TRADING WITH SRI LANKA
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- Beatrice Cummings
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1 TRADING WITH SRI LANKA
2 Embassy of Sri Lanka, Ankara, Turkey
3 BILATERAL RELATIONS
4 SRI LANKA AND TURKEY History of diplomatic relations Sri Lanka and Turkey established DPL relations immediately after Sri Lanka s independence in 1948 Bilateral Trade Sri Lanka s Exports to Turkey (2017) : million USD / + 121,59% increase from 105 million USD (2016) Sri Lanka s Imports from Turkey (2017) : million USD
5 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.)
6 SOME TURKISH COMPANIES IN SRI LANKA
7 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
8 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
9 INTERNATIONAL TRADE
10 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
11 EXPORTS
12 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
13 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
14 EXPORTS LEADING GROWTH SECTORS Annual average % growth ( ) Agricultural Exports Industrial Exports Source: SL Customs Data
15 Statistics on Services provided by Sri Lanka to the World(US$ Million)
16 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
17 EXPORTS LEADING SERVICE GROWTH SECTORS Annual average % growth ( ) v v v Source: SL Customs Data
18 IMPORTS
19 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.
20 IMPORTS TOP 5 MARKETS % OF TOTAL IMPORTS (2017) CHINA 19% EU 8% UAE 6% INDIA 22% Singap ore6% Source: Central Bank Annual Report 2017
21 IMPORTS LEADING GROWTH SECTORS Annual average % growth ( ) Source: SL Customs Data
22 FTAS & PREFERENTIAL ACCESS TO KEY MARKETS
23 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
24 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
25 AGREEMENTS FOR PREFERENTIAL MARKET ACCESS UNDER NEGOTIATIONS Sri Lanka China
26 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
27 KEY EXPORT PRODUCTS
28 SRI LANKAN APPAREL Producer of Top Quality, Ethical Fashion
29 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
30 APPAREL SRI LANKAN APPAREL DEDICATED TO QUALITY & ETHICS
31 APPAREL LEADING GLOBAL BRANDS PREFER TO SOURCE FROM SRI LANKA
32 APPAREL 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% Source: SL Customs 50% Data BELGIUM GERMANY TOP 5 MARKETS 2017 (AS A % OF TOTAL APPAREL EXPORTS) ITALY UK USA
33 APPAREL CREATING OUR OWN BRANDS MOVING UP THE VALUE CHAIN
34 COLOMBO FASHION WEEK SWIM WEEK COLOMBO CFW is a home spun fashion show showcasing local designers and brands Showcases the best swimwear trends at Asia s first fashion week dedicated to swimwear It launches local names into the region s fashion scene by provides visibility internationally and locally SWC aims to be the foremost platform for swimwear labels in the region Credits: Colombo Fashion Week
35 RUBBER A High Quality Rubber Manufacturer Credits: Pixabay
36 RUBBER LARGEST EXPORTER of high quality industrial solid tyres in the world Credits: Globa
37 RUBBER MANUFACTURING FOR INTERNATIONAL BRANDS
38 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
39 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
40 SHIP BUILDING 42 Years of Experience in Ship Building Credits: Colombo Dockyard PLC
41 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
42 SRI LANKAN GEMS A Rich Natural Cradle For Gemstones Credits: Gem & Jewellery Authority
43 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
44 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
45 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
46 CEYLON TEA A beloved brand worldwide
47 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
48 CEYLON TEA The only tea-producing country where all tea grown is 100% ozone-friendly Source: Sri Lanka Tea Board
49 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
50 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
51 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
52 CEYLON CINNAMON Supplies over 90% of world demand Credits: Vicente Villamón
53 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
54 CINNAMON DID YOU KNOW True Cinnamon is loaded with antioxidants which - protects body - reduces risk of cancer - improves overall health Credits: Cinnamon Vogue
55 CINNAMON Pure Ceylon Cinnamon Lion Symbol is awarded only to exporters who meet highest specified quality standards
56 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
57 FISH EXPORTS Quality Fish & Fish Based Products
58 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
59 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
60 OTHER Manufactured Exports
61 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
62 OTHER Agricultural Exports
63 Pepper Clove Cardamom Nutmeg Ginger Coconut Mace Strawberry Gherkin Pineapple
64 KEY SERVICE EXPORTS
65 IT/BPO Your Next Information Technology & Business Process Management Destination
66 [IT-BPO VIDEO]
67 IT/BPO
68 IT/BPO Why Sri Lanka? Cost advantages Skilled labour force Global recognition English communication skills
69 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
70 IT/BPO ICT/BPO: CALLING SRI LANKA HOME
71 VALUE ADDED LOGISTIC SERVICES Strategically located to become a regional logistics hub Credits: Jgmorard
72 LOGISTICS CLOSEST PORT TO MAIN SHIPPING ROUTES IN SOUTH ASIA SHORTEST DEVIATION HOURS FROM MAJOR MARITIME ROUTE
73 LOGISTICS Strategic location allows feeder networks from Colombo Port to deliver faster to South Asia 30% OF INDIA S TRANSSHIPMENTS ARE THROUGH COLOMBO PORT
74 LOGISTICS LEADING PORT IN THE REGION COLOMBO PORT 1 ST in South Asia ONLY Deep Water Commercial Port in South Asia in % growth in throughput ( ) 28 TH busiest port in the world 4 TH in the World Credits: Dananjaya Chathuranga Photography
75 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
76 Source: Ease of Doing Business Index, World Bank, LOGISTICS LOW COST OF TRADING ACROSS BORDERS Border Compliance COST (USD) Documentary Compliance 653 SOUTH ASIA 349 SOUTH ASIA 283 SRI LANKA EAST ASIA & PACIFIC 396 SOUTH ASIA EAST ASIA & PACIFIC EAST ASIA & PACIFIC EAST ASIA & PACIFIC SRI LANKA SRI LANKA SOUTH ASIA SRI LANKA 58 0 IMPORT EXPORT IMPORT EXPORT
77 Source: Ease of Doing Business Index, World Bank, LOGISTICS LESS TIME TO TRADE ACROSS BORDERS Border Compliance TIME (HOURS) Documentary Compliance 114 SOUTH ASIA 108 SOUTH ASIA SOUTH ASIA 80 SOUTH ASIA 61 EAST ASIA & PACIFIC SRI LANKA EAST ASIA & PACIFIC SRI LANKA 76 EAST ASIA & PACIFIC EAST ASIA & PACIFIC SRI LANKA SRI LANKA IMPORT EXPORT IMPORT EXPORT
78 LOGISTICS ENABLING LEGISLATION Commercial hub regulation No. 1 of 2013 Creating free ports and bonded areas geographically inside Sri Lanka but largely considered outside Customs territory Permitted activities Entrepôt trade Off-shore businesses Front end services to overseas clients Operations of headquarters Value added logistics services Source: Board of Investment
79 Declared Free Ports & Bonded Areas Declared Free Port Current EPZs Declared Bonded Area Specified Bonded Areas for projects engaged in entrepôt trade with approval for manufacturing or assembling a product: Colombo Port & Hambanthota Port Katunayake EPZ & Koggala EPZ Mattala Rajapaksha International Airport & Mirijawila EPZ Source: World Development Indicators, World Bank, Central Bank of Sri Lanka Annual Report
80
81 LOGISTICS FAST GROWING AND COST EFFECTIVE Compounded Annual Growth Rate for Sri Lanka tops the 5 fastest growing international air freight markets Sri Lanka 8.7% Vietnam 7.4% Brazil 6.3% India 6.0% Egypt 5.9% World 3.0% Source: International Air Transport Association
82 TOURISM A Place to Visit and a Sector to Invest In Credits: Lakdasun
83 Credits: Eleleleven
84 Sun and sand all year round 64 parks and sanctuaries Year round festivities The healing science Hill Country UNESCO Sites Adventure Culture Waterfalls and nature treks 8 World Heritage Sites Water sports, hiking and camping Eastern spirituality Beaches Wildlife Festivals Ayurveda Credits: Sri Lanka Tourism Bureau
85 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
86 TOURISM BIG BRANDS GEARING FOR VISITORS
87 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
88 FOR MORE INFORMATION Embassy of Sri Lanka, Ankara 41, Kirlangic Sokak, G.O.P. Ankara (+90) /1023 Credits: ChamalN Creative Commons
89 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
90 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:
91 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
92 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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