Archives Trade News

Port restrictions on import of tea under ISLFTA removed

Daily News /Friday, 29 June 2007

COLOMBO: The Government of India has issued Custom Notification, No. 75/2007 dated 5th June 2007 giving effect to the removal of port restrictions limiting imports of tea through two ports namely, Calcutta and Cochin imposed by India on import of tea from Sri Lanka under the Indo-Sri Lanka Free Trade Agreement (ISLFTA).

Sri Lanka has been persuading India to remove this entry point restriction enabling Sri Lankan exporters to utilise the Tariff Rate Quota of 12.5 million Kgs.

At the 9th Round of Technical Level Negotiations under the Comprehensive Economic Partnership Agreement (CEPA) between India and Sri Lanka held from March 29 to 31, 2007 Colombo, India agreed to the Sri Lankan request.

Since India has completed necessary formalities, a Sri Lankan tea exporters now can export tea to India under the ISLFTA without any port restriction, states a press release from the Ministry of Export Development and International Trade.

India and Sri Lanka are also working to finalize procedures for operationalisation of import of 3 million pieces of garments at zero duty without any restriction on sourcing fabrics and entry ports. More>>

US-Potential market for ornamental fish

The Island /Friday, 29 June 2007

By Ifham Nizam 

Despite United State being the leading exporter of apparel from Sri Lanka, there has been no effort made to tap the US market for ornamental fish from Sri Lanka, said Fisheries and & Aquatic Resources Minister Felix Perera. 

Minister Perera added that of Sri Lanka’s four per cent share in the world market of ornamental fish, only one per cent goes to the United States. 

He disclosed this at a discussion with ornamental fish exporters in connection with the forthcoming Aqua Asia 2007 exhibition in Colombo recently. 

The minister added that the over all market cloud be increased up to 10 per cent by 2008. “ Certainly there would be a huge progress in foreign investment. You could work towards achieving this task: it is not easy but achievable.” 

He believes that fish breeders and exporters in Sri Lanka must attempt to increase their fish production especially to the US market.

He pledged that he would do his level best from the government side to assist fish breeders and exporters. 

National Aquaculture Development Authority (NAQDA) Director General D E W Weerakoon said that Aqua Asia 2007 will put Sri Lanka on the map in the ornamental fish, aquatic plants and accessories industry as this will be an exhibition that will not only attract foreign buyers, but also exhibitors. He added: “ We are opening it up to foreign exhibitors because we want to expose our local breeders and exporters to international standards so that they will be able to gauge the competition in the world market. We are planning on doubling our exports in the next five years.” 

He added that the decision to hold the exhibition was made by NAQDA as they saw an opportunity in developing the ornamental fish market into a premium foreign exchange earner. 

According to him, currently the exports in this sector bring in foreign exchange close to a billion rupees, but they believe that with right marketing techniques, this amount could grow exponentially. More>>

BOI promises support for MAGIC apparel trade show

Daily Mirror /Friday, 29 June 2007

Enterprise Development and Investment Promotion Minister Dr Sarath Amunugama, addresing leading personalities in the garment industry spoke of support that could be obtained through the BOI will be providing to MAGIC, the leading apparel and sourcing trade show in North America. He confirmed that his Ministry would actively promote the event through the BOI.

At this event, which will be held in Las Vegas at the end of August, a Sri Lanka pavilion will be exhibited. The event is organized by MAGIC International Advanstar Communications Inc.

It is a very important event for the apparel trade because over 30 countries are represented, thus offering entrepreneurs the opportunity to meet new trading partners. The event is important, as MAGIC buyers have in the past made purchases worth US$181 million. Often Vice Presidents of companies attend the event.

Dr Amunugama said, stressing the strategic importance of the garment industry, “The BOI is committed to promote the apparel industry manufacturers for the high labour standards maintained.”

The Minister also spoke of how effectively Sri Lankan products, notably garments, had gained access to markets in the European Union for having maintained high standards in labour rights and working conditions. More>>

SMEs lured to expand business through strategic management

Daily Mirror /Friday, 29 June 2007

SIYB association of Sri Lanka in collaboration with the International Labor Organization’s Enter Growth office at Kurunegala organized an awareness presentation of EYB (Expand Your business) for SME entrepreneurs, a strategic management package for growth oriented entrepreneurs at the Sky Blue Hotel, Kurunegala on 11 May 2007.

The objective of this presentation was how the entrepreneurs could obtain practical knowledge and utilize the skills to expand their business and also how they could accomplish their needs through EYB (expand your business) training modules.

The manager of ILO enter growth office Shamalee Randeniya said that the SME entrepreneurs in the Kurunegala district are showing gradual progress. This is because they are faced with different problems such as insufficient funds. lack of professional skill,limited guidance in entrepreneur development of their business and to qualify themselves into the export market Further she said that the EYB skill development program introduced by the SIYB association of Sri Lanka provides the required techniques to the entrepreneurs to overcome the obstacles that come in their way in an effective manner to take forward their business successfully.

This EYB (Expand Your business) consists of 5 modules They are Strategic Management, Human Resources Management, Marketing Management, Operational Management and Financial Management. The entrepreneurs are opted to select their desired module that will be applicable to their needs of enhancing their business. More>>

Winter Buying expected to boost Colombo Tea Auction Demand

Daily Mirror/Tuesday, June 26, 2007

Lanka Commodity Brokers Ltd, in their latest Market Report has predicted that Winter buying for Russia will commence in July and this buying continues up to around mid October. Russian demand will certainly bring about a much desired change in the Ex-Estate sales which saw lack luster demand during the past three auctions. Bulk purchases of BOPF and BOP by shippers to Russia will help to strengthen the price structure of the below best and plainer category High Growns. Additionally, the Uva Quality season is also expected to herald in the much looked forward to flavoury teas which type of tea is peculiar to Sri Lanka alone. The Uva Seasonal teas will be on offer possibly by August and the quality levels would show a progressive improvement up to the end of September. During the Uva Season, International Buyers of Top Quality Teas from Japan and Germany concentrate on the Colombo Offerings to secure their orders, and prices quite often enjoy a very highly competitive level of bidding, resulting in much dearer prices. More>>

Alankara to show Lankan buyers the trick of selecting the perfect diamond

Daily Mirror/Tuesday, June 26, 2007

Alankara, renowned for its exquisite diamond platinum jewellery, will hold a workshop to educate buyers on what to look for when selecting the perfect diamond, today at the Cinnamon Grand. The workshop will also feature the launch of the Alito Collection from Israel.

The Alito Collection from Israel a collection of exquisite diamonds set in classic and modern settings, the collection is stated to be a feast to the beholder. Guests will have the opportunity browse through the Alito Collection which will be exclusively sold at all Alankara outlets.

A leader in the industry, Alankara believes that every customer has a right not to be swindled when purchasing a diamond, which would last a lifetime. The workshop is intended to enlighten customers on the secrets of the stone.

The Diamond workshop scheduled for this evening will host guest speaker Mr. Nilam Alawdeen, from Japan. Prestigious gemologist and dealer of precious stones, Nilam Alawdeen is currently the Chairman of the Japan Jewelry Association (International Section). He will share insights in diamond fashion, the ‘must knows’ when selecting a diamond and also talk of the latest fashions and trends in the diamond and gem industry. More>>  

Lankan companies invited to Build Asia Exhibition in Pakistan

Daily Mirror /Monday, 25 June 2007

Pakistan has positioned itself as a regional hub bordering the Middle East and Central Asian Republics which are all booming economies in Asia. The Build Asia 2007 exhibition featuring companies supplying and providing services to the Building and Construction Industry will be one of the most promising and enduring exhibitions to be held from August 28 to 30 at the Karachi Expo center in Pakistan. This exhibition will offer stall holders a strategic launch pad to access the vibrant Pakistan, Afghanistan, Middle East and Central Asian markets. The exhibition area in this prestigious Karachi Expo Center is 9000sq.meters and will attract over 100,000 visitors.

The exhibition will provide an excellent business opportunity for Sri Lankan brand leaders supplying products, machinery and services to the building and construction industry to enter Pakistan, a fast growing market and a regional hub for the Middle East and would provide them with the opportunity of sourcing distributors, agents and JV partners. This exhibition has already attracted big time construction companies from Pakistan, Dubai, Afghanistan and Malaysia. More>>

Sri Lanka Chamber of Garment Exporters holds AGM

Daily News /Monday, 25 June 2007

AGM: Sri Lanka Chamber of Garment Exporters held their 15th AGM at the Mount Lavinia Hotel recently amidst a large gathering of professionals, industrialists and members of the Chamber a press release states.

Deepal Nelson, the President who was re-elected as the President of SLCGE at this AGM lamented that “history after all is history and an industry without a background has no foundation.

Those who do not learn from history are doomed to repeat it. Sri Lanka’s textiles and clothing history has numerous cases of success and failure.

It was his humble wish that we do not repeat the failure at the time of re-engineering the industry. It is of paramount importance that we understand our business in the context of current situation both locally and world over”.

Nelson declared a methodology for his members as to how they should face the future challenges to sustain their market share in the export of garments. Nelson finally said, that there is lot of potential for the clothing industry to grow but we need to find the art of getting in to the right track.

CEO Brandix Lanka Ashroff Omar and the past President of Joint Apparel Associations Forum the guest speaker at the AGM said that present day consumer is sophisticated, stores are having deflationary price trends, marginalizing the retailers but discount recipients are leading the way, demand for innovation, increased demand for test orders, need for smaller and nimble production units and therefore what is the role for small manufacturers? More>>

CCISL to conduct “Open Forum”

Daily News /Monday, 25 June 2007

FORUM: The Chamber of Construction Industry will conduct an “Open Forum” immediately following it’s 04th Annual General Meeting which will be held on June 29 2007 from 6.00 p.m. at the “Crystal Rood - Lower Room” of the Hotel Taj Samudra, No. 25, Galle Face Centre Road, Colombo 03.

This “Open Forum” is aimed at providing an opportunity for Industry Stakeholders to air their grievances in relation to issues pertaining to the Construction Industry and the Present Situation prevailing in the Country.

An eminent apolitical personality as well as a high powered panel of Industry Professionals will be in attendance at this forum.

All industry stakeholders are invited to be present by prior registration at the Chamber Secretariat. More>>  

Dr. Amunugama urges gems and jewellery sector to target $ 1 b exports

Daily Mirror / Wednesday, June 20, 2007

Members of Sri Lanka Gem and Jewellery Association (SLGJA) met with Minister of Enterprise Development and Investment Promotion Dr. Sarath Amunugama yesterday to discuss progress made in Gem and Jewellery sector.

SLGJA Chairman Chanaka Ellawala stated that annual exports of US $ 200 million have been achieved. Minister Dr. Amunugama advised the Association members to target exports of US $ 1 billion assuring them of the Government’s continued support in achieving this objective.

At the discussion the Association suggested the establishment of a gem laboratory in order to encourage foreign investment in the Gem and Jewellery Sector.

Representatives from SLGJA requested from the Minister to make representation to the banks to initiate lending for small and medium scale entrepreneurs in the gem trade. They also have discussed about the issues of gem re-exports with the Minister.

Minister of Enterprise Development Mano Wijerathna, Mr.Dammika Perera, Chairman, BOI and Mr. A.M. D. Kulasekera, Deputy Director General (Investment), BOI also participated at the meeting. More>>

Sri Lanka Entrepreneur of the year 2006

Daily Mirror / Wednesday, June 20, 2007

The Federation of Chambers of Commerce and Industry of Sri Lanka (FCCISL) the apex body of the Chambers of Commerce and Industry of Sri Lanka will recognize and honour Sri Lanka’s entrepreneurs for a twelfth year for their outstanding achievements at provincial and national levels at the Entrepreneur of the Year Awards to be held on November 30 at the BMICH.

Entrepreneurs are the cornerstones of a vibrant and booming economy. Their unique blend of skills constitutes a non quantifiable contribution and needs to be recognized, rewarded and nurtured for socio economic advancement and sustainable development. Mindful of the importance of recognizing the valuable contribution of our entrepreneurs, the “Sri Lanka Entrepreneur of the year” programme, Sri Lanka’s highest national honour to the business sector, has been designed to recognize the efforts of all categories of entrepreneurs from every part of Sri Lanka. This unique programme is thus a tribute to local entrepreneurs by the nation, in appreciation of their contribution to the economic development of the country.

The launch of this prestigious award ceremony took place last month in the presence of officials from the Chamber as well as representatives of Suntel Limited, the strategic partner for the event. More>>

Gems and jewellery in dazzling 9.8 per cent growth

Daily News / Wednesday, June 20, 2007

Anjana Samarasinghe

GEM INDUSTRY: Sri Lanka has recorded 9.8 percent growth in the gem and jewellery sector during the first five months of this year.

According to National Gem and Jewellery Authority (NGJA) the country has earned Rs. 19 billion from January to May this year through gem and jewellery exports. It was Rs. 17 billion last year and this is a 9.8 percent increment compared to the same period last year.

A senior official of NGJA told the Daily News that diamond re-exports have contributed Rs. 12914.8 million for the total earnings through gem and jewellery exports and this has shown 9.5 percent growth compared to the same period of last year.

Gem exports has contributed Rs 4754.3 million during the first five months of this year to the total earnings and this was a 4.6 percent growth compared to the same period of last year. Last year it was recorded as Rs 4485.5 million he said.

Coloured stones re-exports have recorded 35.6 percent growth while bringing Rs. 278.8 million to the country. Geuda exports brought Rs. 87.5 million to the country and last year this segment contributed Rs 77.7 million during the first five months. The official said that there is a significant growth in both diamond jewellery exports and gem-studded jewellery exports. More>>

Ban on scrap metal exports boosts steel industry

Daily News / Wednesday, June 20, 2007

Anjana Samarasinghe

STEEL INDUSTRY: The local steel industry has revived by the ban imposed on scrap metal exports from Sri Lanka. The Chairman of the Foundry Development Services Institute (FDSI), M. Samarasinghe told the Daily News that the ban on scrap metal works well for the local steel industry. Now industrialists could find sufficient raw material through scrap metal.

At present scrap metal prices remained at Rs.350 in the local market. Before banning scrap metal exports, industrialists suffered due to lack of raw materials and prices of the raw material peaked.

The Industrial Development Board (IDB) is also providing scrap metal for selected metal industrialists for a lesser price.

However some metal industrialists sell scrap metal purchased from the IDB to scrap metal traders for a higher price without utilizing them for manufacturing brass and other metal products. Most of the small-scale industrialists involve in this he said. More>>

Ceylon Chamber and Riyadh Chamber in co-operation agreement

Daily News / Wednesday, June 20, 2007

At Sri Lanka Economic Summit 2007:

Agreement: The Ceylon Chamber of Commerce (CCC) which concluded its second successful Sri Lanka Economic Summit, made use of this opportunity to enter into a co-operation agreement with the Riyadh Chamber of Commerce and Industry (RCCI).

Secretary General of RCCI Hussein A Al-Ather was not only one of the many overseas participants who attended the 2007 Sri Lanka Economic Summit organized by the CCC, only overseas Chamber representative to attend this event.

The CCC’s network extends from Regional Chambers to Overseas Chambers and this was the 62nd MOU to be signed with an overseas Chamber.

Secretary General/CEO Prema Cooray, signing the agreement on behalf of the CCC, whilst expressing his gratitude to Al-Athel for his presence at the 2007 Economic Summit said’ this would be the commencement of establishment of links between our Chambers and I am confident that this co-operation agreement we have entered into today, would lead to more partnerships and development of mutually beneficial trade and economic relations between Sri Lanka and Saudi Arabia’. More>>  

Sri Lanka to figure in Global SME Trade Fair

Daily News/Tuesday, 19 June 2007

Anjana SAMARASINGHE

TRADE FAIR: Sri Lanka is to participate in the Global SME Trade Fair which will be held from September 6 to 8 in Kuala Lumpur, Malaysia. The local participation at the fair is organised by the Sri Lanka - Malaysia Business Council (SLMBC) of the Ceylon Chamber of Commerce.

The Small and Medium Enterprises International Cooperation Association of Malaysia (SMEICAM) and the Kuala Lumpur Malay Chamber of Commerce will organise the Global SME Trade Fair.

President of the SLMBC Dr. M. Rohitha Silva said at a press conference, which was held last week that nearly 25 local companies now have confirmed their participation in the fair.

Malaysia is the gateway to the Asia Pacific region, which consists of many Asian economies that are vital market for local exporters. SLMBC will organize one to one business meetings for local participants with the potential buyers in Malaysia.

“Currently we are exploring possibilities of providing financial assistance for participants through the government authorities. More>>

Industry competitiveness in SAARC region should be enhanced - Minister

Daily News/Tuesday, 19 June 2007

K.A. Perera, Wadduwa Special Correspondent

ECONOMIC SUMMIT: The Ceylon Chamber of Commerce Economic Summit 2007 - in partnership with the Board of Investment of Sri Lanka was held from June 6 to 8 at the Cinnamon Grand, Colombo.

Industrial Development Minister Kumara Welgama said: The businessmen and industry Chambers should get involved in national policy development in a more meaningful manner.

Since the government appreciates the role played by the private sector chambers, I invite them to join hands with the Government in country's development, Minister Welgama said.

At this session on industrial growth and competitiveness, as the Minister of Industrial Development, I would like to focus the importance of competitiveness in the industrial sector and highlight certain initiatives, my Ministry has taken in this regard. More>>

FTA to transform bilateral relations, says Alok Prasad

Daily Mirror/Tuesday, 19 June 2007

By Sunimalee Dias

The ambitious undertaking agreed upon in the Indo Lanka Free Trade Agreement (FTA) is expected to transform bilateral relations between the two countries.

There were about 4000 goods agreed upon under the FTA and with the latest discussions there was possibility of increasing imports by 10 times and there was a need to narrow the gap through large untapped export potential available, the India High Commissioner Alok Prasad said.

He made these observations at the recently concluded Sri Lanka Economic Summit 2007 addressing business professionals of varied fields who were gathered for the three day conference.

In the tourism industry it was pointed out that there was much opportunity within the region as Sri Lanka had cheaper rates compared with India.

In this respect, it was asserted that Sri Lanka stood to gain with more business conferences and tourists in general opting to travel here as opposed to a country as India. More>>

Lankan diaspora link for UK partnerships for trade, investment

Daily Mirror/Tuesday, 19 June 2007

Closer ties with the Sri Lankan diaspora in Britain would open new partnerships and lay the foundations for the next generation of trade and investment according to British High Commissioner Dominic Chilcott.

Speaking of British and Sri Lankan trade relations Mr. Chilcott stated that the Sri Lankans living in Britain would have more “motivation” to form trade partnerships with their counterparts here than other groups and a better understanding of the local mindset plus economic situation would go a long way to cementing that relationship. He added that the children of that diaspora would also carry on the same tradition, thus fuelling long term growth.

Mr. Chilcott during his address at the recently concluded Sri Lanka Economic Summit pronounced Information and Communication Technology (ICT), education and ports as being the three main sectors that can have bilateral partnerships with oil and gas, textile and tourism bringing up the rear. More>>

China hails persons dedicated for bilateral friendship with Sri Lanka

Daily Mirror/Tuesday, 19 June 2007

On the occasion of the 50th anniversary of the establishment of China - Sri Lanka diplomatic relations and year of China - Sri Lanka Friendship, the Chinese People's Association For Friendship with Foreign Countries (CPAFFC) specially set Award of contributons to China - Sri Lanka friendship for 15 Sri Lankan Personages, at the Bandaranaike Memorial International Conference Hall (BMICH) recently with the initiative of the Prime Minister of the Democratic Socialist Republic of Sri Lanka Ratnasiri Wickramanayaka.

The awards were contributed by the vice Chairman of the Chinese People's Association for Friendship with Foreign Countries Mr. Wans Yunze.

A special team of representatives initiated by Mr. Wang Yunze from the Chinese People's Association for Friendship with Foreign Countries, arrived in Sri Lanka specially for this occasion.

Dedication in various spheres, towards enhancing bilateral friendship between both countries was taken into consideration for the contribution of these awards and at the time of celebrating 50 years of diplomatic relation between Sri Lanka and China, persons who contributed for the cause of goodwill and friendship between both countries through various spheres were awarded at the ceremony. Mr. Nalin Aponso, the Secretary General of the Sri Lanka - China Young Journalists Forum was also recognised with an award for his dedication in various spheres for the friendship between both countries and became the first ever Youngest Sri Lankan to be contributed with such an award. More>>

Sri Lanka China Biz Council members clinch export orders at Kunming Fair

Daily Mirror/Tuesday, 19 June 2007

The Sri Lanka – China Business Council (SLCHBC) members who participated at the Kunming Fair for the first time returned to Sri Lanka with a success story. The Council which functions under the aegis of the Ceylon Chamber of Commerce took advantage of the opportunity offered by the Kunming Fair organizers not only to lead a delegation to Kunming Fair but also to showcase the Sri Lankan products. The seven member delegation which was lead by Mr Shamil Mendis, President, of SLCHBC and Deputy Chairman of Delmege Forsyth & Co. (Exports) comprised Mr. Gamini Kumarage, Managing Director and Mr. Thusith Jayasuriya, Manager – Exports of Delmege Forsyth & Co. (Exports) Ltd, Mr. Mahinda Wanniarachchi and Mr. P Samantha Ratna Kumara, Directors of Ceylon Fresh Teas (Pvt) Ltd. Mr. B M A Chinthaka Wegapitiya, Manager- Marketing, Laugfs Corporation (Coir) Limited, and Mr. J M Jauffer, Chairman, U S Shipping & Cargo Services (Pvt) Ltd.

The stalls were centrally located in a prime area within the International Pavilion which attracted hundreds of visitors. Though it was not a sector specific trade fair, the entire delegation was successful in establishing useful links, some of which even resulted in entering into agreements for export orders. The delegates took advantage of the potential for coir fibre in the Yunan Province by exhibiting coir fibre products which reaped successful results. Mr. Gamini Kumarage, Managing Director of Delmege Forsyth & Co. (Exports) speaking of his experience stated ‘ as far as Delmege is concerned, we are very pleased with the outcome. We not only received many enquiries but also expect to sign an agreement for export of coir fibre’. More>> 

Rubber industry bread-winner for 500,000 families

Daily News / Friday, 15 June 2007

Ramani Kangaraarachchi

COLOMBO: The Rubber Industry which is 130 years brings foreign exchange worth more than Rs 50 billion annually and it is the bread-winner of 500,000 families in the country.

An average rubber smallholder can earn Rs.35,000 per month in addition to the other benefits, said Director Rubber Research Institute Asoka Nugawela. He was addressing the Rubber Smallholders in the Western Province at the Mahaweli Centre recently.

He said one kilo of rubber is about Rs. 200 today and the farmers could collect rubber 25 days a month for 24 years and at the end he can sell timber as well.

Therefore rubber smallholders should be encouraged by these advantages. The rubber tree also remove Carbon Dioxide creating a healthy environment, Nugawela said.More>>

Inventors Fund to be re-activated

Daily News / Friday, 15 June 2007

COLOMBO: The Inventors and Innovators Fund is to be re-activated to assist local inventors and innovators in developing and marketing their products.

The proposal to reactivate the Fund submitted by Enterprise Development and Investment Promotion Minister Dr. Sarath Amunugama received Cabinet approval on Wednesday.

The Fund will be implemented through commercial banks with the aim of making financial assistance available to inventors and innovators through loans on affordable terms.

“The Government’s objective is to assist the local inventors and innovators to develop, promote and market their inventions and innovations,” Cabinet Spokesman Minister Anura Priyadarshana Yapa said. Rs. 50 million has been allocated from the 2007 budget for the Fund which ceased to operate in 2004 due to a shortage of funds. More>>

Exports slacken, Imports soar in April

Daily Mirror / Friday, 15 June 2007

Exports in April slumped to its lowest growth in percentage and second lowest growth in value terms for this year while imports has recorded its highest growth in percentage and in value terms.

As per the Central Bank export earnings grew by 6.8 per cent to US dollars 536 million in April, 2007, compared with a growth of 22 per cent recorded in April, 2006.

Exports growth in the previous month was at its highest for the year at 17.7%; while April posted earnings amounting to US$536 million it was the second highest in value terms compared to February posting earnings amounting toUS$590.5 million. More>>

Korean govt’s help urged for Lanka’s gems and jewellery

Daily News /Wednesday, 13 June 2007

A. G. Piyadasa

EXPORTS: Steps would be taken to seek the assistance of the Korean government to develop gem and jewellery exports of Sri Lanka, said Sri Lanka’s ambassador to Korea, Asitha Perera, when he met Sri Lanka Gem and Jewellery Authority Chairman Hasitha Tillekeratne and his deputation from the Sri Lanka Gem and Jewellery Association recently.

The ambassador said he would explore the possibility of getting duty concessions so that the opportunity for Sri Lanka’s gems and jewellery in the Korean market could be increased. Further, arrangements would also be made to open up an exhibition in Korea in September this year for Sri Lanka’s exports, with special emphasis on gems and jewellery.

Sri Lanka Gem and Jewellery Association Chairman Chanaka Ellawala, Vice Chairman (Gem Sector) Sheriff Rahuman and Executive Committee Member M. Imthizam stressed on expanding the opportunity for Sri Lanka gems in the Korean market, the importance of easing the difficulties, specially those caused by the tax policies of the Korean government. More>>

BOI showcases Sri Lanka to visiting delegation from Busan Chamber of Commerce and Industry

Daily News /Wednesday, 13 June 2007

INVESTMENT OPPORTUNITIES: The BOI conducted a presentation highlighting the opportunities Sri Lanka offers to investors to a delegation from the Busan Chamber of Commerce and Industry. This was a group of 39 leading business personalities from the industrial city of Busan.

Dhammika Perera, Chairman/ Director General of the BOI welcomed the delegation and made a strong case for Korean investment in Sri Lanka. In his address he spoke of the close relations between Sri Lanka and the Republic of Korea which are celebrating the 30th anniversary of Diplomatic Relations.

He also noted that the Republic of Korea is one of the major investors in Sri Lanka and that already 73 companies from that country have set up enterprises in Sri Lanka. The value of Korean investment in Sri Lanka is US$ 72 million and the companies employ 13,180 workers. More>>

Lanka trade agreements an impetus for investing here
says Bogollagama

Daily Mirror /Wednesday, 13 June 2007

“Free Trade agreements with India and Pakistan and the concessions under the GSP plus scheme offered by the European Union makes Sri Lanka a location where investors can take advantage of” said Minister of Foreign Affairs Rohitha Bogollagama addressing the visiting Trade and Investment delegation from Busan Chamber of Commerce and Industry.

The delegation led by Mr.Jung Taek Shin called on the Minister yesterday at the Ministry of Foreign Affairs.

There is a market of 1.3 billion people in South Asia out of which 400 million coming from the Middle Class within the easy reach of Sri Lanka said the Minister. From the political, geographical and cultural assessment Sri Lanka is called the Centrepoint of the world said Minister Bogollagama.

He further said that Sri Lankans are happy to work in Korea and “we like to have a reciprocal arrangement where you can train the people provide them the necessary language skills here and then get them to work in your country.”

The Minister also said that it is necessary to have direct air links between the two countries and talks will begin soon on the air link he said. More>>

Demand for natural rubber rises

Daily News / Tuesday, 12 June 2007

Ramani Kangaraarachchi

COLOMBO: The demand for Sri Lankan natural rubber has gone up as never before and today's prices for rubber will be stable for another 25 years.

Therefore we have to develop the rubber industry to meet the future demand and earn foreign exchange, Petroleum Resources and Development Minister A.H.M.Fowzie said.

He was addressing the Rubber Smallholders in Western Province at a workshop organised by the Ministry of Plantation Industries at the Mahaweli Centre yesterday (11) He said that those who removed rubber trees and planted other crops last year must be regretting their mistake.

With reference to his recent visit to Iran he said that a car manufacturing company there wanted a huge quantity of rubber for tyres. There is a high demand from China as well.

He appreciated the effort of Plantations Industries Minister D.M.Jayaratne in getting Cabinet approval for an allocation of Rs.30 million for the Thuru Saviya Fund to develop the industry in every district. He pointed out the importance of finding alternative methods for energy to reduce the production cost of rubber products until oil exploration in Mannar is completed in 2010. More>>

Fresh efforts to boost Lanka-Korea economic ties

Daily Mirror / Tuesday, 12 June 2007

By Yohan Perera

Prime Minister Ratnasiri Wickramanayake told the visiting Busan Chamber business delegation to make use of the FTAs Sri Lanka has signed with India and Pakistan to enter into those markets.

Mr. Wickramanayake made this point when the business delegation from Busan, South Korea called on him at his office yesterday. The visiting 38-member delegation is interested in Construction, power sector and steel industry. The Premier explained that India and Pakistan are large markets and the Korean business persons have an easy access to these large markets through the FTAs as many items are duty free when exported from Sri Lanka.

He assured the visiting delegation that the BOI and the Ceylon Chamber of Commerce would provide necessary information to them. “I have told these institutions to provide assistance to you and it is up to you to invest,” he told the visiting delegation.

Referring to the constraints, which the two countries face in the field of trade, he said the biggest impediment is the lack of direct flights between Seoul and Colombo. He said talks are currently on with the Korean Airlines to start operations. “This would pave the way for exportation of vegetables, fruits and other food items from Sri Lanka to Korea,” he pointed out. More>>  

Sri Lanka to tap gem and jewellery market in Korea

Daily Mirror / Friday, June 08, 2007

Steps would be taken to seek the assistance of the Korean government to developed the Gem and jewellery export of Sri Lanka, said Sri Lanka ambassador to Korea Mr.Asitha Perera when he meet Sri Lanka Gem and Jewellery Authority Chairman, Mr.Hasitha Tillekeratne and deputation from the Sri Lanka Gem and Jewellery Association recently.

The ambassador said he would explore the possibility of getting duty concessions so that the opportunity for Sri Lanka’s Gem and Jewellery in the Koreans market could be increased. Further, arrangements would also be made to open up and exhibition in Korea in September this year for Sri Lanka’s Exports with special emphasis on Gem and Jewellery.

Sri Lanka Gem and Jewellery Association Chairman Mr. Chanaka Ellawala, Vice Chairman (Gem Sector) Mr.Sheriff Rahuman and Executive Committee Member Mr. M.Imthizam stressed in the interest expanding the opportunity for Sri Lanka Gems in the Korean market, the important of easing the difficulties specially those caused by the tax policies of Korean government. More>>

Chamber of Garment Exporters elects new team

Daily Mirror / Friday, June 08, 2007

The Sri Lanka Chamber of Garment Exporters held its 15th Annual General Meeting at the Mt.Lavinia Hotel recently. The Chamber is the apex body representing the small and medium scale garment manufacturers in Sri Lanka.

The AGM was followed by a presentation on the Challenges of the Small and Medium Enterprises by Ashroff Omar, the CEO of Brandix Lanka. The sessions were well attended by a distinguished gathering of leading personalities in the garment industry. The Secretary of the Ministry of Textiles and Textiles Industries Development, Mr. W. D. Jayasinghe represented the chief guest, Minister, Jayatissa Ranaweera at the occasion. More>>

How should Sri Lanka brand itself for the global market?

Daily Mirror / Friday, June 08, 2007

So why do we need a nation brand. After all we are in the era of globalization. An era of standardization. Of a flatter world. Where consumer expectations, manufacturing processes 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 & tourism but will also act as a powerful endorser for your exports. It will positively affect the respect you command in international forums. It can even catalyze renewed positive patriotism in the people. The need for brand Sri Lanka is thus apparent. Let’s see what the components of a national brand are.

Simon Anholt conducts a quarterly global survey to measure National Brand Index. His model has identified six key components of a national brand.

a) Exports – which products are actively sought or avoided from a country as well as the perception of scientific advancement. Think Tequila and Mexico. Think Silk and China. More>>

Entering EU market? How to get it right

Daily Mirror / Friday, June 08, 2007

Sri Lankan businesses must understand that quality, consistency and adaptability to international tastes is key if it wishes to break into the European market as these countries are more concerned with quality opinioned Politics and Trade Head of the EU delegation Roshan Lyman.

Delivering his speech amidst time shortages Mr. Lyman maintained that companies need to do more desk research to study trends, EU imports statistics and competitors exports to the same market to give themselves an extra edge. Then they should move on to understand the regulatory requirements and standards of the EU not to mention defining the GSP plus so that their product can gain the most benefit from the legal framework.

He then called on businesses to create a critical mass under the umbrella of a sectoral association. This would assist to provide recognition to the sector through branding and strengthen the sectoral association to bring visibility to the sector as a whole and for future linkages with counterparts in Europe.

“EU is Sri Lanka’s major trading partner. As such Sri Lanka can gain more investments and profits from better understanding trade relations. Sri Lanka’s trade with the EU is worth Euro 2.6 billion and EU imports from Sri Lanka Euro 1.6 billion worth of goods. This means that the several sectors including spices, food products, fruits, rubber products, cosmetics, wooden products and footwear are just a few that we can improve on,” he said. More>>

Spice industry needs duty rebates to encourage exporters

Daily News / Friday, 8 June 2007

Hathoon Sheriffdeen

SPICE: Sri Lanka has exported spices worth of US $ 30.5 million and Lankan spices specially because of their original flavour are on heavy demand in the global market, said Director Seven Seas Commodities V. P. Rajan.

From time immemorial Sri Lanka was popular for the spice industry globally and this cultivation should be developed to meet the demand, he said.

“We had exported $ 30 million of pepper and $ 0.5 million of cinnamon last year. Our company mainly exports pepper, cinnamon, oil seeds and mace of the nutmeg fruit.

“We should improve our productivity of cinnamon gradually. Mostly South and Central American countries consume Sri Lankan cinnamon. Since the demand for Sri Lankan cinnamon is very high, the produce could be sold at attractive prices, Rajan said.

“There is a substitute for the cinnamon called “cessiabark”. This is identical with cinnamon and customarily cropped in countries like China, Indonesia and Vietnam. “Cessiabark” has a similar flavour like cinnamon over all, he said.

He also said that this year the cinnamon production has reduced due to the heavy rain and flood.

Rajan said that the tariff rebate to which the exporters are entitled had been reduced and the Government should reinstate the earlier rebate rate to encourage the exporters. More>>

Call to develop Sri Lanka-Male trade ties

Daily News / Friday, 8 June 2007

Hiran H. Senewiratne

JOINT VENTURE: Sri Lanka and Maldives should work together to promote tourism and fishing industries. This would benefit both countries in economic terms in the long-term perspective, leader of Maldivian Social Democratic Party Reeko Ibrahim Manik said.

He said that combination of both sectors would always the best to improve the bilateral trade between two countries, which in turn would help both States especially during difficult times.

Manik who will be one of the prospective candidates for the next year’s Presidential election from the Maldivian Social Demoractic Party said that he would always advocate bilateral trade with Sri Lanka that would enable to exploit opportunities especially in the sea area to develop fishing and tourism industries. More>>

Call to expand Mihin Lanka export service

Daily News / Friday, 8 June 2007

Shirajiv Sirimane

EXPORTS: Mihin Lanka, Sri Lanka’s budget airline could play a major role in cargo sector, said President, National Agri Business Council Sarath Silva.

He said all the fruits and vegetables are exported by air and the exporters are facing major problems due to high cargo charges. “This is specially evident in the Gulf sector andin the Maldives,” he said.

Silva said that already Mihin Lanka is flying to Dubai and exporters are making use of the airline. He said that they are appearing for the airline to consider making a stop over either in Bahrain or Oman. “Then he could help the exporters,” he said.

The airline has also purchased a new aircraft which is bigger than the present one. “We are also requesting the airline to consider shifting the two aircraft to increase cargo capacity to the gulf,” he said.

De Silva suggested the airline to have a stop over in the Maldives. “This can be done from the aircraft flying to Indian destinations,” he said. Mihin Lanka is expected to fly to Trivendrum and Trichi soon increasing its destinations to three. One area they are retargeting is the Buddhist travels and small and medium sector businessmen. Indian tourism arrivals are in highest for the country and the airline would also bring in more tourists to the country. More>>

Sri Lanka shines at Outsource World 2007 in London

Daily Mirror /Thursday, June 07, 2007

The Software Exporters’ Association affiliated to the Ceylon Chamber of Commerce took the initiative to organize a delegation to take part in the 2007 OutsourceWorld Conference and Exhibition which was held in London on recently. The Sri Lankan team consisted of fourteen Companies that hosted a pavilion ‘Outsource Sri Lanka’ at the exhibition promoting the country as a premier outsourcing destination. The Information and Communication Technology Agency of Sri Lanka (ICTA) together with the participating Companies funded this venture.

The Sri Lankan pavilion was situated at a prime location with prominent signage. ‘Outsource Sri Lanka’ was featured on delegate bags, conference material, event signage, banners, and the show booklet which gave the Sri Lankan pavilion further prominence.

‘Outsource Sri Lanka’ attracted sufficient interest for Finance and Accounting services outsourcing for which Colombo is rated 5th by the Global Services Index and software products and engineering services in education, finance, health services, interactive media, web applications, etc.

Industry level meetings were also held with the National Outsourcing Association (NAO); matchmakers SPG Media, Partnership Sourcing Ltd (PSL), and Outsourcing Mentor; and trade publications such as CEO, IT Leadership, FDE, and Outsourcing.

Commenting on the event Mr. Mano Sekaram, Chairman of the Software Exporters’ Association said that ‘Outsource World was a resounding success, where we took part under the banner of "Outsource Sri Lanka! ”, with 14 companies representing the Country we definitely elevated our position by participating at this event. We were able to generate a high level of publicity and prominence. Most of our participants had a very good feedback and have received a number of positive inquiries.

Our main aim was to promote Sri Lanka as a destination for outsourcing and based on our highly successful event we hope to continue doing so." Sri Lankan Ambassador to the UK – Mrs. Kshenuka Seneviratne and Minister Commercial - Mr. Deeptha Kulatilleke met with the delegation at the pavilion and gave their support and encouragement. Mr. Reshan Dewapura, Chief Operating Officer of the ICTA, represented the Government of Sri Lanka at this event.

The fourteen Companies that took part were AKLO Information Technologies (Pvt) Ltd, Aranxa Software (Pte) Ltd, AuxiCogen international Lanka (Pvt) Ltd, Creative Technology Solutions (Pvt) Ltd, Eurocenter DDC, Eureka Technology Partners, Hello Corp (Pvt) Ltd, hSenid Software international (Pvt) Ltd, Informatics International Limited, John Keells Computer Services (Pvt) Ltd, Kingslake Engineering Systems (Pvt) Ltd, Mindspring (Pvt) Ltd, Sabre Technologies (Pvt) Ltd and Teamwork Technology (Pvt) Ltd. More>> Tea auctions this week

Record price for Udumullagoda BOP1

Daily Mirror /Thursday, June 07, 2007

The large weight of 1.1 Mkg of Ex-Estate teas met with fair demand, particularly for the plainer BOP/BOPFs, which were firm to a few rupees dearer. In the best and below best categories price declines of Rs.5/- to Rs.10/- on average were witnessed. Other than for a few BOPs in the select best category, which sold above its counterparts, others were on par or below following limited inquiry from UK, Japan and the Continent.

Uva BOPs and BOPFs continued to sell well and price gains were seen in all categories. CTC PF1s too were of a dearer market for High, Medium and Low growns. BP1s were firmto dearer. The tea bag sector lent useful support whilst Russia was somewhat quiet. More>>

BOI to establish a special economic zone in Puttalam

Daily News /Thursday, June 07, 2007

PROJECT: Work is currently under way to set up a Special Economic Zone (SEZ) in Puttlam.

Recently, Minister of Investment Promotion, Navin Dissanayake, officers from the BOI met with representatives from the relevant departments and state institutions in the fields of surveying, electricity and power supply, water supply, road construction/development and urban development to discuss about the flow of the project. During the meeting important matters such as project’s progress-to-date and ways to expedite the process were discussed in detail. A 340 acres plot of land, located along the Anuradhapura-Kurunagela Road has already been selected for the proposed SEZ. The first phase of the project will develop an extent of 225 acres and 115

Speaking at the meeting, Minister Dissanayake stressed the importance of commencing the project as soon as possible and requested all relevant authorities will give their fullest support to the BOI in order to make this project a success. He also added that this project will be of great benefit to the local community. More>>

Ceylon Chamber appoints dynamic team to lead Sri Lanka Maldives Business Council

Daily Mirror / Wednesday, June 06, 2007  

The Ceylon Chamber of Commerce which formed the Sri Lanka – Maldives Bilateral Business Council (SLMBBC) last week under its purview, has appointed a very dynamic Executive Committee to conduct the affairs of the Council.

SLMBCC which was established at the request of the Department of Commerce mainly with the objectives of promoting two way trade, investment, joint ventures, services and tourism between Sri Lanka and the Republic of Maldives, comprise a well focused Executive Committee covering the entire spectrum of the business sectors. CCC keeping in mind the vital role the services sector plays in the Maldivian economy, elected the President from the Tourism sector. In addition to this, the Committee is represented by Finance and Banking, Shipping and Freight Forwarding & Agriculture sectors and exporters of Fruits & Vegetables and Confectionery. The Council will function under the patronship of His Excellency Dr. Mohamed Asim, High Commissioner for the Republic of Maldives and will be lead by the President Mr. J Kehelpannala, Executive Vice President, John Keells Holdings Ltd. These two leaders will be supported by two Vice Presidents Mr. Yudi Kanagasabai Chief Executive Officer PricewaterhouseCoopers and Mr. Shanthi Wijesinghe Managing Director Consolidated Business Systems Ltd.  More>>

Sri Lanka - Belgian tyre giant looks to roll faster

Daily Mirror / Wednesday, June 06, 2007  

(AFP) - One of the world's biggest solid tyre makers is trying to double its turnover and turn Sri Lanka into a key exporter of rubber products.Raw rubber has been the country's second largest export commodity after tea, but a Belgian-Sri Lanka joint venture is trying to re-invent the way wheels are made and make the island a global hub for tyres.

Solideal Loadstar is one of Sri Lanka's best kept secrets and its biggest exporter, accounting for just over two percent of the nation's near seven billion dollar export earnings.

"In the world market, we now control 20 percent in the solid tyre and about five percent in the industrial tyre markets," chairman Nihal Jinasena told AFP.

"Any fool can make a tyre," said Jinasena, whose family controls 40 percent of Solideal Loadstar."What is difficult is to keep innovating, penetrate markets worldwide and to support your sales."

Loadstar's closest rival in the global solid tyre market is Sweden's Trelleborg, said the firm's joint managing director, Koenraad Pringiers, whose family controls 60 percent of the Sri Lankan company.

The 250-million dollar firm is now working with top management consultancy McKinsey and Company to fine tune operations and ensure a firmer grip on the global tyre market. "We want to double our turnover in three years. To do that we need to attract new talent to the company who can transform our vision to bigger things," said Jinasena. More>>

BOI to establish Special Economic Zone in Puttalam

Daily Mirror / Wednesday, June 06, 2007  

Work is currently under way to set up a Special Economic Zone (SEZ) in Puttalam. Hon. Navin Dissanayake the Minister of Investment Promotion and officers from the BOI recently met with representatives from the relevant departments and state institutions in the fields of surveying, electricity & power supply, water supply, road construction/development and urban development to discuss the flow of the project.

Several important matters were discussed at meeting such as the project’s progress-to-date while ways to expedite the process were discussed in detail. A 340 acre plot of land, located along the Anuradhapura-Kurunegala road has already been selected for the proposed SEZ. The first phase of the project will be developed on an extent of 225 acres. Speaking at the meeting, Minister Dissanayake stressed the importance of commencing the project as soon as possible and requested all relevant authorities will give their fullest support to the BOI in order to make this project a success. He also added that this project will be of great benefit to the local community. More>>  

Bid to explore Lanka-Yuan Province business opportunities

Daily News /Tuesday, 5 June 2007

Shirajiv Sirimane

TRADE FAIR: A 20 member business delegation led by Minister of Exports, Professor G. L. Peiris will leave today to explore investment opportunities between Sri Lanka and Yuan Province in China. They would also participate in the Kunmin Trade fair where there would be overseas investors as well. According to the President of the Federation of Chamber of Commerce and Industry (FCCISL) Nawaz Rajabdeen, who organised this event the delegation is looking at establishing links and also attracting investors to set up joint ventures in Sri Lanka.

Kunmin province is keen to invest in the local power generation and infrastructure related redevelopment project in Sri Lanka. Tourism too would be promoted. He said that the Minister will play a vital role in this regard.

The local business delegation would comprise of the agrarian, industry and service sector. "Therefore, the members of the delegation would look at finding machinery for agriculture and for other industries," he said. Finding hybrid varieties too is another area that would be perused. More>>

Sri Lanka Economic Summit 2007 from 6th - 8th

Daily News / Friday, 1 June 2007

SUMMIT: Sri Lanka Economic Summit 2007 organized by The Ceylon Chamber of Commerce in partnership with the Board of Investment, supported by the SAARC and Trade Promotion projects will be implemented jointly by CCC and the German Technical Co-operation (GTZ) on behalf of the German Federal Ministry for Economic Co-operation and Development (BMZ). The summit takes place from 6-8, June at Oak Room, Cinnamon Grand, Colombo. Recognizing the value of the IT industry, and the importance of dealing with the issues and obstructions that restrict its growth, the entire IT session focuses on three main areas of IT enabled services, those of the software industry, mobile phone connectivity and knowledge process outsourcing and business process outsourcing.

The development so far of these related industries and its contribution to the economy and economic development will be looked into. Additionally, the further promising potential of these industries and how this growing potential could be exploited will also be looked into. More>>

Improved prices for High Growns, Low Growns remain robust

Daily Mirror / Friday, 1 June 2007

After a period of almost 4months, the Low Grown quantity that came under the hammer this week reached 3 Mkg.

In spite of the large volume, the demand at this week’s auction could be quoted as excellent. In the Leafy Category, select best together with the other BOP1s met with a dearer market. The OP1s too advanced in value with the exception of the poor sorts which were only firm. The OP/OPAs too advanced in value. Here too the poorer sorts were only firm. Select best Pekoes, particularly the smaller varieties, advanced Rs. 10/- or more as the sale progressed. The below best and the poorer sorts were only firm. Once again the bolder varieties shed several rupees. The best FBOP/FF1s were mainly firm to some times dearer. However, the below best varieties declined Rs. 5/- to Rs. 10/-, the poorer sorts were barely steady. The showy tippys advanced, at times sharply. The below best were mainly firm with the poorest declining several rupees. There was excellent demand from Russia, Turkey and Iran, whilst Dubai, Iraq, Jordon, Libya, Saudi Arabia and other Middle Eastern markets too lent useful support.The slightly larger weight of 1.0 MKg of Ex-Estate teas met with fair demand. Best Western BOPs on offer sold well between Rs.260/- to Rs.340/-, on special inquiry, whilst the below best declined Rs.5/- to Rs.8/- and more. Plainer teas were firm to irregular selling at Rs.195/-. The best BOPFs were firm to dearer selling between Rs.240/- to Rs.275/-. The below best invoices which were Rs.2/- to Rs.3/- dearer at the commencement, declined in value as the sale progressed and ended Rs.3/- to Rs.5/- easier on previous week levels. The bottom end of

the BOPFs appreciated Rs.3/- to Rs.5/- and has now settled at Rs.200/-. A few bright Nuwara Eliya BOPs on offer sold well whilst the others were irregular. The bright BOPFs appreciated Rs.5/- to Rs.10/-, whilst the plainer types too gained but to a lesser extent. Coloury neat leaf Uva BOP/BOPFs appreciated Rs.5/- to Rs.8/-, whilst others too gained Rs.4/- to Rs.6/-. Low grown PF1s appreciated Rs.5/- to Rs.10/-, whilst high and medium grown PF1s barely maintained and declined in value. BP1s were firm to dearer. More>>

Trade facilitation in Sri Lanka: Success and failures

Daily Mirror / Friday, 1 June 2007

By T S A De Silva

Sri Lanka, a forerunner in implementing an effective trade facilitation programme in Asia,  

mmika Perera made a case for Jordan investors to consider Sri Lanka for their business ventures.

"Despite many challenges Sri Lanka has faced during the last decade, our economy has remained strong and achieved sustainable growth. Last year in particular, was a year of significant growth where the economy posted a 7.4% expansion," Mr. Perera had said in his presentation.

"Currently our investor portfolio consists of some of the well known regional and global players. Operating in diverse businesses from manufacturing to services, investors cater to growing world markets. We support an advanced apparel sector, rubber manufacturing and a host of other sectors including BPO’s," he told Jordan investors.

He said that Sri Lanka has a pool of skilled labour, infrastructure that supports a sound investment – a superior telecommunications industry, transport networks, power and most importantly an investor friendly attitude. More>>

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