TRADING WITH SRI LANKA

TRADING WITH SRI LANKA

Embassy of Sri Lanka, Ankara, Turkey

BILATERAL RELATIONS

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) : 232.68 million USD / + 121,59% increase from 105 million USD (2016) Sri Lanka s Imports from Turkey (2017) : 70.94 million USD

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.)

SOME TURKISH COMPANIES IN SRI LANKA

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

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

INTERNATIONAL TRADE

25 GROWTH IN MERCHANDISE TRADE (US$ Million) 20 20,2 19,1 18 19,4 18,9 19,1 20,9 15 14 13,4 10 7,6 11,2 8,1 7 10,2 8,6 10,5 9,7 10,3 11,1 10,5 10,3 11,3 5 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Exports (in US$ Million) Imports (in US$ Million) Sources: Annual Report (various years),central Bank of Sri Lanka

EXPORTS

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

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

EXPORTS LEADING GROWTH SECTORS Annual average % growth (2012 2017) Agricultural Exports Industrial Exports Source: SL Customs Data 201-2017

Statistics on Services provided by Sri Lanka to the World(US$ Million) 9000 8000 7000 6397 7138 7760 6000 5605 5000 4685 4000 3000 2000 2004 1892 2474 3084 3800 1000 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

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

EXPORTS LEADING SERVICE GROWTH SECTORS Annual average % growth (2012 2017) v v v Source: SL Customs Data 2012-2017

IMPORTS

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.

IMPORTS TOP 5 MARKETS % OF TOTAL IMPORTS (2017) CHINA 19% EU 8% UAE 6% INDIA 22% Singap ore6% Source: Central Bank Annual Report 2017

IMPORTS LEADING GROWTH SECTORS Annual average % growth (2012 2017) Source: SL Customs Data 2015-2017

FTAS & PREFERENTIAL ACCESS TO KEY MARKETS

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

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

AGREEMENTS FOR PREFERENTIAL MARKET ACCESS UNDER NEGOTIATIONS Sri Lanka China

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

KEY EXPORT PRODUCTS

SRI LANKAN APPAREL Producer of Top Quality, Ethical Fashion

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

APPAREL SRI LANKAN APPAREL DEDICATED TO QUALITY & ETHICS

APPAREL LEADING GLOBAL BRANDS PREFER TO SOURCE FROM SRI LANKA

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

APPAREL CREATING OUR OWN BRANDS MOVING UP THE VALUE CHAIN

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

RUBBER A High Quality Rubber Manufacturer Credits: Pixabay

RUBBER LARGEST EXPORTER of high quality industrial solid tyres in the world Credits: Globa

RUBBER MANUFACTURING FOR INTERNATIONAL BRANDS

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

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

SHIP BUILDING 42 Years of Experience in Ship Building Credits: Colombo Dockyard PLC

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

SRI LANKAN GEMS A Rich Natural Cradle For Gemstones Credits: Gem & Jewellery Authority

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

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

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

CEYLON TEA A beloved brand worldwide

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

CEYLON TEA The only tea-producing country where all tea grown is 100% ozone-friendly Source: Sri Lanka Tea Board

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

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

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

CEYLON CINNAMON Supplies over 90% of world demand Credits: Vicente Villamón

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

CINNAMON DID YOU KNOW True Cinnamon is loaded with antioxidants which - protects body - reduces risk of cancer - improves overall health Credits: Cinnamon Vogue

CINNAMON Pure Ceylon Cinnamon Lion Symbol is awarded only to exporters who meet highest specified quality standards

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

FISH EXPORTS Quality Fish & Fish Based Products

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

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

OTHER Manufactured Exports

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

OTHER Agricultural Exports

Pepper Clove Cardamom Nutmeg Ginger Coconut Mace Strawberry Gherkin Pineapple

KEY SERVICE EXPORTS

IT/BPO Your Next Information Technology & Business Process Management Destination

[IT-BPO VIDEO]

IT/BPO

IT/BPO Why Sri Lanka? Cost advantages Skilled labour force Global recognition English communication skills

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

IT/BPO ICT/BPO: CALLING SRI LANKA HOME

VALUE ADDED LOGISTIC SERVICES Strategically located to become a regional logistics hub Credits: Jgmorard

LOGISTICS CLOSEST PORT TO MAIN SHIPPING ROUTES IN SOUTH ASIA SHORTEST DEVIATION HOURS FROM MAJOR MARITIME ROUTE

LOGISTICS Strategic location allows feeder networks from Colombo Port to deliver faster to South Asia 30% OF INDIA S TRANSSHIPMENTS ARE THROUGH COLOMBO PORT

LOGISTICS LEADING PORT IN THE REGION COLOMBO PORT 1 ST in South Asia ONLY Deep Water Commercial Port in South Asia in 2015 27% growth in throughput (2010 2015) 28 TH busiest port in the world 4 TH in the World Credits: Dananjaya Chathuranga Photography

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

Source: Ease of Doing Business Index, World Bank, 2016. 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 396 421 EAST ASIA & PACIFIC EAST ASIA & PACIFIC 167 148 EAST ASIA & PACIFIC SRI LANKA 396 300 SRI LANKA SOUTH ASIA 167 200 SRI LANKA 58 0 IMPORT EXPORT IMPORT EXPORT

Source: Ease of Doing Business Index, World Bank, 2016. 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 51 72 59 SRI LANKA EAST ASIA & PACIFIC SRI LANKA 76 EAST ASIA & PACIFIC 74 70 58 EAST ASIA & PACIFIC SRI LANKA SRI LANKA 43 0 0 IMPORT EXPORT IMPORT EXPORT

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

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

LOGISTICS FAST GROWING AND COST EFFECTIVE Compounded Annual Growth Rate for 2011-2016 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

TOURISM A Place to Visit and a Sector to Invest In Credits: Lakdasun

Credits: Eleleleven

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

TOURISM A FAST GROWING INDUSTRY 162% Tourist Arrivals Growth (2012 2017) 413% Tourist Earning Growth USD (2012 2017) 143% Expected Growth in Hotel Capacity (2016 2020) Source: Central Bank Annual Report 2017, A review of Sri Lanka s Hospitality Industry 2016, Jones Llang Lalle

TOURISM BIG BRANDS GEARING FOR VISITORS

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

FOR MORE INFORMATION Embassy of Sri Lanka, Ankara 41, Kirlangic Sokak, G.O.P. Ankara slemb.ankara@mfa.gov.lk (+90)3124271021/1023 Credits: ChamalN Creative Commons

Image Sourcing Slide 1: Creative Commons Slide 28: Aviraté Slide 36: Colombo Fashion Week Slide 37: Pixabay, https://pixabay.com/en/tires-wheel-rubber-1139768/ 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, https://www.flickr.com/photos/villamon/4860921496 Slide 55: Pixabay, https://pixabay.com/en/spice-cinnamon-cinnamon-stick-1027958/ Slide 56: Cinnamon Vogue Slide 57: Pure Ceylon Cinnamon Slide 59: Pixabay, https://pixabay.com/en/salmon-unlimited-refills-fresh-fish-1255122/ Slide 60: Export Development Board

Image Sourcing Slide 62: Slide 63: Export Development Board, http://www.srilankabusiness.com/ceramic-and-porcelain/why-srilankan-ceramic-and-porcelain-products.html Pixabay, https://pixabay.com/en/mother-board-electronics-computer-581597/ Export Development Board, http://www.srilankabusiness.com/light-engineering/why-sri-lankanlight-engineering-products.html Export Development Board, http://www.srilankabusiness.com/wooden/sri-lankan-woodenproducts.html SPA Ceylon Export Development Board, http://www.srilankabusiness.com/handloom/ Export Development Board, http://www.srilankabusiness.com/handloom/sri-lankan-handloomproducts.html Export Development Board, http://www.srilankabusiness.com/footwear-and-leather/sri-lankanfootwear-and-leather-products.html Export Development Board, http://www.srilankabusiness.com/plastic/why-sri-lankan-plasticproducts.html Export Development Board, http://www.srilankabusiness.com/food-and-beverages/ Slide 64: http://www.publicdomainpictures.net/view-image.php?image=15385

Image Sourcing Slide 65: Export Development Board, http://www.srilankabusiness.com/spices/ Wikimedia Commons, https://commons.wikimedia.org/wiki/file:cloves.jpg Pixabay, https://pixabay.com/en/cardamom-elaichi-green-processed-166833/ Pixabay, https://pixabay.com/en/india-coconut-muskat-nutmeg-1089390/ Pixabay, https://pixabay.com/en/root-ginger-useful-617409/ Pixabay, https://pixabay.com/en/coconut-nut-shell-brown-pulp-1501392/ Wikipedia: https://en.wikipedia.org/wiki/nutmeg#/media/file:mace_(%e0%a6%9c%e0%a6%af%e0%a6%bc%e0 %A6%BF%E0%A6%A4%E0%A7%8D%E0%A6%B0%E0%A6%BF).JPG Jagro Pvt Ltd Pixabay, https://pixabay.com/en/cucumbers-salad-green-eat-healthy-1495836/ Slide 67: http://www.dome.gov.lk/web/images/images/2013-05-21-06-49-15financial-services.jpg Slide 68: http://srilankaitbpm.com/ Slide 69:http://www.srilankaservicexport.com/ictbpm/ict5.jpg Slide 73: Jgmorard Slide 76: Dananjaya Chathuranga Photography Slide 77: Civil Aviation Authority, https://commons.wikimedia.org/wiki/file:113ad_- _SriLankan_Airlines_Airbus_A330-243,_4R-ALF@FRA,20.10.2000_-_Flickr_-_Aero_Icarus.jpg Slide 83: Lakdasun Slide 84: Eleleleven

Image Sourcing Slide 85: http://www.lakdasun.org/pages/sri_lanka_blue_sky_clouds_beach_patanangala_yala.htm Pixabay, https://pixabay.com/en/panther-of-sri-lanka-panther-1008739/ Sri Lanka Tourism Board, https://www.flickr.com/photos/srilankatourism/2572670238/ Sri Lanka Tourism Board Sri Lanka Tourism Board, https://www.flickr.com/photos/srilankatourism/2852073751/ Sri Lanka Tourism Board, https://www.flickr.com/photos/srilankatourism/4141102572/ Sri Lanka Tourism Board, https://www.flickr.com/photos/srilankatourism/4136920043/ Sri Lanka Tourism Board, https://www.flickr.com/photos/srilankatourism/3060080099/ Slide 86: http://www.lakdasun.org/wallpapers/j0067948.jpg Slide 89: ChamalN Creative Commons