Sri Lanka Economy - News & Updates

[Lankan Ranger]

Sri Lanka Ready for Business Investment

Conference and Exhibition Management Service (CEMS), a global company launched operations in Sri Lanka last week focusing on new business opportunities.

“We saw good opportunities to launch new business in Sri Lanka as new investments are coming in. Therefore, we postponed the launch of our operations in Singapore and came here, said the group director, global operation of CEMS S.S. Sarwar.

CEMS announced three in one international exhibition on textile and apparel sector and allied fields. The “Texttech Sri Lanka 2010 International Expo” exhibition will focus on garment technology and machinery, “Dye+Chem Sri Lanka 2010 International Expo” exclusive exhibition on dyes and speciality chemicals while “Colombo International Yarn and Fabric Show 2010” will target on entire garment export sector in Sri Lanka.

The exhibition will be held at Sri Lanka Exhibition and Convention Centre (SLECC), in Colombo from March 4 to 6. The mega exhibition has been endorsed by the Sri Lanka Apparel Exporters Association and Fabric and Accessory Manufacturers Association.

President and group managing director of CEMS Global Meherun N.Islam said that South Asia textile and apparel industry occupies a top slot in the export sector. With the top slot offered by this sector CEMS has been organising the ‘Texttech Expo’ for the past decade with a view to boost exports. We are happy to bring this internationally branded exhibition to Sri Lanka as there is a need for such exhibition of this nature in this country she said.

The latest technology on show will open new vistas and enable the local industry to update and upgrade its technology to be on par with competitors in the world, she said.

Sarwar said, this exhibition will provide business to business platform that facilitate the businesses to move froward. Many trade chambers of India and China and other countries have confirmed their presence at the exhibition, he said. CEMS has also planned an international exhibition in power and energy sector on June this year.

South Asia has a greater share in the global textile and apparel industry. However, Sri Lanka is the only place that has a potential to grow business. Therefore, world needs more information on Sri Lanka and this exhibition would cater that aspect of the industry today, he said.

Financial News | Sundayobserver.lk

 

[Materialistic]

its good to see Srilanka grow after a war stretched over decades, sometimes back we also used to have something called economic growth measured in GDP.

Down with Zardari & PPP They screwd up our country and economy ( from 6.5% actual & speculated 8.6% down to a mere 2.3%)

 

[Lankan Ranger]

Sri Lanka Economic Summit

Asian economies are confronted with crucial changes in international economic and financial conditions as a result of the recent global crisis. Renewed inflationary pressures and slackening external demand have created new policy challenges for macroeconomic management, while the sub-prime crisis has refocused attention on financial regulation, supervision and reform.

The conference will focus on the current challenges faced by
economies in the Asian region

Persistent global imbalances and the weak dollar also suggest that global conditions will continue to complicate stabilization efforts and threaten to magnify the consequences of policy missteps. To address these and other critical issues, the Ceylon Chamber of Commerce will hold its 11th Sri Lanka Economic Summit together with the 24th Confederation of Asia Pacific Chambers of Commerce and Industry (CACCI) Conference from July 5 to 7 at the Cinnamon Grand, Colombo.

The conference will focus on the current challenges faced by economies in the Asian region, and recommend some policy responses to the changing conditions at home and abroad that governments, international financial organizations and private sector participants can adapt that will serve as crucial determinants of growth and macroeconomic stability in Asia over the medium term.

The joint event is targeted to draw together possibly the largest gathering of industry leaders, foreign dignitaries, leading public and private sector decision makers, diplomats and professionals from many spheres of the regional economy. This will present an ideal occasion for the region to map out its growth strategy; an opportunity for progress that we cannot afford to miss.

Sri Lanka Business News | Online edition of Daily News - Lakehouse Newspapers

 

[Lankan Ranger]

Sri Lanka launches locally assembled van

The local automobile industry has a huge potential and there is a growing market for locally manufactured vehicles. It is a landmark event for WTL Automobiles to unveil their first locally assembled diesel passenger van, WTL Hiace WTL Automobiles Managing Director Indika Sampath Merenchige said.

A BOI company, WTL Automobiles was set up for vehicle assembling with an investment of Rs. 100 million.

WTL Automobiles (Pvt) Ltd launched the locally assembled diesel van at a ceremony held yesterday in Colombo. Picture by Kavinda Perera

The venture has been successful in producing vans assembled in Sri Lanka. The value addition per vehicle is 42 percent.

The parts for the van are imported from China.

“The company will provide an efficient after sales service and this could create a market for its spare parts within the country. It would help generate employment and also a market for the automobile spare parts saving a great deal of foreign exchange,” he said. Sri Lanka could attract international market as a vehicle assembling centre.

We are confident that we could compete with Japanese vehicles as our product is offered at an affordable price. With this move, an automobile related industry growth could be anticipated, he said.

Wasana Trading Lanka was established in 1994 to import Japanese reconditioned vehicles by focusing the requirement of customers and a good after sales service.

In 2005, Chana Changan Automobile Corporation awarded the sole agency to Wasana Trading and it captured the market by opening many showrooms, workshops, spare parts outlets and a 24-hour technical assistance service.

Sri Lanka Business News | Online edition of Daily News - Lakehouse Newspapers

 

[Lankan Ranger]

China Economic Delegation in Sri Lanka

A fifteen member economic delegation from the Yunnan Province in China visited the BOI to study the economic and investment climate of Sri Lanka.

BOI Deputy Director General (Investment and Promotion) A M C Kulasekera briefed Economic Research Department of Yunnan Province Yang Jie, Vice Director General, and his delegation consisting of senior Chinese economists and researchers on Sri Lanka's potential for investment and trade.

Yang stated that the strategic objective of his mission, which has the support of China's Central Government, was for Yunnan to develop and strengthen its ties with South Asian countries.

He added that he was impressed with the situation in Sri Lanka and was confident that there was great potential for exchanges with Yunnan Province. Yunnan, like Sri Lanka has a dynamic tourist sector and also had accorded considerable importance to investment. Kulasekera said Yunnan had one of the best investment promotion agencies in China and was confident that there were many opportunities for co-operation. Both sides agreed to work together at the Kunming Trade and Investment Fair in Yunnan Province, where the BOI will be participating.

The Yunnan economic delegation also agreed to promote Sri Lanka as a destination for investment. In recent years China has emerged as one of the leading sources of investment to Sri Lanka among East Asian nations.

The growing economic ties between Sri Lanka and China is reflected by the regular hosting by BOI of regional Chinese business chambers notably from Shanghai, Eastern China and from Fujian province.

Furthermore there is a Chinese economic presence in the island in the form of the BOI promoted Special Economic Zone in Mirigama dedicated for Chinese enterprises.

Sri Lanka Business News | Online edition of Daily News - Lakehouse Newspapers

 

[topjumper]

Is the Sri Lankan exchange open to direct foreign investors? It'd be nice if there's an etf that tracks its index, I'd be interested to get some exposure to its market.

 

[Lankan Ranger]

Is the Sri Lankan exchange open to direct foreign investors? It'd be nice if there's an etf that tracks its index, I'd be interested to get some exposure to its market.

YES

Colombo Stock Exchange: Colombo Stock Exchange | Welcome

 

[Lankan Ranger]

Colombo can maintain hub status - CASA

The global downturn has had a significant impact on shipping worldwide. In fact now about 12 percent of the global fleet is idle that means 1.5 million TEUs are idle.

The end the war will help in reducing the cost for owners in due course with the removal of the ability of insurance companies to levy additional premium when calling Colombo, Ceylon Ship Agents Association (CASA) Chairman Nimal Ranchigoda told the Daily News Business.

Regarding the competition the country faces, Sri Lanka’s position is similar to that of Hong Kong to China. The more China grows the more Hong Kong grows.

There is enormous potential for growth in India and Colombo stands to benefit by such growth. The Indian and Sri Lankan ports are complementary of each other and not competitive against each other.

Right now the ISC handles about 13 million TEUs and it is expected these volumes will double in a few years. “Therefore, there is room for both Indian ports and Sri Lankan ports to grow and serve the trade. Thus Colombo will continue to have its role as a hub / relay port to play,” he said.

Due to the global downturn, slow steaming to conserve fuel and the general decline in trade the urgency for deeper draught berths to handle very large container carriers of today is not pressing.

However, we should have had at least one terminal of the new Colombo port expansion project in place by now in the light of the number of large container vessels already in service and in order to stress our strengths as a regional hub port facilitating the movement of containers in the ISC region.

Some pressing needs of the shipping industry particularly in the area of ships’ husbanding, bunkering and ship repairs should be met soon with the development of the Hambantota port while in the long term facilities for container handling can also be envisaged.

There must be a greater impetus for exports, new markets and new production should receive priority if we are to strengthen the economy.

Facilities for vessel husbanding, repairs, casualties, adequacy of spares, are in short supply. Travel time between the airport and ports have to be reduced. Rail transport should be promoted. Coastal shipping has vast potential. Inland container depots in the industrial zones will be required to ease congestion and streamline marshalling of exports and imports.

Ferry services around Sri Lanka as well as from Sri Lanka to other ISC destinations to promote tourism and trade should be launched.

The implementation of Electronic Data Interchange (EDI) and E-Commerce for all stakeholders in the industry to eliminate the need to visit various Government organizations like Sri Lanka Ports Authority and Sri Lanka Customs and other organizations should also be expedited.

Sri Lanka stands to benefit from the enormous trade and movement of cargo from the powerhouses of India and China since it is believed that 40 percent of world trade would be contributed by Asia.

“We should strive in delivering world class services not only in port handling functions but also in other ancillary services which will feature Sri Lanka as a regional shipping/maritime centre rather than just a hub or relay port. The necessary infrastructure and business climate should also be made available,” CASA Chairman said.

Sri Lanka Business News | Online edition of Daily News - Lakehouse Newspapers

 

[Lankan Ranger]

Sri Lanka Telecom Summit 2010 in March

Today’s telecommunications experts are expected to move effortlessly from IT manager to strategic visionary - steering critical processes, anticipating and overcoming barriers, and collaborating with key stakeholders to orchestrate fundamental change. To stay ahead of the competition, leaders in the telecom industry are looking to improve business processes and ensure optimum delivery.

With this task in mind, Runeware Integrated together with BE Expositions India will bring to Sri Lanka the Sri Lanka Telecom Summit 2010 – a forum which will gather industry leaders to discuss solutions, best practices and technology advancements in the telecommunications industry. This key technology conference is packed with interactive sessions, panel discussions and one-on-one networking opportunities where topics are chosen by Telecom sector experts in order to best identify and address issues being faced by leaders in the telecom space.

Scheduled to be held on the 4th of March 2010, at the exclusive Cinnamon Grand Hotel in Colombo, the Sri Lanka Telecom Summit 2010 is the premier event for Telecom professionals looking to get and stay ahead of the curve. Whilst there are a select group of sponsors in attendance, including ICIL as Diamond Partner, VERINT as Gold Partner and Shaildhar Telecom Services as the conference partner, the program is endorsed by the Information and Communication Technology Agency of Sri Lanka (ICTA), together with GSA, Indian Cellular Association (ICA), ISPAI, TUG India, ITU APT, CDG and Wimax, and is designed with the Telecom community in mind. The event is presented by UT STARCOM.

The delegate attendance is comprised of the most well respected executives in the Sri Lankan and Indian telecommunications industry, together with other experts, top and senior management executives and government officials.

The Island-Business

 

[Lankan Ranger]

Sri Lanka Airlines upgrades product to boost margins

SriLankan Airlines, Sri Lanka's state-run national career, is upgrading its product to boost margins following a revival in tourism traffic and is expecting to turnaround later in 2010, an official said.

In the financial year ending March 2009 Sri Lankan lost 9.99 billion rupees as global air travel slumped and a conflict with Tamil Tiger separatists intensified at home. The war ended in May 2009 and tourist arrivals have since picked up.

Chief executive Manoj Gunawardena says the losses in the six months to September 2009 were less than 50 million US dollars. From the third quarter the airline had started to cut losses.

"We broke even in December 2009," Gunawardena said. "We are now seeing average cabin factors of 70 percent."

The cabin or passenger factor is the share of seats sold from the total available. At times the passenger factor was as high as 80 percent, he said.

Sri Lanka has seen tourist arrivals increase by around 30 percent a month after the war ended with strong growth from Europe during the winter season.

Though traffic is good Gunawardena says some of the contracts struck with travel firms in Europe last year at discounted prices have reduced profits, but the margins would improve once new deals are struck at better prices.

"At historical ticket prices, a cabin factor of 70 percent would have been a roaring business," Gunawardena said.

"The intention is to turn this into higher revenues."

Sri Lankan Airlines launched a service upgrade with new menus giving a wider choice of food and beverages, with emphasis on business class and new uniforms for its staff on Tuesday.

Gunawardena says Skytrax, an airline quality ranking firm, has been engaged to audit the airline's service standards. SriLankan is hoping to push its ranking to the '5-star' category and also go deeper into the high margin business class segment.

Gunawardena says SriLankan's business class is mostly used by high end leisure travellers and with the upswing in tourism traffic there is more money to be made from up-market tourists.

"Even though we talk about the business class, we have re-designed the economy class substantially," Gunawardena said.

He says expanded in-flight entertainment and newer aircraft is aimed at pushing up quality.

Sri Lankan operates a fleet of 12 aircraft. Last year SriLankan phased out five narrow bodied Airbus A320s and acquired three newer aircraft. The airline has a policy of acquiring aircraft three years old or newer.

"We will acquire another two A320 type aircraft to account for short term growth," Gunawardena said.

"If our winter tourism business is showing good prospects we would take on a wide-body aircraft to increase our long haul capacity. It could be an A330 or A340."

The long haul aircraft could be acquired around October 2010.

"Our original plans were daily to Europe, double daily to London. The basis of our product was frequent non-stop direct flights to Sri Lanka. When times were bad we combined destinations, but that is not the most viable or economical product."

Lanka Business Report

 

[Lankan Ranger]

Sri Lanka gets more garment factories

The Board of Investment, Sri Lanka’s investment promotion agency, said it has given approval for investors, including a Hong Kong firm, to set up clothing factories for export.

The announcement came just days after the European Union said it will withdraw duty free access given to Sri Lanka because of concerns over alleged human rights abuses.

The BOI said in a statement that it has signed an investment agreement for 35 million rupees with Interfashion Limited, a firm sponsored by Banke Textile Asia of Hong Kong.

“The company will manufacture high-value ladies formal wear for Marks & Spencer and Tesco.”

The company expects to operate with a 60,000 production capacity a month.

The production facility, located at Nuwara Eliya in the central hills, will provide initial employment for a workforce of 250 which is expected to be increased up to 1,200.

BOI approval entitles investors to concessions like tax breaks and duty free imports of machinery and raw materials while further incentives are given to firms setting up plants in rural areas.

The BOI also said it signed another investment agreement with Trendywear Adhikarigama which will invest 315 million rupees to put up a plant to manufacture ladies high fashion garments for the export market.

The company expects to operate with a production capacity of 120,000 pieces a month and export their products to the US and UK markets.

The company will provide initial employment for a workforce of 1,000 which is expected to be increased up to 1,500.

Trendywear already operates four other garment manufacturing plants providing employment for a workforce of 3,000, the BOI said.

Sri Lanka gets more garment factories - LANKA BUSINESS ONLINE

 

[Lankan Ranger]

Sri Lanka Institute of Information Technology holds annual convocation

The Sri Lanka Institute of Information Technology (SLIIT) held its general convocation. The ceremony stands testament to the many accolades and achievements of SLIIT students' performances in their chosen fields of study both abroad and in Sri Lanka.

"The graduation ceremony bears witness in recognition of the best achievers in the sphere of Information Technology, Software Engineering and Computer Systems and Networking" Chief Academic and Executive Officer of SLIIT, Professor Lalith Gamage said.

Representatives from SLIIT's highly esteemed affiliates Sheffield Hallam University (SHU) UK and Curtin University were present to bear witness to the most recent batch consisting of 690 students who graduated on February 18.

SLIIT Chairman Prof. S. Karunaratne, said; "we are extremely pleased about our students' achievements, and take pride in their ability to excel on a competitive global platform, both in the classroom and within the work environment. We wish them all the very best in their future endeavours".

Sri Lanka Business News | Online edition of Daily News - Lakehouse Newspapers

 

[Lankan Ranger]

Hambantota Port to ease Colombo Port Congestion

The Colombo Port is in demand for container cargo and as such no space is available for port related industries and services. The country badly needed the development of the Hambantota port, Sri Lanka Ports Authority Chairman, Dr. Priyath B. Wickrama said.

He was speaking at the 10th IAPH Asia / Oceania Regional Meeting and Port Forum which was held in Indonesia.

“On completion of the final phase of Hambantota Port we will get a 13 km long quay wall length at the minimum depth of 18m with the overall capacity of 20m TEUs. Phase one construction work will be completed by end of 2010 and the construction cost is around US $ 500 million”, he said.

The Hambantota Port will come into operation early next year and under phase one, a number of services have been identified as business ventures. Bunkering, ship repair, ship building, crew changes are the key businesses here as Hambantota is located at the centre of east west shipping route and it is just six to ten nautical miles away from the shipping route, he said.

General cargo, port services, facilities for port related industries, ship repair and warehousing facilities are the other key ventures and proposals for these ventures that will be called within a months time.

The investors will be given sufficient time to put up their infrastructure and be ready to commence operations once the port is operational early 2011.

In order to ensure the smooth functioning of these ventures, container handling facilities will be provided even during phase one construction works.

More than 85 percent of the Hambantota Port Development Project is financed by the Chinese Government on a loan agreement signed between the two countries.

The construction work is done by a Chinese consortium. However the entire port belongs to the Government and all operations will be handled by the Sri Lanka Ports Authority.

Sri Lanka Business News | Online edition of Daily News - Lakehouse Newspapers

 

[Sanchez]

Sri Lanka is very attractive to Chinese tourists and investers alike. I hope the economic and cultural relations will be rapidly developed despite interferences from the mr. Big Names.

 

[PeaceForAll]

Sri Lanka is very attractive to Chinese tourists and investers alike. I hope the economic and cultural relations will be rapidly developed despite interferences from the mr. Big Names.

What did that stand for? could u pls elaborate...