Economic & Market Bulletin
[September 06, 2005]

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	FEATURE: Economic & Market Bulletin

A weekly publication of the Economic Affairs Division of the Ministry of Foreign Affairs
Volume 2:Issue 25 
02^nd September 2005 

Sri Lankan Exports Continue to Grow
 

• Sri Lanka’s growth momentum of exports continued in June 2005.Exports grew by 12.1% to US$ 514 million in June 2005 from US$ 459 million recorded in June 2004.  Exports earnings during the first half of 2005 grew by 11.5% to US$ 2,906 million.

• Industrial goods grew by 12.8% to US$ 407 million in June due to high growth in exports of food, beverages and tobacco products, textiles and garment products as well as rubber-based products. 

• Agricultural exports grew by 9.2% to US $ 96 million in June 2005 compared to US $ 88 million in June 2004.  Tea exports which accounted for 10.7% of overall export growth increased by 9.6% with exports amounting to US $ 68 million in 2005 compared to US $ 62 million in June 2004. 

• Total imports also grew by 18% in June 2005 to US$ 815 million from US$ 691 million recorded in June 2004.  Intermediate goods imports increased by 28.4% from US $ 408 million in June 2004 to US $ 523 million in June 2005 due to the increases in imports of petroleum and chemicals.
  
  

Freight Forwarding to be regularised

• The Ministry of Ports and Aviation has decided to regularise freight forwarding to provide a safer and more efficient service. Therefore any individual or establishment engaged in the business of Freight Forwarding, Non Vessel Operating Common Carriers (NVOCC), Container Terminals, Container Depots and Container Fright Stations will be required to obtain a licence.

• This licence can be obtained from the Director of Merchant Shipping in order to conduct such business in compliance with the Freight Forwarders and Non Vessel Operating Common Carriers (Licensing) Regulations 2005 and Container Operators’ Regulation 2005, (Government Gazette No.1402/19 dated 22 July 2005). The application for such license must be made as specified in the said regulations on or before the 20^th of September 2005 to the Director of Merchant Shipping.
  
  

Sri Lanka –Indonesia Business Council Committee for 2005/06

• The 12^th Annual General Meeting of the Sri Lanka- Indonesia Business Council concluded recently at the cultural centre of the Indonesian Embassy.

• The council comprises 54 member companies from diverse sectors promoting trade and services as well as promoting exports from Sri Lanka to Indonesia being cited as one of the Council’s main objectives.

• The new Committee in collaboration with the Ceylon Chamber of Commerce will continue to achieve the objective of strengthening bilateral ties between the two countries.

Lahore Chamber of Commerce to boost ties with Sri Lanka

• A MOU was signed between National Chamber of Commerce Sri Lanka (NCCSL) and the Lahore Chamber of Commerce and Industry (LCCI) in Colombo on 29^th August, 2005 to enhance and boost in both countries under FTA. 

• According to the NCCSL officials the signing parties shall encourage and promote in accordance with their respective laws and regulations, cooperation between the two in the field of bilateral trade in goods and services on the basis of equality and mutual benefit and shall determine by mutual agreement.

• The MOU will also make way for exchange import /export market information on goods and services that are available from either party and promote and assist each other in mounting exhibitions, trade fairs and buyers and sellers meet. 

New Development Project for 200 Industrial Villages

• The Ministry of Small and Rural Industries will develop 200 selected industrial villages investing Rs. 600 mill lion in 2006.  This is under the new efficient plans and projects to achieve the objective of developing SMEs while promoting value added product manufacturing industries. 

• The Ministry expects to embark on an ambitious programme focussing value added productivity in each village by promoting traditional local products such as pottery, kitul, leather, jewellery and coir as well as other new recognised products which are in high demand in the international market. 

• Products such as motor spare parts and hand made papers have good demand in the international market and the Ministry is exploring possibilities to set up two motor spare parts manufacturing villages and five hand made paper products manufacturing villages in the future. 

The First Ever Strategic Market Analysis Workshop

• The first ever strategic market analysis workshop organised by the international trade centre (ITC) was held at Sri Lanka Institute of Development Administration (SLIDA) in Colombo, which was co-sponsored by the Department of Commerce.

• The event was organised to enhance awareness among Government officials, the business sector and civil society about the implications of WTO agreements on the economy of Sri Lanka, and to assist the country in building capacity to address issues arising from its participation in the WTO.

• The key component of the programme was building capacity through training on strategic market analysis with special attention given to market access issues.  The workshop offered by ITC’s experts using online systems that are now available in Sri Lanka, namely Market Access Map and Trade Map. 

• Market Access Map is an interactive database on tariffs and market access measures. It contains market access conditions applied at the bilateral level by 170 importing countries to the products exported by more than 200 countries and territories.
  

Tea Board Promoting Untapped Markets in Eastern Europe

• The Sri Lanka Tea Board (SLTB) will promote untapped markets in Europe to increase local exports by 10% on yearly basis.  The SLTB has already launched a major promotional and trade fair campaign in newly joined EU states covering Czech Republic, Slovakia, Ukraine, Poland.  

• Sri Lanka exports more than 292 million kg s out of which one third of them are exported by way of value added products.  At present Sri Lanka exports more than 30% of value added tea and expected to reach 15% mark. 

EXCHANGES RATES ON 1^ST SEPTEMBER 2005

EXCHANGE RATES OF GULF CURRENCIES

(Source: Financial Times 2^nd September 2005)