Lanka starts first ever direct consultations with export titans

Despite a reversal in the rate of exports decline and evidence of some improvement, Sri Lanka is actively moving to help its exporters to face the global downturn with a challenging new $ 12 billion export goal set for 2102.

“We have now revised the national export goal for 2012 to $ 12 billion from the previous $ 10.1 billion,” said Anura Siriwardene, Secretary of Ministry of Industry and Commerce addressing titans of Sri Lanka’s exports on 12 September at Cinnamon Grand Hotel, Colombo.

The export giants, who almost oversee 80% of Sri Lanka’s annual exports, were invited to the Grand by Industry and Commerce Minister Rishad Bathiudeen’s Export Development Board to jointly map strategies to accelerate export earning targets for 2012. All the sectors of export were present.

Addressing the exporters, Secretary Siriwardene said: “Thanks to your committed efforts our exports grew strongly during the year 2011 registering a commendable growth of 22.1% continuing the upward trend of 2010. This positive trend also showed that the export development vision of His Excellency Mahinda Rajapaksa, is working well. However, as you may have experienced already due to the global downturn, our export earnings up to June 2012 registered a slight drop of 2.5 percent as against the same period in 2011. Still, I should stress that this is an improvement against the 5.4% fall in export earnings during January to May 2012. Despite the difficult international markets, thanks to you-our export community’s committed efforts- we predict that our total exports in 2012, to be around dollar 10.1 billion.”

“To uplift our export revenue, the Export Development Board under my Ministry is now actively focusing on diversification of export products and markets, value addition, brand promotion, productivity improvement, product adaptation, market communication and market development efforts. However, we need your valuable support and input for our efforts. While thanking you for accepting our invitation today, since you, the distinguished exporters, who account for nearly 80% of Sri Lanka’s export earnings also have valuable understanding, experience, suggestions and comments in this, which we believe could be very useful for our national drive, we respectfully invite your valuable feedback to us today to turn our export performance around and place it back on track thereby sustaining our global competitive advantage.”

Siriwardene added: “I am also pleased to announce that we have succeeded in our discussion with the Central Bank of Sri Lanka for focused Development Banking support to our exports and exports manufacturing sector. We are now working on this and Full details will be announced when the process is ready.”

“We are happy that the government has understood our needs and called us to meet. This is very timely” said Sarada De Silva, Chairman of Spice Council addressing the meet. “And now we need action” he said and added: “The spice export sector views devaluation of the rupee positively but finds certain raw material import inputs costing more. I am sure that many other manufacturers feel the same. We also need development finance support as well as endorsement of Madrid Protocol and Lisbon Agreement for our sector.”

Janaka Ratnayake, chairman/CEO of EDB, addressing the exporters, said: “Of the more than 3500 of our exporters, six percent-that is 210- exporters handle 85% of our exports, which is around $ 9 Bn. Unlike me, you all, as committed exporters, know and familiar with your domestic and international export concerns very well. We are here to address your issues specially at a time when the international market climate is tightening.” Ratnayake added: “Our market diversification is taking place and we are on track. Our current market diversification is aimed at India, China and Far East, among others, and in fact, exports to India have risen by 17%. We are also in a positive situation as for Madrid Protocol and Lisbon Agreement.”