Third Exporters’ Forum forges ahead

The third in the revived Exporters’ Forum series in Sri Lanka’s new thrust concluded successfully on 10 July in Colombo with the community praising the effort for ‘active follow up’ on problems faced by Sri Lankan exporters.

“Today we successfully cleared Rs. 15.5 m refunds which were due for exporters and also managed to resolve a number of teething issues as promised,” announced an upbeat Minister of Industry and Commerce Rishad Bathiudeen, in the aftermath of the successful conclusion of the Exporters’ Forum held at the auditorium of the Export Development Board.

Minister Bathiudeen, along with the top officials of his Ministry, personally chaired the lengthy and interactive session.

Showing flexibility and going beyond its agenda, the forum also took into consideration, in addition to the tabled submissions, concerns of three additional submissions. The forum is the successor to the 2 February session.

Strong presence of the private sector, exporters, chambers, various advisory committees and top Government Ministries and departments including Sri Lanka Food Processors Association, Floriculture Produce Exporters’ Association, the Ceylon Chamber of Commerce, Fruit & Vegetable Exporters’ Association, Live Tropical Fish Exporters Association, the Advisory Committee on Ceramics & Porcelain, Association of Manufacturers and Exporters of Rubber Products, the National Chamber of Exporters, Tea Exporters Association, Ministries of Finance & Planning, External Affairs, Economic Development, the BOI, Customs, Department of Inland Revenue, the Electricity Board, Ministry of Power and Energy, Ministry of Civil Aviation, SriLankan Airlines, and the Ministry of Labour.

Among the private sector firms at the third forum were Haycarb PLC, Finlays Colombo Ltd., Chevron Lubricants Lanka PLC, Akbar Broithers, I-E International Pvt. Ltd., Barbara Sansoni Exports Ltd., EAM Maliban Textiles Pvt Ltd., Samson Rubber Products, NM Mohamed Mohideen, BTC Italia, Anverally & Sons Ltd.,  SR Metals, Ally Weerasinghe, Rainbow Foods, Rainbow Engineering & Supplies, ATG Gloves Ltd., Agro Technica, Finpack Industries Ltd., Timex Garments Ltd., Chelsea Enamels, CTP Pre-Pack Exports Ltd., Alchemy Heavy Metals, Regency Teas Pvt. Ltd. and Global Sea Foods Ltd.

As at the second forum on 2 February, the majority of concerns raised by Sri Lanka’s exports community at the 10 July session too were cleared on the spot, with the few pending issues being immediately forwarded to relevant stakeholders present for further action.

Commencing the forum, Minister Bathiudeen announced: “I welcome you all to the third Exporters’ Forum at a time our nation is looking forward to an ambitious export target of US$ 20 billion export revenue by 2020 and the World Bank also ranking Sri Lanka in the 81st position in its Logistics Ranking for 2012, all of which lend sustainable support to doubling of our per capita income as envisioned, under the ‘Mahinda Chinthana’ policy framework of President Mahinda Rajapaksa.

“Despite the World Trade Organization forecasting only 5.8% world export growth for 2011, Sri Lanka’s export sector showed strong resilience by registering a highly commendable growth rate of 22.37% in comparison to 2010.  I am confident that this trend will continue despite external economic turbulences.

“I am pleased to inform you today that during the last weekend we urged all the Heads of Sri Lanka Missions from overseas that, since more than 50% of Sri Lanka’s export trade is centred on tea and apparel products, it is high time that all of them promote the value added product sectors which you are so committed to create. I extend my sincere thanks and appreciation to the manufacturing and exporting communities in Sri Lanka for their untiring efforts in facilitating this export sector progress in particular and overall economic development in general.”

Having immediately cleared Rs. 15.5 m in pending VAT refunds to Haycarb PLC and ATG Gloves Ltd., the forum also informed reps from the National Chamber of Exporters of Sri Lanka, Tea Exporters’ Association, the Ceylon Chamber of Commerce, Global Sea Foods Pvt. Ltd., Haycarb PLC, Lankohu Industries Ltd., Finlays Colombo PLC, Akbar Brothers (Pvt) Ltd. and Ceylon Tea Plantation Exports (Pte) Ltd. that their EDRS payment requests would now be promptly channelled to the Ministry of Finance and Planning for appropriate action.

The forum also announced that the request by the Floriculture Produce Exporters Association (FPEA) to provide electricity at industry rates for tissue culture labs has been successfully resolved already. Representatives from SriLankan Airlines clarified that FPEA’s request to install larger X-ray machines at the airport to inspect floriculture, fish and vegetables was not possible due to regulatory restrictions but ‘can be done’ with changes to them along with a $ 1 million investment. Minister Bathiudeen directed the parties to start discussions on this with the relevant stakeholders.

Thereafter, a request for permission by industrialists to purchase LP gas directly from CPC using the services of existing two LP gas suppliers came under discussion on a request by the Advisory Committee on Ceramics and Porcelain, on which the forum informed the parties that the Treasury was not able to give relief to a selected sector neglecting the others, and to this end, further negotiations with the Treasury would be in order.

Thereafter, S.R. Metals, a scrap metal firm, thanked the forum for resolving the issue regarding removing the ban of export of scrap metal. Minister Bathiudeen then informed the Sri Lanka Association of Manufacturers and Exporters of Rubber Products (SLAMERP) that their request to effect Sunday as a normal working day to enable the companies to grant the seventh day as a weekly holiday, after working six consecutive days of the week and to enable female employees to do overtime work more than 60 hours per month, would be immediately submitted to the Labour Ministry for necessary action.

The request to remove the cess on export of granite blocks by Ally Weerasinghe (Pvt) Ltd. and B.T.C Italia (Pvt) Ltd. was immediately brought to the attention of the Finance Ministry, which informed that it would inspect the necessary rates and advice as necessary. After on-the-spot discussions with the Ministry of Industry and Commerce, Ministry of Finance and Planning and Sri Lanka Customs, the forum promptly informed the requesting party Chevron Lubricants Lanka PLC that their request to extend TIEP facilities for the supply of lubricants to BOI companies which otherwise import from foreign sources would need to be considered under an alternative scheme that has to be clearly identified/determined.

Minister Bathiudeen also informed Agro Technica Ltd., which requested the introduction of a CESS on import of finished sprayers or to remove the prevailing duty on import of raw materials and parts used to manufacture sprayers, that their concerns would be forwarded to the Ministry of Finance and Planning. “Without stopping with that, I will also instruct my Ministry officials to make an on-site visit to Agro Technica factories,” Minister Bathiudeen announced.

Minister Bathiudeen thereafter directed the EDB to coordinate with the Forest Department with regard to the requested permission to collect Nuxvomica Seeds for export, by Eswaran Kathiresan and Co. S.A. Perera and Co. Ltd., which requested to remove cess on export of finished leather, praised and thanked Minister Bathiudeen for already reducing cess on leather and requested total removal of cess on footwear exports.

Asitha Seneviratne, Director of the Ministry of Industry and Commerce, informed S.A. Perera and Co. Ltd.: “We too are in line with your view. We have no objections on the total removal of cess provided other footwear exporters also agree. The final decision should come from the Finance Ministry.”

The request made by N.M. Mohamed Mohideen Ltd. for a place/land in an industrial estate or in other suitable area to relocate their tannery, which has been closed down at present, has been positively responded to by Minister Bathiudeen, which his officials working on it and discussions underway. Minister Bathiudeen also requested N.M. Mohamed Mohideen Ltd. to focus on the environmental clearance by CEA.

On the issue of Barbara Sansoni Exports (Pvt) .Ltd on the unusual delay in providing electricity supply to their new dye centre and water treatment plant at Hindakaral Deniya, the Ceylon Electricity Board informed the forum that a special conductor would be supplied to the firm in the next three months. This ‘special conductor’ will need to be specially sourced by CEB.

Many forum participants expressed their strong satisfaction with Minister Bathiudeen and his Ministry for actively following up export community issues. Sudath Fernando, Financial Controller of ATG Gloves Pvt. Ltd., whose issues of VAT refunds were successfully resolved during the forum, said: “We thank Minister Bathiudeen for taking up issues of exporters through this forum and I should say that our issues are being followed up. That is the most important aspect of this forum – the active follow up by the Minister. For example, our firm was stuck with the issues of VAT refunds for some time and when we raised the issue we immediately received 50% of the Rs. 7 million outstanding, for which we are thankful. I am confident that with the perseverance of Minister Bathiudeen, our pending amount too could be regained.”

ATG Gloves, the ISO 9000 and 14000 certified BoI firm is the market leader in super light foam coated seamless gloves in the world and its export basket is industrial and safety gloves to 40 countries (including USA and European market) from its factories. It also runs one of the world’s largest single knitting units, located in Sri Lanka.

Concluding the third Exporters’ Forum, Tilak Collure, Secretary to the Ministry of Industry and Commerce, announced: “We now observe a definite success rate in terms of issues solved, which I believe is very encouraging. One of the key reasons for this is due to the direct interaction between the Government and the private sector. On behalf of the Ministry of Industry and Commerce and the EDB, I thank all the participants in today’s positive exercise.”