First-ever direct consultation with export titans starts in earnest

Despite a reversal in the rate of exports decline and evidence of some improvement, Sri Lanka is actively moving to help its exporters to face the global downturn, with a challenging new $ 12 b export goal set for 2102.

“Since you, the distinguished exporters, who account for nearly 80 per cent of Sri Lanka’s export earnings, possess valuable understanding, experiences, suggestions and comments which we believe could be very useful for our national drive, we respectfully invite your valuable feedback to us today to turn our export performance around further and place it back on track to sustain our global competitive advantage. To this end, let me energise you with Minister Rishad Bathiudeen’s new export target of $ 12 b for 2012. Let us take on this challenge jointly to meet $ 20 b by 2020,” said Secretary of the Ministry of Industry and Commerce Anura Siriwardene on 12 September.

Siriwardene was addressing the titans of Sri Lanka’s exports on 12 September at Cinnamon Grand Hotel, Colombo. The export giants, who almost oversee 80% of Sri Lanka’s annual exports, were invited by the Export Development Board to jointly map strategies to accelerate export earnings targets for 2012 (Minister Bathiudeen was unable to attend the event due to his tight schedule).

Secretary Siriwardene announced: “Minister Bathiudeen has now revised the national export goal for 2012 to $ 12 b from the previous $ 10.1 b.”

All export sectors were present, including apparel, rubber products, gems and jewellery, spices, food and beverages and IT/BPO/KPO.

Among the sectoral leaders and associations present were the Joint Apparel Association Forum (JAAF, the pioneer association of the apparel export industry in Sri Lanka), Hirdaramani Industries  Ltd., Omega Line Ltd., Orit Trading Lanka, MAS Holdings, Brandix, Akbar Group of Companies, Jafferjee Brothers, Loadstar (Pvt) Ltd., Ansel (Lanka) Ltd., Eu Retec (Pvt) Ltd., Lalan Rubbers (Pvt) Ltd., Nithyakalyani Jewellers, Ellawala Exports Pvt Ltd., Ishana Exports (Pvt) Ltd., Spices & Allied Product Producers’ and Traders’ Association, the Spice Council, Edna Group of Companies, Prima, Virtusa (Pvt) Ltd., IFS Solution Asia Pacific Pte Ltd., Colombo Dockyard PLC, Neil Marine (Pvt) Ltd., and various trade chambers such as the National Chamber of Commerce of Sri Lanka, Federation of Chambers of Commerce and Industry of Sri Lanka (FCCISL), National Chamber of Exporters and Exporters’ Association of Sri Lanka.

Almost all export leaders present praised the Ministry of Industry and Commerce and its Export Development Board for the timely initiative.

“We are happy that the Government has understood our needs and called us to meet. This is very timely,” said Sarada De Silva, Chairman of the Spice Council, addressing the meet. “Now we need action” he said.

He added: “The spice export sector views devaluation of the rupee positively, but finds certain raw material import inputs costing more. I am sure that many other manufacturers feel the same. We also need development finance support as well as endorsement of the Madrid Protocol and Lisbon Agreement for our sector.”

Most exporters – across almost all sectors – felt that policy consistency and predictability in terms of foreign exchange regime, devaluation, import-export levies and taxes, strong need for training and development and human resource strengthening, research and development capacity upgrade with tax relief for R&D expenses given to private sector, fuel/energy and labour costs control support, biomass energy support, global branding and market development assistance, links to newly0opening markets such as Myanmar, and technology upgrade to sustain high value additions were needed.

Addressing the exporters, Secretary Siriwardene said: “Thanks to your committed efforts, our exports grew strongly during 2011, registering a commendable growth of 22.1%, continuing the upward trend of 2010. This positive trend also showed that the export development vision of President Mahinda Rajapaksa is working well. However, as you may have experienced already due to the global downturn, our export earnings up to June 2012 registered a slight drop of 2.5 per cent as against the same period in 2011. Still, I should stress that this is an improvement against the 5.4% fall in export earnings during January to May 2012.

“I am pleased to state that despite the difficult international markets, thanks to you – our export community’s committed efforts – we predict our total exports in 2012 to be around dollar 10.1 billion. To uplift our export revenue, the Export Development Board under my Ministry is now actively focusing on diversification of export products and markets, value addition, brand promotion, productivity improvement, product adaptation, market communication and market development efforts. However, we need your valuable support and input for our efforts.

“While thanking you for accepting our invitation today, since you, the distinguished exporters, who account for nearly 80% of Sri Lanka’s export earnings also have valuable understanding, experience, suggestions and comments in this, which we believe could be very useful for our national drive, we respectfully invite your valuable feedback to us today to turn our export performance around and place it back on track thereby sustaining our global competitive advantage.”

Siriwardene added: “I am also pleased to announce that we have succeeded in our discussion with the Central Bank of Sri Lanka for focused development banking support to our exports and exports manufacturing sector. We are now working on this and full details will be announced when the process is ready.”

EDB Chairman/CEO Janaka Ratnayake, addressing the exporters, said: “Of the more than 3,500 of our exporters, six per cent – that is 210 – exporters handle 85% of our exports, which is around $ 9 b. Unlike me, you all, as committed exporters, know and are familiar with your domestic and international export concerns very well. We are here to address your issues, especially at a time when the international market climate is tightening.” 

Ratnayake added: “Our market diversification is taking place and we are on track. Our current market diversification is aimed at India, China, and the Far East, among others, and in fact, exports to India have risen by 17%. We are also in a positive situation with regard to the Madrid Protocol and Lisbon Agreement.”