AmCham Sri Lanka launches Tradeshifts Sectoral Study Report

Presantha Jayamaha

Ambassdor  Ravinatha Aryasinha

Sanjay Mohotttala

Sanjeeva Abeygoonawardene

Shirendra Lawrence

The American Chamber of Commerce in Sri Lanka (AmCham SL) last week released at an online launch event its Tradeshifts Sectoral Study Report.

The Tradeshifts Sectoral Study Report is a summarisation of the analysis and findings of five sectoral study groups consisting of 15 different industries/sectors identified as high-potential for attracting business from the current and future shifts in the global supply chain.

The AmCham Sri Lanka Tradeshifts initiative, launched in June 2020, is a multi-tiered project aimed at:

(1) Analysing the shifts in the global supply chain and identifying the high-potential industries/products for Sri Lanka at a macro level;

(2) Engaging with the identified industries/sectors to study in depth and identify the opportunities and barriers to attracting the benefits of these shifts

(3) Engaging with the Government of Sri Lanka to support the various industries through policy support;

(4) And fourth but not least, developing and implementing a go-to-market strategy that would position Sri Lanka as an attractive landing port.

The Report released recently marks the conclusion of Phase II of this project where, 40 captains of industry representing the industry bodies of the 15 selected industries participated in a series of sectoral discussions and study sessions over a period of two months in an inclusive platform to discuss, brain-storm and identify the opportunities and challenges facing them in attracting the opportunities of shifting trade in the region.

The AmCham SL Tradeshifst Sectoral Study Report contains a re-cap of the Phase I report conducted by US based Deloitte LLC under collaboration with USAID titled ‘Global supply chain strategies: current trends and future shifts’ which provided a macro view of the available opportunities and was the basis for the sectoral studies; Summaries of the five sectoral presentations, focused on – (1) Assessment of global and regional supply shifts (2) Sri Lanka differentiators/value propositions and advantages (3) Support required from the private sector including AmCham and Associations (4) Government support needed for the sector in the short/medium and long term (5) Further assistance required for the sector and Collective proposals based on sectoral recommendations.

AmCham Sri Lanka, together with the sectoral representatives will now engage simultaneously in Phases II and III to collaborate with the Government of Sri Lanka to support the various industries/sectors and to develop and implement an attractive go-to-market strategy for the country.

Speaking at the online event held to launch the report AmCham Sri Lanka President Presantha Jayamaha thanked the representatives of the 15 industry associations/chambers involved in the Sectoral study sessions held over the past four months and noted, “Identifying and understanding the varied scope and requirement of each individual industry, the various challenges and opportunities facing them has been eye-opening.” 

He further noted, “My heart is to increase trade; to encourage and stimulate wealth creation across the entire value chain and provide impetus for sustainable opportunity for the entire nation; as such engaging in constructive dialog to implement the recommended policy and advocacy engagements and networking required for capturing more US trade as we launch into Phase III and IV of this project will be exciting.”

Sri Lankan Ambassador to the USA Ravinatha Aryasinha, sharing his views noted, “The (AmCham) report is pathbreaking in the sense that it … offers various suggestions to solve a problem.” He continued, “It comes at an opportune time, when the trade shifts and the winds of trade are being helpful with greater openness about trade and opportunity from those seeking to diversify.” 

He further commented, “Among all its other advantages such as geo-strategic location, a skilled and adaptable workforce, a high standard of living, strong IPR laws and high rate of literacy, Sri Lanka’s recognition as an ethical manufacturing location, its proximity to India, generous incentives and its legislation allowing for uncomplicated repatriation of earnings are additional advantages to attracting potential investment.”

The report is available on request via [email protected].

AmCham SL said recent events have led US companies over the past few years to explore the options of diversifying their manufacturing and supplier facilities, and COVID-19 and its effect on the supply chain, and by extension the global economy, has prioritised this shift. Most US companies are relocating, or creating secondary facilities, in the Asian region, and neighbours such as India, Vietnam, Bangladesh and Malaysia, have over the past few months benefited immensely from these shifts. Identifying this trend, and shift in the Global Supply Chain, AmCham Sri Lanka with the support of USAID for the initial macro study phase, launched in June 2020 the Tradeshifts project – a multi-phased private sector initiative led by the AmCham Sri Lanka.

The following industry bodies and companies were a part of the AmCham SL Tradeshifts Phase II Sectoral studies: The Ceylon Tea Traders Association, The Lanka Confectionary Manufacturers Association, The Seafood Exporters Association, The Sri Lanka Food Processors Association, The Sri Lanka Fruit and Vegetable Producers, Processors and Exporters Association, The Sri Lanka Electronic Manufacturers and Exporters Association, The Sri Lanka Automobile Component Manufacturers Association, The Foundry Development Services Institute, The Sri Lanka Association of Manufacturers and Exporters of Rubber Products, The Apparel Exporters Association, The Joint Apparel Association Forum, The Sri Lanka Wood-based Industrialists Association, The Sri Lanka Ceramics and Glass Council, The National Chamber of Exporters, The Sri Lanka Pharmaceutical Manufacturers Association, The Advisory Committee of Marine and Offshore Industry [EDB], The Sri Lanka Association of Software and Services Companies, DCL Lanka Ltd., Asia Bike Ltd.

AmCham SL Tradeshifts is aimed at identifying and studying current and future shifts in supply chain strategies across the short- and medium-term, and identifying the drivers of such shifts. It will highlight the opportunities for Sri Lankan businesses to engage in these opportunities.