First US Joint Biz Council with Lanka!

US calls for first Joint Biz Council with Lanka

• ‘There should be one!’–Trade Rep Delaney
• ‘Great suggestion’-Rishad
• ‘Knock, knock–Could you pls open?’–Lankan Women Biz
• SL-US economic relations at $3Bn

In the aftermath of the successful Lanka-US trade talks and biz forums in Colombo last week, the on-going bilateral engagement between the two countries received yet another boost on 17 October as the powerful American trade emissary for South Asia himself called for the setting up of first SL-US Business Council in Colombo-and behind this historic outcome is a pioneering Lankan women’s biz Chamber. “As far I know there is no SL-US Business Chamber. Frankly, there should be!” voiced an excited Michael Delaney (Assistant US Trade Representative for Central and South Asia) on 17 October in Colombo.

US Representative Delaney was addressing the eager delegation of Sri Lanka’s first ever women’s chamber, the Women’s Chamber of Industry and Commerce (WCIC) on 17 October in the presence of Rishad Bathiudeen (Minister of Industry and Commerce of Sri Lanka) during a special facilitation session by Minister Bathiudeen towards Lankan women’s biz.

The Women’s Chamber of Industry and Commerce (WCIC), which commenced in 1985 and whose present membership is 120, is a Lankan non-profit consisting of professional women. WCIC is the first women-only trade chamber to be set up in the country. It promotes the special interests of women entrepreneurs to get them into the mainstream of Lankan business.

The packed 17 October WCIC delegation appeared to be a collection of well-balanced women’s biz operating in Sri Lanka-from a large scale corporate, medium scale consultancies down to small SMEs producing herbal preparations! Among the sectors and the firms represented in the session were Gems & Jewellery (Sapphire Cutters Pvt Ltd, Cantaloupe Jewels, Ceylon Gem Stones), Organic Farming (Nutri Naturals), Ayurveda (Hettigoda Group of Companies, Janet Group, 4ever Skin Naturals, Pacific Western Ltd), tea (Imperial Teas Group of Companies, Pacific Western Ltd),  Handicraft/Batiks (Edmond Handicrafts, Selyn Exporters, Buddhi Batiks & Handicrafts, DSL Lanka Ltd, Sylvan Heritage), Garments (Oneera Design House, Huegins Clothing Ltd, Sindu Garments,  Abans Group of Companies), Service Outsourcing (A.S & Associates Resource Co, Image Consultants Ltd,  Affari Advisory and Consultancy Services,  Abans Group of Companies, Zri  Counsultants).  Also present were officials of Ministry of Industry and Commerce, Ms Himali Jinadasa (Senior Advisor to Minister Bathiudeen), and other US Officials.

“I speak to you in the absence of Ms Rifa Musthapha, our President, who is away from Sri Lanka at this moment” said a keen Vidyani Hettigoda (Director-Hettigoda Group, and the Leader of the Delegation), speaking to Ms Delaney and added: “This chamber promotes all women’s enterprises, even rural women sectors and attempts to educate them with special programs of empowerment. We can facilitate education for them towards the knowledge hub as per His Excellency the President Mahinda Rajapaksa’s vision and provide training. We, the women’s businesses of Sri Lanka, like to partner with the US economy. However, we found that introducing our products to US market is not easy with many barriers to overcome! Such products as Lankan Ayurvedics are not familiar to the US market.  For example, I cannot take Ayurvedic oils produced by my firm to US since I have to reveal the formulations-But these are not herbs-these are products of Ayurveda tradition which has 3000 year long history. There are many issues like this when Lankan businesses link with the US markets.”

“You all are presumably small biz and like to access the US market. We have similar biz chambers in the US and we can facilitate you to meet them” said US Rep Delaney responding to WCIC, and added: “As far I know there is no SL-US Business Chamber. Frankly, there should be! Some research needs to be done on this-That is my thinking. I had conversations with Indians in the US over their Ayurvedic products. Their main concern is the Intellectual Property (IP). On the other hand, the registration process for a vitamin supplement is less comprehensive.  There is a lack of IP in this area and I do not have a position with regard to this. What is clear is that addressing these can improve business and trade for both countries.”

In 2013, the US-Sri Lanka economic relations (both trade and investment) stood at $3Billion. Bilateral trade between both countries increased by 21% to $ 2.8 Bn in 2013, compared to 2012. US is the largest buyer of Sri Lankan products, absorbing 23% of total annual exports, of which 73% consists of high end apparels.

Other members from WCIC delegation too chorused: “We want to have a representative in US. If we have link with US Women’s Chambers, it’s easier. We visited Washington, and there are other Chambers such as the Indian Chamber, but no US-Sri Lanka Chamber.”

Minister Bathiudeen, addressing the in-depth discussion said: “I thank Mr Delaney for his important suggestions today at this crucial session. As I am given to understand, the WCIC Chamber members here today are representing such important sectors as gems and jewellery, organic farming, Ceylon Tea, handicrafts and batiks, garments and service outsourcing. Therefore I have no doubts that this is a great opening for the Lankan women businesses, including all SMEs, to enter the US market.”

As global demographics shift in favour of the womenfolk, women are increasingly becoming an important market, as well as business owners and employers. In the period of 2001-2012, Sri Lanka’s female population grew by 11% to 10.46 Million. Reportedly, about 10% of Lankan employers are women. In 2013, Lankan female labour force participation stood at 28%. According to both the International Labour Organisation (ILO) and Asian Development Bank (ADB), women’s entrepreneurship is especially significant in the context of Sri Lanka becoming an “Upper Middle Income” country as female operated businesses-specially SMEs-could cater well to the demands of the rising middle class.