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Friday, 11 July 2014 00:00 - - {{hitsCtrl.values.hits}}
The historic Sri Lanka-Belarus Joint Commission on Trade and Economic Cooperation successfully concluded yesterday in Colombo. Thanks to the meet, the first-ever Lanka-Belarus vehicle manufacturing venture is now a reality, with more Belarusian investments on the pipeline.
“With the success of this event, without any doubts we are now at a new level of close cooperation with Sri Lanka. As a result of today’s positive outcome we are now planning to bring both our Foreign Minister and President of Belarus to Sri Lanka as the next step in our ongoing cooperation efforts,” said Republic of Belarus Deputy Minister of Foreign Affairs Valentin B. Rybakov on 10 July.
Rybakov, who sat through a two-day Lanka-Belarus Economic Cooperation session held at the Taj Samudra Colombo, was voicing his views on the successful conclusion of the first-ever Sri Lanka-Belarus Joint Commission on Trade and Economic Cooperation session on 10 July. The Sri Lankan side was led by Ministry of Industry and Commerce Secretary Anura Siriwardena during these two-day technical sessions, while Belarus’ team was led by Deputy Minister Rybakov.
Taking part in the sessions were top officials from EDB and Department of Commerce including Department of Commerce Director General R.D.S. Kumararatne, 28 other Lankan representatives from the Ministries of External Affairs, Plantation, Fisheries, Agriculture, Coconut Development, Economic Development (including BoI and Tourist Board), National Aquatic Resources Agency, Sri Lanka Ports Authority and the Tea Board. Also present were Lankan private sector reps including reps from business chambers.
Others in the Belarus delegation were Delhi-based Belarus Ambassador for Sri Lanka Vitaly Prima, Maya Rusetkaya (Belarus Ministry of Foreign Affairs) and reps from Minsk Tractor Works (the world’s largest agro machinery maker already supplying three million tractors to 100 countries), RUE Belmedpreparaty (pharma sector pioneer and Belarus’ largest manufacturer of generics), Promagroleasing (Belarus’ leading lease and finance corporation, with market penetration in South Africa and South America), Minsk Automobile Plant (MAZ, manufacturer of more than 500 models of vehicles including trucks, fifth wheelers and industrial vehicles – slated to receive exclusive rights to be the sole importer of majority of vehicles to Belarus), Caravan (tea and coffee retailer – Aroma and Shokomiska brands), Minsk Department of the Belarusian Chamber of Commerce and Industry (with a membership of more than 780 medium and large-scale businesses of Minsk Region), Belarusian National Technical University (education sector) and Vitebsk State Medical University (education sector).
Minister of Industry and Commerce Rishad Bathiudeen addressing the inauguration event of this session explained the current trade levels between Belarus and Sri Lanka on 9 July. “Out of the total of 231 exports destinations of Sri Lanka in 2013, Belarus ranked as the 77th export destination, and it is interesting to note that it has progressed from its lower rank of 81 in 2011. Less than 1%, that is 0.05%, of our total exports are taken by Belarus. This shows that Belarus is still a virgin market for us with potentials.”
Commenting on bilateral trade, he said the total trade between both countries stood at $ 14.24 million in 2013. In 2012, Sri Lanka was at the 69th rank among the countries which are exporting to Belarus and Sri Lanka’s exports to Belarus include tea with a share of about 94%.
Belarus’ Deputy Minister Rybakov said on 10 July: “As the agreed minutes and protocols of the first Sri Lanka-Belarus Joint Commission on Trade and Economic Cooperation are being signed now, I wish to state that we, the Belarus delegation, have had a very successful event in Colombo. This is a promising start for a closer bilateral effort. With the success of this event, without any doubts we are now at a new level of close cooperation with Sri Lanka. These two days have been very productive for Belarus and we formed a strong positive foundation with Sri Lanka during these important days.
“As a result of today’s positive outcome we are now planning to bring both our Foreign Minister and President of Belarus to Sri Lanka as the next step in our ongoing cooperation efforts. In fact, the important aspect is bilateral cooperation. As a result of this session a successful tractor manufacturing joint venture is now being finalised. Also in talks is a truck and bus assembly as a Joint Venture with a Lankan motor vehicle manufacturer. It is too early to indicate any investment values in these as of now. Belarus also has some of the world’s leading potash suppliers and using them we are keen to strengthen our support to the Lankan agro sector. More importantly, we will be supporting to enhance your food security as we have experience in it.”
Department of Commerce Director General Kumararatne unveiling the developments of the two-day session, said: “As we sign the agreed minutes of the first Sri Lanka-Belarus Joint Commission on Trade and Economic Cooperation, I am pleased to report significant developments. The next Joint Commission on Trade and Economic Cooperation session between the two countries will be held in Belarus next year and the dates to be finalised with agreement of both sides in the due course. Meantime, trade officials of both sides will travel to each other’s destinations to implement decisions taken during this session. The other significant development is two joint ventures in motor vehicles and one in the pharmaceutical/medical sector.
“The joint venture for manufacturing of tractors is being finalised at this moment. This project between a local party and Minsk Tractor Works is to come up in the Ruhunu Magampura International Port’s industry zone. The tractor project is a positive result of the tour of President Mahinda Rajapaksa to Belarus in August 2013. Equally important is that the removal of such barriers to trade as high import duties (on both sides), and tax on remittances, which have come under discussions on 10 July. The pharmaceutical joint venture is on medical devices rather than generic drugs. Belarus would start this venture here initially with training of Lankans in their advanced medical technology.”
Sri Lanka also intimated the transhipment potentials of Ruhunu Magampura International Port for Belarus’ vehicle industry which reports annual export of more than $ 6 b to 140 countries. The Magampura Port is a free port and offers a new opportunity for Belarus automotive makers – especially Minsk Tractor Assembly, which has already been shipping to Bangladesh, Vietnam, Laos and Cambodia using Lithuanian and Latvian ports since Belarus is landlocked. Belarus mulls that an offshore vehicle manufacturing JV in Ruhunu Magampura International Port would help its manufacturers in terms of faster and greater reach in the competitive South and SE Asian regional automotive markets.
Micro Cars CEO Senani Perera, who was at Taj Samudra session, revealed: “We met reps from Minsk Automobiles Plant and we are very impressed with their products, specially buses and trucks. We look forward to further dialogue with them to develop a healthy business relationship. We have not decided on a specific item but are looking at their commercial trucks and commercial buses. In fact, rollout of commercial trucks would be a first for Micro.”
Established in 1999 by automobile engineer Dr. Lawrence Perera, Micro Cars Ltd. remains the only national car manufacturer in Sri Lanka with the distinction of holding a patent for small city cars.
