Is the European market accessible for Sri Lankan exporters?

THE European Union (EU) is an economic and political union of 27 member states; the EU has developed a single market through standardisation of laws which applies in all member states including the abolition of passport controls within the union.

Consequently, it ensures the free movement of people, goods, services and capital and maintains common policies on agriculture, fisheries and regional development. With a population of over 500 million highly educated inhabitants with higher spending capacity, it has attracted many exporters exporting goods from various parts of the world.

However, many Sri Lankan exporters do not comprehensively understand how to find markets, attract buyers, market policies, environmental standards and other statutory requirements of the EU. This complex market has always been a challenge for local exporters and this reason has seen exporters limiting their exports to a market with immense opportunities which could be utilised if properly understood and trained.

The Federation of Chambers of Commerce and Industry of Sri Lanka (FCCISL), the rallying point for free enterprises of the country, has empowered the Sri Lankan small and medium industry on businesses in the changing times, to up their competitiveness and enhance their national and global reach.

FCCISL deems that Small and Medium Enterprises (SMEs) are the growth engine of the Sri Lankan economy; with the country’s current conducive state for business and with the initiations for exports development, the SMEs can play a pivotal role in Sri Lanka’s exports sector for the growth of the nation in very large scale. SMEs currently account for 80-90 per cent of the total number of enterprises in Sri Lanka.

The strategy of the Government is to ensure that by 2020 Sri Lanka’s industrial sector will be highly value-added, knowledge-based, internationally competitive and diversified, which employs a highly-paid skilled work force. The Government aims at continuous training and retaining of workers in relevant disciplines. The exports sector will be supported through a more conducive tax regime. Steps are being taken to facilitate more market access via multilateral and bilateral trading agreements.

With a nationwide membership of over 50 chambers of commerce and business associations, FCCISL advocates the shared vision of Sri Lankan businesses and speaks directly and indirectly to over 12,500 business units. It has an expanding membership of enterprises drawn from large, medium, small and micro segments of manufacturing, distributive trade and services.

FCCISL maintains the lead as the proactive business solution provider through research, interactions with the Government and through global networking. Set up in 1973, FCCISL is the largest and most represented apex business organisation of the country’s business. It is also the most widely spread business organisation with member bodies from all districts and provinces of the country.

The Centre for the Promotion of Imports from Developing Countries (CBI) of Netherlands contributes to sustainable economic development in developing countries through the expansion of exports from these countries. CBI, the expert in export development and export promotion from developing countries, has a solid network on international stakeholders.

Its contribution consists of strengthening of competitive capacity of SME exporters focusing primarily on European markets. The core focus areas are counselling, advice and knowledge management. With this mindset, CBI has joined forces with FCCISL and its partner chambers to form a strategic alliance to offer training for exporters in Sri Lanka which is supported and assisted by the Export Development Board (EDB) of Sri Lanka.

The first highly successful training programme (Exporting to EU Market) was conducted in Galle for the exporters in the region at the Galle District Chamber of Commerce and Industries in March which was acknowledged by the participants as a knowledge building exercise which gave them insights into the unknown but lucrative European market. To consolidate and build on this, the FCCISL will conduct a series of programmes in Kandy, Trincomalee and Jaffna targeting the exporters in these regions.

To increase effectiveness and efficiency of the exporters, CBI will conduct factory visits in Kandy region to share its knowledge and expertise and further to provide best industry practices. This will be an initiative to gather firsthand insights and the first of its kind conducted by the CBI in Sri Lanka. This programme will provide exporters in the region a tremendous boost to understand, increase knowledge about the EU markets and to harness the best possible opportunities.

The next programme is set to commence in Kandy on 14-15 June at the Chamber Academy, Kandy and is expected to be a curtain raiser to the regional exporters who are in much anticipation of knowledge gathering. Target audience will be exporters from Kandy and surrounding areas.  This programme will be conducted in English with translation in Sinhalese language for the benefit of the majority of participants. Participation is only on registration due to limited availability of space and the registration is now open at the FCCISL for this programme.

Please contact Subani Basnayake (Centre Manager – Chamber Academy Kandy) on 081-2223468 or Shazly Oowise (Manager – International Affairs) [email protected] on telephone 011-2304253/4. Further information could be obtained from regional chambers in Kandy, Kurunegala, Ratnapura, Matale, Kegalle, Badulla and Nuwara Eliya.