EXPO 2012 Achieves US$66,000 in Confirmed Export Orders
The Nation. quoting Minister of Industry and Commerce Rishad Bathiudeen, reports on business outcomes of the recently concluded Expo 2012. Taking out 'prospect business' here are the key figures:
Total value of confirmed orders = US$66,090.
Value of confirmed orders on the SME pavilion (52 stalls) = US$15,645.
According to Government reports, there were 1,300 visitors to Sri Lanka for the Expo and so representing average business value of US$50 per participant. Hopefully, given the high costs associated with organising the Expo and the subsidies on airfares and hotels costs - one would expect (and hope) the value of business orders (signed orders) will show a marked improvement over the next three to four months.
Sri Lanka to Receive $426.8 Million After IMF Review
(Bloomberg) The International Monetary Fund’s board of directors released $426.8 million to Sri Lanka after reviewing the country’s implementation of economic policies attached to a $2.56 billion loan.
Sri Lanka in February raised interest rates for the first time since 2007, let its currency weaken to a record low and increased fuel prices. The moves aim to curb imports such as oil, contain a trade gap and stem a decline in foreign-exchange reserves, as officials grapple with resurgent domestic demand following the end of the island’s civil war in 2009.
Sri Lanka’s foreign reserves fell about 26 percent to $5.96 billion by December from $8.1 billion in July as the trade gap swelled. Standard & Poor’s lowered the island’s sovereign rating outlook to stable from positive at the end of February. Fitch Ratings has said depleted reserves have increased balance-of-payments risks.
Malaysian Sovereign Wealth Fund Buys Almost 9% of John Keells
Malaysian Khazanah Nasional Berhad fund has purchased almost 9% of John Keells Holdings representing a deal worth $114m. The shares have been purchased from Sri Lanka's Employee's Provident Fund (71m shares) as well as from other sellers.
The deal, which has been welcomed by John Keells Holdings, has been arranged by Bank of America Merrill Lynch.
USAID Awarding Small Business Grants in Sri Lanka Under 'Biz+' Program
The first grant under the USAID Program has been awarded to Jeyantha’s Katcovalam Ice Factory in Jaffna. The funds will be used to expand ice production from six to 26 tons a day, a US embassy statement said. This will help meet growing demand from fishermen and traders who transport fresh fish to the capital Colombo and elsewhere. The grant will fund the purchase and installation of environmentally-friendly refrigeration units at a new central facility, and will support localized cooling and ice distribution centers - and will also be used to help cut costs of wasted cold water.
"The Biz+ program supports local businesses, increasing economic growth and job creation in recovering areas," and provides grants along with technical and managerial assistance to small and medium sized businesses.
Sri Lanka - Upside to the Downside
Cheaper exports and better value for money for tourists are just two major positives that should be aggressively exploited by Sri Lanka amidst what seems to be a litany of glom-oriented financial indicators. What is necessary is policy change to capitalize in areas where disadvantage can be turned into opportunity.
The real opportunities for Sri Lanka demand radical strategies and aggressive implementation. Tourism projections should be doubled or more. Achieving that exponential growth will require new approaches and very substantial PR measures.
Sri Lanka’s continuing currency depreciation means better and better value for money for tourists. In particular, for tourists from wealthy developed economies – UK, Europe, Australia, US and Japan all fall into this category.
Current marketing of Sri Lanka as a tourist destination in these countries is woeful compared to the efforts and visibility of competing countries. If necessary, Sri Lanka should be prepared to charter planes to substantially lift the flight capacity into Sri Lanka.
Exports too is an untapped market. Examination and analysis of the country’s trade statistics shows an unbalanced export strategy.
There is an overdependence on a small number of sectors such as clothing and tea. The contribution of export services, though growth oriented, is still small compared to that achieved by competing countries including Vietnam, India, Indonesia, Philippines and others.
There are many sectors that could become strategically important with the right strategy and with the combined support of Government, Business and Educational establishments.
But speed is of the essence and the World will not stop and wait for Sri Lanka. Rather, Sri Lanka needs to run, catch up and then sprint. Achieving that demands an end to bureaucrats, the end to self-effacing leaders in state agencies and in industry. Sri Lanka needs to adapt, become agile and give full rein to those not afraid of risk.
Sri Lanka’s Exports Up in December
Garments, textiles, coconuts and tea all contributed to increased trade figures for Sri Lanka in the final month of 2011. Exports in December were up over 24% over a year earlier and achieving US$905.5m. Imports for December, however, also rose - by almost 34% to a value of US$1.9b.
Reacting to the figures, Sri Lanka will attempt to curtail import related credit to reduce the trade and current-account deficits, and ensure that inflation remains at the “mid-single digit levels" in 2012.
Sri Lanka State-owned Company Offers Armed Security To Shipping in the Indian Ocean
Following the footsteps of a number of Sri Lankan security services firms, Sri Lanka's State-owned Rakna Arakshaka Lanka has launched an armed security service with 200 personnel for shipping at risk from Somali pirates.
The service is reportedly offering its services to Sri Lankan shipping companies as well as to foreign shipping operators.
The company has obtained approval, including firearms and weaponry from the Ministry of Defense. The company has not disclosed its pricing structure but will likely offer a service that is competitive compared to similar current security services providers.
EU Financial Assistance to Boost Education and Health Facilities in Sri Lanka
COLOMBO, – Vulnerable communities in North East Sri Lanka are to benefit from a new school and health centre, funded by the European Union through UNICEF.
LKR five million (EUR 33,260) was invested in the Gramodaya Health Centre, in Pallikuirruppu, Mutur to tackle malnutrition among children aged below five as well as the high levels of anaemia among women.
A further LKR 39 million (EUR 261,000) grant was committed for the construction of 30 classrooms, a science laboratory, teachers’ quarters and decent water and sanitation for the pupils of the T/M Elangaithuraimugathuwaram Hindu College, in Eechilampatthu, near Trincomalee.
These investments in the community are part of a wider EU-UNICEF partnership with the Government of Sri Lanka, which aims to reduce social disparities by addressing the educational and health needs of the more vulnerable communities.
Asitha Perera, Sri Lanka's Ambassador to Italy, signs loan agreement to benefit Northern Smallholder Farmers
US$22.2 million International Fund for Agricultural Development (IFAD) loan to Sri Lanka for the Iranamadu Irrigation Development Project.
The funds wll be applied to improving irrigation infrastructure and crop diversification, and help create new market opportunities for smallholder farmers.
The Iranamadu reservoir, which has not been maintained adequately for many years, will be rehabilitated to increase its water-holding capacity.
The project is expected to benefit about 7,000 households. In addition, farmers will receive training on water saving management methods that include climate change adaptation and mitigation measures such as rainwater harvesting.
This will enable them to use irrigation water more efficiently for sustaining their crops and contract farming. Women’s groups would also be formed and strengthened by offering training and development of vegetable production.
Since 1978, with this new programme, IFAD will have financed 16 programmes and projects in Sri Lanka for a total investment of about $ 400 million benefitting more than 500,000 households.
Emir of Qatar visits Sri Lanka
The Emir Sheikh Hamad bin Khalifa al-Thani has made a two day official visit to Sri Lanka in mid-January at the invitation of President Mahinda Rajapakse. The Emir of Qatari led a delegation comprised of high-ranking government officials and leading businessmen of the country.
HH the Emir will held bilateral talks with the Sri Lankan president on the day of his arrival. Several agreements covering improvement of bilateral relations in economic, trade, investment, cultural and industrial sectors were scheduled to be signed during the visit.
Qatar hosts more than 100,000 Sri Lankans, according to the information provided by relevant agencies.
Last month the Qatar prime minister, accompanied by Finance Minister HE Yousef Hussain Kamal, visited Sri Lanka and expressed the country’s desire to strengthen bilateral relations with Colombo.
The prime minister met the Sri Lankan president, Foreign Minister G K Peiris and many cabinet ministers. That was the first official visit of a Qatari delegation to Sri Lanka after diplomatic relations began between the two countries in 1995. The Sri Lankan embassy was established in Qatar in 1997.
Sri Lanka has most reasons to worry about Iran oil
(Reuters) - Sri Lanka's only refinery -- the 50,000 barrels-a-day Sapugaskanda refinery -- is almost entirely reliant on imports of Iran's crude. Switching to alternatives is not easy because the refinery has been configured to handle Iran's high-sulphur and high-density crude oil.
"We don't have any other alternative than getting oil from Iran," Petroleum Resources Minister Susil Premajayantha told Reuters. "Our main problem is that you can't use all types of crude here for our machines. The United States is Sri Lanka's biggest trade partner, so much is at stake in its relationship with Washington. The Sapugaskanda refinery relies on Iran crude, but for Sri Lanka to qualify for a waiver from the U.S. sanctions it would have to demonstrate to Washington a significant cut in the crude it imports from the world's fifth-largest oil exporter.
U.S. President Barack Obama signed a new law on New Year's Eve that imposed sanctions on financial institutions that deal with Iran's central bank, which clears oil payments. Sri Lanka's petroleum ministry is looking for other sources, but unlike most other buyers is limited in its options.
Sri Lanka's Petroleum Resources Minister Premajayantha says Sri Lanka will continue to import from Iran and is looking at changes to payment modes, following the lead of other Asian nations.
Sri Lanka is also considering buying Iranian crude through a Middle East intermediary, or possibly via a Chinese company that would then convert the cost of imports to a long-term loan or other financing facility, three officials from the central bank and petroleum ministry said. They spoke on condition of anonymity. Sri Lanka presently enjoys a four-month credit facility from Iran for crude imports - favourable terms that the country is unlikely to find elsewhere.
Rizana Nafeek Appeal
Despite a worldwide appeal on behalf of Rizana, the authorities of Saudi Arabia has failed to take action to release her. The Asian Human Rights Commission has now made a submission on behalf of Rizana to the United Nations Human Rights Council.