Exporters’ Association - Sri · PDF fileThus the Exporters Association of Sri Lanka (EASL), was inaugurated on 22nd of August, 1997 with the

Exporters’ Association

of

Sri Lanka

Annual Report

&

Accounts

2011 - 2012

EASL Annual Report & Accounts 2011/2012

2

OFFICE BEARERS 2011/ 2012

CHAIRPERSON Mrs. Dawn S. Austin

Nidro Supply (Pvt) Ltd

VICE CHAIRPERSONS Mr. Rohan Daluwatte Tea Tang (Pvt) Ltd

Mr. Sarada De Silva

Intercom (Pvt) Ltd

SECRETARIAT THE CEYLON CHAMBER OF

COMMERCE

50, Nawam Mawatha, Colombo 2.

TEL : 5588871

FAX : 2449352

EMAIL : [email protected]

WEBSITE : www.exporterssrilanka.net

mailto:[email protected]

http://www.exporterssrilanka.net/


3

MANAGING COMMITTEE

MEMBER COMPANIES

Company Representative

Ansell Lanka (Pvt) Ltd Mr. Tissa Mendis & Mr. Gayan Perera

Adamexpo Mr. S. A. Gulamhussein

Aitken Spence Exports Ltd Mr. Danesha Perera & Mr. S. Sridharan

Akbar Brothers Ltd Mr. T. Sambasivam

AF Jones (Exporters) Ceylon Ltd Mr. Anil De Silva, Mr. Quintin Dissanayake, Mr.

Kapila Wijegunawardhana

Gordon Frazer & Company Limited Mr. Sunil Karunanayake

CAL Exports Lanka (Pvt) Ltd Mr. M Nazvi Hassan & Mr. Jayantha de Mel

Finlays Colombo PLC Mr. Samantha Weerakoon

Hayleys PLC Mr. Chrisso De Mel & Mr. Nalaka Rathnayake

Intercom (Pvt) Ltd Mr. B. Sarada M. De Silva & Ms. B. Yeshani S. De

Silva

Ishana Spice Exports Mr. Jismi Ahamed & Mr. S.M. Ishak

Imperial Tea Exports (Pvt) Ltd Mr. Wasantha Aluthwela

Mackwoods Ltd Mrs. Nirmali Samaratunga

Microcells Ltd Mr. A.L. Wickremaratne & Mr. Kanishka

Samaraweera

Mabroc Teas (Pvt) Ltd Mr. Niran Ranatunga & Mr. Dilan Wijesekara

Nidro Supply (Pvt) Ltd Mrs. Dawn Austin

Tea Tang (Pvt) Ltd Mr. Rohan Daluwatte & Mr. Yohan Benedict

Union Commodities (Pvt) Ltd Mrs. Anjalee De S. Weerasooria & Mr. Shaham

Elitamby

PAST CHAIRPERSONS / CHAIRMEN

Mr. G. S. Chatoor Saboor Chatoor (Pvt) Ltd

Mr. A. S. M. ‘Muzzamil Ceylon Foods (Pvt) Ltd

Mr. Mohan Mendis Mabroc Teas (Pvt) Ltd

Mr. Deepal Chandrasekera Imperial Teas (Pvt) Ltd

Mrs. Nirmali Samaratunga Mackwoods Ltd.


4

MANAGING COMMITTEE

MEMBER PRODUCT ASSOCIATIONS

ASSOCIATION REPRESENTED BY

1. Sri Lanka Fruit & Vegetable Producers,

Processors & Exporters Association Mr. Shanthi Wijesinghe

2. Sri Lanka Apparel Exporters Association Mr. Aziz Rumy & Mr. Prasad

Siriwardena

3. Colombo Rubber Traders’ Association Mr. Ranjith Siriwardena

4. Spices & Allied Products Producers Association Mr. Vernon Abeyratne

5. Colombo Tea Traders’ Association Mr. Neil Iddawela

6. Sri Lanka Association of Manufacturers &

Exporters of Rubber Products Mr. Saifuddin Jafferjee & Mr. Lalith

Jayawardena

7. Sri Lanka Gem & Jewellery Association Mr. Ali Suhail & Mr. Nawrooz Azmi

8. Seafood Exporters Association of Sri Lanka Mr. Roshan Fernando & Mr. Prabash

Subasinghe

9. Floriculture Produce Exporters Association Mr. Sanath Manuwendra & Mr. I. \

Anandatissa

10. Sri Lanka Diamond Manufacturers Association Mr. Riyaz Sangani


5

THE EXPORTERS’ ASSOCIATION OF SRI LANKA

MANAGING COMMITTEE 2011-2012

Standing from Left to right (1

st Row)

Mr. Anil Wickremaratne (Microcells Ltd),Mr. Ranjith Siriwardena (Colombo Rubber Traders

Association), Mr. Samantha Weerakoon (Finlays Colombo PLC), Mr. M. Nazvi Hassan (CAL

Exports Lanka (Pvt) Ltd ), Mr. Eardley David (Sri Lanka Apparel Exporters Association), Mr.

Chrisso De Mel (Hayleys PLC), Mr. Roshan Fernando (Seafood Exporters Association of Sri

Lanka), Mr. Deepal Chandrasekera (Past Chairman EASL), Mr. T Sambasivam (Akbar Brothers

Ltd), Mr. Sunil Karunanayake (Gordon Frazer & Company Limited), Mr. Tissa Mendis ((Ansell

Lanka (Pvt) Ltd), Mr. Vernon Abeyeyratne (Spices & Allied Products Producers Association),

Standing from Left to right (2nd

Row)

Mr. Aziz Rumy (Sri Lanka Apparel Exporters Association), Mr. Danesha Perera (Aitken Spence

Exports Ltd), Mr. Mohan Mendis (Past Chairman EASL), Mr. S. Sridharan (Aitken Spence Exports

Ltd), Mr. Ali Suhail (Sri Lanka Gem & Jewellery Association),

Seated from Left to Right

Mr. A S M Muzammil (Past Chairman EASL), Ms. Manjula Maldeniya (Management Executive,

CCC/ EASL Secretariat), Mr. Saradha De Silva (2nd

Vice Chairman EASL), Mrs. Nirmali

Samaratunga (Immediate Past Chairperson EASL), Mrs. Dawn Austin (Chairperson EASL), Mr.

Rohan Daluwatte (1st Vice Chairperson EASL), Ms. Irangika Siriwardena (Manager Associations /

EASL Secretariat), Mrs. Anjalie Weerasooria, Mr. Gulam Chatoor (Past Chairman EASL), Mr.

Shanthi Wijesinghe (Sri Lanka Fruits & Vegetable Producers, Processors & Exporters Association)

Highlights of 2011/2012 AGM


6

Managing Committee welcoming the Chief Guest Hon. Mr. Basil Rajapakse & Guest of Honour

Mr. Ajith Nivard Cabraal

Head Table: from left to right: Ms. Irangika Siriwardena (Manager CCC/EASL Secretariat), Mr. Rohan

Daluwatte (1st Vice Chairman EASL), Hon Basil Rajapakse (Minister of Economic Development), Mrs

Dawn S. Austin(Chairperson EASL), Mr. Ajith Nivard Cabraal (Governour CBSL), Mrs. Nirmali

Samaratunga (Immediate Past Chairperson) & Mr. Sarada De Silva (2nd

Vice Chairman)


7

LIST OF MEMBER COMPANIES AS AT 31ST

MARCH 2012

A

A Baur & Co. Ltd

A S Chatoor & Company (Pvt) Ltd

Adamexpo

Adamjee Lukmanjee & Sons Ltd

Aitken Spence Exports Ltd

Akbar Brothers Ltd

Alliance Finance Co Ltd

Ansell Lanka (Pvt) Ltd

Aristons (Pvt) Ltd

Ashok Traders

B Bank Of Ceylon, Central Office

Bata Shoe Company Of Ceylon Ltd

Beira Brush Ltd

Bogala Graphite Lanka Ltd

C Ceylon & Foreign Trades Ltd

Ceylon Biscuits Ltd

Ceylon Tea Marketing Ltd

Ceylon Trading Co. Ltd

Chas P. Hayley & Co. (Pvt) Ltd

Chatoor & Co Ltd A S

Chemanex PLC

Chemical Industries (Colombo) PLC

Consolidated Business Systems (Pvt) Ltd

D Dankotuwa Porcelain Ltd

Delmege Forsyth & Co. Ltd

Dipped Products PLC

E Eastern Merchants PLC

Eswaran Brothers Exports (Pvt) Ltd

E.B. Creasy & Co. Ltd

Euro-Scan Exports (Pvt) Ltd

Edinborough Products (Pvt) Ltd

F

Finlays Colombo PLC

Freelanka Trading Co. Ltd

G Gem Syndicate

George Steuart & Co. Ltd

Gordon Frazer & Co Ltd

H Hameed Brothers (Colombo) Ltd

Hands International (Pvt) Ltd

Harrisons (Colombo) Ltd

Hatton National Bank PLC

Hayleys PLC

Hela Clothing (Pvt) Ltd

Hemachandras (Kandy) Ltd

Hirdaramani International Exports (Pvt) Ltd

I Imperial Teas (Pvt) Ltd

Industrial Clothing Ltd

Intercom (Pvt) Ltd

Ishana Spice Exports


8

J Jafferjee Brothers

Jiffy Products SL (Pvt) Ltd

John Keels Logistics Lanka (Pvt) Ltd

Jones (Exporters) Ceylon Ltd A F

K K. I. K . Lanka (Pvt) Ltd

L

Lanka Brush Exports (Pvt) Ltd

Lanka Diamonds Polishing Ltd.

Lanka Walltiles PLC

Lankem Ceylon PLC

Link Natural Products (Private) Ltd

Lion Brewery Ceylon PLC

M Mabroc Teas (Pvt) Ltd

Mackwoods Ltd

Mascons (Pvt) Ltd

Meezan & Co (Pvt) Ltd

Miami Exports (Pvt) Ltd

Microcells (Pvt) Ltd

Mona Plastics (Pvt) Ltd

Morison Son & Jones (Ceylon) Ltd J L

N Nidro Supply (Pvt) Ltd

P Para Xpo Products (Pvt) Ltd

Pattakannus (Pvt) Ltd

R Ranfer Teas (Pvt) Ltd

Ranliya Garment Industries Ltd

Renuka Holdings PLC

Richard Pieris Natural Foams Ltd

S Saboor Chatoor (Pvt). Ltd

Shums & Co. Ltd

Smithkline Beecham (Pvt) Ltd

Sri Lanka Export Credit Insurance Corporation

Standard Trading Co. (Pvt) Ltd

Stassen Exports Ltd

T Tea Tang (Pvt) Ltd

The Swadeshi Industrial Works PLC

Trelleborg Lanka (Pvt) Ltd

U

Union Commodities (Pvt) Ltd

Unitrades Ltd

V Van Rees Ceylon Ltd


9

THE EXPORTERS’ ASSOCIATION OF SRI LANKA

The formation of the Exporters Association of Sri Lanka brought a wide spectrum of exporters, under

one umbrella, and a strong platform was built to discuss and make representations on issues affecting

the Export Trade, with one voice. The Association now represents around 1000 Exporters through

direct and indirect membership, and contributes to over 80% of the total exports of the country.

History

In 1973, Chamber Members who engaged in individual export trade initiated the formation of the

“Export Section of the Ceylon Chamber of Commerce”.

In 1987, the Export Development Board initiated the formation of the Federation of Exporters

Associations of Sri Lanka (FEDEX), which was an umbrella organization of major export product

specific associations.

In 1997 it was observed that there was a duplication of activities of these individual Organizations

and that there would be more usefulness served if the two were to stand together to promote and

protect the common interests of Members, whilst making a significant contribution to the growth of

the Export Industry of Sri Lankan exporter.

Thus the Exporters Association of Sri Lanka (EASL), was inaugurated on 22nd

of August, 1997 with the

merger of the Export Section of the Ceylon Chamber of Commerce. the Federation of Exporters

Associations of Sri Lanka.

Membership

The EASL now proudly represents practically the entire Export Sector of Sri Lanka through the

Membership of Companies and Exporter Associations. Eligibility to join the EASL being made up of

the following:-

1. Any Member of the Ceylon Chamber of Commerce engaged in or interested in export of

Products and Services.

2. Any properly constituted and functioning Association representing Exporters of Products and

Services

3. Any individual Members of such an Association referred to in (2) above.

The EASL’s single platform representation structure is acknowledged by all authorities in both the

public and private sectors to be a responsible and credible voice of Exporters in Sri Lanka.


10

EXPORT SECTOR PERFORMANCE IN 2011/2012

AND FUTURE EXPORT CHALLENGES

WORLD TRADE

The global economic recovery continued to remain fragile with renewed challenges in 2011. The

advanced economies, which showed a slower-than-expected recovery at the beginning of the year were

hit by another wave of shocks due to fiscal and financial uncertainty towards the latter part of the year.

Global financial conditions deteriorated, particularly with intensified strains in the Euro area, reflecting

the downgrade of sovereign ratings in many countries by international rating agencies and further

escalating downside risks to global economic activity. Consequently, the world economy, which was

growing at 5.2 per cent in 2010, is estimated to have expanded only by 3.8 per cent in 2011.

Compared to economic growth in 2010, almost all major economic regions have experienced a lower

growth in 2011. However, as seen in the past several years, a noticeable feature of global economic

activity is its uneven nature, where advanced economies are estimated to have expanded by 1.6 per

cent while emerging and developing economies are estimated to have grown by 6.2 per cent in 2011.

Economies in developing Asia marked a decline in their average growth to 7.9 per cent in 2011

compared to the strong recovery at 9.5 per cent in 2010.

The continued divergence in economic performance among advanced economies and emerging

economies warrant significant ‘rebalancing’ in order to deliver strong and sustainable growth.

The rebalancing needs to take place both ‘internally’ and ‘externally’. Internally, a shift from fiscal

stimulus to private demand needs to take place in many advanced economies. Externally, the current

account deficit economies need to increase demand for their exports while current account surplus

economies (notably emerging market economies) should focus more on increasing domestic demand.

However, the required rebalancing in emerging market economies seems to be slower than expected,

as per the projected current account balances. Particularly, as IMF’s Regional Economic Outlook

(April 2011) highlights, the rebalancing of growth towards private domestic demand in the Asia

Pacific region needs to be accompanied by measures to address structural constraints on domestic

demand, such as investing more on infrastructure development and strengthening social safety nets.

Nonetheless, the emerging market economies will continue to drive global growth over the medium

term, albeit the pace of their economic growth would slow down and adjust to long run equilibrium

levels. In particular, according to the latest World Economic Outlook (WEO) estimates by the IMF, the

growth in emerging and developing economies slowed down, more than the forecast in 2011, possibly

due to the effects of macroeconomic policy tightening. Oil prices remained high in the international

market in 2011, although other commodity prices showed a deceleration towards the latter part of the

year. The rising trend in commodity prices that started in the second half of 2010 extended into 2011.

Accordingly, consumer prices in advanced economies, and emerging market and developing

economies increased to 2.7 per cent and 7.2 per cent, respectively, in 2011, from 1.6 per cent and 6.1

per cent, respectively, in 2010. International oil prices, which remained at elevated levels in 2011

mainly due to supply side constraints, are expected to further increase during 2012 despite slower than

expected global recovery. Price increases in food and energy remain the main concern over the near

term, particularly in the context of geopolitical factors in oil exporting countries. Nonetheless, the


11

IMF’s forecasts show some signs of moderation of consumer price pressure in 2012 due to a weaker

economic outlook where advanced economies and emerging market and developing economies are

expected to record average inflation rates of 1.6 per cent and 6.2 per cent, respectively.

Short term interest rates continued to remain low in many advanced economies in 2011 while some

emerging market economies raised policy rates amidst rising inflationary pressures, mainly due to

rapid growth in credit and asset prices. Advanced economies took further measures to ease monetary

conditions given the slow and fragile economic recovery and low business confidence. However, some

emerging market economies such as China, India and Malaysia continued to curb inflationary

pressures through policy tightening. The currency markets experienced significant volatility during

2011. The appreciating trend observed in 2010 in many major currencies against the US dollar was

reversed during 2011, with a few exceptions. The Pound sterling and euro, which appreciated

substantially during 2010, fell in value in 2011 amidst the sovereign debt crisis and fears of contagion

in the Euro area. Thus, Pound sterling and euro depreciated by 0.73 per cent and 2.29 per cent,

respectively, ending at 1.54 US dollars and 1.29 US dollars, respectively, as at end 2011. Meanwhile,

Japanese yen continued to rise against the US dollar in 2011 (by 5 per cent), albeit at a moderate pace

relative to 2010, possibly due to aggressive measures to restructure the country’s finances and

stimulate the economy, including the quantitative easing and issuance of sovereign bonds. Further,

China’s renminbi also gained value against the US dollar in 2011, by about 5 per cent, in the backdrop

of increasing policy interest rates, which moved up three times during 2011 to curb the pace of rising

commodity prices and prevent overheating of the economy. Also, China’s central bank increased the

statutory reserve requirement in order to tighten credit and excess money in the economy. The

renminbi ended at 0.16 of a US dollar (i.e., 6.31 renminbi per US dollar) at the year end. Meanwhile,

some regional currencies depreciated substantially against the US dollar during 2011. In particular

Indian rupee and Bangladesh taka, depreciated by about 15 per cent and 14 per cent, respectively.

Private capital flows displayed greater volatility owing to uneven global recovery and worsening of the

European debt crisis, causing a liquidity freeze in the European interbank market. Meanwhile, official

flows such as official development assistance (ODA) have been affected by stringent austerity

measures and sovereign debt problems in advanced economies. The persistence of a lower interest rate

regime in many advanced economies may have diverted capital flows to emerging market and

developing economies. Under these circumstances, capital flows in excess of the absorptive capacity of

emerging market and developing economies, or with speculative motive, could lead to exchange rate

misalignment, credit booms and asset price bubbles, thus, posing significant challenges to

macroeconomic stability. Such concerns have led emerging market and developing economies to build

‘self insurance’ stocks of international reserves, by US dollars 1.1 trillion during 2011, totaling over

US dollars 7 trillion as of yearend.

However, a larger amount of these international reserves were invested in low yielding treasuries in

advanced economies (mainly in US Treasury securities) due to their perceived ‘safe haven’ status for

global investors, thus, contributing to increasing global imbalances.

The global economic outlook for 2012 is uncertain. The risks and related concerns to global economic

recovery persist and this unpredictable global economic expansion is expected to continue well into

2012.. In the United States, growth prospects appear to be improving, underpinned by fiscal policy

stimulus, accommodative monetary conditions, and gradual strengthening of investment and private

consumption. Meanwhile, the adverse effects of the earthquake and tsunami in Japan in March 2011


12

caused less supply chain disruptions than previously expected, thus, easing pressure on the global

recovery.

The latest projections by IMF indicate that the Euro area would experience a mild recession in 2012,

amidst growing concerns over financial sector stability and fiscal sustainability. The growth prospects

for emerging market and developing economies during 2012 are expected to moderate due to a likely

deterioration in the external environment and possible threats to domestic demand due to continuation

of macroeconomic policy tightening. Nonetheless, growth in emerging market and developing

economies is expected to remain relatively robust during 2012 as they would be able to counter weaker

foreign demand through appropriate policy measures. Also, high credit and asset price growth remains

a major concern in a number of emerging and developing economies while any disruption to the global

oil supply due to geopolitical factors could dampen activity throughout the world.

SRI LANKA EXPORTS

Exports which rebounded in 2010, strengthened further during 2011 despite a fragile recovery in the

world economy. Earnings from exports exceeded the US dollars 10 billion mark and reached US

dollars 10,559 million, an increase of 22.4 per cent in 2011 over the previous year. The export growth

in 2011 is commendable and highlighted the resilience of exports as it was achieved amidst slow and

uncertain economic recovery in Sri Lanka’s traditional markets, particularly, USA, EU, and the Middle

East. The expansion in domestic economic activities and the favourable investment climate with low

interest rates and improved infrastructure contributed to the growth in exports. The largest contribution

to the growth in export earnings amounting to US dollars 1,896 million came from industrial exports

followed by agricultural exports (US dollars 221 million). Industrial exports increased by 31.1 per cent

to US dollars 7,992 million in 2011. Major contribution to this growth came from exports of textiles

and garments, rubber products and petroleum products. Further, earnings from exports of food,

beverages and tobacco, gems, diamonds and jewellery, transport equipment and machinery and

mechanical appliances made a significant contribution to export earnings.

Earnings from textile and garment exports, which accounted for 39.7 per cent of total exports,

increased by 24.9 per cent to US dollars 4,191 million in 2011, surpassing the US dollars 4 billion

target set by the apparel industry. Quality of Sri Lankan garments as well as rising cost of production

in competitor countries mainly due to wage pressures, have helped sustain a strong demand for exports

of textiles and garments of Sri Lanka. Apparel exports to USA increased by 21.5 per cent, while those

to EU increased by 25.1 per cent during the year. Market diversification and increased value addition

also helped in increasing apparel export earnings in 2011. To further enhance local value addition,

several measures were taken in the budget 2012, such as, exempting all taxes imposed on the

importation of yarn and exempting VAT and Customs duty on equipment required to modernise the

apparel industry.

Earnings from industrial exports such as rubber products, petroleum products, transport equipment,

machinery and mechanical appliances, gems, diamonds and jewellery, food, beverages and tobacco

increased in 2011. Earnings from rubber product exports increased by 58.7 per cent to US dollars 885

million in 2011, mainly due to an increase in prices. Domestic manufacturers of solid rubber tyres and

rubber gloves for exports, in particular, were encouraged by high rubber prices, while more

opportunities for value addition were also evident, resulting in an increase in export earnings.


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Earnings from exports of petroleum products increased, reflecting an increase in prices and bunkering

volumes. Bunkering activities are expected to increase further with expanding port operations in

Colombo and Hambantota. Transport equipment, such as bicycles and boats, and mechanical

appliances, such as insulated cables and transformers, also recorded an increase during the year.

Benefiting by tariff concessions provided for gems, diamonds and jewellery industry and facilitation

for sourcing materials for value addition, export of gems, diamonds and jewellery increased by 29.9

per cent to US dollars 532 million in 2011, where gem exports grew by 35.6 per cent and diamond

exports grew by 28.9 per cent. Earnings from food, beverages and tobacco exports increased by 42.4

per cent to US dollars 348 million, mainly due to the increase of milling industry products, which

comprised of wheat, rice, manioc and potato milled for flour, vegetables, and fruits preparations.

Earnings from agricultural exports, which accounted for 23.9 per cent of total exports, increased by 9.6

per cent to US dollars 2,528 million. Earnings from traditional agricultural crops increased due to

higher prices that prevailed in the international market during the first half of 2011. Among

agricultural exports, tea accounted for 14.1 per cent of total export earnings in 2011 followed by

coconut (2.5 per cent), spices (2.2 per cent) and rubber (2 per cent).

Tea exports continued to be the major agricultural export, contributing 59 per cent to the total

agricultural exports. Earnings from tea exports increased by 3.5 per cent to US dollars 1,491 million

despite the slowdown in exports to traditional destinations in the Middle East during the second half of

2011. The average export price of tea rose by 5.1 per cent to US dollars 4.62 per kg during 2011, due

to increased preference of tea importing countries for high quality ‘Ceylon tea’ and global demand for

orthodox tea, which accounted for nearly 90 per cent of tea produced in Sri Lanka. Due to geopolitical

tensions in some of the major markets in the Middle East, export volume of tea declined marginally by

1.5 per cent to 323 million kg in 2011. The extension of the fertiliser subsidy to cover plantations

introduced in mid 2011 would help increase production of tea and thereby increase export volumes in

the near future. The Cess levy of Rs. 10 per kg introduced in the budget for 2011 on bulk tea exports

appears to be partly instrumental in increasing the export of value added tea, as reflected by a 6.9 per

cent decline in the quantity of bulk tea exports in 2011. The share of value added tea exports out of

total tea exports increased from 59.5 per cent in 2010 to 63.9 per cent in 2011.

Earnings from export of rubber and coconut increased mainly due to an increase in prices. Earnings

from rubber exports increased by 19.1 per cent to US dollars 206 million in 2011 despite a decline in

export volumes. A short supply of natural rubber in the world market resulting from unfavourable

weather conditions in major rubber producing countries coupled with high oil prices contributed to

higher prices at the Colombo auction, particularly in the first half of 2011. The average export price of

rubber rose by 45 per cent to US dollars 4.84 per kg in 2011. Despite higher export prices, export

volumes of rubber declined by 17.9 per cent in 2011, due to increased domestic demand by rubber

manufacturing industries and the Cess on raw rubber exports. Meanwhile, earnings from export of

coconut products increased by 60.4 per cent to US dollars 266 million in 2011, largely due to higher

earnings from desiccated coconut exports.

The sharp increase in desiccated coconut exports was driven by higher volumes and favourable prices

fetched at auctions. Export of fresh coconuts declined both in value and volume terms by 46.4 per cent

and 60.5 per cent, respectively, in 2011 due to increased domestic demand. Earnings from spices and

minor agricultural products grew with favourable prices in the international market. Earnings from

spices led by cinnamon and nutmeg increased by 13.5 per cent to US dollars 235 million in 2011.


14

Cinnamon exports grew by 31.4 per cent to US dollars 129 million largely due to an increase in prices

by 30.8 per cent to US dollars 9.38 per kg in 2011. Earnings from pepper and cloves declined due to a

decrease in export volumes although prices remained high. Minor agricultural products including

fruits, edible nuts, cereals, flowers and foliage and cocoa recorded higher export earnings. Earnings

from unmanufactured tobacco increased by 19.2 per cent to US dollars 38 million in 2011.

DIRECTION OF TRADE

India remained the major trading partner in 2011 followed by Singapore and USA. The other countries

that had trade over US dollars 1 billion in 2011 include China, Iran, UK and Japan. USA and UK

remained the largest export destinations, while India and Singapore followed by China remained the

foremost import origins in 2011. India contributed to over 16 per cent of Sri Lanka’s external trade in

2011. USA accounted for 20.3 per cent of Sri Lanka’s exports, followed by UK (10.5 per cent) and EU

(23.3 per cent, excluding UK). Garments continued to account for the bulk of exports to these markets.

Among EU member countries, Italy (5.8 per cent), Belgium (5.4 per cent) and Germany (4.8 per cent)

remained the leading export destinations in 2011. Almost 79 per cent of Sri Lanka’s processed

diamonds were exported to Belgium in 2011. Exports to India accounted for about 4.9 per cent of Sri

Lanka’s total exports, increased by 9.5 per cent in 2011 and comprised of machinery and equipment,

animal fodder, spices and garments. Russia continued to be the major destination for tea exports

accounting for nearly 17 per cent of total tea exports in 2011. Singapore emerged as an important

export destination in 2011 by accounting for nearly 3.9 per cent of Sri Lanka’s exports. India continued

to be the largest source of imports in 2011 and accounted for nearly 21.9 per cent of imports in 2011.

Total imports from India amounted to US dollars 4,431 million in 2011. Main imports from India were

refined petroleum products, motorcycles and auto-trishaws. Singapore and China followed as the

second and third largest import origins, accounting for 10.5 per cent and 10.3 per cent of total imports,

respectively. Main imports from Singapore comprised fertiliser and petroleum products, while the

major imports from China were machinery and cotton. Iran and Japan remained the fourth and fifth

largest source of imports, respectively. Imports from Iran and Japan comprised mainly crude oil and

motor vehicles, respectively.

SECTORAL EXPORT PERFORMANCE IN 2011/2012

TEA

Total tea production in 2011 declined marginally by 0.8 per cent to 328.6 million kg over 2010. The

decline in production was evident in all three elevations during the first two months due to excessive

rains while medium and high elevations were affected in the third quarter due to dry weather

conditions. During the year, medium grown tea production declined by 6.3 per cent to 52.6 million kg

while high grown production and low grown production grew only marginally by 0.2 per centto 79.3

million kg and 0.3 per cent to 196.7 million kg respectively. The small holdings, bearing the

cultivation extent of around 120,664 hectares of tea contributed 69 per cent of the total tea production

in 2011. The upward revision of estate sector wages during 2011 reduced producer margins though the

extension of the fertiliser support scheme to the estate sector, which was previously limited to tea

smallholders, helped reduce the cost of production of the plantation companies. The favourable export

prices helped sustain the average production level of tea manufacturers during the year. A notable

development during the year was the increase in Cut, Tear, and Curl (CTC) tea production by 5 million


15

kg to 23.7 million kg. However, orthodox Black tea, which is the country’s major category of tea

production declined by 2.5 per cent to 301.9 million kg during the year. The average price of tea of all

elevations at the Colombo tea auction (Cta), which remained higher in the first quarter of 2011

compared to corresponding period of 2010, continued to decline during the rest of 2011. Accordingly,

the annual average of all prices at CTA declined to Rs. 360.68 per kg in 2011 compared to Rs. 371.54

per kg in 2010. The decline in auction prices in 2011 after the first quarter was largely due to the

moderation in demand with the political uncertainties in some countries in the Middle Eastern and

North African region together with the increase in the supply by other tea producing countries.

However, the average export price of tea increased to uS$ 4.60 per kg in 2011 from US$ 4.40 per kg in

2010.

RUBBER

Rubber production in 2011 increased by 3.2 per cent to 157.9 million kg over the previous year. The

growth in rubber production was mainly supported by favourable weather conditions and receiving

highest ever prices for natural rubber during the year. The total extent under rubber tapping increased

by around 4 per cent to 101,720 hectares. The new planting extent also increased by 9 per cent to 1,534

hectares in 2011 reflecting the growers’ response to the high prices. Higher growth in production is

also due to sound agricultural practices such as the increase in application of fertiliser to the mature

rubber cultivation and increased fixing of rain guards and improvement of labour productivity with the

support of government’s extension services. The average prices of all varieties of rubber recorded the

highest ever prices in 2011. The annual average price of Ribbed Smoked Rubber (RSS) No.1 increased

by 26 per cent to Rs. 509 per kg, while the average Latex Crepe (LC) No. Ix also increased by 26 per

cent to Rs. 575 per kg compared to 2010. Natural rubber prices increased to unprecedented levels in

the first nine months of 2011 with soaring prices of rubber futures and increases in demand for natural

rubber from emerging economies. However, the natural rubber prices during the fourth quarter showed

a sharp decline due to lower demand from major buyers like China and also the buildup of stocks in

the market. Accordingly, the average price of LC No. Ix declined to Rs. 417 per kg during the last

quarter from Rs. 627 per kg during the first nine months of 2011. The prices of other varieties such as

RSS and Scrap Crepe also moved in the same direction.

COCONUT

The coconut production, which showed a sharp decline in 2010, recovered during 2011 increasing by

8.6 per cent to 2,808 million nuts. This was mainly due to improved weather conditions in the major

coconut growing areas. However, the domestic coconut oil production declined by 18.5 per cent to

53,093 metric tons (equivalent to 392 million nuts) during the year largely due to increase in edible oil

imports with the reduction in customs duty on edible oil importation by Rs.25 per kg in early 2010

followed by rs.20 in the late 2010 and also encouraged by low international edible oil prices in 2011.

Accordingly, during the year palm oil and coconut oil imports increased by 79 per cent to 138,939

metric tons. However, the production of Desiccated Coconut (DC) grew by 62 per cent to 46,620

metric tons (equivalent to 363.5 million nuts) in 2011 over the previous year. The significant

improvement in the DC industry was largely driven by the increase in international demand and the

better export prices. The production of coconut cream and milk powder also showed impressive

progress, reflecting the increase in coconut value addition industries. Higher coconut prices that

prevailed in the first half of 2011 decelerated during the second half of the year with increased

domestic production. During the first half, wholesale and retail coconut prices escalated to


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unprecedented levels due to relatively poor harvest in the fourth quarter of 2010. The average auction

price of coconut, which remained at Rs. 37.64 per nut in the first half of 2011, declined to rs. 31.75 per

nut in the second half of the year. A similar trend of lower prices in the second half was also seen in

Coconut oil, Copra and DC at the Colombo Coconut Auction.

SPICES AND ALLIED PRODUCTS

The production of other export agricultural crops showed mixed performance in 2011. Cinnamon

production increased by 11 per cent largely due to higher prices fetched by cinnamon and cinnamon

products which reflected increased export demand. Increased fertiliser application and the increased

extent of cinnamon as a result of replanting and new planting during the last several years also

contributed to increased production. The extent of cinnamon has increased by 4,471 hectares to 30,522

hectares during the period from 2005 to 2010. In contrast, pepper production declined by 38 per cent in

2011 largely due to adverse weather conditions in the flowering and fruiting period in major pepper

growing areas. Accordingly, exports of pepper declined during the year despite the black pepper prices

remaining robust due to higher export demand. Clove production also declined significantly by 42 per

cent in 2011.The price of cloves increased with the high export demand and short supply. The clove

production mainly depends on the nature of flowering and fruiting cycle of the crop which produces a

bumper harvest one year followed by a poor harvest in the following year. Among other crops

cardamom, cocoa and betel production increased by 19 per cent, 1 per cent and 2 per cent respectively,

while citronella, nutmeg- mace production declined by 37 per cent and 7 per cent, respectively.

Earnings from spices and minor agricultural products grew with favourable prices in the international

market. Earnings from spices led by cinnamon and nutmeg increased by 13.5 per cent to US dollars

235 million in 2011. Cinnamon exports grew by 31.4 per cent to US dollars 129 million largely due to

an increase in prices by 30.8 per cent to US dollars 9.38 per kg in 2011. Earnings from pepper and

cloves declined due to a decrease in export volumes although prices remained high. Minor agricultural

products including fruits, edible nuts, cereals, flowers and foliage and cocoa recorded higher export

earnings. Earnings from unmanufactured tobacco increased by 19.2 per cent to US dollars 38 million

in 2011.

FISH & SEAFOOD

Total fish production in 2011 increased by 15.6 per cent to 444,830 metric tons. While marine fish

production grew by 16 per cent to 385,270 metric tons, the inland fish production grew by 13.6 per

cent to 59,560 metric tons during the year. The highest growth was witnessed in deep sea fishing (25

per cent) in the marine fish sector compared to coastal fishing (9.8 per cent). In 2011, all the provinces

except the Eastern Province showed an increase in fish catch supported by favourable weather

conditions. Fish production in the Eastern Province declined by around 4 per cent due to adverse

weather conditions and its contribution to total marine fish production declined from 28 per cent in

2010 to 23 per cent in 2011. However, the fish catch in the Northern Province increased significantly

by 38 per cent in 2011 reflecting increased participation of people in the fishing industry in the

Province. However, the relative contribution of the Northern Province in total marine fish production

in 2011 was only 12 per cent compared to that of 41 per cent in 1983. Therefore, it is necessary to

increase the fishery fleet in the Northern Province alongside the improvement in fishery infrastructure


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to reach the full potential of production in the Province. Meanwhile, the improvement recorded in the

inland fishery sector was largely a result of releasing 44 million fish fingerlings and 11 million fresh

water prawns during the year. retail prices of large varieties of fish in 2011 remained relatively high

during the second half of the year compared to the corresponding period of 2010 largely due to the

decline in the fish supply from the Eastern Province while the prices of small varieties remained

somewhat subdued throughout the year largely due to improved coastal fish catch in the Southern and

North Western provinces.

APPAREL

Manufacture of wearing apparel recorded a significant growth of 13.8 per cent during 2011 compared

to 3.2 per cent in 2010. The growth in the apparel sector is commendable in the wake of the slowdown

in major export markets in the US and EU regions. Consequently, apparel exports surpassed the

significant milestone of US dollars 4 billion in 2011. Sri Lanka’s reputation as a reliable supplier

enabled the industry to maintain a high growth momentum in traditional markets while increasing

exports to other non-traditional markets. Focus on moving up the value chain, strategic partnerships

with key customers and supply chain stakeholders together with improvements in quality and

productivity also contributed to the high growth in the wearing apparel division.

Apparel industrialists continued to explore niche markets in the Asian region and other nontraditional

markets to sustain the current growth momentum given the continuing deflationary pressures in the EU

region and low growth in the US. In this regard, it is noteworthy that apparel exports to countries other

than the EU and the USA, in particular to Japan, India, Saudi Arabia, Australia and Russia have

witnessed a marked improvement. Measures to diversify into new markets will also be strengthened by

gaining preferential market access to key emerging markets such as China and Russia in the future.

INDUSTRIAL EXPORTS

Industry sector grew by 10.3 per cent in 2011 compared to 8.4 per cent in 2010, while the share of

industry sector in the total GDP increased to 29.3 per cent in 2011 from 28.7 per cent in 2010.

Reflecting the conducive environment for industries that prevailed during the year, all sub sectors,

namely, mining and quarrying, manufacturing, electricity, gas and water and construction recorded

higher growth rates. Factory industry, the largest sub sector in industry sector, recorded a growth of 8.3

per cent in 2011 compared to 7.5 per cent in 2010. All major categories in the factory industry

recorded improved performance resulting from increased domestic activity and the resilience of export

industries despite a difficult global environment. The rising private sector consumption, aided by lower

interest rates and inflation coupled with post-war optimism, stimulated domestic demand spurring

growth in factory industry output. Export market oriented industries maintained their competitiveness

amidst the sluggish recovery in traditional western markets by implementing cost saving strategies and

product and market diversification strategies.

FUTURE EXPORT CHALLENGES

The key challenge facing Sri Lanka in 2012 is managing the numerous risks arising from global

developments. Clear signs of global recovery are yet to be seen while geopolitical tensions in some oil-

producing countries, adverse weather and climatic conditions and higher demand from emerging

economies would continue to keep energy and other commodity prices in the international market


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elevated. In the past two years, Sri Lanka has been able to withstand the external shocks with improved

domestic supply conditions, robust domestic demand and improvements in key macroeconomic

variables. However, Sri Lanka’s ability to resist these persistent uncertainties in the global economy is

likely to be rigorously tested yet again in 2012, and further advances in productivity and quality of

production, export diversification, promotion of renewable energy use and energy conservation and

improving domestic food supplies further along with effective demand management policies are

required to address exogenous disturbances effectively. The Central Bank and the government took a

number of bold decisions at the onset of 2012 to address emerging imbalances, particularly in the

external sector of the economy. The adjustments to domestic energy prices could help correct external

sector imbalances and improve the balance sheets of public corporations, although there could be a

one-off increase in domestic price levels and the cost structure of domestic industries and services. The

freer movement of the exchange rate would help address the imbalance in the trade deficit by

restraining imports and stimulating exports of both goods and services. The trade balance is likely to

benefit from the increase in excise duty on motor vehicles as well. Higher interest rates and lower

disbursement of credit by commercial banks could contain trade related credit and future inflation, but

would have an impact on economic growth. However, these adjustments were essential to ensure

maintaining the macroeconomic balance needed for sustained growth, and any resultant diversion from

the original medium term macroeconomic targets would be transitory.

(Source: Central Bank Report 2011)

FLORICULTURE, FRUITS & VEGETABLES

The Associations recorded that the respective sectors had shown encouraging growth of around 30%

YOY in the figures to December 2011. Notably exporters had begun to make headway in deflecting

their products into emerging markets. The considerations afforded to both sectors in the November

2011 budget was welcomed and have assisted towards improving the supply chain and production base

which is vital for sustained growth. Disappointingly the 1st and 2

nd quarters of 2012 have only recorded

growth of 9%. However, the investment made towards improving Production should enable exporters

to approach markets in a more competitive manner in the future.


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EXPORT STATISTICS


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REVIEW OF ACTIVITIES 2011/2012

ANNUAL GENERAL MEETING

The Exporters' Association of Sri Lanka which is affiliated to the Ceylon Chamber of Commerce held

its 14th AGM on the 27th

July 2011. The Minister of Economic Development Basil Rajapakse was the

Chief Guest at the AGM and the Governor of the Central Bank of Sri Lanka Ajith Nivard Cabraal was

the Guest of Honour and the Key note speaker at the event.

Dawn Austin Managing Director of Nidro Supply (Pvt) Ltd assumed responsibility as Chairperson for

EASL, whilst Rohan Daluwatte, Manager, Operations & Logistics, Tea Tang (Pvt) Ltd was elected

1st Vice Chairman and Saradha De Silva Chairman and Managing Director of Intercom (Pvt) Ltd was

elected as the 2nd

Vice Chairman.

The EASL's mission is to promote and protect the interests of the Exporter Community at large and

this has brought together a wide spectrum of Exporters under a strong single platform aimed at

exchanging views and making representation on Macro issues relevant to the country's Exports.

The EASL has constantly engaged with Government agencies, representing and lobbying Exporter

concerns for consideration, with a view to facilitating a dialogue with regard to national policy

direction, whilst taking into account the shared goal of achieving strong national economic

development through the combined endeavours of the Export Sector and the Government.

Mr. Cabraal encouraged the high profile House by stating that, despite the state of the world's

economy, Exports in the first half of the year had demonstrated that the country can achieve growth at

around 8.5 percent this year. He explained the negative impact of inflation and urged Exporters to

identify niche market demands whilst addressing the aspect of improving productivity. He stated that

the Government had successfully addressed the establishment of a stable macroeconomic platform

for business development by regulating and reducing interest rates and the level of inflation. He

commented that new and diversified export markets have emerged in the recent past which was a

reflection of Sri Lankan Exporters; ingenuity. He stated that the dividend of peace would auger well

for new investment and create a positive environ for increased Export activity.

Ms. Nirmali Samaratunga, Co-Chairman and Joint Managing Director, Mackwoods Ltd stepped down

as the Chairperson of the Association after completing 3 successful years in the said capacity. She

concluded her speech by saying "Sri Lanka is today, poised for exponential growth and sustainable

progress and development. The peace we yearned, for almost 3 decades and the political stability

fundamental for strong economic growth is today a reality. With this firm foundation now in place it is

for us as citizens of this country and particularly as the private sector to, in partnership with the

Government build on this foundation so the country may realize its true potential to achieve double

digit growth, double per capita income, reach middle income status, and most importantly, achieve

social equity for all".

Ms. Dawn Austin, Managing Director, Nidro Supply (Pvt) Ltd on her election as Chairperson of the

Association for the year 2011-2012 stated that "the year ahead is definitely going to be a challenging

one" She recorded her belief that the Government's Export target of $20Bn in the year 2020 was


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achievable. She also said that Exporters would need to re-invent their strategies and define new

marketing initiatives in order to meet customer demands in a volatile currency market. She assured the

Hon Minister that the EASL looks forward to engaging with the Government, as also with the Private

Sector, in extending its capacity and willingness to support every endeavour towards take this country

to a greener and sustainable future way beyond 2020.

MANAGEMENT COMMITTEE MEETINGS & SUMMARY OF ITS ACTIVITIES

During the period under review (2011/2012) the Committee met on twelve (12) occasions.

EASL REPRESENTATION ON OTHER BODIES/PARTICIPATION AT OTHER FORUMS

Committee of the Ceylon Chamber of Commerce - Represented by Chairperson,

Mrs. Dawn Austin & 1st Vice Chairman,

Mr. Rohan Daluwatte

Employers Federation of Ceylon - Represented by Chairperson,

Mrs. Dawn Austin/1st VC Mr. Rohan

Daluwatte

Duty Rebate Committee, Sri Lanka Customs - Represented by – Past Chairman,

Mr. G.S.Chatoor & Committee Member,

Mr. Vernon Abeyratne

Sri Lanka Shippers’ Council - Representative – 1st Vice Chairman,

Mr. Rohan Daluwatte

Alternate – Committee member

Mr. Chrisso De Mel

EDB Advisory Committee on Marketing - Represented by Chairperson

Exporters Forum - Representative – Chairperson

EDB Advisory Committee on Trade Facilitation - Representative – 1st Vice Chairman,

Mr. Rohan Daluwatte

Alternate – Committee member

Mr. Chrisso De Mel

National Council for Economic Development - Export Cluster Co-Chair - EASL

Export Cluster Chairperson

EDRS Steering Committee (Ministry of Finance) - Represented by Mr.G S Chatoor &

Chairperson

EDRS Advisory Committee (Ministry of Finance) - Mr.G S Chatoor


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The Association also maintained a close dialogue with the following Institutions, on export related

matters:

Ministry of Export Development & International Trade

Ministry of Finance

Ministry of Foreign Affairs

Sri Lanka Export Development Board

Department of Inland Revenue (VAT Dept)

Sri Lanka Customs

Board of Investment

The Central Bank of Sri Lanka

Sri Lanka Ports Authority

Department of Commerce

Department of Exchange Control

Joint Apparel Associations Forum

MAIN AREAS ADDRESSED DURING THE YEAR UNDER REVIEW

As the apex body representing over 1,000 Exporters through direct & indirect membership, who

contribute over 80% to the total exports of the country, the EASL activities during the year under

review, were primarily aimed at facilitating an environment for the Exporters with a focus on global

competitiveness and achieving strong growth of the Sector.

Several key issues were addressed with the Institutions concerned. These included the fluctuation of

the exchange rate, issues on the SVAT Scheme and the online system with Customs. Matters relating

to Customs statistics being available to the exporters were also raised many times. Matters relating to

Quarantine issues were addressed with the different agencies .

EASL also submitted submission for the 2012 National Budget, which proposed measures to support

and grow the Sector. Some of the key issues which needed to be addressed in the Budget had been

identified by the EASL’s membership (which accounts for over 80% of Exporters), can be largely

identified under the headings of Global Competitiveness & Ease of Doing Business.

KEY EXPORT RELATED MATTERS ADDRESSED AND RESOLVED THROUGH EASL

INTERVENTIONS AT MEETINGS WITH GOVERNMENT OFFICIALS AND OTHER

EXPORT RELATED ORGANIZATIONS:

i) Export Development Reward Scheme (EDRS)

Direction to membership to keep the EASL copied on their communications re issue of Treasury

Bonds for 1st and 2

nd quarter outstandings. .


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ii) Restoration of the Presidential Export Awards

Since the awards for the years 2007, 2008 and 2009 were long overdue, the EASL made strong

representation to the Secretary, Ministry of Industries and Commerce as well as to the Chairman

Export Development Board urging them to restore the program as it encouraged the sector. The

Award Ceremony took place at Temple Trees on the 28th of June 2011 presided over by His

Excellency the President.

iii) EASL Submissions for 2012 National Budget

Submissions of the different Sectors were consolidated and presented by EASL to the Ministry of

Finance. Key issues were largely identified under the headings of Global Competitiveness & Ease

of Doing Business respectively. This submission was well received and the aspects highlighted as

urgent were successfully addressed in the Budget of Nov 2011.

iv) Department Of Inland Revenue

Representations were made to the Director General of IR in respect of VAT refunds.

v) Sri Lanka Customs

Meetings with Director General Customs

Export Statistics to be available monthly for the benefit of the exporters to understand the

competitiveness in the market

vi) Export Development Board

Ongoing interaction with the EDB and members of the Managing Committee being

included on the respective EDB Advisory Committees.

EASL participated in EXPO 2012 with and information unit on EASL’s activities.

EASL’S AFFILIATION WITH OTHER ORGANIZATIONS ON EXPORT RELATED

MATTERS

i) The Ceylon Chamber of Commerce

Participation in monthly Chamber meetings:

ii) Sri Lanka Shippers’ Council

During the year under review, the Association took an unanimous decision to suspend its

membership of the Council, but to extend its support by way of participation in events/seminars

organized by the Shippers’ Council, and to extend its fullest support and cooperation to SLSC,

whenever matters of common interest were involved.

iii) Employers Federation of Ceylon

As an Affiliated Association of the EFC, EASL participated in EFC regular meetings, where

employee related matters were discussed. The Chairperson, Mrs. Dawn Asutin and 1st Vice

Chairperson, Mr. Rohan Daluwatte represented EASL at these meetings of the key issues

discussing the proposed Private Sector Pension Scheme and its implications.


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AWARENESS BUILDING ACTIVITIES

A) Dissemination of Information

The membership was alerted on various issues affecting exporters, as well as matters of interest, by

way of Circulars issued by EASL as well as the Ceylon Chamber of Commerce and various other

affiliated bodies of the relevant local Chamber. This included information on matters of business

interest to members, notices of topical seminars/workshops organized by the Ceylon Chamber of

Commerce and affiliated Associations/Councils.

During the period under review, some of the key circulars issued by the Association were circulated

amongst the membership for their information:

Spread over of hours of work on 5 days of the week – EFC

The export development board ties up with rainbow pages to launch the export directory

Issues faced by exporters to be taken up at the export forum - EDB

Value chain studies for successful agribusiness

Taking our tea export brands from good to great

Proposed Sri Lanka – South Africa free trade agreement seeking inputs from the private sector

CEPA presentation made at the managing committee meeting

Implementation of ASYCUDA world effective 02/02/2012

Trade policy symposium

Proposals for the 2012 national budget

B) Seminars

Several Awareness Building Seminars were organized during the year, as part of the programme to

support the export sector.

i) Seminar on “SVAT - Simplified Value Added Tax (SVAT) Scheme : All you need to

know”

The VAT Act No. 14 of 2002 as amended on the basis of Value Added Tax (Amendment) Bill

passed by Parliament on March 22, 2011, to facilitate the operation of the SVAT scheme which is

administered by the Department of Inland Revenue and implemented effective from April 1, 2011.

This seminar was targeted mainly to clear all problematic and unclear areas of the new SVAT

scheme and is targeted for all Exporters as well as Suppliers & Non- Exporters.

Its aim was to discuss major issues faced by VAT payers in complying with the Simplified Scheme

and in obtaining legitimate Refunds. It also explored the current problems at not only Exporter

level but down the line of Supply as well.

The following speakers and panelists participated at the seminar:

Mrs. Mallika Samarasekera-Deputy Commissioner General, Department of Inland Revenue and

other key officials of the Inland Revenue

Mr. Duminda Hulangamuwa- Partner, Ernst & Young , discussed & highlighted issues and

difficulties faced by different categories of taxpayers coming under this Scheme.


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ii) Interactive Forum On Flexible Exchange Rates”

At the interactive Forum held to assist Exporters to understand the impact of the changeover to a

Flexible Exchange regimen, the discussions were of value to all stakeholders involved in Exports

seeking to capitalize on the opportunities and addressed the challenges as a result of the new exchange

rate policy.

Eminent resource personnel with extensive experience in their respective fields shared their views in

an open forum at which the Speakers were: Dr. W. A. Wijewardena, Dr. Indrajith Coomaraswamy,

Dr. Anila Dias Bandaranaike and Mr. Deshal De Mel.

This event helped to unravel some of the implications whilst directing Exporters towards developing

fresh management skills to handle the opportunities and identifying some of the difficulties they would

encounter going forward.

C) Website

EASL Website was launched in the month of June http://www.exporterssrilanka.net. The site has

proved to be an extremely useful information tool

D) Publicity

Several Press releases and interviews were given by EASL to create awareness of developments and

issues in the Sector, and the future outlook. An EASL Brochure was issued for the EXPO 2012.

E) Membership

The Membership as at 31st March 2012 consisted of 84 individual Exporter members and 10 Product

Associations. The Annual Membership Fee effective 1 April 2012 is Rs 5000.00

F) Auditors and Annual Accounts

The Auditors of the Exporters Association of Sri Lanka for the period 2011/2012 were Messrs. KPMG

Ford Rhodes Thornton & Co.The Audited Accounts of the Association is attached.

G) Secretariat

The Ceylon Chamber of Commerce continued to provide Secretarial Services to the Association during

the period under review.

BY ORDER OF THE COMMITTEE

Sgd.

Manjula Maldeniya

For Secretary

http://www.exporterssrilanka.net/


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EXPORTERS’ ASSOCIATION

OF SRI LANKA

FINANCIAL STATEMENTS

FOR THE YEAR ENDED

31 MARCH 2012


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Documents

Exporters’ Association - Sri · PDF fileThus the Exporters Association of Sri Lanka (EASL), was inaugurated on 22nd of August, 1997 with the