The Export Development Board (EDB)organised Sri Lanka’s participation at the first China International Import Expo (CIIE) in Shanghai recently. There were two product pavilions and a Sri Lanka country promotion pavilion.
The CIIE provided an excellent platform for the participant companies to enter the Chinese market and further consolidate the existing market link.
Six government organisations, the Sri Lanka Tea Board, the National Gems and Jewellery Authority, SriLankan Airlines, Sri Lanka Tourism Promotion Bureau, Coconut Development Authority and three investment promotion projects joined the Sri Lanka National Pavilion to showcase the strength of the country in the sphere of trade, investment, travel and tourism. Sri Lanka participated in many parallel fora, and B2B sessions.
Eleven tea companies (Euro Asia Corporation, Euro Scan Exports, Food & Nature, Tea Talk , Sinolan Tea , Sunshine Tea, Mabroc Teas, Russel’s Group of Companies, Lions Management , Samley Teas, World Mart Ceylon, five coconut kernel products companies Hero Nature Products, Tradlanka Agricultural Enterprises , Wichy Plantation Company, A.S.Agri Exports , Kaushalya Organic Industries, a company producing chemical paint for food processing companies, Ferrow Chemicals, a spice company Rathna Producers Cinnamon Exports and 11 gem and jewellery companies Githsara Gem & Jewellery, Roshan Gem Centre, Gamini Gems & Jewellery, Piyasiri Gems (Pvt) Ltd, Oriental Gem Craft, The Choice, Sun Shine Gems & Jewellers, Solar Gems Jewellery, Premadasas Gems & Jewellery, Vogue Jewellers and Regal Gems joined hands with the EDB to showcase quality Sri Lankan products to the discerning Chinese buyers.
Sri Lankan companies in the food and agriculture sector achieved their objectives in participating at CIIE. They were able to test the market for demand, acceptance and competitiveness, identify and appoint agents/representatives/distributors, enter into agreements and some of them introduced new products to the market. The Managing Director of World Mart Ceylon (Pvt) Ltd (WMC) stated that “the exhibition was a success for World Mart Ceylon (Pvt) Ltd. We have appointed a sole agent in China and also there are 36 agents who are interested to do business with us and right now we are negotiating with them. We also received $ 15000 to $ 17 000 initial orders by this visit.”
The Marketing Director of Kaushalya Organics Industries (Pvt) Ltd said, “The participation at CIIE was extremely worthy and we received inquiries for organic virgin coconut oil and moringa tea in a considerable quantity for each on the spot.”
The visitors at the Expo had high standards with real business interest. The Sri Lanka pavilions attracted many Chinese and foreign business decision makers who were interested in importing Ceylon tea, coconut products, spices, processed food products, gems and jewellery, rubber products, handicrafts. Investors and people with tourist and travel interests were among the visitors.
The EDB plans to organise this event next year as well to diversify Sri Lanka’s export product basket to China and to increase Sri Lanka’s exports to China. The CIIE was China’s first import expo at international level, an innovation in the history of global trade.
It was organised by the Ministry of Commerce of the People’s Republic of China and Shanghai Municipal People’s Government supported by the World Trade Organisation and the United Nations Industrial Development Organisation, the China International Import Expo Bureau and the National Exhibition and Convention Center (Shanghai) Co. Ltd.
One-hundred-and-seventy-two countries, regions and international organisations, over 3,600 companies, in an exhibition area of 300,000 square metres, and more than 400,000 Chinese and foreign buyers attended this mega event and explored business deals.
The Chinese economy is developing steadily with a medium-high speed of growth. In the following five years, China is expecting to import goods and services worth more than ten trillion USD, which provides a historic opportunity for enterprises to enter the huge Chinese market.
China was the sixth export destination of Sri Lanka in 2017 with exports worth US $ 415 mn. contributing to 3.6% of total export earnings of Sri Lanka. On the other hand, China was the second import origin for Sri Lanka with imports worth US $ 4,605 mn which accounts for 19.6 % of total imports.
This situation has created the need for reducing the trade gap between the two countries by building better market access for established Sri Lankan export products such as tea and gems and jewellery and diversifying into other potential product sectors such as rubber products, apparel, coconut kernel products and processed food.