TRADING WITH SRI LANKA
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1 TRADING WITH SRI LANKA
2 Embassy of Sri Lanka, Ankara, Turkey
3 BILATERAL RELATIONS
4 Ancient Silk Route
5 Diplomatic/ consular relations between Sri Lankans and Turks were established when the Ottoman Empire appointed the First Honorary Consul in Ceylon Mr. Hassen Lebbe Marikkar in His second son Mr. Abdul Majeed succeeded him as the Turkish Consul from 1891 to 1903.
6
7 Following the Sri Lanka s independence on 4 February 1948, the two countries established diplomatic relations. The Embassy of the Republic of Turkey in New Delhi was accredited to Sri Lanka while the Sri Lankan Mission in Cairo and later Tel Aviv were accredited to Turkey.
8 SRI LANKA - TURKEY BILATERAL TRADE Sri Lanka s Exports to Turkey (2017) Up to September 2018 Sri Lanka s Imports from Turkey (2017) Up to September million USD / + 121,59% increase from 105 million USD (2016) million USD million USD million USD
9 SRI LANKA AND TURKEY Bilateral Investments Some of the Turkish firms operating in Sri Lanka are ; THY-BEKO- AKSA Generators- Beta Food Industry and Trading Co, - Ceylon Mahmood Tea International (Pvt) Ltd. Lanka Ballooning (Pvt.) Ltd. Construction & Engineering companies namely Enka Rönesans, TÜMAŞ (Hospital Project) etc. There are 9 registered companies with Sri Lankan capital operating in Turkey. Other key milestones Future potential - areas for further cooperation (In the JCETC concluded in November 2016, both countries have decided to work towards to increase the trade volume to 500 million USD by 2020.)
10 SOME TURKISH COMPANIES IN SRI LANKA
11 COMMERCIAL CAPITAL COLOMBO LAND AREA 65,610 KM 2 POPULATION (2017) 21.4 MILLION GDP (2017) USD 87.2 BILLION STRUCTURE OF ECONOMY (2017) SERVICES 60% INDUSTRY 31% AGRICULTURE 9% COLOMBO
12 STRUCTURE International Trade Exports Imports Market Access Trade Agreements Key Export Products Apparel Rubber Ship Building Gems Ceylon Tea Ceylon Cinnamon Fish Products Others Key Export Services IT/BPO Value Added Logistics Tourism
13 INTERNATIONAL TRADE
14 25 GROWTH IN MERCHANDISE TRADE (US$ Million) 20 20,2 19, ,4 18,9 19,1 20, ,4 10 7,6 11,2 8,1 7 10,2 8,6 10,5 9,7 10,3 11,1 10,5 10,3 11, Exports (in US$ Million) Imports (in US$ Million) Sources: Annual Report (various years),central Bank of Sri Lanka
15 EXPORTS
16 EXPORTS Spices TOP 5 PRODUCTS AS % OF TOTAL EXPORTS (2017) Petroleum Products Rubber Products Tea 4% 4% 7.5% 14% 45% Textiles & Garments Source: Central Bank of Sri Lanka, Annual External Sector Statistics, Department of Census and Statistics National Accounts 2015 Central Bank Annual Report 2017
17 EXPORTS TOP 5 MARKETS % OF TOTAL EXPORTS (2017) USA 26% EU 29% UAE 3% INDIA 6.7% CHINA 4% Source: Central Bank Annual Report 2017
18 EXPORTS LEADING GROWTH SECTORS Annual average % growth ( ) Agricultural Exports Industrial Exports Source: SL Customs Data
19 Statistics on Services provided by Sri Lanka to the World(US$ Million)
20 EXPORTS Insurance TOP 6 SERVICES AS % OF TOTAL SERVICE EXPORTS (2017) Telecommunications Financial & Business IT services 2% 2% 5% 11% 33% 47% Transport Travel Source: Central Bank Annual Reports
21 EXPORTS LEADING SERVICE GROWTH SECTORS Annual average % growth ( ) v v v Source: SL Customs Data
22 IMPORTS
23 IMPORTS Refined petroleum and crude oil Other category (including foods & beverages etc) Textiles & Textiles Articles Gold, Base metals & plastics & Articles 15% 14% 12% 9% 5% TOP 5 IMPORTS AS % OF TOTAL IMPORTS (2017) Chemical products Source: Central Bank of Sri Lanka, Annual External Sector Statistics, Department of Census and Statistics National Accounts 2017 Central Bank Annual Report 2017.
24 IMPORTS TOP 5 MARKETS % OF TOTAL IMPORTS (2017) CHINA 19% EU 8% UAE 6% INDIA 22% Singap ore6% Source: Central Bank Annual Report 2017
25 IMPORTS LEADING GROWTH SECTORS Annual average % growth ( ) Source: SL Customs Data
26 FTAS & PREFERENTIAL ACCESS TO KEY MARKETS
27 AGREEMENTS FOR PREFERENTIAL MARKET ACCESS SIGNED AND IN EFFECT SAFTA (South Asian Free Trade Area- 2006) SAPTA (SAARC Preferential Trading Arrangement- 1993) APTA (Asia Pacific Trade Agreement- 1975) ISFTA (India Sri Lanka Free Trade Agreement-2000) PSFTA ( Pakistan Sri Lanka Free Trade Agreement- 2005) Singapore Sri Lanka Free Trade Agreement -2018
28 AGREEMENTS FOR PREFERENTIAL MARKET ACCESS 1. Indo - Sri Lanka Free Trade Agreement 2. Pakistan Sri Lanka Free Trade Agreement 3. Singapore Sri Lanka Free Trade Agreement 4. Asia Pacific Trade Agreement-China, Bangladesh, India, Lao, Republic of Korea and Sri Lanka. 5. South Asian Free Trade Area (SAFTA)-Afghanistan, Bangladesh, Bhutan, India, Nepal, Maldives, Pakistan and Sri Lanka 6. SAARC Preferential Trading Arrangement (SAPTA) - Bangladesh, Butan, India, Maldives, Nepal, Pakistan and Sri Lanka
29 AGREEMENTS FOR PREFERENTIAL MARKET ACCESS UNDER NEGOTIATIONS Sri Lanka China
30 ARRANGEMENTS FOR PREFERENTIAL MARKET ACCESS Sri Lanka obtained EU GSP Plus facility from European Union in 2016 EU GSP+ Gaining duty free access to the European Union
31 KEY EXPORT PRODUCTS
32 SRI LANKAN APPAREL Producer of Top Quality, Ethical Fashion
33 APPAREL SRI LANKAN APPAREL 27 80% 1 ST 27 ILO Conventions ratified ONLY Asian outsourced apparel manufacturing country to do so 80% of factories meet global environmental & labour standards A pioneer in Green garment manufacturing and home to the world s first Green factory
34 APPAREL SRI LANKAN APPAREL DEDICATED TO QUALITY & ETHICS
35 APPAREL LEADING GLOBAL BRANDS PREFER TO SOURCE FROM SRI LANKA
36 APPAREL BELGIUM GERMANY TOP 5 MARKETS 2017 (AS A % OF TOTAL APPAREL EXPORTS) ITALY UK USA Source: SL Customs Data
37 APPAREL CREATING OUR OWN BRANDS MOVING UP THE VALUE CHAIN
38 COLOMBO FASHION WEEK CFW is a home spun fashion show showcasing local designers and brands It launches local names into the region s fashion scene by provides visibility internationally and locally SWIM WEEK COLOMBO Showcases the best swimwear trends at Asia s first fashion week dedicated to swimwear SWC aims to be the foremost platform for swimwear labels in the region Credits: Colombo Fashion Week
39 RUBBER A High Quality Rubber Manufacturer Credits: Pixabay
40 RUBBER LARGEST EXPORTER of high quality industrial solid tyres in the world Credits: Globa
41 RUBBER MANUFACTURING FOR INTERNATIONAL BRANDS
42 RUBBER TOP 5 RUBBER EXPORT PRODUCTS 2017 RUBBER GLOVES (NON-SURGICAL) NEW PNEUMATIC TYRES SURGICAL GLOVES NATURAL RUBBER SOLID RUBBER TYRES Source: Export Development Board
43 RUBBER TOP 5 MARKETS AS % OF TOTAL RUBBER EXPORTS (2017) 31% United States of America 4% Canada 5% Italy 6% Belgium 12% Germany Source: SL Customs Data 2017
44 SHIP BUILDING 42 Years of Experience in Ship Building Credits: Colombo Dockyard PLC
45 SHIP BUILDING Strategically located in Colombo - a hub for all major shipping routes connecting the East and West Able to manufacture highly specialised vessels for a variety of specifications I Capable of handling both dry and afloat operations Credits: Colombo Dockyard PLC
46 SRI LANKAN GEMS A Rich Natural Cradle For Gemstones Credits: Gem & Jewellery Authority
47 GEMS Home to World s largest Blue Sapphire World s greatest concentration of gem stones and the choicest high-value single stones World s choice for calibrated and fancy cut gemstones and quality service cutting Source: Gem and Jewellery Authority
48 GEMS DID YOU KNOW The engagement ring of Princess Dianna and Kate Middleton is adorned with a Ceylon Blue Sapphire Source: Gem and Jewellery Authority
49 GEMS MAJOR EXPORT MARKETS SRI LANKAN GEMS Hong-Kong USA Switzerland Thailand UAE France India Germany DIAMONDS Belgium Israel Thailand United Arab Emirates Switzerland China Hong Kong India JEWELLERY Switzerland United States Hong Kong Germany UAE Japan
50 CEYLON TEA A beloved brand worldwide
51 CEYLON TEA 2 nd largest exporter in the world 3 rd largest producer in the world World s largest producer of orthodox tea Largest and oldest tea auction in the world Committed to maintaining the highest quality Source: Sri Lanka Tea Board
52 CEYLON TEA The only tea-producing country where all tea grown is 100% ozone-friendly Source: Sri Lanka Tea Board
53 CEYLON TEA The Lion Logo is awarded and stamped on tea that; It guarantee for 100% Pure Ceylon Tea, packed in Sri Lanka This symbol is now synonymous with the highest quality tea in the world Source: Sri Lanka Tea Board
54 CEYLON TEA VALUE ADDED TEA & TEA BASED PRODUCTS Flavoured tea Tea based soap Instant tea Tea based bath gel Iced tea Tea based shampoo Ready-to-drink tea Tea based cosmetics Source: SPA Ceylon
55 CEYLON TEA 12% Turkey TOP 5 EXPORT MARKETS AS % OF TOTAL TEA EXPORTS (2017) 5% United Arab Emirates 11.5% Russia 10.6% Iran 9.1% Iraq Source : Sri Lanka Tea Board
56 CEYLON CINNAMON Supplies over 90% of world demand Credits: Vicente Villamón
57 CINNAMON Ceylon cinnamon is indigenous to Sri Lanka World s largest exporter of True Cinnamon Cinnamon quill preparation is an art and skill unique to Sri Lanka Committed to maintain highest quality
58 CINNAMON DID YOU KNOW True Cinnamon is loaded with antioxidants which - protects body - reduces risk of cancer - improves overall health Credits: Cinnamon Vogue
59 CINNAMON Pure Ceylon Cinnamon Lion Symbol is awarded only to exporters who meet highest specified quality standards
60 CINNAMON TOP 5 EXPORT MARKETS AS % OF TOTAL CINNAMON EXPORTS (2017) 4% Guatemala 5.4% Columbia 9% Peru 13% U.S.A 45% Mexico Source: Annual Report (2015),Central Bank of Sri Lanka, Statistical Appendix
61 FISH EXPORTS Quality Fish & Fish Based Products
62 Quality tuna exporter serving yellowfin and big eye species to the world Other varieties: lobsters, crabs, squid, cuttlefish, shark fin, beche-de-mer and fish maws 32 EU approved processing plants in Sri Lanka Source: Sri Lanka Export Development Board
63 FISH PRODUCTS TOP 5 EXPORT MARKETS FOR FISH AS % OF TOTAL FISH EXPORTS (2017) 26% United States of America 5.7% France 6.3% Italy 6.5% Netherlands 8% Japan Source: Sri Lanka Export Development Board
64 OTHER Manufactured Exports
65 CERAMIC PRODUCTS ELECTRICAL & ELECTRONIC PRODUCTS LIGHT ENGINEERING FURNITURE HERBAL & AYURVEDA PRODUCTS FOOD AND BEVERAGES PLASTIC PRODUCTS FOOTWEAR AND LEATHER PRODUCTS GIFTWARE AND TOYS HANDLOOM PRODUCTS
66 OTHER Agricultural Exports
67 Pepper Clove Cardamom Nutmeg Ginger Coconut Mace Strawberry Gherkin Pineapple
68 KEY SERVICE EXPORTS
69 IT/BPO Your Next Information Technology & Business Process Management Destination
70 [IT-BPO VIDEO]
71 IT/BPO
72 IT/BPO Why Sri Lanka? Cost advantages Skilled labour force Global recognition English communication skills
73 IT/BPO Sri Lanka is, in many ways a hidden gem for outsourcing. It is uniquely positioned to offer companies highly skilled talent and a strong business environment at very competitive costs. A.T. Kearney
74 IT/BPO ICT/BPO: CALLING SRI LANKA HOME
75 VALUE ADDED LOGISTIC SERVICES Strategically located to become a regional logistics hub Credits: Jgmorard
76 LOGISTICS CLOSEST PORT TO MAIN SHIPPING ROUTES IN SOUTH ASIA SHORTEST DEVIATION HOURS FROM MAJOR MARITIME ROUTE
77 LOGISTICS Strategic location allows feeder networks from Colombo Port to deliver faster to South Asia 30% OF INDIA S TRANSSHIPMENTS ARE THROUGH COLOMBO PORT
78 LOGISTICS LEADING PORT IN THE REGION COLOMBO PORT 28 TH ONLY busiest port in the world 1 ST Deep Water Commercial Port in South Asia in South Asia in % growth in throughput ( ) 4 TH in the World Credits: Dananjaya Chathuranga Photography
79 LOGISTICS AIR CONNECTIVITY Travel to and from over 100 destinations from Sri Lanka Access India with over 20 flights daily Source: Civil Aviation Authority Credits: Creative Commons
80 TOURISM A Place to Visit and a Sector to Invest In Credits: Lakdasun
81 Credits: Eleleleven
82 Sun and sand all year round Beaches 64 parks and sanctuaries Wildlife Year round festivities Festivals The healing science Ayurveda Hill Country Waterfalls and nature treks UNESCO Sites 8 World Heritage Sites Adventure Water sports, hiking and camping Culture Eastern spirituality Credits: Sri Lanka Tourism Bureau
83 TOURISM A FAST GROWING INDUSTRY 162% Tourist Arrivals Growth ( ) 413% Tourist Earning Growth USD ( ) 143% Expected Growth in Hotel Capacity ( ) Source: Central Bank Annual Report 2017, A review of Sri Lanka s Hospitality Industry 2016, Jones Llang Lalle
84 TOURISM BIG BRANDS GEARING FOR VISITORS
85 Sri Lanka s location makes it the ideal trading hub in South Asia Come to Colombo to trade with Sri Lanka and to trade from Sri Lanka with the rest of Asia
86 INVESTING IN SRI LANKA
87 WHY SRI LANKA?
88 1 SRI LANKA CONNECTS
89 1 At the centre of the world s busiest sea routes Source: Sri Lanka Ports Authority
90 1 Region s shortest deviation from maritime route 65h 90h 100h 31h 35h 20h 8h Number of Hours Source: Sri Lanka Ports Authority
91 1 Fast connectivity to key markets in South Asia Map 1 Map 2 Source: Sri Lanka Ports Authority
92 1 Air connectivity to the world Colombo is connected to over 100 destinations by air Over 20 flights daily to fast growing India Source: Civil Aviation Authority of Sri Lanka
93 2 INFRASTRUCTUR E AND ACCESS
94 2 Best in South Asia for Overall Quality of National Infrastructure Overall Quality of National Infrastructure 2018 (rank out of 140 countries) PHILIPPINES VIETNAM BANGLADESH 112 CAMBODIA THAILAND INDIA 65 SRI LANKA MALAYSIA 32 Source: Global Competitiveness Report 2018, World Economic Forum
95 2 Port Infrastructure Only 10 nautical miles off the world s busiest East-West shipping lane KKS POINT PEDRO 28 th busiest in the world TRINCOMALE E One of the largest natural deep water harbours in the world SAGT terminal: 4 th highest in productivity in the world COLOMBO GALLE OLUVIL HAMBANTHOT A Only deep water container port in South Asia
96 2 Air connectivity 2 International Airports 18 Domestic Airports Only 30 minutes from commercial capital 6 th fastest growing airport in the region Bandaranaike International Airport (BIA) BIA Adding terminals and increasing capacity by 50% MATTALA
97 Bangladesh Sri Lanka India Philippines Viet Nam Malaysia Thailand Indonesia Cambodia 2 Road connectivity Connecting Colombo with South, North and the Centre by road 1,8 1,8 1,6 ROAD DENSITY [per Km 2 ] EXPRESSWAYS CURRENT Southern Expressway Colombo Outer Circular Highway 0,7 0,5 0,5 0,4 0,3 0,2 Colombo- Katunayake Expressway (Airport Expressway) UNDER CONSTRUCTION Central Expressway Northern Expressway Source: Sri Lanka Road Development Authority 2016, Ministry of Highways and Road Development Sri Lanka, UNESCAP Statistical Database - (20
98 2 Better access to utilities & services ACCESS TO ELECTRICITY (Subscriptions per 100 households) MOBILE PENETRATION (Subscriptions per 100 persons) INTERNET PENETRATION (Users per 100 persons) Sri Lanka India, Pakistan, Bangladesh South Asia ACCESS TO FINANCE (Number of bank branches per 100,000 adults) Source: Road Development Authority, Economic and Social Statistics 2015, Central Bank of Sri Lanka, World Bank Database 2014/12, Household Income and Expenditure Survey 2012/13 Department of Census and Statistics 2012, UNDP Human Development Report 2012
99 2 State of the art broadband technology NETWORKED READINESS INDEX (Rank out of 139 countries) MALAYSIA Connected to 4 undersea optical fiber links THAILAND VIETNAM SRI LANKA 77 PHILIPPINES 91 INDIA BANGLADESH CAMBODIA Source: Global Information Technology Report 2015, World Economic Forum, 2015/16.
100 3 EDUCATED WORKFORCE
101 4 Human capital on par with East Asia HUMAN CAPITAL INDEX (Rank out of 140 countries) 2018 THAILAND MALAYSIA 46 SRI LANKA 93.1% Adult Literacy (2017) Ranks 23 rd in the World for the Quality of Primary Schools & Education System VIETNAM, Source:.World Economic Forum, 2018; Annual Report, Central Bank, 2017
102 4 Educated workforce 61% of the population aged 25 yrs and above has obtained a minimum of secondary education (2016) Mean years of schooling: 10.8 years - highest in South Asia (2016) Number of university graduates doubled in the last 5 years ( ) % increase in household expenditure in education Source:.Household Expenditure Survey 2014/2015 University Grants Commission, UNDP, Department of Census and Statistics
103 Highest number of CIMA qualified professionals,out side UK Sri Lanka s Moratuwa University ranked 1 st for 9 consecutive years by Google Summer of Code Source: Human Development Report, UNDP, CIMA. Annual Report, Central Bank, 2017.
104 4 QUALITY OF LIFE
105 5 Better standard of living Life Expectancy at Birth (in years) 2017 Vietnam 75.8 Sri Lanka Malaysia 74.6 Thailand 74.2 Bangladesh 71.2 Philippines 68.1 Cambodia 67.8 India 67.7 Maternal Mortality (deaths per 100,000 live births) 2017 Thailand 20 Sri Lanka 30 Malaysia 40 Vietnam 54 Philippines 114 Cambodia 161 India 174 Bangladesh 176 Source: World Development Indicators, World Bank database, 2017,
106 5 Better standard of living Air pollution - Mean Annual Exposure (micrograms per cubic meter) 2016 Philippines 9 Malaysia 14 Sri Lanka 17 Cambodia 20 Thailand 22 Vietnam 25 India 47 Bangladesh 48 Gender Inequality Index (score 1 = inequal, 0 = equal) 2017 Malaysia Vietnam Sri Lanka Thailand Philippines 0.42 Cambodia Bangladesh India Source: World Development Indicators, World Bank database, 2015, Gender Inequality Index, UNDP, 2014.
107 5 AN OPEN ECONOMY
108 6 Open to foreign investments 1 st country to liberalise its economy in South Asia (1977) Foreign ownership Exchange control Taxation policies 100% foreign ownership allowed with a few exceptions 100% repatriation of profits All current account transactions liberalised Capital account transactions partially liberalised Double Tax Avoidance Agreements with 44 countries Source: BOI, Inland Revenue Department
109 6 Investor protection is assured STRENGTH OF INVESTOR PROTECTION (Rank out of 140 countries) 2017 THAILAND 12 INDIA 34 CAMBODIA MALAYSIA BANGLADESH SRI LANKA Safety of foreign investment legally guaranteed 28 th in the world and 1 st in South Asia in minority shareholder interest protection VIETNAM PHILIPPINES Bilateral Investment Protection Agreements with 28 countries Source: Doing Business Index 2017
110 6 TECHNOLOGY & INNOVATION
111 7 Regional leader in business innovation Global Innovation Index (2015) BUSINESS INNOVATION AND SOPHISTICATION (Rank out of 140 countries) 2015/2016 MALAYSIA 17 2 nd highest climber (up by 20 ranks) THAILAND 46 VIETNAM SRI LANKA PHILIPPINES 3 rd best performing country in Central and South Asia BANGLADESH INDIA CAMBODIA Source: Global Innovation Index 2015, World Economic Forum, 2015/16, Global Competitiveness Report 2015/2016
112 DID YOU KNOW Sri Lanka is developing an all electric sports car capable of reaching 0 to 60mph in 3.6 seconds Read the BBC article on Vega athttp://
113 DID YOU KNOW D-Mora P1 developed by University of Moratuwa won three awards at the world s biggest school motorracing competition Source: Lanka Business Online
114 WHERE TO INVEST
115 LEADING INVESTMENT SECTORS AND INVESTORS TOP 10 SECTORS TO ATTRACT FDIS IN 2018 (Jan Jun) Chemical, Coal, Petroleum Port Container Terminals Non* Metallic Mineral Products Rubber Products Telephone & Telecommunications Other Manufacturing Products IT & BPO Housing Property Development Textile, Apparel& Leather Products Hotel & Restaurants Source: BOI, 2018
116 LEADING INVESTMENT SECTORS AND INVESTORS TOP 10 COUNTRIES (2018 Jan to Jun) Thailand China UAE Spain India United Kingdom Netherlands Hong Kong Sweden Malaysia Source: BOI, 2018
117 FOR MORE INFORMATION Embassy of Sri Lanka, Ankara 41, Kirlangic Sokak, G.O.P. Ankara (+90) /1023 Credits: ChamalN Creative Commons
118 Image Sourcing Slide 1: Creative Commons Slide 28: Aviraté Slide 36: Colombo Fashion Week Slide 37: Pixabay, Slide 38: Global Rubber Industries Slide 42: Colombo Dockyards PLC Slide 43: Colombo Dockyards PLC Slide 44: National Gem & Jewellery Authority Slide 45: National Gem & Jewellery Authority Slide 46: National Gem & Jewellery Authority Slide 48: Export Development Board Slide 49: Sri Lanka Tea Board Slide 50: Sri Lanka Tea Board Slide 51: Sri Lanka Tea Board Slide 52: SPA Ceylon Slide 54: Vicente Villamón, Slide 55: Pixabay, Slide 56: Cinnamon Vogue Slide 57: Pure Ceylon Cinnamon Slide 59: Pixabay, Slide 60: Export Development Board
119 Image Sourcing Slide 62: Slide 63: Export Development Board, Pixabay, Export Development Board, Export Development Board, SPA Ceylon Export Development Board, Export Development Board, Export Development Board, Export Development Board, Export Development Board, Slide 64:
120 Image Sourcing Slide 65: Export Development Board, Wikimedia Commons, Pixabay, Pixabay, Pixabay, Pixabay, Wikipedia: %A6%BF%E0%A6%A4%E0%A7%8D%E0%A6%B0%E0%A6%BF).JPG Jagro Pvt Ltd Pixabay, Slide 67: Slide 68: Slide 69: Slide 73: Jgmorard Slide 76: Dananjaya Chathuranga Photography Slide 77: Civil Aviation Authority, Slide 83: Lakdasun Slide 84: Eleleleven
121 Image Sourcing Slide 85: Pixabay, Sri Lanka Tourism Board, Sri Lanka Tourism Board Sri Lanka Tourism Board, Sri Lanka Tourism Board, Sri Lanka Tourism Board, Sri Lanka Tourism Board, Slide 86: Slide 89: ChamalN Creative Commons
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