Business
Opportunities for Sri Lankan electronic and electrical Industry to link with global value chains
EDB takes initiatives for the betterment of the sector
Sri Lanka’s ability to overcome the current financial crisis heavily depends on export revenue. Foreign Direct Investments (FDIs), High Value Addition, Business-Friendly regulatory framework, and Research and Development (R&D) initiatives are necessary for Sri Lankan exporters to compete in international markets and establish connections to the Global Value Chain (GVC).
Statistics show that Sri Lankan exporters have not been able to properly connect to the GVC despite the country’s inherent comparative advantage in this area of global production due to its Geographic Advantage, Logistics, Market access, Educated and Adaptable Workforce, Lower cost of Manufacturing, Precision Manufacturing and Labor, Quality, Reliability and Trust, Low Lead Time etc. Some of the major contributing causes are Organizational Challenges, Legal & Regulatory Challenges, Technical Challenges, Social & Cultural Challenges, Political Challenges, and Economic Challenges.
Over the past five years, the Sri Lankan Electronic and Electrical industry has advanced significantly. Despite the Covid pandemic, economic hardship, and political uncertainty, the sector export revenue grew by 22% between 2015 and 2022. Automobile Components, Power Generation and Distribution, Telecommunication, Medical, Construction, Consumer Electronics, and Industrial Automation make up the majority of the sector’s exports with over about 100 companies. The Sri Lankan Electronic and Electrical Sector (EEC), which employs more than 38,000 skilled workers and ranks fifth in terms of the country’s merchandise export income earners, generated US$ 483 million in 2022. Original Equipment Manufacturers (OEMs) and Electronics Manufacturing Service (EMS) providers make up the majority of the businesses.
Global Value Chains have benefited emerging nations by facilitating their diversification away from primary products and toward manufactures and services. In the past, in order to export a manufactured good, a nation had to be capable of producing the entire good. Now a nation can specialize in one or more activities where it has a competitive advantage through value chains. GVCs separate the various steps in the creation of a Smartphone, a TV, or a Car so that they can be completed in various countries.
Today, more than two thirds of all global trade take place where value chains cross at least one and frequently several borders during their production process. The EDB has taken some initiatives for the betterment of the sector in connecting to the GVC and to improve the export revenue.
By working with firms that assist with global buyer/importer search, the EDB will develop an International Buyer Search System for all export sectors (like in South Korea) that will enable exporters to easily connect with reliable foreign clients. The EDB is closely collaborating with the Central Bank of Sri Lanka and PayPal for an online payment gateway, that will make it simpler to send and receive payments to and from foreign vendors. In order to connect with trustworthy foreign clients, the EDB is also promoting and advising export companies to participate at most prospective international exhibitions and business forums. The EDB continuously promotes and helps to find potential buyers for local export companies in all export sectors through its web portal (srilankabusiness.com) and social media channels. Moreover, the EDB is working with the Board of Investment of Sri Lanka to entice Multinational Corporations to Sri Lanka in order to encourage Foreign Direct Investments in the Electronic and Electrical sector. Furthermore, the EDB works closely with International Certification Organizations to help export businesses maintain product quality standards in accordance with customer satisfaction so they can connect to GVCs.
In contrast, the Government is working on to upgrade the logistics infrastructure, which includes updating Ports and Airports, expediting Customs operations, and collaborating with all border agencies to provide a one-stop shop system to expedite and facilitate the export process.
The Delegation of German Industry and Commerce in Sri Lanka (AHK Sri Lanka) proudly facilitated the first-ever Sri Lankan delegation’s participation at Drupa 2024, the world’s largest trade fair for the printing industry and technology. Held after an eight-year hiatus, Drupa 2024 was a landmark event, marking significant advancements and opportunities in the global printing industry.
AHK Sri Lanka played a pivotal role in organising and supporting the delegation, which comprised 17 members from the Sri Lanka Association for Printers (SLAP), representing eight companies from the commercial, newspaper, stationery printing, and packaging industries. This pioneering effort by AHK Sri Lanka not only showcased the diverse capabilities of Sri Lanka’s printing sector but also facilitated vital bilateral discussions with key stakeholders from the German printing industry.
Business
Unveiling Ayugiri: Browns Hotels & Resorts sets the stage for a new era in luxury Ayurveda Wellness
In a captivating reimagining of luxury wellness tourism, Browns Hotels & Resorts proudly unveiled the exquisite Ayugiri Ayurveda Wellness Resort Sigiriya. This momentous occasion, celebrated amidst a vibrant and serene grand opening on the 6th of June, heralds a new chapter in the Ayurveda wellness tourism landscape in Sri Lanka. Nestled amidst 54 acres of unspoiled natural splendour, Ayugiri features 22 exclusive suites and stands out as the only luxury Ayurveda wellness resort in the country offering plunge pools in every room, rendering it truly one-of-a-kind.
The grand opening of Ayugiri Ayurveda Wellness Resort was an enchanting event, where guests were captivated by the melodies of flutists and violinists resonating through Sigiriya’s lush landscapes. As traditional drummers and dancers infused the air with vibrant energy, Browns Hotels & Resorts’ CEO, Eksath Wijeratne, Kotaro Katsuki, Acting Ambassador for the Embassy of Japan and General Manager, Buwaneka Bandara, unveiled the resort’s new logo, marking a significant moment witnessed by distinguished guests from the French Embassy, Ayurveda and wellness enthusiasts along with officials from the Sigiriya area, LOLC Holdings and Browns Group.
“Our strategic expansion into wellness tourism with Ayugiri Ayurveda Wellness Resort Sigiriya symbolises a significant milestone for Browns Hotels & Resorts. Wellness tourism has consistently outperformed the overall tourism industry for over a decade, reflecting a growing global interest in travel that goes beyond leisure to offer rejuvenation and holistic well-being. By integrating the timeless wisdom of Ayurveda with modern luxury, we aim to set a new standard in luxury wellness tourism in Sri Lanka. Whether your goal is prevention, healing, or a deeper connection to inner harmony, Ayugiri offers a sanctuary for holistic well-being” stated Eksath Wijeratne.
Ayugiri encapsulates the essence of life, inspired by the lotus flower held by the graceful queens of the infamous Sigiriya frescoes. Just as the lotus emerges from the murky depths, untainted and serene,
Ayugiri invites guests on a journey of purity and rejuvenation, harmonised with a balance of mind, body and spirit, the essence of nature, echoes of culture and the wisdom of ancient Ayurvedic healing.
HNB General Insurance, one of Sri Lanka’s leading general insurance providers, has been honored as the Best General Bancassurance Provider in Sri Lanka 2024 by the prestigious Global Banking and Finance Review – UK.
The esteemed accolade underscores HNB General Insurance’s unwavering commitment to excellence and its outstanding performance in the field of bancassurance. Through dedication and hard work, the HNB General Insurance team has continuously endeavored to deliver innovative insurance solutions, cultivate strong relationships with banking partners, and provide unparalleled service to customers nationwide. This recognition is a testament to the team’s dedication and relentless pursuit of excellence in the bancassurance business.
“We are honored to receive this prestigious award, which reflects our team’s tireless efforts and dedication to delivering value-added insurance solutions and exceptional service through our bancassurance partnerships,” said Sithumina Jayasundara, CEO of HNB General Insurance. “This recognition reaffirms our position as a trusted insurance provider in Sri Lanka and motivates us to continue striving for excellence in serving our customers and communities.”
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