MINISTRY OF INDUSTRY AND COMMERCE

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2 MINISTRY OF INDUSTRY AND COMMERCE

3 This Report has been translated in to Sinhala and Tamil languages as well

4 Mahinda Chinthana Vision I am hoping to establish Sri Lanka as one Asians foremost commercial centers, International banking and International Investment. (Mahinda Chinthana : 2010,p8)

5 Leadership and Direction Hon.Rishad Bathiudeen Minister of Industry and Commerce Hon. Lukshman Wasantha Perera Deputy Minister of Industry and Commerce Mr. Anura Siriwardena. Secretary,Ministry of Industry & Commerce

6 MISSION & VISION PREFACE This Annual Performance Report 2013 of the Ministry of Industry and Commerce has been prepared according to the requirement of the Treasury Circular No: 402 of 12 th September The first section of this report produces the progress of development activities implemented by Divisions and Institutions coming under the Industrial Sector of the Ministry. The second section of this report produces the progress of development activities implemented under the Commerce Sector of the Ministry. General Information and overall Financial Progress of the Ministry are included in the third section of the report.

7 VISION & MISSION VISION A globally competitive industrial sector in Sri Lanka driven by a vibrant commercial environment MISSION Creation of a conducive environment for sustainable, commercially competitive, manufacturing entities, producing high value - added products and a vibrant commercial regime capable of contributing to the enhancement of living standards of the people

8 THE MINISTRY S MAIN OBJECTIVES Main Objectives of the Ministry Creating a globally competitive & knowledge based manufacturing industry sector Maximizing export revenue through developing and promoting value added exports Generating a congenial commercial environment

9 PROGRESS REPORT 2013 DUTIES AND FUNCTIONS OF THE MINISTRY Duties and Functions of the Ministry As per the extra ordinarily gazette notification dated , the duties and functions of the Ministry of Industry and Commerce are as follows 1. Formulation of policies, programmes and projects in regard to the subjects of Industries, Commerce and all subjects that come under the purview of Departments and Statutory Institutions listed in Column II, on the basis of Mahinda Chinthana Vision for the Future and any other overall National Policies that may be adopted by the Government. 2. Direction of the implementation of such policies, programmes and projects with a view to achieving the relevant national objectives within time lines agreed with the national planning authorities and within budgeted resources. 3. Provision of all public services that come under the purview of the Ministry in an efficient and people friendly manner. 4. Reforming of all systems and procedures to ensure the conduct of business in an efficient manner deploying modern management techniques and technology where applicable while eliminating corruption and waste. 5. Copyright of all the functions relating to the administration of the International Convention on Intellectual Property and Copyright of the World Intellectual Property Office (WIPO). 6. Export prom otion and consultancy services. 7. International trade relation. 8. Representation of Sri Lanka Trade abroad 9. Competition policy 10. Promotion and development of Industries.

10 DIVISIONS, DEPARTMENTS & INSTITUTIONS UNDER THE PURVIEW OF THE MINISTRY OF INDUSTRY AND COMMERCE Divisions, Departments & Institutions under the purview of the Ministry of Industry and Commerce Industry Sector Industrial Policy & Development Division Industry Development Division Development Division 1 Development Division 2 Development Division 3 Industry Registration and Management Information Division Productivity Improvement Division National Authority for the Implementation of Chemical Weapons Convention (NACWC) Corporations and Statutory Boards Division Kahatagaha Graphite Lanka Limited (KGLL) Mantai Salt Limited (MSL) National Enterprise Development Authority (NEDA) Textile Industry Development Division Department of Textile Industry Sri Lanka Institute of Textile and Apparel (SLITA) Commerce Sector Department of Commerce (DOC) Department of Registrar of Companies (ROC) National Intellectual Property Office of Sri Lanka (NIPO) Sri Lanka Export Development Board (SLEDB)

11 MISSION & VISION TABLE OF CONTENT PAGE NO Industry Sector Macro Policy Division 1 Industry Development Division 3 Development Division 1 6 Development Division 2 7 Development Division 3 9 Industry Registration and Management Information Division 11 Productivity Improvement Division 13 National Authority for the Implementation of Chemical WeaponsConvention (NACWC) 15 Corporations and Statutory Boards Division 18 Kahatagaha Graphite Lanka Limited (KGLL) 21 Mantai Salt Limited (MSL) 22 National Enterprise Development Authority (NEDA) 24 Textile Industry Development Division 27 Department of Textile Industry 30 Sri Lanka Institute of Textile and Apparel (SLITA) 31 Commerce Sector Department of Commerce (DOC) 35 Department of Registrar of Companies (ROC) 46 National Intellectual Property Office of Sri Lanka (NIPO) 49 Sri Lanka Export Development Board (SLEDB) 53 General Information of the Ministry 66 Financial Progress 72

12 INDUSTRY SECTOR

13 MACRO POLICY DIVISION To safeguard the domestic industrialists, several Industrial Policy and Development Division Introduction The Industrial Policy and Development Division (IPDD) of the Ministry of Industry and Commerce contributes to the formulation of trade and tariff policies within the national framework for industrial development. International Trade related functions The Industrial Policy and Development Division (IPDD), together with the Department of Commerce, takes action to safeguard the interests of local industries, apart from giving assistance to exploit export opportunities for export oriented industries, through Free Trade Agreements. Tariff related functions By co-coordinating with relevant authorities such as the Department of Trade Tariff and Investment Policy, Department of Fiscal Policy & the National Council for Economic Development of the Ministry of Finance and Planning and the Department of Customs, the division assists domestic industries by resolving tariff related issues. Progress as at 31 st December 2013 Contribution of the Division to develop on local Industrial sector. The Macro Policy Division has contributed to resolve several tariff related issues of industries through recommends steps which are given below. The Customs duty and / or cess duty of raw materials, intermediate inputs and machinery on several items were removed/ reduced. revisions were made to the tariff structure by way of increasing or changing the Customs duty and / or duty. cess Taking into consideration the scarcity of raw materials for domestic industries, a Cess duty was introduced for the export of items in raw form, which could be used as an input for domestic industries. Locally assembled / manufactured motor vehicles and electrical items, which achieve a Local Value Addition (LVA) of above 30%, are exempted from the payment of excise duty, on the recommendations of the Minister-in-charge of the subject of industries. In this case preparing of specification, accounting, inspection of manufactory industries and advisory counseling have already been made by the division. From the time that the first batch of vehicles was granted the duty exemption in 2008, seven companies have ventured into the automobile assembly industry. It could be observed that since 2008 to end of 2013, vehicles have been assembled by 7 companies locally, totaling to around 6000 vehicles with over 30% LVA, and the companies which are engaged in the production of vehicles. Under this programme, a local goods manufacturing company was granted exemption from excise duty of washing machines manufactured during the year, with more than 30% LVA. This is in addition to the washing machines, deep freezers and bottle cooling machines, which are already being manufactured by two companies with a LVA above 30%.Apart from improving manufacturing technologies in Sri Lanka. 1

14 MACRO POLICY DIVISION An awareness programme on Budget 2014 was held on the 17th December, under the patronage of Dr. P. B. Jayasundara, Secretary to the Ministry of Finance and Planning, with the participation of over two hundred industrialists, exporters and representatives of Chambers of Commerce and Industry. A handbook comprising of services provided to the public by the Ministry of Industry and Commerce and the institutions that come under its purview, was launched at the exhibition, Reflection of Sri Lanka, held in parallel to the Commonwealth Heads of Governments Meeting. 2

15 REGIONAL INDUSTRIAL DEVELOPMENT DIVISION implement the duties of the Regional Industry Service Committee, nine Regional Industry Service Centers Industrial Development Division establish in the provinces and Regional Director has appointed as a secretary to the committee and other staff has appointed to assist to the Regional Director. New application with the project proposals received to the RISCs for requesting lands for set up Industrial Estate were evaluated by the Regional Industrial Introduction Regional Industrial Development division of the Ministry of Industry and Commerce contributes to expand the industrialization to the regional areas which concentrated in the few district in the country and enhance the industrial sector contributions to the national income. In this endeavor, it is the responsibility of this division to promote investment in industrial sector in regional level, provide infrastructure facilities and provide technical and consultancy assistance. Regional Industrial Service Committee To achieve this objective Regional Industry Service Committee has been established in each province under Industrial Promotion Act No 46 of 1990.The duties of this committee is to prepare a plan and work programme for industrial development in the province, provide required infrastructure and assist the industrialists to implement the investment decisions. Regional Industrial Service Centre Chairman of this committee is private sector businessman appoint by Honorable Minister of Industry and Commerce consultation with Chief Minister of respective province and other 15 members represent the committee including industrialist in the province and senior government officials. To Service Committees set up under Industrial Promotion Act No 46 of 1990.This committee will facilitate to selection of new industrialists at regional level. The recommended projects submitted by the RISCs were further screened by the official committee appointed by the Secretary of the Ministry. Project proposals will be evaluated based on the criteria of production process, percentage of value addition, environmental impact, financial feasibility and creation of employment opportunities. In addition to that, the Ministry take actions to get recommendations of technical institutions such as Industrial Technology Institute for environmental sensitive projects enable to guide them to minimize the damage to environment by introducing new technology. The recommended projects by this committee forwarded to obtain the approval of Cabinet of Ministers and the Ministry allocates land blocks for the approved projects under 35 years lease agreement. Progress as at 31 st December 2013 In the year 2013, 56 new project proposals have been received for Industrial Estate and 39 project proposals have been forwarded to cabinet of Ministers and out of them 36 project proposal were approved for allocation of land plots and land plots were allocated. 17 new industries were initiating their commercial operation and 3104 employment opportunities have already been created in

16 REGIONAL INDUSTRIAL DEVELOPMENT DIVISION Embilipitiya Industrial Estate The Embilipitiya Industrial Estate, with an extent of 25 acre land adjacent to the Embilipitiya power station has been developed with necessary infrastructure facilities. Land plots have already been allocated to two investors and they are in commercial production. Further more, a project proposal has been received to establish an export oriented industry for desiccated coconut and other coconut products, in this IE. Mathugama Industrial Estate (Stage-1,II) Development of Mathugama Industrial Estate, Stage- 1 has been completed and lands have been allocated for the medium and large scale industries. Asbestos roofing sheet manufacturing plant is now in commercial operation and another 02 factories are under construction. Development activities of stage - II of Mathugama IE was commenced, after completing the development activities of stage - I. Trincomalee Industrial Estate Development activities of Trincomalee Industrial Estate were commenced parallel to NagenahiraNawodaya programme and 25 acres have been developed in stage - I and 09 approved industries have been selected. At present, five factories are already in commercial operation with 850 workers and other selected industrialists are constructing their factory buildings. Development activities of the Stage - II are under way and 70% of the land development activities have been completed. Mannar Industrial Estate Mannar IE is the first IE which commenced development activities parallel to the "UthuruWasanthaya" Programme in Mannar Island in 25 acres land. Construction of two factory buildings with modern facilities for garment industries which are approved by the BOI has been completed. Now they are in commercial operation with 450 employees. Batticaloa Industrial Estate Cabinet of Ministers has already been granted the approval to set up the Batticaloa IE in 24 acres crown land at Thiraimadu village in Manmunai Divisional Secretary Division. Estimate for development activities of IE has been completed and construction works has been awarded to Central Engineering Consultancy Bureau. 4

17 REGIONAL INDUSTRIAL DEVELOPMENT DIVISION Stage -II development activities of Mathugama&Trincomalee IEs are underway. 5

18 DEVELOPMENT DIVISION industries have been selected for the food safety certification programme. The objective of this programme is to encourage processed food Development Division - I industries to obtain nationally and internationally recognized certifications such as ISO, HACCP, SLS and GMP on food safety, hygienic quality and thereby drive them to produce quality and safe food. Introduction Main objectives of the divisions are to promote local industries in order to produce high quality products to be competitive in the global market and to develop the industrial sectors in order to fulfill the local market requirements. Industrial Sectors under purview of the Division Value added tea industry Value added coir industry Processed food industry Packaging industry Spice and related manufacturing industry Value-added Tea Industry Value addition in tea is mainly done through the packaging process and adding flavours and various herbs, fruit particles and so on. Industries are encouraged to implement these processes by facilitating them to import materials and technology in duty free basis. Up to now, 10 new tea industries Awareness programmes targeting industrialists of food sector have been organized focusing on different topics such as food safety, food laws & regulations, food diversification, new generation foods, nutrition, food habits etc. to educate the industries including trends of local & global market. Packaging Industry Progress A special training programme on technology development at India Institute of Packaging (IIP) has been conducted successfully with 15 participants (technicians) from packaging industries. Awareness programmes on packaging technology for SMEs of the industry were held in Eastern province under Dayata Kirula 2013 programme. A certificate programme for packaging technicians has been organized by the Ministry with the support of regional industry chambers to increase skill levels and introduce new technologies. have been given the Temporary Import for Export Processing (TIEP) facilitation. Processed Food Industry Progress Profoods/Propack exhibition was conducted successfully for the 12th consecutive year with increased participation of local and foreign exhibitors In August local industrialists were participated at the exhibition. 116 industries have been enrolled to obtain TIEP facility which has been introduced to encourage exports. 6

19 DEVELOPMENT DIVISION - 2 industries have obtained services from the centre, generating 09 Mn as the income. Design/Manufacturing and Consultancy Jobs in Die Development Division - II and Mould Facilitating Centre Design/Manufacturing and Consultancy Jobs Jobs Clients Income (Rs) ,888,272 Introduction The Main objective of the Division is to provide facilities to strengthen the existing industries and to promote new investments to produce high quality products in order to conquer the challenging International market environment ,551, ,078,150 Total ,518,326 Source Development Division 2 Part-time Training Courses in Die and Mould Facilitating Centre Industrial Sectors under purview of the Division Die & Mould Manufacturing Industry Rubber based Industry Metal Products and Machinery Industry Boat Building Industry Automobile & Transport Equipment Industry Wood & Wood based Industry Plastic based Industry Chemical based Industry Optical & Photographic Equipment Industry Total ,738,760 Source Development Division 2 Rubber based Industry Sector Part-time Training Courses Courses Participants Income (Rs.) ,751, ,335, ,651,890 Progress as at 31 of December 2013 Die &Mould Facilitation Centre Supply of services have been started by die and mould production and development centre by utilizing Rs. 85 Million granted by the Ministry in the Moratuwa University premises and Rs. 30 Mn contribution of the University of Moratuwa along with the private sector. The Centre provides part time & full time training courses, machining operations (CNC, conventional), design & analysis, R&D activities and consultancy. The centre is successfully functioning and 131 students have been trained and 192 manufacturing The export of rubber has secured a significant place among the export crops of Sri Lanka and Sri Lanka is the 6 th largest rubber exporter and is at the forefront of solid tire export. Furthermore rubber based industries hold the position of highest value addition to their products, out of the manufacturing industries. As such, the Ministry has decided to establish a data bank to enhance the value addition in the rubber based production sector. In this regard, the ministry has already signed a memorandum of understanding (MOU) agreement with EML consultants and as a initial step information has been collected from 75 7

20 DEVELOPMENT DIVISION - 2 rubber based manufacturing industries in western province. Wood & Wood based Industry Bamboo based Industry Sector At present, Wood & Wood based industry has faced a crisis situation as a result of scarcity of commercial wood and exorbitant prices of wood based products. Therefore, as a solution, the Division, in coordination with Industrial Development Organization of the United Nations (UNIDO) has taken measures to popularize bamboo cultivation which is suitable for the climatic conditions in Sri Lanka and produce bamboo based products. Progress Currently, suitable lands have been identified with the intervention of Ministry of Plantation Industries for the expansion of bamboo cultivation and measures have been taken to persuade the investors to engage themselves in bamboo based products. Furthermore, one private industrial organization has commenced manufacturing of bamboo based products. Training Programme The division has facilitated workforce development of the industry and 15 workers from the industry have been selected for a training programme which has been planed to conduct by the Apprentice Training Institute at Moratuwa 8

21 DEVELOPMENT DIVISION - 3 Dedicated Leather Complex The Ministry has identified 75 acres land at Marichchikatti in mannar district to establish a Development Division - III dedicated Industrial Estate (dedicated leather complex) for leather manufacturing. Relocating the tanning Industry. In the regard, the land survey and Environmental Impact Assessment (EIA) are in progress. Introduction To promote and facilitate manufacturing sectors in order to produce high quality products to be competitive in the international market is the main objective of the Division. Industrial Sectors under purview of the Division Ceramic Industry Identification of Kalion/ Ball Clay & Other Mineral Deposits for the Ceramic Industry As a solution to the raw material problem faced by the industry, the Ministry has granted Rs. 8 Mn to the Geographical Survey and Mines Bureau (GSMB) for the surveys to identify Kaolin/ Ball Clay and other Footwear Industry Leather Industry Ceramic Industry Electrical & Electronic Industry Pharmaceutical & Cosmetics Industry Paints & Printing Industry mineral deposits. In this regard, 197 locations were surveyed in Gampaha & Puttalam districts and 27 commercially reliable mineral deposits have been identified by the GSBM. In addition, the Ministry has informed relevant industrialists through the advisory Progress as at 31 of December Leather Industry The Ministry in collaboration with EDB succeeded purchasing lab equipment & training equipment, machinery & tools. Leather goods and footwear Exhibition The Ministry in collaboration with EDB succeeded in carrying out an international level Leather Goods & Footwear Exhibition from 2007 and in this year the exhibition was held in 2013 for the 5th consecutive time. Through this event valuable opportunities were granted to industrialists providing access to foreign markets and to obtain modern vogue and technology for the industry. committee of the Ceramic industry on identified deposits, facilitating them to find required raw materials for their products. Technology Incubator for Electrical and Electronic Industry A technology incubator for electrical and electronic industry was established in the University of Moratuwa (UOM) to improve the knowledge on technical know-how of small & medium scale electrical & electronic industries, utilizing the funds granted by the Ministry. Technical support services including training programmes, have already been started for 10 selected upcoming industrialists. 9

22 DEVELOPMENT DIVISION - 3 Rapid Prototyping Machine The Ministry has funded to establish the Rapid Prototyping Machine in the UOM in order to support the technology development of industry sectors such as Electric & Electronics, Rubber, Gem & Jewellery etc. Short term courses have already been commenced and 11 students were awarded with Certificate in Leather and Footwear Technology. Development activities of the Training Unit are in progress. The Ministry is further assisting the project by popularizing the services provided by the machine to further increase the utility of the machine. To popularize the machine, a training programme for 20 jewellery designers & manufacturers from Northern province has been conducted in line with Dayata Kirula 2013 exhibition. Pharmaceutical Industry Establishment of Sri Lanka Pharmaceutical Laboratory The industry consists of about 200 local & foreign pharmaceutical manufacturers and about 10 large scale manufacturing companies. The Pharmaceutical laboratory has been established in the University of Colombo. Equipment has been purchased for the second stage. Skilled development programme has been held. Leather and Footwear Training Unit, SLITA Leather and Footwear Training Unit at Sri Lanka Institute of Textile and Apparel (SLITA), is a collaborative effort of the Ministry and SLITA which was established in 2010 for the development of the Leather and Footwear industry. The Training Unit supports by developing technical knowledge & skills and introducing new technologies for the employees of the industry. In addition, this measure would assist in manufacturing of high quality products, being highly competitive in global market. 10

23 INDUSTRY REGISTRATION AND MANAGEMENT INFORMATION DIVISION performance of industry sector at national level with other sectors Industry Registration and Management Information division Progress as at December 2013 Industry registration database Industry registration database is been continuously updated based on the details submitted in the registration application form. It includes basic details such as factory location, contact details, type of manufacturing products, Industry Registration and Management Information division Registration of Industrial Enterprises under the Industrial Promotion Act, No. 46 of 1990 which is enforced by the Ministry of Industry & Commerce is the main responsibility of the Industry Registration & Management Information (IR& MI) Division. IR & MI Division also maintains a database on the registered industries with data on their basic details such as location, products and contact details etc. In addition, a web based database has also been maintained with on-line accessibility to the customers to obtain basic details of registered industries through the Ministry website Furthermore, the Division disseminates and publishes the information gathered from these registered industries among interested parties such as policy makers, researchers, academics and students etc. on their request while using the same for internal purposes. A macro level database is also maintained in digital and graphical format to monitor and compare the employees etc. The total number of registered industries has increased by 2.7 % compared with the previous period. The highest growth of registered industries has been recorded under the fabricated metal product sector. Registered Industries at Ministry of Industry and Commerce in 2013 Sector Total No of Industries 1 Food beverage & tobacco 08 2 Textile, wearing apparel & 04 leather 3 Wood & wood products 02 4 Paper & paper products 08 5 Chemical, petroleum, 12 rubber & plastic products 6 Non metallic products 09 7 Basic metal products 01 8 Fabricated metal products 19 9 Other 02 TOTAL 60 Source: Industry Registration and Management Information Division 11

24 INDUSTRY REGISTRATION AND MANAGEMENT INFORMATION DIVISION Network Facilities Local Area Network (LAN) Mathale 15 Monaragala 2 The Local Area Network (LAN) maintained by the Ministry provides networking facilities with sharing the resources and accessing internet. It includes about 50 workstations and access to internet is provided through two ADSL lines. The Wi-Fi system which has been established in the Ministry premises facilitating Wi-Fi enabled devices make easier the handling of day to day official work rather than using wired devices enhancing the performance. The new server computer installed in the LAN with open source network operating system of Linux, file server, Mail Server and corporate virus guard software have further enhanced the performance of the entire system. Regional Distribution of Industrial registration as at December 2013 Polonnaruwa 4 Ampara 6 Trincomalee 3 Batticalo 2 Vavuniya 1 Jaffna 3 Mannar Source: Industrial Registration and Management Information division Library services New books, periodicals and magazines were purchased during the last period for the library after making requests from the Ministry officials about their requirements. The library also rearranged to make the place more convenient for users. Web based Developments District No of Industries The upgraded, refurbish website of the Ministry Colombo 1293 Gampaha 360 Kalutara 108 Galle 37 Puttalam 40 Kandy 82 Kurunegala 37 Mathara 40 Hambantota 15 NuwaraEliya 6 Rathnapura 12 Anuradapura 10 Badulla 7 Kegalle 16 with the web 2.0 standard model of website development provides enhanced facilities such as higher ownership in modification, on-line submission of updated data related to contact details of registered industries, on-line submission of industry registration applications for new industries etc. Furthermore, the developed on-line database on registered industries provides the facility of generating various statistical reports in more flexible manner by selecting several data fields. To make more user friendly and easy access to reach desired information quickly a process has been nitiated to change the interface d look feel of the site more attractive. 12

25 PRODUCTIVITY IMPROVEMENT DIVISION have signed the MOU s with the Ministry. In addition Walkthrough energy audits have been completed Productivity Improvement Division for the selected 15 factories by energy consultants / auditors. Industrial waste management Programme Programme on Industrial waste management and improve by products through the waste exchange in Introduction Establishing an environment which enhances the productivity of industrial manufacturing sector by upgrading the quality and standards of industrial products to withstand the competitiveness created in the constantly changing global market is the main objective of the Division. Progress as at 31 st of December 2013 Energy Efficiency Improvement Programme The Project of Energy Efficiency Improvement Programme for selected 15 Factories which was started in 2011, and the Project of Industrial Waste Management and improve the by products through the Waste Exchange in Industrial sector which was started in 2012 have been continued for the year of Steering committee has been established The project is being conducted in selected 15 factories Analysis of Primary data of energy consumption and information collection from 27 factories Awareness programmes have been conducted for the selected 15 factories and for 30 managers The Ministry has signed an agreement with a consultancy firm to carry out the energy auditing of the programme. Out of which 14 industries industrial manufacturing sector. The programme is being conducted in Western, North Western, Southern and Central provinces and linkages have been built up with organizations / institutions (Local Government Authorities- Municipal Councils, Urban Councils, Pradeshiya Saba, Chambers of Commerce and Manufactures Associations etc.) In this context, measures have been taken to develop the information network in association with industrial manufactures. Waste Management Programme in Dankotuwa Industrial Estate has been started with the Technical support of National Cleaner production Centre Sri Lanka (NCPC) and University of Moratuwa. Preliminary Report on Waste Water Assessment at Dankotuwa Industrial Estate has been submitted by the NCPC after completing the Walkthrough Survey. Quality Development Programme for Concrete and Cement Based Manufacturing Products. The project covers Western, North Western, Southern and Central provinces Collection of basic data and information has been completed from 40 concrete Cement manufactures/ producers. Identification of standards established by the Sri Lanka Standards Institution (SLSI) for concrete and cement manufacturing industry sector 13

26 PRODUCTIVITY IMPROVEMENT DIVISION Preparation of a development programme for concrete and cement based manufacturing sector, in coordination with Sri Lanka Standard Institute (SLSI), State Engineering Corporation (SEC), National Engineering Research and Development Centre (NERD) and Institute for Construction Training and Development (ICTAD) institutes etc. are in progress. 14

27 NATIONAL AUTHORITY FOR THE IMPLEMENTATION OF CHEMICAL WEAPONS CONVENTION industrialists. National Authority issued National Authority for the Implementation of Chemical Weapons Convention permits to imports schedule chemicals for 61 importers in Sri Lanka. Permits have been issued for importers under the Chemical Weapons Act and requested made by industrialists. Submitting annual documents to the OPCW Introduction Chemical Weapons Convention (CWC) is an international treaty for the prohibition of the Development, Production, Transfer, Stockpiling and Use of Chemical Weapons and on their Destruction. The Convention adopted in 1993 completely bans a whole category (chemical) of weapons of mass destruction. Unlike other conventions this includes comprehensive mechanisms to verify its prohibitions. Chemical Weapons Convention Act No. 58 of 2007 had been enforced by the Hon. Minister on 15th August National Authority for the implementation of the Chemical Weapons Convention (National Authority) is an organization which is established under the Ministry of Industry and Commerce to fulfill the national implementation measures under the convention and to serve as a national focal point for the effective liaison within the Organization for the Prohibition of Chemical Weapons (OPCW), The Netherlands and other States Parties. Progress as at 31 st December 2013 Annual declarations of 2013 were submitted to the OPCW according to the Article VI obligation of the CWC and the annual reporting of information on national programmes for protection against chemical weapons under article X of the CWC were submitted. Develop a Chemical Emergency Programme in Kalutara Industrial Zone. National Authority carried out a survey on Kalutara Industrial Zone to assist the safety and security in their respective work places and to achieve a sustainable industrial development in Sri Lanka. The industry survey was initiated in July 2012 and 23 industries were investigated at the industrial zone.during this survey National Authority made certain observations on security measures on handling hazmat chemicals, health and safety of the workers in industries. Reports of the recommendations for the above observations were distributed to the industrialists on 23 rd January 2013 at the Auditorium of the Ministry. Registration and Issuing permits for industries National Authority issues a new registration for 06 chemical importers/exporters and renewed the existing registration for 21 Fire, Safety and Security training Programe As a second step for developing a Chemical Emergency Progrmme in Kaluthara Industrial Zone, National Authority conducted basic 15

28 NATIONAL AUTHORITY FOR THE IMPLEMENTATION OF CHEMICAL WEAPONS CONVENTION training program on Fire Safety and Security for safety officers at the Kaluthara Industrial Zone. Work Place Hazard Management 06 th September 2013 To enhance the knowledge of safety officers /workers on Health and Safety within the work place, National Authority conducted workplace hazard management training on Awareness program on Hazardous Chemical Management for Sustainable Industrial Development National Authority in collaboration with the IHRA conducted awareness program on Hazardous Chemical Management for Sustainable Industrial Development. In this programme 51 participants were participated from 23 companies. 06th September 2013 at Kaluthara Industrial Awareness program on Workplace Hazard Zone premises. The workshop included Management theoretical knowledge through lecturing and provided practical training on emergency medical treatments. Training Seminar on ISO Standards National Authority in collaboration with the IHRA conducted training seminar on ISO National Authority in collaboration with the IHRA conducted one day workshop on Workplace Hazard Management at the Fire and Rescue Training Academy, Weallawatta to enhance Health and Safety within the working Environment. Standards for industrial sector to provide Pragramme on Chemical Safety of Food basic knowledge on ISO Standards, Benefits of standards for business, Requirements and guidance for use of popular standards for sustainable industrial development. In this programme 25 participants were participated from 12 companies/institutions. Awareness program on CWC and Chemical Emergency Management As per the request made by Police Training College, Kalutara, National Authority conducted three day awareness program on CWC and Chemical Emergency Management for police officers at Police Training College, Katukurunda from 25th -28th March About 250 police officers were participated for this programme. National Authority in collaboration with the IHRA conducted Pragramme on Chemical Safety of Food. The objective of this programme is to provide basic knowledge on Chemical Contaminants in Food and food additives, Chemical Food Sanitation and Hygiene, Negative Impacts of Microbes on Food Industry, Food and Consumer safety regulation in Sri Lanka and Safe use of Chemicals in Food Industry. In this programme 51 participants were participated from 35 food manufacturing and related organizations. Preparedness of chemical emergencies in CHOGM As per the request made by the taskforce Secretariat for CHOGM, National Authority carried out series of inspections and awareness on chemical emergency 16

29 NATIONAL AUTHORITY FOR THE IMPLEMENTATION OF CHEMICAL WEAPONS CONVENTION preparedness and to manage disasters in CHOGM main and side event venue areas. transporting hazardous materials in the Holcim. In these series of inspections experts of National Authority covered Hambanthota, Galle, Negambo, Jaela, Baththaramulla and Colombo venue areas. Foreign trainings Officers from Sri Lanka Customs Dept., Government Analysis Department and Water Board had given international training courses in relevant field to develop their skills and working abilities. The training programmes were organized by the OPCW in collaboration with Government of Malaysia, Switzerland and Finland. Pragramme on Chemical Safety of Food for Hotel Sector National Authority in collaboration with the IHRA conducted a Pragramme on Chemical Safety of Food for hotel sector on 31 st October Twenty five participants from hotel sector participated to this programme. Awareness program for Chemical Importers/Exporters in Sri Lanka Due to most of scheduled chemicals importers didn t registered with National Authority an awareness programme was conducted by National Authority at the Auditorium of the Ministry to aware CWC obligations and to register these importers. Awareness Programme on Transportation of Hazardous Materials An awareness programme was held on 21 st December 2013 at the Auditorium of the IHRA to aware the personals that are 17

30 CORPORATIONS & STATUTORY BOARDS DIVISION The production of the Chemmani saltern has been suspended as production of salt at Chemmani is Corporations & Statutory Boards Division uneconomical due to geographical reasons. In addition to 110 acres, 53 acres of extra saltern area was developed under the Mannar Saltern Development Project and average salt production of 4000 MT will be increased up to 5000 to 6000 MT after the development. The Company is producing and distributing iodated salt in 1 Kg packets under Introduction The Corporations & Statutory Boards Division of this Ministry endeavors to support all Corporations and Statutory Boards coming under the purview of the Ministry of Industry & Commerce to perform as viable and sustainable public enterprises. To achieve this, the Division takes measures to enhance the productivity of all assets and maximize their revenue, expand the business activities by introducing appropriate business strategies and business models. In addition, the Division coordinates the regulatory activities of these statutory institutions. The state owned enterprises which are coming under the purview of Corporations and Statutory Boards Division are, 1. Manthai Salt Limited 2. Kahatagaha Graphite Lanka Limited 3. Sri Lanka Institute of Textile and Apparel 4. National Enterprise Development Authority 5. Lanka Leyland Limited 6. Lanka Ashok Leyland Limited Manthai Salt Limited the brand name of Raja Salt and reached the target of 50,000 packets per month. The Company has planned to install a new mechanical salt washery (Iodated crystal plant) at the cost of 35 million. In the year 2013, the company has produced 3,863 MT of salt and has earned Rs mn. from selling of 3,771 MT of salt. Kahatagaha Graphite Lanka Limited Kahatagaha Graphite Lanka Limited (KGLL) is a fully Government owned limited liability company. This company is the largest graphite mining organization in Sri Lanka, which operates under ground mining up to 2000 ft. depth at Kahatagaha, in the Kurunegala District. KGLL is the only public entity which has capacity and strength for mining of graphite. During the year 2013, the company has produced MT of graphite and exported MT of graphite. The total earnings from the selling of graphite during the period of 2013 were Rs. 194 Mn. Further to the above activities, explore and detect new graphite deposits, Investments for value addition has been recognized as development activities of the company during this period. Manthai Salt Limited is a Fully Government owned Company, engaged with production and trading of salt. At present Mannar saltern and Chemmani salterns are under the company and Mannar saltern is producing normal salt, crushed salt and iodated salt. 18

31 CORPORATIONS & STATUTORY BOARDS DIVISION Sri Lanka Institute of Textile and Apparel Sri Lanka Institute of Textile & Apparel (SLITA) is engaged in training of personnel for the industries allied to the textiles and apparel sectors and the supply of services such as inspections and consultancy. During the year 2013, the institute has conducted 120 programmes with the participation of 2,253 trainees. The institute has earned Rs Mn. revenue and Rs mn. net profit during this period. shares holds by the GOSL) having equity of 42% and Ashok Leyland Limited of India having equity of 28%, and left 30% holds by the Public. The Company assembles Ashok Leyland range commercial vehicles and is in the business of import and marketing of Ashok Leyland fully built buses, trucks, truck chassis, spare parts, generators and accessories. The Company also carries out repairs and recondition of commercial vehicles including body fabrication on new Ashok Leyland goods and passenger transport vehicles. National Enterprise Development Authority As a result of the recognizing the SME sector as one of the important sectors to develop the Sri Lankan economy, National Enterprise Development Authority (NEDA) was established under Act No. 17 of 2006 to promote, support, encourage and facilitate enterprise development with special emphasis to the Small and Medium Enterprise sector of the country. Among these, the Authority has contributed to the development of enterprises of the Divisional and Districts by the way of Establishment of District Enterprise forums, Gamata Obina Viyapara Programme, and Cluster development programmes. Lanka Leyland Limited The Lanka Leyland Limited (LLL) is a 100% Government Owned Public Limited Company which comes under the purview of the Ministry of Industry and Commerce since Lanka Leyland Limited does only managing 42% of Government investment in Lanka Ashok Leyland Limited. Small and Micro Industries Leader and Entrepreneur Promotion Project III Revolving Fund (SMILE III - Revolving Fund) SMILE III - Revolving Fund Project has been implemented through the Project Management Unit of the Ministry of Industry and Commerce since 01 st of May The SMILE III Revolving Fund loan scheme would provide low interest rate loans to establish new enterprises or to enhance either productivity or their level of operation and improve quality of their products. Further, the loan scheme will cover the improvement of organizational capacity and product development of SME s. The interest rate for the General Loan scheme is 9% and 5% for the Technical Transfer Assistant Loan scheme and the Rs. 5.0 Mn. and Rs. 2.5 Mn. maximum loan amount is granted under the above two loan schemes respectively. Pay back period for the General Loan scheme is Lanka Ashok Leyland Limited Lanka Ashok Leyland Limited is a public quoted company incorporated in Sri Lanka in 1982 as a joint venture company between Government of Sri Lanka (represented by Lanka Leyland Limited, which is 100% The project is granting sub loans through 09 participating Credit Institutions (Bank of Ceylon, People s Bank, Regional Development Bank, Commercial Bank, Hatton National Bank, Seylan Bank, National Development Bank, Sampath Bank and DFCC 19

32 CORPORATIONS & STATUTORY BOARDS DIVISION Bank ) and loan disbursements was commenced from July, Rs 3200 mn worth of 992 Loan applications were received during the period of July 2013 to 31 st considered as eligible sub projects. The Project Management Unit received Rs Mn worth of 124 eligible sub projects and allocated funds for these sub projects. December 2013 and 524 loan applications were Progress as at 31 st December 2013 as follows, SMILE III - Revolving Fund Progress as at 31 st December Name of the PCI No. of Applications Refinance Reimbursement Received Approved as eligible sub projects Not Eligible No. of sub projects Refinanced Amount (Rs. Mn.) No. of sub projects Amount (Rs. Mn.) HNB NDB RDB DFCC Sampath Seylan BOC People s Commercial Total Source Corporation and statutory Board Division 20

33 KAHATAGAHA GRAPHITE LANKA LIMITED traditional buyers such as Asbury Graphite Company of USA, Graphexel Company of U. K. and S. Kato & Kahatagaha Graphite Lanka Limited Company of Japan. After year 2000, Graphite exports have entered the European market dealing with Graphexel Co. in 2011, exporting high grade graphite to United Kingdom. Kahatagaha Graphite Lanka Limited (KGLL) has exported M/T during the period of After Introduction Kahatagaha Mines are located in North Western the revival of mine from 2007 up 31 st to December 2013, total tonnage is 4065 M/T M/T have Province of Sri Lanka at Maduragoda, been increased during the period of 2013 comparing Dodangaslanda in the Kurunegala District, with last year. approximately 90 km. from the capital of Colombo, and managed by Kahatagaha Graphite Lanka Funds Limited. (KGLL) It is a fully government owned During the period of 2013 upto 31 st December total public limited liability Company, under the income is Rs m.n. After the re-opening of Companies Act No. 07 of 2007 purviewed by the Mines Kahatagaha Graphite Lanka Limited has Ministry of Industry and Commerce and the major earned Rs.619 m.n. from 2007 upto December share holder is Secretary to the Treasury. KGLL main policy making body is it s Board of Directors headed by executive Chairman and KGLL derives the essence of its corporate policy from its line Ministry and the Treasury. Progress as at 31st december 2013 Production In 2013 up to December the total Graphite (Run of Mine) Production is M/T. After revival of Mine from 2007 up to 31 st December 2013 total production is M/T. Comparing with last 10 years, monthly production per head has increased from M/T to 1.37 M/T. Productivity Comparing with last year, Kgs. man shift has been increased up to 55 Kgs. Sales Operational expenses of the mines are borne by KGLL and no funds are obtained from the Treasury. As at end of December 2013 Bank and Cash Balance were Rs mn. Rs. 5.0 mn. has been invested as a gratuity fund. Stock Current stock availability as at end of December 2013 is M/T and it s approximate market value is Rs.194 mn. Work force The total work force is 119 including skilled miners and other relevant technical staff. One Engineer and One Senior Technical Officer have been outsourced from Lanka Phosphate Ltd. and Geological Survey and Mines Bureau, respectively and a qualified Chartered Engineer also has been outsourced on 06 month contract basis. The Graphite market was activating with regular, 21

34 MANTAI SALT LTD Chemmani Saltern The total extent of Chemmani Saltern is 200 acres of which 80 acres are used for salt manufacture. The Mantai Salt Ltd production activities were carried out with using the available resources. The production staff of production for last several years, but expected quantity of salt could not be produced due to poor soil condition and lack of obtaining sufficient quality Introduction Mantai Salt Ltd. (MSL) has long history in saltproduction in Sri Lanka.It manufactured common salt and distribute in the form of Iodated salt,crushed salt, industrial salt, in our country. Year Name of Institute sea Braine and also fresh water seepage from adjourning land. Since Saltern have been running at a lost for several years due to low productivity, salt production from this area has been suspended from the year 2012 and exploring the possibilities for aquaculture project. Since the salt production has been stopped. From To Production Salt Department Year Production (MT) Sri Lanka National Salt Corporation Lanka Salt Ltd. Mannar Chemmani Total 2011/2012 4, , /2013 4,527-4, /Sept. Mannar Saltern under G.A.Mannar 2013/2014 up to Dec. 3,819-3, /Oct. Up to date Mantai Salt Ltd. Sales Mannar Saltern Total extent of Mannar Saltern is 240 acres of which 110 acres was in production area up to acres were developed in 2011 and now the total production area 163 acres. Average salt production before development 4000 MT.Which is 2.6% of total salt production in Sri Lanka. At the end of 2013, Year Sales (MT) Revenue (MN) Profit (MN) 2011/2012 4, /2013 3, /2014 up to Dec. 3, production was increased up to 4527MT. 22

35 MANTAI SALT LTD Development Activities of Mantai Salt 100% of the development work has been completed with utilizing 25 MN under the development project of 25 MN allocated by Treasury. Iodated Salt in 1 KG Packet Production and distribution of iodated salt in 1 Kg laminated packet under the brand name of Raja Salt was established and reached the target of 50,000 packets per month and demand is increasing. Quality The process of obtaining SLS Mark is almost completed and awaiting for SLS certificate. Finance This organization is a profit earning company and it is generating the finance by production and sales of common salt and it is managed by its own funds with providing reasonable dividendsto the Treasury. 23

36 NATIONAL ENTERPRISE DEVELOPMENT AUTHORITY (NEDA) National Enterprise Development Authority (NEDA) Development Programs in 2013 PolicyInitiatives for Small and MediumEnterprises (SME) The policy formulation and supporting to review the policy for SME sector is one of the main activities. The following policy initiatives have taken in the year of 2013 with the active participation of NEDA. Formulation of Small land Medium (SME) Policy This program was launched under the SME development program between the German (GIZ) and Sri Lankan government development program up to the year 2016.The program mainly focused to formulate a National Policy for SME sector. NEDA is in the process to identify the main issues focused to the SME sector. Committee was established association with GIZ SME development project and developed draft SME Policy And also, NEDA conducted four SME awareness programs related to SME policy. National Human Resources and Employment Policy (NHREP) The National Human Resources and Employment Policy (NHREP) were launched by the senior minister s office with the contribution and actively participation of NEDA. This policy already established in earlier part in 2013 and was subjected to prepare an action plan by focusing the main stakeholders. NEDA involved focusing the human resources need for development to the SME sector &the employment generation from the SME sector effectively. Traditional Industries and Small Enterprise Development Ministry has been selected as the implementation ministry with selection of NEDA also the implementation partner. District Enterprise Forum (DEF) District Enterprise Forums (DEF) is established to provide business development services to the entrepreneurs. DEF forum is established at District level and consists of Governmental and Non- Governmental BDS (Business Development Services) providers, Chambers and Trade or Business Associations of the District. NEDA has involved for activities in District Enterprise Forum in Kurunegala, Anuradapura, Matara, Kalutara, Hambantota, Puttlam, Kegalle, Kandy, Matale, Badulla, Batticaloaand Mannar Districts from 2010 to And also NEDA is establishing Regional Enterprise Forums (REF) at Divisional secretariat Level. Publication of National Directory of BDS providers & strengthening of BDS Business Development Service providers have major role to provide services for performing entrepreneurs. Different types of BDS providers are involving with SME sector development and mainly assists to marketing, technology development & transfer, financial, entrepreneurship development, information technology etc. NEDA has completed printing activities of BDS Directory and completed national launching program and regional launching program in Sothern and Central province. Rest of activities will be carried out in Sector Development Program Floriculture Sector Development Program North Western Province NEDA has carried out Local Competitive Advantage Program (LOCA) in Kurunegala District. It has identified that floriculture sector is one of competitive business sector in North Western province. Therefore, NEDA carried out floriculture sector convention workshop. It was a successfull workshop and growers associations, exporters & other government & non governmnet instituts related to floriculture sector developmnet were participated. And also, steering commitee was established representing growers associations, exporters, government instituts and bankers. 24

37 NATIONAL ENTERPRISE DEVELOPMENT AUTHORITY (NEDA) As per discussion on above program, NEDA identified some issues related to this floriculture sector. In 2013, NEDA has carried out entrepreneurship development training programs (for 68 beneficiaries) for growers to develop entrepreneurship knowledge & skills and provided technical trainings. In addition, NEDA has conducted one day marketing training program to improve their marketing knowledge & skills. And also, NEDA has provided technical training program for 30 dairy farmers in Trincomalee district at Wannaigama training center. Divinaguma National Program Ministry of Economic Development has invited to National Enterprise Development Authority for contribute for the divineguma and this program is carrying out in all districts. Under this cottage industry development program, NEDA is involving with training programs, bank clinic machinery grant and other fallow up activities for selected beneficiaries from promotional exhibition under the DiviNeguma National Program. In addition, NEDA has planned with Ministry of Traditional Industries and Small Enterprise Development to implement incense stick program In 2013, NEDA has completed entrepreneurship development training programs as given bellow. Activities were carried out as given bellow District DS Division No of Beneficiaries identified Badulla Meegahakiula 28 - Matara Hakmana 38 - Colombo Moratuwa Kalutara Bulathsinhala Panadura Horana Agalawatte Kurunegala Kuliyapitiya Kegalla warakapola Rambukkana Ruwanwella 30 - Matale Matale Gampaha Attanagalle Technical training provided District Beneficiaries trained Galle 75 Matara 296 Kurunegala 262 Matale 98 NuwaraEliya 106 Mulathive 72 Batticaloa 214 Total 1124 Incense stick program: Total beneficiaries 347 New business creation and expansion Financial institutions prefer to work with trust worthy customers and delighted to offer loans based on collaterals. The NEDA believes, credits can be recovered, if the business runs well. To ensure the sustainability of the business, entrepreneurship skills and financial literacy play a key role. Hence, NEDA has joined hands with financial institutions to encourage established entrepreneurs or potential entrepreneurs to start new businesses or expand existing businesses at the regional level. Programmes will be implemented under 06 major categories: aware 25

38 Area Participants New Business Existing Business Loan issued Amount (Rs Mn) Loan requested Amount requested by beneficiaries (Rs Mn) PROGRESS REPORT 2013 NATIONAL ENTERPRISE DEVELOPMENT AUTHORITY (NEDA) bankers, selection of beneficiaries, awareness wa) programmes for selected beneficiaries, capacity development for beneficiaries, financial assistance Kantha le Mn 08 8 Mn and follow up activities have also been planned. In this regard, 10 entrepreneurship development programmes were carried out. Jaffna Mn kandy Mn Mn Mn Progress of Entrepreneurship Development in 2013 Mount Lavinia Total Mn M n Women Entrepreneur Development program Negom bo Panad ura Mn Mn Horana Mn Kebithi gollew a Thodu wawal a Gampa ha Piliyan dala Ambal angod a Kandy( Pilimat halawa ) Mn Mn Mn Mn Mn Mn Mn Mn Mn Mn As per Mahinda Chinthana Vision for the Future, a special emphasis has been given to develop women entrepreneurship. Providing opportunities for women to become entrepreneurs are an important approach to develop entrepreneurship skills in women to earn a sufficient income. It is advantageous not only for the women themselves but also for their families. Therefore, the NEDA has designed a programme to improve knowledge & skills on entrepreneurship, assist financially linking with financial institutions, improve technical knowledge & skills and facilitate market access. In 2013 four districts were selected for implement this program (Hambanthota, Monaragala, Kurunegala & Kandy). Selection of women entrepreneurs are done through women organization under guidance of NEDA. Women business associations were formed with supporting of women association. Marketing assistance, financial assistance and other BDS services are provided through Business association with supporting of women organization. NEDA carried out WEDP in Kurunagala district with supporting of Kurunegala women chamber. 30 women entrepreneurs (Beauty culture) were selected for the program and formed business association. Polgah awela Wenna ppuwa (chilaw ) Mn Mn Mn Mn Polonn aruwa (kekira Mn 10 1 Mn 26

39 Province District D. S. Division Place PROGRESS REPORT 2013 TEXTILE INDUSTRY DEVELOPMENT DIVISION Rs. 90 Million has been allocated to the handloom industry for the development programmes are being Textile Industry Development Division conducted by this Ministry in addition the Ministry of Economic Development under Divineguma, allocated Rs. 30 Million for handloom village programme as a special project. Each center was allocated 35 looms of which 15 to be installed in the training center for training purpose. Introduction Textile Industry development division is strengthening and facilitate the handloom, power loom and apparel industries by formulating policies, strategies and provide financial support in view of empowering human resource development, productivity and quality improvements. The Ministry of Industry and Commerce work together with the private sector, Apex bodies and Provincial Councils to achieve the target mentioned in Mahinda Chinthana Vision for The balance 20 looms with a set of accessories and yarn gave to the weavers after successful completion of the training those establishing handloom villages. Under the programme, 300 new employment opportunities in handloom based cottage industries were established (20 Handlooms weavers X 15 districts = 300). Pilot Project The pilot project was implemented in the following sites in consultation with the Provincial Councils. the Future. Handloom Industry The Handloom Industry should be developed in the form of finance, technology and market subsequently. The Task Force appointed by the Ministry of Industry and Commerce to identify issues pertaining to this industry and to draw up a business model for a sustainable development of the Industry, focused the study on key areas namely Marketing, Training, Designing, Technology and Entrepreneurship Building. The sectors in the industry are as follows. Private-Companies, Individual entrepreneurs, self employed Government- Production centers managed by Provincial Councils Co-operative Societies. The handloom development programmes Western Colombo Padukka Arukwatta Eastern Ampara Kalmunei Nathpettimunei Uva Monaragala Buttala Okkampitiya Northern Mannar Mannar Erikkilampitti Southern Hambantota Ambalantota Poliyarwatta Divineguma Project The DiviNeguma project was implemented in the following sites under the Divineguma Development Programme, with association of Ministry of Economic Development and provincial councils. implemented by this ministry in 2013 which were premeditated based on recommendation of the Task Force were as follows. 27

40 TEXTILE INDUSTRY DEVELOPMENT DIVISION Province District D. S. Division Place In view of revival of local textile industry, the ministry North Central Sabaragamu wa North Western Anuradhap ura Palugaswewa Namalpura Kegalle Ruwanwella Dunumala Puttalam Nattandiya Narawila has taken primary actions through domestic Textile Allocation Committee (DTAC) to supply uniform materials for Three Armed Forces, Department of Police, Special Task Force, Department of Civil Securities, Department of Prison and National Cadet Corps. 100% of the 11 million school uniform material requirement was allocated among the local textile North Kurunegala Weerambuge Kalugamuwa Western dara Southern Galle Ambalangoda Galaboda Western Kaluthara Bulathsinhala Mahagama Uva Badulla Soranatota Kandegedara Eastern Batticoloa Eravur Eyangerni Central Kandy Minipe Ambagahapel assa Nothern Mulative Marittampattu Mullayaweli manufacturers. The ministry has taken primary actions through domestic Textile Allocation Committee (DTAC) in view of facilitating the domestic textile industry in supplying raw material for Three Armed Forces, Department of Police, Special Task Force, Department of Civil Securities, Department of Prison and National Cadet Corps. Requirement of uniform material of the Three Armed Forces, Department of Police, Special Task Force, Department of Civil Securities, Department of Prison, National Cadet Corps and School Uniforms for the year 2013 Under the programme to Reactivation of underutilized looms and accessories in handloom centers, allecation made for repairingidle looms of the handloom centers of Northern, Central, Uva, Sabaragamuwa, Western, Southern and North Central provincial councils. Under the training Programmes on Product Diversification, Yarn Dyeing and Colour Matching of handloom products 175 were trained in 08 training programmes. Under the Weavers Training Programmes 11 weavers Category Requirement of uniform material of the Three Armed Forces, Department of Police, Special Task Force, Department of Civil Securities, Department of Prison and National Cadet Corps Requirement of School Uniform materials Quantity of distributed (Meters/Units) Meters 5,230,700 Units/ Pairs 1,981,504 Meters 11,011,000 represent the 09 provinces were trained on handloom designing and product development training in the Indian Institute of Handloom Technology in Kerala, Indial. Power loom Industry (Supplying Uniform materials for Government Institutions) Productivity Improvement Programme (SLITA) Rs. 05 Mn was allocated for this programme. 12 factories have taken on board and provided consultancy to achieve the set targets through inhouse training and delivering of consultancy at the production floor. 28

41 TEXTILE INDUSTRY DEVELOPMENT DIVISION Skills Development Training Programme (SLITA) The ministry in collaboration with SLITA initiated SME skills development programme to provide appropriate training on concessionary basis to develop the management and technical skills of the employees in the SME apparel sector to overcome the precise setbacks in the competitive industry environments. Rs. 15 Mn was allocated for this programme. 845 employees in 20 Small and Medium Sector Handloom industries were trained under 20 programmes. International / Local Image Building Programme (JAAF) The division in collaboration with Joint Apparel Association Forum (JAAF) is conducting International Market Development and Image Building Programme in view of improving positive image of the apparel industry, creating world class reliable manufacturers and networking and establishing Sri Lanka as a top Apparel Export Service Division Apparel Export Service Division is functioning as a sub Division of the Textile Industry Development Division of the Ministry and its main role is to provide the following services required to facilities exports of garments and allied products. The division has taken steps to implement the online apparel export documentation system to simplify the export documentation procedure in collaboration with Sri Lanka Customs under the ASYCUDA System, which mitigate the time and resource waste of the exporters. Progress as at 31 st December 2013 No. of new factories registered 20 No. of Buying and Liaison offices registered 01 No. of residential visas recommended to 42 foreigners during the period apparel supplying destination among buyers and global consumers through online websites, marketing events and forum and direct marketing.in addition it is focusing on building a better image among general public through implementing programme for workers welfare and participating at DayataKirula. Rs. 15 Million has been allocated for this programme by the Ministry in No. of new non manufacturing exporters registered No. of Certificate of Origins issued to exporters to EU countries 06 29,000 Exports approved by Export Division as at 31 st December 2013 Garments Quantity (Dozen) Value (US Dollars) Registered Manufactures 1,564, ,221,339 Registered Exporters (non manufactures) 105, ,067, Total 1,669, ,289,

42 DEPARTMENT OF TEXTILE INDUSTRIES matters involving policy decision on the said subject, centralized activities and provision of services Department of Textile Industries towards the development of the industry by way of coordination with the textile industry sector of the Provincial Councils. Introduction According to the 13 th Amendment of the Constitution of the Democratic Socialist Republic of Sri Lanka the matters involving policy decision on the said subject, centralized activities and provision of services towards subject relating to handloom textile industry has been the development of the industry by way of vested with the Provincial Councils. In this context, the Department of Textile Industries is entrusted with the coordination with the textile industry sector of the Provincial Councils. Progress as at Activities Progress New Recruitments 14 Sinhala medium and 2 Tamil medium textile instructor were recruited Renovation work carried out Textile schools-pinnawala, gatabe, Watapuluwa, Nillur, Katubedda. Circuit Bangalows-Nuwara eliya, Anuradapura. Setup Textile sales outlet at the Research Training Design and service Centre at Katubedda. Compensation payments Total amount of Rs:68,277, paid as the compensation payments for the 2nd step fpr 1356 empoyees those who obtained less than 10 years of public service I the power loom projects which were privatized during the period of Training Schools No of Textile Training schools 11/No of students -133 (Acadamic year 2012/2013) No of design training schools -02/No of students-24 Dayata kirula Census regarding handloom Textile Industry was conducted in Kurunegala,puttlam and kegalle distrct. National Exhibition Only the Trade fare and the award ceremony postponed due to the Accident fire at the BMICH premises,but awards and certificate given to those who performed In the National completion. 30

43 DEPARTMENT OF TEXTILE INDUSTRIES Divinaguma Fundermental training was given to 240 newly selected manifacturers from and provided necessary equipments to 39 manufacturers Kalutara,Galle,Matara,Hambantota,Rathnapura,Vaunia,puttlam and Badulla. Ihala Madampalla Textile village Handed over yarn and nessarry eqvipments for 80 benificiaries of phase 2 and conducted taaining activity for 70 benificaries of phase 3. In sevice training programmes 27 prgrammes for those who engage in provincial council,cooperative sector and private sector. 4 work shops for the instructors in the departments. 3 programmes for the pupils. Issue two books related to handloom textile desinge techeniques and arrangments were made to provide those books to provincial councils. Construction of Handloom textile dye centre has been initiated. 31

44 MACRO POLICY DIVISION Training The training activities have shown a remarkable growth during the year 2013 due to the favourable Sri Lanka Institute of Textile and Apparel condition of the textile and apparel industry. In addition to the structured training programmes, Merchandising Management, Diploma in Clothing Technology, Certificate in Fashion Designing and Product Development Courses. Full time Diploma training programme is the main structured Introduction Sri Lanka Institute of Textile and Apparel, SLITA was established in 2009 under the Act No. 12 of 2009 and started operation from 15 th June SLITA is one of the top Institutes in Sri Lanka dedicated to train manpower in textile, apparel, footwear and allied industries. In addition to training offered, the Institute provides technical services, consultancy and undertakes physical and chemical textile and apparel testing. The Institute offers long-term Diploma, short-term and customized training programmes in the field of textile and apparel technology management. SLITA testing laboratory is accredited with ISO certification for testing. The strategic decision taken to establish SLITA by amalgamating Textile Training & Services Centre (T&SC) and Clothing Industry Training Institute (CITI), ensures optimum utilization of human resources, equipment and space availability for an efficient and productive service. Further, SLITA took its path into a total transformation with re-organized six departments and management structure to face the emerging business challenges to serve the Sri Lankan Textile and Apparel Industry. Management structure of SLITA has created clear lines of authority and responsibility with the defined deliverables to generate revenues for its business continuity. programme which has been developed to meet the demand of the middle management employment requirement in the textile and apparel sector. During this period, Institute has focused more on long term Diploma programmes and the Open University of Sri Lanka has also recognized SLITA Diplomates to grant exemptions to persuade their studies leading to Degrees in Textile and Apparel Technology. Meanwhile Institute organized its Diploma Certificate Awarding Ceremony at BMICH in April for 194 students. With the increased intake of the Diploma, Institute arranged job opening days for the Diplomates to find their employment needs after the completion of the training in the reputed textile and apparel companies. During this period, 84 long term, short term and customized training programmes were conducted for 1061 participants of school leavers and industry personnel. Full time Diploma was started in March and accommodated 60 students for the batch and they will be continuing their studies at the Institute. In line with the increasing number of long term training programmes, staff development programmes for academia were taken place locally and overseas. Total income from training was Rs Mn. which shows a significant improvement compared with the same period of the last year. 32

45 MACRO POLICY DIVISION Testing Laboratory is accredited with ISO and provides the reliable testing services to the private and public sector Institutions. Income from the testing services became the second major revenue generation to the Institute during the period compared with the income apparel factories to improve the productivity. During the first six months, 7 small and medium sector factories were taken into the programme and SLITA consultants delivered the consultancies to the factories for the improvement of quality and efficiency for them to be competitive in the export from training. It has shown a considerable decrease and domestic markets. Under this programme, of income from the testing undertaken from public sector organizations due to the unavoidable delays in receipt of samples. However, the Testing Laboratory was able to earn Rs Mn. for undertaking testing out of 60,965 physical and chemical tests from the private sector and a few government agencies. consultants addressed the issues at the manufacturing floors for them to be efficient. Beneficiary factories have to meet the 4 targeted milestones for the completion of the programme and consultants transferred technical knowhow through the training programmes during the programme Testing Laboratory has taken initiatives to undertake period. Progress of the Productivity Improvement leather and footwear testing for the Leather & Footwear Industry Sector. As a result of that, SLITA Laboratory provides technical services to the Footwear Industry for its quality improvement. Consultancy SLITA provides technical support to the Ministry of Industry & Commerce funded textile and handloom projects to re-organise the handloom industry in association with Department of Textile Industries. Under this initiatives training and consultancy programmes were introduced to the textile and handloom industry in Wayamba and Eastern Programme is reviewed by a Steering Committee comprising all stake holders. The second group of 5 SME sector factories was also taken into the programme in August 2013 to deliver the consultancies. A sum of Rs. 15 Mn. has been allocated for the Productivity Improvement Programme for the year Skill Development Training Programme Skill Development Training Programme is focused on the development of the skills of the human resources of the SME sector factories in the areas of technology and management. During the year, 14 inhouse and Provinces. In addition to that, consultancy works institutional training programmes have been related to the fabric technology and industrial engineering for apparel industry have been undertaken for the public and private sector. Productivity Improvement Programme Ministry of Industry and Commerce, Sri Lanka Chamber of Garment Exporters, Domestic Garment Manufacturers Association and SLITA are the stake holders of the Productivity Improvement Programme to assist the small and medium sector textile and conducted to train 831trainees by SLITA. Under this programme, the training needs of the prospective factories are identified prior to organizing tailor-made training programmes for the factories of their interest. During this period, the skill development programme was imperative to address the issues of skills needed to enhance the productivity. Ministry of Industry and Commerce allocated Rs.5 Mn. for this programme in 2013 and SLITA has already utilized the funds of Rs.5 Mn. for this programme. 33

46 MACRO POLICY DIVISION Leather & Footwear Training Ministry of Industry & Commerce recognized that the Leather and Footwear industry has export potential and a large workforce of 30,000 personnel is presently employed directly and about 5,000 persons are indirectly employed in the sector. SLITA has already introduced training programmes on Leather and Footwear Technology and the second programme were designed to sustain the cottage industry and for the upliftment of living standards of 308 beneficiaries. SLITA encourages the participants to avail themselves of the facilities offered under the Divineguma National Programme. The Certificate Awarding Ceremony for Divineguma Beneficiaries was held in Mannar for 280 beneficiaries in September was conducted in March During the past 8 ½ months, Institute has been able to receive the necessary machinery to establish the proposed Leather and Footwear Training Unit at SLITA. First group of 11 students who followed the Certificate in Leather and Footwear Technology Course was awarded the certificates at the BMICH in April Research and Development Unit Setting up of the consultancy unit was formed in June 2013 under the guidance of a Consultant to undertake, promote, foster and engage in research for the extension of knowledge to factories connected with the textile and clothing industry. Initially, research and development unit started an island-wide research to collect data from the textile, handloom and apparel industry to establish a data base at SLITA to fetch the necessary statistics for the official use. Divineguma National Programme SLITA participated in Divineguma National Programme by implementing cottage industry training programmes in Kalutara and Mannar districts. Under this programme, Institute conducted 6 training programmes in Kalutara and 8 training programmes in Mannar with the guidance of District Secretaries. Training Programmes in Pattern Cutting, Grading and Styling Development in Garment Manufacturing. Textile Batik Printing and Footwear Manufacturing 34

47 COMMERCE SECTION

48 DEPARTMENT OF COMMERCE Progress as at 31 st December 2013 Multilateral Affairs Division Department of Commerce Introduction World Trade Organization (WTO) Promoting and safeguarding Sri Lanka s foreign trade interests within the Multilateral Trading System, which is governed by the WTO disciplines, has been the foremost function and the core responsibility of the Permanent Mission of Sri Lanka to the WTO (Geneva- based DOC The Department of Commerce (DOC) is the officers). advisory arm of the Ministry of Industry and Commerce on formulation and implementation of Sri Lanka s foreign trade policy at bilateral, regional and multilateral level. This responsibility, inter-alia, includes (a) negotiation, operationalization and monitoring of Sri Lanka s free/preferential trade agreements, (b) steering of Joint Economic Commissions with other countries, (c) representing Sri Lanka s at various international trade policy related fora. The main activities carried out in the Multilateral context include active participation in the ongoing negotiations under the Doha Round of Trade Negotiations (Doha Development Agenda - DDA), due to the growing Members expectations. In 2013, WTO Members focused on negotiating a smaller package of trade issues as a first step to reinvigorating the stalled Doha Round. The final deal was adopted as the Bali package at the 9th WTO Ministerial Conference On the promotional front, the DOC plays a key held in Bali, Indonesia from 5-7 December. role in organizing / facilitating wide range of trade, investment and tourism programs, which support expansion of Sri Lanka s commercial and economic interests overseas. Organizing of business delegations, trade fairs, investment forums, tour groups, media campaigns, conducting market surveys, settlement of trade disputes are core functions in this regard. The Permanent Mission in Geneva participated in specific WTO Committee meetings such as Market Access, Agriculture, Safeguards, Sanitary and Phytosanitary Measures (SPS), Technical Barriers to Trade (TBT), Trade and Development etc., with the objective of addressing measures that impede market access for Sri Lanka s exports. The above activities make a valuable contribution in achieving the development objectives set forth in the Mahinda Chinthana Idiri Dakma - Vision for the Future. Liaising with other key international organizations such as the UNCTAD and the ITC to secure technical assistance for trade-related capacity building in Sri Lanka. The Bali package marked the first successful trade deal since the establishment of the WTO 35

49 DEPARTMENT OF COMMERCE and the indefinite suspension of the Doha Round powder products beyond its bound rates at the of negotiations. As part of the package, WTO. The discussions are continuing with the Members also agreed to formulate a work programme in 2014 to map out continued negotiations on the Doha Round with a view to concluding the latter as early as possible. Trade Facilitation objective of finding an amicable solution to the issue. In close collaboration with the other affected countries (Turkey, Australia etc.,) and the Advisory Centre on WTO Law (ACWL), the In the context of the DDA negotiations, the main outcome of the package was the adoption of the Agreement on Trade Facilitation, a new WTO Agreement which seeks to harmonize Members commitments on border measures and customs procedures, particularly through regulation of procedures on fees and charges, transparency and freedom of transit. Members agreed in Bali to submit by July 2014, their individual schedules of those commitments under the Agreement which can be implemented immediately on entry into force of the Agreement. Mission played a key role in urging and pressurizing the Government of Indonesia to terminate the safeguard investigations it has initiated on wheat flour imports from Sri Lanka. The high duty imposed by Indonesia as a provisional safeguard measure during investigation period had adversely affected Sri Lanka s wheat flour exports to the Indonesian market. Out of the US $ million worth of Sri Lanka s total exports to Indonesia in 2012, as much as 82% (US$ million) consisted of wheat flour exports. Cancun S&D package India as a safeguard measure imposed a floor price for import of MDF boards from Sri Lanka. The Mission has also been supporting a package of 28 proposals (Cancun S&D package), which aims at enhancing flexibilities for developing countries under the Special and Deferential Treatment provisions, contained in different WTO Agreements. Due to the intervention of this Department, the Indian authorities reduced the floor price to a workable level. During the period under review, Vietnam imposed Sanitary and Phytosanitary (SPS) measures against the Ceylon tea to Vietnam. In With the assistance head office and the Department of Trade and Investment Policy, the Mission has been representing Sri Lanka s interests in addressing the concerns raised by New Zealand at the WTO Committees on Agriculture and Market Access over Sri Lanka s decision to increase its import tariffs on milk powder products in Nov This tariff increase has pushed Sri Lanka s applied tariffs for milk view of the representations made by the Department through Diplomatic channels, the Vietnamese authorities extended a grace period for Sri Lanka enabling concerned authorities to take appropriate remedial actions to duly comply with the SPS Measure. Initiated a close dialogue with the WTO, the UNCTAD and the International Trade Centre (ITC) to explore the possibility of securing technical 36

50 DEPARTMENT OF COMMERCE assistance for trade-related capacity building in Sri Lanka. The priority areas focused for capacity building include SPS infrastructure, export quality assurance system and e-marketing etc. Global System Of Trade Preferences (GSTP) The Agreement on the GSTP among developing countries was established in Global System of Trade Preferences is a tariff preferential scheme negotiated under the aegis of the United Nations Conference on Trade and Development (UNCTAD) with a view to increasing South South Trade and Economic Cooperation. Sri Lanka has exported US$ 19,173, worth of goods to Mexico and Peru during the year 2013 under this scheme. Generalized System Of Preference (GSP) (a) EU GSP Scheme EU parliament has approved the New GSP Scheme on 13 th June 2012 and will come into effect from 1 st January Sri Lanka will continue to be a beneficiary of the Scheme. (b) Norway GSP+ Scheme The Government of Norway has introduced a new GSP plus (GSP+) category for lower middle income countries with effect from 1 st January 2013 and Sri Lanka is among the seventeen countries that are entitled to benefit under this facility. Sri Lanka has been benefiting under Norwegian GSP facility since 1972 and has complied with the criteria to enjoy the new GSP + status from this year. The new GSP+ facility has been introduced to upgrade the present status of lower middle income countries with expansion and diversification of the export market. Under new GSP+ scheme, Sri Lanka could enjoy the duty free access for all industrial products exporting to Norway from Sri Lanka. The new GSP+ facility will enable Sri Lanka to export products at zero duty to Norway, creating a new duty free market access to Norway. The new GSP+ status has opened 100% duty free access for all textile items under HS chapter 61, 62 and 63. (c) US GSP Scheme The duty free access for the eligible products entering under the US GSP Programme expired on 31 st July 2013 as the US Congress has not extended the Scheme. The US GSP programme has expired 12 times in the past, since its inception on However the US importers would be able to claim GSP benefit on retroactive basis once the US Congress approves the GSP. Bilateral Affairs Division Indo-Sri Lanka Free Trade Agreement (ISFTA) (a) Special Economic Partnership At the Joint Commission held in January 2013, it was agreed to resume talks between the Commerce Secretary of India and the Secretary of the Ministry of Finance & Planning and Ministry of Economic Development of Sri Lanka at an early date to explore avenues for a Special Economic Partnership between the two countries. As a result, the official talks between Secretary of Finance & Planning of Sri Lanka and Secretary of Commerce of India were held from 24 to 25 June 2013 in Colombo. The Outstanding matters under ISFTA were also discussed and the both sides emphasized the importance of deepening trade between the two countries. The meeting acknowledged the considerable benefits that have accrued to both countries under the ISFTA. Both sides agreed to address the followings in order to further boost the magnitude of the bilateral trade. i. Review the respective negative lists with a view to eventual phasing out, bearing in mind the domestic sensitivities 37

51 DEPARTMENT OF COMMERCE ii. Removal of non-tariff barriers iii. Establishing a mechanism for resolving trade disputes iv. Expansion of bilateral trade to US$ 10billion over a period of 3 years while focusing on reducing the trade deficit Sri Lanka noted the importance of addressing the growing trade deficit with India and requested market access for value added products such as apparel, high end tea, value added rubber products, floriculture and spices. India removed the condition of sourcing of fabric on remaining 5 million pieces of garment out of the total 8 million pieces of garment quota making the total quota duty free with no conditions. Earlier the sourcing condition was applicable for 5 million pieces of garments. The Indian side, at the meeting, also informed that they have removed restrictions imposed on import of processed meat and fruits from Sri Lanka. During the discussion on tourism, it was highlighted that Sri Lanka has launched an ambitious programme to revitalize the tourism with the dawn of peace in Noting the importance of connectivity and the free movement of people, goods and services in the South Asian region, and the fact that current levels of connectivity between India and Sri Lanka are amongst the best in the region, the meeting agreed to revise the current MoU on cooperation in the field of Tourism to better reflect the current status and future interests. In order to bring in more investments in the form of joint ventures, Sri Lanka has highlighted the several areas in which Sri Lanka heavily relies on imports using the model adopted in the case of the sugar refinery where import substitution will occur and excess production would be exported. (b) Joint Task Force (JTF) Sri Lanka and India setup the India-Sri Lanka Join Task Force to explore avenues for further promotion of bilateral trade and investments. The first meeting of the JTF, which was held on 24 June 2013, discussed inter alia, the current status of the ISFTA, measures required to enhance bilateral trade, review of negative lists, addressing NTBs, further promotion of investment and tourism. The Infrastructure Leasing and Financial Services Ltd (ILFS) of India made a presentation at the meeting on the potential services offered especially in the automobile, pharmaceuticals, skills training, textiles, engineering, and infrastructure and tourism industries. The JTF agreed that the Departments of Commerce of the two countries would be the focal points to coordinate, address and resolve issues arising from NTBs. (c) Exports under ISFTA Sri Lanka has been able to diversify its exports in an impressive manner under the ISFTA. For instance, Sri Lanka s export basket to India now includes a wide range of new products such as insulated wires & cables, apparel, rubber tires, gloves, furniture, bicycles, ceramic products, bottles, bottle-coolers, sausages, strawberries and biscuits etc. Sri Lanka s exports under FTA to India during 2013, has recorded at a value of US$ 316 Million. Pakistan Sri Lanka Free Trade Agreement (PSFTA) The 5 th Technical Level Meeting on PSFTA was held on April 2013, in Islamabad and the Secretary of Industry and Commerce of Sri Lanka and the Secretary of Commerce of Pakistan co-chaired the meeting. During the deliberations, several outstanding matters under PSFTA were discussed and Sri Lanka was able to secure enhanced market access for five products 38

52 DEPARTMENT OF COMMERCE such as Mosquito repellent coils, bottle cooling machines, crude coconut oil, betel leaves and herbal cosmetic products. Moreover, in response to a request made by the Sri Lanka side, the Pakistani side agreed to consider granting duty concessions for ginger beer and ceramic products exported under PSFTA from Sri Lanka. Both sides also agreed to establish Joint Working Groups on Trade in Goods, Customs Corporation, Investment and Auto Sector to facilitate focused negotiations on the respective subjects. 11 th Session of Pakistan Sri Lanka Joint Economic Commission (JEC) was held in 27 th 28 th November 2013 at Colombo, Sri Lanka. Both parties have discussed the matters related to the FTA as well as the ways to expand the trade between two countries. During the meeting both sides agreed to establish joint working groups for the areas of Industrial Cooperation, Customs Electronic Database, BOI and Agriculture for the facilitation and operationalization of the agreements made in last session and for the recent developments of the JEC. Pakistan side also agreed to increase the current 35% of MOP for betel leave to 50 MOP for Sri Lankan exports under PSFTA. Sri Lanka s exports under FTA with Pakistan during January June 2013 reached US$ 31 Million which is equivalent to 72% of Sri Lanka s total exports to Pakistan. Agreement between Sri Lanka and Belarus on Trade and Economic Cooperation The Government of Belarus proposed to sign a Bilateral Trade and Economic Cooperation Agreement between Sri Lanka and Belarus, in order to further strengthen the trade and economic ties between the two countries. Accordingly, the said Agreement was signed during the state visit of H.E. the President to Belarus from 25 th - 28 th August Further, Mr. R.D.S. Kumararatne/Minister (Com) serving in Sri Lanka Embassy in Brussels and a member of the Presidential delegation made a presentation on Sri Lanka s Foreign Trade Policy at the Sri Lanka-Belarus Business Forum held at the Belarusian Chamber of Commerce in Belarus. REGIONAL AFFAIRS DIVISION SOUTH ASIAN FREE TRADE AREA (SAFTA) Under the Trade Liberalization Programme (TLP) of SAFTA, scheduled for completion in ten years by 2016, customs duties on products other than those in the Sensitive List will be progressively reduced/ eliminated. Sri Lanka has to bring down its customs duties to 0 5% in six equal installments by Least Developed Members i.e. Afghanistan, Bangladesh, Bhutan, Maldives and Nepal are to bring down to 0 5% in 8 equal installments by 2016 and India and Pakistan to 0 5% in 5 equal installments by Sri Lanka, though a Non-Least Developed Member State, given its size, asymmetries and vulnerability of the economy was able to secure a longer period for the gradual reduction of import duties. Sri Lanka has exported US$ 1.85 Million worth of goods to India, Maldives and Nepal under the SAFTA during Products exported are desiccated coconut, coconut powder, copra, coconut oil, pepper, ceramic products, and synthetic monofilament, recycle paper products, coir fibre, wooden furniture, coated calcium carbonate, knitted fabric and floor tiles. The reduction of negative list by 20% by each Member State is also finalized and implemented by all member states. Members Negative Lists before and after of 20% reduction is as follows; 39

53 DEPARTMENT OF COMMERCE Member Negative Lists Negative Lists The above meetings discussed the following issues. State before 20% reduction after 20% reduction Progress in the implementation of issuance of signed revised sensitive lists under SAFTA LDCs NLDCs LDCs NLDCs Afghanistan Bangladesh Bhutan India (Phase II) Modalities and timeframe to be adopted for further reduction in the sensitive lists under SAFTA (Phase III) Examination of Notifications on Non-Tariff Measures / Para-Tariff Measures received from Member States and matters relating to Non-Tariff Measures / Para-Tariff Measures Maldives Nepal Pakistan Sri Lanka Matters relating to Intra-SAARC trade flows under SAFTA and outside SAFTA Matters relating to Super Regional Cumulation under the EU GSP, Institutionalization of Verification Mechanism under SAPTA and SAFTA, Dispute Settlement Mechanism of SAFTA The following meetings were held during January to September and Trade Facilitation Programme Matters relating to the Administration and Implementation of the SAFTA Agreement 1. Second Meeting of the Working Group on Reduction of Sensitive Lists under SAFTA (Phase III), SAARC Secretariat, Kathmandu, 30 th July Special Meeting of the SAFTA Committee of Experts on Non-Tariff Measures and Para- Tariff Measures, SAARC Secretariat, Kathmandu, 31 st July 1 st August Eighth Meeting of the SAFTA Committee of Experts, Colombo, 21 st 22 nd August Seventh Meeting of the SAFTA Ministerial Council, Colombo, 23 rd August 2013 Eighth Meeting of the SAFTA Committee of Experts SAARC AGREEMENT ON TRADE IN SERVICES (SATIS) The leaders of the Member States, during the 16 th SAARC Summit in April 2010 in Bhutan, signed the SAARC Framework Agreement on Trade in Services (SATIS) and ratified the same. Member countries are in the process of finalizing the schedules of commitments under the SATIS. India and Bhutan have already submitted the Schedules of Commitments. The Schedule of Commitments of Sri Lanka has been finalized. and Seventh Meeting of the SAFTA Ministerial Council, organized by Department of Commerce were held in Colombo. 40

54 DEPARTMENT OF COMMERCE SAARC PREFERENTIAL TRADING ARRANGEMENT (SAPTA) SAPTA, precursor to SAFTA was signed on 11 April 1993 and entered into force on 7 December The Agreement reflected the desire of the Member States to promote and sustain mutual trade and economic cooperation within the SAARC region through exchange of concessions. The bilateral negotiations between Mongolia and all Participating States of APTA have successfully concluded. As a result, Mongolia officially became a member APTA in November During January June 2013, Sri Lanka has exported US$ 34.6 Million worth of goods under APTA, with a range of products consisting of coir fibre, apparel, rubber products, porcelain items, tea etc. SAPTA was envisaged primarily as the first step towards the transition to a South Asian Free Trade Area (SAFTA) leading subsequently towards a Customs Union. Hence SAPTA is scheduled to gradually replace by South Asian Free Trade Area (SAFTA) in the future. Thus the usage of tariff preference under the SAPTA has been on the decline. INDIAN OCEAN RIM ASSOCIATION FOR REGIONAL COOPERATION (IOR-ARC The 13th Council of Ministers Meeting of IORA was held from 30th October to 1st November 2013 in Perth, Australia. Sri Lanka expressed its interest and views to participate into a PTA among IORA member states in this meeting. During 2013, Sri Lanka has exported US$ 2.2 Million Hon. Rishard Bathiudeen, Minister, Ministry of worth of goods to India and Pakistan under SAPTA. The products exported under SAPTA are Resin Rubber Sheets, Vulcanized Rubber, Rubber Bands, Coconut Oil, Black Tea and Waste Paper. ASIA PACIFIC TRADE AGREEMENT (APTA) The 41 st and 42 nd Sessions of the Standing Committee of APTA were held in June 2013 and November 2013, Industry and Commerce participated in the first IOR- ARC Ministerial-level Economic and Business Conference (EBC) accompanied by officials from the Department of Commerce and representatives of five Sri Lankan companies, held on 4 th 5 th July 2013 in Mauritius. TRADE PROMOTION DIVISION respectively. Member States have decided to INTERNATIONAL TRADE 2013 AT A GLANCE conclude the 4 th Round of Negotiations under APTA during the 4 th Session of APTA Ministerial Council to be held in March 2014 in Bangkok, Thailand. 04 th Round Negotiations were included discussions to increase of tariff concession, relaxation of Rules of The export earnings in 2013 have increased to US$ 10,009 Mn from US $ 9,180 Mn in the corresponding year 2012 indicating a positive growth of US$ 829 Mn or 8.28%. Origin and the roadmap for implementation of the Framework Agreement on Trade Facilitation, Investment and Services. 41

55 DEPARTMENT OF COMMERCE DIRECTION OF EXTERNAL TRADE 2013 UK GERMANY USA ITALY OMAN CHINA UAE INDIA SINGAPORE Exports % USA UK India 5.43 Italy 5.10 Germany 4.67 ISSUANCE OF CERTIFICATES OF ORIGIN (a) The DoC is the authority responsible for issuing Certificates of Origins (COO) under reciprocal and Non-reciprocal Preferential Trading Arrangements. Indo-Sri Lanka FTA, Pakistan-Sri Lanka FTA, Asia Pacific Trade Agreement (APTA), South Asia FTA (SAFTA), South Asia Preferential Trading Arrangements and Global System of Trade Preferences (GSTP) are reciprocal Preferential Trading Arrangements whereas Generalised System of Preferences (GSP) is a Non-reciprocal Preferential Trading Arrangement. The current GSP preference giving countries include the EU, the USA, Japan, Turkey, Australia, New Zealand, Switzerland, Canada, Norway and Russia. The issuance of COOs is a highly specialized function requiring an in-depth knowledge on the respective Rules of Origin Criteria under different trade agreements/arrangements. Imports % India China Singapore 7.37 UAE 7.08 Oman 4.48 The responsibilities of the DoC in this regard; (a) assessment of eligibility of a product for tariff concessions (b) registration and maintenance of exporters profiles, (c) evaluation of cost statements and other supporting documents submitted by the exporters to access the eligibility, (d) conducting post-coo issuance audits at the request of preference giving countries and (e) compilation of COO related data and analytical reports. (b) Assessment of eligibility of a product for tariff concessions may even require factory visits for physical examination of the production processes. During the period under review, the Department assessed on average 20 Cost Statements a day and undertook 10 factory visits. (c) As of 31 st December 2013, the DoC has registered as many as 4,186 exporters for issuance COOs. 42

56 DEPARTMENT OF COMMERCE According to Sri Lanka Customs, Sri Lanka has exported about US $ 1,627 million worth of merchandise during January June 2013 under the COOs issued by the DoC which accounts for 37% of Sri Lanka s total exports to the world during the respective period. (The data for the last quarter is been analyzing) The table below depicts COOs issued under respective Preferential Trading Arrangements by the Department of Commerce in CONDUCTING AWARENESS PROGRAMMES (a) Seminar on the US Food and Drug Administration's new food safety modernization Act and FDA's inspectional process - 24 th August 2013 The Department of Commerce in association with the Embassy of Sri Lanka in Washington, organized a seminar, with 55 participants, for existing and Agreement Number of Certificates of Origin potential food and related exporters of Sri Lanka with a private sector expert from FDA and food industry of USA. The objective of the seminar was to create EU GSP 79,454 GSP Other Countries 13,410 awareness of the Food Modernization Act of USA and the FDA s Inspection Process to be conducted in Sri Lanka during the latter part of the year. GSP CIS Countries 929 ISFTA 11,088 PSFTA 8,190 APTA 3,482 SAFTA 74 (b) Awareness Programme on Norway GSP Scheme 8 th August 2013 The Department of Commerce, with the logistical support of the Ceylon Chamber of Commerce organized an awareness programme on potential to expand exports to Norway under the new Norway GSP+ Scheme with 50 participants in attendance. SAPTA 243 GSTP 147 Total 117,017 (d) On average, about 470 COOs are issued by the Department a day. (e) 45 verifications were carried out at the request of the preference giving countries in 2013 to further ascertain the eligibility of products exported. RECOMMENDATION FOR ISSUANCE AND RENEWAL OF RESIDENT VISAS (RV) TO EXPATRIATE ENTREPRENEURS, WHO ARE BASED IN SRI LANKA In 2013, the Department has issued 204 visa recommendations. THE FIRST SRI LANKA CZECH ECONOMIC FORUM 2013 The First Sri Lanka Czech Economic Forum was organized in Prague, Czech Republic. Hon. Basil Rajapakse, Minister of Economic Development of Sri Lanka led the Sri Lanka delegation accompanied by government officials and senior representatives of 40 Sri Lankan companies. Approximately 160 Czech 43

57 DEPARTMENT OF COMMERCE companies participated at the business match making event. The Department of Commerce handled all ground work in addition to organizing and coordination of the business delegation. VISIT OF HON. RISHAD BATHIUDEEN, MINISTER OF INDUSTRY AND COMMERCE TO IRAQ, 19 TH 23 RD FEBRUARY 2013 The Department of Commerce organized and coordinated the visit of Hon. Minister of Industry and Commerce to Iraq. The two sides discussed new avenues to expand the bilateral trade between Sri Lanka and Iraq including quality control aspects of teas exported by Sri Lanka. SRI LANKA S PARTICIPATION AT 82 ND IZMIR INTERNATIONAL TRADE FAIR, 29 TH AUGUST 02 ND SEPTEMBER 2013, IZMIR, TURKEY The Department of Commerce rendered its assistance to organize Sri Lanka s participation at the 82 nd Izmir International Trade Fair in Izmir, Turkey. Hon. Rishad Bathiudeen, Minister of Industry and Commerce lead the delegation to the Izmir fair. SRI LANKA PARTICIPATION AT THE FIRST CHINA SOUTH ASIA EXPO IN KUNMING, CHINA- 06 TH TO 10 TH JUNE Prime Minister of Sri Lanka, Hon. D.M. Jayartahne led a 120 exporter delegation from Sri Lanka to the First China South Asia Expo which was held in Kunming from 06 th to 10 th June Prime Minister delivered a key note speech at the Opening Ceremony of the Expo. Ambassador of Sri Lanka to China, Secretary to the Hon. Prime Minister, Secretary of the Ministry of Industry and Commerce, Director General of Commerce, were also among the dignitaries attending the event. Commercial Section of the Embassy in Beijing in collaboration with the EDB organized the Sri Lanka Pavilion at the Expo. The Sri Lanka pavilion consisted of 120 Sri Lankan Companies from product sectors such as gems and jewellery, tea, Batik, handicraft, ceramic, coir products, ayurvedic products and giftware. This was the largest ever participation by Sri Lanka at an exhibition held in China and was highly successful in terms of securing new contacts and on the spot sales. Hon. Prime Minister of Sri Lanka and the Official delegation had an official meeting with the Vice Premier of China, Ma Kai and the Governor of the Yunnan Province Li Jiheng. Secretary of the Ministry of Industry and Commerce delivered a speech at the China - South Asia Business Forum. Also he had a meeting with the Officials of the Yunnan Sub Council of the CCPIT. Director General of Commerce participated in the China South Asia Senior Economic and Commercial Officials Meeting. REFLECTION OF SRI LANKA INTERNATIONAL EXHIBITION ON TRADE, TOURISM AND INVESTMENT ON 13TH 17TH NOVEMBER 2013 The Commercial Section of the Embassies made arrangements to give the maximum publicity for Reflection of Sri Lanka exhibition in their respective countries which they have stationed. Participated businessmen expressed their enthusiasm of the organizing activities of the exhibition and expressed their interest to do business in potential trade sectors of Sri Lanka. OVERSEAS COMMERCIAL REPRESENTATION The Department has taken steps to introduce Sri Lankan companies to the international market through the Sri Lanka missions overseas under the Public - Private Partnership Programme 44

58 DEPARTMENT OF COMMERCE which falls in line with the concept of Mahinda Chinthanaya Idiri Dakma, the Vision for Future. The Department of Commerce, with the assistance of the Trade Officers based in Sri Lankan Missions abroad and other Business Supporting Organizations in Sri Lanka, carried out an array of activities to further expand and diversify international market for Sri Lankan exports. While providing the main focus for the leading exporters to expand their market share in the international market through introduction of new export destinations and creating more conducive environment in existing markets, Trade Officers continued to assist the Small and Medium scale exporters to gain international - Organizing individual business visits from and to Sri Lanka to explore business opportunities. - Networking with trade, investment and tourism related government officials in the host countries and representing Sri Lanka at different governmental and international organizations on issues / matters relating to Sri Lanka s commercial and economic interests. - Serving trade, investment and tourism related inquiries, visiting/meeting with foreign businesses, providing technical assistance to Sri Lankan exporters, resolving trade disputes etc. market access for their products, especially through the Private - Public Partnership Program. Activity Number of exhibitions/ delegations Number of participants / delegates Key functions performed by the Trade Officers aboard included the followings. - Compilation of market surveys/intelligence for identification of export opportunities for Sri Lankan products - Monitoring & reporting of host-country trade policy changes, especially tariff and non-tariff measures. - Organizing Sri Lanka s participation in important international trade exhibitions/events. This task is considered Organized/assisted Sri Lanka s participation in exhibitions / events held in foreign countries Arranged foreign participation in exhibitions / events held in Sri Lanka Arranged foreign business visitors to EXPO 2012 in Sri Lanka Staged Sri Lanka specific (singlecountry) promotional campaigns in host countries Organized foreign business delegations to Sri Lanka , ,160-1,702 one of the most effective tools in promoting Sri Lankan exports. Organized Sri Lanka business delegations to host countries 215 1,899 - Arranging foreign business delegations to visit exhibitions/events held in Sri Lanka. - Staging Sri Lanka-specific (single-country) Individual Sri Lankan business visits to host countries promotional campaigns in host countries. - Organizing trade, investment and tourism Individual foreign business visits to Sri Lanka delegations to visit Sri Lanka and vise versa to explore business opportunities. 45

59 MACRO POLICY DIVISION contract exceeding Rs.5 million. 4,455 Public Contracts applications have been registered from 1 st January to 31 st December Department of the Registrar of Companies Units and their functions All documents and material sent by companies for registration or other purposes are first scrutinised by the officials manning this department before they are submitted. This procedure has Introduction The department of the Registrar of Companies has been in existence since it was first established as a separate entity entrusted with the task of registration and providing an island wide service in the implementation of the Ordinances and Acts relating to companies enacted since The department is headed by the Registrar General of Companies in whom the supervisory and regulatory powers of the Companies Act and other legislations assigned to the department have been vested. Societies Ordinance Chapter 123 The registration and regulation of societies registered under the ordinance in the country. The number of societies registered as at December 2013 was 12,120. Cheetu Ordinance No. 61 of 1935 The Cheetu Ordinance provides for the registration and regulation of cheetus. 31 st contributed to minimise unnecessary correspondence, delays and inconvenience that could otherwise result from incorrectly filed documents and has helped speed up the registration process and particularly the issue of certified copies of documents. Approval of Names and Incorporation of new Companies This is a process for which priority has been given always. Two very senior officers who report directly to the Registrar General of Companies, are responsible respectively for carrying out a search of the index of names and scrutinising the documents for incorporation of new companies. The name of a company is normally approved the day after the application is presented and in the case of incorporation the certificate is issued on the day after the documents are received. The total number of new companies registered under the Companies Act No.7 of 2007 up to 31 st December 2013 is 39,125. Public Contracts Act No.3 of 1987 The object of this Act which was introduced in 1987 is to provide for the registration of persons who act as agents, sub agents, representatives or nominees of any tenderer in respect of a public 46

60 MACRO POLICY DIVISION Incorporated companies from 03rd May 2007 under the Companies Act No. 07 of Jan Feb mar Apr May Jun Jul Aug Sep Oct Nov Dec Registration Units Four units, each under an Assistant Registrar of Companies, manned by 15 Development Officer and 25 Public Management Service Officers, have been assigned the duties connected with the registration of documents and issue of certified copies of documents. This constitutes the bulk of the work of the department. Liquidation Unit The Liquidation of Companies is an important subject assigned to one of the four Assistant Registrars. The number of companies under liquidation at present is 642 from 01 st of January 2013 to 31 st of December 2014 while there are 471 companies which are not carrying on business that are in the process of being struck off the register. 47

61 MACRO POLICY DIVISION Dissolution and Cancellation of Companies from 1 st January 2013 to 31 st December Members voluntary liquidation Creditors voluntary liquidation Court winding up Striking off under section 394 of the Act Striking off under amalgamation (section 245) Total Re-registration Unit This unit now has been disbanded as the reregistration process is almost completed. Prosecution Unit A cadre of four Inspectors on the permanent staff handle the prosecution work of the department. Priorities Automation of the department E.W. INFORMATION SYSTEM (PVT) LTD was selected as the software developer by the Procurement Committee. They institute prosecutions against defaulting companies and directors as well as carry out inspections and assist in inquiries. Steps to fill three vacancies caused by retirement and resignation are being taken. The number of new prosecutions instituted in 2013 is 35. In addition 1267 offences were compounded without prosecution. Total value of compounding charges is Rs.10,692,927/=. Accounts and Establishments Units Two separate units under an Accountant and the Administrative Officer respectively are entrusted with the accounting and administrative functions of the department. The total income for the year as at 31 st December 2013 was Rs million and the total expenditure Rs.45.3 million. 48

62 NATIONAL INTELLECTUAL PROPERTY OFFICE OF SRI LANKA The statistics of patent requests in 2013 National Intellectual Property Office of Sri Lanka Introduction The National Intellectual Property Office of Sri Lanka established under the Intellectual Property Act No 36 of 2003 is mandated with the administration of the intellectual property system in Sri Lanka and promotion of public awareness on intellectual property. It was first established in the year 1980 with the same mandate under the provisions of the Code of Intellectual Property Act No. 52 of Patents for inventions The Office examines patent applications (domestic and foreign) and grants patent protection for qualified inventions. Once a patent is granted, the Office administers various post-registration activities including renewals, assignments and license contracts. It is also responsible for collecting and disseminating patent and technological information (national and international) for the use of scientific and trade communities, Research and Development Institutions, Industrialists and others concerned. The statistics relating to receipt of applications and activities completed during the relevant period of time are given below. Applications Received Activities Completed Activities Registrations Public Searches Amendments - 17 Examinations & Test Reports Gazette Notifications - 52 Processing of related 550 1,002 Documents Validation & - 2,048 Miscellaneous Assignments Change of Names & Addresses Renewals Copies of the Documents Trade marks The Office examines the trademarks, service marks, collective marks and certification marks of which the registrations are sought as to form, substance and legality and grants the registration for those qualified and attends to the post registration activities including renewals, assignments and license contracts. It also collects and disseminates information relating to marks. The statistics relating to receipt of applications and activities completed during the specified period of time are given below. 49

63 NATIONAL INTELLECTUAL PROPERTY OFFICE OF SRI LANKA The statistics of Trade Mark requests in Activities Completed work Vienna Classification 4,810 Examination and Search Reports 20,289 Preparations for Publishing of 2,656 Marks Compilation of Gazette 2,380 Notifications Publishing of Gazette 2,169 Notifications Forward for Registration 1,459 Issuing of Certificates 1,487 Renewal Certificates 1,458 Ex-parte Hearings 522 Opposition Hearings 23 Orders for Removals 4,159 Publish of Marks 38,800 Assignments, Change of Names 3,675 and Addresses, License Contracts Applications received and other documents 2013 Assignments, Change of Names and Addresses, License Contracts Industrial designs The Office examines the applications for registration of industrial designs and grants registration to those qualified and attends to the post-registration activities including renewals, assignments and license contracts. The Office collects and disseminates the information relating to industrial designs as well. The statistics relating to receipt of applications and activities completed during the specified period of time are given below. Industrial Designs in Applications Activities Activities Received Completed Registrations Applications/ Number of Acknowledgements Type of Documents Completed Document Received Applications Formality Search Test Reports (with novelty) Applications for 8,825 20,289 Registration 02. Publication Fees 3,257 2, Registration 2,052 1,487 Fees 04. Applications for Renewal of Registration 1,993 1,458 Test Reports (novelty rejected) Calling for Registration Fees Gazette Notifications Work on related Documents Validation & Miscellaneous - 1, Assignments, Change of Addresses 757 3,657 Assignments Renewals Copies of Documents

64 NATIONAL INTELLECTUAL PROPERTY OFFICE OF SRI LANKA Copyright and related rights The Office promotes the protection of copyright and related rights. It attends to the settlement of disputes referred it by the owners of the protected rights and four (04) suchrequests are being attended by the office. Infrastructure development The major area on focus is computerization of the intellectual property administration. The system is now in full operation with regard to trademarks, patents and industrial designs. The introduction of an automated support to the Shroff counter and to introduce e mail facilities to all the staff members in order to carry out duties efficiently is under the review. Strengthening awareness and capacity building The promotion of public awareness on the subject of intellectual property receives constant attention for the benefit of both the users and the owners of Intellectual Property. The Intellectual Property Office organized or actively contributed to the organization of 07 activities such as seminars for various target groups in both public sector and private sector. The beneficiaries include Ministry of Industry and Commerce, Department of Commerce, Department of Export Agriculture, Sri Lanka Judges Institute, Ministry of External Affairs, Department of Immigration and Emigration, United Nations Development Programme, Department of Legal Draftsman, Attorney General s Department, National Gem and Jewellery Authority, Ceylon Chamber of Commerce, Ministry of Agriculture, Ministry of Minor Export Crop Promotion, The Spice Council, Sri Lanka Tea Board, Sri Lanka Cashew Corporation, Export Development Board, Chamber of Small and Medium Industry and various other private sector organizations. On the job training for the staff is always encouraged. In addition, opportunities were provided to 15 officers of this Department and other 10 officers outside the Department to participate in training/ conferences and meetings in foreign countries. Drafting of new legislation The working document on the draft law for the Protection of New Plant Varieties (Breeders Rights) had been prepared by National Intellectual Property Office and the Cabinet Sub Committee appointed in this regard has instructed to draft legislation to delegate sole authority of this subject to Ministry of Agriculture. Accordingly, Department of Legal Draftsmen is making necessary revisions to the draft legislation. The Committee has taken a decision to investigate into whether post registration at the National Intellectual Property Office with regard to the intellectual property rights of relevant owners and to determine on legal provisions at a later stage. Further actions will be taken to draft legislations with regard to voluntary deposit to safeguard copy right, registration of Geographical Indications and safeguard Traditional Knowledge. International relations The officers of this Department attended to the programmes organized by the World Intellectual Property Organization and the Intellectual Property Offices of other countries such as Japan Patent Office, International Intellectual Property Training Institute of Korea, the Government of Sweden in view of improving the knowledge related to intellectual property. The Programmes are being implemented in Sri Lanka to promote and facilitate the knowledge on intellectual property with the assistance of World Intellectual Property Organization. Information and advisory services This Office collects, stores and disseminates information relating to all the areas of intellectual property for the use of those concerned such as Enterprises, Industries, R & D Institutions and 51

65 NATIONAL INTELLECTUAL PROPERTY OFFICE OF SRI LANKA Inventors with the contribution from those institutions also. The expertise and advisory services to inventors, industrialists, authors of literary and artistic works and R & D Institutions are provided on request. A dedicated website is in operation ( Under the theme Information on Fund established under the Intellectual Property Act. The revenue collected from the rendered services is as follows Rs. 78,384, Rs. 78,176, this web site, general public are made aware about the programmes and conferences conducted by the NIPO. Applications from those who wish to participate at those events are also invited by . The information desk is in operation for quick dissemination of information and advice.8703 public searches were conducted within the year. Advisory services have been provided to 9893 persons. Co-operation to public and private sector agencies The co-operation has been extended to several Governmental and Non-Governmental Organizations on the matters of Intellectual Property including Ministry of Industry & Commerce, Department of Commerce, Department of Export Agriculture, Sri Lanka Judges Institute, Ministry of External Affairs, Department of Immigration and Emigration, United Nations Development Programme, Department of Legal Draftsman, Attorney General s Department, National Gem and Jewellery Authority, Ceylon Chamber of Commerce, Ministry of Agriculture, Ministry of Minor Export Crop Promotion, The Spice Council, Sri Lanka Tea Board, Sri Lanka Cashew Corporation, Export Development Board, Chamber of Small and Medium Industry and various other private sector organizations. Intellectual property agents 24 registrations of agents have been renewed and 18 new agents have been registered. Financial activities This is an income-generating Department, which collects fees and maintains the Intellectual Property 52

66 EXPORT DEVELOPMENT BOARD Within the industrial sector, textiles & garments which contributed 42.3% to the total export earnings of the Export Development Board country during the period under review increased by 13.31%.Increased earnings from leather products (13.98%), Rubber products (3.59%), Non metallic Electrical, Electronic & Machinery products (5.21%), Boat building (44.9%), plastic products (5.7%), and footwear (139.13%) contributed to the positive Progress as at 31 st of December 2013 Export Performance According to statistical data, export earnings of Sri Lanka increased by 6.27 % to US$ 10.38bn. in Jan - Dec 2013 from US$ 9.77bn. registered during the corresponding period in Export earnings during the month of December 2013 increased by a substantial 25.16% when compared with earnings in December Considering the performance during Jan - Dec 2013, it is noted that all the three major sectors i.e. Agriculture, Fisheries and Industrial which contributed 24%, 2.3% and 73% to the total export earnings have recorded positive growths of 10.3%, 4.61% and 19.14% respectively during the period under review. The positive performance of the Agriculture sector was driven by increased earnings from export of Tea (9.22%), Spices (39.87%), Vegetables (30.81%), Fruits (118.35%), Cut flowers & Foliage (36.12%) and essential oil (33.47%) while earnings from natural rubber (-42.75%) and coconut products (-0.1%) have diminished. All the sub sectors within the fisheries sector contributed to the positive performance of the sector viz. ornamental fish (41.35%), crustaceans (51.04%) and other edible fish (12.6%). performance of the industrial product sector. However earnings from export of Gems, Jewellery & Diamonds (-21.72%), Food beverages and tobacco (- 22.7%), wooden products (-1.48%), paper & paper products (-19.33%), Chemical products (-3.93%), Transport equipment & parts (-49.41%) and petroleum products (-7.98%) diminished during the period under review. Exports to EU and USA increased by 4.13% and 17.85% respectively during the period Jan Dec Progress of Major Development Programmes Establishment of Advisory Committees The EDB established 26 Advisory Committees under EDB Act No. 40 of 1979 by publishing an extra ordinary gazette No. 1814/14 on 11 th June Hon. Rishad Bathiudeen, Minister of Industry & Commerce presented Letters of Appointment to advisory committee members covering key product sectors and other export related areas on 10 th July In addition, EDB announced that it has been entrusted with the task of holding an exhibition to coincide with CHOGM. The objective of this exhibition is to showcase the quality export products and services of around of our exporters on a single platform. The EDB solicited the support of Advisory Committee members to organize this exhibition. 53

67 EXPORT DEVELOPMENT BOARD Market Development Programmes With a reoriented marketing strategy, the EDB would focus its efforts on expanding exports to BRICS region. The EDB would also aim to exploit the potential in the African countries, and also CIS countries. Even the few countries within the EU that has not been addressed before, like Turkey will be considered. A special emphasis has been placed on product and market diversification and various policy measures are planned to be taken in order to improve the competitiveness of the sector and also undertake branding of products. Market Promotion Programmes The EDB implemented the following market promotion programmes during the period under review with the objective of ensuring successful penetration of Sri Lankan products and services in existing, new and emerging markets. The following market promotion programmes were carried out by the EDB during the period under review. Participation in the following trade fairs were organized during the period under review. EU Region : - European Seafood Exposition (ESE) - with 06 exporters - IPM Essen Fair with 04 exporters - BIO FACH with 03 exporters - Paper World with 07 companies - CEBIT 2013, The Netherlands - with 05 ICT/ BPO companies - London Book Fair with 07 book publishing companies - Nation Branding Int l Exhibition, Netherlands - with 04 exporters - Int l Food & Drink Event[IFE], UK, March with 05 exporters - Anuga 2013, Germany - with 15 exporters Americas Region : - SIAL Canada Trade Exhibition & Exposure for F&B manufacturers - with 07 exporters - IFT 2013, Chicago, USA - with 08 exporters - IFEAT 2013, San Francisco, USA - with 04 exporters - Sri Lanka Pavilion at the Sourcing at Magic - with 09exporters Int l Fashion Exhibition in Las Vegas, USA, Aug

68 EXPORT DEVELOPMENT BOARD Asian Region : - Aquarama International Fish Competition and Study Tour Programme - with 17 exporters - India Rubber EXPO with 06 exporters - Hong Kong House Ware Show with 06 exporters - Technical & Market Exposure programme in Dubai/ EU countries - with 07 companies - Technical Exposure Programme for Footwear & Leather Products in China - with10 export ready companies - China PLAS with 08 exporters - Participation of Trade Delegation at the China Beijing Int l Fair for Trade in Services [CIFTFS] - with 07 exporters - SOLO Sri Lanka Event in India - with 15 exporter companies - Foodex Japan with 04 exporters - 1 st China South Asia Exposition,SACTF, Kungming, China - with 114 exporters - IFEX Fair, Japan - with 12 exporters Middle East, CIS & Africa Region: - Gulf Food UAE with 15 exporters - SAITEX 2013, South Africa - with 6 exporters EDB carried out two market research studies with the penetrating into these markets. Brazil and South objective of diversifying our exports to minimize the dependency on few large export markets. Accordingly, following two reports on Brazil and Africa are member countries of the BRICS group which has been identified as a centre with high economic growth prospects. South Africa were prepared with the aim of 55

69 EXPORT DEVELOPMENT BOARD An analysis on the Brazilian Economy as a Lanka s participation at the 82 nd Izmir International Potential Destination for Sri Lanka An analysis on Exploring Opportunities in the South African Market for Sri Lanka s Exports Fair, held from 29 th August to 02 nd September 2013 in Turkey. Sri Lanka s participation showcased a wide array of high-quality export products. It is expected to follow Major Market Promotion Programmes Business Promotion Mission to Belarus At the request of the Sri Lanka Embassy in Russia and the Ministry of External Affairs, a trade delegation consisting of 16 Sri Lankan Exporters visited the Republic of Belarus to participate at a Business Forum and B2B meetings from 26 th 28 th August The Trade Mission accompanied H.E. The President of Sri Lanka to reinforce the government commitment towards strengthening the rate relationships between two countries. As a result of that outward mission, it is expected that a 10 member delegation from the Chamber of Commerce in Minsk would visit Sri Lanka in November this year. The Director General of the Minsk Tractor Corporation who visited Sri Lanka, is looking into the possibility of setting up a tractor assembly plant in Sri Lanka. The company will also display their tractor range at the Reflection of Sri Lanka exhibition. An MoU was signed between the EDB and Belarusian National Centre for Marketing and Price Study (NCMPS) to exchange market information for enhancing trade between the two countries. Sri Lanka Excels at 82 nd Izmir International Fair in Turkey Sri Lanka Export Development Board in association with the Sri Lanka Embassy in Turkey organized Sri up with the inquiries received and negotiate for export orders with the buyers from strategic markets around the world, who had networked with the Sri Lanka trade delegation. South Asian Trade Fair Export Development Board in collaboration with the Sri Lanka Embassy in China organized Sri Lanka s participation at South Asian Trade Fair in Kungmin, China for the first time with 130 trade stalls. The move was successful in achieving remarkable business results. The fair was jointly organized by the Ministry of Commerce and Government of Yunan Province with the objective of expand China s imports from South Asian countries. Under the Sri Lanka pavilion,113 private sector companies representing sectors such as gem & jewellery[77], tea[12], handicrafts[15], coir[3], rubber & plastics[2], herbal products[1],tourism[3] exhibited their products this year. Best performed sectors were gem & jewellery, tea, handicrafts, coir products. Sectors which exhibited at this fair recorded approximately US$ 1.3 Mn. worth of business orders. Also, the EDB organized meetings with the management of Chennong Group, the China s largest eco friendly fruits & vegetables producer for the Sri Lankan coir based eco friendly pots manufacturer. 56

70 EXPORT DEVELOPMENT BOARD Aquarama 2013 International Fish Competition 30 Awards for Sri Lankan Exporters Export Development Board organized Sri Lanka pavilion with 17 exporters at the Aquarama 2013, International fish exhibition in Singapore. Sri Lankan fish breeders won 30 awards at the World s largest ornamental fish competition, Aquarama For the first time Sri Lanka has received awards for possibility of establishing contacts in Tea, Herbal and Ceramic sector. Organized a 10 member delegation from Belarus in collaboration with the Belarus Embassy in New Delhi to visit Sri Lanka and business session was organized with 40 business companies. Organize a three member inward delegation from South Africa to coincide with Ayurveda Expo July gold fish, gurami and aquatic plants tanks. Two 2013 to established business contacts in winners are members of the Polonnaruwa Ornamental Ayurveda and Spa product. Five (05) business Fish Project which was implemented by the EDB under Agro Zones project. Order executed - US$ 60,000 and under negotiation US$ 10,000. Inward Buying Missions meetings and two (02) factories visits were organized. Organized 25 Inward delegations from Israel (26 to 31 st August 2013) to establish business Organize inward buying mission from UAE coincide with Profood Exhibition in August 2013 at BMICH. Six (06) buyers from reputed super markets, such as Choithram, Lula, Al Maya etc. visited profood exhibition. Factory visit were arranged. Organized buyer delegations from Russia, China and USA to visit FACETS International Gem and Jewellery show Organized visits for Importers from Poland, Jordan, South Africa and India to coincide with the Footwear and Leather Fair Organized a Delegation from the Netherlands to visit on 4 th September Organized a Business Forum and B2B meetings for the 15 member delegation. Organized a three member Delegation from Poland (8 to 10 th) February 2013 to look into the contacts. Organized factory visits for Hon. Consul of Bulgaria for Sri Lanka (importer) who visited Sri Lanka. Sectors covered are Ceramic and Porcelain, socks and tights, fashion garments, coir fibre products and spa products. 10 meetings were arranged. Organized a business forum and B2B meetings for a visiting delegation from the Netherlands. Organized a One to One business meeting programme for 04 Sri Lankan Rubber Products exporters in Las Vegas, USA, 5-10 May 2013 Organized Sri Lanka country promotion in India - Bangalore, Mumbai, Delhi as part of Sri Lanka Tourism Mega programme, 22 nd -24 th Feb in Bangalore and 17 th 19 th May in Mumbai Organized participation of 12 Sri Lankan export companies at the product display organized at 57

71 EXPORT DEVELOPMENT BOARD the Hotel Imperial to coincide with the H.E. President s visit to Japan. Organized a 16 member delegation to Czech Republic (Ministerial delegation) and extended Organized B2B meetings between 34 member Chinese delegation and 100 Sri Lankan companies in China from 24 th to 27 th September 2013 Organized Technology Upgradation Mission to China from 23 rd to 29 th September 2013 for 17 representatives and B2B meeting programme for 7 Sri Lankan garments exporters Organized a 08 member Trade Mission to Belgium, Austria & Slovak Republic (Ministerial Delegation) from 6 th to 12 th October 2013 to Poland 27 th -30 th March 2013 Programmes Implemented for Agricultural Products, Industrial Products & Export Services The EDB has implemented a series of programmes for the development of the agriculture & fisheries and industrial sectors during January - December The progress of some activities carried out by the EDB is briefly given below: Branding of Ceylon Cinnamon The EDB has established Pure Ceylon Cinnamon as a such as USA and EU, and the application to register global brand in the international market. The EDB has completed registration of trade mark in main markets Branding of Pure Ceylon Cinnamon and promoting it as a global brand in target markets is very important to highlight the main characteristics of the Ceylon Cinnamon and differentiate Ceylon Cinnamon from cheap substitutes such as Cassia to gain a competitive advantage. Accordingly Ceylon Cinnamon has been introduced to the international market as a branded product namely Pure Ceylon Cinnamon which reflects a combination of several intrinsic characteristics. EDB has also lodged the application for Pure Ceylon Cinnamon trademark registration in other competitive markets such as Mexico, Peru and Colombia as well. EDB has also planned to issue the distinctive lion logo associated with Pure Ceylon this in the World Intellectual Property Office (WIPO) has already been lodged. Cinnamon brand name for exportable Cinnamon products. The approval of the Cabinet of Ministers has been granted for Export Development Board to hold the ownership/custodianship of the name 'Ceylon Cinnamon' along with other associated names 'Ceylon Cinnamon' 'Sri Lanka Cinnamon' and 'Sri Lanka Kurudu' and to take appropriate/connected measures to protect and promote Ceylon Cinnamon. As a 1st step towards protection under Geographical Indication (GI), the Ceylon Cinnamon Certification Mark has been registered by EDB in consultation with the National Intellectual Property Organization (NIPO) in Sri Lanka. The EDB is in the process of obtaining geographical indication for Ceylon Cinnamon in other international 58

72 EXPORT DEVELOPMENT BOARD markets such EU. GI provides more protection for sector. In order to consolidate and expand the export Ceylon Cinnamon to safeguard against other cinnamon available in the international market as well as the cassia cinnamon. Seminar on Compulsory Pre-Inspection Scheme CPIS) for Cinnamon Sri Lanka Export Development Board, in September 2013, organized an awareness programme in collaboration with Sri Lanka Standards Institute and Department of Export Agriculture on Compulsory Pre-Inspection Scheme to be implemented for cinnamon exports, with the participation of 120 persons. Value Chain Improvement programme Coordination of work related to the Cinnamon Peelers Training Academy National Budget 2013 granted approval for the Sri Lanka Export Development Board to construct a building to establish Cinnamon Training Academy under the project Enhancing the Compliance, Productive Capacities and Competitiveness of the Cinnamon Value Chain in Sri Lanka, which is to be carried out in collaboration with the Spice Council and UNIDO. An agreement has been signed with the Cinnamon Training Academy (Pvt.) Ltd. (CTA) to commence the work on construction of the building. Assistance scheme to improve quarantine / withholding facilities of the ornamental fish exporters / indirect exporters EDB initiated to implement a financial assistance scheme approved by the National Budget 2013 to improve quarantine/withholding facilities of the market, it is important to adhere to the rules and regulations enforced specially on live creatures by the importing countries. With the establishment of this facilities and following the quarantine procedures, the exporters will be able to maintain good health of fish by conditioning them prior to export. The selected companies will be eligible to claim 50% of the cost incurred under the development of their farms on reimbursement basis, subject to a maximum sum of Rs. 1.5 Mn. It has been targeted to implement approximately 26 projects in The scheme was advertised, and in response 29 proposals received. Interviews were held to select beneficiaries and preliminary visits to 26 projects were carried out with committee appointed for evaluation. 14 projects were evaluated by the committee. Repositioning Sri Lanka s Gem & Jewellery by highlighting the unique position of Ceylon Sapphire The EDB together with Sri Lanka Gem & Jewellery Authority (SLGJA) launched a promotional campaign to promote Sri Lanka Gem & Jewellery industry by highlighting the unique position of Ceylon sapphire. The EDB has identified gem & jewellery as a trust sector and a target of US$ 1Bn. in export earnings is set for the sector to be achieved by As one of the promotional tools, e-news letters were published and circulated among the international industry, to raise awareness among consumers in existing and potential markets about Sri Lanka as a source of high quality Sapphires and reinforce the value of the gemstone in their minds. It is envisaged to increase 59

73 EXPORT DEVELOPMENT BOARD the demand for Ceylon Sapphires, which in turn will lead to an increase in the volume of gems exported from Sri Lanka. As one of the key components of the campaign, the EDB together with the SLGJA developed a web site for Ceylon Sapphires to disseminate information to the international media to coincide with the Royal EDB in collaboration with the Sri Lanka Gems & Jewellery Association and National Gems & Jewellery Authority organized the 23 rd International Gems & Jewellery Trade Exhibition [FACET 2013] from 29 th August -01 st September 2013 at the BMICH. EDB organized a Special Pavilion for 18 Small & Medium Entrepreneurs from island wide to give opportunity to promote their products. In addition, EDB organized trade delegation including 11 Chinese, 03 Russians & 02 Americans. Assistance scheme for Rubber products in obtaining quality certification and carryout quality tests which are not available in Sri Lanka. Sri Lanka has emerged as a world class rubber products manufacturer supplying to international brands such as SOLEDEAL, CONTINENTANAL, WONDER GRIP, MAPA, SAFETY WORK etc. To wedding in 2011 which featured Sri Lankan origin Blue Sapphire as a principle gem on the engagement ring. The web site was a key source of information on Ceylon Sapphire for the international clientele. The web site will be re designed and launch to promote the Sri Lanka Gem & Jewellery industry. International Gems & Jewellery Trade Exhibition [FACET 2013] productivity and quality of value added rubber based products to comply with the requirements of the international market. Footwear & Leather Fair EDB in collaboration with the Ministry of Industry & Commerce and the Sri Lanka Footwear and Leather Products Manufacturing Association organized the 5 th Footwear & Leather Fair exhibition from 08 th - 10 th February 2013 at the BMICH. Hon. Basil Rajapaksha, Minister of Economic Development was the Chief Guest at the opening ceremony. This exhibition was an ideal platform to identify creative and skilled local talents in the industry. The main objective of the exhibition was to build a strong image of Sri Lanka footwear & leather products internationally. Specially, Small & Medium exporters were given an opportunity to showcase their products safeguard the established reputation for quality and reliability, exporters have to comply with standards and also obtain certain certifications which are not available in Sri Lanka. Therefore, in order to assist exporters of rubber products, the EDB initiated to implement a scheme of assistance to obtain certification not currently available in Sri Lanka. This would lead to upgrade 60

74 EXPORT DEVELOPMENT BOARD The Fair consisted of over 214 trade stalls showcasing footwear, travel goods, raw materials, machinery and Collaborated with the Construction sector Association to establish an export oriented group other related services. Local manufacturers of of contractors of the construction sector. accessories and components too were given the opportunity to exhibit their products at this fair. The special features in the event were a fashion show and the best stall competition. The Designer Award Ceremony was also organized to identify and recognize upcoming talented Sri Lankan Designers. The Awards were presented to the recipients by H.E. The President. Electronic Sector The IPC Technology Meet was organized to increase awareness on Global Best Practices among electronic exporters and enhance the export capability of electronic export sector. Other Development Programs Export Services ICT/BPO sector Organized an Exposure visit to Orion City IT Park for 10 ICT companies in Central Province in collaboration with SLASSCOM and provincial office in Kandy to generate ICT/BPO exporters from the provinces. Arrangements have been made to undertake a survey to ascertain the value of exports generated by the ICT/BPO sector (Export Value Survey) during the year Eleven (11) Software companies were visited with the consultant of the CBI to select suitable companies for an Export Coaching Program. Arrangements have been finalized to select a suitable consultant to create a Brand Strategy for Sri Lanka ICT/BPO sector. Professional Services Initiated a survey on Health Tourism in Four (04) companies were selected for assistance through the scheme on Grading Area Capacity Development for registered Tea manufactures, producers/exporters. Thirty (30) factories were recommended for assistance under the scheme of assistance for systems/product certification for the Tea sector. Assisted 2 companies covering 18 factories for Rain Forest certification. One product certification and 11 factories ISO certification. Ten (10) farmers were assisted to cultivate 5 acres of land under the supply chain development program to cultivate pineapple in Matara district. 30, 000 pineapple suckers were provided for cultivation. A feasibility study on sea freighting of fresh fruits and vegetable from Sri Lanka to Maldives was carried out. Vessel were operators identified and negotiations are on going. Five (05) companies were selected for assistance collaboration with ITC Geneva. Facilitated under the Coconut shell Charcoal assistance meetings with Government Sector and Private Sector Stakeholders to develop the Health Tourism Sector. scheme. A Consultant from Netherlands visited Sri Lanka in July to assist Floriculture growers/ exporters Brochure on Sri Lankan Ayurveda was printed with a view to promote Health Services exports at the Ayurveda Expo under the technology/knowledge transfer program to increase the production/quality to 61

75 EXPORT DEVELOPMENT BOARD increase exports. 15 nurseries were visited and process of the applicants to select participants awareness program was conducted. for the entire program. Organized a 9 day programme on Production Under the Technology Upgrading program for Management and Quality Assurance for 19 the foundry industry, inspection visits will be participants (9 companies) with the services of a made in September to companies which have Garment Industry specialist from UK. installed machineries under the programme. Initiated to formulate a National standard for A report on Global Market Trends for Home apparel sector in collaboration with SLSI. Textile products was forwarded to the Ministry of Published a comprehensive article in the European Rubber Journal July/August 2013 issue to promote Sri Lanka s Rubber products Manufacturing Industry in the International Industry and Commerce. Conducted a seminar on Kosher Certification on food products to create awareness on certification required for export of food products. market. The editor of the Journal visited Sri Two seminars were held with 70 participants. Lanka in May to obtain first hand information. Work shop on Jewellery Designing was organized in March with the participation of 15 Eight (08) companies were assisted under the Financial Assistance scheme for Exporter s Own Marketing Efforts. SME Jewellery manufactures. Work shop on Conducted a Certificate course in Packaging Finishing Techniques and International Standards/Requirements was held in March with the participation of 23 SME jewellery manufactures. Facilitated publishing advertisements regarding FACETS in three(03) magazines (Hi, Serendib Inflight Magazine and Incolour) to promote FACETS in International Magazines. One day seminar on Export awareness for wooden product sector was organize for the potential wood based products exporters. 76 companies from the industry and 30 invitees participated. The first stage of the programmed on introducing Fair Trade as a marketing tool for the Craft sector in Sri Lanka (partly funded by USAID), commenced in September by an US expert in coordination with the World Fair Trade Organization Sri Lanka chapter. 50 work shop visits were undertaken to evaluate the production Technology for 17 participants. Regional Development Programmes With the objective of harnessing rural resources and skills for export development, a range of regional development programmes have been carried by the EDB during the period under review. Under the Assistance Scheme for Development of Brand Names and Brand Excellence, four companies were assisted and altogether 11 companies will be assisted in 2013/14. Two brand registrations in Italy and Middle East are in progress. Duty list for 146 graduate trainees were issued for the graduate trainees attach by the Ministry of Industry and Commerce. 222 graduate trainees were appointed for 25 districts including 43 development officers. Three orientation programme were conducted for the trainees. 21 beneficiaries were selected under the assistance scheme for spices and essential oils 62

76 EXPORT DEVELOPMENT BOARD sector for product/system certification in Southern Province. One GMP center in Rathnapura District and 14 in Galle District have been constructed. Completed awareness programme on GMP certification with the participation on 19 Trincomalee District. Technology transfer programme for 18 cinnamon peelers was held in Namal Oya in coordination with DEA. Two (02) entrepreneurs were selected for assistance to develop GMP centers under the assistance scheme for spices and essential oil beneficiaries in August in the Southern Province. sector for product/system certification, in Uva Nine (09) entrepreneurs were selected to assist under the scheme for commercial cultivation of cut flowers and foliage in Southern Province. Under the cut foliage and Orchid supply province. Two centers were completed. Seventeen (17) farmers were selected for assistance to cultivate Belpepper and Tomatoes in poly tunnels in Uva province. development program in the Central Province, 35 growers in Dehiowita and 40 growers in Matale developed. Linked the growers to an Exporter. Twenty five (25) farmers have been selected to provide planting material and technical assistance for cultivation of Turmeric. Technical Six (06) Orchid Farmers were selected to provide training was completed on 5 th April. Distribution financial assistance to grow Orchid under houses of planting materials to 14 farmers have in Central and Kegalle Districts. completed. Cultivation in progress. Completed, Cultivation of High value vegetables Programme on Establishment of clay Processing for export in poly tunnel. 26 farmers were Plant at the Koulara Cooperative Society of assisted to grow iceberg, cherry tomatoes, bell pepper, Japanese cucumber, Exporter were linked to farmers. Forty (40) farmers in the North Western Province were selected for assistance under the supply development programme for cultivation of high Industries (KCIS) in the Monaragala district to develop ceramic and clay products for the export market. The society was linked to an exporter and KCIS contracted IDB to installed the pug mill. Conducted and awareness programme on challenges and opportunities on marketing value vegetables. Farmers were linked to an Continuation of Weerawila Agro Export Zone Exporter. Horticulture project is being implemented in two Cultivation of Gerkin and Jalepeno pepper in phases. First phase successfully completed by Eastern province 22 farmers were selected for assistance to cultivate Gerkin and Jalepeno pepper under poly rain shelters for export. Tri party agreements signed with EDB, linked Export Company and farmers. 22 poly rain shelters were established in Padiyatalawa and Akkaraipattu. setting of a model farm in 18 acres. Board approval obtains to plan the 2 nd phase of the project. Product and market diversification initiative of Dambadeniya and Tissamaharama EPVs and Monitoring and follow up of EPVs Monitored all Awareness programme on Agro Export Products operation activities. Financial performance of for 40 farmers has been completed in Ampara District. An awareness programme on postharvest Technology for 35 farmers was held in TEPV during the period, number of Tea packets 133, 748 and value Rupees 5.55Mn. Obtained the certificate of registration from the Ministry of 63

77 EXPORT DEVELOPMENT BOARD Health to supply surgical, gauze as a product diversification. Two training programmes on cut foliage cultivation technology under natural shade at Bingiriya Agro Export Zone was conducted with the participation of 250 and 200 growers respectively. The performance of the BAEZ, The total indirect Exports of Anthurium Rs. 317, 019, Some companies registered in the portal have received 18 business inquiries within this period. Promotion of e-services: 2312 online buyer searches have been done for external customers and EDB staff members. Export statistics have been provided to 160 customers. Market prices for selected commodities have been provided to 25 customers. Sandriyana Rs. 564, 925, Total- Rs. 881, 944. Bingiriya Mal Wasanthaya was successfully completed from 30 th May to 2 nd June Other Programmes Provision of Trade Information & Advisory Services : The EDB channeled its resources towards the provision of multifaceted services to the export sector ranging from computerized database facilities, advisory services, publications Information Technology Service : IT Division, the e-commerce arm of the EDB provides a range of e-services to the business community. E-promotion of Sri Lankan products & services: Exporters were facilitated to access up to date export performance reports on line, implementing a dynamic bar chart & pie chart generation functionality. Market intelligence such as market profiles & briefs, market access guidelines, trend reports, buyer profiles and information on EDB Incentives available for exporters, events and promotional programmes organized by the EDB were also made available. A separate webpage on the theme Reflection of Sri Lanka - Exploring the Wonder of Asia, an exposition on Trade, Tourism & Investment was designed to promote the exhibition conducted at Janakala Kendraya Colombo from 13 th to 17 th November 2013 in parallel to CHOGM. Online Trading Portal (the e-market place): To date 84 exporters have joined the portal and 09 successful transactions amounting to US$ 2555 has been carried out to Italy, Russia, Japan, Australia, and Czech Republic & Philippines. to library services. Library facilities were also provided to nearly 564 entrepreneurs. In addition advisory services on all aspects of export related subjects were provided to more than 475 exporters / potential exporters through the EDB Head Office and its provincial network. Export Related Publications : During the period under review, 03 Business Lanka Magazines, 22 issues of Exponews and 11 issues of Apanayana Puwath were published and dispatched to subscribers. 11 issues of Policy Briefing News Bulletin were also circulated during the period under review. Export Performance Indicators : Export Performance Indicators is a publication which contains comprehensive data relating to the export sector. It was published in printed and CD forms and were distributed among the relevant institutions, Trade Chambers, Universities, etc. Resolving Problems of Entrepreneurs : The Exporters Forum was organized under the Chairmanship of Hon. Minister of Industry & Commerce to provide a common platform for 64

78 EXPORT DEVELOPMENT BOARD discussion of specific problems related to trade with the objective of resolving them. It is attended by exporters, investors and other entrepreneurs and officials of government and private institutions concerned. Packaging Development Programme : The Packaging Centre of EDB has conducted 03 awareness seminars on Export Packaging in Hambantota and two in Colombo with the objective of educating, especially the export oriented SMEs on quality, reliable and cost effective packaging for their products. Packing of fresh and value added agro products, packing handicrafts and textile items, new packaging techniques, packaging of food, packing materials, packaging as a value addition and marketing tool, package labeling etc. were among the main subject areas covered under the programme. The Certificate course in Packaging Technology was started for the executives engaged in packaging manufacturing and user industries. Established an Advisory Committee on export packaging aimed at developing the quality and market competitiveness of export products of Sri Lanka. Skills Development, Awareness & Training Programmes : During the period under review, the EDB conducted 20 skills development and Awareness programmes in Colombo, Galle, Ampara, Trincomalee, Namal Oya, Hambantota and Bingiriya with the participation of 1188 entrepreneurs engaged in export related activities. These programmes were aimed at creating awareness on agro export products, post harvest technology, Jewellery design, Certifications required, packaging technology, Five Certificate Courses on Import / Export Procedures and 01 programme on Operational Aspects of International Trade were conducted and nearly 216 entrepreneurs were trained through these programmes during the period. Reflection of Sri Lanka Exhibition on Trade, Tourism and Investment Parallel to Commonwealth Heads of Government Meeting (CHOGM) 13 th to 17 th November 2013 Reflection of Sri Lanka was held parallel to Commonwealth Heads of Government Meeting (CHOGM) from 13 th to 17 th November 2013 showcasing the true essence of Sri Lanka s Trade, Tourism and Investment potential. Three Hundred and three (303) local & foreign exhibitors coming under 32 product and services sectors and 200 SMEs took part at the exhibition. 91 foreign exhibitors of machinery & technology also participated at the exhibition. 1,428 international buyers representing 66 countries and 49 foreign journalists visited the exhibition. Participation of international delegations was a major success of the event with 08 delegations representing 120 members. Factory visits were also arranged for the international delegations/buyers at their request and 16 companies and factories were visited. One hundred and one (101) B2B meetings were successfully held between local suppliers and international buyers. Sri Lanka entrepreneurs had fruitful discussion with foreign buyers and investors enabling them to negotiate successful business deals leading to 35 joint ventures, 37 confirmed orders, 195 negotiations and 973 positive inquiries valued at US$ 1.0 bn. Series of seminars were conducted for visiting foreign delegates exporters and potential exporters, academics and other interested parties. and enhancing product specific technical skills. 65

79 GENARAL INFORMATION OF THE MINISTRY

80 Carder Information Designation Specialization Service Service level Grade/Cla ss Salary Code Approved permanent Existing permanent Secretary SLAS 1 SL Additional Seretary Admin & Finance SLAS 1 Additional Seretary Regional Industry Development SLAS 1 Additional Secretary Policy Development SLAS 1 Additional Secretary Commerce SLAS 1 Additional Secretary Textiles & Exports SLAS 1 Senior Assistant Secretary Special Grade Special Grade Special Grade Special Grade Special Grade SL SL SL SL SL Admin SLAS 1 Class I SL Chief Internal Auditor SLAcS 1 Class I SL Chief Accountant SLAcS 1 Class I SL Legal officer SLAS 1 Class II/III SL Director Field 1,2,3 Dept. 1 SL Director Regional Industry Development SLAS 1 Class I SL Director Planning SLPS 1 Class I SL Director Corporations SLAS 1 Class I SL Director Director Industrial Registration Industrial Policy & Development SLAS 1 Class I SL SLAS 1 Class I SL Director Textile & Exports SLAS 1 Class I SL Director Commerce SLAS 1 Class I SL Deputy Director/ Assistant Director Deputy Director/ Assistant Director Deputy Director/ Assistant Director Deputy Director/ Assistant Director Field 1,2,3 Dept 1 Regional Industry Development Head Office Class II-I/ II-II SL SLAS 1 Class II, III SL Divisional Office SLAS 1 Class II, III SL Textiles SLAS 1 Class II, III SL

81 Designation Specialization Service Deputy Director/ Assistant Director Deputy Director/ Assistant Director Deputy Director/ Assistant Director Deputy Director/ Assistant Director Deputy Director/ Assistant Director Planning Industrial Policy & Development Corporations Industrial Registration Commerce Service level SLPS 1 SLAS Dept. 1 SLAS 1 SLAS 1 SLPS SLAS 1 1 Grade/Cla Approved Existing Salary Code ss permanent permanent Class II, III SL Class II, III Dept. SL -1 SL -1 Class II, III SL Class II, III SL Class II, III Class II, III SL -1 SL Assistant Secretary Administration SLAS 1 Class III SL Accountant SLAcS 1 Class II/ III SL Administrative Officer PMAS 2 Supra MN Translator TS 2 MN Information & Communication Technology Officer ITS 2 Class I, II,III MN Personal Security Officer Dept 2 RS

82 Servi Specializ Salary Approved Existing Designation Service ce Grade/Class ation Code permanent permanent level Computer Programmer Dept. 3 MN Media Officer Asso.officers 3 MN Industrial Inspector Asso.officers 3 MN Development Officer Asso.officers 3 MN Industrial Development Assistant Asso.officers 3 MN Development Assistant Asso.officers 3 MN Budget Assistant Asso.officers 3 MN Accounts Assistant Asso.officers 3 MN Procurement Assistant Asso.officers 3 MN Management Assistant PMAS 3 I,II,III MN Information Technology Assistant ITS 3 III MT1 1 1 Data Entry Operator Dept. 3 MN Receptionist Dept. 3 MN Still Photographer Dept. 3 MT Video Grapier Dept. 3 MT Assistant Cameraman Dept PL Drivers DS I, II A, II B PL Office Employee Assistant OES I,II,III PL TOTAL

83 LOCAL & FOREIGN TRAININGS Local Trainings Course Name Institute No of Officers Certificate course in English for Employment purposes Intermediate Level Sri Lanka Institute of Development Administration 02 Diploma in Advance English Sri Lanka Foundation Training Seminar on ISO Certification for Sustainable Industrial Development University of Colombo Awareness Programme on Sri Lanka Public Sector Accounting Standards Workshop on Good Governance & Leadership Association of Public Finance Accountants of Sri Lanka Sri Lanka Foundation 06 Master of Arts (Economy) University of Kalaniya Effective Internal Auditing Skills Development Fund Limited Practical Aspects of BID Evaluation Skills Development Fund Limited Programme on Skill Development for Receptionist & Telephone Operator AAT Sri Lanka Conference 2013 National Institute of Labour Studies 01 Association of Accounting technicians of Sri Lank 01 69

84 LOCAL & FOREIGN TRAININGS Foreign Training Country Programme No of Officers 01 Korea Knowledge Sharing Programme - Interim Report Workshop Singapore Advanced Regional Workshop on Government Procurement for WTO Members and Observers in Asia and the pacific India Pan-Commonwealth Capacity Building Workshop for SACOs Engendering Access to Financial Services Korea SAARC Special Training Programme Trade Promotion China Seminar on Import & Export Commodity Quality Inspection for Developing Countries 06 India International Training in Human Resource Planning and Development 07 Seoul Korea Knowledge Sharing Programme-2013 Capacity Building Workshop 08 India Human Resources Development and Entrepreneurship Education Training Korea Training on Economic Development Strategy (Sri Lanka) China Seminar on Industrial Security India International Training Programme on Leadership 12 Japan Development Training Course on IP Management and the Formulation and Implementation of Results-Based IP Office Plans 13 Maldives WIPO Regional Workshop on Building Respect for Intellectual Property 01 70

85 LOCAL & FOREIGN TRAININGS 14 Qatar Training Course for Representatives of National Authorities of State Parties in Asia involved in fulfilling Article VI declaration requirements of the Chemical Weapons Convention Korea Sri Lankan Delegations SME Policy Development Exposure visit to South Korea Austria Global Executive Programme - The Future of Manufacturing India Official Visit Pakistan Commerce Secretary level meeting between Pakistan and Sri Lanka 19 Thailand First Training Session for the tars force of Chemical Accident Prevention and Preparedness programme for SL India Investment Trade and CEO forum China 1st China South Asia Exposition and 21st Kunming Import and Export Fair 22 Nepal SAARC Dissemination Workshop on Energy Conservation potential 23 China Second advanced assistant and Protection Course on Assistance and Protection 24 Australia Australian Leader ship [Awards (ALA) Fellowship Training Program for Leadership Development of Senior Public officers 25 China Establishment of Two Joint Working Groups On Trade and Economic Cooperation Between Sri Lanka & China China Mega Promotional Campaign Thailand Asia-Pacific Regional Workshop on the Development & Implementation of National Copy Rights and Strategies Pakistan Third International Assistance and Protection Course Switzerland Swiss Laboratory Curse V, Spiez Korea Workshop on Innovative Case Studies on Sustainable Development Netherlands Fifteenth Annual Meeting of National Authority 01 71

86 FINANCIAL PROGRESS

87 FINANCIAL PROGRESS Recurrent Expenditure up to 31 December 2013 Programme & Project Estimate Expenditure Rs. Rs. 01.Operational Activities 01. Minister's Office Personal Emoluments 10,000,000 9,796,837 Traveling Expenses 8,620,000 8,012,159 Supplies 8,950,000 8,891,216 Maintenance Expenditure 6,850,000 6,574,804 Contractual Services 6,420,000 5,796,704 Other Recurrent Expenses 5,000 0 Sub Total 40,845,000 39,071, Administration & Personal Emoluments 51,100,000 50,884,157 Establishment Services Traveling Expenses 3,700,000 3,680,301 Supplies 8,942,000 8,893,360 Maintenance Expenditure 9,432,000 9,389,814 Contractual Services 25,200,000 25,042,575 Transfers 7,456,000 7,051,333 Sub Total 105,830, ,941,540 Total Operational Activities 146,675, ,013, Development Activities 03.Industrial Personal Emoluments 126,790, ,810,823 Development Traveling Expenses 3,700,000 2,883,000 Supplies 4,600,000 4,464,268 Maintenance Expenditure 4,070,000 3,917,290 Contractual Services 7,630,000 7,085,220 Other Recurrent Expenses 1,430,000 1,420,934 Sub Total 148,220, ,581,535 Sri Lanka Institute of Textile 10,000,000 0 Apparel (SLITA) National Enterprise 26,000,000 21,879,000 Development Authority (NEDA) Sri Lanka Export Development 266,000, ,950,000 Board (EDB) Sub Total 302,000, ,829,000 Total Development Activities 450,220, ,410,535 Total Recurent 596,895, ,423,795 72

88 FINANCIAL PROGRESS Capital Expenditure 31st December 2013 Programme & Project 01.Operational Activities Estimate Rs. Expenditure Rs. 01. Minister's Office Rehabilitation & Improvement of 02.Administration & Capital Assets 6,260,000 5,608,999 Acquisition Of Fixed Assets 12,500,000 11,546,242 Sub Total 18,760,000 17,155,241 Rehabilitation &Improvement of Establihment Services Capital Assets 5,200,000 5,129, Development Activities 03.Industrial Development Acquisition Of Fixed Assets 6,770,000 6,267,542 Trust Area Development Programme 1,000,000 79,379 Other Sub Total 12,970,000 11,475,970 Total Operational Activities 31,730,000 28,631,211 Rehabilitation &Improvement of Capital Assets 5,075,000 4,332,906 Acquisition Of Fixed Assets 3,400,000 2,882,493 Capacity Building 1,000, ,688 Sub Total 9,475,000 7,385,087 Industrial Estates 300,000, ,223,982 Thurst Area Development Programme 225,000,000 58,745,195 *Foot Wear Training School 50,000,000 14,177,969 * Dedicated Leather Complex 90,000,000 2,821,876 * Analytical Pharmaceutical Industry 9,700,000 20,000,000 * Technology Incubator for Electrical & Electronic Industry 6,000,000 0 *Industrial Waste Management Waste Exchange Programme *Quality Development of Concrete & Cement Based Products 5,000, ,000,000 0 *Other Development Project 28,300,000 11,002,203 *Deyata Kirula 10,000,000 7,714,575 73

89 FINANCIAL PROGRESS * Establishment of coir Testing Laboratory * Transfer in to the Less Energy Consumer Technology in Industrial Manufacturing Sector in Sri Lanka for Future Decades ,000, ,000,000 1,028,571 * Indification of Kaolin/Ball Clay & Other Mineral Deposits for the Ceramics Industry Handloom & Textile Industries Investment Bamboo Processing in Sri Lanka (GOSL UNIDO) Environmentally Friendly Solutions Revolving Fund (GOSL/ JBIC) & Small & Micro Industries Leader & Entrepreneur Promotion Project (GOSL/JJBIC) 6,000,000 2,000,000 90,000,000 73,954,245 30,000, ,000, ,554,529 Sub Total - Industrial Development 1,045,000, ,477,951 Total - Development Programme 1,054,475, ,863,038 Total Operational Activities & Development Activities 1,086,205, ,494,249 SLITA = Sri Lanka Textile & Apparel Sector 29,000,000 20,050, Public Institutions NEDA=National Enterprise Development Authority 31,100,000 14,715,000 Sri Lanka Export Development Board (EDB) 540,500, ,000,000 Sub Total 600,600, ,765,000 Total -Capital Expenditure 1,686,805, ,259,249 Grand Total ( capital & Recurrent) 2,283,700,000 1,347,683,043 74

90