Plans to boost trade ties with Italy

By Cheranka Mendis

Widening the product sector basket, food processing and attracting investment are key concerns for the newly appointed Minister Commercial designate to Italy Gothami Indikadahena who will be heading to her new destination of work soon.

Indikadahena asserted that Italy being an important bilateral station for Sri Lanka she would do her utmost to promote beneficial trade between the two countries. During her tenure of three years, Indikadahena hopes to offer an extensive product sector basket from Sri Lanka. “Italy is confined to a very few products from Sri Lanka. Even when it comes to apparel there are many more avenues that can be tapped such as accessories and more leather goods. While focus on existing products is important I am also hoping to introduce more local products to Italy,” Indikadahena said. She met the corporate sector at a meeting organised by the Sri Lanka-Italy Business Council at Ceylon Chamber of Commerce.

With Sri Lanka being a country rich with agricultural commodities the food processing industry also holds much opportunity to improve, she said. “The sector is not exploited fully and I hope that in the years to come we will be able to achieve a breakthrough in the sector.” Gem and jewelry industry which is already well established would need more attention to extend the numbers exported.

 “Italy is a brand conscious market, therefore exporters involved with branded products or trading from their own brands would do well in the long run. This must be kept in mind and I hope to develop this area of business as well,” Indikadahena stated.

Attracting more investment particularly in the infrastructure development and tourism sector is also one of her topmost priorities, she said. Sri Lanka offers lot of incentives for foreign investors and traders. “I hope to talk to exports and identify the challenges in reaching the buyers from the local’s point of view. Issues such as technical issues, issues on Technical Barriers to Trading (TBT issues) and sanitary issues have been identified as main challenges for our traders along with international standard compliance. I hope to work continuously to help ease these problems.”

Number of trade complaints being made has increased greatly with recession with local businessmen trading with illegitimate traders abroad who, when traced do not legally exist. Providing more information on that line and support in registrations and checking the genuineness of businesses will also be done through her intermediation, she asserted.

Main items exported from Sri Lanka to Italy in 2009 were apparel and clothing (knitted or crocheted) 48 per cent, apparel and clothing (not knotted or crocheted) 32 per cent, fish and crustaceans six per cent, rubber and articles thereof five per cent and coffee, tea, mate and spices two per cent.

Main items imported to Sri Lanka from Italy are knitted or crocheted fabrics 40 per cent, special woven fabrics 12 per cent, machinery and mechanical appliances 12 per cent, rubber and articles thereof four per cent, plastics and articles thereof three per cent and other items 29 per cent.