India agrees to Commerce Minister Bathiudeen’s  assistance request, CEPA talks progressing

The High Commissioner of India Ashok K. Kantha has agreed to a request made by the Minister of Industry and Commerce Rishard Bathiudeen to extend India’s assistance to Sri Lanka’s footwear industry.

Minister Bathiudeen requested Indian assistance for skills building and training for the local footwear and leather industry when he addressed the fourth Indian leather Buyer Seller Meet (BSM) held in Colombo on 2 March.

“The Sri Lanka footwear industry imports the bulk of its leather requirements directly from Chennai, and all of us are aware, India has become the number two footwear producer in the world” Minister Bathiudeen said.

Speaking about the Indo-Lanka Comprehensive Economic Partnership Agreement (CEPA), he said: “I am delighted to state that Sri Lanka is working towards early conclusion of the CEPA between both countries and the Cabinet has appointed an inter-governmental committee to be convened by the Director-General of Commerce. In this context, I am hopeful of an early finalisation of the process whereby both neighbours will strengthen our centuries long historic relations.”

The Buyer-Seller Meet and Trade Exhibition of Components, Materials and Leather for Footwear, Leather goods and Upholstery Industries have been organised by the Council of Leather Exports of India.  This is the fourth such BSM held in Sri Lanka. In the 2010 BSM held in Colombo, US $ 19,500 worth confirmed orders were received.

“This is the fourth BSM and we are privileged to host it. Such continuity alone shows that the annual buyer seller meet is here to stay” Minister Bathiudeen said.

“Indian leather is no stranger to Sri Lanka. Sri Lanka footwear industry imports the bulk of its leather requirements directly from Chennai, India. As all of us are aware India has become the number two footwear producer in the world. Sri Lanka’s footwear industry is also expected to see healthy growth after the government had granted important tax concessions in 2010.I am given to understand that India is aiming to double its current leather exports to $ 7 billion by 2013/14. Sri Lanka footwear consumer market may not be as huge as India can look forward to, but emerging demand for designer footwear in Sri Lanka appears to be a new trend that Indian sellers can exploit” the Minister said.

He added: “20 major footwear component suppliers coming to our doorstep definitely offer a vast array of opportunities especially for our SMEs. It is a very cost effective way to build mutual trade relationships as well. Presently we are using Indian resources to train our footwear designing and production skills. I hope Indian government can facilitate training or a scholarship scheme to train our footwear sector workforce which will benefit this sector.

“Indian footwear industrialists can readily use Sri Lanka as a base for profitable footwear assembly and use Sri Lanka’s developing logistic infrastructure for re-shipping. More importantly, I invite Indian leather industrialists for viable industrial partnership with local companies. Forging such bilateral trade partnerships between the two countries is an essential market penetration strategy for both countries in the face of competitive globalised market environment. Your entry will also help Sri Lankan SMEs and boost local employment opportunities.”