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Page 1: EDB Strategic Plan 2011-2015
Page 2: EDB Strategic Plan 2011-2015

ii

TABLE OF CONTENTS List of Abbreviations & Acronyms

Minister’s Message

ii iv

Foreword v 1 Vision and Mission of the EDB 1 2 Overall Objectives of the EDB 2 3 Role and Scope of the EDB 3 4 Key Functions of the EDB 4 5 Key Issue Areas 7 6 Current Resources Available 11 7 Current Organization Structure of the EDB 11 8 SWOT Analysis of EDB 12 9 Performance of Export Sectors, 2007-2009

Major Projects implemented by the EDB, 2007-2009

14

10 Identification of Key Product Sectors(KPS) 41 11 Export Targets for Key Product Sectors, 2010-2015 42 12 Triggers/Barriers Analysis of Key Product Sectors (KPS) 43 13 Key Action Areas of Key Product Sectors (KPS):

Apparel Tea Rubber & rubber based products

Diamonds, gems & Jewellery

ICT/BPO/KPO

Food & other beverages

Spices & allied products

43

14 Key Action Areas of Other Product Sectors (OPS):

Fish & fisheries products

Coconut & coconut based products

Electrical & electronics

Printing & stationery

Boat Building

Professional services

Ceramics & other mineral based products

Fruits & vegetables

Toys, games & sports

Giftware & lifestyle products

Base metal products

Footwear & leather products

Wooden products

Floriculture

Ornamental fish

Handloom

Chemical & plastic products

49

15 Building a Team of Excellence at the EDB 58 16 Annexures

Annex I : Key personnel, profiles and skills 59 Annex II : Current Organization Structure of the EDB 70 Annex III : Rationale for the Identification of Key Product Sectors (KPS) 71 Annex IV : Export Targets of Other Product Sectors (OPS) 73 Annex V : Trigger/ Barrier Analysis for KPS & OPS 74 Annex VI : Financial Performance of the EDB 163 Annex VII : Summary of Export Performance, 2003-2009 164

Page 3: EDB Strategic Plan 2011-2015

iii

LIST OF ABBREVIATIONS AND ACRONYMS

APTA Asia Pacific Trade Agreement

BDS Business Development Services

BIA Bandaranayake International Airport

BOI Board of Investment

BPO Business Process Outsourcing

BTI Boat Technology Institute

CIS Commonwealth of Independent States

COP Cost of Production

DC Desiccated Coconut

DEA Department of Export Agriculture

EDB Export Development Board

EDCM Export Development Council of Ministers

EDI Electronic Data Interchange

EPV Export Production Village

EU European Union

EU-GSP European Union - General System of Preference

FDI Foreign Direct Investment

FTA Free Trade Agreement

GAP Good Agricultural Practices

GDP Gross Domestic Product

GI Geographical Indicator

GMP Good Manufacturing Practice

GTZ German Technology Co-operation

HACCP Hazard Analysis & Critical Control Process

HRD Human Resource Development

ICT Information & Communication Technology

IECA International Erosion Control Authority

ISFTA India Sri Lanka Free Trade Agreement

ISLFTA India Sri Lanka Free Trade Agreement

ISO International Organization for Standardization

IUCN International Union for Conservation of Nature

JAAF Joint Apparel Association Forum

KAA Key Action Areas

KPO Knowledge Process Outsourcing

KPS Key Product Sectors

NAFTA North American Free Trade Area

NCED National Council Economic Development

NEDP National Export Development Plan

NIP National Intellectual Property House

NOCA National Organic Certification Authority

NOCGL National Organic Certification [Guaranteed] Ltd

OFI Ornamental Fish International

OPS Other Product Sectors

PCB Printed Circuit Board

PPP Private Public Partnership

PSFTA Pakistan-Sri Lanka Free Trade Agreement

PTA Preferential Trade Agreement

R&D Research & Development

RFP Request For Proposal

RFQ Request For Quotation

Page 4: EDB Strategic Plan 2011-2015

iv

SAARC South Asian Association for Regional Co-operation

SEA Sustainable Energy Authority

SLPA Sri Lanka Port Authority

SLSI Sri Lanka Standards Institution

SME Small and Medium Enterprise

TRI Tea Research Institute

UAE United Arab Emirates

UK United Kingdom

USA United States of America

VAT Value Added Tax

Page 5: EDB Strategic Plan 2011-2015

v

Hon. Minister’s Message

I am very pleased to send this message on the occasion of launching the Strategic Plan -

2011 - 2015 prepared by the Sri Lanka Export Development Board (EDB).

The “Mahinda Chintana” , which stipulates the policy framework of the Government,

accords high priority for the development of the export sector with the objective of

enhancing foreign exchange earnings, creation of employment opportunities and

alleviation of poverty.

In this context, the EDB which spearheads the Government’s export development drive

has to play a key role in achieving the development objectives of the country. I am sure

that the Strategic Plan prepared by the EDB in consultation with the relevant

stakeholders will provide the necessary framework to achieve cohesion not only within

the EDB but, also among other relevant stakeholders. This approach is, of the utmost

importance to realize the projected export targets.

Further, in realizing the set targets in the export sector, it is imperative to establish a

Single Electronic Window System to facilitate the documentation process of exports. In

this context, assistance rendered by Hon. Basil Rajapakse, Minister of Economic

Development is greatly appreciated.

I wish to extend my good wishes for the successful implementation of this Strategic Plan

in collaboration with all the stakeholders.

Rishad Bathiudeen,

Minister of Industry and Commerce

Page 6: EDB Strategic Plan 2011-2015

vi

FOREWORD

The rapidly changing international trading environment, highlights the

importance of adopting a strategic approach to sustain the growth momentum of

our exports in existing markets and diversifying into new markets. The diverse

range of issues that emerge in facing these challenges require a competitive

response, if the desired goals of our export development efforts are to be

realized.

Exports contribute nearly 17% to the GDP of the country and as the national

export promotion organization, mandated to develop and promote exports from

Sri Lanka, the EDB has to play a leading role in achieving the national objectives,

as set out in the “Mahinda Chintana”.

This Strategic Plan prepared by the EDB elucidates the scope of the EDB and the

role that the EDB would play in developing and promoting exports from Sri

Lanka. It also focuses on specific product sectors which have a high export

potential. A trigger / barrier analysis was carried out for all the product sectors

to identify the key actions needed to achieve the export targets for each sector.

The strategy formulation process was facilitated by Prof. Uditha Liyanage,

Director of the Postgraduate Institute of Management in consultation with all the

Divisions of the EDB and with the Advisory Committee members. The

contribution made by the Management Team of the EDB, the other officers of the

EDB and Advisory Committee members, made it possible to complete the task

successfully. The strategy formulation process was coordinated by the Policy

and Planning Division of the EDB. I wish to express my sincere appreciation to

all those who were involved in the process.

The total commitment of all stakeholders is a key factor which will determine

the successful implementation of the Strategic Plan and I believe that, with the

dedication of all the officers and staff of the EDB, the goals set out in the Strategic

Plan will be achieved.

October, 2010 Chairman & Chief Executive

SRI LANKA EXPORT DEVELOPMENT BOARD

Page 7: EDB Strategic Plan 2011-2015

SRI LANKA EXPORT DEVELOPMENT BOARD

VISION

To be the most sought after destination for global sourcing in identified product

sectors.

MISSION

To be the nation’s leading catalyst organization for the development and

promotion of products and services for exports, to enhance global

competitiveness, maximize export earnings and achieve national economic

goals.

Page 8: EDB Strategic Plan 2011-2015

2

The intent of this Strategic Plan is to determine and define the specific roles of EDB

and to identify its key action areas, over a five year period, rather than develop a national

export strategy.

02. OVERALL OBJECTIVES OF EDB

01. To increase the country’s export value of products and

services to US$ 15 Bn. by 2015, in line with “Mahinda Chintana –

Vision for the Future”.

02. To increase exports to markets other than the EU and USA by over

50% by 2015, while consolidating the market position in the EU

and USA.

03. To pay particular attention to the seven identified key

product sectors, which will contribute over 80% of total export

value, and achieve significant growth in those sectors.

04. To project a more positive and a favourable image of Sri Lanka’s

exports as a whole, through the conduct of integrated marketing

communication programmes in selected markets.

05. To broad-base the beneficiaries of exports across the country and

sectors, including SMEs.

06. To build a team of excellence at the EDB, based on core

values, with particular emphasis on employee productivity and

commitment.

Page 9: EDB Strategic Plan 2011-2015

3

03. ROLE AND SCOPE OF EDB

The following five roles will be played by EDB in the development and

promotion of exports of Sri Lanka. They will indicate the scope of EDB’s

activities.

Role 01: Policy Adviser

1.1 Advise/recommend to the Export Development Council of Ministers

(EDCM) and Government on the National Export Policy and

programmes.

1.2 Formulate the National Export Development Plan (NEDP) and programmes with all relevant public and private sector stakeholders to achieve the development objectives of the government.

1.3 Champion the cause of exporters and provide “one voice” for them in policy formulation and presentation.

Role 02: Monitor

2.1 Measure and monitor the NEDP and other export development

activities.

Role 03: Promoter

3.1 Help formulate marketing strategies to enhance Sri Lankan exports.

3.2 Direct and co-ordinate market development activities through the Sri Lankan trade representatives and other agents abroad to ensure greater market access for exports.

3.3 Implement integrated product /market development programmes to expand/diversify exports.

Role 04: Facilitator

4.4 Function as the focal point to deal with all export-related issues.

4.5 Facilitate the development of the export of products and services.

Role 05: Knowledge Provider

5.1 Carry out export oriented surveys and research.

5.2 Provide trade information and advisory services.

Page 10: EDB Strategic Plan 2011-2015

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04. KEY FUNCTIONS OF EDB

The following key functions will be performed by EDB in each of the identified

five roles of EDB.

1.0 Policy Adviser

1.1 Advise/recommend to the Export Development Council of Ministers

(EDCM) and Government on the National Export Policy and related

programmes.

� Reactivate EDCM, which is headed by H.E. The President.

� Recommend measures to maintain a conducive business environment

to enhance competitiveness of products and services exported.

� Propose measures to expand Sri Lanka’s trade through Trade

Agreements (bilateral/regional/multilateral).

� Advise the Board through the establishment and conduct of Advisory

Committees with private/public sector participation.

1.2 Formulate the National Export Development Plan (NEDP) and programmes

with all relevant public and private sector stakeholders to achieve the

development objectives of the government.

� Impose CESS and administer the Export Development Fund to

develop and promote exports.

� Initiate product, market and regional export development

programmes.

1.3 Champion the cause of exporters and provide “one voice” for them in policy

formulation and presentation.

2.0 Monitor

2.1 Implement and monitor the NEDP and other export development activities.

� Monitor export performance by major markets/products.

� Monitor the domestic and international business environment.

� Evaluate the output and outcome of export development programmes.

� Ensure that exports meet international standards and requirements.

3.0 Promoter

3.1 Formulate marketing strategies to enhance Sri Lankan exports.

� Conduct market surveys/research to identify barriers and triggers,

market trends and consumer behaviour.

� Organize appropriate market promotion activities, i.e., participation in

international trade fairs/exhibitions/single country exhibitions, inward

Page 11: EDB Strategic Plan 2011-2015

5

buying missions, outward promotion missions, contact promotion

programmes, road shows, establishment of display centres/windows,

etc.

� Implement an integrated marketing communication programme to

raise awareness of Sri Lankan exports.

� Implement programmes for national branding and assisting brand

development programmes of exporters.

� Implement assistance schemes to encourage the private sector to

export.

3.2 Direct and co-ordinate market development activities through the Sri

Lankan trade representatives and other agents abroad to ensure greater

market access for exports.

� Identify existing trade channels in markets and select appropriate

methods for export promotion.

� Implement programmes to motivate and obtain the services of

overseas trade-related agencies and the Sri Lankan diaspora to

promote Sri Lankan products and services.

3.3 Implement integrated product/market development programmes to

expand/diversify exports.

� Develop new capacities and enhance the competencies of the export

community.

� Encourage investment for export oriented R&D and product

development/adaptation (designs, packaging, etc.).

� Develop export oriented SMEs and promote linkages between

exporters and ‘farmer/producer’ clusters.

� Recognize and reward exporters for their outstanding contribution to

the national economy.

� Organize local/international trade exhibitions and other trade events in

Sri Lanka (such as EXPO).

� Implement budget proposals relating to the promotion of exports.

4.0 Facilitator

4.1 Function as the focal point to deal with all export-related Issues.

� Co-ordinate with and catalyse the efforts of export sector-specific

organizations/associations such as JAAF, NCED, Chambers, Exporters’

Associations, Product Associations, etc.

� Network with all trade related international and local agencies,

Research & Development, BDS, technical assistance, etc.

� Discuss and resolve export related issues, i.e., “Exporters’ Forum”.

Page 12: EDB Strategic Plan 2011-2015

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4.2 Facilitate the development of exports of products and services.

� Profile Sri Lanka’s products/services and producers/suppliers.

� Provide financing for exports.

� Provide e-commerce and promote e-trading for exports.

� Work with relevant agencies by providing product-specific inputs for

trade negotiations.

� Enhance competitiveness of value chain to obtain national/

international standards, Quality Certification, etc.

� Facilitate local infrastructure development and export related services.

5.0 Knowledge Provider

5.1 Carry out export oriented surveys and research.

� Conduct product/market specific research/studies.

� Disseminate findings among the business community.

� Network with other related organizations.

5.2 Provide trade information and advisory services.

� Develop and maintain a reliable and demand-driven integrated

information system (Trade Library, etc.)

� Prepare publications on exports and promotional materials.

� Conduct awareness and skills development programmes.

� Provide specific training for the exporter community.

Page 13: EDB Strategic Plan 2011-2015

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05. KEY ISSUE AREAS

The following cross-cutting and underpinning issue areas have to be addressed

in order that the identified roles can be effectively played by EDB.

01 Conducive business environment for export development. (Policy

Advisor)

- A stable and pragmatic National Export Policy which is geared

towards achieving a sustainable high export growth.

- Fiscal and monetary policies to contain inflationary pressure on

cost of production.

- A realistic exchange rate to ensure a reasonable return in rupee

terms for exporters.

- Concessionary rates for tariffs on consumables such as electricity,

gas, etc.

- Maintain a uniform package of fiscal incentives for all exporters.

02 Create strategic and efficient institutional arrangements to meet specific

needs of exporters. (Policy Advisor & Facilitator)

- Reactivate the Export Development Council of Ministers (EDCM).

- Strengthen EDB and other export-related line agencies by

providing required resources.

- Channel proceeds of CESS to the relevant agencies to be ploughed

back into the industry.

- Ensure private-public partnerships in export development efforts.

03 Ensure the availability of export financing under favourable terms

(Facilitator)

- Provide soft loan facilities for export related investment and

working capital needs.

- Provide export financing on the basis of feasibility of the project

rather than collateral alone.

- Establish an ExIm Bank to cater to specific financial needs of

exporters and to facilitate import/export transactions more

effectively.

Page 14: EDB Strategic Plan 2011-2015

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04 Establish a well-defined land-use policy to improve productivity and to

promote export-oriented investment. (Facilitator)

- Strengthen the Land Data Bank at national and provincial levels to

facilitate prospective investors.

- Establish a single facilitation centre for land related issues to reduce

“red tape” and cumbersome procedures.

05 Optimize the use of labour resources to gain productivity and efficiency

through the rationalizing labour regulations and implementing

targeted human resource development programmes. (Facilitator)

- Rationalize labour laws to establish a business friendly labour

market, which also guarantees the rights of employees.

- Harmonize and nationalize human resource development

programmes, including university education and vocational

training.

- Establish linkages between the export sector and research/training

institutes and universities to create new competencies within the

export industry.

06 Establish industry standards to ensure that exported products and

services meet the requirements of overseas buyers and to establish Sri

Lanka’s position in the global market as a source of quality goods and

services. (Facilitator, Knowledge Provider)

- Develop the technical infrastructure necessary for testing,

inspection and certification in accordance with internationally

accepted conformity-assessment procedures.

- Strengthen SLSI and other local institutions to issue quality

certificates required by other countries.

- Disseminate information on international quality requirements and

locally available resources.

- Encourage and assist exporters to obtain quality certification.

Page 15: EDB Strategic Plan 2011-2015

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07 Simplify and rationalize trade documentation and import/export

procedures to reduce transaction cost. (Facilitator)

- Review existing import/export procedures, duty free schemes, and

VAT Deferment/Suspension schemes to create a level playing field for

non-BOI exporters vis-a-vis BOI exporters.

- Expedite refund mechanism for VAT and duty rebate claims to remove

cash flow difficulties.

- Establish a single window or one-stop Centre for import and export

documentation with EDI network.

- Provide a priority channel for perishable cargo at the Airport/SLPA.

08 Promote a proactive foreign investment campaign, which targets key

competitive sectors and source countries. (Facilitator)

- Launch an aggressive promotional campaign to attract foreign

investments for key emerging sectors of the economy.

09 Ensure regular availability of competitively priced packaging and

packaging materials that comply with international standards.

(Facilitator, Knowledge Provider)

- Strengthen the National Packaging Centre as a centre of technical

excellence to provide services such as raw material testing,

certification, designing, quality assurance and training, etc.

- Establish a system for R&D and HRD.

10 Productive infrastructure development. (Facilitator)

- Develop proper facilities to handle perishable and high value cargo at

the Airport.

- Set up an adequate marketing infrastructure in the provinces to handle

agricultural and fisheries products.

- Encourage the private sector to invest in infrastructure development

projects, i.e., low cost power generation projects, etc.

11 Encourage export related Research & Development activities. (Facilitator)

- Establish a Fund for R&D activities

- Strengthen the capacity of existing R&D institutions to link with the

industry for a demand-driven work programme.

Page 16: EDB Strategic Plan 2011-2015

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12 Comprehensive Market Development Programme and National Branding

Programme. (Knowledge Provider, Facilitator, Promoter)

- Provide of efficient and accurate market intelligence.

- Optimize services of Sri Lankan Missions abroad and the Sri

Lankan diaspora as channels for market intelligence and promoting

Sri Lankan products & services.

- Develop a Sector and/or Nation Branding Strategy using local and

foreign expertise.

- Establish a Fund to support National Brand Promotion

programmes.

- Establish a communication strategy in collaboration with the media

and Sri Lanka’s Missions abroad.

- Organize multi channel sale centres under one roof for Sri Lankan

manufacturers and exporters.

- Launch appropriate market promotion programmes, i.e., trade

fairs, contact promotion missions, display centres/windows, road

shows in target markets.

- Organize export promotion events to showcase Sri Lankan

products and services. e.g. Expo – 2011.

- Bilateral/Regional/Multilateral trade negotiations to ensure greater

preferential access to key markets.

Page 17: EDB Strategic Plan 2011-2015

11

06. CURRENT RESOURCES AVAILABLE:

Key Personnel: Profiles & skills

The Sri Lanka Export Development Board (EDB) as the National Institute responsible for

the promotion, development and facilitation of Sri Lankan exports, assisting and

coordinating of all state and private sector organizations, associations, industries,

manufacturing enterprises and individuals involved in exporting products and services

to market the world over, needs to maintain a skilled and updated workforce.

According to the organizational structure, the cadre of the SLEDB is as follows:

Executive Staff : 119

Non Executive : 141

For job profiles please refer Annex I.

07. CURRENT ORGANIZATION STRUCTURE OF EDB

The current Organization structure is illustrated in Annex II.

Structural changes have been proposed in keeping with the overall strategy of the EDB.

They will be effected after obtaining approval of the Department of Management

Services, General Treasury.

Page 18: EDB Strategic Plan 2011-2015

12

08. SWOT ANALYSIS OF THE EDB

Strengths

1. Established under an Act of Parliament.

2. Apex State organization for export development.

3. A qualified and professional workforce with wide experience.

4. EDB’s Board of Directors are well represented by key Ministries at the

highest level.

5. Private sector participation in the Board and in Advisory Committees

with representations from leading business sectors and enterprises.

6. Existence of a provincial network of offices.

7. Close rapport with relevant local and international agencies, Chamber

and Trade Associations.

Weaknesses

1. Dormant Export Development Council of Ministers.

2. Inadequate priority for and focus on high-value niche product/market

sectors.

3. Inadequate efforts to conduct research studies on policy matters, trade

related issues and competitiveness of export products in international

markets.

4. Absence of an innovative stimulus package, particularly for key

product sectors.

5. Inadequate resources for and lack of delegation of authority to

provincial offices.

6. Lack of rapport with leading exporters.

7. Absence of robust mechanisms to motivate and reward staff.

8. Frequent changes in supervising Ministries, line Ministries and higher

management positions.

Page 19: EDB Strategic Plan 2011-2015

13

Opportunities

1) Recognition of export development by the Government as a thrust area for

development.

2) Government’s interest in strengthening regional co-operation and intra-

regional trade.

3) Emergence of friendly nations of Sri Lanka as potential destinations for

export (China, Russia, Ukraine, etc.).

4) Availability of the untapped potential of land and sea areas in the North

and East that could be exploited for economic development.

5) Preferential access to different markets under FTAs, PTAs and other Trade

Agreements.

6) Presence of a strong network of Sri Lankan Commercial Attaches and non-

resident Sri Lankans around the globe.

7) Interest shown by the Government in bilateral, multilateral and regional

trade relations.

8) Exporters’ confidence in the EDB.

Threats

1) Non-availability of a systematic funding mechanism to carry out planned

development activities.

2) Existence of other organizations, replicating EDB’s activities.

3) Increasing turbulence in the international economic and political arena.

Page 20: EDB Strategic Plan 2011-2015

14

09. PERFORMANCE OF EXPORT SECTORS 2007- 2009

Introduction

The export sector of Sri Lanka which achieved satisfactory growth rates [in

terms of value] of 8.5% and 11% in 2006 and 2007 respectively grew at a

slower pace of 6.5% during the year 2008. The setback experienced by the

sector since the latter part of 2008 following the global economic slowdown

continued even during the year 2009 by registering a disappointing

negative growth rate of 12.9%.

Encouragingly, as depicted in the chart below, the export earnings have

shown signs of recovery during the latter part of 2009 with positive

developments in the global economy.

QUARTERLY PERFORMANCE OF EXPORTS 2008 & 2009

1547

18782010

2262

19871642

1930

1965

0

500

1000

1500

2000

2500

1st Q 2nd Q 3rd Q 4th Q 1st Q 2nd Q 3rd Q 4th Q

Val

ue

[US

$ M

n]

2008 2009Period

Page 21: EDB Strategic Plan 2011-2015

15

Overall Export Performance

The graph below shows the export performance in 2009 in compared to

2007 and 2008. It reveals that export earnings dropped by 12.9% in 2009

reflecting contractions in major categories of exports the agricultural and

industrial [please also see annexed Tables] the contribution made by the

major categories of exports to the overall performance of the export sector is

depicted in the following section.

Export Performance by Major Categories

Table 1 below gives the export performance of major categories during the

period 2007 to 2009 in US dollar terms.

Table 1 : Export Performance by Major Categories 2007, 2008 and 2009

[US$ Mn.]

2007

Value

2008 2009 %

Share Value Growth Value Growth

Agricultural products 1495.79 1833.00 22.51% 1666.58 -9.05% 23.52%

Fisheries products 170.76 173.67 1.69% 179.11 3.13% 2.53%

Industrial products 5868.10 6032.5 2.80% 5152.69 -14.58% 72.73%

Others 105.31 98.03 -6.91% 86.14 -12.13% 1.22%

Total Exports 7639.97 8136.97 6.50% 7084.52 -12.93% 100.0%

Source : Sri Lanka Customs.

OVERALLL EXPORT PERFORMANCE - 2007, 2008 & 2009

7640

7084

8137

500052005400560058006000620064006600680070007200740076007800800082008400

2007 2008 2009

Year

Val

ue

[US

$ M

n]

6.5% -12.9%

Page 22: EDB Strategic Plan 2011-2015

16

Agricultural exports which account for 24% of total export earnings

decreased by 9.05% in 2009 to US$ 1667 Mn. All major products in the

agricultural sector [tea, rubber, coconut kernel products, spices & other

export crops] except coconut fibre based products and vegetables recorded

substantial set-backs during this period. The fisheries export sector, which

accounts for 3% of total export earnings, recorded a marginal positive

growth of 3.13% due to poor performance of aquarium fish and fresh fish.

Other categories of the fisheries sector recorded positive growth rates.

Industrial exports which accounted for 73% of the total export earnings

declined significantly by 14% contributing to the overall poor performance

of the export sector. Performance of almost all the product sectors in this

category including textile and garments dropped substantially during this

period.

Composition of Exports

The graph below shows the composition of exports at a disaggregated level

during the period under review. It reveals that nearly 63% of total export

earnings of Sri Lanka were derived from two products, namely garments

[44%] and tea [17%]. Nearly 80% of the total export turnover comes from

only seven products.

Considering the adverse effects of high dependency on a few products, it is

essential to broaden the export base of Sri Lanka through horizontal

diversification, i.e., widening the range of exports and vertical

diversification of exports at different stages of value addition to capture

more value from products that are exported from Sri Lanka. However, this

does not mean a shift in focus on the key sectors.

Composition of Exports by Products - 2009

Garments42.6%

Information & Com. Services

3.3%

Food & beverages

2.6%

Fish products

2.3%

Others23.4%

Rubber Products

5.3%

Diamonds4.3%

Tea16.2%

16

Page 23: EDB Strategic Plan 2011-2015

17

Performance of Major Product Sectors

Tea

Earnings from the export of tea crossed the US$ 1Bn. mark in 2007 and

registered a substantial growth rate of 24% in 2008. They dropped by 6.7%

to US$ 1185 Mn. in 2009. Export earnings from tea declined sharply by 19%

during the 1st half of 2009, however, improved during the latter part of 2009.

The total volume of tea exported has also declined by 9.4% during this

period.

Export earnings from bulk tea, which represent nearly half of total earnings

from tea, declined by 4.5% while tea packets and instant tea declined by

6.3% and 14.2% respectively in 2009. However earnings from tea bags

which accounted for nearly 15% of total tea exports grew by 5% during

2009.

Earnings from the export of bulk tea to almost all markets except Syria

[17%] and Kuwait [63%] dropped substantially during this period. Export

of bulk tea to Russia [-15%], Iran [-10%] and U.A.E. [-15%] and export of

packeted tea to Russia [-20%], Jordan [-9%], U.A.E. [-49%] and Iraq [-10%]

dropped in 2009. Increased export of tea packets were registered to Syria

[18%], Turkey [57%], Iran [4%] and Libya [13%] in 2009.

Earnings from the export of tea bags to key markets, i.e., Syria [20%], Jordan

[16%], Japan [25%] and U.A.E. [16%] increased while exports to Russia [-5%]

and Australia [-8%] dropped during this period.

Natural Rubber

Export earnings from all categories of natural rubber, i.e., crepe rubber

[-41%], sheet rubber [-0.02%] and block rubber [-17%] declined during this

period contributing to overall poor performance of natural rubber exports

[-21%] in 2009. Depressed demand in the international market consequent

to the global economic downturn could be attributed to this drop registered

by the natural rubber sector.

However, in terms of volume, exports of rubber increased by 15% in 2009.

Therefore, the lower prices that prevailed in the international market could

be attributed to this drop in earnings experienced by the export of natural

rubber.

Page 24: EDB Strategic Plan 2011-2015

18

Export of natural rubber [in value terms] to India [41%], Malaysia [19%] and

China [10%] increased during this period. However exports to other key

markets Pakistan [-35%], USA [-61%], Germany [-59%], Japan [-54%], Italy [-

25%] and Singapore [-47%] declined significantly in 2009.

Coconut Kernel Products

Export earnings from desiccated coconut [DC], which alone accounted for

67% of the total export of coconut kernel products, declined by 23% in 2009.

In contrast, the volume of DC exported during this period increased by

17%, reflecting lower international prices fetched during this period.

Except from Pakistan, export earnings of DC from other major markets

U.A.E. [-37%], Egypt [-21%] and Saudi Arabia [-6%] declined during this

period.

Earnings from the export of copra declined by 73% due to reduced imports

from Pakistan [-73%].

Earnings from the export of coconut oil and fresh coconuts grew by 12.5%

and 31% respectively during 2009. Earnings from the export of coconut oil

to USA increased significantly by 75% in 2009.

Coconut Fibre-based Products

Earnings from coconut fibre-based products increased substantially by

17.7% in 2009 due to increased exports of bristle fibre [196%], mattress fibre

[78%], coco peat [51%], coir yarn [29%] and coconut shell charcoal [15%].

However, the export of mixed coir fibre declined by 29% during the period

under review.

The export of mattress fibre to China rose by 152% and the export of coco

peat to almost all markets - France, South Korea and Netherlands - grew

remarkably during this period.

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Spices

The export of spices dropped substantially by 24% [in value terms] in 2009

due to the reduced export of pepper [-22%], cinnamon [-10%], cloves [64%],

nutmeg & mace [-10%] and cardamom [-10%].

The export of cinnamon, which accounted for 64% of total earnings of spices

to the main markets Mexico and USA, declined by 7% and 9% respectively

during this period.

Export of pepper which accounted for 18% of the total export value of

spices declined by 22% due to reduced exports to India in 2009.

Export earnings from cloves also dropped by 64% due to decreased exports

to India [-66%] in 2009.

Essential Oils

Earnings from the export of essential oils declined by 38% due to reduced

exports to USA [-54.2%] in 2009.

Fruits & Vegetables

Earnings from export of fruits declined by 12% during 2009. Except to

U.A.E. [11%], the export of fruits to Maldives [-23%], India [-14%] and

Germany [-14%] declined during this period.

In contrast, earnings from the export of vegetables increased impressively

by 23% in 2009. Except to the Maldives [-29%] the export of vegetables to

other markets, i.e., U.A.E. [11%], Saudi Arabia [263%] and U.K. [55%], grew

significantly during this period.

Cutflowers & Foliage

Earnings from this sector too declined drastically by 19% due to poor

exports to all key markets, i.e., the Netherlands [-18%], Japan [-3%],

Germany [-10%] and U.K. [-27.1%] in 2009.

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Other Export Crops

Export earnings from other export crops cashew [-18%], unmanufactured

tobacco [-15%], betel leaves [-10%], and arecanuts [-56%] too declined

substantially during this period.

Aquarium Fish

Export earnings from aquarium fish too declined by 5.1% during 2009 due

to reduced exports to Germany [-34%], U.K. [-53%] and France [-2.13].

However, the export of aquarium fish to USA [9%] and Japan [3.4%] grew

during this period.

Crustaceans

Export earnings from prawns [23%], lobsters [25%] and crabs [52%]

increased significantly during this period due to increased exports to Japan,

the Maldives, the USA and Singapore.

Other Fish Products

Earnings from the major category of this sector-frozen fish-grew by 11.8%

due to increased exports to EU member countries. However, earnings from

the export of fresh fish [-50%] and preserved fish [-15%] declined during

this period.

Diamonds, Gems & Jewellery

Export earnings from diamonds, gems and jewellery declined drastically by

25%, 32% and 22% respectively during this year due mainly to the global

economic crisis that prevailed during this period.

Textiles & Garments

Earnings from all the major categories of this sector, i.e., garments [-4.9%],

woven fabrics [-8.6%] and other made up textile articles [-30%] declined

during this period. The export of garments, which accounted for 44% of

total export earnings in 2009, dropped in major markets, i.e., the USA

[-13.4%], the U.K. [-2.6%], Belgium [-7%]. However, the export of garments

Page 27: EDB Strategic Plan 2011-2015

21

to Italy [7.9%], Germany [10%], the Netherlands [27%] and France [3%]

grew during this period.

Computer & Information Services

According to the Annual Report 2009 of the Central Bank, export earnings

from computer and information services increased from US$ 230 Mn. in

2008 to US$ 245 Mn. in 2009, registering a growth rate of 6.5%.

Food & Beverages

Reduced export earnings from processed fruits & juices [-9%], processed

food [-44%], beverages [-36%] and manufactured tobacco [-12%] contributed

to the overall poor performance of -16.3% reported by the food & beverages

sector. However, earnings from export of confectionaries increased by

22.31% during 2009.

The export of processed food to India declined from US$ 172 Mn in 2007 to

US$ 2.13 Mn in 2009 due to reduced exports of Vansapathi to India. Export

earnings from other processed food categories to U.K. [19%], the Maldives

[7.8%] and U.A.E. [3.6%] grew during this period.

The export of confectionaries and bakery products to India [201%] and

Ghana [44%] increased [in terms of value] impressively during this period.

Earnings from the export of beverages to Italy [-84%] declined while the

export of manufactured tobacco to Italy dropped by 54% during 2009.

Leather & Leather Products

Reduced export earnings from raw hides [-42%], travel goods [-34%] and

leather clothing accessories [-11%] contributed to the overall poor

performance [-18.7%] of the leather-based exports during this period.

Earnings from the export of travel goods to the U.K. [-7%], Germany [-39%]

and the USA [-22%] declined during this period.

The export of leather clothing accessories to Germany [-12%] and the USA

[-38%] dropped [in value terms] during this period while exports to the

USA increased by 8.7%.

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Footwear

Export earnings from footwear declined substantially by 20% in 2009 due to

reduced exports of leather footwear [-22%], which accounted for 93% of

total earnings from the export of footwear. In contrast, export earnings

from the export of rubber footwear grew by 18.8% during this period.

Except to France [112%], export earnings from leather footwear to all major

markets Italy [-34%] and the U.K. [-13.8%] declined during this period.

Earnings from the export of rubber footwear to Australia [53%] and India

[110%] grew during this period.

Wooden Products

The drop in export earnings from MDF boards [-62%], furniture [-18.5%],

wooden craft items [-5%] and broomsticks [-25%] contributed to the overall

poor export performance of wooden products [-38.8%].

Earnings from the export of MDF boards to key markets-India [-66%],

U.A.E. [-35%], Iran [-79%] and Pakistan [-24%] - dropped significantly

during this period.

The export of furniture to India declined by 29% [in value terms] in 2009.

The export of wooden crafts to the USA increased marginally by 1.2% while

the export of broomsticks to the USA declined by 39% during this period.

Paper Products

Earnings from paper products declined by -8.6% during 2009 due to

reduced export earnings from paper pulp [-31%], stationery [-7%] and

books and printed materials [-45%].

Export earnings from both paper pulp [-31%] and stationery [-25.8%] to

India dropped substantially during this period, contributing to the overall

poor performance of the sector. However, earnings from export of

stationery to Germany [40%] and the U.K. [1.6%] increased during this

period.

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Rubber Products

Export earnings from rubber products declined significantly by 29% during

2009. Except from unhardened rubber [61%], earnings from all other

categories in this sector, i.e., tyres & tubes [-36.6%], apparel clothing

accessories [-2.9%], articles of unhardened rubber [-42%] and rubber thread

[-86%] declined during this period.

Earnings from export of tyres and tubes, which accounted for 56% of total

earnings from the rubber product sector to all major markets, i.e., the USA

[-26.6%], Germany [-42.5%], Belgium [-36%] and Italy [-34%] dropped

substantially during this period.

Export earnings from clothing accessories to the USA [-2%] and the U.K.

[-5.5%] dropped while exports to Germany [7.2%] and India [15%] grew

during this period.

The export of articles of unhardened rubber to all major markets USA [-

37.5%], Sweden [-46%], France [-57%] and Germany [-34%] dropped [in

value terms] during this period.

Chemical & Plastic Products

Earnings from the export of chemical & plastic products too declined by

11% during this period due to decreased exports of organic & inorganic

products [43.7%], pharmaceuticals [-9.9%], tanning & paints etc. [-7%]

and plastic products [-30%]. However, earnings from the export of

perfumes & cosmetic products [4.5%], washing preparations [7.9%],

adhesives [10.7%] and activated carbon [24.7%] increased during 2009.

Earnings from the export of activated carbon to key markets - the USA

[11.1%], Italy [77.8%] and China [56.5%] - grew substantially during this

period.

Non-Metallic Mineral Products

Most of the products in this category, i.e., ceramic & porcelain [-25.6%]

natural sands [-26.4%], mineral sands [-15.7%] graphite [-35%], articles of

stones [-39.8%], reported reduced export earnings while earnings from glass

& glassware grew by over 100% during 2009.

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Earnings from the export of ceramic and porcelain products to the USA

[-32%], Australia [-4.6%] and Germany [-28%] declined during this period,

while exports to Japan grew by 5.7%.

The export of glassware to India increased significantly by 172% in 2009.

Other Manufactured Products

Export earnings from other products in the manufactures category, i.e.,

petroleum products [-49%], general machinery & parts [-39%], electrical &

electronic products [-42%] transport equipment & parts [-19%], articles of

moulding materials [-32%], toys & sports requisites [-9.7%], too declined

during this period, contributing to the overall poor performance of the

industrial export sector.

Export Performance by Major Markets

Composition of Markets

The graph below illustrates the penetration of Sri Lankan exports into

various markets during the year 2009, in terms of value.

It reveals that nearly 67% of total exports of Sri Lanka were absorbed by

only nine countries during the period under review which reflects the

concentration of our exports on a few markets. The USA and the UK alone

absorbed 38% of our total exports. Key EU member countries, i.e.,

Germany, Italy, Belgium, and the Netherlands still dominate as our main

export destinations. India, which emerged as the third main export

destination for Sri Lanka in 2005, was unable to sustain its position in spite

of ISFTA.

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25

Exports by Regions

The graph below illustrates the export performance of Sri Lanka by major

regions during the year 2009.

EXPORT PERFORMANCE BY MAJOR REGIONS IN 2009

EU, 38%

NAFTA, 24%

Middle East, 10%

Other Asian

countries, 9%

SAARC, 6%

Others, 9%

CIS, 4%

COMPOSITION OF MARKETS - 2009

USA 23%

Others33%

U.K. 15%

Italy6%

Belgium5%Germany

5%India5%

Russia3% U.A.E.

3%

Netherlands2%

Page 32: EDB Strategic Plan 2011-2015

26

It is evident that 38% of the total export earnings of Sri Lanka were derived

from European Union member countries [EU] while 24% of total exports

were derived from North American Free Trade Area [NAFTA] dominated

by the USA, during 2009. The [product-wise analysis for key markets is

given in the following sections].

Middle East countries which form the main export market for Sri Lankan

tea has absorbed 10% [in terms of value] of our total exports.

Despite the Free Trade Agreements with India and Pakistan, Sri Lanka’s

exports to SAARC countries remained low at 6%, while exports to other

Asian countries accounted for 9% of total exports of Sri Lanka. Exports to

CIS countries, which are our main importers of tea, absorbed only 4% of our

total exports in 2009.

Exports to EU Region

The Table below presents Sri Lanka’s exports to the EU region, which

absorbed nearly 38% of total exports [in value terms] of Sri Lanka.

Sri Lanka’s exports to EU region, which grew by 4.8% in 2008 [in value

terms], dropped by 9.4% in 2009.

Table 2 : Exports to EU region during 2007, 2008 & 2009

US$ Mn

Product

2007

2008 2009

Share Value Growth Value Growth

Garments 1424.37 1601.98 12.47% 1629.76 1.73% 59.6%

Diamonds 260.60 267.05 2.48% 227.25 -14.90% 8.3%

Frozen fish 92.96 105.28 13.25% 118.37 12.43% 4.3%

Tyres & tubes 152.42 156.01 2.36% 85.04 -45.49% 3.1%

Transport

equipment and

parts

40.80 50.81 24.53% 51.10 0.57% 1.8%

Apparel

accessories

46.14 44.16 -4.29% 44.92 1.72% 1.6%

Tea in bulk 57.93 55..60 -4.02% 35.83 -35.56% 1.3%

Tea packets 25.25 35.03 38.73% 34.54 -1.40% 1.3%

Page 33: EDB Strategic Plan 2011-2015

27

Product

2007

2008 2009

Share Value Growth Value Growth

Electrical

machinery and

parts

64.76 45.75 -29.36% 32.32 -29.36% 1.2%

Others 711.66 654.89 -7.98 475.11 -27.45% 17.5%

TOTAL 2876.89 3016.56 4.85% 2734.24 -9.36% 100.0% Source : Sri Lanka Customs

The above Table also reveals that nearly 84% of total export earnings from

the EU region were derived only from nine products, and garments alone

accounted for nearly 60%of our total export earnings derived from the EU

region. Garment exports to the EU region registered a marginal growth of

1.7% in 2009. Except from frozen fish which grew substantially by 12.4%,

earnings from other key products dropped during this period. Tyres &

tubes [-45.5%], tea in bulk [-35.6%], diamonds [-14.9%] and electrical

machinery & parts [-29.4%] dropped significantly while tea packets

registered a marginal drop of 1.4% in 2009.

Despite the EU-GSP plus concessions available to Sri Lanka, exports to the

EU region performed poorly during 2009, reflecting the consequences of the

global economic meltdown.

Exports to the USA

The Table below gives the export performance by products in the USA

market, which accounted for nearly 92% of total export earnings of Sri

Lanka to the NAFTA region and 23% of total export earnings of Sri Lanka

during 2009.

Nearly 81% of earnings from total exports to the USA were derived only

from one single product, i.e., garments. Exports of garments to the USA

declined substantially by 13.4% contributing to an overall negative

performance of 15.7% in the USA market.

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28

Table 3 : Exports to USA during 2007, 2008 & 2009

US$ Mn

Product

2007

2008 2009

Share Value Growth Value Growth

Garments 1570.43 1484.12 -5.50% 1285.16 -13.41% 80.8%

Tyres & tubes 79.42 80.99 1.98% 59.42 -26.63% 3.7%

Apparel

accessories

31.58 34.20 8.30% 33.51 -2.02% 2.1%

Gems 44.49 43.01 -3.33% 23.36 -45.69% 1.5%

Activated carbon 12.41 16.37 31.91% 18.19 11.12% 1.1%

Plastic products 22.82 22.03 -3.46% 14.45 -34.41% 0.9%

Articles of

unhardened

rubber

10.15 18.00 7.34% 11.25 -37.50% 0.7%

Cinnamon 8.13 8.52 4.80% 7.74 -9.15% 0.5%

Jewellery 8.22 6.11 -25.67% 7.21 18.00% 0.4%

Ceramic &

porcelain

products

11.35 9.89 -12.86% 6.73 -31.95% 0.4%

Others 180.45 161.75 -10.36% 122.28 -24.40% 7.9%

TOTAL 1979.45 1884.99 -4.77% 1589.30 -15.69% 100.0% Source : Sri Lanka Customs.

Except for earnings from activated carbon [11.1%] and jewellery [18%],

which recorded substantial positive growth rates, the other main sectors

declined during this period. Reduced export earnings from tyres & tubes [-

26.6%], apparel accessories [-2%], gems [-45.7%], plastic products [-34.4%],

articles of unhardened rubber [-37.5%], cinnamon [-9.15%] and ceramic

and porcelain [-31.9%] caused the overall poor performance of Sri Lanka’s

exports in the USA market.

Exports to India

The Table below gives the export performance in the Indian market by

major products during 2009.

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29

Exports to India which accounted for 4.6% of the total export earnings of Sri

Lanka declined significantly by 22% in spite of the preferential access

granted under the Indo-Sri Lanka Free Trade Agreement [ISFTA].

Exports to India have been declining since 2007 due mainly to restrictions

imposed on imports of “Vanaspathi” by India and exports of copper waste

& scrap by Sri Lanka.

The 11 main products exported to India, which accounted for nearly 54% of

total export earnings derived from India, five sectors registered negative

growth rates, electrical machinery & parts [-43%], pepper [-15%], paper

pulp [-32%], woven fabrics [-14%], copper & copper products [-19%] and

cloves [-66%].

Table 4 : Exports to India by Products 2007, 2008 & 2009

US$ Mn

Product

2007

2008 2009

Share Value Growth Value Growth

Electrical

machinery & parts

49.31 51.19 3.81% 29.30 -42.76% 9.0%

Machinery & parts 9.30 19.11 105.48% 27.97 46.36% 8.6%

Sheet rubber 9.60 0.75 11.98% 20.39 89.67% 6.3%

Ships & boats 14.80 15.04 1.62% 18.41 22.41% 5.7%

Pepper 19.95 17.64 -

11.58%

14.98 -15.08% 4.6%

Pulp 15.28 19.00 24.35% 13.00 -31.58% 4.0%

Woven fabrics 15.91 14.06 -

11.63%

12.10 -13.94% 3.7%

Copper & copper

products

27.91 13.61 -

51.24%

11.05 -18.81% 3.4%

Glass & glassware 2.06 3.97 92.72% 10.82 172.54% 3.3%

Cloves 8.38 30.96 269.45% 10.42 -66.34% 3.2%

Garments 4.18 5.16 23.44% 6.81 31.98% 2.1%

Others 338.96 218.07 -35.66% 149.60 -31.39% 46.1%

TOTAL 515.64 418.56 -18.83% 324.85 -22.39% 100.0% Source : Sri Lanka Customs.

Page 36: EDB Strategic Plan 2011-2015

30

However, earnings from general machinery & parts [46%], sheet rubber

[89%], ships & boats [22%], glass & glassware [173%] and garments [32%]

grew during this period.

It is also important to note that despite the concessions granted for tea and

garments under ISFTA, the performance of these sectors in the Indian

market was minimal. However encouragingly, export earnings from these

two products to India, i.e., garments [32%] and bulk tea [233%] increased

during 2009.

Exports to Pakistan

The Table below illustrates the export performance by products in the

Pakistan market, which absorbed 0.8% of total exports of Sri Lanka in 2009.

The table indicates that earnings from exports to Pakistan dropped by 22.3%

during the period 2009. It also reveals that 75% of earnings from total

exports to Pakistan were derived from only 11 products, most of them in

primary form.

This reflects that Sri Lanka has not yet geared itself to exploit the full

potential of the Pakistan market, utilizing the Pakistan-Sri Lanka Free Trade

Agreement [PSFTA].

Table 5 : Export Performance of Key Products 2007, 2008 & 2009

US$ Mn

Product

2007

2008 2009

Share Value Growth Value Growth

Sheet rubber 10.21 13.18 29.09% 9.87 -25.11% 17.8%

Betel leaves 4.06 6.61 62.81% 5.95 -9.98% 10.7%

Desiccated coconut 4.31 2.34 -45.71% 5.06 116.24% 9.1%

Tea in bulk 1.54 3.81 147.40% 4.75 24.67% 8.6%

Coconut fresh nuts 3.05 2.51 -17.70% 3.96 57.77% 7.1%

Copra 10.50 12.87 22.57% 3.41 -73.50% 6.1%

Crepe rubber 2.78 3.51 26.26% 1.63 -53.56% 2.9%

Woven fabrics 0.50 0.99 98.00% 1.56 57.58% 2.8%

Tyres & tubes 0.77 0.58 -24.68% 1.55 167.24% 2.6%

Block rubber 1.13 1.63 44.25% 1.34 -17.79% 2.4%

Page 37: EDB Strategic Plan 2011-2015

31

Product

2007

2008 2009

Share Value Growth Value Growth

Pepper 2.09 1.02 -57.20% 1.24 21.57% 2.2%

Others 14.44 122.33 54.63% 15.15 -32.15% 27.5%

TOTAL 55.38 71.38 28.89% 55.47 -22.29% 100.0%

Source : Sri Lanka Customs.

Export earnings from sheet rubber [-25%], betel leaves [-9.98%], copra [-

73%], crepe rubber [-53.56%] and block rubber [-17.8%] declined

substantially during this period.

However, earnings from exports of desiccated coconut [116%], bulk tea

[24.6%], coconut fresh nuts [57.8%], woven fabrics [57.6%], tyres & tubes

[167%] and pepper [21.6%] increased in 2009.

Balance of Trade

The performance of external trade during the period 2007 to 2009 is

illustrated in the following graph.

EXTERNAL TRADE PERFORMANCE - 2007 - 2009

7640 81377084

11297

14008

9883

-3657

-5871

-2799

-10000

-5000

0

5000

10000

15000

20000

2007 2008 2009

Year

Val

ue

[US

$ M

n]

6.5%

24%

-12.9%

-29.4%

Page 38: EDB Strategic Plan 2011-2015

32

Earnings from exports and expenditure on imports increased by 6.5% and

24% respectively in 2008. In contrast, both exports and imports of Sri Lanka

declined substantially by 12.9% and 29.4% respectively during 2009.

Accordingly, the trade deficit decreased by 52% in 2009 compared to that of

2008. However, it is observed that the decline in the value of imports in

2009 was mainly an outcome of reduced expenditure on the import of

intermediate goods [-32%] and investment goods [-27%]. This reflects the

impact of the global economic crisis on the economic activities of Sri Lanka.

Prospects for 2010

Encouragingly, the global economy has been recovering slowly since late

2009 much quicker than anticipated. Accordingly, in 2010, world output is

expected to rise by 4% with a 3.3% growth in advanced economies and 6%

growth in emerging and developing economies. China and India are

projected to grow by 10% and 7.7% respectively in 2010 which are well

above the estimated world economic growth. This positive development in

the global economy will lead to an improved demand for products and

services of Sri Lanka in the international markets.

China and India have emerged as high performing economies and Sri

Lanka is in an advantageous position if the appropriate strategies are

adopted to capitalize on the concessions granted under the ISFTA and

APTA Trade Agreements.

In this backdrop, Sri Lankan exports are projected to grow by 14% - 15% in

2010. However, the slow pace of global economic recovery and rising

competition in the international market are posing challenges to this export

outlook.

Conclusion

At present, the export sector of Sri Lanka is experiencing a severe set-back

due to depressed global demand, decreased competitiveness caused by

escalating costs of production and low productivity. Consequently, the

sector registered a disappointing negative growth rate of 12.9% during 2009.

Exports to almost all the markets performed poorly while export earnings

from key product sectors declined sharply during this period. However,

export earnings have shown an improvement during the latter part of 2009.

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33

Considering the vital importance of the export sector to the national

economy which contributes nearly 25% to the GDP, it is important to

sustain the growth of the sector by addressing the demand-side factors that

emerged as a result of the on-going global recession and supply-side

constraints which adversely affected the competitiveness of Sri Lankan

export products and services. It is therefore, important to pursue export

development strategically and proactively at this juncture in order to arrest

the present declining trend and to exploit the advantages of trade

opportunities that are expected to arise with the recovery of global

economic conditions.

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34

Major Projects Implemented by EDB, 2007 - 2009

The Sri Lanka Export Development Board, Sri Lanka’s apex state organization for

the promotion and development of exports, implemented an array of

development programmes for the development of the export sector during the

period under review. A brief note on the key projects implemented during this

period is given below.

Implementation of Budget Proposals

a] Agro Export Zones

Under this programme, the following projects were implemented covering

the Eastern, North Western, Southern and North Central Provinces of the

country.

. Turmeric Cultivation Project in Ampara District with a farmer cluster

of 200. Under the first phase, 197 farmers in the selected areas of the

district have cultivated turmeric in an extent of 38.65 acres. A pilot

project to cultivate turmeric seed in 15 acres has been initiated.

. Cultivation of Pineapple for Export in Ampara District with the

participation of 200 farmers. The project aimed at distributing Rs. 1.2

Mn. pineapple suckers to cultivate 200 acres and up to now 146,817

suckers have been distributed among the selected farmers in the district.

. Introduction of Long-line Technology to Improve the Quality of Fish

Catch in Kalmunai : 50 multi-day boat owners were selected with the

assistance of the Department of Fisheries. The selected boat owners

were given training in long line technology and on-board handling. 50

long lines with 200 hooks were distributed among them and a floating

pier was also installed. Arrangements have been made to distribute 50

GPS to the selected boat owners.

. Breeding & Rearing of Ornamental Fish for Export in Polonnaruwa :

The first and second phases of the project have been completed and farm

equipment was distributed among 100 selected farmers. Under the third

phase of the project, 125 farmers have been selected for assistance.

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35

. Cultivation and Processing of Foliage & Cutflowers in the North

Western Province with a cluster of 500 growers. The farmers selected

for the project have been trained. Under the first phase, it is planned to

establish 100 anthurium net houses and 100 foliage net houses. 50 net

houses for anthurium have been erected and arrangements have been

made to erect/construct the balance 50 net houses and also 100 net

houses for foliage to the selected growers. Preliminary work on

establishing a central facility for the project is being carried out.

Construction of a road to the project has been partly completed under

the “Maga Neguma” programme.

. Upgrade Quality Standards of Cinnamon Peeling in the Southern

Province : Out of the 20 GMP Centre planned under the project, 10

Centres have already commenced operation and work related to the

balance 10 Centres is being completed. In addition, arrangements have

been made to set up another 11 GMP Centres in the province.

. Cultivation of Fruits & Vegetable for Export in the Hambantota

District: This programme is to be implemented through the

Tissamaharama EPV and an extent of 19 acres has already been leased

and land preparation work has also been completed. Action has been

taken to cultivate mango, papaya, banana, drumstick and sesame in the

selected area.

b] Integrated Model Project Programme [IAMP]

Under this programme, 45 agricultural projects have already commenced

operations in Anuradhapura, Kurunegala, Matale, Nuwara Eliya, Colombo,

Gampaha, Kalutara, Hambantota, Ratnapura, Badulla, Galle and Kandy

districts covering products such as fruits & vegetables, coconut fibre

products, organic products, spices, cut flowers & foliage and mushroom.

c] Upgrading Giftware & Toy Sector

This project aims at developing a core group of export ready SMEs

manufacturing giftware to niche export markets. Under this programme, 25

SMEs have already been developed and 120 new designs introduced.

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36

Under the second stage, 33 SMEs were selected and the product / design

development phase was completed with the technical expertise of a

Philippines consultant. The marketing phase of the project was also carried

out at the “Hands Lanka – 2009” exhibition in Kandy and the Kungmin

Trade Fair in China.

d] “Dahas Diriya” Investment Support Scheme

The objective of the “Dahas Diriya” programme is to reward exporters of

non-traditional value added products for their performance and to

encourage them to invest in export related activities. Under this

programme, 74 exporters have been granted Rs. 190 Mn. in cash and in the

form of Export Development Certificates, which could be encashed against

the export oriented investment activities.

e] National Organic Certification Programme

With the objective of facilitating the issuing of organic certification to

develop the organic production base in Sri Lanka a National Organic

Certification Body under the name of National Organic Certification

[Guaranteed] Ltd. [NOCGL] was established in collaboration with EU &

GTZ. Under the second stage of the project, EDB is in the process of

establishing a National Organic Certification Authority [NOCA] as a

separate body established under the EDB Act to facilitate all matters

connected with the export of organic products.

f] Establishment of Quality Management Systems

This programme is aimed at assisting producers and exporters of agri

products to obtain standards such as GAP, GMP, HACCP, ISO 22000, etc.

required to enter the international market. Proposals submitted by 21

companies for assistance have been approved and six were finalized for

payments under the scheme.

g] Development of Rice-based Products

An assistance scheme to encourage enterprises engaged in food processing

to promote and export innovative / convenient food products from rice was

implemented and three companies were selected for assistance.

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37

Integrated Product/Supply/Market Development Programmes

The EDB conducted integrated product /supply / market development

programmes for the development of priority sectors, i.e., fruits &

vegetables, cut-flowers & foliage, spices & allied products, coconut based

products, food & beverages, fish products, ornamental fish, rubber

products, gem & jewellery, garments, leather & footwear, giftware & toys,

wooden, and paper products, electronic & light engineering products and

Information & Communication Technology [ICT] & professional services.

Major programmes are listed below:

- Cinnamon Brand Promotion Programme

- Image Building & Value Survey for ICT Sector

- FSC Certification Scheme for Wooden Products

- Quality Improvement in export of Fish Products

- Gem & jewellery development programme

- Product development programme for “kithul” products

- A web portal for the Professional Service sector

- Development of Ayurvedic services

- Mushroom Development Programme

- Technology upgrading programmed for Foundry industry

- Development of Boat building industry – organized the “Boat

Show”

- Design / market development programme for gems &

jewellery (SME Craftmen)

Market Development Programmes

The following market development programmes were carried out to

consolidate the position in existing markets, to penetrate into new markets

and also to reap the maximum benefits from the preferential trade

agreements.

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38

. Organizing Sri Lanka’s Participation in International Trade Fairs

During the period under review, EDB organized Sri Lanka’s participation in

93 overseas trade fairs with 465 exporters. These product and market

specific trade fairs were organized in Germany, Japan, the USA, Singapore,

Spain, China, India, Hong Kong, the U.K., U.A.E., Egypt and Malaysia.

. Single Country Exhibitions

EDB successfully organized three single country exhibitions in China,

Pakistan and China during this period.

. Organizing Local Trade Exhibitions

EDB also organized local trade exhibitions such as “Leather & Footwear

Exhibition”, “Boat Show”, “Ruhunu Ran Ridee”, “Ruhunu Beeralu

Collections” and “Ruhunu Expo” during this period.

In addition, EDB organized the participation of exporters in the local

exhibitions organized by other institutions, i.e., “Dayata Kirula”, “Intrad

Exhibition”, “Facets” & “Lustre” Gem & Jewellery Exhibitions.

. Sri Lanka Centre in Chennai

The Centre was established in 2004 with 17 Sri Lankan export companies to

display and sell Sri Lankan products and services targeting the middle and

upper segments of the Indian market.

. Permanent Display Centre at BIA

The Centre was established in 2008 and four Sri Lankan companies are

displaying their products there.

Regional Export Development Programmes

With the objective of harnessing rural resources and skills to enhance

exports, an array of regional export development programmes was carried

out by EDB through its provincial network in Kandy, Kurunegala, Galle,

Hambantota, Badulla, Ampara and Jaffna. These programmes include

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39

supply / skills / entrepreneurship development programmes, product /

quality upgrading programmes, market & technical exposure programmes,

provision of e-commerce, trade information and advisory services.

. The major programmes implemented are listed below :

- Cultivation of kiriala in the Southern Province for export.

- Product development programme for Handicrafts in Weligama.

- Spice development programme in Kandy district.

- Hapuvida Handicraft Development Programme in Kandy

district.

- Brassware Development programme in Pilimatalawa.

- Jewellery Craftsmen programme in the Ratnapura district

. “Uthuru Wasanthaya” - Under this programme, an EDB coordinating

office was established in Jaffna and several training / awareness

programmes were conducted. Financial assistance was granted to a

company engaged in fruit processing to enhance quality and productivity.

. “Neganahira Navodaya” – In addition to the three projects implemented

under the Agri Export Zone Project in the Eastern Province, three skill

development programmes were conducted for entrepreneurs in the

Province.

Other programmes carried out during the period

- Organized Presidential Export Awards –

- Provision of Trade Information & Advisory Services

- Provision of e-Commerce Services

- Publicity for export related publications - “Expo News”,

“Apanayana Puwath”, “Policy Briefing” & Export

Performance Indicators”.

- Conducting “Exporters’ Forum” to resolve problems of

exporters.

- Operation of the Simplified VAT Scheme.

- Development of floriculture for exports in the North Western

Province.

- Development of handicrafts, handloom & lifestyle products in

the North Western Province.

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40

- Upgrading handloom & the “beeralu” lace industry in

Southern Province.

- Development of kithul products for export in Kotmale.

- Vanila Development Project in the Central Province.

- Cultivation of anthurium for export in Gampaha &

Kurunegala districts.

- Cultivation of vegetables under poly tunnels in Nuwara Eliya

district.

- Operation of EDB Cess Refund Scheme.

- Issuing recommendations to Indirect Exporters to open

Foreign Currency Accounts.

- National Packaging Centre – conducting training / awareness

programmes and advisory services on issues related to export

packaging.

- Skills development, awareness and training programmes at

regional level.

- Conducting courses on “Import & Export Procedures” and

“Operational Aspects of International Trade”.

- Registration of Exporters.

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41

1100.. IIDDEENNTTIIFFIICCAATTIIOONN OOFF KKEEYY PPRROODDUUCCTT SSEECCTTOORRSS ((KKPPSS))

The following matrix helps to categorize individual export sectors in terms of

their size and growth potential.

As a key aspect of the strategic plan, the identification of Key Product Sectors

(KPS) as opposed to Other Product Sectors (OPS) will help to concentrate

energies and resources of EDB, rather than spread them thin, over a wide range

of exports.

The identified roles of EDB with respect to the KPS will help to markedly raise

the level of export performance. As regards OPS, the main attempt is to sustain

the current level of performance. EDB will, however, not neglect any sector. The

attempt is to focus on sectors that will help achieve the overall expectations of

EDB. For a detailed analysis, leading to the identification of Key Product Sectors (KPS), please

refer Annex III.

Current Size

Large Small

Hig

h

- Apparels

- Tea

- Rubber & rubber based products

- Diamonds, gems & jewellery

- ICT / BPO/KPO

- Food & other beverages

- Spices & allied products

- Fish & fishery products

- Coconut & coconut based products

- Electrical & electronics

- Petroleum products

- Printing and stationery

- Boat building

- Professional services

Lo

w

- Chemical & plastic products - Ceramics & other mineral based

products

- Fruits & vegetables

- Toys, games & sports

- Giftware & lifestyle products

- Base Metal products

- Footwear & leather products

- Wooden products

- Floriculture

- Ornamental fish

- Handloom

Current Size : Measured in terms of contribution made by each sector to total exports.

Potential Growth: Measured in terms of export growth rates and trends.

Pot

enti

al G

row

th

41

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42

11. EXPORT TARGETS FOR KEY PRODUCT SECTORS (KPS) 2010-2015

Value in US$ Mn.

No. Key Product

Sector

2009

2010

2011

2012

2013

2014

Target

Turnover

2015

01 Apparel

3120 3252 3389 3533 3682 3838 4000

02 Tea

1186 1500 1700 1900 2100 2300 2500

03 Rubber &

rubber based

products

485 547 617 696 786 886 1000

04 Diamonds,

gems &

jewellery

400 465 542 631 734 856 1000

05 ICT/BPO/KPO

245 309 392 495 626 791 1000

06 Food & other

beverages

164 220 298 403 546 738 1000

07 Spices &

allied

products

120 152 193 245 311 394 500

The above targets have been determined on the basis of discussions with relevant agencies and

product/market officers of the EDB.

Export targets for Other Product Sectors (OPS) 2010-2015, please refer Annex IV.

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43

12. TRIGGERS/BARRIERS ANALYSIS FOR KEY PRODUCT SECTORS (KPS)

In this analysis, key triggers, (i.e., environmental and organizational factors that

will help EDB to play its roles and achieve its objectives) and barriers (i.e.,

environmental and organizational factors that will hinder the efforts of EDB in

playing its roles and achieving its objectives) are listed, followed by specific

actions to be taken in order to leverage the triggers and/or overcome the barriers.

For a detailed analysis of the triggers and barriers, and related organizational functions

and actions, please refer Annex V.

13. KEY ACTION AREAS OF KEY PRODUCT SECTORS (KPS)

Key Action Areas (KAA) based on the Trigger/Barrier Analysis of seven

identified Key Products Sectors (KPS) are given below. Specific and detailed

programmes for each of the Action Areas will be featured in EDB’s Action Plan

document. Moreover, the Action Plan will include Key Performance Indicators (KPI)

with regard to each of the key programmes of action and a monitoring mechanism to

achieve predetermined results. A formal review of EDB’s performance vis-à-vis KPI will

be made on a quarterly basis.

KPS1 : Apparel

1.1 Message and brand to highlight compliance and promotion of

“Garments without Guilt “. (Promoter) 1.2 Organize trade exhibitions/trade events in Sri Lanka such as EXPO, Design

Festival, etc. (Promoter) 1.3

Carry out selected promotion/advertising campaigns to highlight strengths

of “Sri Lanka Apparel”. (Promoter) 1.4 Analyse and disseminate market intelligence. (Knowledge Provider) 1.5 Organize selected market promotion activities. (Promoter) 1.6 Encourage Fashion Industry Development. (Promoter)

Set up a fashion/design centre to facilitate industry players in product and

design development and brand management. 1.7 Provide training and skills development programmes for workers on high-

tech production systems and design development. (Knowledge Provider) 1.8 Conduct awareness programmes to promote the dignity of the profession

and thus encourage workers. (Knowledge Provider/Promoter)

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1.9 Implement design/product development programmes and overseas design

training for local designers. (Promoter) 1.10

Conduct specific training programmes for improving technical/managerial

skills. (Knowledge Provider) 1.11 Implement assistance schemes to upgrade production lines of SMEs for

industry compliance. (Promoter) 1.12

Negotiate with financial institutions to provide financing at concessionary

terms for exports. 1.13 Co-ordinate with relevant agencies to expedite the EDI system to

rationalize import/export procedures. (Facilitator) 1.14 Facilitate and provide utilities at rates through which companies can be

competitive in terms of cost vis a vis regions. (Indian/Bangladesh, Vietnam,

Pakistan) (Facilitator) 1.15 Initiate discussions with relevant institutions to introduce the use of

alternative energy sources. (Facilitator) 1.16 Facilitate to encourage investment for backward integration. (Set up textile

mills and accessories manufacturing plants, etc.) (Facilitator)

KPS2 : Tea

2.1

Facilitate value addition through introduction of technology for

development of new products. (Facilitator) 2.2 Promote “Ceylon Tea” as:

- First Ozone Friendly Tea in the world.

- Cleanest tea in the world in terms of pesticide residues. (Promoter) 2.3 Promote tea as a health supportive drink as well as other applications in the

pharmaceuticals and beauty care industry. (Facilitator) 2.4 Promote production of “Organic Tea”. (Promoter/Facilitator) 2.5 Conduct market surveys in niche markets to promote “Pure Ceylon Tea”.

(Knowledge provider) 2.6 Disseminate information on research/study findings and market

intelligence. (Knowledge Provider) 2.7 Organize Road Shows in selected overseas markets for Ceylon Tea, with the

support of Sri Lanka Missions, overseas. (Promoter) 2.8 Facilitate organic certification through the National Organic Certification

Authority (NOCA). (Facilitator)

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KPS3 : Rubber & Rubber based Products

3.1 Co-ordinate with relevant agencies to increase the supply of raw material.

( natural rubber)

- Introduce rubber growing in non-traditional areas. (Facilitator)

- Increase productivity and latex extraction. (Facilitator) 3.2 Introduce advanced technologies to selected laboratories based on a

industry surveys. (Promoter) 3.3 Negotiate with relevant agencies to make available energy at competitive

rates. (Facilitator) 3.4 Increase productivity through :

- Assistance schemes to implement export oriented testing and

certification programmes. (Facilitator)

- Promotion of investment in export-oriented Research &

Development. (Facilitator)

- Assistance to upgrade technology on manufacture of value added

products. (Promoter/Facilitator)

- Creation of awareness of new technology. (Knowledge

provider/Facilitator) 3.5 Carry out targeted and product-specific marketing activities.

- Improve market intelligence by providing information on market

trends, new products, tariff and non tariff barriers, etc.

- Implement integrated product and market development

programmes.

- Launch focused market development programmes in identified

markets. (Promoter) 3.6 Implement brand development initiatives to reposition “Sri Lanka Rubber”.

(Promoter) 3.7 Provide technical exposure to SME manufacturers. (Promoter/Knowledge

Provider)

KPS4 : Diamonds, gems and jewellery

4.1 Implement assistance schemes to encourage exporters to go in for high

value added products. (Promoter) 4.2 Reactivate registration of Geographic Indicators for Ceylon Sapphire.

(Facilitator)

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4.3 Increase the availability of State and plantation lands for gemming.

(Facilitator) 4.4 Expedite the commencement of a national gem deposit survey. (Facilitator) 4.5 Carry out skills development programmes to develop competencies in

producing value added products. (Facilitator) 4.6 Assist to increase exports of provincial SME gems and jewellery products

through training, awareness, market development and exposure

programmes. (Promoter) 4.7 Expedite establishment of an internationally accepted gem testing

laboratory.(Facilitator) 4.8 Initiate research to increase mining productivity with appropriate

technology. (Facilitator) 4.9 Provide collateral support for fixed and working capital by establishing

credit guarantee funds. (Facilitator) 4.10 Initiate dialogue to permit banks to grant loans for precious metal.

(Facilitator) 4.11 Advertise in reputed international gem and jewellery magazines.

(Promoter) 4.12 Negotiate bi-lateral gem trade agreements with other source-countries.

(Facilitator) 4.13 Provide high quality training. (Promoter) 4.14 Obtain services of experts to improve manufacturing and design

capabilities. (Knowledge Provider) 4.15 Launch an investment drive locally and internationally to attract investors

to establish/expand factories. (Promoter) 4.16 Develop a new “gem tourism” product including artisan villages, museums

and education. (Facilitator) 4.17 Designate an exclusive location in Colombo and in major resort areas for

retailing gems and jewellery for tourists. (Facilitator) 4.18 Popularize internationally accredited gem certification and hallmarking to

build consumer confidence. (Facilitator/Promoter) 4.19 Launch an international media campaign targeting both the trade and

consumers in selected markets. (Promoter) 4.20 Develop “FACETS SRI LANKA” as a major international event. (Promoter) 4.21 Organize prominent national pavilions at major trade fairs in target

markets. (Promoter) 4.22 Roll out a branding programme to position “Ceylon Sapphire” as a unique

and premium product offering. (Promoter)

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KPS5 : ICT/BPO/KPO

5.1 Carry out periodic export value analyses and global benchmarking studies

of Sri Lankan ICT/BPO industry.

Develop a mechanism in collaboration with Exchange Control Department

and Central Bank to obtain annual statistics for the sector. (Facilitator) 5.2 Find markets with British business practices and English as the basic

language to promote ICT/BPO sectors, utilizing ICT web portals and other

marketing techniques. (Promoter) 5.3 Select and promote programmes targeting niche market segments where Sri

Lanka has a competitive advantage.

Promote Sri Lankan ICT/BPO capabilities in untapped market regions

targeting strategic alliances. (Promoter) 5.4 Maintain a close relationship with Indian IT/BPO industry for mutually

beneficial ventures and alliances. (Promoter/Facilitator) 5.5 Communicate with universities and educational institutes to create

awareness of opportunities available in the ICT/BPO sector and encourage

the student community to develop ICT skills. (Facilitator/Advisor)

KPS6 : Food & other beverages

6.1 Develop a resource map (database) and promotional materials for the

sector. (Knowledge Provider) 6.2 Strengthen supply chain and enhance value chain efficiency. (Facilitator) 6.3 Assist industry to expand production capacity and modernize manufacturing

processes. (Facilitator) 6.4 Facilitate Research & Development programmes to produce innovative

products in collaboration with relevant stakeholders. (Facilitator) 6.5 Encourage and promote export-oriented investments through

public/private partnerships. (Promoter/Facilitator) 6.6 Provide up-to-date industry information and market intelligence.

(Knowledge provider) 6.7 Promote of food and beverages in the existing markets and new markets.

(Promoter) 6.8 Assist to obtain international quality standard certificates. (Promoter/

Facilitator) 6.9

Identify/certify the national origin of distinctive crops and flavours in

collaboration with professional food processing and technical institutes.

(Facilitator)

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KPS7 : Spices & allied products

7.1

Compile and disseminate up-to-date industry information including

market intelligence. (Knowledge Provider) 7.2 Facilitate and promote value addition through the introduction of new

technology. (Facilitator/Promoter) 7.3 Assist to improve value chain efficiency through upgrading the production

process to meet the international quality standards. (Facilitator) 7.4 Facilitate the introduction of high yield varieties in collaboration with the

related government institutions. 7.5 Organize skills development programmes to uplift the technical

knowledge of the workforce. (Promoter/Facilitator) 7.6

Assist to improve the efficiency and productivity of supply chain with

relevant stake holders. (Facilitator) 7.7 Encourage PPPs Investments for sector development. (Facilitator) 7.8 Launch international brand promotion campaign for Ceylon Cinnamon.

(Promoter)

- Trade Mark registration with National Intellectual Property (NIP) and

relevant foreign agencies. (Promoter)

- Establish a mechanism to obtain Geographical Indications (GIs) for

selected crops.(Facilitator/Promoter) 7.9 Organize market promotion activities to increase the market share in

traditional and new market. (Promoter) 7.10 Facilitate the establishment of centralized processing centres for spices.

(Facilitator)

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14. KEY ACTION AREAS OF OTHER PRODUCT SECTORS (OPS)

Key Action Areas based on the Trigger/Barrier Analysis of the Other Products

Sectors (OPS) are given below. Specific and detailed programmes for each of the

Action Areas will be featured in EDB’s Action Plan document. Moreover, the Action

Plan will include Key Performance Indicators (KPI) with regard to each of the key

programmes of action and a monitoring mechanism to achieve predetermined results. A

formal review of EDB’s performance vis-à-vis KPI will be made on a quarterly basis.

OPS1 : Fish & fisheries products

1.1 Assist the industry to comply with the standards, regulations, certifications

prescribed by the importing countries from time to time. (Facilitator) 1.2 Encourage organic farming of shrimp and other aquaculture products.

(Facilitator) 1.3 Encourage and assist to produce and export value added products in

convenient packs by adopting the latest technologies. (Facilitator) 1.4 Assist in the commercialization of fin fish/shell fish culture in cages and

ponds to increase aquaculture production and promote such products in the

international market. (Facilitator) 1.5 Encourage and assist existing boats/vessels to adopt modern technology to

catch fish in an eco friendly manner and boost exports. (Facilitator) 1.6 Participate actively in major seafood exhibitions to increase the market share

in all major markets and new markets. (Promoter) 1.7 Work with international agencies to educate stakeholders on the

international market situation and build capacity to overcome non-tariff

barriers. (Facilitator/Knowledge Provider) 1.8 Co-ordinate with the relevant authorities to review existing regulations to

facilitate the import of high value edible fish species for aquaculture

purposes. (Facilitator)

OPS2 : Coconut & coconut-based products

2.1 Establish and launch a data base on “Sri Lankan coconut products”.

(Promoter) 2.2 Create awareness to promote efficient domestic use of fresh coconut.

(Facilitator) 2.3 Facilitate “Good Manufacturing Practices” (GMP) among SME coir millers

to improve quality and productivity. (Facilitator)

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2.4 Introduce an appropriate energy efficient manufacturing system to reduce

cost of production in coir mills and processing centres. (Knowledge

Provider) 2.5 Provide seed capital to commercialize new and innovative products.

(Facilitator) 2.6 Disseminate information on market intelligence. (Knowledge Provider) 2.7 Encourage Research and Development (R & D) of value-added kernel

products. (Facilitator) 2.8 Launch skills development programmes to increase qualitative productivity

and to manufacture value-added fibre products. (Knowledge Provider) 2.9 Organize market promotion activities for coconut products in traditional

and new markets. (Promoter) 2.10 Facilitate obtaining patent rights for the manufacturing process of bristle

fibre locally and internationally and branding of “Sri Lankan Bristle Fibre”.

(Facilitator) 2.11 Brand Desiccated Coconut as “Sri Lankan DC” under geographical

demarcation. (Promoter) 2.12 Facilitate the increase of bristle fibre production for export. (Facilitator) 2.13 Conduct local & international market research programme to identify

market potential and enhance an international market for coconut products.

(Facilitator/Promoter)

OPS3 : Electrical & electronic products 3.1 Develop close relationships with electronic and ICT sector exporters by

periodic networking meetings and socializing events for transfer of

knowledge and mutually beneficial export efforts. (Facilitator) 3.2 Promote Sri Lanka as a sourcing country for electronic products by public

relation campaign including promotion of electronic sector web portal.

(Promoter) 3.3 Carry out programmes targeting niche market segments such as special

machining, PCB manufacturing, component manufacturing, sub assemblies,

etc. where Sri Lankan industry has a competitive advantage. (Promoter) 3.4 Create close relationships with Indian and Asian electronic industry for

forward and backward linkages for mutually beneficial ventures and

alliances. (Promoter/Facilitator)

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OPS4 : Printing & Stationery

4.1 Strengthen and up grade training institutes. (Facilitator/Policy Advisor) 4.2 Facilitate exchange of printing technology. (Facilitator) 4.3 Work towards making finance available at reasonable interest rates.

(Facilitator) 4.4 Address constraints faced in making available raw material required for the

industry. (Facilitator/Policy Advisor) 4.5 Facilitate backward and forward linkages. (Facilitator) 4.6 Carry out aggressive international market promotion programmes in key

markets. (Facilitator/Promoter)

OPS5 : Boat building

5.1 Develop infrastructure facilities at production yards to international

standards. (Facilitator) 5.2 Provide investment incentives/ soft loan facilities to develop infrastructure.

(Policy Advisor) 5.3 Attract investments to utilize lands with sea frontage to develop boat

building and ship repairing. (Promoter) 5.4 Take measures to reduce high tariff and various fiscal levies on raw material

and other production inputs and time-consuming and cumbersome

procedures. (Policy Advisor/Facilitator) 5.5 Create a level playing field for both BOI and non BOI companies in regard to

the import of inputs for the boat building industry after a proper study of

two systems. (Facilitator) 5.6 Create awareness among the business community of the market potential

and market opportunities for the boat building sector. (Promoter) 5.7 Implement skills development programmes together with Boat Building

Technology Improvement Institute (BTI) for improving skills to match

current requirements in the international market. (Knowledge Provider) 5.8 Create awareness internationally about Sri Lanka as a country of Boat

Building by

- Organizing Sri Lankan participation at overseas Boat Shows.

- Assisting the “Boat Show Sri Lanka”. (Promoter)

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OPS6 : Professional services 6.1 Benchmark professional services and establish a mechanism to ascertain the

value of service exports. (Knowledge provider) 6.2 Conduct awareness programmes for the industry on developments in

exchange control regulations, tax structure for services, global trends in

service exports, benefits of service exports, importance of quality

certification, etc. (Facilitator) 6.3 Maintain a dynamic market information centre for services including

international tenders, Request for Quotations (RFQs), details of important

non-resident Sri Lankans, etc. as a part of the web portal.

(Facilitator/Knowledge Provider) 6.4 Promote professional services in markets using British business practices

and English as the business language using appropriate marketing tools

including a professional services web portal. (Promoter) 6.5 Launch marketing promotion programmes targeting niche market segments

where Sri Lanka industry is strong and in untapped market regions

targeting strategic alliances. (Promoter)

OPS7 : Ceramic & other mineral-basedproducts 7.1 Introduce measures to reduce the high cost of energy by

- Making available energy sources (gas, electricity, and diesel) at

Internationally competitive prices. (Facilitator)

- Introducing alternative energy sources / efficient energy management.

(Facilitator)

- Developing a mechanism to finance technological improvements to

reduce energy costs. (Policy Advisor/Facilitator) 7.2 Develop zoning of land and introduce efficient mining procedures to make

available quality raw materials to the industry. (Facilitator) 7.3 Implement productivity improvement programmes to increase global

competitiveness. (Promoter/Knowledge Provider) 7.4 Develop support services required by the industry. (gift packaging, etc.)

(Promoter) 7.5 Strengthen R & D facilities in co-ordination with the State, the private sector

and universities. (Facilitator) 7.6 Develop brand identity and quality recognition for the industry by

- Organizing focused market promotion activities in identified markets to

create a country image as a supplier of quality ceramics.

- Assisting selected exporters to develop and promote individual brands.

(Promoter)

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OPS8 : Fruits & vegetables

8.1 Encourage commercial cultivation in diverse agro ecological zones to meet

required quantities for the international market. (Facilitator) 8.2 Introduce a packaging system and proper transport system to minimize post

harvest losses and improve product quality. (Knowledge Provider) 8.3 Assist exporters to explore opportunities in the un-tapped markets.

(Promoter) 8.4 Facilitate to operate the perishable cargo terminal to minimize handling cost,

time and maintain quality. (Facilitator) 8.5 Facilitate to obtain international standards and quality certifications.

(Facilitator) 8.6 Develop a resource map (database) for the sector. (Knowledge Provider) 8.7 Introduce centralized farming systems with modern technology –

public/private partnerships. (Facilitator) 8.8 Encourage and promote value added products. (Facilitator) 8.9 Facilitate introduction of an appropriate crop insurance scheme.

(Facilitator)

OPS09 : Toys, games & sports 9.1 Promote Sri Lanka as a country producing quality toys adhering to

international standards. (Promoter) 9.2 Initiate market diversification for Sri Lankan toys. (Promoter) 9.3 Develop a second tier of toy exporters and increase the number of toy exporters.

(Facilitator/Knowledge Provider/Promoter)

OPS10 : Giftware & lifestyle products 10.1 Develop of a database (software package) for the giftware industry.

(Facilitator/Promoter) 10.2 Develop a core group of export-ready SMEs for the purpose of catering to

niche export markets. (Facilitator) 10.3 Initiate market diversification for Sri Lankan giftware & lifestyle products to

promote in the niche export market. (Promoter) 10.4 Develop a gift box manufacturing industry. (Facilitator /Knowledge

Provider / Promoter)

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OPS11 : Base metal products 11.1

- Carry out targeted and product-specific marketing activities. (Promoter)

- Provide market intelligence. (Knowledge Provider)

- Position Sri Lanka as a reliable source of quality Light Engineering

products. (Promoter) 11.2 - Develop and carry out programmes to upgrade technology and design

development. (Knowledge Provider/Promoter)

- Co-ordinate with relevant agencies to encourage Foreign Direct

Investments (FDI) and Joint Ventures. (Facilitator) 11.3 - Provide awareness on Testing, Certification and R&D for the industry.

(Knowledge Provider)

- Formulate and implement assistance scheme for certification. (Facilitator) 11.4 Initiate appropriate measures to build a strong local industry that will lead

to increased export potential. (Policy Adviser)

OPS12 : Footwear & leather products

12.1

Expedite relocation of tanneries and allow the tanneries to operate in the

existing locations without any obstructions, until the relocation project is

implemented. (Facilitator) Maintain the conducive policy environment prevailing at present. (Policy

Adviser) 12.2 Inaugurate image building programmes to promote the industry locally and

internationally:

- Organize a “Footwear and Leather Fair” as a major international

event.

- Organize inward buying missions.

- Advertise in selected international magazines.

- Carry out an effective publicity campaign. (Promoter) 12.3 - Develop and enhance competencies of the exporter community.

(Promoter)

- Organise technical exposure /productivity improvement

programmes for potential exporters. Carry out integrated product

and market development programmes.

- Develop export -oreinted SMEs and promote linkages between

SME’s and large scale exporters.

- Launch technology transfer and skill development programmes.

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12.4 Conduct product /market specific research studies and disseminate

information to business community. (Knowledge provider) 12.5 Organise appropriate international market promotion programmes.

(Promoter)

OPS13 : Wooden products

13.1 Activate Advisory Committees to discuss and address issues connected with

the wood-based industrialists. (Facilitator) 13.2 Complete the FSC Certification programme, initiated by the EDB and co-

ordinated by the IUCN. (Facilitator) 13.3 - Conduct awareness programmes to improve the quality of wood

treatment and timber seasoning.

- Conduct technology transfer programmes to introduce modern

machinery to improve production methodology and productivity.

- Obtain foreign expertise to improve wood finishing, particularly of

rubber wood.

- Organise skills development programmes to improve specific skills of

workers. (Knowledge Provider) 13.4 - Organise appropriate market promotion programmes.

- Take action to derive maximum benefits from the Indo Sri Lanka Free

Trade Agreement (ISLFTA).

- Secure the active involvement of Commercial Officers in promoting

Sri Lankan exporters.

- Implement a programme to highlight cost advantages accruing to

Indian importers for importing from Sri Lanka under FTA as against

importing from outside sources. (Promoter)

PS14 : Floriculture

14.1 Work with the National Committee of Floriculture Research and

Development to establish a National Policy for the floriculture sector.

(Facilitator) 14.2 Analyze and disseminate industry-related information and market

intelligence to the stakeholders. (Knowledge Provider) 14.3 Study the opportunities in emerging markets while strengthening the

position in existing markets and help exporters to successfully penetrate

these markets. (Knowledge Provider/Promoter)

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56

14.4 Take suitable measures to overcome country-specific tariff and non-tariff

barriers. (Facilitator) 14.5 Work with relevant authorities to develop a local certification system for

Good Agricultural Practices (Sri Lankan GAP - similar to Global GAP).

(Facilitator/Knowledge Provider) 14.6 Assist exporters to obtain environmental labels required to compete in the

export market. (Facilitator) 14.7 Enhance value chain competitiveness by improve supply chain efficiency.

(Facilitator) 14.8 Enhance productivity of the nurseries through the introduction of cost

effective production technology and training of workers. (Knowledge

Provider) 14.9 Expand the supply capacity of the industry by utilizing regional resources

through public/private partnership programmes and out grower systems.

(Facilitator/Promoter) 14.10 Make a study of new products suitable for different agro climatic conditions

within the country and source for mother plants and cultivation technology.

(Knowledge Provider)

OPS15 : Ornamental fish

15.1 Increase the supply of quality fish for exports by organizing supply

development programmes in the regions and build up linkages between

breeder clusters and exporters. (Facilitator) 15.2 Develop a resource map (database) for the sector. (Knowledge Provider) 15.3 Co-ordinate with relevant authorities to review the existing legislations and

to establish monitoring systems to facilitate the export of restricted species

bred in captivity. (Policy Advisor/Facilitator) 15.4 Organize training/exposure programmes to enhance supply chain efficiency

and productivity. (Knowledge provider) 15.5 Disseminate up-to-date technical information and market intelligence.

(Knowledge provider) 15.6 Encourage breeding and commercialization of marine and exotic species and

new varieties of fish for exports. (Facilitator) 15.7 Improve quarantine and holding facilities for freshwater and marine fish to

conform to international standards and to maintain quality. (Facilitator) 15.8 Resolve the problems encountered by exporters in collaboration with

relevant stakeholders. (Facilitator)

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15.9 Increase the current market share through market promotion activities and

promote new varieties at international and local fish competitions.

(Promoter)

OPS16 : Handloom

16.1 Conduct awareness programmes and workshops on the industry to attract

new entrepreneurs, provide training facilities through relevant government

bodies. (Knowledge Provider/ Promoter/Facilitator) Set up modern dying centres in the regions in collaboration with Provincial

Councils. (Facilitator) 16.2 Promote linkages between exporters and manufacturers. (Promote) 16.3 Assist the upgradation of machinery. (Facilitator) 16.4 Conduct productivity improvement programmes through master weavers;

obtain foreign expertise on design and product development.

(Facilitator/Promoter) 16.5 Organise buyer-seller meetings and international trade fairs.

(Facilitator/Promoter) 16.6 Organise appropriate market promotion activities such as participation at

international trade fairs/exhibitions, and inward buying missions.

(Promoter)

OPS17 : Chemical and plastic products 17.1 Introduce advanced technology among plastic industrialists. (Knowledge

Provider/Facilitator) 17.2 Provide training on mould making/maintenance. (Knowledge

Provider/Facilitator) 17.3 Carry out awareness programmes on productivity improvement, quality

requirements/certifications and value addition. (Knowledge

Provider/Facilitator) 17.4 Improve market intelligence by providing information on market trends,

products with export potential and on-tariff and non-tariff barriers.

(Knowledge Provider) 17.5 Position Sri Lanka as a capable supplier of quality plastic products in the

international market. (Promoter) 17.6 Carry out appropriate product and market development programmes.

(Promoter) 17.7 Make available energy at competitive prices. (Facilitator)

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15. BUILDING A TEAM OF EXCELLENCE AT THE EDB

Comprehensive and continuous Training and Development (T&D)

programmes for managerial and other staff members based on T&D needs

analyses, along with a robust reward mechanism, including both

intrinsic and extrinsic rewards, will help build a team of excellence at

EDB. Inter-departmental co-ordination and harmony will be a

cornerstone of the team-building endeavours of the organization.

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59

Annex I

Key Personnel

Post: Director-General

Qualifications: A Degree from a recognized University or equivalent

professional qualifications. Preference will be given to

holders of 1st or 2nd class degree or postgraduate degree in

Management/Business Administration.

A minimum of 12 years’ post-qualifying experience, of which at

least 3 years should be at Head of Department or General

Manager level in a recognized public/private sector or an

international organization.

Post: Director (Finance)

Qualifications: Full membership of the Institute of Chartered Accountants of Sri

Lanka, the Institute of Cost & Management Accounts, U.K. or an

equivalent qualification.

Not less than 08 years’ experience obtaining professional

qualification out of which at least 3 years at senior management

level in a recognized public/private sector organizational body.

Post: Director (Export Agriculture)

Qualifications: A graduate with not less than 12 years relevant post- qualifying

experience of which 5 years should be at senior management

level in the public/private sector or an International Organization.

Preference would be given to holders of 1st or 2nd class degree or

relevant postgraduate qualifications.

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Post: Director (Services)

Qualifications: A Degree from a recognized University or equivalent professional

qualification.

Preference will be given to holders of 1st or 2nd class degree or

postgraduate qualifications relevant to the job description and

possess not less than 12 years of post qualifying experience in the

field, of which at least 5 years should be at senior management

level in a recognized public/private sector or international

institute or agency.

Post: Director (Marketing)

Qualifications: A Degree from a recognized university or equivalent

professional qualifications. Preference will be given to holders of a

1st or 2nd class degree or a postgraduate degree or postgraduate

qualifications.

Not less than 12 years’ post-qualifying experience in a field related

to the job description, out of which at least 5 years should be

at senior management level in a recognized public/private

sector institute or agency.

Post: Director (Trade Information Service)

Qualifications: The position would be filled by a graduate with not less than 12

years’ postgraduate experience, including at least 5 years in a

senior management position in the public/private sector or an

international organization, with proven ability, leadership

qualities, initiative and professional skills. Preference would be

given to holders of 1st or 2nd class degree or relevant

postgraduate qualifications and at least 5 years’ experience in

market information gathering, processing and dissemination.

Familiarity with electronic data processing will be an advantage.

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Post: Director (Human Resource Development)

Qualifications: A graduate of a recognized university or equivalent

professional qualifications. Preference will be given to holders of

1st or 2nd class degree or post graduate degree in Management or

Business Administration.

A minimum of 12 years’ post-qualifying experience in personnel

management/training and development/entrepreneur

development of which at least 5 years should at senior

management level in a recognized public/private Sector or

international organization.

Post: Director (Policy & Planning)

Qualifications: A degree from a recognized University or equivalent

professional qualifications. Preference will be given to holders of

1st or 2nd class degree or postgraduate degree or postgraduate

qualifications.

Not less than 12 years’ post-qualifying experience in a field related

to the job description, out of which at least 5 years should be at

senior management level in a recognized public/private

sector institution.

Post: Director (TradenetSL )

Qualifications: A degree from a recognized university or equivalent

professional qualifications. Preference will be given to holders of

1st or 2nd class degree or postgraduate degree or postgraduate

qualifications.

Not less than 12 years’ post-qualifying experience in a relevant

field of which at least 5 years should have been at senior

management level in a recognized public/private sector

international institution.

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Post: Director (Product Management)

Qualifications: A degree from a recognized university or equivalent

professional qualifications. Preference will be given to holders of

1st or 2nd class degree or postgraduate degree or postgraduate

qualifications.

Not less than 12 years’ post-qualifying experience in a relevant

field of which at least 5 years should have been at senior

management level in a recognized public/private sector

international institution.

Post: Director –SMED

Qualifications: A degree from a recognized university or equivalent professional

qualifications or a corporate membership in a recognized

professional institution, pocessing not less than twelve (12) years

post qualifying experience in the relevant field at a management

level of which five (05) years should be at a senior management

level in a recognized public/private sector or international

institution.

Post: Deputy Director ( Trade Information Service, Marketing,

Policy & Planning, Product Management, SME)

Qualifications: A degree from a recognized university or equivalent

professional qualifications. Preference will be given to holders of a

1st or 2nd class degree or postgraduate degree or postgraduate

qualifications.

Not less than 08 years’ post-qualifying experience in a relevant

field of which at least 03 years should be at senior management

level in a recognized public/ private sector international

institution.

Post: Deputy Director (Finance)

Qualifications: Associate Member of the Institute of Cost & Management

Accounts, Institute of Chartered Accountants of Sri Lanka with a

minimum of 05 years post-qualifying experience of which 03 years

should be at senior management level.

or

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The intermediate qualification of a recognized body of

Accountants with a minimum of 10 years post qualifying

experience of which 05 year should be at senior management

level.

or

Diploma in Public Finance conducted by the Sri Lanka

Institute of Development Administration with a minimum of 10

years experience as an Accountant in the public Service of

which 05 years should be post qualifying.

or

Member of Class 1 of the Sri Lanka Government Accountant

Service. Post: Deputy Director (Supplies)

Qualifications: A degree from a recognized university or equivalent

professional qualifications and possess not less than 08

years of post qualifying experience in the relevant field or which

at least 03 years should be at Senior Management level in a

recognized Public / Private Sector Institution or an international

institute/agency. Preference will be given to holders of a First or

Second Class degree and /or Post Graduate Qualifications

relevant to the job description.

Post: Manager (Provincial Export)

Qualifications: A degree from a recognized university or equivalent

professional qualifications.

Preference will be given to candidates with experience in

Development Administration at the provincial level.

Candidates should possess not less than 08 years post-

qualifying experience of which at least 03 years should be at a

senior management level in a relevant area in a recognized

Public/Private Sector Institution.

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64

Post: Legal Officer

Qualifications: An Attorney-at-Law with at least 5 years’ experience in notarial

and company work. Experience and knowledge of labour-related

matters would be an added qualification.

Post: Chief Internal Auditor

Qualifications: Associate Member of the Institute of Chartered Accountants/Cost

& Management Accountants/Certified and Corporate Accountants

with not less than 5 years’ post-qualifying experience, of which 2

years should be in Auditing.

or

Intermediate Examination of a recognized body of Accountants

with 10 years’, post-qualifying experience of which 3 years should

be in Auditing.

or

Diploma in Public Finance of the Sri Lanka, Institute of

Development Administration with 10 years’ post-qualifying

experience of which not less than 3 years should be in Auditing.

Post: Assistant Director

Qualifications: A graduate with a 1st or 2nd class degree from a recognized

university in Economics, Commerce, Business Administration,

Engineering, Science, Agriculture or any other related field or

equivalent professional qualifications or a postgraduate degree in

the relevant field with at least three (03) years’ experience in a

staff post in a recognized public/private sector or international

institution or agency.

Graduates with exceptional proven ability in the relevant areas

with at least 5 years’ experience at staff level may also apply.

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65

Post: Assistant Director (Personnel)

Qualifications: Degree from a recognized university with 05 years

experience related to Personnel Management functions.

or

SSC or GCE (O/L) in 6 subjects including English Language in not

more than 2 sittings.

and

15 years experience in a Public, Private or recognized

International Agency of which 10 years should be related to

Personnel /Administrative functions. Of the total experience

stipulated 05 years should be at executive level.

Post : Assistant Director (Admin.)

Qualifications: Degree from a recognized university with 05 years

experience related to administrative functions.

or SSC or GCE (O/L) in 6 subjects including English Language in not

more than 2 sittings.

and

15 years experience in a Public, Private or recognized

International Agency of which 10 years should be related to

Personnel /Administrative functions. Of the total experience

stipulated 05 years should be at executive level.

Post: Asst. Legal Officer

Qualifications: Attorney-at-Law with notarial qualifications and three years’

experience in practice, preferably Law Graduates.

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Post: Personnel Officer

Qualifications: Degree from a recognized university with at least 03 years

supervisory experience related to Personnel functions;

or

SSC or GCE (O/L) Examination in 6 subjects including English

Language in not more than two sittings and possess not less than

15 years of related experience of which 06 years should be at

supervisory level.

Post : Administrative Officer

Qualifications: Degree from a recognized university with at least 03 years

supervisory experience related to Administrative functions;

or

SSC or GCE (O/L) Examination in 6 subjects including English

Language in not more than two sittings and possess not less than

15 years of related experience of which 06 years should be at

supervisory level.

Post: Statistical Officer

Qualifications: SSC/GCE (O/L) and minimum of 04 years of service in Grade 5 in

the EDB and has been confirmed in the Post.

or

Recognized part professional qualifications with only the final

part to be completed and the completion thereof will lead to

qualifications equated to a degree, or a professional

qualification i.e. a Diploma in the specialized field plus 03

years of service in Grade 5 of the Board’s service and has been

confirmed in the Post.

or

A degree from a recognized university or equivalent

professional qualification and confirmed in the Board’s

service.

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67

Post: Internal Audit Officer

Qualifications: SSC/GCE (O/L) examination and completion of a certificate level

course relating to the functions of auditing conducted by a

recognized institution with a minimum of 08 years experience in

the field of auditing out of which 02 years should be in a Grade 5

post in the EDB and has been confirmed in the post.

Post: Management Assistant

Qualifications: A degree from a recognized university. Preference will be given

to candidates with a 1st or 2nd class degree.

Post: Export Promotion Officer

Qualifications: A degree from a recognized university. Preference will be

given to candidates with a 1st or 2nd class degree.

Post: Assistant Accountant

Qualifications : (a) Higher National Diploma in Accountancy (Intermediate)

examination.

or

Diploma in Commerce 3rd years examination or equivalent

qualifications;

and

12 years experience in job-related functions of which 4

years should be executive experience.

(b) Higher National Diploma in Accountancy final

examination.

or

Diploma in Commerce final examination.

and

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68

08 years experience in job-related functions of which 03

years should be executive experience.

© The Intermediate Examination of the Institute of

Chartered Accountants

or

Professional I of the Institute of Cost and Management

Accountants.

or

Professional Stage I of the Association of Certified and

Corporate Accountants.

(d) A Degree in Economics/Commerce/Business

Administration with Accountancy.

and

04 years experience in job related functions of which 02

years should be at executive level.

TECHNICAL

Post: Systems Engineer

Qualifications: B.Sc. Engineering degree from a recognized university with

specialization in Electronics/ Electrical/Telecommunications and

Computers.

Post: Systems Analyst

Qualifications: B.Sc. degree and 4 years’ experience in Computer System Analysis

Design and Programming and at least 2 years’ experience as

Systems Analyst.

in a recognized public/private sector or international organization

or agency.

or

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69

B.Sc. degree and Masters in Computer Science with at least 2

years’ experience as Systems Analyst in a recognized

public/private sector or international organization or agency.

Post: Computer Programmer

Qualifications: B.Sc. degree and two years’ experience in Computer

Programming and Systems Design.

or

B.Sc. Degree

and

Diploma in Computer Technology, University of Colombo.

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70

Annex II

Page 77: EDB Strategic Plan 2011-2015

71

Annex III

Rationale for Identification of Key Product Sectors (KPS)

Product Contribu

-tion to

total

exports

RCA Share

in the

World

Market

NFE World

Trend

2004 -

2008

Sri

Lanka

Trend

2004-

2008

2009

Growth

Rate

Future

Growth

2010-

2015

World

Rank

Apparel

40.0% 15 0.9% 35% 8.5% 5.7% -4.9% 3.1% 23

Tea 15.6% 75 23.0% 70% 15% 13.2% 11.28% 6.9% 1

Rubber &

rubber based

products

6.6% 8 0.4%

60% 16% 16.7% -27.5% 3.2% 30

Diamonds,

gem &

jewellery

5.4% 3

0.2% 30%-

75%

16% 22% -25.9% 1.8% 45

ICT/BPO/

KPO

3.3% - -

100% - - 6.5% 11.2% -

Food & other

Beverages

2.2% 1.5 0.1%

80% 14% 12% -16.3% 7,4%

Coconut &

coconut

based

products

2.1% 40

(Husk)

2% 70% 7% 8.84% -5.1% 7.4% 10

Fish &

fishery

products

2.0% 2 0.3% 95% 18.52% 7.0% 3.6% 7.6% 32

(Tuna)

Electrical &

electronics

1.9% 0.2 Less

than

0.1%

10% 19% 17.24% -42.9% 0.3% 71

Petroleum

products

1.8% 0.0001 - Less

than

20%

- 21.3% -49.1% 3.1%

Spices &

allied

products

1.6% 2 Cin.

40%

90% 7% 10% -24.7% 5.3% Cinna-

mon 1

Chemical &

plastic

products

1.54% 0.23 0.015% 40% 1%

(plastic)

3.4% -11.3% (-1.98%)

1%

93

Paper

products

1.10% 1.90 0.06% 40% 40% 29.84% -8.7% 9.8% 62

Ceramic &

other mineral

products

0.97% 2.32 Less

than

0.1%

50% 11% 3.76% 16.2% (-3.8%)

1.0%

103

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72

Product Contribu

-tion to

total

exports

RCA Share

in the

World

Market

NFE World

Trend

2004 -

2008

Sri

Lanka

Trend

2004-

2008

2009

Growth

Rate

Future

Growth

2010-

2015

World

Rank

Fruits &

vegetables

0.60% 1.4 Over

90%

19% 10.8% 7.9%

Toys, games

& sports

requisites

0.51% 0.84 0.04% 50%-

60%

7%

6.7% -9.7% 3.9% 53

Base metal

products

0.49% 0.27 0.01% 60% 4.1% -48.6% 36.7% 3.4% 71

Footwear &

Leather

0.42% 0.6 Negligi

ble

40%-

50%

8% -2.5% -19.5% 5.2% 75

Wooden

products

0.38% 0.7 0.03% 70% 22% 14.26% -38.8% 4.9% 81

Floriculture

0.15% 1.5 0.08% 90% 12% 12% -19.3% 2.2% 47

Aquarium

fish

0.11% 4.6 3.7% 93% 5% 4.7% -5.1% 2.6% 10

Notes:

1) A Product sector whose contribution to total exports is over 3% is considered as large in

terms of the current size. Some sectors, although their share is below 3%, are also

categorized under ‘Large in Current Size considering their local industry base.

2) The diamond, gem & jewellery sector has been included in ‘Large in Current Size’

category due to its relatively high overall contribution of 5.4% to the total exports.

However, diamond industry which is confined only to cutting & polishing of raw

diamond alone contributes 4.4% to the total exports while gem & jewellery

contribute 0.9% and 0.1% respectively to the total exports.

3) Growth rate of each product sector in 2009 which is a crisis year for exports is also taken

into consideration when analyzing the future growth trend.

4) Paper based product sector includes printed stationery, books and printed packaging

material. Printed packaging material supplied to direct exporters of other

products has not been considered for the analysis.

* Contribution to exports are considered in terms of value.

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73

Annex IV

Export Targets for Other Product Sectors 2010 - 2015

Value in US $ Mn.

Se.

No. Description

Actual

exports

in

2009

Export projections 2010 -

2015

Av.

Growth

% 2010 2011 2012 2013 2014 2015

Total Exports 7085.00 8028.00 9098.00 10310.00 11683.00 13240.00 15000.00 12.50

1 Fish & fisheries products 170.60 200.02 218.46 236.90 255.34 273.78 292.22 7.56

2 Coconut based products 261.12 303.00 330.10 357.21 384.31 411.41 438.52 7.38

3 Electrical & electronic

products 140.48 206.82 207.51 208.20 208.89 209.58 210.26 0.33

4 Paper & Paper products 80.45 102.65 115.61 128.57 141.53 154.49 167.45 9.75

5 Boat Building 57.81 60.13 71.29 82.44 93.59 104.75 115.90 13.04

6 Professional services N/A N/A N/A N/A N/A N/A N/A

7 Chemicals & plastic

products 113.47 114.60 115.70 116.90 118.10 119.30 120.50 1.01

8 Ceramics & other mineral

based products 71.31 72.02 72.74 73.47 74.21 74.95 75.69 1.00

9 Fruits & vegetables 43.76 47.00 52.00 58.00 62.00 66.00 70.00 7.90

10 Toys, games & sports

requisites 38.02 26.10 26.80 27.40 28.10 30.00 32.00 3.95

11 Giftware 10.60 12.80 13.50 14.10 14.80 15.60 16.30 5.00

12 Base metal products 36.11 40.00 42.00 43.00 44.00 46.00 48.00 3.45

13 Footwear & leather

products 29.50 32.00 35.00 36.00 37.00 39.00 43.00 5.23

14 Wooden products 28.53 33.00 38.10 38.50 41.00 42.30 43.20 4.92

15 Floriculture 11.61 13.32 13.63 13.93 14.20 14.54 14.85 2.20

16 Aquarium fish 8.52 9.11 9.36 9.61 9.87 10.12 14.38 7.27

17 Handloom 0.98 1.13 1.29 1.48 1.70 1.95 2.24 13.70

Notes: Projections based on past five years’ actual exports assumed to grow exponentially.

N/A – Not Available

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Annex V

Trigger/Barrier Analysis for Key Product Sectors(KPS)

(1) Product Sector: Apparel Sector - Triggers

No. Triggers EDB Role Functions Actions

01 Reputation of

being a quality

apparel

manufacturer

for the export

market.

Promoter

Create maximum

publicity to

highlight its

reputation.

- Organise

local/international trade

exhibitions and other

trade events in Sri Lanka

(such as EXPO) design

festival.

- Invite reputed journalists,

opinion leaders to visit Sri

Lanka to publicize Sri

Lanka apparel.

- Advertise in international

clothing

magazines/media.

02 Compliance

with

international

labour

regulations

Promoter

Entry into the

upper market

segments and

services the high

fashion industry.

- Organise appropriate

market promotion

activities to position Sri

Lanka at the high end of

the market.

- Messaging and branding

to highlight compliance

and promotion of

“Garments Without

Guilt”.

03 The availability

of relatively

disciplined and

skilled labour

and a trainable

Knowledge

Provider Initiate them into

the correct work

environments.

Enhance the skills

of the work force.

- Provide training and skills

development programmes

for workers on high tech

production systems and

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75

No. Triggers EDB Role Functions Actions

labour force design development.

- Conduct awareness

programmes to promote

the dignity of the

profession and thus

encourage workers.

04 Reputed

International

Customer base

Promoter

- Organise selected market

promotion activities i.e.,

participation in

international trade

fairs/exhibitions/single

country exhibitions,

inward buying missions,

outward promotion

missions, contact

promotion programmes,

road shows, establishment

of display centres,

windows, etc.

- Organise systematic and

targeted market

promotion activities.

- Encourage Fashion

Industry Development.

- Set up fashion/design

centre to facilitate

industry players in

product and design

development and brand

management.

05 On-time delivery

“all-season”

products.

Promoter Focus on the high

fashion apparel

industry to cater to

the high value

- Implement fashion/design

development programmes

and increase supply chain

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76

No. Triggers EDB Role Functions Actions

addition industry.

Maximum usage of

this strength in the

marketing

activities.

efficiencies.

- Carry out selected

promotion/advertising

campaigns to highlight

strengths of “Sri Lanka

Apparel”.

Product Sector: Apparel Sector – Barriers

No. Barriers EDB Role Functions Actions

01 Low

productivity of

SME apparel

sector

Knowledge

provider

Promoter

- Improve the

product

development

capabilities by

basic

technology

upgrades.

- Improve

productivity to

increase

operational

effectiveness.

- Conduct awareness and

skills development

programmes.

- Implement assistance

schemes to upgrade

production lines of SMEs

for industry compliance.

fro factory upgradation

with modern technology.

02 Lack of design

capabilities to

offer more

sophisticated

products

Promoter

Knowledge

provider

- Provide

opportunities for

Sri Lanka

designers to work

with international

fashion

designers.

- Obtain expertise

on design &

product

development for

SMEs.

- Implement

design/product

development programmes

and overseas design

training for local

designers.

- Analyse and disseminate

market intelligence.

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77

No. Barriers EDB Role Functions Actions

- Encourage

investments

03 Lack of

investment in

Human

Resources

Knowledge

Provider

Facilitator

- Provide training

on building and

managing

customer

relationships to

improve technical

capabilities.

- Liaise with

relevant

academic/technic

al institutions to

develop HR

requirements of

the industry.

Conduct specific training for

improving

technical/managerial skills.

04 High cost of

production and

high transition

cost

Facilitator

- Take measures

to overcome

procedural

delays and

provide

essential

utilities at

reasonable

rates.

- Provide

alternative

cheaper sources

of energy power

to operate the

industries.

- Open ports and

customs 24

hours a day.

- Provide financing for

exports.

- Provide e-commerce and

promote e-trading in

exports.

- Negotiate with financial

institutions to provide

financing at concessionary

terms for exports.

- Co-ordinate with relevant

agencies to expedite EDI

system to rationalize

import/export procedures.

- Initiate discussions with

relevant institutions to

introduce the use of

alternative energy

sources.

05 Lack of

backward

integration

Facilitator - Encourage

domestic

industries to

Facilitate to encourage

investment for backward

integration. (Set up textile

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78

No. Barriers EDB Role Functions Actions

produce textile

and other

accessories.

- Identify joint

venture

partners and

develop

alliances.

Mills and accessories

manufacturing Plants, etc.

06 Lack of image

building and

marketing

programmes

Promoter

- Promote and

position Sri

Lanka as a

quality/design

and ethically

manufactured

producer of

apparel.

- Launch

aggressive

market

promotion

programmes in

key markets in

collaboration

with Joint

Apparel

Association

Forum (JAAF).

- Provide

financial

assistance for

SME apparel

sector for

market

promotion

- Implement programmes

for national branding and

to assist brand

development programmes

of exporters.

- Organise appropriate

market promotion

activities ie:

participation at

international trade

fairs/exhibitions/single

country exhibitions,

inward buying missions,

outward promotion

missions, contact

promotion programmes,

road shows, establishment

of display

centres/windows, etc.

- Organise trade

exhibitions/trade events in

Sri Lanka such as Expo,

Design Festival, etc.

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79

No. Barriers EDB Role Functions Actions

programmes.

- Identify new

markets and

promote exports

to these

markets.

07 Inadequate

lobbying for

preferential

market access

in key markets.

Facilitator

- Negotiate to

include apparel

into USA –GSP

programme.

- Work towards

ensuring

continuation of

EU GSP +.

Work with relevant agencies

by providing product specific

inputs for trade negotiations.

(2) Product Sector: Tea Sector - Triggers

No. Triggers EDB Role Functions Actions

01

Increasing tea

consumption

habits

Knowledge

provider

Policy Advisor

Monitor

- Network with

stake-holders

for research/

studies on

consumer

behaviour

periodically.

- Disseminate

research/

study findings

to the

industry.

- Recommend

policies and

programmes

- Conduct research/

studies on consumer

behaviour bi-annually

with the SLTB.

- Issue press releases/

Web articles, other

information material etc.

on research findings.

- Forward policy papers

and recommend

programmes for

government funding

through SLEDB.

- Monitor and evaluate

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80

No. Triggers EDB Role Functions Actions

to the

government

based on

research/study

findings for

resource

allocation for

development

of the

industry.

- Develop a

mechanism to

monitor

periodically

the export

performance

of highly

demanded

products and

the impact of

the

programmes

recommended

above.

performance of the

assistance extended

through SLEDB

quarterly.

02

Increasing

demand for

branded

products

Knowledge

provider

Promoter

Monitor

- Network with

stake-holders

for research/

studies on

market trends

periodically.

- Disseminate

research/

study findings

to the

industry.

- Conduct

research/studies on

market trends

biannually with the

SLTB.

- Issue Press releases/

Web articles, other

information material etc.

on research findings.

- Implement assistance

schemes for national

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No. Triggers EDB Role Functions Actions

- Encourage

brand

development

programmes

of exporters.

- Develop a

mechanism to

monitor

periodically

the impact of

the brand

development

programmes

implemented.

branding on GI with the

SLTB and Ministry of

Industries.

- Implement assistance

schemes for branding on

“Ozone free PURE

Ceylon Tea” with the

SLTB, UNOPS and TRI.

- Monitor and evaluate

performance of the

assistance extended

through the SLEDB

quarterly.

03

Premium

prices for

value added

teas

Knowledge

provider

Promoter

Monitor

- Network with

stake-holders

for research/

studies on

value added

tea

periodically.

- Disseminate

research/

study findings

to the

industry.

- Encourage

investment on

R&D on

product

development

and

adaptation of

exporters.

- Conduct

research/studies on

value added teas

periodically.

- Issue Press releases/

Web articles, other

information material,

etc. on research findings.

- Implement assistance

schemes for

performance-based

export oriented

investment in R&D and

product

development/adaptation

(designs, packaging),

etc.

- Monitor periodically the

impact of the above

investment programmes

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82

No. Triggers EDB Role Functions Actions

- Develop a

mechanism to

monitor

periodically

the impact of

the R&D

development

programmes

implemented.

- Develop a

mechanism

and assistance

programmes

for the tea

industry to

also be the

hub of

packaging and

marketing of

Tea.

implemented.

- Joint ventures with

international tea

packers/blenders to set

up packaging /blending

facilities.

Product Sector: Tea Sector – Barriers

No. Barriers EDB Role

Functions Actions

01 New entrants

to cater to the

“Mass

Market”

category.

Knowledge

provider

Policy

Advisor

Facilitator

- Network with

stakeholders for

research/

studies on

supply trends

periodically.

- Disseminate

research/ study

findings to the

industry.

- Conduct research/

studies on supply trends

periodically with SLTB.

- Issue Press releases/

Web articles, other

information material,

etc. on research findings.

- Forward policy papers

and recommend

programmes for

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83

No. Barriers EDB Role

Functions Actions

- Net work with

stakeholders

and recommend

policies and

programmes to

the government

based on

research/study

findings for

supply

development of

the industry.

- Encourage

exporters for

productivity

management of

plantations and

invest on value

addition.

government funding

through SLEDB.

- Provide financing (Exim

Bank) for exporters in

supply development

and competitiveness-

enhancement,

conforming to

international standards.

02 Supply

restrictions

Policy

Advisor

Facilitator

Monitor

- Network with

stakeholders

and recommend

policies and

programmes to

the government

for unutilized/

abandoned tea

plantations for

re-plantation for

supply

development of

the industry.

- Encourage R &

D on high

yielding

varieties of Tea

- Forward policy papers

and recommend

programmes for

government funding

through the Ministry of

Plantations.

- Implement Assistance

Schemes to encourage R

& D on high yielding

varieties of tea by the

private sector.

- Monitor periodically the

impact of the above

assistance programmes.

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84

No. Barriers EDB Role

Functions Actions

by the private

sector.

- Develop a

mechanism

with the

stakeholders to

monitor

periodically the

impact of the

above re-

plantation and

R&D

programmes

that are

implemented.

03 Low yield and

high post

harvest losses

Knowledge

provider

Promoter

Facilitator

- Network with

stakeholders for

comparative

analysis on

yield/post

harvest losses of

the tea industry

of other

supplying

countries.

- Disseminate

findings of the

analysis to the

industry.

- Encourage

plantation of

high yielding

varieties of tea

as

recommended

- Conduct comparative

analysis on yield/post

harvest losses of the tea

industry of other

supplying countries.

- Issue press releases/

Web articles, other

information material etc.

on research findings.

- Implement assistance

schemes to encourage

plantation of high

yielding varieties of tea

among small holder

plantations as

recommended by TRI.

- Implement assistance

schemes to encourage

new mechanisms in

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85

No. Barriers EDB Role

Functions Actions

by TRI.

- Network with

stakeholders in

minimizing

post- harvest

losses.

minimizing post-harvest

losses among small

holder plantations as

recommended by TRI .

04

High cost of

production

Policy

Advisor

Facilitator

- Network with

stake-holders in

recommending

measures for

reducing cost of

production.

- Network with

stake-holders in

minimizing cost

of electricity &

transport.

- Forward policy papers

and recommend

programmes for

government funding

through the Ministry of

Plantations.

- Provide financing (Exim

Bank) for exporters to

install energy

management devices as

recommended by SEA.

05 Lack of invest-

ment for new

technology

and low

productive

machinery and

equipment

Policy

Advisor

Facilitator

Monitor

- Network with

stake-holders in

recommending

measures to the

government for

duty free

importation of

appropriate

technology

machinery and

equipment.

- Encourage

plantation

companies and

small holders to

use new

technology in

- Forward policy papers

and recommend

programmes for

government

authorization for duty

free importation through

the Ministry of

Plantations.

- Implement assistance

schemes for importation

of new technology.

- Monitor periodically the

impact of the above

programmes

implemented.

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86

No. Barriers EDB Role

Functions Actions

their processes.

- Develop a

mechanism

with the

stakeholders to

monitor

periodically the

impact of the

above

programmes

implemented.

06 Lack of

demand

driven R & D

Promoter Network with

stake-holders in

investing in

demand driven

R&D.

Joint ventures with

international R & D

institutes for technology

transfer.

07 Low product

diversification

on RTDs

Knowledge

provider

Policy

Advisor

- Network with

stake holders

for product

diversification

of the tea

industry of

other supplying

countries.

- Disseminate

research/ study

findings to the

industry.

- Network with

stake-holders in

recommending

measures to the

government for

allocation of

resources for

- Conduct

research/studies on

product developments

periodically.

- Issue press releases/

Web articles, other

information material,

etc. on research findings.

- Forward policy papers

and recommend

programmes for

government to invest in

product diversification.

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87

No. Barriers EDB Role

Functions Actions

product

diversification.

08 Lack of

entrepreneurs

hip and

competitivenes

s among small

holders

Policy

Advisor

Facilitator

- Recommend

policies to

enhance

capacities of

small holder

plantations in

entrepreneurshi

p business

management,

quality

development,

etc.

- Network with

stakeholders to

promote

entrepreneurshi

p and capacity

building of

small holders.

- Forward policy papers

and recommend

programmes for

government to invest in

enhancing

competitiveness of small

holder plantations.

- Implement assistance

programmes on a

reimbursement basis for

productivity

improvement and

quality management

programmes of small

holders.

09 Lack of

initiatives for

mergers and

acquisitions

Policy

Advisor

Recommend

policies to enhance

mergers and

acquisitions of

small holder

plantations for

economies of scale.

Assistance schemes for

PPPs on acquisition and

mergers.

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88

(3) Product Sector: Rubber & Rubber Products Sector - Triggers

No. Triggers EDB Role Functions Actions

01 Established

industry in Sri

Lanka as well as

worldwide

Facilitator

Promoter

Create

awareness

internationally.

Carry out targeted and

product specific marketing

activities.

02 A network of

industry-

specific

supporting

services

Facilitator

- Release

sufficient

funds to

upkeep and

maintain

these

institutions.

- Make

maximum

use of the

services.

- Increase productivity

through assistance

schemes to implement

export oriented testing

and certification

programme and assistance

to upgrade technology on

manufacturing of value

added products.

03 Natural rubber

is an essential

raw material in

the

manufacture of

certain

products

Policy

Adviser

Promoter

Facilitator

As Sri Lanka

has a NR supply

base, promote

exports of NR

products

overseas.

- Facilitate increase of

supply of natural rubber.

- Increase productivity.

04 Contributes to

carbon trading

Promoter

Facilitator

Policy

Adviser

This aspect has

not been

studied at all.

Hence, it is

suggested that a

study be

undertaken to

look into the

possibilities.

Create awareness.

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89

No. Triggers EDB Role Functions Actions

05 The rising

demand for NR

products in the

global market

Promoter

Product

development

and targeted

marketing

overseas.

- Carry out targeted &

product specific

marketing activities.

- Create awareness.

06 Rubber is an

environmentally

friendly raw

material

Knowledge

Provider

Promote this

concept

globally.

- Carry out targeted &

product specific

marketing activities.

07 Rubber is now

being grown in

non-traditional

areas

Facilitator/P

olicy

Advisor

Expand

cultivation in

non-traditional

areas by

providing

incentives and

subsidies.

Co-ordinate with relevant

agencies to increase the

supply of raw materials.

08 Trained work

force in the

products

industry

Promoter/

Facilitator

Increase

productivity

and make

maximum use

of the trained

workforce.

Increase productivity.

Product Sector: Rubber Products Sector - Barriers

No. Barriers EDB Role Functions

Actions

01 Inadequate

raw material

Natural

Rubber (NR)

and the

supply and

price

fluctuations

Policy

Adviser

Promoter

- Introduce

new clones

with more

latex.

- Increase

productivity

of the

plantation

sector.

- Introduce

- Co -ordinate with relevant

agencies to increase the

supply of raw materials.

- Develop new capacities to

enhance competence of

the exporter community.

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90

No. Barriers EDB Role Functions

Actions

rubber

growing in

non-

traditional

areas (e.g.

Moneragala).

- Increase latex

extraction.

02 Insufficient R

& D and high

cost of testing

and

certification

Facilitator

Promoter

Knowledge

Provider

- Encourage

and provide

support to

other testing,

research and

certification

organizations

within the

country.

- Formulate a

financial

assistance

scheme and

implement it

for testing

and

certification.

- Encourage export oriented

investment for R&D and

product

development/adaptation

(designs, packaging, etc.).

- Network with other

related organizations.

- Disseminate findings to

business community.

03 High cost of

machinery

and

technology

transfer

Promoter

Facilitator

- Encourage

Foreign

Direct

Investment

(FDI) and

Joint

Ventures (JV)

in the rubber

Industry.

- Introduction of advanced

technologies to selected

manufacturing units

based on a industry

surveys.

- Increase productivity

through assistance to

upgrade technology in the

manufacture of value

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91

No. Barriers EDB Role Functions

Actions

- Promote

clustering

and private –

public sector

partnerships

and re-

activate the

rubber city

project.

added products.

- Create awareness on new

technology.

04 Non-tariff

barriers and

insufficient

importance

given to

relevant

marketing

approaches

and

programmes

Promoter

- Re-position

Sri Lanka as a

capable

supplier of

quality

rubber

products.

- Systematic

penetration of

selected

markets.

- Organize appropriate and

product specific market

promotion activities.

- Carry out targeted and

product specific

marketing activities.

- Improve market

intelligence by providing

information on market

trends, new products,

tariff and non tariff

barriers, etc.

- Implement focused

market development

programmes in identified

markets.

- Develop export oriented

SMEs and promote

linkage between

exporters.

05 Insufficient

supporting

facilities

Promoter/

Facilitator

- Encourage

establishmen

t of rubber

compoundin

g and supply

- Network with all trade

related international and

local agencies, R&D, BDS,

technical assistance, etc.

- Provide financing for

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92

No. Barriers EDB Role Functions

Actions

chain

facilities.

- SMEs in the

rubber

industry

should

organize

themselves

as a

consortium

for

importing

essential

chemicals

and other

raw

materials

(such as

synthetic

rubber).

exports.

- Facilitate local infra-

structure development

and export related

services.

06 High cost of

finance

Facilitator

- Access to

finance at

reasonable

interest

rates.

- Energy

made

available at

competitive

prices.

- Encourage

the use of

alternative

and cost

efficient

Co-ordinate with relevant

organizations in respect of

making available financing

for exports at competitive

prices.

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93

No. Barriers EDB Role Functions

Actions

energy

sources.

07 High cost of

energy

- Energy

made

available at

competitive

prices.

- Encourage

the use of

alternative

and cost

efficient

energy

sources.

Negotiate with relevant

agencies to make available

energy at competitive rates.

08 Substitution

by synthetic

rubbers

Policy

Adviser

Promoter

Facilitator

- Further

product

development

of NR based

products.

- Creation of

awareness in

respect of the

qualities of

NR.

- Create awareness of

positive qualities when

using NR.

- Carry out further product

development with NR.

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94

(4) Product Sector: Gem, Diamond & Jewellery Product Sector - Triggers

No. Triggers EDB Role Functions Action

01 Availability of

quality raw

material (gem

stones)

Promoter/

Facilitator

- Maximize

utilization of

local raw

material.

- Introduce

efficient

mining

process.

- Maximize

value

addition.

- Implement assistance

schemes to encourage

exporters to go in to high

value added products.

- Popularize internationally

accredited gem

certification and

hallmarking to build

consumer confidence.

02 Duty free

access to raw

material

Policy

Adviser

Promoter

Use cost

advantage for

competitive

pricing.

Increase

production to

meet demand.

- Recommend measures to

maintain a conducive

business environment to

enhance competitiveness

of exports of products and

services.

- Organize appropriate

market promotion

activities, i.e,

participation at

international trade

fairs/exhibitions/single

country exhibitions,

inward buying missions,

outward promotion

missions, contact

promotion programmes,

road shows, establishment

of display

centres/windows, etc.

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95

No. Triggers EDB Role Functions Action

03 International

reputation as

quality

producer of

gem stones,

especially

sapphires

Facilitator

Increase

marketability of

Sri Lankan

products.

Raise reputation

to obtain

premium prices.

- Increase the availability of

state and plantation lands

for gemming.

- Designate an exclusive

location in Colombo and

in major resort areas for

retailing gems and

jewellery for tourists.

04 High quality

cutting

industry

Promoter

Promote Sri

Lanka as a

quality cutting

centre and high

quality raw

material for

jewellery.

- Launch an international

media campaign targeting

both the trade and

consumers in selected

markets.

- Develop FACETS Sri

Lanka as a major

international event.

05 Traditional

craftsmanship

Policy

Adviser/

Monitor/

Promoter

Increase

marketing

efforts to access

niche markets.

Impose

premium

pricing.

- Launch product, market

and regional export

development

programmes.

- Ensure that exports meet

international standards

and requirements.

- Formulate marketing

strategies to enhance Sri

Lankan exports.

06 Highly

trainable

workforce

Promoter

- Maximize

use of

human

resources.

- Increase

efficiency of

productions.

- Ensure high

Provide high quality training.

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96

No. Triggers EDB Role Functions Action

quality

products.

07 Reputation of

handmade

jewellery

Facilitator/

Promoter

Access high-end

of the market.

Brand Sri

Lankan

jewellery.

Impose

premium prices.

- Carry out skills

development programmes

to develop competencies

in producing value added

products.

- Launch an investment

drive locally and

internationally to attract

investors to establish

/expand factories.

- Launch an international

media campaign targeting

both the trade and

consumers in selected

markets.

Product Sector: Diamond, Gem & Jewellery Sector – Barriers

No. Barriers EDB Role Functions Actions

01 Inconsistent

supply of gem

material

Lack of

linkages

among the

supply chain

Facilitator Identify

primary gem

deposits and

improve mining

technology.

- Increase the availability of

State and plantation lands

for gemming.

- Expedite the

commencement of a

national gem deposit

survey.

- Initiate research to

increase mining

productivity with

appropriate technology.

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97

No. Barriers EDB Role Functions Actions

- Negotiate bi-lateral gem

trade agreements with

other source-countries.

02 Lack of

finances to

process rough

gems (mainly

geuda)

Export of

rough gems

without value

addition

Facilitator Implement

financial

schemes at

concessionary

rates.

- Provide collateral support

for fixed and working

capital by establishing

credit guarantee funds.

- Initiate dialogue to permit

banks to grant loans for

precious metals.

03 Lack of

trained labour

for value

added

activities

Promoter

Increase the

supply of

skilled gem

cutters/

craftsmen.

Create

awareness of

employment

opportunities of

the sectors.

Provide high quality

training.

04 Lack of

manufacturing

capabilities

Facilitator

Knowledge

Provider

Improve

manufacturing

and design

development

capabilities.

Upgrade

workshops.

- Carry out skill

development programmes

to develop competencies

in producing value added

products.

- Obtain services of Experts

to improve manufacturing

and design capabilities.

05 Low

international

awareness of

Sri Lanka’s

Promoter

Facilitator

Create

awareness

among the

international

- Launch an investment

drive locally and

internationally to attract

investors to

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98

No. Barriers EDB Role Functions Actions

jewellery

industry

community of

Sri Lanka’s

strengths.

establish/expand factories.

- Develop a new “gem

tourism” product

including artisan villages,

museums and education.

- Designate an exclusive

location in Colombo and

in major resort areas for

retailing gems and

jewellery for tourists.

- Popularize internationally

accredited gem

certification and

hallmarking to build

consumer confidence.

- Launch an international

media campaign targeting

both trade & consumers in

selected markets.

06 Insufficient

market

promotion

activities

Promoter

Improve Sri

Lanka’s

visibility in

selected

markets.

Re-position Sri

Lanka as a

jewellery

manufacturer.

- Launch an international

media campaign targeting

both the trade and

consumers in selected

markets.

- Develop “FACETS SRI

LANKA” as a major

international event.

- Organize prominent

national pavilions at major

trade fairs in target

markets.

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99

(5) Product Sector: ICT/IT Sector - Triggers

No. Triggers EDB Role Functions Action

01 Availability of

sufficient

infrastructure.

Promoter Uplift the

position of Sri

Lanka as a

provider of ICT

services.

- Promote the Sri Lankan

ICT industry through the

web portal.

- Participate in international

forums and exhibitions.

02 High

education

level of the

younger

population

Facilitator

Adviser

Provide advice

on the

opportunities

available in the

ICT/BPO sector

and encourage

the student

community to

develop ICT

skills.

Take across the message of

ICT/BPO sector opportunities

through the programmes

with universities and the

educational institutes.

03 South Asia is

known

globally for IT

skills.

Promoter Use this South

Asian

reputation to

impress buyers.

Highlight this fact in

promotions as and when

relevant.

04 ICT is one of

the most

sought after

professions of

the young

generation.

Facilitator

Adviser

Make use of this

enthusiasm and

direct them to

IT skills, which

are in demand.

Student community and IT

exporters to be brought

forward for continuous

interaction.

05 Cultural

adaptability to

western

cultures

Promoter Make use of this

characteristic in

promotional

efforts.

Promote the ICT sector in

western business cultures.

06 British

business

practices are

established in

Sri Lanka

Promoter Give priority to

markets with

British business

practices.

Find markets with British

business practices to

promote the ICT sector.

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07 English

language

proficiency.

Promoter Make use of this

characteristic to

highlight the

advantages to

the customers.

Promote markets which use

English as the business

language.

Product Sector: ICT/IT Sector - Barriers

No. Barriers EDB Role Functions Actions

01 Lack of

specific

software skills.

Facilitator Bring together

universities and

educational

establishments

with exporters

in order to

promote specific

and most

suitable

software skills

for exports,

among the

student

community.

- Organize seminars/

awareness programmes to

encourage exporters, to

engage with education

establishments.

- Organizing continuous

interaction between

educational establishments

and ICT exporters.

02 Lack of capital

Facilitator

Promote the Sri

Lankan

software

industry as a

potential sector

for investment.

Contribute of funds to

Venture Capital project,

especially for the service

sector.

03

Lack of

statistics

Facilitator

Develop a

mechanism to

get annual

statistics for the

sector.

- Carry out an annual

industry value survey.

- Develop a mechanism in

collaboration with the

Exchange Control

Department and Central

Bank.

04 Infrastructure

is costly

Facilitator

Get telecom

service

Organize continuous

interaction between exporters

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No. Barriers EDB Role Functions Actions

compared to

competitors.

providers to

reduce costs

and encourage

more volume to

be used.

and telecom providers.

05 Not known as

an IT service

provider

internationally.

Promoter Promote Sri

Lanka globally

as an IT service

provider.

Get the services of a global PR

company to do a country

study.

06 Lack of

comprehensive

studies on

strengths and

weaknesses

compared to

global

demand.

Facilitator

Benchmark the

Sri Lanka ICT

industry vis-a-

vis global ICT

industry.

Get the services of a global

research company to do a

benchmarking exercise.

07 Lack of

software staff.

Promoter Encourage Sri

Lanka ICT

companies to

find partners in

specific market

segments which

they can cater

to.

Select and promote

programmes targeting specific

market segments.

08 English

Language

proficiency

Promoter Make use of this

characteristic to

highlight the

advantages to

potential

markets.

Promote markets which use

English as the business

language.

(6) Product Sector: Food & other beverages - Triggers

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No. Triggers EDB Role Functions Actions

01 Excess fruit

and vegetable

production

during the

seasons

Promoter

Facilitator

Facilitate

utilization of

excess fruits and

vegetables for

exports.

- Assist industries to expand

production capacity and

modernize manufacturing

processes.

- Encourage setting up of cold

room facilities.

- Develop a resource map

(data base) for the sector.

- Facilitate R&D programmes

to produce innovative

products.

02 Distinctive

flavor in

selected fruit

crops

Promoter

Facilitator

Facilitate

marketing of

selected fruit

crops with a

distinctive

flavour.

- Identify/certify the National

Origin of Distinctive crops

and flavours in

collaboration with

professional food

processing and technical

institutes.

- Initiate a branding

programme for selected

fruit crops.

- Encourage export of kithul

treacle products.

- Arrange suitable marketing

programmes to promote

products internationally.

- Facilitate producer/export

investments and buy- back

arrangements.

03 Expansion of

ports and

harbours

(Proposed

Harbor and

Air Port in the

Promoter/

Facilitator

Promote the

establishment of

food processing

plants.

- Create awareness of

potential products.

- Encourage establishment of

processing plants to utilize

production in the regions.

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No. Triggers EDB Role Functions Actions

Southern

region.)

- Establish commercial

projects

- Link farmer clusters with

food processors and

exporters.

- Assist to develop

infrastructure facilities in

selected locations. Product Sector: Food & other beverages – Barriers

No. Barriers EDB Role Functions Actions

01 Lack of

Research and

Development

Facilitator Facilitate R & D - Initiate R & D programmes

to produce innovative

products with relevant

government departments,

institutions, universities

and manufacturers/

producers.

02 Lack of

quality

products with

internationally

accepted

standards and

certification

Promoter

Facilitator

Upgrade

products to be

compatible

with

international

standards.

- Assist to obtain

international quality

standard certificates.

- Provide up-to-date industry

information and market

intelligence.

03 High

competition in

the world

market.

Promoter/

Facilitator

Upgrade food

processing

industries to be

competitive.

- Strengthen the supply chain

and enhance value chain

efficiency.

- Do research on cost

effective production

processes.

- Promote food & beverages.

- Facilitate the import of

selected products which are

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No. Barriers EDB Role Functions Actions

in short supply for re-

export.

(7) Product Sector: Spices & allied products- Triggers

No. Triggers EDB Role Functions Actions

01 High market

growth.

Monitor

Knowledge

Provider

Promoter

Monitor market

trends and

increase market

share in existing

and new

markets.

- Compile and disseminate

up- to-date industry

information including

market intelligence.

- Raise awareness among the

stakeholders regarding the

potential/opportunities of

the industry

- Conduct market

promotional programmes to

increase the market share in

traditional and new

markets.

02 Increasing

demand for

value added

products.

Facilitator

Encourage

industrialists to

invest in value

added products.

- Facilitate value addition

through introduction of

new technology.

- Facilitate investment in

value added products.

- Encourage PPPs

investments for value

addition.

03 High demand

for aromas,

flavours and

other

ingredients

Knowledge

Provider

Promoter

Facilitator

Educate the

industry on new

market trends

and encourage

investments in

- Conduct market research/

surveys and organize

awareness programmes to

disseminate information.

- Organize technical exposure

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No. Triggers EDB Role Functions Actions

specially from

the EU

markets

new products.

programmes in

collaboration with foreign

/local consultants.

- Introduce PPPs investment

programmes for product

development.

- Integrated product/market

development programmes.

04 High customer

loyalty to Sri

Lankan spices

Promoter

Knowledge

Provider

Launch market

promotion

programmes in

potential

markets and

facilitate supply

of quality spices

to maintain

customer

loyalty.

- Launch promotional

programmes in selected

markets.

- Launch an international

media campaign for brand

promotion of Ceylon

cinnamon.

- Register trade marks

registrations with National

Intellectual Property (NIP)

and relevant foreign

agencies.

- Assist industry to obtain

international quality

standards.

05 Ability to

enhance the

productivity

of the industry

Facilitator/

Knowledge

Provider

Improve

productivity of

the industry for

efficient use of

available

resources.

- Liaise with relevant

institutions to identify

appropriate technology.

- Organize awareness

programmes in

collaboration with

international consultants

and national universities to

transfer technology to the

industry.

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106

No. Triggers EDB Role Functions Actions

- Encourage industrialists to

coordinate with relevant

institutes for knowledge

transfer.

06 Advantages

enjoyed under

Geographical

Indication (GI)

Promoter Establish a

mechanism to

obtain

geographical

indicators for

selected crops.

- Obtain GIs for ‘Ceylon

Cinnamon’.

- Formulate a mechanism to

obtain GIs for pepper in

collaboration with the

relevant agencies.

Product Sector: Spices & allied products – Barriers

No. Barriers EDB Role Functions Actions

01 Lack of

quality

supplies for

exports

Facilitator Co-ordinate

with relevant

agencies to

expand the

extent under

cultivation and

increase

production.

- Encourage regional

plantation companies to

cultivate spices in their

plantations.

- Introduce high yielding

varieties and other good

agricultural practices in

collaboration with the

relevant government

authorities.

02 Lack of

investment of

value creation

processes

Facilitator Encourage

investors/

Exporters to

create value.

- Assist to improve value

chain efficiency through

upgrading the production

process to meet

international quality

standards.

03 Lack of

technology

Facilitator/

Knowledge

Facilitate

technology

- Conduct awareness

programmes on Good

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107

No. Barriers EDB Role Functions Actions

transfer to the

industrialists

provider transfer to the

industry.

Agricultural Practices.

- Introduce new farm

technology to the industry.

04 Lack of

quality

improvement

programmes

Promoter/

Knowledge

provider

Facilitate

quality

improvement

programmes.

- Assist to obtain quality

certification.

- Conduct awareness

programmes in

collaboration with SLSI and

DEA.

- Launch technical exposure

programmes for

industrialists.

- Encourage the industry to

maintain quality

throughout the supply

chain.

- Create awareness

programmes on

International Quality

Standards.

05 Lack of

technically

skilled labour

Facilitator/

Knowledge

provider

Improve

technical skills

of the industry.

- Organize skill development

programmes to improve

technical knowledge of the

work force in collaboration

with relevant institutions.

06 Diminishing

share in

existing

markets and

unexploited

potential in

niche markets.

Promoter Strengthen the

market share in

existing

markets and

explore

potential in

new markets.

Conduct appropriate market

development programmes in

existing and potential niche

markets.

Trigger/Barriers Analysis for Other Product Sectors (OPS)

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108

(1) Product Sector: Fish & fishery products - Triggers

No. Triggers EDB Role Functions Actions

01 International

recognition for

quality fish

products and

traceability

Monitor

Facilitator

Promoter

Monitor and

upgrade

industry

standards to

maintain the

international

recognition.

- Coordinate with relevant

local authorities to

conduct periodic

inspections for monitoring

and maintenance of

industry standards.

- Liaise with relevant

international agencies to

obtain updated industry

information and

implement technology

transfer programmes.

- Continue membership

with INFOFISH.

- Conduct awareness

seminars and

international publicity

campaigns.

Promoter Market

promotion of

products in

existing and

new markets.

- Participate in major sea

food exhibitions to

increase the market share.

02 Adherence to

CITES

regulations to

protect

endangered

fish species

Knowledge

Provider

Comply with

international

regulations to

avoid conflicts.

- Create awareness of

international conventions

to protect endangered fish

species.

03 Opportunities

for

Promoter

Promote

exploitation of

- Create awareness of

export opportunities and

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109

No. Triggers EDB Role Functions Actions

exploitation of

fish resources

in North and

East for export

Facilitator

available

fisheries

resources.

quality requirements.

- Facilitate establishment of

infrastructure.

- Facilitate studies to

identify opportunities for

establishment of

aquaculture projects.

04 Year-round

fishing and

decentralized

fish harbour

facilities

Promoter

Ensure quality

fish supply for

export

- Encourage foreign

collaboration to establish

processing & canning

facilities.

05 Availability of

natural water

bodies

suitable for

establishment

of aquaculture

projects.

Promoter

Knowledge

provider

Facilitator

Increase

cultured fish

supply for

export.

- Create awareness of

export opportunities and

quality requirements.

- Assist implementation of

pilot projects.

Product Sector: Fish & fishery products – Barriers

No. Barriers EDB Role Functions Actions

01 Imposition of

regulations,

tariff and non-

tariff barriers

by the

importing

countries

Knowledge

Provider

Facilitator

Facilitate

adherence to

entry

requirements of

international

markets.

- Provide industry

stakeholders with market

intelligence.

- Conduct periodical

analysis for quality &

standard requirements in

international markets.

- Build capacity to

overcome non tariff

barriers.

- Conduct awareness

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110

No. Barriers EDB Role Functions Actions

Seminars/media

campaigns

- Assist industry to comply

with international

standards, regulations and

certifications.

02 Inadequate

applications of

modern

technology for

deep sea /

offshore

fishing and

value addition

techniques.

Knowledge

provider /

Facilitator

Facilitate export

of quality fish

products to

boost export

earnings.

- Carry out research on

value added techniques

- Conduct training and

exposure programmes.

- Assist to produce and

export value added

products through

introduction of latest

technology.

- Increase export of quality

tuna fish by application of

long line technology.

03 Lack of raw

material for

processing

and value

addition

Policy

Adviser

Increase supply

of raw material

for processing

and value

addition.

- Co-ordinate with relevant

authorities to review

import regulations for raw

materials.

- Facilitate import of high

value exotic edible fish

species to breed and

culture in captivity.

04 Under

utilization of

deep sea

fisheries

resources and

potential for

aquaculture

Knowledge

Provider /

Facilitator

Facilitate

utilization of

untapped

fisheries

resources and

potential

aquaculture

- Commercialization of Fin

fish / shell fish culture in

cages/ponds and facilitate

exports.

- Facilitate application of

new technology to utilize

deep sea fisheries

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111

No. Barriers EDB Role Functions Actions

production products for

export.

resources.

05 Growing

consumer

concern

towards eco-

friendly

chemical free

fishery

products.

Facilitator /

Promoter /

Knowledge

Provider

Create

awareness on

new market

trends and

adopt suitable

measures to

capture a

considerable

share in the

market.

- Encourage organic

farming of shrimps and

other aquaculture

products.

- Create awareness of new

market trends for

sustainable and eco-

friendly fisheries

products.

- Assist exporters to obtain

eco-labels to be

competitive in the

international market.

06 Decline of

shrimp supply

for export due

to sudden

disease

outbreaks.

Facilitator /

Knowledge

Provider

Ensure constant

supply of

shrimps for

exports.

- Facilitate introduction of

an insurance scheme for

shrimp farmers.

- Create awareness of

disease control methods

and Best Management

Practices.

(2) Product Sector: Coconut & coconut based products - Triggers

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112

No. Triggers EDB Role Functions Actions

01 Increasing

trend for

natural

products

(specially fibre

based)

Knowledge

provider

Provide industry information and assure supply of quality products

- Disseminate information on market intelligence.

- Establish & launch a data base on “Sri Lankan Coconut Products”.

- Skills development programmes to manufacture value added products.

Promoter Identify new

markets.

- Promote export of value

added coir products in

traditional & new

markets.

- Launch brand promotion

for desiccated coconut &

bristle fibre.

- Promote the use of geo

textiles internationally for

erosion control.

Knowledge

provider

Create

awareness of

local use of geo

textiles and

other coir

products.

- Create awareness of local usage of coir base products in collaboration with relevant stake holders.

- Facilitate

commercialization of new

and innovative products.

Product Sector: Coconut & coconut based products - Barriers

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113

No. Barriers EDB Role Functions Actions

01 Shortage of

fresh coconut

to use as a raw

material in

kernel based

products.

Facilitator Work with

Coconut

Cultivation

Board to

increase the

acreage

especially in the

North and East.

Request the Coconut

Cultivation Board (CCB) to

encourage more coconut

cultivation especially of high

yielding varieties.

Knowledge

provider

Reduce local

consumption/w

astage of

coconuts.

- Conduct awareness

programmes to promote

efficient domestic usage of

fresh coconut.

- Research and

Development on value

added Kernel products.

02 Non

availability of

simplified

export

procedures

Facilitator Streamline

export

procedures to

facilitate

exports.

Adopt

appropriate

policies to

promote export

of value added

products.

Conduct discussions with

relevant stakeholders to

streamline export procedures

and reduce export CESS for

value added coconut

products.

03 High prices of

raw materials

(coconut

husks) use in

the industry.

Policy

Advisor

Facilitator

Encourage

manufacturing

of coconut chips

in non fibre

producing

areas.

- Create awareness on

productive usage of

coconut husks in

identified non fiber

producing areas.

- Encourage exporters to

establish husks chip

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114

No. Barriers EDB Role Functions Actions

manufacturing industries

in selected areas.

(3) Product Sector: Electrical & Electronics- Triggers

No. Triggers EDB Role Functions Actions

01 Trainable

workforce

Knowledge

Provider

Industry

specific skills

development

programmes to

meet the needs

of the industry.

- Conduct awareness and

skills development

programmes.

- Provide specific training

for the exporter

community.

02 Capability/flex

ibility in MOQ

(Minimum

Order Quality)

Promoter

Profile Sri

Lanka’s

producers/

suppliers of

electronic

products &

disseminate

their capabilities

to overseas

buyers.

Improve the web portal to

provide this information and

to promote the web portal.

03 The industry

is integrated

with the

software and

ICT industry

Facilitator

Promoter

Develop the

supply

capabilities of

the industry to

cater to the ICT

Sector.

- Network with relevant

private and public

stakeholders of ICT &

electronic sector.

- Assist to upgrade quality

to meet requirements of

the buyers of ICT Sector.

04 Low cost

production

Facilitator

Promoter

- Position Sri

Lanka as a

source of

low cost

electric

products.

- Promote Sri Lankan

electronic industry

through the web portal &

Sri Lankan missions, the

Diaspora abroad.

- Assist to improve

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115

No. Triggers EDB Role Functions Actions

- Enhance the

productivity

of the

industry.

- Promote

backward

integration.

productivity.

- Liaise with relevant

agencies to encourage

investment in the electric

sector.

05 Low cost

middle level

technical staff

& good

alternative to

abundant

employees of

the apparel

sector

Facilitator Promote Sri

Lanka electric

industry as a

potential sector

for investment.

Liaise with BOI to attract

investment/joint ventures to

the electric sector.

06 ISFTA &

PSFTA

capability of

catering to

South Asian

market on

duty free basis

Knowledge

Provider/

Promoter

- Identify

specific

products to

promote in

the SAARC

region.

- Create

awareness of

Grant

concessions

under the

FTAs.

- Establish

linkages

with Indian

electrical

industry for

such

contracting.

- Conduct market surveys/

research.

- Disseminate market

information to the

industry.

- Carry out appropriate

market promotion

programmes.

- Assist exporters to

establish linkages with

overseas manufacturers.

Product Sector: Electrical & electronic- Barriers

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116

No. Barriers EDB Role Functions Actions

01 Under

utilization of

facilities

available in Sri

Lanka in

products

design, R&D,

etc.

Facilitator

Knowledge

Provider

- Establish links

among

Universities,

R&D

institutions

and the

industry.

- Encourage

R&D in the

electrical

sector.

- Provide new

technical/desi

gn trends &

know how to

the industry.

- Network with all R&D

& academic institutes

to meet R&D needs of

the industry.

- Liaise with relevant

agencies to disseminate

and transfer

technical/design trends

& knowledge.

02 Lack of

backward

integration &

supporting

industries

Facilitator

Policy

Adviser

- Set up a

dedicated

park for

manufacturers

of electrical

products and

supporting

industries.

- Policy

measures to

encourage

backward

integration.

- Liaise with relevant

agencies and the

industry to set an e-

park

- Make

recommendations to

the government to

promote backward

integration in the

electrical industry.

03 No name as a

electrical

manufacturer

Promoter

- Promote Sri

Lanka as a

quality

supplier of

electrical

products and

components.

- Organize appropriate

market promotion

activities.

- Promote Sri Lankan

electric industry

through the web portal,

Sri Lankan Missions

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117

No. Barriers EDB Role Functions Actions

- Launch an

aggressive

market

promotion

campaign.

abroad and diaspora.

04 Comparatively

high cost of

production

due to

imported

inputs

Policy

Adviser

Make policy

recommendations

to encourage

backward

integration.

Liaise with relevant

agencies to adopt

appropriate measures to

encourage setting up of

supporting industries for

electrical sector.

05 Lack of local

market for

export

industries to

mature (due to

import

intervention)

Policy

Adviser

Promoter

- Improve

quality of

locally

manufactured

electrical

products.

- Policy

recommendati

ons to

discourage

import of

electric

products.

- Assist manufacturers to

improve quality of the

product.

- Liaise with relevant

agencies to introduce

measures to discourage

imported electrical

products.

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118

(5) Product Sector: Paper & paper products (Printing, Paper Product and

Stationery) - Triggers

Printing

No. Triggers EDB Role Functions Actions

01 Easy access to

workforce due

to job

recognition.

Facilitator Strengthen the

skills of

workforce to

suit export

market.

Strength and upgrade

training institutions and

carry out advanced training

programmes.

Paper & Paper based

01 Highly

trainable work

force

Facilitator Strengthen the

skills of

workforce to

suit export

market.

Facilitate exchange of

printing technology and

expand industry.

02 Availability of

creative skills

Facilitator

Promoter

Knowledge

provider

Access to niche

market with

premium price.

- Carry out product

adaptation,

development

programmes.

- Organize appropriate

market promotion

activities, i.e.,

participation in

international trade

fairs/exhibitions/single

country exhibitions,

outward buying

missions.

03 Availability of

variety of raw

materials

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119

Product Sector: Paper & paper products (Printing, Paper Product and

Stationery) – Barriers

Printing

No. Barriers EDB Role Functions Actions

01 Limited

number of

companies

with export

potential.

Facilitator Facilitate the

exchange of

printing

technology.

Create awareness on the

export potential and provide

necessary facilities (finances,

market information).

02 Lack of

recognition of

Sri Lanka as

country to

source

printing

Promoter Launch an

aggressive

International

Market

promotion

programmes in

key markets.

Create awareness and carry

out product specific

marketing programmes.

03 Insufficient

skilled labour

force.

Facilitator

Knowledge

provider

Strengthen and

upgrade

training

institutes.

Obtain international

professional experts for

training and introduce high

tech machinery for advanced

training.

04 High cost of

financing

Monitor

Facilitate low

cost financing.

Initiate dialogue with local

finance institutions.

05 Non

availability of

supporting

services

Facilitator

Backward &

forward

linkages.

Encourage & develop service

providers. (book binding,

finishing and other related

services.

Develop raw materials for the

industry.)

Paper & Paper based

01 Insufficient

Export

Capacity

Facilitator Encourage

investments

Create awareness of export

market opportunities.

02 Unorganized Facilitator Promote Formation of clusters and

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120

No. Barriers EDB Role Functions Actions

and scattered

nature of

industry with

many small

entrepreneurs.

Promoter

professionalism

and create

industry

linkages.

organize local event to create

recognition.

(6) Product Sector: Boat Building - Triggers

No. Triggers EDB Role Functions Actions

01 Capability in

manufacturing

high quality

products.

Facilitator

Promoter

- Supply chain

efficiency to

maintain

competitiven

ess.

- Market

development

programmes

to enter

new/emergin

g markets.

- Assist to adopt new

technology and

productivity

improvements.

- Carry out market

development programmes

in relevant markets.

- Conduct research to

identify market

potential/new markets.

- Liaise with relevant

academic/technical

institutions to meet HR

requirements of the

industry.

02 Increasing

demand in

fisheries,

tourism,

defense and

oil industry

Facilitator - Promote

backward

integration

for rising

input needs

of the

industry.

- Liaise with the Treasury

to adjust tariff structure to

encourage backward

integration.

- Liaise with other sections

(i.e., oil industry, defense)

to use locally

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121

No. Triggers EDB Role Functions Actions

- Introduce

new designs

to cater to

demands

from other

sections.

- Establish

required

infrastructur

e and other

services.

manufactured boats.

- Liaise with relevant

agencies to develop

infrastructure required by

the industry.

03 Government

policy to

making Sri

Lanka a naval

hub

Facilitator

Policy

adviser

Formulate a

road map to

develop the boat

industry in line

with

Government

Policy.

Liaise with all relevant

agencies to formulate a road

map to develop the industry.

04 Existence of

certified

institutions

such as Lloyds

in Sri Lanka.

Facilitator

Knowledge

provider

Create

awareness of

international

standards of

boats.

- Liaise with certification

institutions to educate the

manufacturers on

international standards.

- Initiate assistance schemes

for industrialists to obtain

the Lloyds certification.

05 Existence of

Boat

Technology

Improvement

Institution

(BTI) to

develop the

industry

Facilitator - Co-operate

to transfer

modern

technology,

enhance

technical

skills &

productivity

improvemen

- Liaise with BTI and other

stakeholders to transfer

modern technology to the

industry.

- Conduct market surveys

in collaboration with BTI.

- Continue to organize

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122

No. Triggers EDB Role Functions Actions

t in the

sector.

- Assist to

identify

overseas

market

opportunitie

s.

“Boat Shows” with BTI.

06 High demand

for boats,

specially

leisure,

security and

oil industry in

EU, Asian,

Middle East

and African

regions

Promoter - Launch

market

development

programmes

in key

markets.

- Launch

image

building

programmes

for Sri Lanka

boat

industry.

- Assist boat building

exporters in their own

marketing efforts.

- Organize trade fairs,

single country exhibitions,

buyer/seller meetings

overseas.

- Launch image building

programmes for the boat

industry of Sri Lanka.

Product Sector: Boat Building – Barriers

No. Barriers EDB Role Functions Actions

01 Lack of

infrastructure

facilities at

production

yard to obtain

Lloyds

certification.

Facilitator

Policy

Adviser

Promoter

- Encourage

and assist to

upgrade

existing boat

yards to

meet

international

standards

- Liaise with relevant

agencies to upgrade

infrastructure needed by

the industry.

- Assist to upgrade the

existing boatyards to

international standards.

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123

No. Barriers EDB Role Functions Actions

and establish

new

boatyards at

selected

suitable

location with

modern

facilities.

- Construct under water

hull repair facilities in

boatyards.

- Provide investment

incentives to develop

infrastructure.

02 Ocean & inland

water resources

and lands with

sea frontage are

not easily

accessible to

private

investors.

Facilitator - Attract

private

sector, local

and foreign

investors to

utilize lands

with sea

frontage to

develop boat

building &

ship

repairing.

- Liaise with relevant

agencies to formulate a

road map to optimize the

resources for developing

the boat industry.

- Liaise with BOI to attract

investors to boat industry

and relevant

infrastructure

development.

03 Lack of capital

to invest for

developing the

industry.

Facilitator

Knowledge

provider

- Attract

foreign &

local

investment

to develop

the boat

building

industry.

- Create

awareness

among the

business

community

of export

opportunitie

- Liaise with BOI to

promote investment.

- Conduct awareness

programmes/disseminate

information in

collaboration with

relevant agencies.

- Liaise with Central Bank

and commercial banks to

arrange soft loan facilities

for the industry.

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124

No. Barriers EDB Role Functions Actions

s for the boat

industry.

04 Lack of design

Capabilities &

Slow

technological

transfers.

Limited

number of

trained work

force.

Promoter Develop

capacity

building

programmes for

the industry.

- Obtain expert services for

improving technology,

quality & product design.

- Develop skills

development programmes

together with Boat

Building Technology

Improvement Institute

(BTI) for improving skills.

05 Lack of

awareness of

market

potential &

market

opportunities.

Facilitator

Promoter

Make available

information on

export

opportunities

through Sri

Lanka Mission

overseas, the

Diaspora and

other

international

organizations.

- Conduct market research

to identify market

opportunities, trends and

to disseminate

information.

- Organize market exposure

programmes.

- Initiate a dialogue with

relevant institutions to

create a mechanism to get

information on

international trends.

- Introduce a mechanism

for international tender

monitoring service for the

exporters to get

information on current

International tenders.

06 Lack of

international

awareness of

Sri Lanka’s

Promoter Create

awareness

internationally

about Sri Lanka

- Carry out image building

programmes in key

markets.

- Organize appropriate

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125

No. Barriers EDB Role Functions Actions

Boating

Industry

as a country of

Boat Builders.

market promotional

programmes such as boat

shows, buying missions in

identified markets.

- Assist the “Boat Show” Sri

Lanka.

07 High cost of

taxes, higher

freight charges

and procedural

barriers

Facilitator Measures to

reduce high

tariffs on raw

materials and

time

consuming

procedures.

Initiate a dialogue with the

Treasury and Sri Lanka

Customs and other relevant

institutions.

08 Inferior quality

of imported

raw material

Facilitator Initiate a

mechanism to

monitor the

quality

standards of

raw materials

imported.

Establish an accredited

certifying body to control the

quality of imported raw

material.

(7) Product Sector: Professional services - Triggers

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(Construction related services/ Healthcare (Ayurvedic) services/ Finance &

Accounting outsourcing/ Legal services/ medical services/ Research/etc.)

No. Triggers EDB Role Functions Actions

01

Availability of

a pool of skills

Promoter Promote their

skills in global

markets.

Promote a professional

services web portal.

Organize promotional

activities.

02 Export market

prices are

attractive

compared to

local prices

Promoter Promote this

competitive

advantage in

global markets.

Promote a professional

services web portal.

Organize promotional

activities.

03 Ability to earn

foreign

exchange.

Adviser

Facilitator

Communicate

this benefit to

other service

exporters and

prospective

local service

exporters.

Organize awareness

programmes and press

campaigns to communicate

this advantage.

04 Ability of tax

concessions,

etc.

Adviser

Facilitator

Communicate

this benefit to

other service

exporters and

prospective

local service

exporters.

Organize awareness

programmes and press

campaigns to communicate

incentive available for the

professional services sector.

05 Global

exposure

Adviser

Facilitator

Communicate

the advantage

of global

exposure to

prospective

global service

exporters.

Organize awareness

programmes and press

campaigns to communicate

incentives available for the

professional services sector.

Product Sector: Professional services- Barriers

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127

No. Barriers EDB Role Functions Actions

01 Lack of global

recognition as

service

provider.

Promoter Internationally

some

programmes to

gain the global

recognition as a

source country.

Hire a globally recognized

PR company to boost the

Sri Lankan image.

02 Prospective

service

exporters are

not aware of

benefits of

service

exports.

Advisor Raise

awareness of

the benefits of

the service

exports.

Organize awareness

programmes with resource

persons such as market

consultants.

03 Lack of

awareness of

regulations,

procedures

and incentives.

Advisor Raise the

awareness of

regulations &

procedures on

the service

exporters.

Organize practical

programmes to raise the

awareness of service

exporters on regulations etc.

04 Lack of market

knowledge

and market

mechanisms

such as

tenders, RFQs

etc.

Facilitator Develop a

mechanism to

facilitate market

awareness of

the service

exporters.

Develop a mechanism to

gather relevant, dynamic

market information service

sector.

05 Insufficient

utilization of

non resident

Sri Lankan to

obtain

marketing

advantage.

Facilitator Raise awareness

of Sri Lankan

capabilities

among the non

resident Sri

Lankans and

promote

relationship

with service

Gather information on

prominent non resident Sri

Lankans through foreign

missions.

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128

No. Barriers EDB Role Functions Actions

exporters.

06 Low level of

quality

certification

among service

exporters.

Facilitator Provide

assistance to

service

providers to

obtain global

standards.

Implement a programme to

assist the service exporters

to obtain global quality

standards.

07 Lack of

upgrading of

skills with in

service

exporters.

Facilitator Assist service

providers to get

their skill sets in

par with global

demand.

Conduct awareness

programmes, exposure

programmes.

08

Non

availability of

sensitive

statistics.

Facilitator Obtain most

reliable

statistics.

Hire an audit company to

obtain sensitive statistics.

09

Tax & foreign

exchange

issues which

discourage

service

exporters.

Facilitator Resolve tax

issues foreign

exchange issues

relevant to

service exports.

Create a dialog between

service exporters and

related bodies.

(8) Product Sector: Ceramics & other mineral based products- Triggers

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129

No. Triggers EDB Role Functions Actions

01 Highly

trainable

workforce.

Facilitator

Develop skills

to meet the

needs of export

industry.

Network with all trade

related international &

local agencies, R&D, BDS,

technical assistance etc.

02 Availability of

raw material.

Facilitator

Knowledge

Provider

Development of

zoning of land

for raw material

and introduce

efficient mining

procedures.

- Network with other

related organizations in

under-taking a

comprehensive

geological survey and

introduce efficient

mining procedures.

- Introduce new

technology for

purification.

03 Capability in

manufacturing

high quality

products.

Practicing

modern

manufacturing

techniques

and quality

assurance

methods.

Promoter

- Develop

brand

identity and

quality

recognition

for the

industry.

- Positioning

of the

industry in

niche export

market with

higher value

addition.

- Organize appropriate

market promotion

activities

- Implement programmes

for image building and

assist brand

development

programmes of

exporters.

- Increase competitiveness

of the industry by

providing expert

services.

Product Sector: Ceramic & other mineral based products – Barriers

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130

No. Barriers EDB Role Functions Actions

01 Comparatively

high cost of

energy.

Policy

Advisor

Facilitator

- Measures to

be taken to

reduce the

high cost of

energy.

- Introduce

alternate

energy

sources and

systems for

efficient use

of energy.

- Initiate a dialogue with

Treasury and other

relevant institutions in

making available

energy sources (gas,

electricity and diesel)

at international prices

for the sector.

- Development of a

mechanism for

financing technology

improvement to

reduce energy costs.

02 Lack of brand

identity and

quality

recognition.

Promoter

Create a

country image

as a supplier of

quality

ceramic/

porcelain

- A planned coordinated

effort to promote the

image of ceramics

produced in Sri Lanka.

03 Lack of

technology &

design

intelligence.

Promoter

Knowledge

Provider

Obtaining of

expert services

for improving

technology,

quality, product

design &

packaging.

- Develop new

capacities to enhance

competencies in the

exporter community.

- Encourage export

oriented investment

for R&D and product

development/

adaptation (designs,

packaging, etc.).

- Conduct awareness

and skills development

programmes

- Provide specific

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131

No. Barriers EDB Role Functions Actions

training for the

exporter community.

04 Inadequate

efforts to

capture new

markets.

Promoter Undertake

market

diversification

programmes

Organize focused market

promotion activities in

identified markets.

(9) Product Sector: Fruits & vegetables - Triggers

No. Triggers EDB Role Functions Actions

01 Prominent

sector in

agriculture

base products.

Facilitator

Knowledge

Provider

Facilitate and

encourage

more export

oriented

cultivation of

fruits and

vegetables.

- Develop a resource

map (data base).

- Provide industry

awareness and market

intelligence for the

stakeholders on

suitable crops for

export.

- Encourage commercial

cultivation.

- Introduce packaging

systems to minimize

post harvest losses and

improve quality.

- Develop and upgrade

- Existing transportation

systems with the help

of relevant

organizations.

- Network with all trade

related and local

agencies to obtain

market information

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132

No. Triggers EDB Role Functions Actions

and technical

assistance.

02 Highly diverse

agro ecological

zones

(opportunities

for cultivate

vast variety of

fruits and

vegetables).

Facilitator

Facilitate

cultivation of

crops in

different agro

ecological

zones.

- Introduction of

centralized farming

systems with modern

technology.

- Co-ordinate with

relevant agencies to

provide cultivation

technology to obtain

year round

production.

- Assist to establish out

grower systems.

- Coordinate with

district level

agriculture

committees.

03 Distinctive

character in

some fruit and

vegetable

crops.

Promoter Promote

identified fruits

and vegetables

varieties in

international

markets.

- Conduct market

surveys and research

to identify potential

markets.

- Obtain services of

overseas trade related

agencies & Sri Lankan

Diaspora to promote

products.

- Market promotion of

fruits and vegetables in

existing and new

markets.

- Brand promotion of

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133

No. Triggers EDB Role Functions Actions

identified fruits crops.

- Preparation of product

brochures.

- Execution of trial

shipment of selected

fruit crops to un-

tapped market with

selected exporters.

04 Proposed

harbour and

air port in the

Southern

region.

Facilitator

Promoter

Increase

supplies for

export.

- Create awareness on

potential products.

- Encourage commercial

cultivation by public/

private partnership.

- Organize farmer

clusters in suitable

climatic locations.

- Assist to develop

infrastructure facilities

in selected locations.

05 Application of

advance

cultivation

practices.

Promoter

Facilitator

Facilitate

introduction of

new technology

to increase

productivity.

- Facilitate introduction

of cost effective new

production

technologies.

- Conduct awareness

programmes for

farmer community.

- Assist exporters to

apply new technology.

Product Sector: Fruits & vegetables – Barriers

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134

No. Barriers EDB Role Functions Actions

01 Un organized

farming

system which

results to high

price

fluctuations.

Facilitator

Facilitate

supply of

products to

exporters on

buy back

agreement.

Develop export oriented

SMEs and promote

producer -exporter

linkages to supply

products on buy back

agreements.

02 Lack of

investment for

value chain

development.

Promoter

Facilitator

Enhance value

chain

competitiveness.

- Encourage and assist

to develop value

added products.

- Enhance

competitiveness of

value chain by

introduction of

national and

international quality

certification.

- Facilitate local

infrastructure

development and

export related services.

03 Lack of

technical

know-how

Facilitator

Knowledge

Provider

Facilitate

provision of

crop oriented

technical know-

how to obtain

quality fruits

and vegetables

for export.

- Coordinate with

relevant agencies to

provide technology to

farmers.

- Conduct awareness

and skill development

programmes.

- Provide specific

training for the

exporter community.

- Organize technical

exposure

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135

No. Barriers EDB Role Functions Actions

programmes.

04 Low quality

products.

Facilitator Improve

product

quality.

- Organize quality

improvement

programmes in

collaboration with the

SLSI and DEA.

- Assist exporters to

obtain international

quality certifications.

05 Non-

availability of

proper

insurance

system to

protect fruit

and vegetable

cultivation

Facilitator Facilitate to

formulate an

insurance

scheme

Facilitate introduction of

an appropriate crop

insurance scheme for

export-oriented

cultivation.

06 Lack of air

cargo space

and high

prices

Facilitator Facilitate

availability of

sufficient cargo

space.

Discuss with relevant

stakeholders to solve the

problem.

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136

(10) Product Sector: Toys, games & sports - Triggers

Toys sector

No. Triggers EDB Role Functions Actions

01 Recognition

for adhering to

international

quality

standards

Facilitator

Promoter

Promote Sri

Lanka as a

country which

produces quality

toys adhering to

international

standards.

- Conduct PR

campaigns in

identified markets.

- Organize

appropriate market

promotion

activities, i.e.,

participation

international trade

fairs,/exhibitions/si

ngle country

exhibitions,

outward buying

missions.

02 Trainable and

skilled

workforce

Knowledge

provider

Industry specific

advanced skill

development

programmes to

meet the needs of

the international

market.

Encourage

industrialists to

invest in the toy

sector.

- Conduct awareness

and skill

development

programmes.

- Provide specific

training for the

exporter

community.

- Develop a second

tier of toy exporters

and increase the

number of toy

exporters.

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137

Product Sector: Toys, games & sports - Barriers

Toys No. Barriers EDB Role Functions Actions

01 High cost of

testing and

certification

Facilitator Formulate a

mechanism to

subsidize the high

cost.

Implement a scheme

to assist in obtaining

required quality/

standards

certification.

02 Unorganized

and scattered

nature of

industry with

many small

entrepreneurs

Facilitator

Promoter

Promote

professionalism and

industry linkages.

- Formation of

clusters and

organize local

events to create

recognition.

- Development of a

data base

(software

package) for the

industry.

03 Lack of

market

information

on new trends

and updated

information

on quality

standards

Facilitator

Promoter

- Obtain foreign

expertise on

designing and

quality

upgrading.

- Network with

international

governing/certif

ying bodies of

the industry.

- Conduct product

specific

design/product

development

programmes.

- Awareness

among the

industry.

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138

(11) Product Sector: Giftware- Triggers

No. Triggers EDB Role Functions Actions

01

Availability of

creative skills

and

variety of raw

materials

Facilitator

Promoter

Knowledge

provider

Access to niche

market with

premium price.

- Carry out product

adaptation,

product & design

development

programmes

targeting the

niche market.

- Organize

appropriate

market

promotion

activities, i.e.,

participation at

international

trade

fairs/exhibitions/s

ingle country

exhibitions,

outward and

inward buying

missions.

02 Trainable &

skilled

workforce

Knowledge

Provider

Industry specific

advanced skills

development

programmes to

meet the needs of

the international

market.

- Conduct

awareness and

skills

development

programmes.

- Provide specific

training for the

exporter

community.

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139

Product Sector: Giftware – Barriers

No. Barriers EDB Role Functions Actions

01 High cost of

testing and

certification

Facilitator Formulate a

mechanism to

subsidize the high

cost.

Implement an

assistance scheme to

assist in obtaining

required

quality/standards

certification.

02 Unorganized

and scattered

nature of

industry with

many small

entrepreneurs.

Facilitator/

Promoter

Promote

professionalism &

industry linkages.

- Formation of

clusters and

organize local

events to create

recognition.

- Development of a

data base

(software

package for the

industry).

03 Lack of market

information

on new trends

& updated

information

on quality

standards.

Facilitator/

Promoter

Obtain foreign

expertise on

designing and

quality upgrading.

Networking with

international

governing/certifying

bodies of the

industry.

- Conduct product

specific design/

product

development

programmes.

- Awareness

among the

industry.

04 Lack of

knowledge on

soft skills and

export

marketing

Knowledge

provider

Offer training

courses & develop

competence in

export marketing.

Organize continuous

training

programmes

targeting export

markets through

EDB and other

training institutes.

05 Lack of micro Facilitator Facilitate low cost - Initiate dialogue

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140

No. Barriers EDB Role Functions Actions

finance financing.

with financial

institutions.

- Link companies

to identify

financial

institutes.

06 Limited

number of

companies

with export

potential

Facilitator Target niche market

segments.

- Product and

market

development

programmes

targeting niche

export markets.

(12) Product Sector: Base metal products -Triggers

No. Triggers EDB Role Functions Actions

01 Availability of

raw material

Facilitator Introduce new

technology to

identify raw

material

characterization

(e.g. Spectrometer).

Carry out targeted

and product specific

marketing activities.

02 Highly

trainable

workforce

Facilitator Continuous

training to upgrade

skills of the base

metal industry.

- Encourage

manufacturers to

upgrade skills of

their labour force.

- Develop and

carry out

programmes to

upgrade

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141

No. Triggers EDB Role Functions Actions

technology &

design

development.

Product Sector: Base metal products – Barriers

No. Barriers EDB Role Functions Actions

01 Lack of

awareness of

market

potential and

market

opportunities

Promoter

Facilitator

- Create

awareness

among business

community

along with other

partner

institutions.

- Make available

information on

export

opportunities

through Sri

Lanka missions

overseas,

diaspora and

other

international

organizations.

- Conduct market

research to

identify market

opportunities and

disseminate

information.

- Organize market

exposure

programmes.

02 Lack of design

capabilities &

slow

technology

transfer.

Promoter

Knowledge

provider

Develop capacity

building

programmes for the

industry with the

co-ordination of

relevant agencies.

- Organize

awareness and

technical

exposure

programmes for

industrialists.

- Obtain expert

services for

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142

No. Barriers EDB Role Functions Actions

improving

technology,

quality & product

design.

- Initiate

appropriate

measures to build

a strong local

industry, which

will lead to

increase in

exports.

03 Concentration

only on rough

castings

instead of

finished/sub

assemblies.

04 Many

enterprises are

still using the

traditional

technology.

05 Lack of local

market for

export

industries to

nurture (due

to import

intervention)

Policy

Adviser

Promoter

- Improve quality

of locally

manufactured

foundry

products.

- Policy

recommendatio

ns to discourage

import

products.

- Assist

manufacturers to

improve quality

of product

through

technology and

design

development.

- Liaise with

relevant agencies

to introduce

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143

No. Barriers EDB Role Functions Actions

measures to

discourage

imported foundry

base products.

(13) Product Sector: Footwear & leather products - Triggers

No. Triggers EDB Role Functions Actions

01 High value

addition 40%-

50%

Facilitator

Policy Adviser

Create

employment

- Profile Sri

Lanka’s

products/services

and producers/

suppliers.

- Facilitate local

infrastructure

development &

export related

services.

- Propose measures

to expand Sri

Lanka’s trade

through trade

agreements.

- Provide financing

for exports.

02 Availability of

indigenous

supply of

good quality

rubber

Facilitator

Increase the

production of

rubber.

Discuss and resolve

export related issues.

03 Sri Lankas’ Monitor Increase Sri Ensure that exports

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144

No. Triggers EDB Role Functions Actions

image as a

producer of

quality

footwear

Lanka’s presence

in the

international

market.

meet international

standards and

requirements.

04 Duty free

import of raw

materials

Policy Adviser - Increase the

supply base.

- Encourage

potential

exporters.

Recommend

imposition of Cess

and administer the

Export Development

Fund to develop and

promote exports.

05 Adherence to

internationally

accepted

labour

practices

Policy Adviser

Position Sri Lanka

as a source of

ethically

manufactured

leather products.

Recommend measure

to maintain a

conducive business

environment to

enhance

competitiveness.

06 Industry

flexibility is

being able to

handle both

large and

small volume

order

Promoter Create, small-

scale buyers

interest.

Focus attention on

niche markets.

07 Availability of

trained

stitching

operators

Facilitator

Increase

productivity.

Profile Sri Lanka’s

products/ services

and producers/

suppliers. Product Sector: Footwear & leather products – Barriers

No. Barriers EDB Role Functions Actions

01 Inadequate raw

material leather

Policy Advisor - Relocate

tanneries

- Maintain the

duty free

Allow the tanneries

to operate in the

existing locations

without any

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No. Barriers EDB Role Functions Actions

import of

leather to

facilitate the

exports.

obstructions till the

relocation project is

implemented.

02 Recognition for

the industry

Promoter

Build a good

image of the

industry locally &

internationally.

- Organize local/

international

trade exhibitions

& other trade

events in Sri

Lanka.

- Continue

organizing

footwear &

leather fairs and

develop them

into an

international fair.

- Invite inward

buying missions.

- Develop export

oriented SMEs

and promote

linkage between

exporters and

large scale

exporters.

- Recognize and

reward exporters

for their

outstanding

contribution to

the national

economy.

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No. Barriers EDB Role Functions Actions

- Implement a

programme to

motivate and

obtain the

services of

overseas trade

related agencies

and Sri Lankan

diaspora to

promote Sri

Lankan products

and services.

03 Lack of a export

supply base

Facilitator Develop a second

tier of exporters.

- Develop new

capacities to

enhance

competencies in

the exporter

community.

- Organise

technical

exposure

/productivity

improvement

programmes for

potential

exporters.

- Carry out more

integrated

product and

market

development

programmes.

- Develop export-

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No. Barriers EDB Role Functions Actions

oriented SMEs

and promote

linkages between

SME’s & large

scale exporters.

Identify the

potential

exporters &

develop them.

- Provide

financing for

exporters.

04 Develop

product /design

/quality

development

skills

Knowledge

provider

- Conduct product

/market specific

research /studies.

- Disseminate

findings among

the business

community.

- Conduct

awareness and

skills

development

programmes.

- Provide specific

training for the

exporter

community.

05 Increase price

competitiveness

in the existing

market

Knowledge

provider

Provide exposure

to state of art

technology and

latest

productivity

improvement

- Organize

technical

exposure/

productivity

improvement

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No. Barriers EDB Role Functions Actions

methods.

programmes.

- Conduct

awareness and

skills

development

programmes.

- Provide specific

training for the

exporter

community.

06 Inadequate

support for

export

marketing

Promoter

- Consolidate Sri

Lanka’s

position as a

supplier of

quality

footwear &

leather

products in the

existing

markets.

- Organize Sri

Lanka’s

participation in

leading

international

footwear &

leather

products fairs.

- Penetrate new

markets.

Organize

appropriate market

promotion activities,

i.e., participation in

international trade

fairs/

exhibitions/single

country exhibitions,

inward buying

missions, outward

promotion missions,

contact promotion

programmes, road

shows,

establishment of

display

centers/windows,

etc.

Implement

assistance schemes

to encourage private

sector to export.

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149

(14) Product Sector: Wooden products - Triggers

No. Triggers EDB Role Functions Actions

01 Availability of

traditional

craft skills.

Promoter

Knowledge

provider

Make use of the

craft skills to cater

to the export

market.

Conduct Product

adaptation / design

development

programmes.

Product Sector: Wooden products – Barriers

No. Barriers EDB Role Functions Actions

01 High cost of

certification

Facilitator Formulate a

mechanism to

subsidize the

high cost.

Implement an

assistance scheme to

meet part cost of

quality/standards

certification.

(e.g. FSC)

02 Dearth of

skills in new

technology &

designing

Facilitator

Knowledge

Provider

Obtain foreign

expertise on

technology

improvement and

designing and

production

upgrading.

- Conduct product

specific design/

product

development

programmes.

- Create awareness

among the

industry.

03 Lack of

awareness of

market trends

and

opportunities.

Facilitator

Knowledge

provider.

Awareness of

trends, emerging

markets, etc.

Conduct awareness

programmes on

market intelligence.

04 Procedural

delays in

obtaining

certificates

required by

relevant

Facilitator Facilitate the

simplifications of

regulations &

procedures.

Initiate a dialogue

with relevant

institutions.

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No. Barriers EDB Role Functions Actions

institutions.

05 Deteriorating

quality of raw

materials due

to poor

handling

methods.

Knowledge

provider

To facilitate the

introducing

newly available

methods &

equipment.

- Organize

technical skills

development

programmes.

- Awareness

among the

industry of

proper handling

methods.

06 Inadequate

facilities for

timber

treatment and

seasoning.

Facilitator

Knowledge

provider

Strengthen the

existing technical

service centres.

Make available

financial schemes to

upgrade the service

centres.

(15) Product Sector: Floriculture - Triggers

No. Triggers EDB Role Functions Actions

01 Global

imports

growing at

12%

Monitor - Monitor

market

trends

- Monitor Sri

Lanka

performance

in key

markets.

Analyse and

disseminate industry

information and

market intelligence

among the

stakeholders.

Policy Adviser Identify and

recommend

measures to

enhance the

- Serve in the

committee

appointed by the

Council for

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151

No. Triggers EDB Role Functions Actions

competitiveness

of the sector

Agriculture

Research policy

(CARP) for

preparation of a

National Policy

for Floriculture.

- Highlight key

areas to be

focused while

taking policy

decisions and

make

recommendations

in collaboration

with all stake-

holders.

Promoter Formulate

marketing

strategies to

enhance Sri

Lankan Exports

- Increase market

share in existing

markets.

- Conduct research

on prospective

emerging markets.

- Take suitable

measures to

overcome country

specific tariff and

non tariff barriers.

Facilitator

Facilitate an

export conducive

environment in

liaison with all

stake- holders.

- Take suitable

measures to clear

local barriers that

hinder growth in

exports.

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152

No. Triggers EDB Role Functions Actions

02 Tariff

concessions in

the major

export

market, the

European

Union (GSP)

Promoter

Increase market

share in the

European Union.

- Assist exporters to

be competitive in

the European

market by clearing

non-tariff barriers.

- Study

opportunities in

the emerging

markets and help

exporters to enter

these markets.

03 Reputation

built as a

supplier of

quality

products

Promoter

Implement

quality

development

programmes.

Work with the

relevant authorities

to develop a local

certification system

for Good

Agricultural

Practices (GAP).

Knowledge

provider

Conduct

awareness and

skills

development

programmes

- Organize

awareness/technol

ogy transfer

programmes in

collaboration with

the foreign /local

consultants.

- Conduct suitable

training

programmes for

nurserymen.

Facilitator Enhance

competitiveness

- Assist exporters to

obtain

environmental

labels required to

compete in the

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153

No. Triggers EDB Role Functions Actions

market.

- Enhance value chain competitiveness and improve supply chain efficiency.

- Enhance

productivity of

nurseries through

introduction of

cost effective

production

technology.

04 Diverse

climatic

conditions

within the

country.

Promoter

Increase product

diversity.

- Conduct a study

on new products

suitable for

different agro

climatic

conditions within

the country.

- Assist to source

planting material

and cultivation

technology.

05 Availability of

natural

growing

medium (coco

peat)

Facilitator Maintain the

quality of the

growing medium.

Facilitate quality

improvements in coco

peat to compete with

artificial medium and

peat moss.

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154

Product Sector: Floriculture – Barriers

No. Barriers EDB Role Functions Actions

01 Lack of quality

supplies for

exports

Facilitator Co-ordinate with

relevant agencies

to expand the

extent under

cultivation and

increase

production.

- Encourage and

help new investors

to start projects.

- Promote producer

exporter link up

programmes at

regional level.

02 High cost of

production

Facilitator Assist exporters

to minimize cost

of production.

- Facilitate

formulation of low

cost financial

assistance schemes.

- Conduct studies to

improve

productivity of the

nurseries.

- Improve supply

chain efficiency

reducing

unnecessary costs.

- Facilitate

introduction of low

cost production

technology.

03 High

competition

arising from

regional

producing

countries

Facilitator Strengthen the

Industry to face

competition

- Identify niche

markets.

- Increase supplies

meeting economies

of scale to lower the

cost of production.

- Arrange

discussions with

relevant authorities

to obtain

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155

No. Barriers EDB Role Functions Actions

competitive freight

rates.

- Facilitate operation

of direct flights to

main markets.

04 Lack of

Research and

Development

Facilitator Facilitate industry

oriented R & D.

- Encourage R & D

on new products.

- Facilitate import of

new varieties to

increase product

assortment.

(16) Product Sector: Ornamental fish - Triggers

No. Triggers EDB Role Functions Actions

01 Long-term

export

experience

and the

quality of the

fish produced

in Sri Lanka.

Facilitator

knowledge

Provider

Maintain the

recognition in the

world market and

monitor the

supply of quality

fish.

- Develop a resource

map (data base) for

the sector.

- Identify and

recommend

measures to

enhance

competitiveness.

- Increase the current

market share

through market

promotion

activities and

promote new

varieties at

international fish

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156

No. Triggers EDB Role Functions Actions

competitions.

- Encourage

breeding and

commercialization

of marine & exotic

species and new

varieties of fish for

exports.

- Assist exporters to

establish

quarantine/holding

facilities.

02 Geographical

location

Knowledge

provider

Increase product

assortment by

introducing

suitable new fish

species.

- Facilitate relaxation

of existing

regulations to

import high value

ornamental fish.

- Breed exotic fish

species for export.

03 Availability of

shore line rich

with coral

reefs around

the country

Facilitator Regularize

marine fish

collection from

the sea.

- Train marine fish

divers on proper

handling and

catching of marine

fish.

- Implement pilot

scale projects on

soft coral culture.

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157

Product Sector: Ornamental fish – Barriers

No. Barriers EDB Role Functions Actions

01 Inadequate

supply of

good quality

fish

Facilitator Improve supply

chain to obtain

fish for export.

- Coordinate supply

development

programmes.

- Implement quality

improvement

programmes.

- Identify and

recommend

measures to

enhance the

competitiveness of

aquarium fish

sector.

02 Lack of new

technology

Knowledge

provider

Identify required

technological

advancements in

the industry.

- Identify required

technological

advancements in

the industry.

- Organize training

programmes

/exposure

programmes on

packing, breeding

etc.

- Coordinate with

the other

organizations to

obtain suitable

technology.

03 Regulatory

barriers in

collection,

breeding and

Facilitator Facilitate export

conducive

environment.

- Review existing

regulations in

collaboration with

relevant authorities

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158

No. Barriers EDB Role Functions Actions

transportation to facilitate exports.

- Co-ordinate with

relevant

stakeholders to

solve the industry

problems.

04 Lack of

infrastructure

facilities

Facilitator Identify

infrastructure

facilities required

by the industry.

Coordinate with other

organizations to

provide required

infrastructure facilities

to the industry.

05 Lack of

coordination

among

relevant

government

organizations

Facilitator Co-ordinate with

other

organizations to

solve the industry

problems.

- Overcome delays at

the Airport.

- Improve air cargo

space.

06 Lack of market

intelligence.

Knowledge

provider

Provide up-to-

date market

intelligence.

- Liaise with trade

promotion

organizations to

collect information

on market needs,

new trends,

strategies adopted

by other

competitors.

- Obtain

membership of the

OFI. (Ornamental

Fish International)

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159

No. Barriers EDB Role Functions Actions

- Disseminate up-to-

date market

intelligence.

07 High costs of

feed,

packaging and

electricity

Monitor

Facilitator

R & D to develop

low cost feed.

PPP programmes to

develop low cost feed.

(17) Product Sector: Handloom textile products - Triggers

No. Triggers EDB Role Functions Actions

01 Highly labour

intensive

operation and

provides

employment

opportunities

for rural

community

Knowledge

Provider

Encourage new

entrepreneurs in

to the industry.

- Conduct awareness

programmes and

workshops on the

industry to attract

new entrepreneurs.

- Provide training

facilities through the

relevant government

body.

02 The product is

largely

ecologically

friendly

Promoter Encourage export

-oriented SMEs to

develop

handmade

natural products.

Conduct awareness

and training

programmes.

03 Percentage of

value addition

is relatively

high.

Promoter

- Encourage

export

oriented SMEs

to develop

high value

added hand

woven

products to

- Promote linkage

between exporters.

- Organise

appropriate market

promotion

activities such as

participation in

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160

No. Triggers EDB Role Functions Actions

strengthen the

export sector.

- Implement

assistance

schemes to

encourage

private sector

to export.

international trade

fairs/exhibitions,

inward buying

missions.

04 The industry

can be started

with

comparatively

low capital

investments.

Knowledge

provider

Encourage the

rural community.

Conduct awareness

and skills development

programmes.

Product Sector: Handloom textile products

No. Barriers EDB Role Functions Actions

01 Shortage of

skilled

weavers

Facilitator - Encourage

new weavers

in to the

industry.

- Provide

training

facilities to

meet shortage

of skilled

weavers.

Train weavers through

the relevant

government body.

02 Low

productivity

Facilitator

Promoter

- Upgrade

handloom

machinery.

- Obtain

expertise on

- Assist the

upgradation of

machinery.

- Conduct

productivity

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161

No. Barriers EDB Role Functions Actions

product

development.

improvement

through master

weavers.

03 Poor product

development

and

presentation

Facilitator Encourage them

to work towards

better quality

dyeing &

weaving methods

to produce

effective designs.

- Conduct in-house

training

programmes.

- Obtain foreign

expertise on design

and product

development.

- Set up modern

dying centres in the

regions in

collaboration with

Provincial

Councils.

04 Marketing

Small-scale

producers’

inability to

market their

own products

Promoter Assist in export

marketing.

Organize buyer-seller

meets and

international trade

fairs.

05 Non

availability of

modern

handloom

factories in the

provinces

Facilitator

Promoter

Make maximum

use of weavers

available for the

benefit of the

industry.

Attract more

foreign and local

tourists.

- Facilitate setting up

centres in Central,

East, South and

North including

processes such as

dyeing, winding,

warping, weaving

using modern

machinery, etc.

- Provide training to

identified weavers

to develop process

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No. Barriers EDB Role Functions Actions

by using modern

machines to

improve quality

production.

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163

Annex VI

Financial Performance of the EDB

Programme / Activity Budget

2010

Export Development Programmes

Export Market Promotion - Europe Region 44.80

- The Americas Region 19.00

- Middle East, CIS & Africa Region 24.70

- Asia & Oceania Region 20.50

109.00

Supply Chain Development - Agriculture & Fisheries 27.30

- Industrial Products Sector 55.00

- Export of Services 22.50

- Export Packaging 2.88

- Policy & Planning 1.82

109.50

Regional Export Development - Western Zone 1.65

- Southern Zone 4.65

- Central Zone 3.85

- North Western Zone 4.15

- Uva Zone 0.90

- Eastern Zones 1.15

27.30

Other Support Services - Trade Facilitation 3.05

- Trade Information & TradenetSL 14.00

- Public Relations & Corporate Affairs 9.00

26.05

Implementation of Budget Proposals - Agro Export Zones 46.30

- Model Agriculture Project (IAMP) 30.50

- "Dahas Diriya" Programme 23.50

- Cess Refund Scheme 1.50

101.80

TOTAL EXPORT DEVELOPMENT BUDGET 390.00

TOTAL ADMINISTRATION BUDGET 263.00

TOTAL EDB BUDGET 653.00

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164

Annex VII

Summary of Export Performance, 2007- 2009

(US $ Mn)

Se.

No. Product Sectors 2007 2008

%

Growth 2009

%

Growth

1]

AGRICULTURAL

PRODUCTS 1495.79 1832.50 22.51 1666.58 -9.05

1.1 Tea 1025.11 1271.44 24.03 1185.43 -6.76

1.1.1 Tea packets 254.49 349.46 37.32 327.45 -6.30

1.1.2 Tea bags 145.81 175.05 20.05 183.79 4.99

1.1.3 Tea in bulk 509.15 615.46 20.88 588.03 -4.46

1.1.4 Others 115.66 131.46 13.67 86.16 -34.46

1.2 Natural rubber 109.15 125.04 14.56 98.62 -21.13

1.3 Coconut 140.20 162.63 15.99 154.31 -5.11

1.3.1 Desiccated coconut 54.34 64.71 19.08 50.05 -22.65

1.3.2 Fibre & fibre products 61.53 67.83 10.24 79.82 17.68

1.3.3 Others 24.33 30.08 23.65 24.43 -18.78

1.4 Spices & other export crops 221.33 273.39 23.52 228.22 -16.52

1.4.1 Spices 124.42 151.49 21.75 115.11 -24.02

1.4.2 Essential oils 8.88 7.81 -12.02 4.82 -38.25

1.4.3 Fresh fruits 11.23 13.99 24.62 12.27 -12.30

1.4.4 Vegetables 11.26 25.49 126.47 31.49 23.53

1.4.5 Cashew nuts 1.04 1.43 37.20 1.17 -18.53

1.4.6 Cut flowers & foliage 12.04 14.19 17.90 11.45 -19.31

1.4.7 Others 52.47 58.99 12.44 51.91 -12.00

2] FISHERIES PRODUCTS 170.78 173.67 1.69 179.11 3.13

2.1 Aquarium fish 8.20 8.98 9.53 8.52 -5.13

2.2 Prawns 22.38 10.01 -55.26 12.28 22.69

2.3 Others 140.20 154.67 10.32 158.30 2.35

3]

INDUSTRIAL

PRODUCTS 5868.10 6032.51 2.80 5152.69 -14.58

3.1

Diamonds, Gems &

Jewellery 474.91 538.92 13.48 399.29 -25.91

3.1.1 Diamonds 348.50 420.58 20.68 316.82 -24.67

3.1.2 Gems 106.80 101.01 -5.42 68.92 -31.77

3.1.3 Jewellery 19.61 17.32 -11.67 13.55 -21.78

3.2 Textiles & Garments 3325.60 3457.69 3.97 3262.54 -5.64

3.3 Manufactures 1898.74 1781.16 -6.19 1361.29 -23.57

3.3.1 Food, beverages & tobacco 305.59 224.21 -26.63 187.67 -16.30

3.3.2 Leather & leather products 16.78 16.65 -0.79 13.55 -18.65

3.3.3 Wooden products 51.24 46.58 -9.09 28.53 -38.75

3.3.4 Paper products 68.68 88.07 28.23 80.45 -8.66

3.3.5 Rubber finished products 483.16 541.89 12.16 384.76 -29.00

3.3.6

Chemicals & Plastic

products 123.90 127.88 3.21 113.47 -11.27

3.3.7 Electrical, Mechanical &

Electronic products 371.13 322.30 -13.16 187.17 -41.93

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165

Se.

No. Product Sectors 2007 2008

%

Growth 2009

%

Growth

3.3.9

Ceramic & porcelain

products 46.85 49.02 4.64 36.46 -25.63

3.3.10 Footwear 24.03 21.56 -10.28 17.15 -20.47

3.3.11

Toys, Games & sports

requisites 39.12 42.10 7.61 38.02 -9.69

3.3.12 Others 368.25 300.90 -18.29 274.08 -8.91

3.4 Petroleum products 168.85 254.75 50.87 129.58 -49.14

4] OTHERS 105.31 98.03 -6.91 86.14 -12.13

TOTAL EXPORTS 7639.97 8136.71 6.50 7084.52 -12.93

Source : Sri Lanka Customs; Central Bank of Sri Lanka

Disaggregated Export Performance 2007 – 2009

(US$ Mn.)

Se. no Product Sector / Year 2007 2008

%

Growth 2009

%

Growth

1] Tea

1.1 Tea Packets 254.49 349.46 37.32 327.45 -6.30

1.2 Tea Bags 145.81 175.05 20.05 183.79 4.99

1.3 Tea In Bulk 509.15 615.46 20.88 588.03 -4.46

1.4 Instant Tea 8.92 11.40 27.74 9.78 -14.17

1.5 Green Tea 1.29 1.85 43.32 2.56 38.71

1.6 Others 105.45 118.22 12.11 73.81 -37.56

Total 1025.11 1271.44 24.03 1185.43 -6.76

2] Rubber

2.1 Crepe Rubber 48.59 50.31 3.53 29.82 -40.73

2.2 Sheet Rubber 36.32 42.35 16.62 42.34 -0.02

2.3 Block Rubber 11.84 13.19 11.34 10.88 -17.46

Others 12.40 19.20 54.81 15.58 -18.85

Total 109.15 125.04 14.56 98.62 -21.13

3] Coconut

3.1 Kernel Products

3.1.1 Coconut Oil 1.76 3.93 122.79 4.42 12.50

3.1.2 Desiccated Coconut 54.34 64.71 19.08 50.05 -22.65

3.1.3 Copra 10.90 13.71 25.74 3.72 -72.84

3.1.4 Coconut Fresh Nuts 11.66 12.44 6.70 16.29 30.90

Sub Total 78.67 94.80 20.49 74.49 -21.42

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166

Se. no Product Sector / Year 2007 2008

%

Growth 2009

%

Growth

3.2 Coconut by Products

3.2.1 Bristle Fibre Not Twisted 0.42 1.13 167.22 3.97 252.97

3.2.2 Bristle Fibre Twisted 1.20 0.53 -56.20 0.95 81.27

3.2.3 Mattress Fibre 12.36 17.46 41.30 31.09 78.03

3.2.4 Mixed Coir Fibre 7.18 3.83 -46.69 1.66 -56.67

3.2.5 Other Mixed Coir Fibre 27.65 32.62 17.98 24.20 -25.79

3.2.6 Coir Yarn 1.04 1.25 19.69 1.61 29.09

3.2.7 Coconut Shell Charcoal 0.28 0.98 247.16 1.13 15.22

3.2.8 Coco Peat 11.40 10.05 -11.88 15.21 51.42

Sub Total 61.53 67.83 10.24 79.82 17.68

Total 140.20 162.63 15.99 154.31 -5.11

4] Other Export Crops

4.1 Arecanut 0.84 3.19 280.24 1.38 -56.93

4.2 Coffee 0.14 0.24 68.79 0.13 -43.82

4.3 Pepper 31.95 26.39 -17.38 20.58 -22.03

4.4 Cinnamon 75.50 82.72 9.56 74.18 -10.33

4.5 Cloves 9.24 33.13 258.53 12.02 -63.72

4.6 Nutmeg & Mace 7.61 8.98 18.08 8.09 -9.92

4.7 Cardamoms 0.13 0.27 106.98 0.24 -9.03

4.8 Sesame Seeds 0.62 0.36 -41.61 1.62 348.59

4.9 Other Oil Seeds 0.02 0.01 -40.00 0.01 -16.67

4.10 Betel Leaves 4.08 6.65 63.17 5.99 -10.03

4.12 Unmanufactured Tobacco 40.18 39.59 -1.46 33.55 -15.26

4.13 Papain 0.06 0.00 -100.00 0.00

4.14 Essential Oils 8.88 7.81 -12.02 4.82 -38.25

4.15 Cashew Nuts 1.04 1.43 37.20 1.17 -18.53

4.16 Vegetables 11.26 25.49 126.47 31.49 23.53

4.17 Fruits, Fresh Or Dried 11.23 13.99 24.62 12.27 -12.30

4.18 Cut Flowers & Foliage 12.04 14.19 17.90 11.45 -19.31

4.19 Others 6.53 8.94 36.86 9.23 3.28

Total 221.33 273.39 23.52 228.22 -16.52

5] Fisheries Products

5.1 Aquarium Fish 8.20 8.98 9.53 8.52 -5.13

5.2 Prawns 22.38 10.00 -55.31 12.28 22.81

5.3 Lobsters 3.20 3.72 16.43 4.65 24.85

5.4 Crabs 4.66 5.99 28.52 9.09 51.72

5.5 Fish Fresh Or Chilled 21.79 22.15 1.64 11.18 -49.51

5.6 Frozen Fish 100.82 113.57 12.65 127.02 11.84

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5.7 Preserved Fish 3.48 3.63 4.37 3.07 -15.53

5.8 Others 6.15 5.60 -8.90 3.29 -41.20

Total 170.68 173.66 1.75 179.11 3.14

6] Diamonds, Gems &

Jewellery

6.1 Diamonds 348.50 420.58 20.68 316.82 -24.67

6.2 Gems 106.80 101.01 -5.42 68.92 -31.77

6.3 Jewellery 19.61 17.32 -11.67 13.55 -21.78

Total 474.91 538.92 13.48 399.29 -25.91

7] Textiles & Garments

7.1 Woven Fabrics 73.44 77.55 5.60 70.88 -8.60

7.2 Garments 3142.59 3280.45 4.39 3119.89 -4.89

7.3

Other Made up Textile

Articles 59.82 52.27 -12.62 36.71 -29.77

7.4

Others

49.75 47.43 -4.67 35.06 -26.09

Total

3325.60 3457.69 3.97 3262.54 -5.64

8] Manufactures

8.1 Food, Beverages & Tobacco

8.1.1 Processed Fruits & Fruit

Juices 21.77 29.64 36.18 26.94 -9.13

8.1.2 Confectioneries & bakery

Products 9.16 14.25 55.64 24.73 73.57

8.1.3 Processed Food 205.74 84.57 -58.89 39.92 -52.80

8.1.4 Beverages 3.86 4.39 13.90 2.80 -36.20

8.1.5 Manufactured Tobacco 23.42 27.54 17.59 24.27 -11.88

8.1.6 Others 41.65 63.80 53.21 69.00 8.15

Sub Total 305.59 224.21 -26.63 187.67 -16.30

8.2 Leather & Leather Products

8.2.1 Raw Hides & Skins 1.07 0.58 -45.51 0.34 -41.97

8.2.2 Travel Goods, Bags & Other 7.28 4.95 -31.96 3.28 -33.68

8.2.3 Clothing Accessories of

Leather

8.44 11.12 31.76 9.92 -10.74

Sub Total 16.78 16.65 -0.79 13.55 -18.65

8.3 Wood & Wooden Products

8.3.1 Furniture 4.97 4.93 -0.74 4.02 -18.50

8.3.2 Wooden Craft Items 8.18 7.91 -3.31 7.48 -5.34

8.3.3 Parquet Flooring 0.26 0.004 -98.47 0.00 -100.00

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8.3.4 Broomsticks 5.56 5.85 5.11 4.36 -25.39

8.3.5 Others 32.28 27.90 -13.56 12.67 -54.58

Sub Total 51.24 46.58 -9.09 28.53 -38.75

8.4 Paper & Paper Products

8.4.1 Paper Pulp 15.33 19.08 24.42 13.12 -31.21

8.4.2 Stationery 11.89 12.60 5.94 11.72 -7.00

8.4.3

Books & Other Printed

Material 2.41 2.75 13.85 1.50 -45.48

8.4.4 Others 39.05 53.65 37.40 54.11 0.85

Sub Total 68.68 88.07 28.23 80.45 -8.66

8.5 Rubber Finished Products

8.5.1 Rubber Thread 0.07 1.44 2023.53 0.21 -85.71

8.5.2 Unhardened Rubber 7.96 7.22 -9.28 11.65 61.35

8.5.3 Rubber Hose 0.02 0.03 33.33 0.01 -80.94

8.5.4 Rubber Belts 0.01 0.08 581.82 0.0002 -99.73

8.5.5 Tyres & Tubes 310.33 338.09 8.94 214.27 -36.62

8.5.6 Apparel Clothing Accessories 110.55 117.27 6.08 113.87 -2.89

8.5.7 Articles Of Unhardened

Rubber 48.40 71.92 48.58 41.47 -42.33

8.5.8 Others 5.82 5.86 0.67 3.28 -43.99

Sub Total 483.16 541.89 12.16 384.76 -29.00

8.6 Chemicals & Plastic Products

8.6.1 Organic & Inorganic Products 13.46 12.66 -5.95 7.13 -43.71

8.6.2 Pharmaceutical Products 2.20 2.22 1.05 2.00 -9.87

8.6.3 Fertilizer 0.27 0.54 101.87 0.35 -34.73

8.6.4 Tanning & Dyeing Extracts,

Paints, Varnishes, etc. 3.19 3.23 1.22 3.00 -7.08

8.6.5 Perfumes, Cosmetic & Toilet

Preparations 5.30 6.05 14.10 6.32 4.55

8.6.6 Soap, Washing Preparations

etc. 3.99 3.66 -8.39 3.95 7.88

8.6.7 Albuminoidal Substances,

Glues Etc. 4.78 4.61 -3.56 5.10 10.69

8.6.8 Photographic &

Cinematographic Items 0.05 0.03 -50.00 0.03 -2.59

8.6.9 Resins, Cellulose, Esters &

Plastic Products 56.81 56.84 0.04 39.51 -30.49

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8.6.10 Activated Carbon 27.60 34.32 24.35 42.79 24.68

8.6.11 Others 6.24 3.73 -40.27 3.29 -11.76

Sub Total 123.90 127.88 3.21 113.47 -11.27

8.7 Non Metallic Mineral

Products

8.7.1 Salt & Salt Based Products 0.76 0.05 -93.70 0.16 238.33

8.7.2 Graphite 3.82 3.50 -8.47 2.26 -35.38

8.7.3 Natural Sands 9.48 9.76 2.94 7.19 -26.39

8.7.4 Articles Of Stones 17.33 8.06 -53.47 4.85 -39.78

8.7.5 Ceramics & Porcelain

Products 46.85 49.02 4.64 36.46 -25.63

8.7.6 Glass & Glassware 4.16 6.58 58.00 13.54 105.83

8.7.7 Mineral Sands 10.48 8.12 -22.49 6.85 -15.67

Sub Total 92.88 85.09 -8.39 71.31 -16.20

8.8 Base Metal Products

8.8.1 Iron & Steel Products 15.77 16.88 7.02 8.52 -49.53

8.8.2 Copper & Copper Products 46.48 21.35 -54.07 12.47 -41.60

8.8.3 Aluminium Products 3.60 2.81 -21.95 3.33 18.64

8.8.4 Lead Products 8.04 8.80 9.42 5.68 -35.45

8.8.5 Tools & Equipment 4.27 4.93 15.37 3.10 -37.13

8.8.6 Others 2.64 2.29 -13.12 3.01 31.49

Sub Total 80.80 57.06 -29.39 36.11 -36.71

8.9 General, Electrical &

Electronic Machinery

8.9.1 Boilers, General Machinery &

Parts 92.87 76.45 -17.68 46.69 -38.93

8.9.2 Electrical & Electronic

Products 278.26 245.84 -11.65 140.48 -42.86

8.9.3 Transport Equipment & Parts 64.40 77.17 19.84 62.11 -19.52

8.9.4 Aircraft Parts 49.01 8.85 -81.94 6.94 -21.59

8.9.5 Ships & Boats 37.34 21.54 -42.31 57.81 168.43

8.9.6 Furniture & Articles Of

Moulding Materials 24.09 28.04 16.43 19.00 -32.26

8.9.7 Toys, Games & Sports

Requisites & Parts 39.12 42.10 7.61 38.02 -9.69

Sub Total 585.07 500.00 -14.54 371.04 -25.79

8.10 Footwear 24.03 21.56 -10.28 17.15 -20.47

8.11 Other Manufactures 66.59 72.17 8.37 57.26 -20.66

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Total Manufactures 1898.74 1781.16 -6.19 1361.29 -23.57

9] Petroleum Products 168.85 254.75 50.87 129.58 -49.14

10] Others 105.41 98.04 -6.99 86.14 -12.14

TOTAL EXPORTS 7639.97 8136.71 6.50 7084.52 -12.93

Source : Sri Lanka Customs, Central Bank