By: Staff Writer

January 02, Colombo (LNW): Sri Lanka government is to adopt new strategies and reforms to nourish the participation of Small and Medium scale Enterprises (SMEs) in global value chains, not only to prosper but also to make a meaningful contribution to the country’s recovery and reduce the human toll of the crisis.

Global and regional production chains have been a key driver of economic progress in Asia and the Pacific over the past 2 decades.

In Sri Lanka, SMEs comprise more than 75% of enterprises and account for more than 20% of exports, 45% of employment, and 52% of GDP.

Since their businesses are more vulnerable to demand downturn, disrupted fund flow, shrinking financing, high inflation, shortage of raw materials and fuel, as well as talent migration, SMEs will likely suffer disproportionably in the crisis.

Sri Lanka’s Export Development Board (EDB) completed a comprehensive six-week export coaching program aimed at assisting small and medium-sized enterprises (SMEs) with an export potential, registered under EDB New Exporter Development Program (NEDP).

It is aimed to develop their Export Marketing Plans as the first step in their journey towards becoming export-ready. New Exporter Development Program implemented by the Sri Lanka Export Development Board is aimed at developing export potential of SMEs’ to enter export markets.

The program consisted of three phases. A group of 25 SMEs demonstrating export potential were selected by an internal evaluation panel as the first step of the program.

The second phase involved individual and group training sessions on export marketing planning. A dedicated team of Export Development Board officers, trained by the International Trade Center (ITC) as Export Marketing Plan (EMP) coaches, conducted these informative sessions.

SMEs received guidance from these officers in developing their export marketing plans for a selected product in a target market.

Additionally, there were some knowledge sharing sessions for the SMEs on important aspects on export planning such as packaging development for the export market, marketing and branding, logistics and export documentations with the support of experts from the industry.

The final stage featured an Export Market Pitching program on 5 December 2023 where 17 SMEs presented their export marketing plans, outlining their financial requirement for entry into the international market, such as obtaining market intelligence, quality enhancement, capacity building, packaging development, marketing and branding.

Eventually, Lak Nature International Ltd., Serangreen Holdings Ltd., Saviru Spices and Naturals Ltd., Star Mushroom, Aqua Zone Ornamental Fish Farm Ltd., Cloud Content Marketing Ltd., Jay Ceylon Cinnamon Ltd., Nathuco Brown, Randee Super Food Ltd., and St. Theresa DC Mills Ltd. were selected by the panel as the 10 best export marketing plans.

The winning companies will be assisted by the Sri Lanka Export Development Board to implement their next stage of Export Marketing Plans.

By: Staff Writer

January 02, Colombo (LNW): In an unprecedented turn of events, 2023 saw Saudi Arabia becoming the prime destination for Sri Lankan expatriate workers. Over 63,000 Sri Lankans found employment opportunities in the Kingdom, solidifying Saudi Arabia’s position as the top destination.

This influx not only provided a lifeline to the individuals but also bolstered Sri Lanka’s economy, contributing immensely to the annual remittances of 7-8 billion dollars. These remittances are a vital source of foreign exchange for Sri Lanka, particularly amid its severe financial crisis.

Countries of the Gulf Cooperation Council continue to be a popular choice for Sri Lankan workers. Saudi Arabia, however, stands out, attracting not only general labor but also skilled professionals for its Vision 2030 mega projects.

Every year, more than 200,000 migrant workers leave Sri Lanka to work abroad.They are a main source of foreign exchange for the country, which since last year was gripped by its worst ever financial crisis.

P.M. Amza, Sri Lanka’s ambassador to Saudi Arabia, estimated that in 2023 remittances amounted to over US $7 billion, of which a significant portion was contributed by expatriate workers in the Kingdom.

“During the year 2023, the Kingdom of Saudi Arabia has become the number one country, generating 63,000 employment (opportunities) for Sri Lankans,” he told Arab News on Saturday.

“Of the annual remittances amounting to $7-8 billion a year, a sizable portion has been generated from the Kingdom, which is in the region of 15 to 20 percent of the total remittances.”

Gulf Cooperation Council countries are a preferred choice for Sri Lankan workers, with Saudi Arabia being their key destination, lately also attracting skilled professionals to its mega projects under Vision 2030.

These projects, in addition to a new employment scheme under the Skill Verification Program, were the main factors making the Kingdom increasingly attractive to Sri Lankans, according to Amza.

The SVP agreement signed in March aims to improve the professional competence of employees in the Saudi labor market and ease the recruitment process of skilled workers from the island nation.

Under the deal — which covers 23 professions — Saudi employers recognize accreditations issued by Sri Lanka’s Tertiary and Vocational Education Commission.

“The year 2023 has seen the qualitative and quantitative increase of employment opportunities for Sri Lankans in the Kingdom,” Amza said, adding that while half of Sri Lankan expats have been employed in the domestic sector, this year showed growth in the number of those working in the construction and hospitality sector.

“The signing of the agreement on the Skill Verification Program between the two countries has also contributed to this increase of skill and professional categories of employment, which stood at nearly 12,000 during 2023.

By: Staff Writer

January 02, Colombo (LNW): The construction industry in Sri Lanka has been expected to contract by 14.9% in real terms last year, down from the previous estimate of a 7.9% decline, owing to the ongoing economic and political crisis, a steep currency depreciation and rising inflation.

The Sri Lankan construction industry is set to register an average annual growth of 5.6% from 2024 to 2027, picking up from the low base in 2022 and 2023.

The construction sector saw its contraction continue in November too as per the Purchasing Managers’ Index (PMI) compiled by the Central Bank.

It said the Construction PMI recorded a Total Activity Index value of 44.3 in November 2023, indicating a contraction in construction activities compared to last month.

“The respondents mentioned that the low level of new projects and the decline in work related to ongoing projects, as they are in the final stages, hampered the activity levels,” CBSL said.

It said new orders declined at a higher pace in November compared to the previous month. However, many respondents expect an acceleration in awarding of projects, especially Government-funded projects in the first half of the next year.

Employment continued to contract as the companies tend to operate with minimum staff under the current industry situation. Further, the quantity of purchases declined in line with the decrease in construction work. Suppliers’ delivery time remained lengthened during the month.

CBSL said the industry outlook for the next three months is positive, mainly in anticipation of the increased demand from the next year, together with favourable weather conditions.

However, the firms are concerned about the upward tendency in material prices due to the announced tax revisions.

Sri Lanka’s construction industry is down but falling material prices are helping start small-scale work and there was hope of government backed project re-starting later in the year according to a Purchasing Manager’s Index.

“The lack of new projects continued to hinder the industry, which is reflected by the continuous decrease in New Orders,” the central bank which compiles the index said.

“The respondents mentioned that sizable projects are hardly available, except some foreign-funded projects, and the bidding for available tenders is also highly competitive.

However, they expect the suspended large-scale projects to gradually recommence later in the year.

“Further, Employment remained contracted in June, mainly due to the layoffs after project completions.

Moreover, Quantity of Purchases declined in line with the decrease in pipeline projects. Meanwhile, Suppliers’ Delivery Time remained shortened during the month due to low order quantities.”

Sri Lanka government projects are suspended pending re-structure of defaulted debt.

January 02, Colombo (LNW): The Sri Lankan Rupee (LKR) has largely appreciated against the US Dollar today (02) in comparison to yesterday, as per the official exchange rates released by the Central Bank of Sri Lanka (CBSL).

Accordingly, the buying price of the US Dollar has dropped to Rs. 316.92 from Rs. 319.23, and the selling price to Rs. 326.85 from Rs. 328.77.

The Sri Lankan Rupee has also appreciated against several other foreign currencies.