Sri Lankan Export Development Board provides support for boat–building sector.

 

Boatbuilding is a targeted sector defined in the 2018-2020 National Export Strategy (NES) because it has the potential to make a vital impact on the country's foreign exchange earnings. Due to its strategic location and skills availability, Sri Lanka has an advantage in becoming the hub for boat manufacturing in the Asia region. The increasing demand for regional and local boats worldwide for fishing, construction, commercial, and recreational purposes has opened up tremendous opportunities and new markets for Sri Lanka.

The boat manufacturers must allow demonstrating their capabilities to the international market to leverage the opportunity offered. Keeping in line with this EDB began to promote the sector internationally by organising attendance at the Genoa Boat Show, held in Italy from September 19-24, 2019.

This exhibition is one of the largest yacht shows held annually in Europe. A leading manufacturer of Sri Lankan boats was able to obtain orders for the ships displayed at the show to the value of Euro 6900 (Ex-Factory), and other companies are negotiating with the market inquiries they received.

Given the importance of continuing Sri Lanka's international presence, EDB, with the assistance of the Sri Lankan Consulate General in Frankfurt, Germany arranged the participation of three boat building companies at the boot Düsseldorf Boat Show – Germany, held from 18-26 January, which is one of Europe's annual premier international indoor show.

Messe Dusseldorf GmbH arranged the 51st edition of the boot Dusseldorf Boat Show 2020. This year's show featured a large selection of products including yachts and motorboats by more than 1,900 exhibitors from 71 different countries. The show drew nearly 250,000 visitors.

The participants were able to establish positive relations with potential buyers, experience the latest developments, emerging trends in the boat construction industry, and yachting. Boot Dusseldorf offered a rare and detailed analysis of the boat building industry's trends and new developments and provided a perfect platform for showcasing boat builders ' boats and models.

A Sri Lankan firm has been able to connect with a Dutch manufacturing partner who has shown interest in starting development as a partnership in Sri Lanka. Both companies will further negotiate with customers who approach the exhibition. EDB will continue to promote the industry's ability to create more opportunities in the international market to increase the industry's global presence while providing an encouraging atmosphere for producers locally to pursue.

Research has already begun on creating a breakwater in Kapparathota to encourage the launch and continuation of a regulatory framework for the entire value chain of the boat building industry (excluding fishing boats). The EDB will also discuss the sector's problems with relevant government stakeholders.

OSL Take: The government of Sri Lanka's focus is on making the country a maritime hub in the Indian Ocean region. The latest achievements of the Colombo and Hambantota Ports indicates that the country is closing in on achieving the target. The port already has an industrial zone on the premises, which provides an ideal business space for companies engaged in exports and logistics.

All these developments would help Sri Lanka engage in trade activities with other countries. On the other hand, Sri Lanka could attract more cruise liners to the state by developing other harbours around the country and developing the required infrastructure facilities. Foreign businesses/investors should explore the increasing investment opportunities in Sri Lanka's ports and shipping sector.

VBS/AT/18082020/Z_TB5

Sri Lankan Embassy in Japan features Sri Lankan tourism at ‘2020 Fukuoka Travel Exposition’

 

With support from the Sri Lankan Tourism Promotion Office, the Sri Lankan Embassy in Tokyo placed Sri Lanka Tourism at the ' 2020 Fukuoka Travel Expo ' in Fukuoka, about 1,200 km from Tokyo. It is one of Kyushu Island's most significant tourism events that has been attracted by several thousand. The event was held from 8-9 February at the Elgala Hall in Fukuoka Metropolitan City.

For the first time, the Sri Lankan Embassy participated in this festival, and many of the tourists attracted its tourism stall. We were very keen on learning about and visiting Sri Lanka in the future. Fukuoka Prefecture is Kyushu Island's central city (the third largest island in Japan's main five islands) and surrounded by other prefectures such as Saga, Nagasaki, Kumamoto, Oita, Miyazaki, and Kagoshima.

So positioning Sri Lankan tourism in this regional capital with a total of 13 million people was perfect. The Tokyo office of SriLankan Airlines and Karunakarala Ayurveda Spa & Resort Sri Lanka volunteered to assist the Embassy's tourism promotion stall.

OSL Take: After the setback experienced by the tourism industry after the Easter Sunday assaults, Sri Lankan tourism officials have started promotional campaigns to attract tourists to the nation. The government of Sri Lanka has already introduced a relief package to the tourism sector. Given all these developments, there are signs of revival in the country's tourism industry.

Given all these grants, there are indications of the resurgence in the country's tourism industry. Many foreign investors have already demonstrated trust and development potential in the country's tourism industry. Foreign businesses/investors could, therefore, investigate possibilities for business/investment in the tourism industry in Sri Lanka.

Sri Lanka’s geographical positioning, along with the many trade agreements and trade concessions enjoyed by the country, makes it an attractive business destination. Therefore, foreign businesses/investors could explore setting up businesses in Sri Lanka as the base for the South Asian region.

Finally, we see a Japanese big fish taking to the “investment waters of Sri Lanka,” and now the “eyes” of the international investment figureheads and pundits will stretch with anticipation about the investment potential of Sri Lanka.

OSL has been upbeat about the country’s potential, but many still went on the “wait and see policy” to take part in the country’s all sector boom spearheaded by the USD 44 billion Western Region Megapolis Masterplan (WRMM) aimed at making Colombo a dominant trading-hub by 2030. So, any party willing to consider Sri Lanka as a worthwhile investment destination could now consult the biz-friendly OSL Team for a country overview and the smart-investment-way forward with our local expertise and active links.

VBS/AT/18082020/Z_TB4

 

Sri Lankan Export Development Board continues to promote Sri Lankan ICT opportunities in Japan

 

The Sri Lankan Export Development Board (EDB) is calling for applications from cutting edge technology companies to join its IT Week 2020 delegation to Japan from 8-10 April. More than 30 companies supported by the EDB, where delegates had opportunities to meet global investors and experts, learn about the latest trends in the industry and develop strategic collaborations while acquiring tech know-how that provides critical support for them to grow their businesses in the Japanese market.

As a result, Sri Lankan ICT and Business Process Management (BPM) companies have opened branches in Japan and entered into joint ventures with the Japanese firms and won prospective deals. This year, EDB will once again take part in Japan's IT Week 2020 to hold in Tokyo, Japan, from 8-10 April. It is the world's leading exhibition focused on ICT and BPM that offers a variety of opportunities for experts, suppliers, service providers and consumers to meet worldwide exhibitors and establish profitable business relationships.

The EDB has organised the Sri Lankan pavilion at Japan IT Week for five consecutive years since 2015, in line with the ongoing efforts of the Sri Lankan government to foster an export-driven economy, mainly through adaptation and innovation. This year marks the event's 29th edition and organisers have said it will draw 89,000 visitors and 1,490 exhibitors from around the world.

The ICT and BPM solutions providers in Sri Lanka are no newcomers to the IT industry in Japan, with many Sri Lankan companies already offering software, internet, big data and other solutions to leading Japanese companies such as Hitachi, Fujitsu and Canon IT Solutions. Such business lines have produced substantial export revenue for Sri Lanka, with government initiatives such as the IT Week mission to Japan expected to earn the additional country revenue.

Intending to promote the Sri Lankan ICT and BPM sector in Japan and vice versa, the EDB arranged a variety of workshops and client engagements within the Japanese market. This initiative is also an attempt to clear the concerns of most Sri Lankan companies on the Japanese market and to inspire them by sharing tips on how to win business deals successfully in Japan. The EDB organises the Sri Lankan Pavilion and Country Seminar for the sixth consecutive year, in partnership with the Sri Lankan Embassy in Japan, with the participation of 10 ICT and BPM companies interested in starting a business with potential Japanese clients.

OSL Take: The Telecommunications Ministry is finalising a digital identification card international tender. Over $55 million total costs will cover nearly the entire population. Another business/investment opportunity for foreign businesses/investors looking to enter the Sri Lankan economy is the Lotus Tower project of Sri Lanka.

The emphasis on developing Sri Lanka's digital infrastructure and enhancing its ICT sector will not only enable the country to become a digitised economy but will also provide enterprising individuals with ample opportunities to invest, innovate and introduce new techniques into this sector. Furthermore, Sri Lanka Telecom's launch of the ' National Digital Roadmap ' would pave the way for the digital journey of Sri Lanka would also open up a host of business/investment opportunities in the digital infrastructure sector of the country.

 VBS/AT/18082020/Z_TB3

SriLankan Airlines expands its footprint into the US and Europe

 

SriLankan Airlines is bolstering its footprint in the US and European markets by extending its current codeshare agreement with Qatar Airways, with new connections to serve different cities in these areas. SriLankan Airlines Group Chief Executive Vipula Gunatilleka said: "The extension of our corporation with Qatar Airways is an imperative component in SriLankan's ongoing ingenuities to provide our esteemed passengers with seamless connectivity across a wide range of destinations, except for increasing the number of cities to which we travel."

SriLankan will codeshare flights operated on Qatar Airways between Doha and Chicago's O'Hare, George Bush, Dallas-Fort Worth, Boston Logan, and Dulles International Airport in the US capital Washington DC, Madrid-Barajas Airport, accordingly with effect from February 8.

This proposal is the second phase of the recent expansion of the codeshare agreement between the two airlines, both members of the Oneworld global airline alliance, which links passengers via 13 member airlines to over a thousand cities in more than 180 countries and territories.

Phase 1 of the project was completed in the last quarter of 2019, adding a considerable number of destinations to both airlines ' networks. SriLankan's route network will cover 116 cities in 51 countries with the addition of Houston, Dallas-Fort Worth, and Boston as codeshare destinations.

By codeshare agreements with other partner airlines, SriLankan already serves Chicago, Washington DC, Madrid and Larnaca. Code-sharing arrangements are commonly used by similar airlines to strengthen their operations in various parts of the world. Passengers of SriLankan Airlines will now have the option of seamless long-distance travel via one travel booking through Doha. SriLankan has a variety of deals with other airlines, including codeshare.

OSL Take: Sri Lanka’s airport and aviation industry are currently undergoing a facelift with the government of Sri Lanka, giving prominence to the development and upliftment of the country’s airports, including the main international airport in the island. Sri Lanka’s national carrier is also undergoing a restructuring program. The airline is also on the lookout for a foreign investor to form a joint venture operation for the airline. Sri Lanka’s geographical positioning in the Indian Ocean region, the ease of doing business environment, and the strong trade ties with foreign nations have made Sri Lanka the ideal business destination in the South Asian region. All this indicates the growing business/investment potential in Sri Lanka’s airport and aviation industry.

The government of Sri Lanka is engaged in a program to uplift the country’s airport and aviation industry by launching a plan to develop regional airports in several parts of the country. The local airports aimed at further developing Sri Lanka’s connectivity to foreign destinations and trading markets. It has also helped boost the country’s tourism industry and the operation of many international airlines to the island.

Further, Sri Lanka’s geographical positioning in the Indian Ocean, the ease of doing business environment in the country, and the strong trade ties with other countries as well as the continuously growing tourism industry make the island the ideal business/investment destination in South Asia. Foreign businesses could, therefore, confidently explore business opportunities in Sri Lanka’s airport and the aviation industry as well as the opportunities in developing additional infrastructure facilities.

Thai PM says they are ready to support Sri Lanka’s economic development

 

Thailand's Prime Minister Gen. Prayut Chan-o-cha remembering the close bilateral ties between the two countries, told Thailand's support for development efforts in Sri Lanka. He made those remarks when on February 3 at the Government House in Bangkok Ambassador Samantha K. Jayasuriya, Sri Lanka's envoy to the Kingdom, issued a courtesy call to him.

During the meeting, Ambassador Jayasuriya conveyed President Gotabaya Rajapaksa's greetings and noted that the friendship between Thailand and Sri Lanka, deeply entrenched in the Theravada Buddhist traditions, extends many centuries and assures her full cooperation and constructive commitment to deepen the socio-cultural relationships further.

She for assistance to become a Sectoral Dialog Partner (SDP) in ASEAN in Sri Lanka. Ambassador Jayasuriya also highlighted Sri Lanka's steps towards this end through maritime security initiatives, capacity-building support for the region's emerging countries. General Prayut, while remembering his successful visit to Sri Lanka in 2018, said Thailand is ready to assist Sri Lanka in its growth and will extend support, particularly in agriculture, technical cooperation and tourism.

He recapped the importance of completing the proposed FTA between the two countries, which would allow Thailand and Sri Lanka to expand trade and investment. The Prime Minister also noted the exchange of sacred relics that contribute to strengthening cultural and religious relations between the two nations.

The meeting was held cordially with the participation of senior PM officials including PM Deputy Secretary-General Bansarn Bunnag and senior Thai Foreign Ministry officials, while Chancery Head Poornima Gunasekera accompanied the Ambassador, First Secretary (Commerce) Anil Sirimanna and Second Secretary Saritha Ranatunga.

OSL Take: Sri Lanka and Thailand enjoy strong bilateral and trade ties that have been further strengthened by the FTAs between the two countries.

 All this has resulted in many joint ventures/partnerships formed between Sri Lankan and Thailand businesses. Sri Lanka’s strategic geographical positioning in the Indian Ocean, its ease of doing business environment, and the several trade agreements, as well as trade concessions enjoyed by the country, have made Sri Lanka the ideal business destination in the South Asian region.

Foreign businesses/investors looking at doing business with India could explore the possibility of setting up base in Sri Lanka. Also, Indian businesses/investors could confidently explore business opportunities in Sri Lanka as well as look at forming partnerships with local companies and vice versa.

 VBS/AT/18082020/Z_TB1

 

Sri Lankan e-commerce industry trends and growth: An overview of the Daraz e-commerce index

 

Over the last year, Sri Lanka's e-commerce industry has seen rapid development, with a large percentage of shoppers venturing onto the digital platform. A rise in trust on available goods and online payment gateways has accompanied the shift in attitude towards e-commerce. Specifically, as Sri Lanka's largest online marketplace, Daraz saw a considerable increase in terms of orders and net market value in 2019 along with a drastic increase of 11.1% YoY growth in sales.

Collecting data from its platform, Daraz released an e-commerce index that shows key demographics, consumer behaviour and online shopping trends in Sri Lanka. The figures show a 1.5X YoY rise of active users with a 2.5X increase of last year's number of orders.

The western province holds 50 per cent of the largest online order share while the central and northwestern areas follow with 10 per cent and 9 per cent order shares, respectively. With 31 per cent in the former and 15 per cent in the latter, Colombo and Gampaha lead the district wise order distribution. Concentration at these locations is a reflection of the country's population density.

Concentration at these locations is a reflection of the country's population density. There is, however, an indication that main cities such as Colombo, Gampaha and Kandy are expanding towards developing towns such as Kurunegala, Kalutara and Gampaha. Of Sri Lanka's total online shoppers, 85 per cent claim to have shopped on Daraz with 94 per cent using the Daraz Mobile Online Shopping App, which is available on both common mobile OS platforms. The Daraz mobile app is considered the best mobile online shopping app for Android and also the best mobile online shopping app for Apple iOS, particularly in Sri Lanka.

Shoppers with different shopping behaviours fell into three specific groups. Recreational shoppers who enjoy searching for the latest trends are the 'young internet shoppers' aged between 18 and 24 years. They 're tech-savvy, brand loyal and less price-conscious. The 'well-educated shopper' consists of the 25-30 year age group, whose decisions are influenced by consistency and reliability. Although there is brand loyalty, this category also looks for the best deals and flash sales, with a majority of personal and home items in their shopping cart. They are conscious of consistency, are less adventurous and expect prompt delivery.

The Daraz e-commerce index uses two metrics; the percentage of the overall net merchandising value, and the percentage of orders. The average order value increased by 27.27 per cent in 2019. Health and Beauty goods online came in close to second while LED TVs, Audio/Video, and Gaming Consoles have continuously sustained their development in terms of category.

During November and December, both categories show an improvement in both sales revenue and order numbers, with the highest “11.11 sale” in Sri Lanka, followed by Black Friday in Sri Lanka and the seasonal Christmas sale taking place in these months. Therefore, the local online shopper follows global trends and indicates a positive direction for e-commerce.

OSL Take: Sri Lanka is currently engaged in a programme to transform the country into an e-economy. The regime of Sri Lanka has launched many programmes and provided many incentives to businesses involved in ICT to help develop the country's ICT and digital infrastructure sectors. As a result of all this, business/investment opportunities in Sri Lanka's ICT and digital infrastructure sectors have expanded.

 VBS/AT/13082020/Z_TB2

Exploring investment opportunities between New Zealand and Sri Lanka

 

On 29 July at 11 a.m., the Ceylon Chamber of Commerce, in partnership with the Sri Lanka-Australia-New Zealand Enterprise Council and the New Zealand Trade & Enterprise (NZTE), will hold a webinar on "New Zealand - Existing Market and Education Climate, Developments and Opportunities for Joint Collaboration”.

Due to COVID-19 trends, opportunities for collaborations between New Zealand and Sri Lanka, and plans of the New Zealand High Commission to be formed in Sri Lanka in 2020, the main objective of this joint initiative is to educate the business community in Sri Lanka on changes in the business climate.

Around 16,000 Sri Lankans live in New Zealand. Current education linkages between the two countries have allowed more than 1,000 students from Sri Lanka to study in New Zealand. New Zealand has a consumer economy, and a substantial portion of GDP is in the service sector. The economy depends on trade with other countries around the world.

According to Ralph Hays, New Zealand Trade Commissioner for Sri Lanka and South Asia, persons, protected and assets include

•      "NZ economy, the effect of COVID-19 and export plans, new High Commission plans for Sri Lanka, upcoming trends and innovations."

•        "NZ private sector current threats and opportunities faced by NZ small to medium-sized exporters and what these businesses look for in terms of business relationships in foreign markets" by Geoff Allott, Director & CEO, Performance NZ.

•       Jugnu Roy, Country Manager-South Asia of Education New Zealand will present "NZ Education market, latest trends and opportunities."

New Zealand's primary industries include the agricultural and horticultural, mining, and fisheries sectors. New Zealand's main exports include dairy products, beef, logs, and wood products, fruit, machinery and equipment, wine, fish, and seafood. According to the UN COMTRADE report on foreign trade, New Zealand 's exports to Sri Lanka totalled $272.82 million during 2019. High-quality Ceylon tea and cinnamon is ubiquitous in New Zealand, as well as gems and jewellery, clothing etc.

OSL Take: The discussion held between the New Zealand business delegation and the opening of a New Zealand High Commission in Sri Lanka next year are indications of the growing bilateral and trade ties between Sri Lanka and New Zealand. The developing relationship between the two nations would broaden further business/investment opportunities between businesses in both countries.

VBS/AT/13082020/Z_TB1