Sri Lankan Embassy promotes Tourism and Ceylon Tea in Russia

 

On 31 August, the tea section of the Sri Lankan Embassy in Russia arranged a tea tasting session at the MegaGrinn shopping mall in the leading supermarket retail chain in the 'Liniya' area of Kursk. This initiative plan in the sense of the official visit of Prof. M.D. Lamawansa, the Ambassador of Sri Lanka to Russia, accompanied by officials of the Embassy.

Ceylon tea, which was an attraction, was provided by Sri Lankan university students clad in sarees. Visitors, including Basilur, True, Williams, Susan, Zylanica, enjoyed genuine Ceylon tea embodied by such brands. A sweets-producing business also gave them sweets in an adjacent booth. Visitors expressed an interest in learning about the importance of the Lion logo and Ceylon tea. At the booth, a video about Sri Lanka to promote Sri Lanka. Visitors took part in the 'Facts About Sri Lanka' quiz to encourage tourism and the raffle draw that allowed them to win traditional Sri Lankan souvenirs and Ceylon tea packages.

The Embassy was asked by the manager of 'Liniya' to arrange similar sessions in other branches of the 'Liniya' chain in various towns in the Kursk area. Therefore, during this year, the Embassy will hold two more sessions in the region. To promote Sri Lanka as a tourist destination, the Embassy also arranged a working dinner for Kursk-based tour operators. Employees of seven tour operating companies took part. A presentation on Sri Lanka as a tourist destination was made by Commerce Secretary Chathurika Perera, followed by a discussion.

The seminar participants shared their experiences and observations of the trips to Sri Lanka, noting the island's advantages over other similar destinations and the variety of tourist excursions available. They also had some places where there were strong doubts, especially concerning the pandemic situation. They were eager to know when the Sri Lankan borders were opening their doors to Russian visitors.

There is no doubt that the commitment between Sri Lanka and Russia to improve trade and bilateral relations further would open up the country's new business/investment opportunities. In Sri Lanka, Russian companies/investors could explore business/investment opportunities and also look at the possibility of forming partnerships with Sri Lankan companies / joint ventures. 

OSL Take:  A positive sign for Sri Lankan trade is the decision of the Russian Federation to look at further improving trade relations with Sri Lanka. It could also help increase the export of Sri Lankan tea to Russia, which would allow the local tea industry. The geographical location of Sri Lanka in the Indian Ocean, the country's ease of doing business, and the many trade deals and trade concessions enjoyed by the government have made it an attractive business destination in South Asia.

 VBS/At/21102020/Z_TB1

Sri Lanka welcomes more FDIs from China

 

Chinese Ambassador in Sri Lanka Chargé d'Affaires Hu Wei, along with a large team of senior diplomats from the Sri Lankan Foreign Ministry, invited Regional Cooperation Minister Tharaka Balasuriya to a field visit to Lotus Tower and Colombo Port City on 8 September. After a spectacular bird-view of the great Colombo area and all the mega-projects from the 356-meter high Lotus Tower, which is the greatest in South Asia, the delegation headed towards Colombo Port City. It inspected the country's first marina, the first artificial golden beach in downtown Colombo and the advanced multimedia exhibition.

Hu Wei briefed Sri Lankan colleagues on the heart-warming stories of joint battling against the COVID-19 pandemic and the promising developments of the collaborative reviving Sri Lankan economy over the past half-year in a round table meeting with vibrant images and video-clips. The Chinese diplomat emphasised that the pandemic could neither divide the hearts of the two peoples nor obstruct the growth of the two countries' social-economic cooperation, let alone interfere with and sabotage.

China and Sri Lanka bravely broke the Western powers blockade in the 1950s and signed the historic Rubber-Rice Pact. With the two countries growing much more robust in the 2020s and our bilateral relations becoming much more vital, we will carry forward the Rubber-Rice Pact spirit. We will not allow any external powers to disrupt our cooperation.  Balasuriya stressed that the government of Sri Lanka welcomes investments from China and would ensure that those investments are well secured. The Colombo Port City is the largest ever foreign direct investment project in the history of Sri Lanka, which will draw $13 billion further investment, generate 83,000 jobs and become the new growth engine on the island.

This initiative will undoubtedly change the Colombo and Sri Lankan countryside. We are very positive, and we want to work with the Chinese Government and Chinese companies in collaboration. In response to a media question on U.S. unilateral sanctions against Chinese firms, the newly named Minister of State for Regional Cooperation stressed, "I don't think the penalty will affect us. Recently, the U.S. government blocked TikTok and then Huawei. I don't know if it's the new world order or a modern version in the way its executed. Sri Lanka does, however, believe in free trade. A sovereign nation should have the liberty to trade with whomever; it wishes to do business."

OSL Take: The change to upgrade the country’s industrial sector by introducing the newest technologies with assistance from India and China would enhance Sri Lanka’s agriculture exports. Sri Lanka already has trade accords with several countries and trade privileges from the EU and the US, which would benefit any business involved in exporting goods from Sri Lanka. Therefore, Sri Lanka offers an excellent base for foreign companies interested in exporting goods from Sri Lanka to overseas markets.

 VBS/At/21102020/Z_TB1

 

Sri Lanka Tourism partners with Sri Lankan missions to promote tourism

 

Via partnerships, Sri Lanka Tourism is collaborating with the Sri Lankan missions overseas to intensify organised and targeted tourism promotions in the new normal. In this sense, the visit of Dr Palitha Kohona, the newly appointed Sri Lankan Ambassador to China to Sri Lanka Tourism, was very much appreciated.

In promoting tourism in China, the Ambassador ensured a strategic degree of support while concentrating on driving high-net-worth visitors to create more excellent value for the local economy. The Ambassador welcomed by Kimarli Fernando, Chairman of the Sri Lanka Tourism Promotion Bureau (SLTPB), and senior officials, followed by a detailed discussion on the way forward for tourism promotion in China.

Sri Lanka has good route connectivity with China, where the national carrier, SriLankan Airlines. Further, Sri Lanka, and other Chinese airlines such as China Eastern, China Southern, Air China, operated more than 32 frequencies per week (pre-COVID). As a result, China has become Sri Lanka's second-largest tourism generating market.

This market's importance is not only due to the number but also to the potential value it can produce. In 2019, about 169 million Chinese travelled overseas with an average expenditure of $135 billion, according to the China Tourism Academy Data Center. There is a sizeable high-end market segment seeking exclusive experiences and luxury to generate higher tourism revenue for the local industry. Because of the price-driven competitive emphasis, however, Sri Lanka was not able to capitalise on this critical market strategically.  

The Ambassador's discussion paved the way for a strategic consensus on the Chinese market's tourism outlook, where concerted efforts made in line with the proposed global communication campaign.

OSL Take: Sri Lanka's tourism trade is on an uninterrupted growth path and is one of the fast-growing economic sectors in the country. Tourist arrivals to island are on a constant growth path as well, which in turn has resulted in the development of business/investment opportunities in Sri Lanka's tourism industry. Sri Lanka continues to make it to the top as a must-visit destination in lists of travel destinations compiled by renowned travel publications.

VBS/AT/20102020/Z_6TB

 

 

Sri Lanka declares export of Cinnamon in bark form to the Brazilian market

 

The Embassy of Sri Lanka in Brasilia has recently finalised the certification process with the Brazilian authorities to export to Brazil of Sri Lankan cinnamon in bark form. Sri Lankan exporters, which had previously had trouble exporting Sri Lankan Cinnamon in bark form to Brazil, could export the commodity by furnishing the requisite phytosanitary certificate provided by the Sri Lankan office of the National Plant Quarantine Service.

Sri Lanka Cinnamon in bark type is categorised in the category of wood and its components, in compliance with the Brazilian Customs classification and plant health requirements, due to the nature of the commodity. The Embassy of Brasilia has been actively involved with the Ministry of Agriculture for more than a year to finalise the certification of Sri Lankan cinnamon to promote the entry of Sri Lankan cinnamon into the Brazilian market.

Cinnamon has a promising market opportunity in Brazil. Imports of Cinnamon to Brazil increased from 18 per cent in 2017-2018 but decreased marginally in 2019 compared to 2018. With a value of $7.74 million, the total Cinnamon imported from the world by Brazil in 2019 is over 2,300 tonnes.

Sri Lanka accounted for a minimal amount of total cinnamon imports from Brazil in 2015. Subsequently, no reported exports of Cinnamon directly to the country have taken place in recent years. As the largest exporter of Cinnamon, Indonesia provides Brazil with almost 75 % of the total volume of Cinnamon. Under the GSTP Agreement, Sri Lankan cinnamon exporters may demand a 5% duty preference from Brazil. Thus, companies interested in exporting Cinnamon may consult with the Department of Commerce to obtain a GSTP certificate in bark form. To get the requisite certification document, prospective exporters will need to visit the National Plant Quarantine Service office in Sri Lanka.

The National Plant Quarantine Service will issue a certificate stating that the shipment is free of injurious insects, bacteria, nematodes, and fungi upon inspection of representative cinnamon samples from the consignment. Subject to fumigation at 48 g / m3 (above 210C) using methyl bromide. With the assistance of the EDB and the Ministry of Commerce, the Embassy aims to promote and diversify Sri Lankan exports to the Brazilian and Latin American markets, and potential exporters can contact the Trade Division of the Embassy by email at sltradebrazil@gmail.com.

OSL Take: Sri Lanka’s EDB is engaged in many programs to uplift its export sector by introducing modern methods and diversification. It also explores new opportunities to reap the most significant benefits from Sri Lanka’s free trade accords and trade allowances from foreign countries. Receiving GI for Ceylon Cinnamon by the EU would help improve cinnamon exports to the EU and other countries. Foreign businesses/investors could explore business/investment opportunities in Sri Lanka’s export segment and form alliances with local export companies.

 VBS/AT/20102020/Z_5TB

 

 

Sri Lanka and India to boost trade and investment activity amidst COVID-19 challenges

 

On Saturday, in the light of the difficulties posed by the COVID-19 pandemic, Sri Lanka and India pledged to work to foster an enabling climate for trade and investment between the two countries and deepen the integration of supply chains. Sri Lanka and India have agreed to work towards the early realisation of infrastructure and connectivity projects in the ports and energy sectors through close consultations under the Bilateral Agreements and MoUs and a strong commitment to a mutually beneficial partnership in development cooperation.

Among a host of other issues discussed by Indian Prime Minister Narendra Modi and Prime Minister Mahinda Rajapaksa during a virtual summit on Saturday were economic issues. The report claimed that Modi called on the Government of Sri Lanka to address the Tamil people's aspirations for equality, justice, peace, and respect within a united Sri Lanka, including pursuing the reconciliation process with the adoption of the 13th Amendment to the Sri Lankan Constitution.

In response, Rajapaksa expressed trust that Sri Lanka will strive to meet the wishes of all ethnic groups, including Tamils, by achieving reconciliation under the mandate of the citizens of Sri Lanka and by enforcing the provisions of the Constitution.  Both leaders recalled the active state visits to India in November 2019 and February of this year by President Gotabaya Rajapaksa and Prime Minister Mahinda Rajapaksa, respectively, stating that these visits offered a healthy political path and vision for the relationship's future.

The two leaders have agreed to reinforce technical cooperation in agriculture, animal husbandry, science and technology, healthcare, and AYUSH (Ayurveda, Unani, Siddha, and homoeopathy). Further, they have agreed to reinforce technical skills growth through expanded professional preparation, thereby realising the full potential of both countries' demographic dividends. They also agreed to improve people-to-people relations by discussing opportunities such as Buddhism, Ayurveda, and yoga in civilisational links and shared heritage. The Indian Government will facilitate the visit of a Buddhist pilgrim delegation from Sri Lanka on the inaugural international flight to the holy city of Kushinagar, recently declared as an international airport acknowledging its importance in Buddhism.

Prime Minister Rajapaksa welcomed Prime Minister Modi's announcement of a $15 million grant from India to foster Buddhist relations between the two countries. The donation will help to deepen people-to-people ties between the two countries in the Buddhist sphere, including through the construction/renovation of Buddhist monasteries, capability growth, cultural exchanges, archaeological cooperation, and mutual exposure of Buddha's relics, among other things.

OSL Take: The meeting between the Indian Prime Minister Narendra Modi and Sri Lankan Premier has resulted in many positive developments. While the Indian leader's visit sent the world a message of the close ties between India and Sri Lanka, India also expressed its commitment to the island nation as it's a development partner. All these would boost confidence levels of foreign businesses looking at entering Sri Lanka's economy.

 VBS/AT/20102020/Z_4TB

 

Russian aid to improve Sri Lankan agricultural sector

 

Prominent agricultural institutions and industries in Russia have agreed to support the agricultural sector in Sri Lanka. This issue got highlighted during the site visits made by Professor M.D. Lamawansa, the Sri Lankan Ambassador to Russia, and his staff to one of Russia's most significant agricultural areas, the Kursk region.

 The facility's annual production capacity is 17,000 tonnes, which is the largest in Russia. LLC Mushroom Rainbow is ready to welcome an interested Sri Lankan to its facility on a study trip. With the foreign constraints imposed on the Russian economy, Russia has made a considerable effort to grow enough mushrooms for its consumers.

Such efforts have resulted in the establishment in several regions of Russia of large-scale mushroom growing facilities. The Kursk State Agricultural Academy, named after Prof. Ekaterina Kharchenko, was visited by Embassy workers. Over 130 education programs, including agricultural technology, veterinary medicine, engineering, and economics, are offered by the Academy.

The Academy is willing to sign a memorandum of understanding with Sri Lanka for collaboration. The Embassy delegation also visited the Federal Agricultural Research Institute in Kursk to address collaborative and joint research projects in areas related to Sri Lanka, such as soil conservation, land assessment, improvement of production, preservation of food, etc.

Before the visit, the Embassy received input from the Ministry of Agriculture of Sri Lanka, the Post-Harvest Institute, the Faculty of Agriculture of Sri Lanka, and the Hector Kobbekaduwa Agrarian Research Institute on areas critical to Sri Lanka. The visit will share with the agricultural sector in Sri Lanka, where the Embassy expected to meet with the Russian Ministry of Agriculture.

OSL Take: The scheduled global promotional campaign for tea would further improve Sri Lanka's rising tea market. All of this will increase the market potential of the tea sector of Sri Lanka. Sri Lanka's exports of tea will further support the several trade deals and trade concessions enjoyed by the government. Consequently, foreign companies/investors may explore opportunities in the tea sector of Sri Lanka.

The tea sector in Sri Lanka has seen continuous growth, with an increase reported in the export sector. There have also been several incentives provided by the government of Sri Lanka to promote the tea industry in the region. Foreign companies/investors may explore opportunities for business/investment in the tea industry of Sri Lanka.

 VBS/AT/20102020/Z_3TB

 

 

PwC's Startup Accelerator to invest in new startups

 

In an age where disruptive business models such as Airbnb, Alibaba, and Uber are continually challenging conventional value chains, Price WaterhouseCooper 's Venture Accelerator and Lanka Impact Investing Network have joined forces to disrupt the startup ecosystem similarly. In an age where disruptive business models such as Airbnb, Alibaba, and Uber are continually challenging conventional value chains, Price WaterhouseCooper 's Venture Accelerator and Lanka Impact Investing Network have joined forces to disrupt the startup ecosystem similarly.

Sri Lanka has also increasingly looked at startups and their unconventional methods as a developing nation to help alter the monotony of the business climate and to help give Sri Lanka the all-important boost it needs to invigorate and disrupt industries. Therefore, PwC 's Startup Accelerator and Lanka Impact Investing Network (LIIN) recently signed a Memorandum of Understanding (MoU) to direct, mentor, and finance startups to achieve their full potential further to strengthen the foundation of startups across Sri Lanka. Furthermore, both organisations will focus more closely on the facets of social innovation and the development of startups and entrepreneurs.

The MoU was signed to collaborate and use tools to enable startups to grow globally, regionally, and internationally by PwC Sri Lanka Advisory Chief Channa Manoharan and LIIN Chairman Chandula Abeywickrema. PwC 's Startup Accelerator will use its industry experience to provide entrepreneurs with the requisite advice on market modelling, valuations to investor presentations, capital raising, while also providing recommended companies with a variety of advisory services to LIIN.

The arrangement also requires PwC to participate in LIIN-arranged networking sessions. "Through this MoU with LIIN, our ultimate objective is to create a powerful and sustainable startup network that, despite the challenges, has the potential to push the ecosystem forward," Manoharan said. He added that startups should play a more constructive role in moving the economy forward in the region.

Abeywickrema said during the ceremony, "This partnership between LIIN and PwC is surely a step towards driving the local ecosystem's entrepreneurial DNA." "We hope to help startups achieve their ultimate goals and discover game-changing startups for investors to invest in." LIIN has been instrumental in establishing the first social entrepreneurship network in the country to receive funding.

Furthermore, LIIN plans to initiate a new program promoting the funding of early-stage entrepreneurs and startups within a reasonably short period. The PwC Startup Accelerator, founded in 2018, aims to contribute to the growth of the Sri Lankan startup ecosystem through incubation, mentoring, advisory services, capital raising, and information partnerships. A major stakeholder in the ecosystem, PwC 's Startup Accelerator, has helped to uplift the local innovation environment, powered by an established team and access to the global network of PwC. With projects such as the NextLevel team of PwC Germany and the FinTech Startup program of PwC India, PwC aims to use their expertise and these global networks to partner with LIIN and accomplish the objectives as per the MoU.

OSL Take: Sri Lanka's ICT sector has seen massive improvements, with the startup concept that has revolutionised its business landscape. With more Sri Lankans having access to disposable income, the government's plans to enhance the ICT sectorencourage an economic culture of consumer spending. The opportunity for startups to flourish in such an environment is manifold.

 VBS/AT/20102020/Z_2TB