Strong export growth continues

Sri Lanka's Exports have continued to perform exceptionally recording a growth of 21.4% at the end of February 2005 to Rs. 95.6 Billion, beating the corresponding period of the previous year's performance of Rs 78.7 Billion. The performance has upwardly moved from January where a 12% growth was registered.

EDB Chairman Rohantha Athukorala said what's encouraging is the continued performance in the non traditional sectors including Processed Foods which have grown from Rs.296 million to Rs.1040 Million as a result of the markets opening up in Maldives once again.

"Cinnamon has grown from Rs.653 Million to Rs.824 Million at a growth rate of 26% which justifies the EDB's investment on the Good Manufacturing Process(GMP plant) in Kosgoda," Athukorala said.

He said a delegation coming from Cochin will visit here this weekend to evaluate Sri Lanka's supply capability in this sector.

"We expect that the Cinnamon industry will definitely benefit with the strong business support from the government" he said. Athukorala also said the Ceramics sector was up by 8% which once again proves that the industry can be developed with CAD technology training to improve productivity to capture price sensitivity markets in Ukraine.

"The EDB is championing this project with the Industry with specialised resources and with the support of professionals like Navin Sethi who was in Sri Lanka sponsored by the EDB.

Toys and wooden products are up a mammoth 72% compared to last year which proves that fairs that was organised by EDB recently in Nuremburg is bringing in the results. 'We now need to develop an Export Developmental Plan" so that Sri Lanka can provide the supply of Rubber wood which is a scarce resource in the country. EDB is investing on an Rs.11 Million project to drive this segment through backward integration," Athukorala said.

He said Crepe rubber exports were up by 22% to Rs.491 Million which will further get a boost with the tie up with the US middlemen in Cleveland to develop a crepe rubber business in the United States pharmaceutical industry. "Sri Lanka rubber plantation companies have formed a new company called Lankaprene Ltd which depicts the private sector commitment to this sector.

The EDB will fund the US Distributors' visit to Sri Lanka to sign the MOU with the authorities and to send a delegation to participate the world rubber show in Acorn USA in October. Furniture and Floriculture business has grown by 35% which is encouraging with the Maldivian market opening up.

The Challenge for our exporters in this segment is to reduce the dependency in the Maldivian market and may be penetrating the UAE market where there is a large population of Sri Lankan who will instill purchase," the EDB Chief said.

The traditional markets of textiles and garments have grown by 13% to Rs. 46.7 Billion. The Tea sector has grown by 12% to Rs. 12.7 Billion which is encouraging given that the large Pakistan market is yet to open following the signing of the FTA. Pakistan has a very attractive CTC tea market.