Economic & Market Bulletin
[September 17, 2005]

	Today's Stories
	FEATURE: Economic & Market Bulletin

A weekly publication of the Economic Affairs Division of the Ministry of Foreign Affairs
Volume 2:Issue 27 
16^th September, 2005 

IOM and World Vision sign $ 500,000 deal to help Tsunami survivors

• The International Organization for Migrants (IOM) and the aid agency World Vision have signed a US$ 500,000 agreement recently. It will improve vital water and sanitation services for Sri Lankans made homeless by the tsunami.

• The agreement covers a wide range of activities such as; the cleaning of wells, waste disposal, ensuring adequate drainage at transitional housing sites, and the construction of water and sanitation systems for temporary schools and health centres.

• According to the sources, more than 16,000 people will benefit directly from this project.

Japan grants Rs. 185 million to clear landmines in Sri Lanka

• The Japanese government has granted US$ 1,845,721 (approximately Rs.185 million) to five International Non-Governmental Organizations (INGOs) to accelerate landmines clearance in Sri Lanka’s North and East.

• According to the Japanese Embassy, the grants were provided for one year’s mine clearance activities at several locations in Jaffna, Kilinochchi, Vanuniya and Mannar in the North and Batticaloa in the East.

US to spend US$ 33 million to rebuild Arugam Bay

• The United States has agreed to grant US$ 33 million on the Arugam Bay Bridge, refurbished harbours and vocational schools.

• US Agency for International Development (USAID) has awarded a contract worth $33 million for a programme of large scale infrastructure, which is scheduled to take place before the end of the year, and the first project will be inaugurated 12 months later.

New submarine telecom cable between Sri Lanka and India

• Sri Lanka Telecom (SLT) and Bharat Sanchar Nigam Limited (BSNL) of India signed a construction and Maintenance Agreement (C&MA) on 12^th September 2005, to build a fibre submarine cable system between India and Sri Lanka.

• The submarine system will be established between Tuticorin in India and Mount Lavinia in Sri Lanka. This is expected to enter service in the 2^nd quarter of 2006.

• According to the officials this C&MA will help to get fast telecommunications connectivity at cheaper rates with other SAARC countries. 

Workshop on European market access requirements for food sector

• The Ceylon Chamber of Commerce in association with the Centre for Promotion of Imports from Developing Countries (CPI), Netherlands is organizing a workshop on European Market Access Requirements for the food sector from October 3 to 5 at the Trans Asia Hotel, Colombo.

• The main objectives of the workshop are;

a)  To review the present status of quality control in the food processing control in the food processing industry 

b)  Assess the perception and awareness levels of modern quality concepts with special reference to HACCP (Hazard Analysis and Critical Control Point) 

c)  To identify issues and constraints in the wider adoption of HACCA 

d)  To suggest strategies to address such issues. 

Commercial Bank named “Bank of the Year” for 5^th consecutive year

• The commercial Bank of Ceylon was adjudged Sri Lanka’s Bank of the Year by the “The Banker” which is the prestigious UK based magazine that serves the international banking community.

New Agreement to establish a Coir Research, Development and Training Centre

• The Coir Council International (CCI), the Coconut Development Authority (CDA) and the Coconut Research Institute (CRI) was signed an agreement to establish a Coir Research, Development and Training Centre.

• The proposed centre will be established in Dankanuwa.The total cost of the project is valued at US$ 780,765 with; theCFC granting US$ 480,373 the CCI granting US$ 81,365 the CDA contributing US$ 121,491 and the CRI contributing US$ 47,536.

CCC trade promotion mission to Eastern Europe

• The Ceylon Chamber of Commerce Trade Fair Unit will lead a trade and investment promotion mission to Austria, Slovakia and Slovenia. The mission will take place from October 15 – 23, which is being coordinated by the Sri Lankan Embassy in Vienna.

• The Sri Lankan delegation will promote a wide range of products from the traditional tea, coconut products and spices to non traditional garments, latex examination gloves, industrial gloves, luggage bags, furniture, handicrafts, rubber mats & flooring, rubber products and tires.  It also covers the service sector like shipping and tourism.

 New Global Joint Venture of MAS Holdings

• Elastic fabric of America (EFA), Dogi International Fabrics, Spain and MAS Holdings of Sri Lanka entered into a Memorandum of Understanding to explore a potential Joint Venture to establish a warp knit fabric manufacturing facility in Sri Lanka. 

• The joint venture is expected to cater to fast growing global intimate, swim wear and active wear segments, primarily supplying apparel manufactures in the South Asian region catering to the North American and European markets. 

Government to set up National Enterprise Development Authority

• The Ministry of Advanced Technology and National Enterprise Development will be set up the National Enterprise Development Authority (NEDA), investing Rs. 100 million.

• According to the officials this will stimulate the growth and development of Sri Lanka’s economy by encouraging, promoting and facilitating enterprise development of local industries in Sri Lanka.  

• The Government is formulating policies and promotional incentives, which have been designed to support and promote local tailors.   The Ministry has planned to grant loan facilities to tailors starting at Rs. 3,00,000 with and interest of 7% through the SME  (Small and Medium Enterprises) Bank. 

• The Ministry will also provide duty concessions for importing of garment accessories to develop the industry. 

EDB organises inward buying mission for rubber products

• The Export Development Board (EDB) together with the Sri Lanka Embassy in France organised an inward buying mission for rubber products in Sri Lanka to develop the export of rubber products.

• Due to this programme the export performance of rubber surgical gloves to France has increased.  It was Rs. 400 million in January, 2005 and increased to Rs. 809 million in June, 2005.  The export earnings of rubber gloves was Rs. 7575 million in 2003 and Rs. 8339 in 2004.

• According to EDB officials rubber finished products exports were 182 million in 2002, which increased in 2003 to US$ 230 million and it was US$ 284.94 million in 2004.  

• Under this inward buying mission programme EDB expects to find buyers from different countries through Sri Lankan embassies worldwide and also make arrangements to introduce these buyers for the suitable manufactures in Sri Lanka.

WEEKLY AVERAGE EXCHANGE RATES FOR MAJOR CURRENCIES

On 16^th September 2005

(Source: Central Bank of Sri Lanka)