Tesco UK to increase buying from Lanka

Tesco which operates the largest outlet chain in the U.K. has agreed to purchase a variety of Sri Lankan Products for its 2500 outlets throughout the U.K, Ireland, Central European Countries, Japan and South Korea.

The transaction materialised when Chairman/Sri Lanka Export Development Board, Brian Angunawela, met Sean McCurley, Category Director and Richard Bracher, Principal Director, Commercial Operations at the Tesco Head Office at Hertfordshire. Sri Lanka High Commissioner in the U.K. Kshenuka Senevirathne, along with Deeptha Kulathilaka Counsellor Commercial attended the meeting.

During the discussions Tesco officials agreed to increase Sri Lanka's apparel imports from US$ 30 million to US$ 55 million during the year 2005. It was also agreed to increase import of Tuna fish by 30% while an unlimited quantity of canned tuna fish could be imported. The Export Development Board (EDB) was requested to source for a proper supply of canned Tuna fish.

On the request of Chairman/EDB, Tesco officials agreed to purchase apparels from Small and Medium Enterprises. They said that they have been purchasing apparels from large companies in Sri Lanka but they would purchase from SMEs on the condition that the particular SMEs are recommended by the Sri Lanka Export Development Board.

The Export Development Board is now negotiating with Tesco-Sri Lanka to take advantage of the offer made by the Tesco Directors. Tesco Sri Lanka has also shown interest in purchasing organic spices,herbs, pineapple, coir products, dried fruit vegetables and other bio products.

The EDB Chairman said that Tesco has agreed to pay special attention to products manufactured by SMEs and to pay import branded value added tea while giving prominence to Sri Lankan tea.