ANNUAL REPORT
2017
SRI LANKA EXPORT DEVELOPMENT BOARD
128
18-03-2019
Hon. Malick Samarawickrama Ministry of Development Strategies & International Trade, 30th Floor, West Tower, World Trade Centre, Colombo 01.
Hon. Sir
Annual Report and Statement of Accounts – 2017
I am pleased to present on behalf of the Board of Directors, the Annual Report of the SLEDB together with the following documents for 2017 in term of section 13 (2) of the Finance Act No.38 of 1971.
- Chairperson’s Report
- Statement of Accounts
- Auditor General’s Report
Yours faithfully,
Indira Malwatte Chairperson & CE SRI LANKA EXPORT DEVELOPMENT BOARD
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SENIOR MANAGEMENT STAFF - 2017
Chairperson and Chief Executive - Mrs. Indira Malwatte
Director General - Mrs. J. Siriward a na
Addl. Director General - Finance & - Ms. R. M. P. Hewaliyanage Administration (Up to March 2017) - Mrs. P. K. Sumithrarachchi (From 03.04.2017)
Addl. Director General - Development - Mr. D. Jayawardane (From 03.04.2017)
Finance Division - Mrs. P. K. Sumithrarachchi (Up to 02.04.2017) - Ms. G.M. Herath (Director) (From 16.10.2017)
Human Resources Development Division - Mr. K. K. R. Kannangara (Director)
Trade Facilitation & Trade Information - Mr. S. R. P. Indrakeerthi (Director) Division
Information Technology Division - Mrs. I.C. Alahapperuma (Director)
Export Agriculture Division - Mrs. P.V.A.M. Badd egamage (Director)
Regional Development Division - Mr. T.D. Athapaththu (Director) (Up to 31.03.2017) - Mr. K.M.R.P. Fernando (Actg. Director) (From 01.06.2017)
Policy & Strategic Planning Division - Mrs. U.K.D. Wegapitiya (Director)
Industrial Products Division - Ms. C. Dissanayake (Director)
Export Services Division - Mr. M.K.S.K. Maldeni (Director)
Market Development Division - Mrs. K.A.V. Premathilaka (Director)
Internal Audit Unit - Mrs. R N R Ranasinghe (Inte rnal Auditor)
Legal Unit - Mrs. D.T. Wijayaratne (Legal Officer)
Auditor - Auditor General
Bankers - Bank of Ceylon Sampath Bank NDB Bank
Registered Office No.42, Nawam Mawatha, Colombo 02.
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SRI LANKA EXPORT DEVELOPMENT BOARD BOARD OF DIRECTORS – 2017
01. Mrs. Indira Malwatte - Chairperson
02. Mr. Bandula Egodage - Director
03. Mr. Sanath De Silva - Director
04. Mr. M.J.F. Cassim - Director
05. Mr. Rohan Abayakoon - Director
06. Mr. S.M.M. Salahudeen - Director
07. Dr. Yousuf K. Maraikkar - Director
08. Mr. L.P. Jayampathy - Secretary Ministry of Ports and Aviation
09. Mrs. W.M.M.R. Adikari - Secretary Ministry of Fisheries & Aquatic Resources Development (Up to November 2017)
10. Mr. M.I.M. Rafeek - Secretary Ministry of National Policies & Economic Affairs (Up to July 2017)
11. Mr. U. G. Ratnasiri - Addl. Secretary (Economic Affairs) Ministry of National Policies & Economic Affairs (From November 2017)
12. Mr. D.V. Bandulasena - Secretary State Ministry of Agriculture
13. Mrs. Grace Asiriwatham - State Secretary Ministry of Foreign Affairs (Up to November 2017)
14. Mr. U.K.S. - Addl. Secretary Mihindukulasooriya Ministry of Plantation Industries (Up to February 2017)
15. Ms. Anjali Devaraja - Addl. Secretary Ministry of Primary Industries (Up to March 2017)
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16. Eng. Bandula - Secretary Wickramarachchi Ministry of Primary Industries (From September 2017)
17. Mr. W. A. D. S. Gunasinghe - Addl. Secretary Ministry of Development Strategies & International Trade (From May 2017)
18. Mr. S. Senanayake - Addl. Secretary (Planning & Dev) Ministry of Rural Economy
19. Mrs. Sheitha Senaratne - Addl. Secretary Ministry of Industry & Commerce
20. Mr. P.H.A.S. Wijeyarathna - Addl. Director General Department of Public Enterprises Ministry of Finance
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CONTENTS
Page
1. Introduction 134
2. Export Performance during the year 2017 135-154
3. Statement of Financial Position 155
4. Statement of Comprehensive Income 156
5. Statement of Changes in Equity 157
6. Cash Flow Statement 158
7. Accounting Policies 159-174
8. Notes to the Accounts 175-184
9. Report of the Auditor General 185-198
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SRI LANKA EXPORT DEVELOPMENT BOARD
Introduction
The Sri Lanka Export Development Board [EDB] is the premier organization for the development and promotion of exports. It was established in 1979 under the Sri Lanka Export Development Act No. 40. The EDB plays its roles as Policy Advisor, Monitor, Promoter, Facilitator and Knowledge Provider in carrying out its responsibilities in implementing the strategies for achieving the national export targets.
Vision
The vision of the EDB, “Position Sri Lanka as a Prominent Export Hub for Innovative Products & Services” is aligned with the development vision of the Government and with the vision of the National Export Strategy.
Mission
The mission of the EDB, “Enable export competitiveness through Innovation, Entrepreneurship & Global Integration” is focused on increasing foreign exchange earnings and thereby contributes more to the national economy.
KPIs of the EDB up to 2020 a) Increase exports to US$ 22 bn and export contribution to GDP to 20% by 2020 b) Create 100,000 Employment Opportunities [Quality Jobs] to educated/ skilled youth c) Facilitate 20 established exporters to increase export turnover with EDB Assistance d) Assist to develop 2,000 domestic entrepreneurs into Export businesses e) Introduce 4 - 5 new products in to Global Value Chains and Global Production Networks.
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Export Performance of Sri Lanka in 2017
Foreign Exchange Earnings/ Exports of Merchandise & Services US$ 13.8 Bn US$ 13.7 Bn US$ 15.1 Bn 16,000 14,000 12,000 10,000 8,000
US$ Mn US$ 6,000 4,000 2,000 0 2015 2016 2017
Merchandise Exports ICT/ BPM Exports Construction Financial services Logistics (Transport)
Sri Lanka’s foreign exchange earnings from exports of merchandise and services have grown by 10% during year 2017 reaching US$ 15 Billion milestone, compared to US$ 13.7 Billion in the year 2016, recording a substantial increase in exports in the year 2017. Merchandise export earnings have recorded US$ 11.4 Billion for the year 2017, compared to US$ 10.3 Billion last year. Estimates in the services exports of ICT/ BPM, Construction, Financial services and Logistics sectors show an overall growth of 8.1% to reach US$ 3.7 Billion during.
Furthermore, during the year 2017, over US$ 1billion monthly merchandize export earnings were recorded in the months of March (US$ 1,036 Mn), June (US$ 1,167Mn), September (US$ 1,012Mn) & December (US$ 1,009Mn) for the first time. The EDB expects a significant growth in merchandise & services exports to reach US$ 16.6 Billion for the year 2018.
Monthly Export Performance
1200 2017 2016 2015 1100
1000
900
Mn US$ 800
700
600 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Within merchandise exports, agricultural exports have grown by 17.61%, fisheries by a substantial 40.24% as a result of the lift in the fish ban imposed by the European Union on Sri Lanka, and industrial exports by 7.46%. Strong performance is evident in some of the ‘priority
135 sectors’ identified under the new National Export Strategy; notably, electronics and electrical exports growing by 16.9%, spices by 29%, and boat building by over 50%. However, food and beverages exports have declined by 9.14%.
Apparel sector which accounts for 44% of merchandize exports recorded a 3.06% growth during 2017 as new orders from the EU were secured due to the GSP+ benefit of 12% duty exemption. Meanwhile, year 2018 is expected to be a strong year for the apparel manufacturers. Tea & rubber finished products exports which accounts for 13% & 8%, have increased significantly by 20.78% and by 8.71% respectively.
By export destination, earnings from exports to the European Union have increased by 6.6%, and exports to USA have increased by 3.65%, compared to the year 2016. Exports to South Asian region have grown substantially, by 20.88%, to reach US$ 996 Million (compared to US$ 824 Million in year 2016). Especially, exports to India have performed strongly, growing by 25%, from US$ 551 Million in 2016 to US$ 689 Million in the year 2017. Meanwhile, exports to the UK have declined by 0.91%, largely due to the depreciation of the GBP and the consumer market uncertainty due to Brexit.
Merchandize Export Composition Export Destinations 2016 & 2017 Base Metal 2017 Products Footwear Others 1% 1% Seafood Non- 2% Metallic Chemical & Japan Diamonds, Mineral Plastic Gems & Prpoducts Products Oceania Jewellery 1% Other 1% 2017 2016 2% 9% African Boat Building CIS 3% Electrical & Textiles & Asean Electronic Apprel Componen 44% South Asia ts 3% Tea USA Food & 13% Beverages EU 3% Coconut Spices & 5% 0 1,000 2,000 3,000 4,000 Rubber & Essential US$ Mn Oils Rubber 4% Products 8%
PRESIDENTIAL EXPORT AWARDS
The 21st Presidential Export Awards Ceremony was held on 14 September 2017 under the patronage of His. Excellency, the President of Sri Lanka at the Bandaranaike Memorial International Conference Hall (BMICH), Colombo with the participation of several Cabinet Ministers & Deputy Ministers. The Presidential Export Awards is the highest form of recognition given to an exporter for his or her contribution towards the export effort of the country.
The selection of awards was made by an eminent panel of 7 members consisting of Senior Officials from Ministry of Development Strategies & International Trade, Department of Commerce and Trade Chambers viz Ceylon Chamber of Commerce, National Chamber of
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Exporters, National Chamber of Commerce of Sri Lanka & Federation of Chamber of Commerce & Industry of Sri Lanka and headed by a Retired Judge of the Supreme Court.
A total of 59 Awards consisting of 11 Overall (Special) Awards and 48 Sectorial Awards (14 Awards for Highest Foreign Exchange Earnings and 34 Awards for Highest Value Additions) were presented to exporters at this ceremony for their exceptional performance in the year 2016. It symbolizes the national recognition for their efforts towards development of exports of the country. The Award winners were presented a prestigious Trophy and a Certificate. The winners have the privilege to use the “Award Logo” as a marketing tool for 3 years.
Selections were based on multiple criteria giving an opportunity for all export enterprises both large and small to compete for an award. The selections of Overall (Special) Awards were made on the basis of the contribution made under various aspects that are essential for the development of the export sector. These aspects included increase in net foreign exchange earnings, diversification of export markets, value of Sri Lankan registered export brands, employment opportunities created, excellence in sustainability and setting up of industrial economic zones at regional level for export led supply. Contribution of SMEs for the export development drive was also recognized by awarding the Best Emerging Exporter Award. Further, the participation of women entrepreneurs in export business was recognized by presenting the Best Woman Exporter Award. In addition, Best Packaging Service Provider for export sector was also recognized.
Chairman & Founder of Dilmah Group delivered the keynote address elaborating the importance of branding of value added products. H.E. The President of Sri Lanka and Hon. Minister of Development Strategies and International Trade and Hon. State Minister of International Trade addressed the gathering which comprised representatives from the Diplomatic Corps, State Officials, Trade Chambers, Product Associations and private sector enterprises.
Special Awards were awarded by the President of the Democratic Socialist Republic of Sri Lanka and sectorial awards were awarded by the relevant Ministers.
Winners of Overall (Special) Awards
Description of Award Winner 1 Best Emerging Exporter Wild Lanka Organics 2 Highest Contributor from the Regions to the Export Supply HJS Condiments Limited Chain 3 Best Woman Exporter of the Year Trendywear (Pvt) Ltd 4 Highest Employment Provider in the Export Industry Brandix Apparel Limited 5 Excellence in Sustainable Development Brandix Apparel Limited 6 Best Packaging Service Provider to the Export Sector Star Packaging (Pvt) Ltd 7 Best Multinational Company (MNC) Engaged in Exports Camso Loadstar (Pvt) Ltd 8 The Most Market Diversified Exporter Camso Loadstar (Pvt) Ltd
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9 Best Sri Lankan Export Brand Akbar Brothers (Pvt) Ltd 10 Highest Net Foreign Exchange Earner Brandix Apparel Limited 11 Sri Lankan Exporter of the Year Brandix Apparel Limited
01. POLICY INITIATIVES
National Export Strategy (NES) for Sri Lanka
The major policy level activity undertaken by the EDB during the year 2017 was the formulation of the National Export Strategy with assistance from the International Trade Center, Geneva. The Government of Sri Lanka through the economic policy statement of the Hon. Prime Minister, made in Parliament on October 27, 2016, highlighted that new strategies are required to commence necessary reforms to introduce, increase and diversify innovation in exports development, aimed at increasing revenue, creating employment and reducing Sri Lanka’s trade deficit.
The National Export Strategy (NES) for Sri Lanka is being designed by the Ministry of Development Strategies & International Trade, Sri Lanka Export Development Board (EDB) and relevant Public and Private Institutions and Chambers. The Hon. State Minister of International Trade is the Navigator of the NES process. In addition, a Core Team comprising senior public and private sector officials and an ITC National Consultant have been appointed to advise and give direction to the process.
National, regional and sector specific public and private stakeholders in Sri Lanka were consulted to confirm trade diagnostics, value chain performance, market orientations, strategic issues and orientations. The NES design process will build on and collaborate with the economic development initiatives which are already underway by the relevant organizations in order to create synergies and facilitate implementation of priorities.
The First National Symposium for Sri Lanka’s National Export Strategy (NES) was held with the participation over 150 public and private sector representatives to plan the next export growth cycle of the country. Technical Assistance in developing the NES is being extended by the International Trade Centre (ITC) as part of their ‘EU-Sri Lanka Trade Related Assistance’ project funded by the European Union.
During the 1st NES consultation (April 2017), a strategic vision for Sri Lanka’s export growth was agreed upon “Sri Lanka – An Export Hub driven by Innovation and Investment”. The
138 attainment of this vision is supported by four key strategic objectives guiding the entire NES design process.
To have a business-enabling, predictable and transparent policy and regulatory framework that supports exports. To drive export diversification through innovation and the strengthening of emerging export sectors. To strengthen Sri Lankan exporters’ market-entry and compliance capacities. To become an efficient trade and logistics hub to facilitate exports.
The NES will assist Sri Lanka’s economic vision of strengthening the competitiveness of the country’s private sector to accomplish inclusive and sustainable growth. The consultative process will lead public sector institutions and private sector enterprises to design a common and agreed plan for growing and diversifying Sri Lanka’s export products and reaching new target destinations. The NES will be designed to achieve a prioritized five-year rapid action- oriented framework to achieve the desired export targets. It will concentrate on a number of priority sectors and key trade support functions, selected based on a quantitative and qualitative analysis of Sri Lanka’s export competitiveness, to ensure a prioritized focus. The selected priority sectors will contribute to a renewed cycle of accelerated export development. The NES will serve the planning instrument to coordinate export development activities of the relevant state and private sector agencies.
Trade Support Functions
Through an inclusive and consultative process, the following trade support functions (TSF) were shortlisted to achieve the NES vision and strategic objectives and improve the national business environment. These trade support functions will target key horizontal dimensions of trade that affect the overall competitiveness of Sri Lanka’s export sector, which are:
Trade Information and Promotion National Quality Infrastructure Innovation and R&D Logistics
Following the discussion, the 2nd Consultative Meetings were held from 12th July to 20th July 2017. The main objective of the meeting was to define roadmaps for expanding exports and analyse performance of value chains for the NES focus sectors, market orientations, challenges and opportunities. The TSF groups identified the main challenges in the provision of quality and affordable trade support services to Sri Lanka Exporters. The Sector Meeting followed the consultations from 8th August to 12th September 2017.
Subsequently, the Regional Consultations as a part of the design of Sri Lanka’s National Export Strategy (NES) took place in Kandy, Jaffna and Galle from the 18th – 22nd September 2017. These regional consultations were focused on Central, Northern and Southern Provinces where stakeholders around the country participated at these consultations. Central Province focused on the Spices & Concentrates and Wellness Tourism sectors. A special session also took place on the trade information function to discuss options to improve access of SMEs to relevant and up
139 to date market information. Employment creation as a result of NES focus on these sectors will not be only in the priority sectors, but also in sectors that are ancillary to them. Taking into consideration concerns of local stakeholders in the provinces were important to ensure that the National Export Strategy is truly national in its focus.
Input from provincial stakeholders is important to have a National Export Strategy that takes into account local challenges and opportunities. This will assist in creating vital business linkages between local entrepreneurs & businesses with their counterparts in other provinces of the Island and counterparts overseas. Currently, the stakeholders are in the process of streamlining the Plan of Actions and based on the NES vision and strategic objectives, a list of high priority export development interventions are included in the 2018 National Budget to be implemented from 2018.
Harvard Launch Pad for Sri Lanka - Problem Driven Iterative Adaptation Project
EDB, in collaboration with the Harvard Center for International Development, has embarked on a project to identify and rapidly catalyze new or emerging export sectors, enlarge and diversify Sri Lanka’s export basket, to analyze potential export sectors, identify blockages and problems and then rapidly resolve these to enable new exports to develop.
Boat & Ship Building, Electronics [Printed Circuit Boards (PCB)], Electrical [Insulated Wires] and Automobile Components [Specially Vulcanized Rubber Articles] were identified as an initiative to analyze export sectors which have potential to expand. Common blockages/ problems for the selected product sectors were also identified, and organized two stakeholder meetings with the participation of relevant public & private representatives to resolve two selected common issues [testing & labor, enabling export growth in order to diversify the existing export basket.
An awareness seminar was organized on testing facilities available in Sri Lanka on 3rd April 2017 at the EDB Auditorium as a result of a stakeholder meeting on certification issues for selected export product sectors specially Rubber based products & Electrical & Electronic products.
Further, an Open Day for the exporters has been organized, who showed willingness at the seminar to visit the Industrial Technology Institute (ITI) laboratory to see the facilities available and facilitated 3 export companies to participate the Job Fair conducted by the Ministry of Development Strategies and International Trade in Kandy.
A budget proposal was submitted on "Upgrading Testing Facilities available in Sri Lanka especially to develop and promote emerging sectors such as Electrical and Electronic Sector, Rubber and Rubber based products and other manufacturing sectors to diversify the export basket " to the National Budget for 2018.
In the 2nd phase of PDIA project, EDB team has identified 3 potential sectors such as Internet of Things (IoT), Electrical Panel Boards (HS 8537) & Automobile Components [HS. 8708]. Selected
140 companies were interviewed and prioritized common issues faced by them. Prepared pitch books for selected products and shared among foreign missions.
02. EXPORT ORIENTED ENTERPRISE DEVELOPMENT
National Programme to establish 2000 new exporters - Be an # EXPORT CHAMPION
A National Programme to nurture 2000 new entrepreneurs to become exporters during the period 2017-2022 was launched in 2017. The EDB under the auspices of the Ministry of Development Strategies and International Trade is implementing this programme. The main objective of this programme is to encourage domestic enterprises to invest in export industries to achieve the export target of US $ 27 billion in 2022. It is essential to identify entrepreneurs who are suitable and interested in joining the programme and analyze the needs of entrepreneurs to develop as an exporter with the assistance of public and private sector stakeholders.
The first programme was held in Jaffna on 23rd March 2017 at the District Secretariat Auditorium in Jaffna with the participation of over 250 Entrepreneurs. Based on the availability of human & physical resources in the province, the EDB has identified processed food, life style, fisheries & ICT/BPM as most potential sectors in the Northern Province for development for export. An Export Products exhibition and a Business Clinic were also held parallel to the above seminar. Around 143 entrepreneurs participated at the Business Clinic and around 100 issues were resolved during the Business Clinic. Information regarding entrepreneurs were evaluated through the Need Analysis Form and categorized they were then divided into three main categories for further development; s export ready, export potential and micro & small. These Entrepreneurs were also assisted to participate at seminars and to obtain product test certificates from the relevant institutes. Further, opportunities were given 02 entrepreneurs to participate to the 1st India Commonwealth SME Trade Summit in New Delhi to get an exposure to export markets. In addition, two export ready entrepreneurs were assisted to participate at the technical exposure and capacity building programme coinciding with “Thaifex World of Food Asia -2017 exhibition in Thailand. 08 SMEs identified from Northern Province were also given an opportunity to participate and display their products at the 9th Jaffna International Trade Fair held in Jaffna on January 2018.
The second programme was held in Kandy on 28th April 2017 at the Central Provincial Council Complex, Pallekele with over 250 Entrepreneurs. Under this programme 25 export ready companies were selected to develop as exporters in 2017. A group of 106 export potential companies were selected to be developed within a 3 year period. Strategies are being
141 formulated according to the need analysis conducted by the EDB. Opportunities were provided to 02 export ready entrepreneurs to participate at the 1st India Commonwealth SME Trade Summit in New Delhi. Further, an awareness seminar was conducted on benefits available for regional exporters under the GSP+ scheme in Kandy. Two companies from Central Province have already started exporting.
In addition, a number of awareness seminars were conducted on Export Procedure, Packaging and Labeling for the identified entrepreneurs at a regional level. Five SMEs identified under the National Programme to Establish 2000 New Exporters were also assisted by way of providing airfare and stall space to participate at the 14th China International Small and Medium Enterprises Fair (CISMEF) 2017. Four entrepreneurs are scheduled to visit Gulf Food & Beverage Exhibition in Dubai, UAE to be held from 18-22 February 2018.
EDB Assistance
Conducting Interviews with the Registered Entrepreneurs for Need Analysis Sharing of Model Project Reports/Feasibility Studies Facilitating for Bank Financing (if required) Facilitating for Technology Transfer/Sourcing of Machinery/Training etc. Facilitating for Product Development and Market Development Activities
Women Entrepreneurs
Women Entrepreneurs Programme was initiated and is being implemented to encourage inclusion of women entrepreneurs into export businesses. Database of Women Entrepreneurs with 350 profiles has already been established. 100 women entrepreneurs participated at a capacity development program held in Kilinochchi.
Organized a Sri Lanka pavilion at the 6th Edition of the Global Economic Summit 2017, from 27th - 29th March 2017 at World Trade Centre, Mumbai, India with the participation of 3 women entrepreneurs. This was the first exposure programme for Sri Lankan Women Entrepreneurs, which provided the opportunity to promote their products and services to the International Markets. There were around 100 inquiries and around US$ 700 worth of on the spot sales.
One Village One Product
Facilitated to set up farmer clusters and linked with direct exporters under One Village One Product (OVOP) programme for selected value added products in North Western Province. Approx. 800 acres through farmer clusters are being cultivated for selected products (Pepper, Cinnamon, Cardamom, Curry leaves, Drumsticks, Passion fruits, Cut foliage, Ginger, Pineapple), etc. One hundred and seventy five acres were identified in Central Province for Cloves and Pepper and 80 acres were identified in Southern Province for Passion fruits. Selection of farmers is completed and arrangements have been made to provide planting materials and facilities for bank financing.
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03. LINKING WITH GLOBAL VALUE CHAINS / GLOBAL PRODUCTION SHARING NETWORKS
Thaifex 2017 from 31st May to 4th June in Bangkok, Thailand
Organized an exposure programme for eight SME export ready companies in Thailand. During the programme, participants were able to visit THAIFEX exhibition 2017, had one day Training at Thai Packaging Centre, visited value added rice products factory, dehydrated Tomato manufacturing Factory, Palmyra based food & beverage products manufacturing factory and also were able to visit Good Market in Thailand.
Participants obtained knowledge on new technology used in the agriculture sector in Thailand. The yield per unit area in Thailand has been increased due to appropriate technologies such as irrigation, use of high quality seed and the application of appropriate agronomic techniques used in the agriculture sector. Some participants gained knowledge to improve their production facility and some of them encouraged to start new business line based on the knowledge they gained through this exposure. Two participants have entered into a joint venture entity.
Through the Thaifex exhibition, the Sri Lankan delegation were able to observe product/market trends such as franchise, gluten free, halal, health & functional food, ingredients, kosher, organic, private label, vegan and vegetarian displayed at the exhibition. They were also able to observe different food packaging systems and obtained practical experience on package testing for quality assurance, advanced food drying processing and quality control techniques applied at the industry level in Thailand.
Awareness Programme for Ornamental Fish Breeders & Exporters
The consultant identified through INFOFISH, Malaysia, conducted an awareness programme from 27-30 November 2017 in Rambodagalle Ornamental Fish Breeding Training Centre in collaboration with NAQDA, which covered the areas of improved packing practices for ornamental fish transportation, induced breeding on Koi Carp, tetras, catfish, flowerhorn etc., reduce mortality with high packing density etc., 80 participants benefitted from the programme.
Promotional Programme for Automobile Component Manufactures from 22nd to 25th November in Bangkok, Thailand
With the objective of seeking opportunities to supply automobile components to the automobile companies based in Thailand and to explore Joint Venture’s (JV) opportunities to establish manufacturing facilities in Sri Lanka, EDB with the assistance of Sri Lankan Embassy in Thailand has organized the first ever promotional programme for the Automobile Component Manufacturing sector in Thailand for nine Sri Lankan companies. The programme consisted of business meetings, visits to Metalex exhibition, visits to factories manufacturing Automobile/ Automobile components and meetings with relevant associations and organizations.
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The visit to Metalex exhibition had created an opportunity for the Sri Lankan manufacturers to explore business opportunities for metalworking related to automobile component manufacturing. Also they were able to have meetings with the members of The Federation of Thai Industries, Thai Automotive Industry Association, Thai Auto Parts Manufactures Association at Bangkok International Trade & Exhibition Centre and Board of Investment in Thai to explore possibilities to supply automobile components to the automobile companies based in Thailand and to explore JV opportunities to establish manufacturing facilities in Sri Lanka. Factory visits were organized to Summit Auto Body Industry, Summit Auto Tech Industry, Thai Rung Union Car Public Co. Ltd. and Mercedes Benz Assembling Plant etc. Sri Lankan companies had the opportunity to get an understanding of the Thailand Automobile/ Automobile component manufacturing industry. The delegation presented their product portfolios to management of the Summit group and create an effective impression on their minds and were able to obtain positive inquiries from them. Delegation also visited Poonsup Market, a center with over 1,000 stores for motorcycle parts, car accessories, car audio and tools etc. The companies were able to establish contact with the stores owners of this market to explore supplying Automobile component manufactured in Sri Lanka to the Thai after sales market. The visit to the Eastern Seaboard Industrial State helped the delegation to obtain first-hand knowledge on world class industrial estate. It offers a total solution package that includes customized site selection, world class design and high quality construction to optimize the long term logistical costs of local and international customers.
Systems Development Programme for Rubber Sector
Under Systems Development Programme for quality certification for Rubber & Rubber based products sector, 2 training programmes on capacity building for ISO 14001 and 50001 were completed and one day Internal Auditor Training programmes for ISO 14001 & 50001was completed. Six companies obtained ISO 14001 and 50001 certificate.
Shoe Engineering Programme for Footwear Manufacturers
Organized the first stage of Shoe Engineering Programme in January 2017 for selected 6 footwear manufacturers/exporters to enhance the product quality by obtaining the services of an international expert company. During the stage I, the experts provided knowhow on shoe engineering with suggestions to improve/upgrade Products and Production Process. The Stage II of the programme was implemented in September to provide further advice to develop a technically specified and improved product line to suit the international market and advise the participants in solving problems which they may encounter in implementing suggested modifications to meet the international standards in their products.
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Technology Upgradation Programme from 26th to 29th September 2017 in China (CISMA)
10 participants from 7 companies in apparel sector participated at the programme to enhance their knowledge on the new technology available in the market to enhance productivity. The participants visited the fair and are negotiating to purchase new machinery available at the show which will enhance the performance of their companies.
Exporters own efforts under Product Development Activities Scheme
With the objective of motivating export industries to upgrade technology to enhance the cost efficiency and productivity, encouraging value addition to diversify the export product mix and capture higher value from exports, a new scheme was introduced to encourage manufacturers/producers to upgrade quality/sustainability of the products and production process.
EDB is currently working with five apparel companies, two footwear companies, two electronic companies and one light engineering company to upgrade their production facilities and to introduce energy efficient production.
04. CREATE MARKET ACCESS GLOBALLY FOR SRI LANKAN PRODUCTS & SERVICES
IFEAT Conference from 24-28 September 2017 in Greece
Organized Sri Lanka participation of 02 companies at the conference. Participatory companies were able to receive US$. 242,000 worth of confirmed orders and initiate business negotiations with new buyers from UK, Japan, Germany, France and USA.
Ornamental International Fish Trade & Technical Conference from 8th to 10th February 2017 in Colombo
Organized 2nd Ornamental International Fish Trade & Technical Conference in collaboration with INFOFISH, Malaysia in Colombo attended by 130 local participants and 26 foreign participants including speakers to promote the country brand in international market. Organized a field visit to Rambodagalla Fish Breeding & Training Centre. 16 renowned international speakers delivered peaches at the conference, covering all the important aspects of the ornamental fish industry including trade and technology challenges, development & innovations inn breeding, rearing and feed technology: both in marine and freshwater ornamental fish sector. Some of the pressing global issues discussed included current and pending rules and regulations, environmental issues, certification, prevention and control of diseases.
GULFOOD from 26th February to 2nd March 2017 in Dubai, UAE
Organized Sri Lanka’s participation at GULFOOD Exhibition in Dubai from 26th February to 2nd March 2017 with the participation of 23 exhibitors and 2 observers from the food and beverage sector. Exhibiters learnt new technology displayed at the event including packaging & designs.
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Distributors identified in Russia & Ghana. Introduced Sri Lanka Red Rice to supermarket chains.US$ 24.7 Mn value of orders executed during last 6 months and US$ 7.5 Mn value of orders under negotiations.
FOODEX from 07th to 10th March 2017 in Chiba, Japan
The EDB in collaboration with the Sri Lanka Embassy in Japan organized Sri Lanka’s participation at FOODEX 2017 exhibition held at Makuhari Messe, Japan from 07th to 10th March 2017 with the participation of 6 virgin coconut oil manufacturer exporters. This was mainly focused to regain the lost Japanese market for Sri Lankan VCO and to convince buyers for genuine VCO from Sri Lanka. 16 orders are under negotiations.
FACET 2017
With a view to building the 2nd tier of gems & jewellery exporters for the industry, a SME Pavilion was organized at FACETS Sri Lanka 2017. 15 jewellery manufacterers and 8 jewellery designers displayed products at the show. Made Rs. 2.0 Mn of spot sales and Rs. 0.6Mn worth of confirmed orders received. Rs. 1.5 Mn worth of business under negation with the USA.
Footwear & Leather Fair from 3rd to 5th February 2017 in Colombo
The EDB provided financial assistance of Rs. 2.0 Mn towards the 9th Edition of the Footwear & Leather Fair. This was jointly organized by the Sri Lanka Footwear & Leather Products Manufacturers Association (SLFLPMA), EDB, Ministry of Industry & Commerce and Industrial Development Board. One hundred and one (101) Sri Lankan companies and 35 Indian participants [231 stalls] exhibited at the exhibition and organized a designer pavilion. Received Rs. 2.5Mn worth of confirmed orders and Rs.1 .0 Mn worth of orders were under negotiation.
Inward Trade Delegations visited Sri Lanka
Canada - Canada Sri Lanka Business Forum followed by a B2B meeting program on 13th March 2017. Around 75 Sri Lankan companies held B2B meetings with 28 Canadian businessmen. Canada Sri Lanka business convention has created awareness among the Canadian business community in Sri Lankan's environment for trade and investment. Canadian businessmen expressed his willingness to invest in a cooling plant for fisheries & fruits and vegetables and a scrap metal processing plant under BOI.
Sweden - IKEA business delegation visited Sri Lanka on 20th February, in order to explore trade opportunities between IKEA and Sri Lanka. IKEA had a B2B meeting with 29 companies from rubber sector, toys, furniture, coir products and handicraft products. Two companies already started business negotiations with the IKEA. IKEA will visit factories which they have initiated business discussions and rubber plantations.
Australia - Organized a B2B meeting programme with the visited M/s. Pacific Commodities Group, Australia on 29th March 2017 for the Sri Lankan virgin coconut oil manufacturing companies. The Australian company has selected 2 companies to develop business.
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Seychelles - Organized a B2B meeting programme with the visited Seychelles Trading Company for the Sri Lankan fresh fruits and vegetables companies from 31st January to 3rd Feb. 2017. Also organized factory visits for the buyer delegation to selected 4 Sri Lankan companies. The Seychelles Trading Company has selected four Sri Lankan companies for further negotiations. Samples were sent to the Seychelles Trading Companies.
Poland - Organized a B2B meeting programme with Robust Hagrid of Poland with Sri Lankan companies in floriculture, spa products and coir products sectors on 21st February 2017. Assisted 2 exporters to enter the polish market for spa products.
Oman - B2B meeting programme held from 15th-18th May 2017 at EDB. Five Omani companies and 45 Sri Lankan companies participated. 17 orders are under negotiation with 8 Sri Lankan Companies. Two companies already started business with Oman buyers.
Exporters own efforts under Market Development Assistance Scheme
EDB restructured the Market Development scheme enabling exporters for Market Research /Surveys, Product improvement/Adaptation/Counter-samples & Export Packaging, Trade Fairs /Exhibitions including trade displays and Promotions Overseas, Marketing/B2B Missions etc. Up to now 24 companies have been assisted.
05. MARKET DEVELOPMENT STRATEGY FOR CHINA UNDER PROPOSED FTA
China ASEAN Expo 2017 from 12th September to 15th September in Nanning, China
Participation of 30 Sri Lankan companies from Gem & Jewelry, Tea, Rubber products and Handicrafts sector was organized at this event. Prior to the exhibition, to promote Trade, Tourism and Investment, one day ‘‘Sri Lanka Business Forum’’ was organized. 300 entrepreneurs from China main land participated at the event. It created awareness of Ceylon Tea, Gem, Recycle Paper, Coconut Kernel products & Batik among the Chinese visitors. 224 potential trade inquiries & US$ 60,000 worth of confirmed orders received. US$ 80,000 orders are under negotiation. Further US$ 50,000 worth of onsite sales was recorded.
China International Small and Medium Enterprises Fair from 10th to 13th October in Guangzhou, China
Participation of 25 SME companies engaged in producing value added tea, footwear, apparel, Spices, coconut based products, processed foods, gem & jewelry and handloom products at the 14th China International Small and Medium Enterprises Fair resulted greater opportunities to link with international buyers and received around 10,000 business inquiries. Two companies were successful in their negotiations to appoint agents to promote spices & Coir products in China and in their negotiations for joint ventures. Orders were under for Palmyra products, velvet paintings, blue sapphires, herbal tea, black tea etc. New Palmyra products coupled with trends and innovations were showcased. As a result of the participation Made US $ 13,100 value of spot sales and received US $ 25,000 worth of confirmed orders.
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China Belt & Road Expo 2017 from 8th to 10th December 2017 in Shanghai, China
Organized participation 7 Sri Lankan companies from Gem & Jewelry, Tea, Rubber products and Handicrafts sector at the event. In addition, 33 B2B meetings were arranged. 27,773 persons visited the country pavilion and over US$ 30,000 confirmed orders were received. Further US$ 2,006,500 worth of orders are under negotiation and two positive inquiries were also received. US$ 28,800 worth of Spot Sales were recorded during the fair. Two Joint Ventures are under negotiation.
06. EUROPEAN UNION THROUGH GSP+ CONCESSIONS
Seafood Expo Global 2017 from 25th to 27th April 2017 in Brussels, Belgium
After removal of the Illegal Unreported and Unregulated (IUU) fish ban on Sri Lankan fishery products in EU, organized participation of 08 Sri Lankan companies at the exhibition. In parallel to that, a Press Conference was held and announced the Fishery Improvement Project for Sri Lankan Tuna & billfish fisheries. US$ 400,000/- worth of confirmed orders were executed and US$ 458,000/- orders are under negotiations.
Anuga 2017 from 7th to 11th October 2017 in Cologne, Germany
Organized participation of 20 Sri Lankan companies including 06 new companies at the fair. US$ 1,140,000.00 worth of orders are confirmed and under negotiation. In addition, 257 number of positive inquiries were received. Meanwhile, participating companies were also able to find potential distributors, new market opportunities, introduce new products and initiate JVs. Furthermore, "Cocoferc" brand was launched by one company.
Apparel Sourcing Paris in France from 18th to 21st September in Paris, France
With the restoration of GSP+, retailers such as Debenhams, UK and Zara, Spain have shown a keen interest to source from Sri Lanka. France being a leader in the fashion industry is considered as an important market for Sri Lanka to strengthen its presence in the EU. Sri Lanka’s participation at the Apparel Sourcing Paris, France in September 2017 with 08 apparel manufacturers has resulted several positive outcomes. Negotiations are underway for an order of US$ 1.4 Mn for ladies tops to Spain and a Dutch buyer has already visited Sri Lanka to look at factories and first orders will go in to production in January 2018 worth of US $ 70,000/- and helping to market the brand “Aditi”.
A “Sri Lanka Catwalk” was organized to display products of the participating companies at the Apparel Sourcing Paris including designer clothing made out of Handloom & Batik to give a true Sri Lankan flavor. Products of Sri Lankan designers, Ceylon Active wear (Lovi Sarong), Buddhi Batiks and Meraki Designs received greater attention. A Sri Lanka Catwalk show was running on the ramp for the first time.
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Technical Training and Exposure Programme for the Rubber Products Sector from 13th to 16th June 2017 in United Kingdom
The EDB, with the assistance of the Sri Lanka High Commission in UK, organized a technical training and exposure programme for the Rubber Products Sector, at Tun Abdul Razake Research Center (TARRC), UK from 13th to 16th June 2017 for 11 representatives (technically qualified) from leading companies manufacturing and exporting rubber products including an officer from the Rubber Research Institute in Sri Lanka. Participants were able to learn Thermoplastic Elastomers / Vulcanizates, Nano Technology Applications, Advanced tyre testing methods, Association of materials, reverse Engineering and Engineering Design including mathematical modeling.
B2B Programme and networking meetings for ICT/BPM sector from 21st-24th Nov. in U.K.
In order to increase exports to UK market the EDB organized the participation at B2B and Networking event organized by GSA. 10 Sri Lanka ICT companies participated at the event and the companies were able to create new business linkages (Approximately 12) with UK companies and discussions are being made to sign contracts.
07. MARKET ACCESS TO ASEAN (INCLUDING JAPAN THROUGH FTA & SOUTH ASIA)
Foodex 2017 from 7th to 10th March in Japan
In order create awareness among the Japanese importers on reassuring the supply of high quality Virgin Coconut Oil (VCO) and regaining the loss market, EDB organized the participation of six companies at Foodex 2017. Conducted a promotional seminar at the exhibition premises to promote Virgin Coconut Oil which was attended by 35 foreigners. Received confirmed orders at a value of US$ 261,883 and orders under negotiation were US$ 71,648/- received from buyers in Japan, China, Australia, Malaysia and Turkey.
The IFEX/ Gardex from 11th to 13th October 2017 in Tokyo, Japan
Organized the participation of 7 Sri Lankan companies at the fair. US$ 94,614 worth of orders were confirmed and US$ 55,000 worth of orders are under negotiations. In addition, 40 positive inquires received. Participation at the event was helpful in identifying Rice pad as a new product- with a high demand in Japanese market. Participants were able to learn marketing strategies used by other competitor countries. A Meeting was conducted with Japan Agriculture (JA) which is farmer organization, at the exhibition venue to discuss the status of sample products delivered to them by SL companies in year 2016. As a result, JA revisited Sri Lanka
149 and they have selected two companies for coco peat products. At the meeting JA mentioned that their major issue is weed contamination in the samples. EDB introduced a one company exporting products with RHP certification (free of weed contamination). JA purchased 40ft container worth of US$ 2,500 coco peat from one company in December as the 1st trial quantity.
The IHK from 25th to 30th April 2017 in South Korea
In order to increase floriculture and floriculture related coir exports an strengthen the connections with existing buyers, facilitated one floriculture company and two coco peat companies to participate at the trade exhibition. One company had firsthand experience on Korean technology through nursery visits arranged by the Korean fair authority and had an opportunity to visit the flower auction center. The company started to propagate varieties demanded by the Korean market through the experience obtained at the fair. One company has executed orders worth US$ 8,274 for Coir Logs. Product development programme is being carried out by another company targeting a request made by a Korean buyer. Value of US$ 12,500/per month orders are under negotiation for coco peat products.
08. MARKET ACCESS CREATED THROUGH FTAS AND ECONOMIC CO-OPERATION AGREEMENTS
India Rubber Expo 2017 from 19th to 20th January 2017 in Chennai, India
In order to enhance visibility of Sri Lankan rubber products in the Indian market and explore opportunities under FTA organized Sri Lanka Country Pavilion at India Rubber Expo 2017. 6 companies exhibited at the Sri Lankan Pavilion. Participants received 250-300 positive inquiries. One company found a new distributor for Pneumatic tyres in Chennai and they also promoted their tyres in Chennai under a new brand name "ORION". Another company found a new supplier from Chennai for rubber producing oil and chemicals. US$ 118,230 worth of confirmed orders were received by the participants and US$ 15,000 worth of orders are under negotiation.
Japan IT Week from 10th to12th May 2017 in Tokyo, Japan
Participation at the Japan IT Week with 8 leading ICT companies at the Tokyo Big Sight generated successful results. One company signed two contracts and working with one of that worth of US$ 25,000. Another participating company is having business around US$ 200,000 per month from 2 clients from Japan. Further, participating companies are following up with positive contracts for Internet of Things (IoT) products, Enterprise Resource Planning (ERP) and financial solutions.
EDB organized a B2B matchmaking program for five ICT companies with the assistance of a Japanese consulting firm to exploit the potential of Japanese ICT market. One company opened a subsidiary (Invested US$ 50,000) in Global IT park in Japan and signed two contracts while another four are in the pipeline. Business worth of JPY 735,000 has been created up to now.
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09. BRANDING & POSITIONING SRI LANKAN PRODUCTS & SERVICES GLOBALLY
GITEX Technology Week from 8th to 12th October 2017 in Dubai
With the objective of increasing exports to Middle East and Africa, organized participation of 8 Sri Lanka companies at the country pavilion and 4 start-ups at the start-up movement area. Participants were able to receive positive inquiries for JVs from Saudi Arabia, UAE, Canada, UK, Japan, India, Palestine, Australia and Oman. In addition, US$1,088,000 worth of confirmed orders/orders are under negotiations and more than 100 business leads generated during the event.
PRODEXPO 2017 from 6th to 10th February 2017 in Moscow, Russia
EDB organized the Sri Lanka’s participation at the PRODEXPO International Food & Beverages exhibition with the participation of 10 Sri Lankan companies. 212 number of contacts made at the fair. During the year 2017, 10 participant exported US$ 3.1 Mn value of products to Russia.
The SIAL 2017 from 30th April to 4th May 2017 in Canada
EDB has entered in to an agreement with Trade Facilitation Office (TFO) Canada for a period of 4 years from 2015 to 2018, SIAL Canada 2017 B2B & Market Orientation Program was organized as part of the activity of “Implementation of Export Development Activities in Canada” in collaboration with the TFO Canada. EDB organized the participation of 10 Sri Lankan companies at the event. Participants were able to gain knowledge on upgrading product qualities, packaging, labeling and 02 Companies have made changes in the process according to the knowledge gained. As a result of the participation, 170 business contacts made with potential buyers in Canada. In parallel to the event participants had opportunity to visit retail markets and to attend an awareness seminar and B2B meetings organized by the TFO Canada. US$ 1.5Mn worth of new exports are expected to execute in next 12 months.US$ 150,000 worth of confirmed orders received and US$ 300,000 orders are under negotiations.
Expo Pakistan in Karachi from 7th to 9th November at Karachi Expo Centre, Pakistan
The EDB in association with the Sri Lanka Consulate General, Karachi organized a group of exporters to exhibit at 10th Expo Pakistan from. The delegation comprised 14 exporters from sectors such as chemicals (of enzymes and auxiliary chemicals, high build epoxy floor coatings) value added charcoal products (of face masks, city mask, industrial regular, air purifier), herbal cosmetics, beauty products, furniture, polished granite marble slabs, rubber products of therapeutic resistance products, porcelain and table ware, Ceylon Tea, palmyrah handicrafts, coconut based products and batik garments.
The exhibition attracted 701 foreign buyers/importers from 70 countries. Sri Lankan companies had the opportunity to meet buyers from Pakistan as well as countries such as Kuwait, Malaysia, Iran, Korea, USA, UK, Fiji Island, Russia, Gambia, Senegal, Qatar, and China. A Sri Lanka Business Forum and B2B networking session was also held concurrently with the exhibition which was attended by a large number of traders, importers, buyers, Chairmen and
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Presidents of leading organizations based in Karachi. Participants received positive inquiries from buyers and received US$ 106,386 worth of confirmed orders and US$ 656,166 worth of orders are under negotiation. Negotiations for a few joint ventures have also taken place during the exhibition.
Ministerial Delegations
Sweden - Organized a Ministerial Delegation to Sweden from 16th - 19th January 2017 and facilitated business meetings with H&M, IKEA, We effect and SIDA in Sweden. Follow-ups are done with the above organizations in Sweden. IKEA, We effect visited Sri Lanka as a follow up.
Bangkok, Thailand - Organized a Ministerial delegation to Thailand from 16th – 18th February 2017. On behalf of the EDB, Chairperson & CE accompanied the Hon. Minister of Development Strategies & International Trade. Five EDB proposals have been submitted to the Thailand government for trade development and technical assistance. As a result, CEO Rachana Group visited Sri Lanka to seek the possibility of investment which is being followed up by BOI.
Cologne, Germany, Paris, France & Milan, Italy - Bilateral meetings were held for promoting Sri Lankan products. All these events carried out in EU gave Sri Lanka the opportunity to promote the quality products as well as create awareness in the EU, especially among French buyers/importers on the duty benefit of GSP+ facility that was received after lapse of a number of years. It created the opportunity to refresh the minds of buyers on the competitiveness, quality of Sri Lankan products influencing their sourcing decisions.
WEDF 2017 - Hon. Minister of Development Strategy and International Trade, Chairperson & CE of EDB, Director Market Development and 13 Sri Lankan companies participated at the programme. Sri Lanka country focus seminar also held followed by B2B meetings. 40 B2B meetings were held with Sri Lankan companies. As a follow up, arrangements are being made to obtain the technical co- operation from the Secretariat of African Caribbean and Pacific (ACP) Group of States for the areas of technical co-operation to boost Cocoa growing in Sri Lanka especially with an out grower system, The promotion of FMCGs in the markets of Kenya and Ghana and Promotion of spices in the Caribbean countries especially in value added form.
10. E- COMMERCE & IT SERVICES
EDB website and E – Market Place
The EDB e-MARKETPLACE is the pioneering trade portal introduced by the state in 2003 to promote and Trade Sri Lankan export products & services online. It is a great platform for B2B matchmaking and it is also promoted internationally as the National Gateway of Exports. This venture brings together in one place suppliers, buyers, shippers, logistics and finance together
152 with market and product information. The system is empowered with highly secured software that enables online purchase and is open to buyers from anywhere in the world who can connect a computer to the Internet. The benefit of reaching such a wide audience could be enormous. Further, 26 on-line transactions to Pakistan, Australia, Saudi Arabia, Canada, United Kingdom, Philippines, United States, Japan, Kuwait, Switzerland, France, Saudi Arabia, China, France, United Arab Emirates, Poland, Austria, Turkey Total value - US$ 3776.43, 843 product inquiries were received by the companies registered in the e-Market place. An awareness Seminar on Digital Doors to trade for Sri Lankan Exporters and SMEs was held on 29th August 2017 at EDB. 120 participants participated. Published 92 articles in the EDB blog & 300 post published in Face book Fan page.
11. TRADE FACILITATION & TRADE INFORMATION AND KNOWLEDGE SHARING
Exporters Forum
With the objective of providing a platform for the exporters representing a cross-section of industries to interact with relevant Government institutions and seek responses to their trade issues, the EDB in collaboration with the Ministry of Development Strategies and International Trade 11th & 12th Exporters' Forums were held on 18th July and 21st November respectively.
Representatives from the government institutions and the private sector were present at the forum and the 22 issues ranging from export related operational to policy matters were taken up and discussed at the forums.
Submitted a paper on issues that impact exporters to the Cabinet Committee on Economic Management [CCEM]. As a result, a meeting was organized with the advisor to the Ministry of National Policy & Planning & Economic Affairs to resolve fiscal issues confronted by exporters on 28th March 2017 at the Ministry with the participation of Exporters of tea, rubber, coconut, apparel, fisheries & IT sectors. Six follow up meetings were conducted and facilitated to resolve fiscal issues.
Training & Awareness Programmes
Conducted 03 Certificate Courses on export & import procedures with totaling 162 participants. Also the 83rd and 84th courses on Operational Aspects on International Trade were conducted with 80 participants.
Publications
Four issues of Business Lanka Magazine 2017 were published. The issues focused on the developments and trends in the International Trade.
The Export Performance Indicators 2016 a publication which contains comprehensive data relating to the export sector of Sri Lanka was published in printed and CD forms and were distributed among the relevant institutions, trade chambers, universities, etc.
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Product reports on some potential markets such as tea in Pakistan, surgical gloves, coconut water and travel goods in Saudi Arabia, coconut based products in Sweden and automotive components, coconut water and footwear in South Africa etc. have been prepared in association with Sri Lankan missions overseas and printed copies are available at the EDB and E- copies were uploaded in to the EDB web portal
Information KIOSK
A self-service information KIOSK - EDB Info Point was launched in January 2017 to facilitate walk-in visitors to promptly obtain information of its services. This will help exporters, potential exporters and the general public who visit EDB to obtain information on the registration of exporters, trade information, products, exports services and market information, e-business services, publications and training courses and advisory services and export licenses. This service is available at the EDB ground floor and operates on weekdays from 8.00 a.m-6.00 p.m.
Monitoring & Evaluation Unit
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SRI LANKA EXPORT DEVELOPMENT BOARD STATEMENT OF FINANCIAL POSITION AS AT 31 ST DECEMBER 2017
Note SLFRS SLFRS 31.12.2017 31.12.2016 Rs. Cts. Rs. Cts. ASSETS Non-Current Assets Property, Plant & Equipment (net) (9) 61,652,670.48 70,955,617.17 Investments in Associates - Unquoted (10) 1,088,674,019.00 1,012,467,874.00 1,150,326,689.48 1,083,423,491.17
Other non-current financial assets (11) 38,828,250.00 40,548,150.00 Total Non-Current Assets 1,189,154,939.48 1,123,971,641.17
Current Assets Inventories (12) 2,123,332.25 1,840,628.54 Trade and Other Receivables (13) 159,510,512.88 157,757,770.55 Advance and Prepayments (14) 19,025,319.66 17,297,453.45 Cash and Cash Equivalents (15) 3,052,305.92 38,622,546.20 183,711,470.71 215,518,398.74 Total Assets 1,372,866,410.19 1,339,490,039.91
EQUITY AND LIABILITIES Capital and Reserves Grants Received - Equity Contribution (16) 10,014,284.00 10,014,284.00 Accumulated Income over Expenditure 1,093,329,045.03 1,114,175,562.99 Total Equity 1,103,343,329.03 1,124,189,846.99
Grants Grants Received - Other (17) 33,046,261.17 32,967,988.25 33,046,261.17 32,967,988.25
Non-Current Liabilities Provisions and Other Liabilities (18) 9,024,373.57 30,489,828.08 Retirement Benefits Obligation (19) 89,981,884.30 88,057,017.00 99,006,257.87 118,546,845.08 Current Liabilities Other Payables (20) 99,243,941.67 63,785,359.59 Bank Overdraft (21) 38,226,620.45 - 137,470,562.12 63,785,359.59 Total Equity and Liabilities 1,372,866,410.19 1,339,490,039.91
The Board of Directors are responsible for the preparation and presentation of these Financial Statements. Signed for and on behalf of the Board by,
………………………….. …………………… ………………………… ……………………… Indira Malwatte W.A.D.S.Gunasinghe Rohan Abayakoon G.M. Herath CHAIRPERSON & CE BOARD MEMBER BOARD MEMBER DIRECTOR FINANCE
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SRI LANKA EXPORT DEVELOPMENT BOARD STATEMENT OF COMPREHENSIVE INCOME YEAR ENDED 31ST DECEMBER 2017
Note SLFRS SLFRS 31.12.2017 31.12.2016 Rs. Cts. Rs. Cts.
Income
Income (3) 430,305,985.15 467,499,501.27 Other Income (4) 150,526,909.55 125,162,153.67
Total Income 580,832,894.70 592,661,654.94
Expenditure
Export Development Expenses (5) (227,356,965.19) (208,013,222.29) Administration Expenses (6) (371,931,635.89) (337,721,924.35)
Income Over Expenditure from Operating Activities (18,455,706.38) 46,926,508.30
Finance Cost (7) (1,826,767.26) (1,152,602.68)
Excess of Income Over Expenditure from Ordinary Activities (20,282,473.64) 45,773,905.62
Other Comprehensive Income - Gain on Revaluation of Property, Plant and (8) - - Equipment
Other Comprehensive Income for the year - -
Total Comprehensive Income for the year (20,282,473.64) 45,773,905.62
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SRI LANKA EXPORT DEVELOPMENT BOARD STATEMENT OF CHANGES IN EQUITY YEAR ENDED 31ST DECEMBER 2017
Government Accumulated Total Grants Profit
Balance as at 31st December 2015 10,014,284.00 1,092,316,061.15 1,102,330,345.15
Excess of Income Over Expenditure - 45,773,905.62 45,773,905.62
Prior Year Adjustments - (23,914,403.78) (23,914,403.78)
Balance as at 31st December 2016 10,014,284.00 1,114,175,562.99 1,124,189,846.99
Excess of Income Over Expenditure - (20,282,473.64) (20,282,473.64)
Prior Year Adjustments (24) - (564,044.32) (564,044.32)
Balance as at 31st December 2017 10,014,284.00 1,093,329,045.03 1,103,343,329.03
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SRI LANKA EXPORT DEVELOPMENT BOARD STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31ST DECEMBER 2017 2017 2016 Notes Rs. Rs. Cash Flows from Operating Activities Surplus for the year before taxation (20,282,474) 45,773,906
Adjustments for
Depreciation 12,789,848 14,443,692 Income from Investments (138,631,888) (115,584,844) Prior Year Adjustment (564,044) (23,957,483) Finance Costs 355,113 367,361 Amortization Of Government Grants (5,312,349) (4,124,053) Provision for Gratuity 12,490,723 5,211,847 Provision for Impairment in Value 1,719,900 - Operating Profit/(Loss) before Working Capital Changes (137,435,172) (77,869,574)
(Increase)/Decrease in Inventories (282,704) 2,873 (Increase)/Decrease in Trade and Other Receivables (1,752,742) (13,838,103) (Increase)/Decrease in Advances and Prepayments (1,727,866) 20,894,584 Increase/(Decrease) in Provision and Other Liabilities (21,465,455) 1,305,686 Increase/(Decrease) in Other Payable 35,458,582 11,310,374 Cash generated from operations (127,205,356) (58,194,160)
Finance Costs Paid (355,113) (367,361) Defined Benefit Plan Costs Paid (10,565,856) (10,348,097) Net cash from Operating Activities (138,126,325) (68,909,619)
Cash Flows from Investing Activities
Acquisition of Property, Plant & Equipment 9 (3,486,901) (5,549,963) Dividend Received 4 60,166,344 42,859,381 Interest Received 4 2,259,399 2,269,747 Net cash used in Investing Activities 58,938,842 39,579,165
Net Cash Flows from/(Used in) Financing Activities
Government Grant Received 5,390,622 5,549,963 Net cash used in Financing Activities 5,390,622 5,549,963
Net Increase/(Decrease) in Cash and Cash Equivalents (73,796,861) (23,780,490)
Cash and Cash Equivalents at the beginning of the year 38,622,546 62,403,036 Cash and Cash Equivalents at the end of the year (35,174,315) 38,622,546
Analysis of Cash & Cash Equivalents
Cash in hand 15 71,357 67,794 Cash at Bank - Favorable 15 2,980,948 38,554,752 Bank Overdrafts 21 (38,226,620) - (35,174,315) 38,622,546
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SRI LANKA EXPORT DEVELOPMENT BOARD NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31ST DECEMBER 2017
STATEMENT OF RESPONSIBILITY OF THE MANAGEMENT OF THE AUTHORITY TO FINANCIAL REPORTING
In terms of Section 16 (Application of the provisions of the public corporations (financial control) Act) of Export Development Board of Sri Lanka Act No 40 of 1979, the Management of the Board is responsible for,
i. Keeping proper books of accounts of the income and expenditure, assets and liabilities and all other financial transactions of the Authority.
ii. Preparing accounts in accordance with the Sri Lanka Accounting Standards adopted by the Institute of Chartered Accountants of Sri Lanka under the Sri Lanka Accounting Standards Act No.15 of 1995 for the purpose of presenting a true and fair view of the financial performance and the financial condition of the Board.
iii. Taking appropriate steps to safeguard the assets of the Board and to establish appropriate internal controls to prevent and detect frauds and other irregularities.
1. GENERAL INFORMATION
1.1 Domicile & Legal Form
Sri Lanka Export Development Board is incorporated and domiciled in Sri Lanka under the Act No 40 of 1979. The registered office of the Board is at No. 42, Nawam Mawatha, Colombo 02.
1.2 Principal Activities and Nature of Operations
Export Development Board is primarily engaged to development of Sri Lanka exports; and to provide for matters connected therewith or incidental thereto.
1.3 Date of Authorization for Issue
The Financial Statements of the Board for the year ended 31st December 2017 have been approved by the Board of Directors at its meeting held on 22nd February 2018.
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SRI LANKA EXPORT DEVELOPMENT BOARD NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31ST DECEMBER 2017
1.4 Statement of Compliance
The Statement of Financial Position, Comprehensive Income, Changes in Equity, Cash Flow and notes together with Summary of Significant Accounting Policies and notes (Financial Statements”) of the Board as at 31st December 2017 has been prepared in accordance with the Sri Lanka Accounting Standards (SLFRS and LKASs) issued by the Institute of Chartered Accountants of Sri Lanka (CA),which represent International Financial Reporting Standards (IFRS) as issued by the Sri Lanka Accounting Standards Board.
1.5 Responsibility for Financial Statements
The Management of Export Development Board of Sri Lanka is responsible for the preparation and presentation of the financial statements.
1.6 Basis of Measurement
The financial statements have been prepared on historical cost basis except where appropriate disclosures are made with regard to fair value under relevant notes. Assets and liabilities are grouped by nature and in an order that reflect their relative liquidity.
1.7 Going Concern
When preparing the financial statements, the Management has assessed the ability of the Board to continue as a going concern. The Management has a reasonable expectation that the Board has adequate resources to continue in operational existence for the foreseeable future. The Board does not foresee a need for liquidation or cessation of operations, taking into account all available information about future. Accordingly, the Board continues to adopt the going concern basis in preparing the financial statements.
1.8 Adoption of SLFRS/LKAS
These financial statements are prepared in accordance with Sri Lanka Financial Reporting Standards (SLFRS) as defined by LKAS 1. They have been prepared under the historical cost convention, as modified by the available-for-sale financial assets, and financial assets and financial liabilities at fair value through profit or loss.
For all periods, up to and including the year ended 31 December 2011, the Board prepared its financial Statements in accordance with local generally accepted accounting practice (Local GAAP). The financial statements for the year ended 31 December 2012 are the first the Board has prepared in accordance with SLFRS and the continuation is done for the year ended 31st December 2013, 2014, 2015, 2016 & 2017.
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SRI LANKA EXPORT DEVELOPMENT BOARD NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31ST DECEMBER 2017
Accordingly, the Board has prepared Financial Statements which comply with SLFRS applicable for periods ending on or after 31 December 2017, together with the comparative period data as at and for the year ended 31 December 2016, as described in the accounting policies.
The presentation and classification of the financial statements of the previous period have been amended as required - First-time Adoption of International Financial Reporting Standards.
1.9 Reconciliations of Previous GAAP to SLFRS
SLFRS 1 requires the Board to provide reconciliation for equity reported in accordance with previous GAAP and equity reported in accordance with SLFRSs for the date of transaction and last period presented in the entities most recent annual financial statements which is 1 January 2012 and 31 December 2012 respectively and comprehensive income for the year 2012. Moreover, SLFRS 1 requires giving an additional reconciliation to the cash flow statement if there are material adjustments. The adoption of SLFRS has not changed the board’s actual cash flows; however it has resulted in certain changes to the board’s reported financial position and results of operations. SLFRS has also resulted in a number of presentation changes on the face of the board’s financial statements.
1.10 New Accounting Standards issued but not yet effective as at balance sheet date
The following new standards, amendments and interpretations to existing standards have been published by the Institute of Chartered Accountants of Sri Lanka, but are not yet effective up to the date of authorization of these financial statements. Possible impact on the financial statements of the application of the above new standards have not yet been assessed, and the authority intends to adopt these standards, interpretations and amendments to existing standards that are expected to be relevant to the board’s financial statements when they become effective.
SLFRS 9 Financial Instruments
SLFRS 15 Revenue from contracts with customers
1.11 Functional and Presentation Currency
The financial statements of the Board are presented in Sri Lankan Rupees, which is the Board’s functional currency.
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SRI LANKA EXPORT DEVELOPMENT BOARD NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31ST DECEMBER 2017
1.12 Significant Accounting Judgments, Estimates and Assumptions
The preparation of the board’s financial statements requires management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the reporting date. However, uncertainty about these assumptions and estimates could result in outcomes that could require a material adjustment to the carrying amount of the asset or liability affected in the future. These factors could include judgment, estimate and assumptions.
1.13 Estimates and assumptions
The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.
(a) Fair value of financial instruments
Where the fair values of financial assets and financial liabilities recorded on the balance sheet cannot be derived from active markets, they are determined using a variety of valuation techniques that include the use of discounted cash flows model and/or mathematical models. The inputs to these models are derived from observable market data where possible, but where observable market data are not available, judgment is required to establish fair values.
Changes in assumptions about these factors could affect the reported fair value of financial instruments.
(b) Valuation of defined benefit obligation
The cost of defined benefit pension plans is determined using the Half a month method. The carrying value at the balance sheet date of defined benefit obligation is Rs. 89,981,884.30 (2016 - Rs. 88,057,017)
(c) Fair Value
Fair value is the amount of consideration that would be agreed upon in an arm’s length transaction between knowledgeable, willing parties who are under no compulsion to act. When a financial instrument is initially recognized, its fair value is generally the value of the consideration paid or received. Subsequent to initial recognition, the fair value of a financial asset quoted in an active market is generally the bid price and, for a financial liability quoted in an active market, the fair value is generally the ask price. For financial instruments such as cash
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equivalents and short-term investments that have a short duration, the carrying value of these instruments approximates fair value.
2. SPECIFIC ACCOUNTING POLICIES
2.1 Assets and bases of their valuation
Assets classified as current assets on the Balance Sheet are cash and bank balances and those which are expected to be realized in cash during the normal operating cycle or within one year from the Balance Sheet date, whichever is shorter.
2.2 Financial Instruments
2.2.1 Financial Assets (Non-derivative)
The Financial Assets classifies into the following categories: at fair value through profit or loss, loans and receivables, held to maturity and available for sale. The classification is determined by management at initial recognition and depends on the purpose for which the investments were acquired.
2.2.2 Classification, Recognition and Measurement
The board classifies its financial assets into the following categories
Loans and receivables. Available for Sale.
Loans and Receivables
Loans and receivables are financial assets with fixed or determinable payments that are not quoted in an active market. Such assets are recognized initially at fair value plus any directly attributable transaction costs. Subsequent to initial recognition loans and receivables are measured at amortized cost using the effective interest method, less any impairment losses.
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SRI LANKA EXPORT DEVELOPMENT BOARD NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31ST DECEMBER 2017
Available-for-sale financial assets
Available-for-sale investments are financial assets that are intended to be held for an indefinite period of time, which may be sold in response to needs for liquidity or changes in interest rates, exchange rates or equity prices or that are not classified as loans and receivables, held-to-maturity investments or financial assets at fair value through profit or loss.
2.2.3 Determination of fair value
The fair values of loans and advances as well as liabilities are determined using a present value model on the basis of contractually agreed cash flows, taking into account credit quality, liquidity and costs.
The carrying value less impairment provision of trade receivables and payables are assumed to approximate their fair values.
2.2.4 Reclassification
Financial assets other than loans and receivables are permitted to be reclassified out of the held-for-trading category only in rare circumstances arising from a single event that is unusual and highly unlikely to recur in the near-term. In addition, the board may choose to reclassify financial assets that would meet the definition of loans and receivables out of the held-for-trading or available-for-sale categories if the board has the intention and ability to hold these financial assets for the foreseeable future or until maturity at the date of reclassification.
Reclassifications are made at fair value as of the reclassification date. Fair value becomes the new cost or amortized cost as applicable, and no reversals of fair value gains or losses recorded before reclassification date are subsequently made. Effective interest rates for financial assets reclassified to loans and receivables categories are determined at the reclassification date. Further increases in estimates of cash flows adjust effective interest rates prospectively.
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SRI LANKA EXPORT DEVELOPMENT BOARD NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31ST DECEMBER 2017
2.2.5 Impairment
(a) Financial assets carried at amortized cost
The Board assesses at each end of the reporting period whether there is objective evidence that a financial asset or group of financial assets is impaired. A financial asset or group of financial assets is impaired and impairment losses are incurred only if there is objective evidence of impairment as a result of one or more events that have occurred after the initial recognition of the asset (a ‘loss event’) and that loss event (or events) has an impact on the estimated future cash flows of the financial asset or Group of financial assets that can be reliably estimated. Objective evidence that a financial asset or Group of assets is impaired includes observable data that comes to the attention of the Board about the following events:
Significant financial difficulty of the issuer or debtor; A breach of contract, such as a default or delinquency in payments; It is probable that the issuer or debtor will enter bankruptcy or other financial Re-organization; The disappearance of an active market for that financial asset because of financial difficulties; or Observable data indicating that there is a measurable decrease in the estimated future cash flow from a Group of financial assets since the initial recognition of those assets,
The Board first assesses whether objective evidence of impairment exists individually for financial assets that are individually significant. If the Board determines that no objective evidence of impairment exists for an individually assessed financial asset, whether significant or not, it includes the asset in a Group of financial assets with similar credit risk characteristics and collectively assesses them for impairment. Assets that are individually assessed for impairment and for which an impairment loss is or continues to be recognized are not included in a collective assessment of impairment.
If there is objective evidence that an impairment loss has been incurred on loans and receivables carried at amortized cost, the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows (excluding future credit losses that have been incurred) discounted at the financial asset’s original effective interest rate. The carrying amount of the asset is reduced through the use of an allowance account, and the amount of the loss is recognized in the income statement. For the purpose of a collective evaluation of impairment, financial assets are grouped on the basis of similar credit risk
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SRI LANKA EXPORT DEVELOPMENT BOARD NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31ST DECEMBER 2017
If in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognized (such as improved credit rating), the previously recognized impairment loss is reversed by adjusting the allowance account. The amount of the reversal is recognized in the income statement.
(b) Impairment of other non-financial assets
Assets that have an indefinite useful life are not subject to amortization and are tested annually for impairment. Assets that are subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash-generating units).
2.2.6 De-recognition
A financial asset (or, where applicable a part of a financial asset or part of a Group of similar financial assets) is derecognized when:
The rights to receive cash flows from the asset have expired. The Board has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ‘pass-through’ arrangement; and either
(a) The Board has transferred substantially all the risks and rewards of the asset, or
(b) The Board has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.
When the Board has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement, and has neither transferred nor retained substantially all of the risks and rewards of the asset nor transferred control of it, the asset is recognized to the extent of the Board’s continuing involvement in it. In that case, the Board also recognizes an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Board has retained. Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount of consideration that the Board could be required to repay.
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2.2.7 Financial assets and liabilities are offset and the net amount is presented in the statement of financial position when, and only when, the company has a legal right to offset the amounts and intends either to settle on a net basis or to realize the asset and settle the liability simultaneously.
2.3 Property, Plant and Equipment
2.3.1 Recognition & measurement
Items of property, plant and equipment are stated at cost or valuation less accumulated depreciation and impairment losses. Cost includes expenditures that are directly attributable to the acquisition of the asset. The cost of self-constructed asset includes the cost of materials and direct labor, any other costs directly attributable to bringing the assets to a working condition for their intended use expenditure on repairs or maintenance of property, plant and equipment made to restore or maintain future economic benefits expected from the assets has been recognized as an expense when incurred.
2.3.2 Subsequent costs
Expenditure incurred to replace a component of an item of property, plant and equipment that is accounted for separately, including major inspection and overhaul expenditure, is capitalized and written off during the lease period. Other subsequent expenditure is capitalized only if it is probable that the future economic benefits embodied within the part will flow to the board and its cost can be measured reliably. The cost of the day-to-day servicing of property, plant and equipment are recognized in the income statement as an expense as incurred.
2.3.3 Depreciation
The provision for depreciation is calculated on the straight line method on the Cost/ valuation of the Property, Plant and Equipment. All Property, Plant and Equipment other than land have been depreciated annually on the following percentages in order to write off such amounts over the useful lives.
Motor Vehicles Less than 10 years 10% Motor Vehicles Over 10 20% old years old
Computers 20% Computer Software 25% Computer Equipment 25% TV Equipment 10%
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SRI LANKA EXPORT DEVELOPMENT BOARD NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31ST DECEMBER 2017
Telephone Installation 20% Furniture and fittings 10% Residential Telephone 10% Office Equipment 10% PABX System 10% KIOSK System 20% Other Equipment 33 1/3%
Depreciation has been charged commencing the date of purchase using straight line method. During the year under review economic life time of the property, plant and equipment were reassessed as required by the LKAS 16 based on the best of the information available. As a result, depreciation rates were changed for some property, plant and equipment. The resulting impact of change in economic life time of the assets is adjusted in the financial statements commencing from the 2012 onwards.
2.3.4 De-recognition
Items of property and equipment are de-recognised upon disposal or when no future economic benefits are expected from its use. Gain or losses arising on de-recognition of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognized in the income statement.
2.3.5 Impairment of Tangible Assets
At the end of each reporting period, the Board reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the recoverable amount is determined for the cash-generating unit to which the asset belongs. Where a reasonable and consistent basis of allocation can be identified, assets are also allocated to individual cash-generating units, or otherwise they are allocated to the smallest group of cash-generating units for which a reasonable and consistent allocation basis can be identified.
Recoverable amount is the higher of fair value less costs to sell or value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (cash-generating
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SRI LANKA EXPORT DEVELOPMENT BOARD NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31ST DECEMBER 2017
unit) is reduced to its recoverable amount. An impairment loss is recognized immediately in the income statement, unless the relevant asset is carried at a revalue amount, in which case the impairment loss is treated as a revaluation decrease.
2.4 Investments in Associates- Development Holdings (Pvt) Ltd
Investment in an associate is initially recognized at cost and the carrying amount is increased or decreased to recognize the board’s share of the profit or loss of the investee after the acquisition date (Equity Method). Adjustments to the carrying amount (Changes arising from the revaluation of Property, plant and equipment or foreign exchange translation differences) is recognized in the board’s proportionate interest from year 2013 onwards in the investee arising from changes in the investee’s other comprehensive income.
2.5 Inventories
All inventories have been valued at lower of Cost or Net Realizable Value. Cost is determined based on First in First out basis. (FIFO)
2.6 Other Assets
Other assets include Other Debtors and Receivables, Advances, Deposits, Prepayments, Taxation Receivable.
(a) Advances, Deposits, Prepaid Expenditure
Expenditure which is deemed to have a benefit or relationship to more than one financial year is classified as advances, deposits and prepaid expenditure. Such expenditure is written off over the period, to which it relates, on a time proportion basis.
(b) Other Debtors
Other debtors are recognized at cost less impairment loss.
(c) VAT Receivable
Taxation receivable is recognized at cost.
2.7 Cash and Cash Equivalents
Cash and cash equivalents comprise cash in hand and short-term highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. These are held for the purpose of meeting short-term cash commitments.
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SRI LANKA EXPORT DEVELOPMENT BOARD NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31ST DECEMBER 2017
For the purpose of cash flow statement, cash and cash equivalents consist of cash in hand and deposits in banks net of outstanding bank overdrafts. Investments with short maturities i.e. three months or less from the date of acquisition are also treated as cash equivalents. In the consolidated balance sheet, bank overdrafts are shown within borrowings in current liabilities.
2.8 Financial Liabilities
2.8.1 Initial recognition and measurement
Financial liabilities within the scope of LKAS 39 are classified as financial liabilities at fair value through profit or loss or loans and borrowings as appropriate. The Board determines the classification of its financial liabilities at initial recognition.
All financial liabilities are recognized initially at fair value and, in the case of loans and borrowings, carried at amortized cost. This includes directly attributable transaction costs.
The Board’s financial liabilities include trade and other payables.
2.8.2 Subsequent measurement
The measurement of financial liabilities depends on their classification as follows:
2.8.3 Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss. Financial liabilities are classified as held for trading if they are acquired for the purpose of selling in the near term. Gains or losses on liabilities held for trading are recognized in the income statement. The Board has not designated any financial liabilities upon initial recognition as at fair value through profit or loss.
2.8.4 Other Financial Liabilities
Loans and borrowings are carried at amortized cost after initial recognition.
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SRI LANKA EXPORT DEVELOPMENT BOARD NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31ST DECEMBER 2017
2.9 Other Liabilities
Other liabilities include Accrued Expenditure. These are stated at their historical value which is deemed to be their fair value.
2.10 Government Grants
Grants are recognized in the financial statements at their fair value. When the grant relates to an expense it is recognized as an income over the period necessary to match it with the costs, which it is intended to compensate for on a systematic basis.
Grants related to assets are generally deferred in the statement of financial position and credited to the statement of comprehensive income over the useful life of the asset.
As per the LKAS 20 - Accounting for Government Grants and Disclosure of Government Assistance, from the year 2016, cost of the fixed assets purchase under the development budget of the Board by using the government fund are transferred to the Government Grant Account and will be amortized over their useful lifetime (equal to the depreciation rate).
The value of the Government Grant reflects, assets transferred from following organization at the time of formation of the Board and the assets purchased subsequently to the Board.
Government Contribution - Rs. 7,904,002.00 UNDP Contribution - Rs. 2,110,282.00 Government Grant Motor Vehicles - Rs. 24,020,596.67 Government Grant – Other - Rs. 9,025,664.50 Total - Rs. 43,060,545.17
2.11 Employee Benefits
Defined Contribution Plans
Employees are eligible for Employees’ Provident Fund (EPF) Contributions and Employees’ Trust Fund (ETF) Contributions in line with the respective statutes and regulations. The Authority pays fixed contributions of gross emoluments of employees to Employees’ Provident Fund and Employees’ Trust Fund and will have no legal or constructive obligation to pay further amounts.
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SRI LANKA EXPORT DEVELOPMENT BOARD NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31ST DECEMBER 2017
Defined benefit plans
Defined benefit plans are post-employment plans other than defined contribution plans. Authority is liable to pay gratuity in terms of the Payment of Gratuity Act No. 12 of 1983. A provision for the obligations under the Act is determined based on the half month salary multiplied by number of years in service.
2.12 Income Tax
According to the Sri Lanka Export Development Act No .40 of 1979 Section 18,
(a) The profits and income of the Board; and (b) Any sum paid by the Board to any person as a subsidy or grants out of the Fund are exempted from income tax.
2.13 Income Recognition
a. Government Grant This represents funds received from the government treasury. Based on forecasted cash flow requirements, the treasury provides the required funds to the board. Therefore, this represents expenditure related grant received by the board which is recognized at fair value.
b. Other Income Income received from providing services and information is measured at the fair value of the consideration received or receivable as per the Invoices raised in the period in which the related services are performed.
c. Interest Income Interest income for all interest-bearing financial instruments (from exporter’s loans) is recognized in the income statement at the time of repayment of the installment using the effective interest rate method.
d. Dividend Income Dividend income is recognized when the Board’s right to receive the payment is established.
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SRI LANKA EXPORT DEVELOPMENT BOARD NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31ST DECEMBER 2017
2.14 Expenses Recognition
All expenses are measured at fair value of the consideration given and recognize in the period to which those expenses related. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are accounted for by changing the depreciation period and are treated as a change in an accounting estimate.
2.15 Borrowing Costs
Borrowing costs are interest & other costs incurred by the Board in connection with the borrowing of funds. Borrowing costs are recognized as an expense in the period in which they are incurred.
2.16 Foreign Currency Translation/Transactions
All transactions in currencies other than the functional currency are recorded in Sri Lankan Rupees, using the exchange rates prevailing at the time the transactions were effected. At each Statement of Financial position date, monetary assets and liabilities denominated in foreign currencies are retranslated to Sri Lankan Rupee equivalents at the exchange rate prevailing on the Balance Sheet date. Non-monetary assets and liabilities denominated in foreign currencies are translated to Sri Lankan Rupees using the exchange rate prevailing at the date of transaction. Exchange differences arising on settlement of monetary items and re-translation of monetary items, are recognized in the income statement in the year in which they arise.
2.17 Related Party Transactions
The Board has related party relationship with its Associate company i.e. Development Holdings (Pvt) Ltd. The Board has paid monthly Rental for the space occupied and also the auditorium hire charges as per the valuation of the Government Valuer to the Associate Company. Mrs. Indira Malwatte - Chairperson & Chief Executive, Mrs. P K Sumithrarachchi - Additional Director General –Finance & Administration and Mrs. D T Wijayaratne - Legal Officer of the Board are functioning as EDB nominee directors of the Board of Directors of Development Holdings (Pvt) Ltd. Two Board meetings were held during the year 2017 and a sitting allowance of Rs. 10,000 less applicable PAYE tax was paid per sitting.
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SRI LANKA EXPORT DEVELOPMENT BOARD NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31ST DECEMBER 2017
Transactions with Key Managerial Personnel
According to the Sri Lanka Accounting Standard 30 (revised 2005) 'Related Party Disclosure' Key Management Personnel, are those having authority and responsibility for planning, directing and controlling the activities of the Board.
2.18 Events after Balance Sheet Date
The directors monitor events closely and where necessary adjustments or disclosures are made in the current Financial Statements in respect of material post balance sheet events as appropriate.
2.19 Contingent Liabilities
a) Contingent liabilities are disclosed if there is a possible future obligation as a result of a past event or if there is a present obligation as a result of a past event but either a payment is not probable or the amount cannot be reasonably estimated.
b) The Board has initiated legal actions against 17 parties in- order to recover dues to the Board in-connection with different transactions carried out with the Board. Details of those transactions are mentioned in the Note No.26 to the Notes to the Financial Statements.
2.20 Cash Flow Statement
The cash flow statement has been prepared by using Indirect Method in accordance with the Sri Lanka Accounting Standard No. 7 on Statement of Cash Flows.
The Indirect Method discloses the profit or loss adjusted by the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments, and items of income or expense associated with investing or financing cash flows.
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SRI LANKA EXPORT DEVELOPMENT BOARD NOTES TO THE FINANCIAL STATEMENT YEAR ENDED 31ST DECEMBER 2017 SLFRS SLFRS 31.12.2017 31.12.2016 Rs. Cts. Rs. Cts. (3) Income
Grant Received 352,643,377.60 364,450,037.49 Revenue from Services to Exporters 59,963,966.00 64,859,625.56 Income from branches 92,119.82 167,933.64 Internet Income 577,429.00 426,630.00 Internet Portal 557,729.87 709,721.18 Income from WEDF - 2016 750,000.00 24,875,721.90 Seminars and Course Fee 5,249,544.81 5,782,433.25 Income on stall fees -Leather Fair -2017 - 4,380,827.25 Sales of Books 232,946.00 250,071.00 Other Income 10,238,872.05 1,596,500.00 430,305,985.15 467,499,501.27
(4) Other Income
Interest Income 2,259,399.30 2,269,747.27 Share of Associate Company Profit 76,206,145.00 70,455,716.00 Dividend Income 60,166,343.52 42,859,380.87 Other Sundry Income 2,158,379.62 1,700,906.88 Amortization Of Government Grants 5,312,349.48 4,124,053.01 Interest Income from Staff Loans (IFRS) 4,424,292.63 3,752,349.64 150,526,909.55 125,162,153.67
(5) Export Development Expenses
Export Development Programmes 76,408,185.53 61,337,586.37 Export Marketing Promotion - overseas 119,288,970.12 76,493,976.99 Participation Trade Delegation 5,670,183.64 1,376,597.02 WEDF - 2016 1,552,325.10 40,014,026.29 Local Trade Fairs 2,456,888.96 9,674,043.85 Policy and Planning Expenses 2,221,120.84 2,001,362.60 Export Market Promotion- Local 9,331,035.42 3,679,480.05 Regional Development Expenses 7,005,857.70 5,233,500.76 Trade Information and Services Expenses 3,403,181.88 3,934,690.92 Trade Net Expenses 1,375.00 3,958,664.26 Integrated Agriculture Model Farm Project - 128,642.67 Ceylon Cinnamon Logo Design 17,841.00 180,650.51 227,356,965.19 208,013,222.29
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SRI LANKA EXPORT DEVELOPMENT BOARD NOTES TO THE FINANCIAL STATEMENT YEAR ENDED 31ST DECEMBER 2017 SLFRS SLFRS 31.12.2017 31.12.2016 Rs. Cts. Rs. Cts.
(6) Administration Expenses
Salaries and Wages 138,409,028.75 123,917,943.23 Over Time and Holiday Pay 6,552,924.53 7,362,820.56 Bonus 2,560,467.00 2,623,012.50 EPF 17,884,441.25 16,261,980.65 ETF 5,622,626.35 3,252,520.45 Pension - 24,260.50 Gratuity 12,490,722.80 5,211,847.00 Staff Welfare 21,011,481.41 19,650,818.36 Recruitment Charges 1,963,607.63 1,530,207.02 Staff Cost -( IFRS Adjustments) 4,424,292.63 3,752,349.64 Electricity 20,154,823.66 20,238,022.91 Water 804,555.82 2,217,775.87 Legal and Other Professional Fee 80,627.50 422,340.00 Advertising 917,037.59 667,063.83 Security 7,255,348.17 5,519,112.50 Audit Fee 700,000.00 700,000.00 Printing Charges 604,845.50 214,102.00 Transport & Travelling Charges 13,809,986.34 12,493,161.26 Entertainment 182,968.12 208,895.04 Other General Expenses 1,532,242.92 473,530.96 Board Member Fees 1,164,579.06 1,363,111.00 Maintenance of Office Equipment 3,453,626.24 1,877,502.36 Rent 63,545,733.86 63,833,098.44 Fuel and Lubricants 5,190,773.70 5,502,086.42 Repairs and Maintenance of Vehicles 4,423,394.54 4,200,261.53 Private Hiring Charges 7,443,849.90 6,167,596.61 Communication and Subscriptions 9,161,319.09 7,664,593.68 Depreciation 13,292,731.86 14,443,691.73 Local Training 928,587.10 1,196,520.33 Supplies Requisites 4,217,798.02 3,973,473.89 Overseas Training 2,147,214.55 758,224.08 371,931,635.89 337,721,924.35
(7) Finance Cost
Interest Expenses 355,113.32 367,361.20 Stamp Fees 728,028.76 82,418.92 Financial Charges 743,625.18 702,822.56 1,826,767.26 1,152,602.68
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SRI LANKA EXPORT DEVELOPMENT BOARD NOTES TO THE FINANCIAL STATEMENT YEAR ENDED 31ST DECEMBER 2017
(8) Revaluation Of Motor Vehicles
Motor Vehicles owned by the board was revalued by Automobile association of Sri Lanka on 31st December 2012. The Board expects to revalue the Motor Vehicles once in five
years.
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SRI LANKA EXPORT DEVELOPMENT BOARD NOTES TO THE FINANCIAL STATEMENT YEAR ENDED 31ST DECEMBER 2017
(9) Property, Plant and Equipments (9.1) Cost Balance as at Assets Balance as at Additions Revaluation Disposals Balance as at 01/01/2016 01/01/2017 31/12/2017 Residential 99,364.00 99,364.00 33,150.00 - 16,072.00 116,442.00 Telephone 75,110,000.00 Motor Vehicle 75,343,100.00 33,350.00 - - 75,376,450.00 33,249,894.02 Computer 36,802,808.52 1,952,900.00 - - 38,755,708.52 6,066,080.50 Computer Software 6,066,080.50 1,606,400.00 - 1,920,799.50 5,751,681.00 Computer 1,006,347.32 1,053,894.45 309,048.40 - - 1,362,942.85 Equipments - Kiosk System 735,930.00 - - - 735,930.00 4,797,345.01 TV Equipments 4,816,845.01 - - - 4,816,845.01 65,549.00 PABX Equipments 65,549.00 - - - 65,549.00 Telephone 1,507,160.14 1,540,830.14 91,172.00 - - 1,632,002.14 Installation Furniture and 14,799,732.29 15,595,618.57 248,688.50 - - 15,844,307.07 Fittings 15,602,735.99 Office Equipment 15,734,150.59 1,133,823.50 - - 16,867,974.09 - Other Equipment - 15,240.00 - - 15,240.00
152,304,208.27 157,854,170.78 5,423,772.40 - 1,936,871.50 161,341,071.68
(9.2) Depreciation Depreciation Balance as at Depreciation Balance as at Charge for for Balance as at 01/01/2016 01/01/2017 the year Disposals 31/12/2017 Residential 82,610.70 6,996.81 20,850.36 68,757.15 75,489.06 Telephone 19,048,499.99 Motor Vehicle 27,287,269.99 8,256,083.33 - 35,543,353.32 27,200,981.93 Computer 30,345,411.54 2,196,391.28 - 32,541,802.82 2,711,589.07 Computer Software 3,682,713.82 602,916.55 480,199.88 3,805,430.49 Computer 732,927.67 151,696.17 - 884,623.84 559,173.66 Equipments - Kiosk System 12,265.50 147,186.00 - 159,451.50 3,525,047.67 TV Equipments 3,753,808.78 230,711.11 - 3,984,519.89 34,197.11 PABX Equipments 40,752.01 6,554.90 - 47,306.91 Telephone 1,505,217.02 38,718.41 - 1,543,935.43 1,421,589.43 Installation Furniture and 7,275,394.00 775,365.73 - 8,050,759.73 6,547,088.24 Fittings 11,331,205.72 Office Equipment 12,180,182.58 877,972.54 - 13,058,155.12 - Other Equipment - 305.00 - 305.00 72,454,861.88 86,898,553.61 13,290,897.83 501,050.24 99,688,401.20
Written Down Value 2017 2016 152,304,208.27 Cost 161,341,071.68 157,854,170.78 (72,454,861.88) Accu: Depreciation (99,688,401.20) (86,898,553.61)
79,849,346.39 WDV 61,652,670.48 70,955,617.17
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SRI LANKA EXPORT DEVELOPMENT BOARD NOTES TO THE FINANCIAL STATEMENT YEAR ENDED 31ST DECEMBER 2017 SLFRS SLFRS 31.12.2017 31.12.2016 Rs. Cts. Rs. Cts.
(10) Investments in Associates - Unquoted
Investments in Associates Company - DHPL 1,088,674,019.00 1,012,467,874.00 1,088,674,019.00 1,012,467,874.00
(11) Other non-current financial assets
Redeemable Preference Shares 105,066,208.78 105,058,083.78 Ordinary Shares 58,312,483.61 58,312,483.62 (-) Provision for impairment in Value (124,550,442.39) (122,822,417.40) 38,828,250.00 40,548,150.00
(12) Inventories
Stationery 2,123,332.25 1,840,628.54 2,123,332.25 1,840,628.54
(13) Trade and Other Receivables
Exporters Loan 41,348,001.60 45,183,838.60 (-) Provision for Impairment in debts (41,348,001.60) (44,176,573.65) Staff Loans 40,453,916.07 40,813,910.25 Less: Deferred Staff Cost (556,424.43) (3,940,875.88) VAT Receivable 104,676,878.80 104,676,878.80 Other Debtors 14,936,142.44 15,200,592.43 159,510,512.88 157,757,770.55
(14) Advance and Prepayments
Prepayments 2,463,069.30 4,289,831.97 Advances 13,125,175.77 6,350,095.44 Bank Guarantee 300,000.00 300,000.00 Deposits for Services 1,497,260.00 1,307,260.00 Refundable Security Deposits 969,390.16 969,390.16 Returned Cheques 114,000.00 140,000.00 Prepaid Staff Cost 556,424.43 3,940,875.88 19,025,319.66 17,297,453.45
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SRI LANKA EXPORT DEVELOPMENT BOARD NOTES TO THE FINANCIAL STATEMENT YEAR ENDED 31ST DECEMBER 2017 SLFRS SLFRS 31.12.2017 31.12.2016 Rs. Cts. Rs. Cts.
(15) Cash and Cash Equivalents
Bank Of Ceylon -Deposit Cashier 2,500.00 2,500.00 Bank Of Ceylon - Lake View (306605) - 32,293,112.53 National Development Bank 2,535,581.62 1,017,863.61 Bank Of Ceylon - Corporate Branch 212,229.35 227,280.45 DFCC - Corporate Branch 198,890.00 4,998,890.00 Sampath Bank - Kandy 5,181.92 4,917.32 Sampath Bank - Galle 7,332.63 7,086.81 Bank Of Ceylon - Mannar 2,125.26 1,385.45 Sampath Bank - Kurunegala 17,107.67 1,716.21 Cash in Hand 71,357.47 67,793.82 3,052,305.92 38,622,546.20
(16) Grants Received - Equity Contribution
Government Contribution 7,904,002.00 7,904,002.00 UNDP Contribution 2,110,282.00 2,110,282.00 10,014,284.00 10,014,284.00
(17) Grants Received
Government Contribution - Motor Vehicle 38,826,450.00 38,793,100.00 Government Contribution - Other 10,674,134.92 5,316,862.51 ITC Contribution 12,716.35 12,716.35 Export Promotion Secretariat 202,677.32 202,677.32 (-) Amortization Of Government Grants (16,669,717.42) (11,357,367.93)
33,046,261.17 32,967,988.25
(18) Provisions and Other Liabilities
Loan Scheme Contribution 7,796,197.30 7,954,151.81 UPEPV 2,108,251.77 2,108,251.77 Exporter contribution 1,852,791.00 23,712,791.00 UPEPV - control Accounts (10,403,683.00) (10,403,683.00) Refundable Deposits 7,670,816.50 7,118,316.50 9,024,373.57 30,489,828.08
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SRI LANKA EXPORT DEVELOPMENT BOARD NOTES TO THE FINANCIAL STATEMENT YEAR ENDED 31ST DECEMBER 2017 SLFRS SLFRS 31.12.2017 31.12.2016 Rs. Cts. Rs. Cts.
(19) Retirement Benefits Obligation
Balance B/F 88,057,017.00 93,193,267.00 Provision during the year 12,490,722.80 5,211,847.00 Paid during the year (10,565,855.50) (10,348,097.00) Balance C/F 89,981,884.30 88,057,017.00
(20) Trade Payables
Stamp Fees Payables 24,575.00 - Unclaimed Salaries 126,320.36 33,422.30 Unclaimed Sundry Payments 165,853.70 1,338.53 EPF Payable 36,323,276.18 33,802,601.95 ETF Payable 306,222.56 3,741.67 Employees Final Payments 22,605.36 33,005.36 Salaries Payable 116,522.77 - Audit Fee Payables 1,994,672.00 1,294,672.00 Repayable Security Deposit- Cashier 2,500.00 2,500.00 Refundable Deposit for Tenders 243,000.00 6,000.00 Unpresented Cheques 388,340.16 162,153.88 Other Accrued Expenses 59,530,053.58 28,445,923.90 99,243,941.67 63,785,359.59
(21) Bank Overdraft
Bank Of Ceylon - Lake View 38,226,620.45 - 38,226,620.45 -
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SRI LANKA EXPORT DEVELOPMENT BOARD NOTES TO THE FINANCIAL STATEMENT YEAR ENDED 31ST DECEMBER 2017
(22) Investments in equity shares were tested for impairment as required as LKAS 39. Accordingly reversal of impairment provision amounting to Rs. 31,698,150 was done as at 1st January 2011.
(23) (23.1) Staff Loan
According to the LKAS 39, Staff Loans are recognized at amortized cost using the effective interest rate, less any impairment losses. According to staff loans outstanding as at 1st January 2013 were measured at amortized cost. As a result a prepaid staff cost and IFRS adjustments account amounting to Rs. 16,060,711.67 were established in the book of accounts of the authority.
The respective balances are shown in the financial statements as follows.
(23.2) IFRS adjustment account balance was deducted from staff loan account. As a result staff loan is now shown at fair value in the balance sheet.
Staff Loan Rs. 40,453,916.07 IFRS Adjustments Rs. (556,424.43) Rs. 39,897,491.64
(23.3) Prepaid Staff Cost arisen due to above adjustment is shown under current assets.
Prepaid Staff Cost Rs. 556,424.43
(24) Prior Year Adjustments
Errors that have been made in respect of the recognition and measurement of elements of financial statements have been corrected in the financial statements for the year 2017. Since it is impracticable to restate the financial statements for the periods in which the errors have been occurred, current year financial statements have been adjusted accordingly.
Nature of the Prior period error FSs' line item affected Amount (Rs)
Reversal of over provision for Other Relevant expenditure accounts 702,151.70 Accrued Expenses
Correction of Provisions to Accu. Depreciation Expense A/C 493,247.39 Depreciation
Adjustments to the provision for Provision for Diminution of (1,719,900.00) impairment in Value Value A/C
Other (Net) Relevant ledger accounts (39,543.41) (564,044.32)
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SRI LANKA EXPORT DEVELOPMENT BOARD NOTES TO THE FINANCIAL STATEMENT YEAR ENDED 31ST DECEMBER 2017
(25) Related Party Transactions
Payments are made in the ordinary course of business to its Associate Company i.e. Development Holdings (Pvt) Ltd. for certain specified activities are considered as related party transactions. During the reporting period, the following transactions have been done with such related party by the EDB.
Name Transactions 2017 2016 Amount (Rs) Amount (Rs)
Development Holdings Rental Paid 60,000,000.00 59,598,214.28 (Pvt) Ltd. Parking Fees Paid 394,285.68 384,000.03 Auditorium hire charges Paid 405,303.74 438,304.85 Dividend Received 6,244,971.00 36,244,971.00
(26) Contingent Assets and Liabilities
There are no any other contingent assets or liabilities as at the balance sheet date except the details mentioned below.
Nature of Contingent Name of the Party from Probable/Estimated If unable to Asset as at 31.12.2017 whom the Contingent cash inflow in future measure the Asset arose Rs. Cts. cash inflow
i. Case filed to recover PIMA Holding (Pvt) 1,284,515.00 Legal Fees to outstanding rent, Ltd AG's electricity and janitorial Department charges - Chennai Trade Centre Gem Nation (Pvt) Ltd 2,226,596.78 Legal Fees to AG's Department
Unique Multi Artist 194,142.50 -
Sara Oos Leather (Pvt) Ltd 2,125,000.00 -
ii. Loan Defaulter International Paper 476,973.00 Products - Works of Arts 42,000.00 - Rajas Jewelry 90,418.00 - Srimic Sea Food 69,620.00 - Ceylon Ornamental 299,720.00 Ceramics - Coconut Husk Chips 44,800.00 -
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SRI LANKA EXPORT DEVELOPMENT BOARD NOTES TO THE FINANCIAL STATEMENT YEAR ENDED 31ST DECEMBER 2017
Nature of Contingent Name of the Party from Probable/ If unable to Asset as at 31.12.2017 whom the Contingent Estimated cash measure the cash Asset arose inflow in inflow future Rs. Cts.
Saman Gems & Jewelers 252,912.02 - Unicycle Marketing 278,455.58 - World Fashion 30,000.00 - Unique Multi Artists 287,006.54 - iii. Recovery of overpaid Mrs. S Weerakoon USD 1,598.46 travel expenses - iv. Repayment of Bond Sirikumara 104,725.45 -
v. Case filed to recover Solar Green Plantations 1,505,932.00 - outstanding advance (Pvt) Ltd payment paid by the EDB
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