the global markets that are stringent on quality as well as increase the competitiveness of the value added tea’s of Sri Lanka globally. Sri Lanka can now position our teas to be ‘Cleanest Tea in the World and become the Tea Nation of the world”said Athukorala. More>>

Productivity and Wages in Sri Lanka

Daily Mirror /Monday, November 12, 2007

At a seminar immediately after the budget, the Secretary of the Treasury and Ministry of Finance Dr. Jayasundera commented on how much the apparel industry was doing for the economy and was critical of the contribution of the Plantation sector which he said was lagging far behind in terms of its contribution to the economy.

In fairness to the Plantation Companies it must be said that in comparison to the Apparel Industry it has seen very little support from the State and perhaps a lot of interference from it.

For example, whenever there is a dispute in the Plantation Sector, the very highest in the land does not delay to get involved and labour costs which are about 55-60% of the cost of production are raised purely to satisfy political interests as happened a few weeks ago. Working capital is always a huge concern for the Plantations and daily wages could be a killer and this has been pointed out to the powers that be, who appreciate the problem, but do little to correct the position, which is heavily weighted in favour of political expedience, and insensitive to the needs of the industry. Mind you this involvement of the President in bringing about an increase in wages was in the teeth of an existing Collective Agreement, which also means that it creates a precedent and makes nonsense of bargaining, something which the government should be concerned about due to the bad influence it would have on industrial relations in the country overall. More>>

Dipped Products sustains performance in first half 2007-08

Sunday Times / Sunday November 11, 2007

A strong showing by the Sri Lankan manufacturing operations of Dipped Products PLC (DPL) in the first half of 2007-08 has helped Sri Lanka’s global player in the hand protection business to sustain a performance comparable with the first half of the previous year.

The Hayleys Group company which also has a substantial interest in plantations has reported profit before tax of Rs 352.8 million for the six months ending September 30, 2007, on par with that of the corresponding six months (Rs 393.5 million) after discounting an extraordinary income of Rs 37 million accounted in that period as surplus from the acquisition of Hanwella Rubber Products Ltd., (HRPL).

Group turnover for the period reviewed grew 16 per cent to Rs 5.4 billion, bolstered by a 19 per cent growth in revenue and a 14 per cent increase in export volume from the local hand protection manufacturing operations. Profit from hand protection grew 10 per cent, a company statement said. More>>

Sri Lanka's 'Garments without Guilt' campaign launched in Europe

Sunday Times / Sunday November 11, 2007

Sri Lanka Apparel (SLA) launched its "Garments without Guilt" initiative in Europe this week at the Fatex Fair held in Paris.

The Garments without Guilt initiative focuses on ethical manufacture and sustainable development assuring the industry's commitment to ethical working conditions, free of child labour, free of forced labour, free of discrimination and free of sweatshop practices, SLA said in a statement.

Sri Lanka Apparel is the public face of the Joint Apparel Association Forum (JAAF), which is the apex body of the industry, whose membership represents all of the Apparel and Textile businesses in Sri Lanka."Children have no business in our business" is just one of the principles governing Sri Lanka Apparel's industry ethos. The others include providing a better quality of life to the apparel workers through rural poverty alleviation, women's empowerment, education and implementing environmental initiatives minimizing damage to the environment. More>>

Chambers in mixed reactions over the budget

Sunday Times / Sunday November 11, 2007
By Bandula Sirimanna

Sri Lanka’s chambers of commerce expressed mixed reactions on the 2008 budget claiming that it has no significant, positive or negative developments. President of the Federation of Chamber of Commerce and Industry (FCCISL) Nawaz Rajabdeen said that budget 2008 would bring long term development to the country as it provides more incentives to improve infrastructure facilities especially in the Eastern province.

Welcoming the proposal to grant tax concessions and five year tax holidays for substantial private investments in the Eastern Province he added that his chamber will encourage its membership to enter into public –private sector partnerships to launch infrastructure development projects in the province. More>>

Reduction in ESC welcome - Exporters’ Association

Daily News /Friday, 9 November 2007

The reduction of Economic Service Charge (ESC) from 0.5% to 0.25% on all exports is most welcome, Acting Chairman, Exporters’ Association of Sri Lanka Lakshman de Silva said.

He said that it was a step in the right direction.

The tax and other benefits to the gems and jewellery industry are positive signals, as they will stimulate more exports in this sector.

However, the reduction in the tax holiday to a three-year period may act as a disincentive and may stifle the growth of the Industry in the future.

It is also hoped that the proposed increase in the export license fee will be kept to a minimum or better still if no burdens are placed on the export sector in order that the export sector remains competitive and bring in much needed foreign exchange to the country. More>>

Proposed automation of the Colombo Tea Auction

Daily News /Friday, 9 November 2007

The first Tea Auction in Colombo was held on July 30, 1883 in the offices of Somerville & Co., down Queen Street now renamed Janadhipathi Mawatha. At that time there was much criticism and opposition to this attempt by Somerville & Co. to create a new avenue for the marketing of Ceylon Tea.

Prior to this, Ceylon teas were shipped to the London Tea Auction or sometimes directly to overseas buyers, many of whom had an interest in the plantation industry. Even on the day of the first Auction there were several questions asked and consequently the Auction commenced later than scheduled.

The Auction itself was only modestly successful with only one lot of Kabaragala un-assorted tea selling for cents 45 a pound whereas the other four lots remained unsold due to either lack of bids or due to bids received not meeting the Broker’s expectations.

Notwithstanding this disappointing start Somerville & Co. and the other brokers persisted and were able to conduct auctions on a regular basis from 1885. More>>

Policy consistency hailed:

National Chamber welcomes positive budget

Daily News /Friday, 9 November 2007
Ramani Kangaraarachchi

The National Chamber of Commerce of Sri Lanka (NCCSL) welcomes the budget proposal 2008 as a positive but challenging one as it aims to reduce the fiscal deficit to 7 per cent of GDP.

President NCCSL, D. Eassuwaren addressing the media at the Chamber said this will require strong fiscal discipline. He noted that there is policy consistency in presenting this budget.

He appreciated the fact that the budget has not placed additional burdens on the public despite the increased expenditure on national security and accepted that it was not possible to extend significant additional concessions by way of reduced tax in the current scenario including the prevailing political realities. More>>

Foreign earnings a top priority in budget 08 - Amunugama

Daily Mirror /Thursday, November 08, 2007

The value of investment goods such as machinery, equipment, building material etc. have increased from US$5,300 to around US$7,500 million underscoring that there is sustained investment on economic development and exports.

By Kelum Bandara and Yohan Perera
Minister of Enterprise Development and Investment Promotion Dr. Sarath Amunugama yesterday welcomed the budget saying that it is directed at increasing foreign earnings the country was desperately starved for.

Speaking to journalists after the budget speech yesterday, Dr. Amunugama said the proposals that were introduced were very important as the country’s foreign earnings were barely enough for the country to settle its thumping oil bill.

According to budget estimates, foreign income has increased by 10 - 12 percent while agricultural exports increased by 9 percent and industrial exports also saw an increase of 9 percent. More>>

‘IMEXPRO 2008’ commands wide attention

Daily Mirror /Thursday, November 08, 2007

A much-looked forward to event on the trade calendar, ‘IMEXPRO 2008’ is organized by the Ceylon Chamber of Commerce in association with the Ministry of Foreign Affairs, The Ministry of Trade, Marketing Development, Co-operatives and Consumer Services, The Ministry of Export Development and International Trade, The Board of Investment of Sri Lanka, The Export Development Board and the Srilankan Airlines Ltd.

HSBC is the Platinum Sponsor of IMEXPRO 2008 along with the SAARC and Trade Promotion Projects implemented jointly by the Ceylon Chamber of Commerce and the German Technical Cooperation (GTZ) on behalf of the German Federal Ministry for Economic Cooperation and Development BMZ.

With 12 trade delegations already confirmed as participants, and several more in the process of registering, the organizers are keen to see as many local and foreign participants make use of this opportunity to promote their products and services. More>>

Children have no business in apparel business

Daily Mirror /Thursday, November 08, 2007

Sri Lanka Apparel launched its "Garments without Guilt" initiative in Europe today at the Fatex Fair held in Paris.

The Garments without Guilt initiative focuses on ethical manufacture and sustainable development assuring the industry's commitment to ethical working conditions, free of child labour, free of forced labour, free of discrimination and free of sweatshop practices.

"Children have no business in our business" is just one of the principles governing Sri Lanka Apparel's industry ethos. The others include providing a better quality of life to the apparel workers through rural poverty alleviation, women's empowerment, education and implementing environmental initiatives minimizing damage to the environment.

Sri Lanka's Apparel Industry, dynamic and forward moving with over 30 years experience, has been at the forefront of industrial excellence and social responsibility in Asia, conforming and complying with the norms of ethical sourcing backed by strong legislation. And over the past decade as the global interest focused on how, where and by whom products were made, Sri Lanka Apparel was already ahead of the curve putting their own inherent ethical thinking into practice. More>>

Durra Easykits: re-useable and eco-friendly building kits

Daily Mirror /Thursday, November 08, 2007

Durra Easykit is yet another innovative creation from the award winning construction giant International Construction Consortium Ltd (ICC) and the “Durra Easykit” technology which was innovated by Ortech Industries (Pvt) Ltd In Australia from the raw material Paddy and Wheat straws. Durra Easykits are pre-engineered semi permanent building kits which are tailored for the needs ranging from emergency shelter, Site offices to Worker quarters.

The completed housing units are aesthetically pleasing, Fire resistant and with high levels of both Noise and Thermal insulation qualities.

In comparison with traditional building techniques, the Durra Easykit system offers many advantages in construction techniques, Materials, economy and time.

Durra Easykit office and barracks have been installed island wide for many construction projects as it is the only solution for quick mobilization problem faced by the contractors. It is envisaged that this would be a profitable investment for their mobilization process as Easykit is reusable. More>>

Conference on US GSP export duty concessions

Daily News/ Wednesday, 7 November 2007

A video conference, organised by the Ceylon Chamber of Commerce, jointly with the Department of Commerce, Ministry of International Trade and Export Development and the Office of the United States Trade Representative, will provide an ideal opportunity for the Sri Lankan exporters to learn about the duty concessions available to them under the US GSP Scheme.

The video conference will be held on November 19, from 5.00 p.m. to 7.00 p.m. at the Distance Learning Centre. The U.S. Generalised System of Preferences (GSP) provides preferential duty-free treatment for 3,400 products from 134 designated beneficiary countries and territories.

Sri Lankan exporters face increasing competition in the international market from other low cost suppliers such as China and India. Given the high cost of production incurred by Sri Lankan manufacturers, the GSP concessions assist in improving the price competitiveness of Sri Lankan products in the U.S. market, and thus must be made use of to its full potential. More>>

Lanka launches 'Garments without Guilt' in Europe

Daily News/ Wednesday, 7 November 2007

Sri Lanka Apparel launched its "Garments without Guilt" initiative in Europe yesterday at the Fatex Fair in Paris.

The Garments without Guilt initiative focuses on ethical manufacture and sustainable development assuring the industry's commitment to ethical working conditions, free of child labour, free of forced labour, free of discrimination and free of sweatshop practices.

Sri Lanka's Apparel Industry, dynamic and forward moving with over 30 years experience, has been at the forefront of industrial excellence and social responsibility in Asia, conforming and complying with the norms of ethical sourcing backed by strong legislation.

And over the past decade as the global interest focused on how, where and by whom products were made, Sri Lanka Apparel was already ahead of the curve putting their own inherent ethical thinking into practice. More>>

International Retail Consultancy Services now in Sri Lanka

Daily News/ Wednesday, 7 November 2007

Local media management and marketing services company, Vanguard, has joined forces with UK based retail consultancy, Shopworks, to offer a retial design and shop-fitting services to retailers and manufacturers throughout Sri Lanka.

This affiliation offers an exhaustive menu of services to Sri Lankan retailers and manufacturers including, Retail Planning and Design, Consumer Research relating to retail environment, Category Management and Performance Tracking. Vanguard, which is well known for its involvement in Broadcast Television through Etv offers a variety of marketing services to a broad clientele in Sri Lanka including Television Programming and production, digital marketing and new media, experiential marketing and retail activations.

Shopworks offer retail consulting services to a broad clientele of retailers and manufacturers worldwide, from Western and Eastern Europe through to the Middle East, Far East, India and Australasia. revealed at a conference held. More>>

Sailing despite rough weather:

Daily News/ Wednesday, 7 November 2007

Aitken Spence turnover tops Rs. 12.5b
Managing Director, J M S Brito

Aitken Spence released its second quarter financial results to the Colombo Stock Exchange on yesterday, reporting a Rs 1.24b as profit before taxation and Rs 757.3m profit attributable to the shareholders during the first six months of operation, a growth of 18.7 per cent and 16.5 per cent respectively, compared to last year.

Group Turnover has increased significantly by 33.4 per cent to Rs 12.5 b up from Rs 9.4b last year.

Sri Lanka's hotel industry is yet suffering from the political and economic situation in the country. Whilst dealing with these adversities to a certain extent, this quarter's performance has improved slightly with an increase in occupancies of the local hotels. More>>

Dipped Products sustains performance in first half

Daily News/ Wednesday, 7 November 2007

A strong show by the Sri Lankan manufacturing operations of Dipped Products PLC (DPL) in the first half of 2007-08 has helped Sri Lanka's global player in hand protection business to sustain a performance comparable with the first half of the previous year.

The Hayleys Group company which also has a substantial interest in plantations has reported profit before tax of Rs. 352.8 million for the six months ending September 30, 2007, on par with that of the corresponding six months (Rs. 393.5 million) after discounting an extraordinary income of Rs. 37 million accounted in that period as surplus from the acquisition of Hanwella Rubber Products Ltd., (HRPL). More>>

Customs nets marked revenue

Daily News/ Wednesday, 7 November 2007
RASIKA SOMARATHNA

The Department of Customs has netted in Rs. Two billion as revenue for the year 2006, by enforcing revenue and social protection laws to apprehend violators of Sri Lankan Customs provisions.

The Director General of Customs Sarath Jayathilake presenting the Intelligence Insight-2006 report to the Minister of State Revenue and Finance Ranjith Siyambalapitiya yesterday said that the report included comprehensive details regarding the last year Customs investigations. According to the Director General Jayathilake, 72 per cent cases of under valuation in imports from Dubai and China taking precedence. More>>

Ceylon Glass anticipates bullish ambience in Lanka

Daily Mirror/ Wednesday, 7 November 2007

By Sunimalee Dias

In a fast moving world where developments have created options for the glass industry to concentrate on its manufacture in the Asian markets than the Western ones, the local industry is also looking good. However, certain glitches do affect the industry as pointed out by Ceylon Glass Company Chairman, Vijay Shah during the Vis-à-vis interview with the Daily Financial Times on Monday.Following are excerpts of the interview with the visiting official who was in town for just a day to meet shareholders at the company’s EGM held that day in order to ensure the Rights Issue of Rs.752 million approved fund in part, the company’s expansion plans at their new Horana plant.

How is the industry performing globally and what markets are available?

The global markets are growing extremely well. There is some capacity shrink in Western markets, so it’s easier to grow in emerging markets. There’s a revival for glass with environmental conservation a top concern. That’s creating a positive impact. According to analysts, growth rates are at 3-5%. That’s very good growth and it includes the developing markets as well. More>>

Concessions for Lanka in FTA with Pakistan

Daily Mirror /Tuesday, November 06, 2007

While these concessions were given for external trade with Pakistan, import and export licence fees were increased from 1% to 2% of the import and export values and a fixed rate of Rs.1, 000 was introduced for all essential imports

By Kelum Bandara and Yohan Perera
As part of its annual duty concessions for exports under the Free Trade Agreement signed with Pakistan in 2005, Parliament yesterday passed a bill while passing another to increase export and import licence fees.

The export duty for 26 items including betel leaves, apparels and tea was cut by 34% during the first year starting from 12th July 2005 and is being reduced gradually each year. In addition to this the selected negative list of imports from Pakistan would be made duty free by the year 2010. While these concessions were given for external trade with Pakistan, import and export licence fees were increased from 1% to 2% of the import and export values and a fixed rate of Rs.1, 000 was introduced for all essential imports. The increase has been done in accordance with a resolution under Section 10 of the Customs Ordinance. More>>

Lanka plans business liaison office in Doha

Daily Mirror /Tuesday, November 06, 2007

04/11/2007(MENAFN - The Peninsula) DOHA - The Sri Lankan government is planning to open a liaison office in Doha to step up efforts to bring more Sri Lankan construction companies to Qatar.

A 30-member Sri Lankan delegation representing the construction industry in the country is currently visiting Qatar. The team is led by the Minister of Export Development and International Trade Professor Gamini Lakshman Peiris and the Minister of Construction and Engineering Services Dr. Rajitha Senaratne.

Talking to The Peninsula yesterday, Senaratne said the high-profile visit was part of the Sri Lankan government's efforts to involve more companies from the country in the booming construction sector in Qatar. The delegation will also visit Dubai. More>>

New BOI investors in housing and garment sectors

Daily Mirror /Tuesday, November 06, 2007

The Board of Investment of Sri Lanka signed agreements for two new projects recently that involve a housing and apartment complex and a garment factory. Chairman/Director General of the BOI, Dhammika Perera signed the agreement on behalf of the BOI. The projects include Star Asia Properties (Private) Limited which signed an agreement that covers a Singaporean investment for the construction of housing units and an apartment complex. The project is an investment of Rs.600 million. The investors involved are Tjio Siang Min and Wendy Sulaiman. The Chairman M.Y.M Nassar and CEO Sabry Mohamed signed the agreement on behalf of the company. The investor expressed satisfaction with the way the BOI processed his application. The project will provide employment for 30 workers and involves the construction of 266 individual houses at Kohilawatta off Avissawella for middle-income groups. The apartments, which will be in an 8-story condominium, are for high-income groups. These will be built at Colombo 6. More>>

High yields from coconut this year

Daily News /Tuesday, November 06, 2007
Ramani Kangaraarachchi

The income from coconut and coconut products export has increased by 33 per cent compared to last year according to Coconut Development Authority.

The income from exports last year was Rs. 13,894 million and this year it has recorded an income of Rs. 18,500 million.

Assistant Director Marketing and Development (CDA), V. Balakrishnan said the conducive market environment and shortfall of production in other countries had been the main reasons for this positive situation. Increase of vegetable oil prices has also affected positively towards this.

The export of DC coconut production also has increased by 23 per cent compared to last year. The increase in coconut production was one factor contributed to this achievement. Coconut production last year was 2785 million nuts and this year up to now it has recorded as 2,900 million nuts, Balakrishnan said. More>>

Doing business in China

Daily News /Tuesday, November 06, 2007
Prasanna Perera, Marketing and Management Consultant, Chartered Marketer, CIM U.K.

Usherers wait for guests to arrive for the Bandi Panda Fashion show at the annual China Fashion Week in Beijing. China’s fashion industry is putting the accent on producing high-end fashion apparel — not the cheap-labour mass-produced gear generally associated with made-in-China goods.
AFP

China is the largest and most spectacular story in the world. In a relatively short period of time, a country perceived as a struggling economy, has now emerged as an economic power house and a leading global player.

If your organisation is looking at reducing the cost or expanding beyond the local market, flirting with China is a must.

China is not a homogeneous market of 1.3 billion people. Local knowledge is critical for success. China is made up of a series of diverse regions of varying levels of development and peculiarities.

In addition, the large provinces (the size of nation states) contain an array of local markets, all with their own business practices, traditions, methods of local protectionism and degrees of entrepreneurship. More>>

Notable trade imbalance with China discussed

Daily Mirror /Monday, November 05, 2007

Prof.G.L.Peiris, Minister of Export development and International Trade, had bilateral discussions with Mr. Yi Xiaozhun, Vice Minister of Commerce of China, in Goa on the sidelines of the Second Ministerial Meeting under the Asia-Pacific Trade Agreement (APTA) in Goa.

The Ministers discussed the trade relationship between Sri Lanka and China, and noted the significant trade imbalance in China's favor.

The Chinese Minister of Commerce indicated that his government would intend its fullest co-operation for the implementation of measures to reduce the existing imbalance.

A particular focus in the talks was on the export of Sri Lankan tea to china, and practical steps to expand trade in this field. More>>

Proposed automation of the Colombo Tea Auction

Daily Mirror /Monday, November 05, 2007

The first Tea Auction in Colombo was held on 30th July 1883 in the offices of Somerville & Co., down Queen Street now renamed Janadhipathi Mawatha. At that time there was much criticism and opposition to this attempt by Somerville & Co. to create a new avenue for the marketing of Ceylon Tea.

Prior to this, Ceylon teas were shipped to the London Tea Auction or sometimes directly to overseas buyers, many of whom had an interest in the plantation industry. Even on the day of the first Auction there were several questions asked and consequently the Auction commenced later than scheduled.

The Auction itself was only modestly successful with only one lot of Kabaragala un-assorted tea selling for cents 45 a pound whereas the other 4 lots remained unsold due to either lack of bids or due to bids received not meeting the Broker’s expectations.

Notwithstanding this disappointing start Somerville & Co. and the other brokers persisted and were able to conduct auctions on a regular basis from 1885. More>>

Apperal industry already exceeds:

Daily News /Monday, November 05, 2007

More sectors can hit 1b target soon

Sri Lanka has many businesses that can reach the US$ one billion mark apart from apparel sector and with government assistance there are many other ventures that can reach to this mark.

Speaking at the Aeturnum Lanka first anniversary celebrations in Sri Lanka, the Minister said that tourism is already generating around 450 million and is can easily reach the US$ million mark.

Sri Lanka was ahead of both India and the Maldives in tourism a few years ago. However, both these courtiers have surged ahead of Sri Lanka by over 20 to 30 per cent. The security situation in the country also put a check on the tourism industry, he said.

Dr. Amunugama identified the gem and jewellery and the diamond export sector as a lucrative money-spinner and that can also be converted to a US$ one billion industry. The sector has already in generation around US$ 500 million. More>>

Organic food for the world

By Feizal Samath, Pic by J. Weerasekera.

Sunday Times /Sunday November 4, 2007

A worker holds nutmegs at the Bio Foods factory.
A small village community in Matale produces tea packs made out of reed under a regular Rs 2 million monthly contract -- in a-too-good-to-be-true story -- thanks to the efforts of Bio Foods (Pvt) Ltd.

The Kandy-based company founded by former Tea Research Institute (TRI) Scientist Dr Sarath Ranaweera is Sri Lanka’s biggest organic food producer and amongst the best in the world with turnover this year likely to reach 5 million Euros (Rs 800 million).

“We have been in the 3-4 million Euros turnover region and want to top 5 million in 2007,” noted Ranaweera, at his hillside office in Kandy.

Ranaweera, who has opened the doors to the world for many small producers and budding entrepreneurs in Kandy and Matale districts, says the reed basket producers churn out some good quality products and “they get a decent income”. Almost all their products are purchased by Bio Foods, a company that has maintained a low profile here but is well known in Europe. More>>

Talawakelle Tea shows rise in revenue

Sunday Times /Sunday November 4, 2007

Talawakelle Tea Estates Ltd, an associate of the Hayleys Group, has reported a revenue of just over Rs. 1.29 billion in the nine months ended September 30, 2007. According to the interim report, gross profit for the company totalled close to Rs.169 million.

The gross profit for the year ended 31 December 2007 was Rs.218,3 million. The net profit for the nine months was Rs.15,636 million as opposed to a net profit of Rs.80,366 million in 2006. More>>

Closer business ties between Holland and Sri Lanka

Sunday Times /Sunday November 4, 2007

‘Holland Day- Building Bridges’ aimed at promoting trade and investment between the Netherlands and Sri Lanka was held in Colombo recently.

This inaugural event was facilitated jointly by the European Chamber of Commerce of Sri Lanka and the Embassy of the Kingdom of Netherlands. Naveen Dissanayake, acting Minister of Enterprise Development and Investment Promotions in his inaugural speech highlighted the importance for Sri Lanka to have a proactive plan in the context of the potential for development latent in most emerging Asian economies. Ferdinand Lahstien, Deputy Head of Mission – Embassy of the Netherlands spoke on Dutch business fortes.

The ECCSL has successfully facilitated numerous business matchmaking projects aiming to encourage and enhance private sector development. Holland Day’s multi sector focus On the Netherlands’ side includes electronics, environmentally sound technologies and the paper and graphic industry. More>>

Rubber – Sri Lanka’s best answer to global warming

Sunday Times /Sunday November 4, 2007

By Dr L M K Tillekeratne, Senior Lecturer,
Dept of Chemistry,
Sri Jayawardhanapura University

It is very clear from the award of the Nobel Prize this year to Al Gore and his team that the main concern of all, especially of the United Nations is global warming, creating natural calamities all over the world. Scientists have predicted that if immedate action is not taken to compensate this, very soon many countries and cities including Amsterdam, Rotterdam, Singapore and Maldives will be submerged in water released to the ocean from the icebergs melting in the northern tip of the world.

Further, severe damage is predicted for plantation crops grown in Asian countries in the future as a result of this excess and unpredictable rain fall.

Already, paddy farmers of Sri Lanka do planting in between Yala and Maha seasons with the late arrival of the South West monsoon rains and face severe problems caused by the inter monsoon rains just at the commencement of harvesting. More>>

Sri Lanka’s rank improved in global competitiveness

Daily News/ Friday, 2 November 2007

Hiran H.Senewiratne

The Global Competitiveness Report reveals that Sri Lanka’s rank has improved where the global competitiveness is concerned registering the 70th position out of 131 countries.

“Last year Sri Lanka was ranked 81 out of the 122 countries. This is a good indication that Sri Lanka is becoming competitive in the global arena,” the Chief Economist in the Ceylon Chamber of Commerce (CCC) Gayathri Gunaruwan said at a seminar. The event was organised by the CCC on the topic `How Competitive is Sri Lanka for Business’.

Gunaruwan said that in the World Economic forum it takes two indices on Global Competitiveness and Business Competitiveness. She emphasized on the Global Competitiveness Index (GCI), which look at macro and micro economic aspects calculated on 100 variables.

According to her GCI looks into 12 main areas in measuring the country’s competitiveness globally and Sri Lanka has done better in certain sectors compared to last year. More>>

Sri Lanka shines at Hong Kong Jewellery and Watch Fair

Daily News/ Friday, 2 November 2007

A record number of exhibitors and visitors at the September Hong Kong Jewellery and Watch Fair - 2007 held from September 25 to 29, propelled the event to unprecedented success. Both exhibitors and buyers reported an increase in business, transactions during the five day show.

The September Hong Kong Jewellery and Watch Fair is acclaimed as one of the world's top three fine jewellery fairs and the biggest jewellery fair in Asia, showcasing a wide range of products from fine finished jewellery, polished diamonds and gemstones, to all varieties of pearls, jewellery timepieces, packaging, displays, as well as jewellery-making equipment, tools and machinery.

The Show had over 2500 exhibitors from 48 Countries/region and 19 National and Group Pavilions representing the broadest range of product categories, the utmost convenience and superior amenities. More>>

Brandix rated country’s first ‘Business Superbrand’ in apparel sector

Daily News/ Friday, 2 November 2007

Sri Lanka’s ‘inspired solution for branded clothing’ Brandix has been accorded ‘Business Superbrand’ status in the apparel sector by the Superbrands Organisation, an independent authority that identifies and pays tribute to exceptional brands around the world.

The rating follows an evaluation by a Business Superbrand Council of 22 eminent corporate sector personalities assigned the task of selecting the 50 best Business to Business (B2B) brands in Sri Lanka from a shortlist of over 100 business brands.

“Superbrand status represents an acknowledgement by our peers in diverse sectors of the success of our efforts to be a total solutions provider to the global giants in apparel,” “In that context, this is a welcome, unsolicited accolade,” Brandix CEO Ashroff Omar said. More>>

President to address gem sector woes

Daily News /Thursday, 01 November 2007

Gem and jewellery traders who met President Mahinda Rajapaksa said they experience a down ward trend in trade.

They specifically pointed out that many industrialists were prone to illegal transactions.

Responding to their issues, the President said he is looking at reducing the 15 per cent income tax to 2.5 per cent.

They also pointed out about 5000 gem miners had emigrated to Madagascar to engage in the trade and requested the President to grant permission to carry a higher amount than at present. A further request was to grant facilities to travel up and down in Mihin Lanka at a reduced air fair.

Considering the requests made by the gem merchants, the President assured that he would take action to appoint a Consul General to Madagascar. The President also advised officials to establish a National Gem and Jewellery Authority branch in Ratnapura to facilitate trade.

The Government will also make arrangements to appoint a new Consul General for Madagascar. More>>

Ual the only insure recognised at NCE awards

Daily News /Thursday, 01 November 2007

Union Assurance (ual) was recognized as one of the best service providers to exporters at the recently concluded NCE Exporters awards. The company secured a bronze award in the “Suppliers / Service Providers to Exporters” under the extra large category.

Assistant General Manager General Insurance, Udeni Kiridena said “We received this award simply because of our valuable customers. Our customers have faith in us and we ensure that our customer gets a superlative service,”

He said that the company’s unique stock throughput policy, which is especially beneficial to the tea and garment industries, gave them an edge over the other service providers.

This insurance policy provides cover from arrival of the raw material to the port, until the finished product is delivered to the buyer.

This has gained in popularity among the leading exporters and importers in Sri Lanka. More>>

Aeturnum Lanka to invest US$ 1m

Daily News /Thursday, 01 November 2007

Aeturnum Lanka will invest over US$ one million next year for their future expansion programme in Sri Lanka.

US based Chief Executive Officer, Aeturnum, Rajat Bhakhri said they are happy with the first year activities in Sri Lanka.

“In fact it’s far better than our operations in Bangalore and we will now be shifting more operations to Sri Lanka from the Indian State,” he said. Speaking at the first anniversary celebrations at the Cinnamon Grand Hotel last morning he said they have nearly 50 employees and with additional business they would be increasing their employees to 150.

He said the high literacy rate and the dedicated workforce are some of the key attractions in Sri Lanka.

Aeturnum Inc, headquartered in Westford, MA has been providing software development and IT consulting services to North America since 2001 and initiated operations in Sri Lanka in November 2006 as part of its global expansion initiative. More>>

 

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