Lanka invites high-level Iranian business delegation to ‘Expo 2012’

Minister of Industry and Commerce Rishad Bathiudeen extended an invitation to a high-level business delegation from Iran to Sri Lanka’s mega export show ‘Sri Lanka Expo 2012’ to be held in early 2012.

“Iran and Sri Lanka has been enjoying excellent bilateral relations on the pillars of friendship and mutual cooperation.  Our relations have always been cordial, and congenial,” the Minister said.

Minister Bathiudeen extended the invitation when he was at a bilateral meeting with his counterpart in Iran, Dr. Mehdi Ghazanfari, Minister of Commerce of the Islamic Republic of Iran on 15 May.

Minister Bathiudeen is currently on an official visit to the Islamic Republic of Iran.

At the discussion, both Ministers reaffirmed the historic relations between the two countries and highlighted the importance of further boosting trade cooperation, which currently stands at US$ 800 million.

In early May, Sri Lanka announced a mega export exhibition for international buyers to be held in 2012 in Colombo. Sri Lanka will be launching ‘Sri Lanka Expo 2012’ to be held in early 2012.

Briefing his counterpart on Sri Lanka’s current economic outlook, Minister Bathiudeen said: “Under the able leadership of President Mahinda Rajapaksa of Sri Lanka, our country showed strong development potential, while reporting encouraging growth data. I am happy to inform you that Sri Lanka has recorded a promising 8.1% economic growth in 2010 and is expected to grow even faster in the coming years at an estimated 9% in 2012 to 2013.”

The two way trade volume which is over US$ 800 million makes Iran Sri Lanka’s seventh largest trading partner. Iran is the fourth largest supplier of petroleum oil to Sri Lanka in 2009, which contributed 99% of total imports from Iran.

Over 50,000 MT of Ceylon Tea are exported to Iran annually, in both direct and indirect ways. Thus, Sri Lankan tea meets almost half of the tea market requirement. In addition, 95% of Iran-Sri Lanka trade is concentrated on two products, crude oil from Iran and tea from Sri Lanka.

The Iranian Minister agreed that both countries should make concerted efforts to diversify each other’s export baskets.

Minister Bathiudeen also drew his Iranian counterpart’s attention to a number of issues pertinent to Sri Lankan exports bound to Iran and requested the relaxing of the regulation on import of pre-packed tea minimum weight from 10kgs to five kgs. “This will definitely help our centuries-old tea industry and benefit Iranian consumers greatly as well,” the Minister said.

He also highlighted the importance of protecting the Ceylon Tea trademark in Iran under the applicable domestic laws of Iran as there is growing evidence on counterfeited Ceylon Tea in Iran markets.

“Another request pertains to high documentation costs. I would like you to personally assist us with regard to reduce the cost of documents for legalisation of export documents, or alternatively reduce the number of documents to be legalised so that the bilateral trade growth will continue smoothly,” Minister Bathiudeen said.

Both Ministers discussed cooperation efforts in the shipping industry and strengthening Sri Lanka’s shipping as well. They also reviewed the progress of the ninth session of the Joint Commission for Economic Cooperation, which was held in Colombo in 2010 and agreed to have official level delegation to Iran before the next formal session to be hosted in Iran and headed by both Ministers.

Iran, Sri Lanka to launch joint business council

TEHRAN - Iran and Sri Lanka plan to establish a joint business council.  The matter was discussed during the meeting of the two countries’ commerce ministers, IRNA reported.  According to the Iranian Commerce Minister Mehdi Ghazanfari the two countries’ annual trade value currently stands at 120 million dollars.  He expressed hope that the amount would reach $400 million.