Export revenue to the EU increases in 2005

Anjana Samarasinghe

EXPORT REVENUE: Exports from Sri Lanka to the EU market recorded USD 1808.43 million last year. This is a 2.7% increase compared to the corresponding year and it is also recorded as 28.5% from the total exports last year. This was recorded as USD 1760.69 million in 2004.

The garments recorded highest amount of exports earnings to the EU last year and it was USD 964.88 million and it was USD 985.82 million in 2004 and it is a 2.2% decline.

Diamonds and rubber tyres and tubes are among other high export earners to the EU. The EDB is expecting 7% growth from total exports earnings to the EU market this year.

Chairman, EDB Brian Angunawela said that total exports to EU market has increased and through the GSP + scheme they expected more exports to the EU last year.

'Most large-scale exporters aim at EU countries like Germany, Italy and France. They should focus on EU countries like Slovakia which offer the same concessions that others offer. These countries will be virgin markets for our exporters with less competitors. When it comes to SMEs most them are not aware of the GSP + scheme, he said.

Angunawela also said quality certifications is essential in enter into the EU market and EDB is not in a position to provide subsidies for all companies to obtain quality certifications when enter into the EU.

EDB has funded nearly Rs 3.5 million for companies involved in fish export to EU to obtain HACCP certificate. There is a good demand for tuna fish in the EU, he added.

Managing Director of Mirams WaterHouse Limited and Management Consultant Mike Mirams said that local exporters should not be afraid of China.

Sri Lanka can compete on both cost and quality with China, he said.

Though China produces low cost products to the EU market, there are tariffs imposed by the EU and China is never good at producing quality goods for the EU market. They have excellent marketing methods for the EU where Sri Lanka is lacking, he said.

The EDB has organised seminars to educate exporters on exporting to the EU market with collaboration with the European Commission in Sri Lanka.

They also conduct pocket seminars for entrepreneurs in rural areas. EDB also expects to organise trade events in the EU soon.