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Annual Report of the Sri Lanka Export Development Board for the Year 2017

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Annual Report of the Sri Lanka Export Development Board for the Year 2017 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 129 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. 130 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) 131 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 132 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 185-198 133 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. 134 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 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 US$ Mn 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 136 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.
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