Exports to record US $ 10 billion

Lanka shifting to new markets:

Indunil Hewage

Sri Lanka is expected to record US $ 10 billion revenue in total exports in 2011. In 2010 all sections in export industry except one or two sections have also recorded a noteworthy 15 percent growth against 2009. Foreign exchange from total exports was recorded at US $ 8.27 billion in 2010.

“In order to achieve US $ 20 billion total export revenue target by 2020, it is vital for the export sector to record 20 percent growth with a national saving amounting to 35 percent,” Export Development Board Chairman Janaka Ratnayake said yesterday.

He made these views addressing a ceremony to launch the project to promote processing and marketing of fresh water fish products.

In 2010, tea export revenue reached US $ 1.3 billion recording a 50 percent growth against 2009.

In 2010 rubber, spice, food and beverages, leather, chemicals and plastic exports recorded 72 percent, 27 percent 21 percent, 25 percent and 17 percent growth respectively compared to 2009.

During the last quarter of 2010, garments and textile exports saw over six percent growth and garments and textile exports to EU countries and USA had an almost three percent growth.

EDB is also optimistic of achieving US $ 1 billion export revenue in fresh water fish exports by 2020. Sri Lanka is currently importing 95 million tonnes of fish and out of that a considerable amount of fish is being re-exported to other countries. Around 172 million tonnes of fish are being exported from Sri Lanka to other countries annually.

Ratnayake said fish consumption in the country is 100 percent and due to that reason Sri Lanka only managed to send five percent of marine fish for export.

Commenting about the market behaviours Ratnayake said that 60 percent of total Sri Lankan services and products goes to USA and EU countries.

The extent of the Sri Lankan services and products supplied to these markets have declined due to various reasons.

“The country has understood the risk of depending only on mature markets like USA and EU countries and has exposed its products and services to China, Malaysia, Singapore, India and Indonesia.

Sri Lanka’s exports to India is 44 percent.

Shifting from specific markets to mass markets such as India and China would definitely lead to a steady and enhanced export mechanism in the country as 60 percent of world’s population reside in these potential countries,” Ratnayake said.

Ratnayake said the main hindrance faced by Sri Lanka to record a higher export revenue is the lack of the production capacity.

“Cultivating more lands and products and market diversification would definitely boost the Sri Lankan exports to other countries,” he said. He said Sri Lanka exports 313 million kg of tea annually and out of this 44 percent goes in bulk form .Though 95 percent of the world’s cinnamon requirement is supplied by Sri Lanka, a high percentage of cinnamon is exported in bulk form.

“It is vital to discourage exports in bulk form.

Identifying new products with value addition while improving packaging technologies to get premium prices for our products in the international markets and imposing cess to discourage these type of bulk forms is essential,” Ratnayake said.