Archives Trade News

Dankotuwa lures Lahore market with fine tableware

Daily News /Tuesday, 31 July 2007

Dankotuwa recently participated in the “My Karachchi” Exhibition organised by the Export Development Board in Karachchi, and created a huge wave of excitement. This was followed up with a special Exhibition and sale of its products in Lahore and all the exhibited products were snapped up by customers. Pakistan customers were fascinated by the quality and rich decorations of Dankotuwa products, and the first shipment to Lahore will be despatched in August.

“The Lahore customers were very impressed with the high quality of our products, and the very fine and intricate detail of our rich decorations. Although many imported brands were available many customers preferred our designs as they were more in line with their taste” said Poorna Pemasena, Manager, International Marketing.

Dankotuwa has already selected an Agent who will shortly open an exclusive retail shop in Lahore. He was in Colombo recently to study display techniques and other merchandising methods. He has expressed very high optimism that with growing prosperity in the country the demand for this type of high end Porcelain tableware will increase.More>>

Exports to Malaysia rise

Daily News /Tuesday, 31 July 2007

Hathoon Sheriffdeen

EXPORTS: The Sri Lanka-Malaysia Business Council is working on promoting business within both countries. Records reveal that exports from Sri Lanka to Malaysia have increased by 102 per cent in 2006.

According to Sri Lanka-Malaysia Business Council records exports to Malaysia in 2006 was Rs 2562 m.

Export of cloves worth Rs 848 m. for 2006, is the highest item exported to Malaysia from Sri Lanka, which is 33 per cent of the total exports to Malaysia in 2006. Imports in 2006 from Malaysia to Sri Lanka has also increased by 35 per cent to Rs 44,992 million. This shows the exploration of trade and investment within both countries.More>>

CDA steps into resurrect coconut oil industry

Daily News/Monday, 30 July 2007

COCONUT OIL: In Sri Lanka we had in operation about 50-60 medium and large scale coconut oil mills until early 80s and we manufactured about 130,000 tonnes of coconut oil per annum.
In early days our local vegetable oil consumption was entirely met by locally manufactured coconut oil, Coconut Development Authority states.
However in 2005 the survival of this industry was limited to 20,000 - 25,000 tonnes of oil extracted mainly from baby expellers and few medium and large scale mills. Today most people depend heavily on imported palm oil and other vegetable oils for their daily requirements.
We import about 200,000 tonnes of various kinds of oils for local consumption with the expense of large sum of foreign exchange and often marketed under the name of coconut oil after adulteration.
Although the health benefits derived from coconut oil is unrivalled and unmatchable with other vegetable oils. Facts about coconut oil were concealed by financial power and unethical propaganda by western countries due to their vested interest in their own products. More>>

Tea surveillance

Daily News/Monday, 30 July 2007

TEA: This week’s Colombo Auction traded a quantity of 5.4Mkg with the Ex-Estate teas contributing 0.76Mkg to the sale.
An overall good demand was witnessed in the Tippy’s market driven by strong buying from Iran. Exporters to Saudi Arabia, Turkey and Dubai were also active whilst buyers representing the CIS remained moderately interested.
In the Leafy segment, Pekoe grades hit a record-breaking five dollar mark with OP’s and OPA’s gaining Rs. 15-20 from last week. Similarly, other low-grown Leafy teas also met with strong demand.
Consequently, some of the Turkish and Syrian buyers are now turning towards OP’s and OPA grades due to the high price of the Pekoe grades. This observation would suggest that the Leafy market is guaranteed to remain strong into the near future. More>>

A study on international trade, transport

Daily News/Monday, 30 July 2007

TRAINING: The first training module conducted by the Academy for International Trade and Transport-AITT and the Bandaranaike Centre for International Studies-BCIS was launched recently at the BCIS.
The inaugural session was conducted by the chief of transport of the UNESCAP Geetha Karandawala who came to Sri Lanka to overlook the progress made by AITT as the institution was created with the fullest backing of the Bangkok based UNESCAP which celebrates 60 years in 2007.
The first step towards setting up the academy was initiated by the Chairman of the Sri Lanka Freight Forwarders’ Association (SLFFA) Niral Kadawatharatchie in September 2006 when he attended the FIATA World Congress in Shanghai and following his discussions at this forum, a Training of Trainers programme (TOT) was conducted by UNESCAP in Colombo in January 2007.More>>

Three BOI projects worth over Rs. 630 million

Daily News/Monday, 30 July 2007

AGREEMENTS: The Board of Investment of Sri Lanka (BOI) signed agreements last week for 3 new projects worth over Rs. 630 million. The total employment generation from these three projects would be over 1,000.
The agreement signed between Stirling Group Lanka Intimates and the BOI was for a project to manufacture readymade garments for the export market. The products manufactured will cater mainly to upmarket clients from the US and UK.
Another Foreign Direct Investment (FDI) of US$5.2 million from the United Kingdom will have a labour force of over 900 employees. The project will be located at the Biyagama Export Processing Zone. More>>

FCCISL - Regional Chambers to mobilise entrepreneurs through Nucleus

Daily News/Monday, 30 July 2007

MOU: The FCCISL signed MOUs with the Regional Chambers in the Central Province to implement the Nucleus Approach in the central region. The event took place recently at the Nucleus Entrepreneur Foundation (NEF) office in Kandy.
The NEF will provide the technical support necessary for the expansion of the Nucleus programme through the District Chambers of Commerce spread throughout the country.
Secretary General of FCCISL Samantha Abeywickrama signed the MOU on behalf of the FCCISL and the president of the Central Province Women’s Chamber of Small Industries and Commerce (CPWCIC) Rosita Samarajeewa, the President of the Central Province Chambers of Commerce and Industry (CCICP) Anurudda Warnakula and the President of the National Chamber of Handicraft (NCHSL) M K R Thilakarathna signed on behalf of their respective Chambers. More>>

Garment industry seeking preferential access into the US
By Dilshani Samaraweera

Sunday Times /Sunday, July 29, 2007

Sri Lanka’s garment industry is trying to use newly proposed legalisation in the US to get duty cuts to export to the US.

Previously, to hold US market share and protect thousands of garment factory jobs, Sri Lanka considered a free trade agreement (FTA) with the US. However, this time the garment industry is trying a different tack. Instead of asking for a FTA the industry is looking to capitalise on proposed new laws in the US itself, supported by ethical manufacturing practices in Sri Lanka. In June, industry representatives visited Washington to discuss these possibilities with US business and political representatives.

“Everyone was impressed by our labour and manufacturing standards. A congressman told us it was refreshing to hear of such standards in a developing country. So there is definitely support for us in Washington in the context of promoting ethical trade,” said chairman of the Joint Apparel Association Forum (JAAF) Ajith Dias.

The US is Sri Lanka’s biggest customer for ready-made-garments, buying up over half (around 55%) of total export production.

However, Sri Lankan garments are facing increasing competition in US markets from lower cost Asian competitors. The situation is expected to get worse when restraints on Chinese garment exports are removed after next year.

“China is still restricted in some categories and 5 of these categories are key categories for Sri Lanka, accounting for most of our exports. These include lingerie, mens’ pants and knitted T-shirts. So the removal of safeguards on China, in end December 2008, may cause serious disruption to our exports,” said Dias.More>>

Rapid economic growth threatens eco system - Dr. Palitha Kohona

Sunday Observer /Sunday, July 29, 2007

by Lalin Fernandopulle

Developed and developing countries seeking rapid economic growth in recent times have created a huge imbalance in the eco system and if this trend continues over 3.5 billion people will suffer from a severe shortage of water, air pollution and serious health hazards, said Secretary to the Foreign Ministry Dr. Palitha Kohona.

Dr. Kohona was addressing a seminar on Trade, Investment and Sustainable Development on Thursday organised by the Sri Lanka America Society.

He said humans have altered the world's eco system because of their greed for accumulation of resources and as a result of such callous negligence for nature the harmony and eco balance have been severely threatened.

Trade and environmental policies must be reconciled and coordinated. Trade agreements should not be done in isolation of environmental concerns.

Industrial development in the West and the US have totally neglected environmental issues that were highlighted in the Montreal and Kyoto protocols, Dr. Kohona said. More>>

Chinese delegation to help boost apparel and tourism sectors

Sunday Observer /Sunday, July 29, 2007

The business delegation of the China Council for Promotion of Investment and Trade (CCPIT) in Shanghai led by the Chairman, Cen Furong on Tuesday said the Council will support the development of Sri Lanka's apparel and tourism sectors. The Chinese apparel industry is growing fast and it is the main export to the US and Europe.

China will consider outsourcing a certain section of its apparel sector to Sri Lanka and it will be a shot in the arm for the industry, he said.

Minister of Enterprise Development and Investment Promotion Dr. Sarath Amunugama elaborated on the US$ 480 million Norochcholai coal power plant project which will commence in the first week of August. More>>

FCCISL gears up to rehabilitate conflict affected businesses

Daily Mirror /Wednesday, July 25, 2007

On the heels of grand success of the ‘Back to Business’- resurrecting and rehabilitating the business community affected by the devastating Tsunami, the Federation of Chambers of Commerce and Industry of Sri Lanka (FCCISL) now embarks on their other major business oriented humanitarian mission - ‘Rehabilitation of Conflict Affected LMSME (Livelihoods, Micro, Small and Medium Enterprises) that are badly affected by this conflict.
This programme also comes under the “Back to Business’ a component of Business for Peace Initiative (BPI) which is alive to the magnitude and urgency of the situation and it would be activated in the North-East and Bordering Districts.
The FCCISL is launching this much needed humanitarian mission with rejuvenated dexterity as their involvement in the Tsunami affected Back to Business programme has won world acclamation winning the World Award for the ‘Best Unconventional Project’ at the 5th World Chambers Congress held in Istanbul, Turkey, early this month.

It has meticulously carried out surveys in the conflict affected areas utilizing all reliable sources available. For the FCCISL these surveys came handy as they have established their own affiliated Chambers in all the districts in the North and East, even in the uncleared areas like Kilinochchi and Mulaitivu. The survey statistics have been constantly undated going by the conflict situation.

The move is also a giant step forward to establish unofficial peace which is essential to over-run the official conflict situation as whatever the official considerations of conflict, violence and peace, people belonging to all communities, races and religions have been living together, even during the highest conflict situations, throughout the history of Sri Lanka. Through this humanitarian mission, the FCCISL indirectly augments the sporadic peace initiatives that culminate at various points at various times until a permanent peace is achieved. More>>

Global demand for Lankan tea rises

Daily Mirror/Tuesday, July 24, 2007

“In order to comply with the rising demand for Sri Lankan tea both in local and international market land area used in tea cultivation process should be extended to at least 20,000 acres annually,” said Minister of Plantation Industries D.M. Jayarathne. He said this at a meeting held in the Small Tea Estate Development Authority.

The Ministry has implemented new strategic measures to uplift the industry including the introduction of tea varieties with higher productivity and application of advanced technology for all sections of the production process. The Ministry will also facilitate the farmers in solving their problems which relate to the ownership of the lands used for cultivation at present.

Minister has instructed the authorities to lend maximum assistance to the farmers engaged in tea, coconut and rubber cultivation.

The government has deployed a workforce of 35,000 to administer the Government maintained development projects in the agricultural sector.More>>

BOI steps in to boost the local ornamental fish sector

Daily Mirror/Tuesday, July 24, 2007

With the objective of discussing ways to further enhance the local ornamental fish sector, Board of Investment Chairman/Director General Dhammika Perera recently held a meeting with exporters in the local ornamental fish sector.

Several leading exporters and representatives from various associations related to the sector were present at the event. During the meeting, the BOI made a comprehensive presentation to the gathering highlighting features of the local sector’s current positioning in the global arena.

Currently the number of regular exporters ranges between 35-40 and Sri Lanka’s contribution to the global demand ornamental fish stands at 3%. The total value of ornamental fish exports was recorded as US$ 8.5 million in 2006. The Unites States remains to be Sri Lanka’s largest export market for ornamental fish and among the other countries are the United Kingdom, Japan, Germany, France and Italy. The main categories of ornamental fish exported by Sri Lanka are Guppy, Angel, Swordtail, Molly, Platy, Goldfish, Discus, Tetra and varieties of Cichlids. More>>

VPN Steel to introduce roof truss to the Indian market

Daily News / Monday, 23 July 2007

EXPORTS: A supplementary agreement was signed between the Board of Investment of Sri Lanka and VPN Steel Industries (Pvt) Ltd to manufacture industrial building material for the export market.

An investment of US$2 million, the factory will be located at the Makandura Industrial Estate in Pannala. Once the project begins operations, the number of employees will be expanded to 180 and the investment will be raised upto US$ 5 million.

Managing Director of VPN Steel Group S. Nathan said commercial operation is scheduled to commence mid-August and pointed out that the product is the first of its kind to be introduced to Sri Lanka, as well as to the Indian sub-continent.

He stated that VPN has been actively promoting the product in Sri Lanka and it has already been used in the construction of several projects such as hospitals, schools and NGOs. He added that the product is also recommended for the construction of high-rise buildings.

VPN Engineering (Pvt) Ltd is a fully owned subsidiary of VPN Engineering Sdn. Bhd - which has been in operation in Malaysia for over six years.' More>>

BoI steps in to boost local ornamental fish sector

Daily News / Monday, 23 July 2007

MEETING: The Chairman/Director General of the Board of Investment Dhammika Perera held a meeting with exporters in the local ornamental fish sector to discuss ways to further enhance the local ornamental fish sector recently.

CHAIR: Chairman/Director General of the Board of Investment Dhammika Perera chairing the meeting.

Several leading exporters and representatives from various associations related to the sector were present. During the meeting, the BOI made a presentation to highlight features of the local sector’s current positioning in the global arena.

Currently the number of regular exporters ranges between 35-40 and Sri Lanka’s contribution to the global demand ornamental fish stands at 3%. The total value of ornamental fish exports was recorded as US$ 8.5 million in 2006.

The United States remains Sri Lanka’s largest export market for ornamental fish and among the other countries are the United Kingdom, Japan, Germany, France and Italy.

The Chairman requested exporters to present comprehensive details of the problems faced by them so that he could negotiate with the relevant ministries/organisations and resolve the issues. More>>

ITESA AGM looks to lobby, promote BPO industry

Daily Mirror / Monday, 23 July 2007

Upcoming AGM in Aug. marks three years of BPO Industry Association’s success

The upcoming 3rd Annual General Meeting of the IT Enabled Services Association of Sri Lanka (ITESA) scheduled for August 17 is aimed at promoting and lobbying for greater BPO industries in general.

The meeting is expected to be held at the Information and Communication Technology Agency of Sri Lanka premises. Conceived in October 2004 by ICTA the ITESA is the apex body for Information Technology Enabled Services (ITES) - Business Process Outsource (BPO) Industry in Sri Lanka. Its strong and growing membership currently stands at 18 service exporting companies.

The Sri Lankan ITES-BPO industry currently employs approximately 4,000 employees and brings in an Annual Revenue close to USD42 million (as of 2006) with most of the services being exported to North America, Europe and Australia. More>>

BOI steps in to boost the local ornamental fish sector

The Island / Monday, 23 July 2007

With the objective of discussing ways to further enhance the local ornamental fish sector, Mr. Dhammika Perera – Chairman/Director General of the Board of Investment of Sri Lanka (BOI) recently held a meeting with exporters in the local ornamental fish sector. More>>

14.4 % growth in exports in first five months of 2007

Sunday Observer /Sunday, 22 July 2007

Sri Lanka's export sector recorded a 14.4% (in terms of value) positive growth during the first five months of the year, compared to the corresponding period in 2006 Export Development Board (EDB) sources said. This positive trend is reflected in all major export sectors.

Agricultural exports grew by 9.6%, fisheries 22% and industries by 14.6%. Sri Lanka's exports to its main markets have also increased significantly during the period. Exports to the EU market grew by 30% while exports to the US increased by 11%.

In the agricultural sector, earnings from tea exports increased by 3%, desiccated coconut by 87%, spices 18%, essential oils 74%, fresh fruit 20%, vegetables 10% and cut flowers and foliage by 18.6%.

Industrial exports which account for 70% of the total exports have shown a positive growth in all major sub sectors.

The textiles and garment sector export recorded $1286.95 million compared to $ 1099.55 million in the corresponding period in 2006. More>>

Wayamba export oriented anthurium project

Sunday Observer /Sunday, 22 July 2007

The project to cultivate anthuriums for export commenced in 2001 by the Export Development Board in the North Western Province (NWP). Tissue Cultured plants generated from specially imported mother plants from the Netherlands by the EDB were distributed among 50 outgrowers.

The outgrowers built net houses with 1,000 plants holding capacity a cost of around Rs. 300,000. The EDB assisted the outgrowers with a grant of Rs. 50,000 each. The EDB also met the maintenance costs of the projects (Rs. 2,000 per month per outgrower) and the cost of extension services for three years.

The EDB also assisted 10 outgrowers to expand their project capacities from 1,000 plants - 2,000 plants, for which the EDB granted a loan of Rs. 300,000 per outgrower at a concessionary interest rate of 3% through the NDB Bank. The EDB has selected 50 new outgrowers under the second stage of the project.

They were provided training by the Royal Botanical Garden, Peradeniya and National Plant Quarantine Service. Financial assistance has been sought from the SME Bank to commence construction work on the Net Houses.

The EDB is also assisting the outgrowers of stage 1 to improve their productivity and profitability by sharing the cost of new production inputs up to Rs. 10,000 per outgrower.More>>

Trade and investment mission to Russia/Moscow in Sept

Sunday Times /Sunday, 22 July 2007

The chamber said it would be led by Prof. G. L. Peiris, Minister of International Trade with the mission’s main objective being to strengthen trade ties, source suitable business partners, promote investments and joint ventures between the two countries.

The Sri Lanka Russia Business Council operating under the aegis of the Ceylon Chamber of Commerce is organizing a trade and investment promotion mission to Russia and Ukraine from September 6 to 12.

The mission coincides with 50 years of bilateral relations between Sri Lanka and the Russian Federation.

The chamber said it would be led by Prof. G. L. Peiris, Minister of International Trade with the mission’s main objective being to strengthen trade ties, source suitable business partners, promote investments and joint ventures between the two countries.

The delegation plans to have one to one business meetings with Russian and Ukrainian companies with matching business interests and visit industrial plants/factories in Russia and Ukraine.

The delegation will also have meetings with the Chambers of Commerce, counterpart Trade Associations and relevant Government Authorities.

The chamber said the following sectors would have high potential for exports from Sri Lanka, imports from Russia and joint venture collaborations:

Exports from Sri Lanka - Spices, Desiccated coconuts, Gems and Jewellery (polished and unpolished), Canned Juices and Fruits, Cut flowers, Garments and accessories, Food items e.g.: High quality rice, Floor tiles, ceramic, granite etc, Rubber and rubber products (mainly with Ukraine), Traditional medicine or herbal based high quality beauty products, Porcelain and large chillies.
Imports - Animal feed and Newsprint. More>>

Tea exports a low hanging fruit?

Sunday Times /Sunday, 22 July 2007

By Sunil Karunanayake

Sri Lanka is currently facing a major challenge in meeting up to a rise in oil imports without a significant export growth causing heavy strain on the current account.

Minister of Export Development and International Trade Prof G.L. Pieris at the Exporters’ Association AGM recently emphasizing on the “concept of export or perish” called for concentration on value addition, just a week after Minister of Plantation Industries D. M. Jayaratne too echoed the need to give priority to value addition in tea.

The outgoing Chairman of the Exporters Association Mohan Mendis made a passionate plea to intensify global demand for our exports. Well these comments from two senior ministers and a leading private sector professional no doubt underscored the importance of value addition. The big question is how to get there?

For Sri Lanka with a limited export base choices are limited. Garments and textiles are highly import based and a foot loose industry owing to heavy competition in the open market particularly from China and India and backward integration still being in a developing stage. Emerging exports such as computer software and the services are still at infancy levels.

This leaves garments and agricultural exports together with migrant remittances as potential growth areas. More>>

Rubber price boom to stay for decades'

Daily News /Friday, 20 July 2007

P. A. Meegahamulahena Aranayaka special corr.

ARANAYAKA: The encouragingly high world market rubber price prevailing today, can be expected with all certainty to continue for a few decades more, said Rubber Development Department Director General Nihal Rubasinghe.

"This is the feasible assumption that can be drawn from the viable marketing status of rubber in the world market," he said, addressing a meeting of over fifty plant nursery owners in the Kegalle district on the 12th instant.

The meeting was convened at the Kegalle Rubber Development Department premises. The objective of the meeting was to impart the cultural know-how in high quality planting material production, which is an imperative need to boost Sri Lanka's rubber industry.

In the context of new plantings and re-plantings, the country needs over one million clonal grafts to achieve set targets, but the nurseries run by the government cannot supply all in all, he said.More>>

Lanka, Pakistan set ambitious trade target Plan to achieve US $ 1billion by expanding FTA

The Island /Friday, 20 July 2007

During the second Foreign Secretary level consultations held in Pakistan on Wednesday, the officials of the two countries agreed to expand the scope of the existing Free Trade Agreement (FTA) in order to reach a trade value of US dollars one billion in the ensuing years. More>>

Concessions for wood and clay based handicraftsmen

Daily News /Friday, 20 July 2007

CONCESSION: Environment and Natural Resources Minister Patali Champika Ranawaka has decided to grant several long awaited concessions and relief to handicraftsmen engaged in the production of wood and clay based handicraft products.

This follows a written request by Rural Industries and Self-Employment Promotion Minister S. B. Nawinna and a subsequent meeting National Crafts Council (NCC) Chairman, Buddhi Keerthisena had with Minister Ranawaka at his Ministry recently.

The National Crafts Council said following these discussions the Environment Minister decided to allow Forest Range Officers to issue handicraftsmen licences to transport timber from forest reserves on submission of the Timber Corporation permit and the identity card issued by the NCC. In future they need not go from pillar to post to obtain such transport licences. More>>

Trade promotion mission to Russia

Daily News /Thursday, 19 July 2007

MISSION: Sri Lanka Russia Business Council operating under the aegis of the Ceylon Chamber of Commerce is organising a Trade and Investment Promotion Mission to Russia and Ukraine from 6th to 12th September.

The Mission is coinciding with 50 years of bilateral relations between Sri Lanka and the Russian Federation.

The mission will be led by Minister of Export Development and International Trade G.L. Peiris.

The main objective of this mission is to strengthen trade ties, source suitable business partners, promote investments and joint ventures between the two countries and offer an opportunity for participants to obtain a better understanding of the business environment in Russia.

The delegation plans to have one to one business meetings with Russian and Ukrainian companies with matching business interests and visit industrial plants/factories in Russia and Ukraine.

The delegation will also have meetings with the Chambers of Commerce, counterpart Trade Associations and relevant Government Authorities.

The Sri Lanka Embassy in Moscow and the Chamber of Commerce and Industry of the Russian Federation have confirmed their co-operation to make this mission a success. More>>

Lanka targets US$ 7.8 billion in export revenue this year

Daily News /Thursday, 19 July 2007

Anjana SAMARASINGHE

EXPORTS: The Ministry of Export Development and International Trade targets USD 7.8 billion through exports this year.

The country recorded USD 6.8 billion last year.

Minister of Export Development and International Trade G.L. Peiris said they are targeting USD 7.8 billion in 2007 and are confident in achieving the target.

Sri Lanka has recorded a 14.4% growth in the export sector during the first five months of this year. The total imports have exceeded USD 1 billion during this period. Robust growth in exports and imports reflect the economic growth in the country, the Minister said.

During this period exports to the USA has increased by 11 percent and the apparel sector has showed a 10 percent growth in this market.

Exports to the UK have reported 18 percent while total exports to Germany has increased by 42 percent. Exports to Italy has showed a significant growth of 54% and exports to France and Netherlands increased by 30 percent during first five months of this year. Exports to Russia and Iran too have increased but exports to India has declined.

‘The Per Capita Income in Sri Lanka now remains at USD 1320 and Sri Lanka is no more classified as a least developing country in the region. However benefits of the economic growth should be delivered to the grassroot levels,’ Prof. Pieris said. More>>

Lanka, Qatar trade chambers in talks

Daily Mirror /Thursday, 19 July 2007

Efforts are underway between the business chambers of Qatar and Sri Lanka to sign a memorandum of understanding (MoU).

According to Sri Lankan Ambassador S B Atugoda, the Qatar Chamber of Commerce and Industry has shown an interest in the MoU.

Chamber representatives were willing to go to Sri Lanka to sign the MoU, the ambassador said.

Efforts are also underway to form a joint business council of Sri Lankan businessmen in Qatar and Qatari entrepreneurs doing business in Sri Lankan products or with the island nation.

The ambassador pointed out Sri Lankan businessmen in Qatar had recently formed a forum to promote bilateral trade and investment between the two countries. The council has 20 members. More>>

BOI US$2 m steel firm to manufacture for export market

Daily Mirror /Thursday, 19 July 2007

A supplementary agreement was signed between the Board of Investment of Sri Lanka and VPN Steel Industries (Pvt) Ltd to manufacture industrial building material for the export market.

An investment of US$2 million, the factory will be located at the Makandura Industrial Estate in Pannala. Once the project begins operation, the number of employees will be expanded to 180 and the investment will be raised upto US$ 5 million.

Mr. Nathan – Managing Director of VPN Steel Group stated that commercial operation is scheduled to commence mid-August and pointed out that the product is the first of its kind to be introduced to Sri Lanka, as well as to the Indian sub-continent. He stated that VPN has been actively promoting the product in Sri Lanka and it has already been used in the construction of several projects such as hospitals, schools and NGO’s. He added that the product is also recommended for the construction of high-rise buildings. Mr. A. S. Udayashankar – General Manager of VPN Steel Group pointed out that the product was also showcased at several exhibitions and trade fairs related to the construction industry. More>>

Benefits from exports reaching rural sector says Prof. Peiris

Daily Mirror /Wednesday, 18 July 2007

While the export sector has grown by 13% so far this year, the Government is keen to ensure that the benefits from increased export earnings reach the rural sector and enhance the quality of life of the people, Professor G.L. Peiris, Minister of Export Development and International Trade, said in Embilipitiya.
He was participating in a series of export oriented activities in the Embilipitiya and Kolonne areas recently.
The Minister made arrangements for financial assistance to be given to a thousand families in the Kolonne area to purchase equipment to develop the Kithul industry which provided their means of livelihood.
Prof. Peiris said that many of the activities of the Sri Lanka Export Development Board are intended to ensure that exports increase incomes not only in Colombo and the suburbs but also in remoter areas which require greater attention.
At the community centre in Moraketiya, Embilipitiya, he presided over a discussion on value addition to the banana cultivation industry. With the participation of Minister Jayatissa Ranaweera, arrangements were made for financial assistance to be given to farmers’ organizations to upgrade the product and to make commercial use of fibre extracted by the use of technology from the trunks of the plantain tree. Community leaders from the area took part in the discussion. More>>

Mackwoods Agro Division gets ISO 9001-2000 certificate

Daily Mirror /Wednesday, 18 July 2007

Mackwoods Limited – Agro division was recently awarded the ISO 9001-2000 Quality Management System Certification from the Sri Lanka Standards Institute (SLSI), for their Agro products. This is a further benchmark of quality for the Mackwoods Group and in line with their commitment to make available high quality products to the Agricultural sector. The Award ceremony was held at SLSI auditorium. Here Dr. Chris Nonis – Chairman Mackwoods Group receiving the certificate from Dr. A.R.L. Wijeyasekera Chairman – SLSI. Mrs. Shirani Weragoda – Director General SLSI, Mrs. Nirmali Samaratunga – Co-Chairman/Joint Managing Director, Mr. Lalith Fonseka Joint Managing Director and Mr. M.M. Safeek – General Manager – Mackwoods Agro Division were also present. More>>

Economic prosperity through enhanced connectivity between SL, B’desh

Daily News /Wednesday, 18 July 2007

DHAKA: Foreign Minister Rohitha Bogollagama and Chief Advisor of the Bangladesh caretaker government Fakhruddin Ahmed expressed optimism that both bilateral and regional arrangements such as SAARC and BIMSTEC will help to take the relations between the two countries to a greater height.
Foreign Minister Rohitha Bogollagama yesterday called on the Chief Advisor of the Bangladesh caretaker government, Fakhruddin Ahmed at his office. Minister Bogollagama accompanied by a 20 member delegation is visiting Bangladesh at the invitation of the Bangladesh government.
During the meeting the two sides agreed to review and expand the existing relations. The discussion between the two leaders focused on bilateral trade, investment and economic relations.
The Minister also called on the Advisor on Foreign Affairs and held bilateral consultations. The two leaders underlined the need to revive the economic relations to give wider dimension to the overall bilateral relations and suggested ways and means to achieve it. More>>

Katunayake EPZ, a major impetus to Lanka’s economy

Daily News /Wednesday, 18 July 2007

VISIT: The BOI recently organised a visit to the Katunayake Export Processing Zone (KEPZ) for members of the media. The visit included a presentation by senior BOI staff, members of the Free Trade Zone Manufacturers’ Association and some zone workers. Also included were visits to three BOI enterprises in the Zone.
The KEPZ is the first BOI Export Processing Zone, established in 1978, at the same time as the Greater Colombo Economic Commission (GCEC), as the Board of Investment of Sri Lanka was then known.
The KEPZ is a sprawling facility that has an area of 526.66 acres and it is located near the airport and just 29 kilometres from Colombo.
The KEPZ is the most highly developed of all BOI zones, as 86 enterprises are operating in the facility. Many of these enterprises can be described as high technology, using very advanced manufacturing techniques and procedures. Of these enterprises 24 are the plants of apparel exporters. More>>

Branding Sri Lanka for the global market

Daily News /Wednesday, 18 July 2007

Keynote address delivered by Chairman/Managing Director, Rediffusion DYR Diwan Arun Nanda, at the inauguration of the Sri Lanka Economic Summit on June 6.

BRANDING: So why do we need a nation brand. After all we are in the era of globalisation. An era of standardisation. Of a flatter world. Where consumer expectations, manufacturing process and work philosophies are all becoming country agnostic.
Haven’t brands today diminished their story of origin and acquired strong values that transcend countries and cultures. So why bother about branding Sri Lanka. Why not instead focus our efforts on infrastructure, stability and setting an economic climate.
There’s a simple reason for this. Swiss precision still sells watches. Italian style still sells leather. Japanese reliability still sells cars. Nations may merge in terms of economic processes but cultures remain as strong as ever.
And a national identity is more strongly rooted in its culture than in anything else. A strong brand Sri Lanka will not just provide the obvious benefits of investment and tourism but will also act as powerful endorser for your exports. More>>

NGJA launches website, more trading opportunities

Daily News /Wednesday, 18 July 2007

A.G. Piyadasa

WEBSITE: National Gem and Jewellery Authority (NGJA) invites local gem and jewellery traders to promote their businesses through Authority’s newly launched website to explore the international market opportunities.
Speaking at the launching ceremony of the new website of NGJA, Chairman NGJA Hasitha Tillekeratne said the e-commence facility available through this website will enable the Sri Lankan traders to offer their gem and jewellery to a wider client base globally.
Internet marketing is customer friendly and the feedback is immediate. The Internet today has become a virtual buyers market, with the buyer deciding what products they want, when they want it and at what price, he said.
The Gem and Jewellery sector has recorded an overall growth of 10 percent during the first half of 2007 in comparison with last year. NGJA also planning to enter into new markets such as Russia and India in 2008.
Minister of Enterprise Development Mano Wijeyratne said they are in the process of venturing into new markets. More>>

Impressive growth in export earnings in May

Daily News /Tuesday, July 17, 2007

GROWTH: Export earnings continued to grow in May 2007 reaching a US $ 2.893.5 million recording the highest monthly value in 2007. This is an impressive 25.8 per cent growth as against the previous year.
Total exports in the first five months in 2006 was US $ 2530.0 million while in the same corresponding period in 2007 it stood at 2,893.5 million US dollars.
This is a healthy 14.4 per cent growth. Persistently strong demand for apparel has provided a basis for the strong trade performance in recent months. Export of apparel rose by 45.5 per cent in May 2007 largely driven by higher exports to the US and the EU, the Central Banks said.
Strong growth was also witnessed in rubber based products, machinery and equipment, desiccated coconut and pepper. As a result, the cumulative exports during January to May grew by 14.4 per cent from US dollars 2,530 million in 2006 to US dollars 2,894 million in 2007.
Imports grew by 8.1 per cent from US dollars 938 million in May 2006 to US dollars 1,014 million in May 2007. More>>

Lankan trade, investment promotion mission to Russia

DailyMirror/Tuesday, July 17, 2007

Sri Lanka Russia Business Council operating under the aegis of the Ceylon Chamber of Commerce is organizing a Trade and Investment Promotion Mission to Russia and Ukraine from 6th to 12th September, 2007. The Mission is coinciding with 50 years of bilateral relations between Sri Lanka and the Russian Federation.
The Mission will be led by Hon G L Peiris, Minister of Export Development and International Trade. The main objective of this mission is to strengthen trade ties, source suitable business partners, promote investments and joint ventures between the two countries and offer an opportunity for participants to obtain a better understanding of the business environment in Russia.
The delegation plans to have one to one business meetings with Russian and Ukrainian companies with matching business interests and visit industrial plants/factories in Russia and Ukraine.
The delegation will also have meetings with the Chambers of Commerce, counterpart Trade Associations and relevant Government Authorities. The Embassy of the Democratic Socialist Republic of Sri Lanka in Moscow and the Chamber of Commerce and Industry of the Russian Federation have confirmed their fullest co-operation to make this mission a success and are in the process of making necessary arrangements for meetings with private sector companies and relevant Government Authorities. More>>

“Ayurveda 2007” captures the global market

Daily Mirror/Tuesday, July 17, 2007

“Ayurveda 2007” National Indigenous Healthcare Exhibition and Symposium organized by the National Chamber of Commerce of Sri Lanka in association with the Ministries of Indigenous Medicine, Export Development & International Trade, Enterprise Development & Investment Promotion and Tourism to be held from 7 – 9 September 2007 at Sri Lanka Exhibition and Convention Centre will be an eye opener to every local and foreign visitor who could see with his own eyes the secret of indigenous treatment for a better life.
The first ever Sri Lanka National Indigenous Healthcare Exhibition “Ayurveda 2007” will showcase to the visitors all those wonders. Already visitors from India, Pakistan, Malaysia, Germany and England have made their travelling arrangements to visit this unique event. In addition, the recent Road show held in India jointly organized by the National Chamber of Commerce of Sri Lanka, Sri Lanka Ayurveda Medical Council, Sri Lanka Deputy High Commission in Chennai and Kerala Chamber of Commerce & Industry has made many producers and the service providers in the sector reserve their stalls at this global event. All the local indigenous medical practitioners , medicine manufacturers, doctors, hospitals, organic food producers and herbs cultivators could expose their products and services to a larger gathering and secure a good market locally and globally. Public will have a great opportunity to witness the best treatment systems, best medicine and best doctors. Many elderly Europeans are regular visitors to Sri Lanka in search of Ayurveda treatment in Sri Lanka Ayurveda resorts. The symposium to follow will be addressed by top class Ayurveda Physicians from Sri Lanka, India and Japan. More>>

No “May Day May Day” for external trade

Daily Mirror /Monday, 16 July 2007

Robust performance continues; Country in May records highest export value of $ 641 m; Imports top $ 1 b for the first time; First five months
figures up 14.4% and 7.5% respectively

Despite the security situation and the political developments, the country’s external trade appears robust with the month of May notching record figures.

The Central Bank said that exports in May reached its highest value of US$ 641 million while imports for the first time crossed the US$ 1 billion mark. The growth in exports in the first five months was 14.4% to $ 2.9 billion while imports grew by 7.5% to $ 4.3 billion.

Central Bank said recording the highest monthly value in 2007, export earnings continued to grow in May 2007. Exports grew by an impressive 25.8% to $ 641 million in May 2007 as against $ 509 million in May 2006. Persistently strong demand for apparel has provided a basis for the strong trade performance in recent months. Export of apparel rose by 45.5% in May 2007 largely driven by higher exports to the US and the EU. Strong growth was also witnessed in rubber based products, machinery and equipments, desiccated coconut and pepper.

Imports grew by 8.1% from $ 938 million in May 2006 to $ 1,014 million in May 2007. The growth was primarily driven by intermediate and investment goods. Rapid growth in imports of textile materials in recent months reflected in higher exports of apparel. Continuing the trend, textiles imports recorded the highest monthly value indicating continuous growth momentum in apparel exports in the future. Petroleum and fertilser also increased within this sector. Investment goods continued to grow at a higher rate in May 2007 reflecting continuation of high investments. Consumer goods declined marginally mainly due to lower imports of sugar and motor vehicles. More>>

Tri-Star invests Rs. 500m for Apparel Village in Trincomalee

Daily News /Monday, 16 July 2007

Anjana SAMARASINGHE

EXPANSION: Tri-Star Apparel Exporters will establish an apparel village investing over Rs. 500 million in the Trincomalee district.

Chairman of the Tri-Star Apparel Exporters Kumar Dewapura said the company expects to establish five garment factories in the Village providing 5000 job opportunities for youth in Thambalagamuwa in the Trincomalee district.

As the initial stage the company will set up their first factory investing over Rs. 100 million providing 1000 jobs and expect to start production within three months time for the US market.

The company runs a similar apparel village in Alawwa consisting five factories.

Devapura said the initial project will be a foreign collaboration and he also expects to commence other factories as foreign joint ventures. Another four factories will be set up in one-year’s time, he said.

Nearly 3000 job seekers in Trincomalee have registered with us and at the moment the company is training 150 applicants in Colombo now. The training is on supervising, cutting, machine operating and computer operating, he said. More>>

Tea to enjoy good year

Sunday Observer /Sunday, 15 July 2007

Tea prices are projected to be buoyant this year. For long term sustainability, the industry needs re-engineering to achieve global competitiveness.

Sri Lanka's cost in producing a kilo of tea is among the highest in the world, states a report by Forbes and Walker Tea Brokers (Pvt) Ltd. in the Sri Lanka Tea preview 2006.

Rising input costs, declining productivity, uneconomic age profile of tea bushes and high social costs are among the reasons for the declining profits. Therefore higher productivity and cost reduction will have to be achieved for competitiveness of "Ceylon Teas" in the world market in the medium to long term.

Therefore global competitiveness of "Ceylon Teas" will largely depend on how quickly the industry addresses these vital issues, the report said.

According to the report the market demand for tea in the second half of 2007 will depend greatly on how the global tea industry would progress during the first half.

We are confident that the market demand for good quality teas would command a significant premium consistently throughout the year.

When prices are compared at various auction centres during 2006 only the Colombo and Mombasa auction centres recorded prices above the global average price which is attributed to the overall better product quality at these centres and the substantial shortfall in Kenya production. More>>

Aqua Asia 2007 exhibition to boost ornamental fish exports

Sunday Observer /Sunday, 15 July 2007

by L. S. A. Wedaarachchi

The 'Aqua Asia 2007' exhibition in Colombo which will bring together all the leading local and international players in the aqua industry will be held from October 11-14 at the Sirimavo Bandaranaike Memorial Exhibition Centre.

It has been organised by the National Aqua Culture Development Authority (NAQDA) together with Lanka Exhibition and Conference Services Ltd. (LECS) and Export Development Board (EDB).

The NAQDA Chairman Munidasa Premachandra said that 'Aqua Asia 2007' will create a good opportunity for producers, importers, buyers, new players and other related parties in the ornamental aquatic industry to explore business opportunities.

"Aqua Asia" will be among the top most events for those engaged in the Sri Lankan ornamental fish and aquatic plant industry. Many leading international Aqua industrialists will exhibit their products either directly or through their Asian partners, he said.

The aquarium fish industry in Sri Lanka has been a valuable foreign exchange earner during the past few years. It has shown a remarkable increase in foreign exchange earnings - Rs. 742 million in 2004 to Rs. 889 million last year.

A growth rate of 12.5 per cent was achieved in 2006 and Rs. 1,000 million has been targeted this year. More>>

Workshop to expand export industry

Daily Mirror /Friday, 13 July 2007

The Sri Lanka Shippers’ Council (SLSC) and the Academy for International Trade and Transport (AITT) the training arm of the Sri Lanka Freight Forwarders’ Association has organised an event to discuss ways and means that are available under different incentive schemes to expand and enhance the export industry and related service industries in Sri Lanka. The forum will be held on July 20th from 3.00 pm to 5.00 pm at the Bandaranaike Centre for International Studies (BCIS) Auditorium at the BMICH premises.

The current environment for expansion of existing businesses or entering into new areas of exports and related services is a problem for most companies as they are finding it difficult to invest due the macro economic climate. At the same time many export oriented companies fall back and lose out on opportunities due to their inability to understand available tax benefits, tariff structures and incentives offered to them by different government authorities to promote export growth and the export-related industry. More>>

Import tariffs a boost to competitiveness

Daily Mirror /Friday, 13 July 2007

By Sherwani Synon

The government’s initiative to impose import tariffs will boost competitiveness of the domestic industries, the Ceylon Chamber of Commerce Import Section chairman said.

Addressing the meeting Chairman of CCC Import section Mr. Ranjan de Silva speaking of the economy said, “The Central Bank annual report states that imports have increased by 15.7% over the previous year to reach US $ 10,253 million, reelecting both increased volume and higher prices.”

The Import Section of the Ceylon Chamber of Commerce held their 72nd Annual General Meeting on Tuesday evening.

He said that 81% of these imports consist of non-consumer goods, falling into intermediate and investment category.

“The trade deficit has widened to 12.5% of GDP in 2006 as against 10.7% of GDP in 2005 and it is heartening to note that the stated government policy is that import tariffs will continue to be simple providing inputs to domestic industries to maintain their competitiveness. Average Tariffs on imports have declined marginally from 4.3% in 2005 to 4.2% in 2006,” it was noted. More>> 

Market Access through Regional Trade Arrangements (RTAs)

Daily Mirror /Friday, 13 July 2007

In recent years, regional trade arrangements (RTAs) have become a significant feature of the world trading system. By definition, RTA is a trade agreement which seeks to reduce barriers to trade between two or more countries within a certain region on a reciprocal and preferential basis. 

There are various types of RTAs in existence (Table 1) and they differ considerably with some agreements going beyond tariff cutting exercises to include provisions on services, investment, competition, intellectual property, environment, labour. 

Almost all countries in the world, including Sri Lanka are now members of at least one or more RTAs while some are party to 20 or more! The number of such arrangements has surged since the early 1990s and there are some 386 notified RTAs to date, with still more in the pipeline. More>>

FTAs help Watawala Plantations strike it rich with palm oil

Daily Mirror /Friday, 13 July 2007

Watawala Plantations Limited (WPL) is a pioneering plantation and highly marketing oriented company in Sri Lanka owning 19 estates stretching across 12,500 hectares in tea, rubber and oil palm and possesses a highly skilled workforce of over 14,100 personnel. WPL is listed on the Colombo Stock Exchange and is managed by Estate Management Services (Pvt) Ltd. Currently WPL shares are being traded and enjoy the highest price amongst the listed plantation companies.

WPL manages 15 of the finest tea gardens in Sri Lanka and represents all three elevations namely the high, medium and low grown which is a very unique advantage. WPL manufactures over 8 million kilograms of tea each year and continues to enjoy a strong demand at the Colombo auctions due to the quality produce. WPLs production facilities have been accredited with international certifications for the highest quality standards maintained.

The company’s role in adding value to the tea industry is further emphasized by its exports, as more than 1 million kilograms of tea are being exported each year by WPL. Further we are the proud owner of "Zesta" brand of teas which has a significant recognition in the branded tea segment in Sri Lanka and is also exported to several destinations the world over. WPL branded teas have within a short period of time gained a substantial share of the market and have recorded a significant growth rate. Maximizing the opportunity of the FTA with India, Zesta Premium brand of tea is exported to the Taj resorts group in India regularly. More>>

DPL’s bold shift from a global supplier to a global brand

Daily Mirror /Friday, 13 July 2007

Lessons from a Sri Lankan world-class gloves’ manufacturer

Dipped Product Ltd (DPL) had everything that a successful Sri Lankan exporter would hope for – a good marketing strategy, clients in the right places, and of course a sound product. Yet while having all these qualities, they still felt there was scope to provide greater value to their customers.

“We were supplying rubber gloves to a range of global clients who we considered our partners. Whilst this was a solid base we saw an opportunity for incremental growth through our own brand,” recalled J.A.G. Anandarajah, Managing Director of DPL.

The company, part of the giant Hayleys Group, produces three types of gloves for the household & consumer, industrial & personal, and medical segments. It is a global partner of 3M Scotch brand and supplies to several supermarkets like Tesco. Impressively, the product is available in nearly 65 countries. More>>

Cold chain operator Tess Agro, heavily traded

Daily News /Friday, 13 July 2007

Hiran H. Senewiratne

OVERSEAS CONTRACTS: Tess Agro is the first cold chain operator in the country to succeed in obtaining many contracts from retail giants in UK and EU member countries, to export tuna fish, its Director Dilshan Fernando said.

Tess being a listed company in the Colombo Stock Exchange, is a heavily traded company in the market and is now improving business avenues despite many challenges.

During the past couple of weeks its share value moved slightly up in the market. The company's cost per share value is around Rs. 1.20, and is one of heavily traded companies in the market, stock market analysts said.

Despite high competitiveness from other Asian countries over the past five years, it has been exporting mostly tuna fish to the European Union (EU) member countries, to the tune of 50 tonnes per week, Fernando said. More>>

Growth in footwear exports this year

Daily News /Thursday, 12 July 2007

Anjana Samarasinghe

FOOTWEAR: The local footwear market is close to saturation point.

Supply and demand are becoming equal and the industry now needs to focus more on exports for the growth of the industry, Assistant Director of the Export Development Board (EDB) Sriyani de Saram said.

The EDB is targeting a 11 percent growth in footwear exports during this year. In 2005 this sector had not shown significant growth compared to 2004. But in 2006 this sector has earned US$ 20 million through exports. In 2005 it was US$ 13 million.

Due to the high taxes imposed on imported shoes and duty free concessions on imported shoe accessories and raw materials there is a huge growth in the local footwear market. Now local footwear companies need to concentrate more on exports, she said.

‘We have understood that many EU buyers are now focusing on countries like Sri Lanka, Vietnam and India than China.,she said.

Sri Lanka also has the competitive advantage with the GSP concessions. Many Indian companies are also focusing on Sri Lanka as a subcontracting destination for their footwear industry, de Saram said. More>>

MAS is Victoria’s Secret’s Vendor Partner of the Year 2006

Daily Mirror /Thursday, 12 July 2007

MAS Holdings was named Vendor of the Year 2006 by Victoria’s Secret (VS) at a ceremony held at VS headquarters in Columbus, Ohio, USA recently.

The award, presented in recognition of MAS’ consistent commitment to Victoria’s Secret Stores’ success, included criterion such as partnership, collaboration, innovation and design, cost competitiveness, community involvement and overall performance.

In a letter announcing the honor, Executive Vice President of VS Production and Sourcing, Mr. James F. Pappas congratulated MAS and their associates on the accomplishment, attributing VS’ growth to its partnership with world class organizations that share its focus on excellence and customer satisfaction. Mr. Pappas went on to say MAS Holdings exemplifies VS’ values and beliefs and is critical in helping VS deliver industry-leading products to customers who expect the best quality and value.

Founded in 1977 in the USA as a luxury retailer of lingerie, women's clothing and beauty products, VS offers women a novel lingerie shopping experience as opposed to the traditional department store environment. More>>

Top forum to deal with Sri Lanka’s stand on Agriculture in WTO

Daily Mirror /Thursday, 12 July 2007

A conference titled “The Doha Development Agenda and the Future of the Multilateral Trading System” organized by the Sri Lanka Law College in collaboration with the Department of Commerce and the World Trade Organization is scheduled to be held from July 30 to August 1, 2007 in Colombo.

The opening ceremony will be on July 30 at Waters Edge while the plenary sessions will be on July 31 and August 1 at Cinnamon Grand.

What are the prospects of the negotiations on agriculture proceeding to a successful conclusion? Will developing countries obtain any tangible advantages from these negotiations? What will be its impact on Sri Lanka? These are some of the questions that will be addressed during the session “Trade in Agricultural Products” at the conference. More>>

Prices improve at tea auction

Daily Mirror /Thursday, 12 July 2007

Sale No.27 was concluded with a total of 6.4 m/kgs on offer.
Ex Estate offerings totalled 0.98 m/kgs. Offerings from the Western districts barely maintained compared to the preceding sales.

Consequently, better Western BOPs in particular were lower with buyers being very selective. However, a range of clean leaf coloury BOPs in the Below Best category were firm to Rs.5/- per kg dearer whilst there was improved demand for the plainer clean leaf varieties resulting in prices gaining Rs.5-8 per kg.

On the other hand the corresponding BOPFs with the exception of a few high priced teas that were barely steady, gained Rs.10-15 per kg and more particularly for the coloury sorts. This trend has resulted in the parity between BOPs and BOPFs once again widening with the latter having a Rs.10-15 per kg advantage over the corresponding BOPs. Nuwara Eliyas were mostly uninteresting and prices barely maintained.

Offerings from the Eastern sector were quite similar to last and the select best BOPs together with clean leaf coloury BOPFs were readily absorbed at Rs.3-6 per kg dearer rates. More>>

14 containers of counterfeit ZAHRA Tea Packs seized in the Port

Daily Mirror /Thursday, 12 July 2007

The brand owners of ‘ZAHRA TEA’ recently filed action against several companies for copying their registered trademark and attempting to export counterfeit products to Libya. ‘ZAHRA TEA’ has over the years become well known around the world, specially in Libya and the Middle East for its unique quality. The Plaintiff claims that its product has by its extensive use become distinctive of the Plaintiff and is identified and recognized by the public and the trade.

The Registered brand owner of ‘ZAHRA TEA’ Zahra Exports (Private) Limited filed three separate actions in the Magistrate Court of Colombo recently against Almar Teas (Private) Limited, Consolidated Business Systems Limited and Sunrose Teas (Private) Limited through their legal representatives, Sudath Perera Associates. More>> 

Tea production in full swing, expects good time

Daily News /Wednesday, 11 July 2007

Hiran H.Senewiratne

TEA: The Sri Lanka Tea Board (SLTB) projected tea production to reach between 310 to 315 million kgs at the end of the year due to favourable conditions for the industry.

Lst year the total production was 307 million kg due to the disorder in the sector, sources said.

Last year labour unrest, lesser fertilizer application and severe drought conditions negatively impacted the local tea industry. Its ripple effects also prevailed until the first three months of this year, Director General SLTB, H.D Hemaratne said.

He said that this year the tea industry is functioning quite smoothly and the international market prices are also good especially for low grown tea. Most Regional Plantation Companies have not experienced labour unrest this year and favourable weather conditions resulted in on increase on the annual tea output, he said.

Further, tea smallholders who contribute more than 60 percent to the total national production have started fertilizing their tea lands due to Government’s strong patronage for the industry, he said. More>>

Hasalaka, Mahiyangana factory opening a boost to apparel industry

Daily Mirror /Wednesday, July 11, 2007

A new garment factory was opened at Hasalaka, Mahiyangana by the Sumithra Group of companies. Minister of Investment Promotion Navin Dissanayake officially opened the factory.

Minister Dissanayake spoke of the importance of the factory for the welfare of the people in the region. The plant had been originally opened by garment industry pioneer Kumar Devapura, but had recently been taken over by the Sumithra Group of Companies.The Minister stated that often the focus has been on negative news such as the prevailing conflict, but there are also positive events such as the opening of afactory that has provided employment to so many young people in a lesser-developed part of the country.

“We should strive to make our country like Singapore or Malaysia”, he added.

The new factory is a project that comes under the 300 Enterprises Programme of the BOI. Under this scheme, the BOI encourages investors to set up a project in each one of the 300 Divisional Secretariats outside of Colombo and Gampaha. The 300 Enterprises Programme is part of the Government’s Mahinda Chinthana Programme, which has as its prime objective the reduction of inequalities in rural areas. More>>

BOI Dankotuwa factory creates 400 jobs

Daily Mirror /Wednesday, July 11, 2007

Disney, Next, Marks and Spencer and Gap among top brands for factory’s production

The latest BOI Company to begin operations under the 300 Enterprises Programme is a plant that was opened at Dankotuwa on July 6 by Trendy Connections (Pvt) Ltd.

The new factory will be very beneficial to the local community, as it has created 400 employment opportunities. Furthermore, as the company has maintained very high standards in terms of labour relations and working conditions it has been able to gain access to vital markets in the USA and the European Union.

The factory that was opened is a sprawling 135,000sq kilometer facility that has a production capacity of 350,000 pieces per month. The company has been producing T-shirts since 1992, initially for the local market. Indeed Trendy Connections is a household name in Sri Lanka and is a specialist in the production of knitted apparel. Minister of Janatha Estate Management and Development Milroy Fernando officially opened the factory complex.

Trendy Connections’ operations have now been expanded to produce for markets in the USA and the European Union, for reputed brands such as Disney, Next, Marks and Spencer and Gap. More>>

Handicraft new design show and trade fair

Daily Mirror /Wednesday, July 11, 2007

Yugayaya Nimavum – 2007 handicraft New Design Shown and Trade Fair 2007 organized by the National Design Centre in consultation with the Ministry of Rural Industries and Self-employment Promotion will be held at the Kurunegala Town Hall on July 16 and 17.

This programme which is organized under the Mahinda Chinnthana Deevelopment Programme for the development of Handicraft Producers of NWP is assisted by the North Western Provincial Council.

The opening of this event will be held on July 16 at 10.00 am with the patronage of Rural Industries and self-Employment Promotion Minister S.B. Nawinna and with the participation of Minister of Rural Industries Premalal Jayasekera, NWP Chief Minister Athula Wijesinghe, Minister of Rural Industries of NWPC Victor Anthany Perera.

A wide range of creative handicrafts such as Brass, Lacquer, Rush & Reed, Wood, Red Clay, Coir, Bamboo, Cane, Textile and Handmade Paper Products will be on display.

Main objective of organization this New Design Show and Handicraft Fair is to create awareness among producer of Wayamba on the new design in demanded in the local and export markets. The skills of the handicraftsmen have been enhanced to develop new designs and they have been motivated to utilize raw materials available in their specific areas. More>>

Brand Ratings Certification introduced to Sri Lanka by Brand Finance plc

Daily Mirror /Wednesday, July 11, 2007

Brand Finance plc, the world’s leading independent intangible asset valuation and brand strategy firm, operating in Sri Lanka as Brand Finance Lanka, recently launched a powerful ‘Brand Ratings’ reward scheme which certified seven of Sri Lanka’s leading brands. Each of the brands that received the Brand Ratings certificates are listed in the 50 ‘Most Valuable Sri Lankan brands’ league table (as published in LMD in March 2007).

A combination of the increasing economic significance of brands, and the new international accounting and corporate governance standards (IFRS3), has increased the importance of initiating a well-informed discussion on the value that brands deliver to businesses.

The goal of Brand Finance’s annual brand value league table is to contribute to this discussion by providing an overview of how brand value can translate to superior business value.

Brand Finance’s Brand Ratings are conceptually similar to company credit ratings, certifying the health of the brand.

The Brand Rating score represents a summary opinion on a brand, based on its strength as measured by Brand Finance’s ‘Brand Strength Index’. This competitive benchmarking tool provides an understanding of the strength of each brand and is used to determine appropriate royalty and discount rates in the brand valuation process using Brand Finance’s proprietary methodology. More>>

Scope for Lanka to trade tea, rubber and betel to Pakistan - President, Lanka-Pakistan Business Council

Daily News /Tuesday, 10 July 2007

COUNCIL: The Sri Lanka-Pakistan Business Council held its Annual General Meeting at the Ceylon Chamber of Commerce last week. The High Commissioner of Pakistan in Sri Lanka Shahzad A. Chaudhary was the chief guest.

President of the Council Gulam Chatoor said there was a scope for Sri Lanka to export large quantities of tea, rubber and betel to Pakistan and import more cotton, plastic, fish, glass and fruits from Pakistan following the tariff connections introduced by the FTA between the two countries.

Chatoor added that the Council members should take advantage of its affiliation to the Ceylon Chamber of Commerce which has a history of over 160 years.

This affiliation to the Chamber, he pointed out, enables the Council to reach out to over 1000 entrepreneurs. Chatoor commended these positive factors and move forward to expand more trade, both ways, between the two countries.

Ambassador Chaudhary told the members to look beyond the traditional items that are being traded, because, he argued that the human base is fixed, as one can only sell that much of tea or betel leaves to Pakistan just as much as there is a limit on the potatoes one can import from Pakistan.

He emphasised that one should look at, for instance, getting down larger quantities of yarn or textiles from Pakistan converting them into garments in Sri Lanka and exporting the garments. More>>

Pakistan seeks Lankan assistance to develop gem industry

Daily News /Tuesday, 10 July 2007

Anjana Samarasinghe

ASSISTANCE: Pakistan is seeking assistance from Sri Lanka to introduce regulations for their gem and jewellery industry and to increase revenue through this sector. This was revealed when a special delegation from Pakistan met private and public sector representatives at the National Gem and Jewellery Authority last week.

During the meeting Pakistan's Senior Joint Secretary of Ministry of Petroleum and Natural Resources, Jehangir Khan said that in Pakistan the gem sector has not developed yet. But there is a tremendous potential for developing this segment in Pakistan.

There are world-class gem deposits in Pakistan. At the moment Pakistan's annual revenue through gem exports remains at US$ 200 million and they expect to increase this to US$ 4 billion.

"Pakistan loses considerable revenue without proper regulations for the industry and we expect to learn from Sri Lanka through their regulations on the industry, he said.

At the moment they supply rough gems for value addition for countries such as India. During the discussions Sri Lanka pledged to support Pakistan in providing necessary training for their people in the gem and jewellery industry. The Pakistan delegation also requested for short-term courses in the training programme. More>>

Lanka to tap into lucrative Pakistani gem market

Daily Mirror /Tuesday, 10 July 2007

By Uditha Jayasinghe

Sri Lanka is hoping to tap into the lucrative gem market of Pakistan that has an estimated potential value of over US$ 3.5 billion by aiding it to develop the industry.

A Pakistani delegation that is visiting Sri Lanka with the intention of studying the local gem industry as a model to develop their industry has decided to look for training, logistical support and regulation frameworks from its neighbors.

“Pakistan is currently in its “infant stages” and needs a major overhaul before it can become a lucrative business venture the Pakistan delegation will formulate a document on what they have observed during this visit and send it for the Gem and Jewellery Authority and other stakeholders to have a look at it. After that we will formulate plans to start a training programme either in Sri Lanka or in Pakistan,” said Pakistan Ministry of Petroleum and Natural Resources Director General (Mineral) Irshad Ali Khokhar. More>>

Sri Lanka – Malaysia Business Council bids farewell to Malaysian High Commissioner

Daily Mirror /Tuesday, 10 July 2007

The Sri Lanka - Malaysia Business Council of the Ceylon Chamber of Commerce bid farewell in a unique way to Malaysian High Commissioner Nazirah Hussain, who returns to Kula Lumpur end of this month on completion of her full term.

During her tenure in Sri Lanka, Malaysia became the largest investor in Sri Lanka and one of the biggest trading partners. From this year Malaysia offers Sri Lankan tourist Visa on arrival, which very few foreign countries offer us.

Malaysia is one of the most developed nations in Asia and is blessed with a harmonious, multi-religious and multi-racial society of 26 Million people with a high GDP per capita and has a high standard of living with all the modern infrastructure and facilities in place.

In honoring the high commissioner’s request, the Sri Lanka – Malaysia Business Council (SLMBC) organised a Charity event by donating student requirements to Buddhagosha Maha Vidyalaya, Kalubowila, Dehiwala. Dr. Rohitha Silva, President, SLMBC and members of the Council donated new sports goods and stationary items for the students at a ceremony which held last week at the school premises with the Principal, Staff and the 600 students. Sri Lankan Cricketer Sanath Jayasuria also contributed one of his cricket bats to the School Cricket team. More>> 

Reforestation plan for tea plantations

Daily News /Monday, 9 July 2007

TEA: With a volume of 6.45 Mkg arriving at the Colombo Auction this week, a continuous pattern of quantities of between six and seven million kilos has been evident since the latter part of May. This weeks Ex-estate quantities totalled 1.07 Mkgs.

Due to the Libyan buyers being inactive during the sale, prices of OP and OPA grades fell from last week’s levels with many of these teas remaining unsold.

However, on the whole Pekoe’s did move up further, irrespective of category. Wirey teas maintained last levels. Well-made best FBOP’s and FF1’s were a little lower at the start before moving up towards the latter part of the sale. Iran was active this week while buyers from Dubai were moderate and the CIS buying very selective.

News has also emerged that the Iranians are asking the local exporters to register for a food hygiene certificate similar to the HACCP and ISO certificates.

Stores where tea blending is currently taking place will need to part with a fee of $6000 in order to register for the new certificate upon which an Iranian official will visit their site and conduct tests and video the premises. More>>

National Agri-business Forum and National Farmer Federation session

Daily News /Monday, 9 July 2007

EXHIBITION: National Agri-business Forum and National Farmer Federation sessions would be held during the AG-Bix 2007 exhibition scheduled to take place from July 20 to 22 at the BMICH.

The exhibition will consist of 100 industry related stalls covering areas such as foreign and local suppliers of seeds, fertiliser, agro-chemical, drip irrigation, machinery, technology and information suppliers, research institutes, marketers and exporters, trading houses, educational institutions and producers. This event is organised on an annual basis by the National Agri-business Council.

The National Agri-business Forum would be an opportunity for industry related personnel to gather and discuss important and current topics sharing knowledge while listening to international and national experts on topics ranging from new technology.

International Trade issues affecting Sri lankan agri-exports to the developed countries, branding, market access and opportunities for Sri Lanka’s agro-products.

The National Farmer Federation sessions would focus on the important role played by rural farmers, their efforts as the foot soldiers of the national economy. It would be a time for the formal private sector to sit back and listen.

Representative of 10 Regional Farmer Councils will meet to discuss issues and present the true situation in the peripheries. The districts are Hambantota, Gampaha, Ampara, Matale, Galle, Kandy, Moneragala, Puttalam, Kurunegala and Badulla. More>>

FCCISL forum on Company Act amendment, impacts

Daily News /Monday, 9 July 2007

FORUM: The Federation of Chambers of Commerce and Industry of Sri Lanka (FCCISL), the apex private sector representative body in Sri Lanka is to present its monthly high-level policy forum - The Key Persons’ Forum which is organised by the FCCISL with its SME development arm, Small and Medium Enterprise Developers (SMED) on July 10. SMED was established in 1989 by Friedrich Naumann Stiftung as a project of the FCCISL.

The Key Persons’ Forum is organised as a part of the business/public awareness effort on issues pertaining to business, economy and the society.

The Forum provides a platform for eminent persons in responsible positions with expertise knowledge and/or decision-making powers to discuss and share experiences on policy perspectives on a face-to-face basis on matters relevant and of interest to the private sector.

The Forum takes up a wide range of topics related to local and global issues that make an impact on the private sector, such as, geo politics, globalization, economics, international relations, international trade, and more specifically issues related to business climate and the private sector.

The Forum is targeted for entrepreneurs, corporate heads, bankers, consultants, legal community, company secretaries and representatives of the private sector, professionals, public and private sector academics and civil society representatives. More>>

SLTB in BITE 2007 offers excellent opportunity for sellers and buyers

Daily News /Monday, 9 July 2007

PARTICIPATION: Sri Lanka Tourist Board participated at the Beijing International Tourism Expo (BITE) 2007 which was held for the fourth consecutive year in Beijing at Beijing Exhibition Centre recently supported by the Beijing Tourism Administration.

There were over 800 exhibitors at seven different halls with the participation of 80 countries occupying an area of 30,000 sq meters. Minimum of 20,000 trade visitors attended the trade fair including hosted buyers and international trade visitors.

The main feature of BITE was that it was much focused on the business matchmaking programme, which enabled the members of the industry to pre- schedule one - to one-appointment sessions, to facilitate direct communication between buyers and the sellers.

The first two days of the Mart was opened mainly to the trade for such pre scheduled meetings and was opened to the public next day. This trade fair offered an excellent opportunity for both buyers and sellers to conclude deals to promote travels during the October Golden week in China. More>>

Boom in tea exports value persists

Daily Mirror /Monday, 9 July 2007

January to May data reflects volume down by 8% to 118 million kilos but value up over 11% to Rs. 39 billion

The boom in the value of tea exports continue though the volume factor remains negative as per latest data from the trade.

Forbes Tea Brokers said that in the first five months of this year tea exports in volume amounted 118 million kilos, down by 10 million kilos or 8% while value wise, it amounted to Rs. 39 billion, compared with Rs. 35 billion in the previous year8217¡¯s first five months. This trend of higher value and lower volume continued in the month of May as well.

Forbes aid exports for the month of May 2007 of 23.1 m/kgs reflects a decline of 6.2 m/kgs or 21.2% when compared to the corresponding figure of 29.3 m/kgs. However, the average unit FOB value for 2007 of Rs.355.50 per kg shows a significant gain of Rs.85.35 per kg or 31.59% compared to Rs.270.15 per kg of 2006. This increase in FOB unit value shows a significant gain in US Dollrr terms too i.e. 2006 Unit FOB value was equivalent to approx. US$2.61 whilst 2007 average FOB value is equivalent to US$3.19. Although tea in bulk and tea in packets have shown a significant decline in volumes compared to the corresponding figures in value terms an appreciable gain is evident. More>>

Pakistan to study Sri Lanka gem industry

Daily Mirror /Friday, 6 July 2007

A Pakistani delegation is due to arrive shortly in Sri Lanka to study this country’s experience in developing Pakistan’s gem and jewellery industry.

Arrangements have been made to brief the delegation on the industry’s different aspects such as gem mining, cutting and polishing and jewellery manufacture during the visit, according to National Gem and Jewellery Authority Chairman Hasitha Tillekeratne.

He said this at a discussion with the Pakistan High Commissioner in Sri Lanka Shahzad A. Chaudhry.

This follows a recent meeting the High Commissioner had with Enterprise Development & Investment Promotion Minister Mano Wijayaratna. At the meeting the HC stressed the need for the assistance of Sri Lanka’s state and private sectors in developing Pakistan’s gem and jewellery industry.

Various facilities provided under one roof to gem traders here, drew Mr.Chaudhry’s special attention.

Pakistan’s gem and jewellery industry is still largely at a developing stage. Sri Lankan expertise is expected to play a major role in improving various aspects of the industry in that country. More>>

Natural rubber boom to grow influenced by market fundamentals

Daily Mirror /Friday, 6 July 2007

By N. Yogaratnam ( PhD, London)
Consultant National Institute of Plantation Management

The revised Natural Rubber (NR) forecasts by the International Rubber Study Group (IRSG) indicates that the rubber prices are expected to be at higher levels at least for the next two years on account of the main market fundamentals of actual demand and supply of both NR and SR, although recently the NR prices have been influenced a lot by future trading.The total world rubber consumption is expected to increase by 4.3% to 22.46 million tones during the current year. The growth, according to the latest estimates of International Rubber Study Group (IRSG) will accelerate in 2008 before a possible reversal in 2009 leading to a 3 million tonne rise in global demand for rubber during the 2007 – 09 period. However, all these optimistic observations are based on normal growth projections which can turn upside-down in the wake of eventualities like a drastic slowdown in the major world economies or a natural calamity / political instability.

Global scenario

A significant point is that, in a reversal from last year, consumption of NR is to grow faster than SR resulting in the global SR share of total rubber consumption to decline to 57.7% by 2009.In respect of output, growth in global NR supply is expected to slow down this year onwards before improving slightly in 2009, leaving the average annual growth for the - 2007-2009 period at 3.4% with the total output tounching 10.16 million tones. Meanwhile, Global SR output is expected to register a 4.1% annual growth rate for the next three years to touch 14.04 million tones in 2009. For NR, the relatively more rapid growth in demand in relation to supply will result in a decline in the surplus and a possible deficit during the next three years. The picture of SR demand and supply also points to a global deficit, which may continue for the next few years, according to the IRSG analysis. Fundamentally, all these statistics indicate a growth in rubber demand in the next three years, but demand/supply may be tighter in the SR than in the NR sector. The global SR deflect may continue for the next few years and global stocks are likely to decline by 2009 on the lines of what has occurred since 2002. ( See Box 1 & 2). More>>

FCCISL to take the New Companies Act to provinces

Daily News /Friday, 6 July 2007

Seminar: The Federation of Chambers of Commerce and Industry of Sri Lanka is organising a series of seminars on the New Companies Act for the benefit of the business community in the regions.

The first of the series will be held in Kurunegala on the July 19 at their recently opened Centre, Senior Consultant, FCCISL Jagath C. Savanadasa said.

He said it is significant that this pioneering effort is supported by a top government official in the calibre of Registrar of Companies Deepthi Hettiarachchi who is billed to deliver the keynote address on 'How the New Companies Act promotes Small and Medium Enterprises' and the duties of the company directors and the rates governing Capital of Companies.'

FCCISL will also obtain the services of a well-known Attorney-at-Law, Vipula Silva, a top official of the Ceylinco Group of Companies who will be the other speaker.

He would speak on areas such as 'Financial Reporting Requirements and Evaluation of Solvency of small and medium companies'. More>>

GL to build stronger trade ties with Russia

Daily Mirror /Thursday, July 05, 2007

Ceylon Chamber signs agreement with Russian counterparts

By Damayanthi Hewamanna
The Ceylon Chamber of Commerce together with the Russian Chamber of Commerce has signed agreement to organise missions between Sri Lanka and Russia. A meeting has been organised by Sri Lanka for Minister of Export Development Professor G.L. Peiris to visit Russia in September to see how they can improve the relationship they have with Russia.

The two way trade is continuing to prosper and the Russian Federation State Duma Council is taking action to take this up at the meeting with Minister G.L. Peiris.

The Council’s Head of Development Member Reznik Boris said that they have had a strong relationship with Sri Lanka such as the economic sector and hope to build it up more.

The media representatives from Russia have said that they have tremendously enjoyed their visit to Sri Lanka and they will go back to their country and tell their people as to what sort of a place Sri Lanka is and that not everything that is shown to the is real and they have to see to believe things.

“We talked about several things when we met the President and the Prime Minister, and we have seen that Sri Lanka has a lot of Ports and we are hoping to strengthen the areas in ports as well as fisheries”, Mr. Boris stated. Mr. Boris also talked about how they enjoyed the colourful dances and theatrical plays that they had gone to see and since Moscow is famous for events such as plays and dancing, they would very much like some of them to come to Russia and perform in their country. “Sri Lanka has always been an exotic country yet far away like India for the people of Russia to go for a holiday”, Mr. Boris added. More>>

Watawala Plantations to promote branded teas aggressively globally and locally

Daily Mirror /Thursday, July 05, 2007

“The year 2007 Watawala Plantations AGM has been the most successful in ten years,” says V Govindasamy, Director, CEO of Watawala Plantations Limited.

Watawala Plantations Limited (WPL), a subsidiary of Sunshine Holdings Limited is one of Sri Lanka’s rapidly growing businesses. Announcing the results for the concluded financial year, G Sathasivam, Chairman of WPL said: “During the financial year, we recorded a turnover of Rs 315bn increase in revenue compared to last year’s close of Rs 3.16bn, which is a growth of 11%. We had a profit of Rs 222mn with export revenue reaching a record high of Rs 861mn, contributing 27% of the company’s revenue. In terms of capital expenditure, we have spent Rs 276mn this year. This means reinvesting our money on the company, with the majority of it allocated towards planting new tea, rubber and palm oil as well as improving the standard of our factories. Tea continues to remain the major contributor with revenue of almost 53% of the total revenue. The FMCG business has contributed 13% to the company’s revenue, which is up by 56% over the same period last year. In spite of a considerable increase in the company’s cost of production, it has recorded 8.16% growth in Gross Profit. We have reported a profit of Rs 331mn before interest and taxes this year.” More>>

Dr Amunugama briefs IMF on Lanka’s economic potential

Daily Mirror /Thursday, July 05, 2007

A delegation from the International Monetary Fund met Dr Amunugama, Minister of Enterprise Development and Investment Promotion at the Ministry yesterday .

The team had come to Sri Lanka for the annual Article 4 Consultations. Under Article 4 of the IMF Constitution every Member State of the IMF agrees to be reviewed by the Fund.

The IMF team will study all aspects of a country’s economy such as the exchange rate, interest rates and monetary policy. The team, which is spending two weeks in Sri Lanka is meeting with most of the leading economic institutions and players in the country. It will then prepare a country report that will be discussed and reviewed by the IMF Board. The review is conducted throughout the year.

The IMF delegation consisted of Ms Olin Liu, Deputy Division Chief, Asia and Pacific Department, Dr Uthum Herat, Alternative Executive Director, Ms Marta Ruiz Arranz, Economist, and Ms Nombulelo Duma, Economist. Also present were Navin Dissanayake, Minister of Investment Promotion and Mr. Dhammika Perera, Chairman/ Director General of the BOI. More>>

Six Sri Lankan apparel exporters on business promotion visit to France

Daily News /Wednesday, 4 July 2007

VISIT: Six Sri Lankan apparel exporting companies, namely, Hameedia, Penguin, FGM Lanka, Innovative knitwear, Sanchia and Jubilee visited France from June 25 to 29 to study the French apparel market and establish business links with French apparel importing companies.

The French Federation of Textile Experts arranged for the visiting Sri Lankan business delegation to make presentations on their companies and on Sri Lanka’s apparel industry to the members of the federation.

The presentation was followed by one to one business meetings between the visiting Sri Lankan companies and the members of the Federation.

The Vice President and the head of the international relations division of the Federation were present at this occasion.

About 75 one to one business meetings were held with French companies including leading companies such as Auchan, Camaieu, Les Halles etc. in Paris and Lille where a large numbers of French companies on apparels are located.

A mini showroom was set up at the hotel Sofitel in Lille for the Sri Lankan companies to display their products. More>>

Global warming will affect tea plantations

Daily News /Wednesday, 4 July 2007

Ramani Kangaraarachchi

COLOMBO: There is a potential risk in tea plantations getting severely affected with the anticipated climate change following global warming, Environmental Consultant, Dr. Janaka Rathnasiri told a seminar on Global Warming at the BMICH yesterday.

Addressing on the ‘Vulnerability of tea plantations to climate change’ he said the majority of tea plantations in the most vulnerable regions are low and mid country which belong to smallholders with land extent less than one acre. More>>

CIC Agri biz commences export of 650 m bananas

Daily Mirror /Wednesday, 4 July 2007

CIC Agri Businesses, the trend setter in Sri Lankan Agriculture exported its first consignment of Banana to the Middle East recently.

The Company has tied-up with Dole Food Company, the world’s largest producer of Pineapple and Banana, and is growing a range of tropical fruits for the export market.

Already over 80 acres of Banana have been cultivated in the CIC Seed Farms at Hingurakgoda and Dambulla. The Company expects to export over 650 mt., of Banana before the end of the year. Currently the Company exports 20-25 mt., a week.

The variety of Banana exported is the Cavendish variety which is the most popular Banana variety of the world. The taste of Cavendish is similar to the popular local variety - Anamalu.

Cultivation practices for Cavendish are different to the other local varieties. Post harvest practices like, cutting, cleaning, grading, packing etc., are carried out under strict hygienic conditions and in accordance with the requirement of the buyer Dole Food Products. More>>

Anton to participate in renowned international trade fair

Daily Mirror /Wednesday, 4 July 2007

Anton has been selected as the only PVC manufacturer from Sri Lanka to participate in the most prestigious international plastics and rubber trade fair this year. Participation at the K Messe Dusseldorf Fair to be held this October in Germany is limited, and K-Fair. officials selected Anton following recommendations by the Export Development Board and the Trade Council of the Ministry of Foreign Affairs.

A wide range of Anton products will be displayed at the exhibition, including PVC pipes, door panels, ceiling, cladding, molding and rainwater gutters.

Business Development Manager, St.Anthony’s Industries, Priyantha Wanigaratne said they considered it a privilege to be selected for this event, which brings together all the leading plastics and rubber manufacturers from around the world. He noted that this is an ideal opportunity to showcase the export potential of Lankan-made PVC products.

The brand has earned a reputation for its quality, having achieved both SLS and ISO 9001-2001 status, and has been certified as being compliant with WHO standards. Last year, it was conferred ‘Superbrand’ status. More>>

ICTA concludes Second Round of e-Society Grants

Daily Mirror /Wednesday, 4 July 2007

The Information and Communication Technology Agency of Sri Lanka (ICTA) launched the e-Society Development Initiative under the patronage of His Excellency President Mahinda Rajapaksa to take Sri Lanka into a new era where all sections of society would reap the benefits of ICT. By facilitating more balanced access to information within Sri Lankan society, it is expected that the e-SDI will help in closing the development divide between urban and rural areas and contribute to the broader national objectives of development, growth and peace.

Since its launch two years ago, the Agency has initiated 72 projects under the Community Assistance Programme and 8 projects under the Partnership Assistance Programme. Although it was expected that, even with wide publicity, the response of rural communities to the e-SDI would be marginal in the first year, ICTA received over 190 applications.

By interacting closely with these communities, ICTA has gotten some innovative projects off the ground. These include a “Do- You-Know” contest run across 25 Nenasalas with internet chat which attracted 225 applicants; a project to assist job seekers; creation of local content in local language; remote medical consultation and a host of other projects which have directly addressed the needs of remote rural communities. More>>

Sri Lanka and Latin America: Chile’s fruitful connection

Daily Mirror /Wednesday, 4 July 2007

By Jorge Heine ,

Ambassador of Chile to Sri Lanka

Given its strategic location in the Indian Ocean, between the Lakshadweep Sea and the Bay of Bengal, Sri Lanka is ideally situated to become for South Asia what Singapore is for Southeast Asia, or Dubai for West Asia—a hub, or entrepot if you will—a place where goods from all over the world converge to be distributed to the region, in this case the SAARC countries. The growing trade and investment flows between India and Latin America (Indo-LAC trade was US$ 8 billion in 2006) are proof positive of the degree to which Latin American nations are realizing that South Asia is quickly joining East Asia as another key growth pole for the world.

The role of entrepot requires an open economy, a good infrastructure and the ability to attract business from over the world. A small step in that direction was taken last April in Kandy when Minister of Agricultural Development Maithripala Sirisena and Chile’s Minister of State for Agriculture Cecilia Leiva signed a Memorandum of Understanding opening up bilateral agricultural trade. Ever since the nineteen twenties, when a plague hit Sri Lanka’s rubber plantations and all fruits from Latin America were banned, no fruits from that part of the world had reached Sri Lanka. Eighty years later (on 19 May, to be precise), the first containers of Chilean apples arrived in Colombo, a total of 33 of them spaced over the following weeks, bringing their cargo of Red Delicious and Granny Smith varieties to the Sri Lankan consumer. Though they spend 45 days on the sea, they arrived as crisp and tasty as if just plucked from the tree—such are the miracles of modern cold chain technology. They should also be a harbinger of the grapes, pears, peaches and many other fruits yet to come from Chilean to Sri Lankan shores. More>>

Dr. Amunugama promotes BOI enterprises for solid waste management

Daily Mirror /Wednesday, 4 July 2007

Dr Sarath Amunugama, Minister of Enterprise Development and Investment Promotion held a meeting last week that was attended by senior government officials such as Dr P.Ramanujan, Secretary, Ministry of Urban Development, Mrs D.Wijayathilake, Secretary, Ministry of Planning, Mr. P Abeygunasekera, Additional Secretary, Ministry of Planning, Mr. Gemunu Alawathgama, General Manager of the Land Reclamation and Development Corporation. Chairman/ Director General of the BOI Mr. Dhammika Perera also participated at the meeting. Also present at the meeting were six companies that have applied with the BOI to set up waste management enterprises.

In view of the considerable problems of waste disposal faced in Colombo and most other major cities in the island, Dr Amunugama instructed the BOI to expedite the implementation of solid waste disposal projects. He requested the other state institutions to lend their support to such projects. “ A coordinated approach involving all stakeholders is the key to success in this area” he said. More>>

Small businesses qualify for GMP certification  

Daily News /Tuesday, 3 July 2007

Ruwanthi Abeyakoon  

Certification: The Sri Lanka Standards Institution (SLSI) and the Ministry of Science and Technology, will grant Good Manufacturing Practice (GMP) certification for small businesses, Marketing and Promotion Director, SLSI, Wasantha Meewaddana told the Daily News.

"This is another step forward toward the development of small entrepreneurs of the country, keeping in pace with the Mahinda Chinthana Programme.

Minister of Science and Technology Prof. Tissa Vitarana launched the Vidatha programme with a long-term vision to upgrade the small and medium sector entrepreneurs supporting the development of country and envisaging that they are the majority of our businesses. Supporting this programme, SLSI assisted some selected small businesses toward GMP certification.

Expenditure for the programme was partly sponsored by the Ministry," Meewaddana explained. More>>  

BOI signs agreement with Brandix for design and product development centre  

Daily News /Tuesday, 3 July 2007 

NEW PROJECT: The BOI signed an agreement with Brandix Lanka to set up a one stop shop Design and Product Development centre last week. This will be a state of the art facility valued at US$ 27 million which will provide employment for around 10,000 workers.

The new facility will be located at Kerawalapitiya, Wattala. Brandix in its bid to transform the apparel industry from a "manufacturer" to a "fully integrated service provider", will apply a revolutionary strategy to be a one stop front end service center.

Brandix is positioning Sri Lanka to become the hub of the front end apparel service in South Asia providing an effective counterbalance to regional competitors.

The agreement was signed by Dhammika Perera, Chairman/Director General of the BOI and Director Brandix Lanka Feroz Omar. More>> 

Ceylon Chamber to launch eCertificate of Origins 

Daily Mirror /Tuesday, 3 July 2007 

The latest move of the Ceylon Chamber of Commerce in its service improvement drive is to enhance the present Certificate of Origin system to a fully secured online eCO, which is set to be launched at the Chamber on July 9.

Electronic issuance of Certificates of Origin (e-CO) allows Exporters to apply electronically directly from their PCs via the Internet. This system is expected to save time and costs, reduce paperwork and human error and eliminate delays to the users.

The Ceylon Chamber of Commerce will initiate the issuance of Certificates of Origin in two Phases. In the first Phase, which will begin with the launch on the 9th of July, the Exporters are allowed to submit their e-CO via a secured e-mail system and the Ceylon Chamber of Commerce (CCC) will print the copies in the number required and register the document as usual, complete with stamps and signatures. This system will also allow Exporters to forward their documents to the Chamber any time during the day and collect the registered documents at a time convenient to them, without the hassle of waiting. The Chamber will continue to offer the standard service as well as the eCOs and will be ready to move towards paperless Certificates of Origin, which is the second Phase of the CCC e-CO project, by the beginning of 2008. More>> 

FCCISL partners with CBI Netherlands to promote exports to EU 

Daily Mirror /Tuesday, 3 July 2007 

The Federation of Chambers of Commerce and Industry of Sri Lanka (FCCISL) recently entered into an important partnership agreement with the Centre for the Promotion of Imports from developing countries (CBI) of the Netherlands.

The purpose of the partnership is to contribute to creating economic development through direct support to the export sector and their intermediate support organisations in Sri Lanka. The partnership aims at creating synergies between the two organisations for the benefit of their clients and is built on the common mission of the two organisation to contribute to trade-led development by strengthening the competitiveness of Small and Medium Enterprises (SMEs) and promoting their participation in international trade.

The Centre for the Promotion of Imports from developing countries (CBI) is an agency of the Netherlands Ministry of Foreign Affairs, under the responsibility of the Minister for Development Co-operation. More>>  

Pakistan to study Sri Lanka’s gem industry techniques

Daily News /Monday, 2 July 2007

DELEGATION: A Pakistani delegation is due to arrive shortly in Sri Lanka to study this country’s experience in developing Pakistan’s gem and jewellery industry.

Arrangements have been made to brief the delegation on the industry’s different aspects such as gem mining, cutting and polishing and jewellery manufacture during the visit, according to National Gem and Jewellery Authority Chairman Hasitha Tillekeratne.

He said this at a discussion with the Pakistan High Commissioner in Sri Lanka Shahzad A. Chaudhry. This follows a recent meeting the High Commissioner had with Enterprise Development and Investment Promotion Minister Mano Wijayaratna.

At the meeting the HC stressed the need for the assistance of Sri Lanka’s state and private sector in developing Pakistan’s gem and jewellery industry. Various facilities provided under one roof to gem traders here, drew Chaudhry’s special attention. More>>

CIC Agri Businesses commences exporting banana

Daily News /Monday, 2 July 2007

EXPORT: CIC Agri Businesses, exported its first consignment of Banana to the Middle East recently.

The Company has tied-up with Dole Food Company,the world’s largest producer of pineapple and banana, and its growing a range of tropical fruits for the export market.

Already over 80 acres of banana have been cultivated in the CIC seed farms at Hingurakgoda and Dambulla. The company expects to export over 650 mt., of banana before the end of the year. Currently the company exports 20-25 mt., a week.

The variety of banana exported is the cavendish variety which is the most popular banana variety of the world. The taste of cavendish is similar to the popular local variety - Anamalu.

Cultivation practices for cavendish are different to the local varieties. Post harvest practices like, cutting, cleaning, grading, packing etc., are carried out under strict hygienic conditions and in accordance with the requirement of the buyer Dole Food Products.

The mother plant of cavendish was imported from the Philippines. The Company used these mother plants for the propagation of further plants. In addition to Banana, CIC Agri Businesses is also cultivating pineapple and melon in their farms for exports. More>>

Lanka urges for apparel concessions from US

Daily Mirror /Monday, 2 July 2007

Sri Lanka has made a strong case for preferential access for its apparel products to enter the US market.

This was mentioned at a series of meetings in Washington by Export Development and International Trade Minister Professor G.L. Peiris.

In an address to a combined gathering of the United States Chamber of Commerce and the American Apparel and Footwear Association, the Minister drew attention to the singular achievements of the apparel industry in Sri Lanka during the last few years.

He pointed out that, beginning from modest origins with inadequate facilities and infrastructure, Sri Lankan industry is today catering for the most sophisticated markets of the United States, and is a supplier for such prestigious brands as Speedo, Abercrombie and Fitch, Ann Taylor, Victoria’s Secret and Next.

The impressive achievements with regard to design, marketing and product development, he said, had been accompanied by a deep commitment to social accountability and preservation of the environment. More>>

EU shipping braced for new Customs procedures

Daily Mirror /Monday, 2 July 2007

Shippers, and their freight forwarding partners in the EU, have been warned that they should conduct an impact self-assessment to ensure procedures and documents are in place before deciding whether to apply to become an ‘Authorised Economic Operator’ (AEO), when this becomes possible from July 1.

Speaking at the recent Security Without Barriers to Trade conference, Colin Davis, senior policy advisor of the UK’s HM Revenue and Customs, with specific responsibility within HMRC over the introduction of AEO status, said: “The non-mandatory AEO system must be up and running by 1st January 2008 and companies can start applying from 1st July.

“It is not possible at this stage to accurately predict the level of take up by UK import & export traders, freight forwarders, customs brokers etc, but HMRC is unlikely to be ready to start issuing AEO certificates before March 2008 at the earliest.”

Rather than applying on 1st July and risk being under prepared, Mr Davis suggested that interested parties should study the application form, questionnaire and explanatory notes, which will be available on HMRC’s website later this month and conduct an internal audit of the procedures that will be examined by HMRC during the accreditation process. More>>        

First ever international ornamental fish exhibition in October

Daily Mirror /Monday, 2 July 2007

By Rebecca Fleming

Preprations are underway to hold Sri Lanka’s first ever international ornamental fish exhibition, Aqua Asia 2007 aiming at putting Sri Lanka on the world map in the ornamental fish, aquatic plants and accessories from October 11-14 at the BMICH.

This exhibition is organised by the National Aquaculture Development Authority of Sri Lanka (NAQDA) in collaboration with Export Development Board and the Lanka Exhibition and Conference Services Pvt. Limited keeping pace with the modern day needs of both local breeders and the exporters facing various obstacles in reaching out for the world market.

Director General of the National Aquaculture Development Authority Dr. D.E.M Weerakoon speaking at the inauguration ceremony of Aqua Asia 2007 said that the main aim of this exhibition is to minimize the problems between breeders and exporters while attracting the foreign buyers.

According to him there had been only limited experience exhibitions held earlier and none of this scale had been organised before. “We are planning to double our exporters in the next few years” he added further.

Chief Guest Minister of Fisheries and Aquatic Resources, Felix Perera addressing the gathering at the inauguration ceremony said that the exhibition is organised keeping pace with the present needs. More>>  

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