Huge potential for local brands to tap US and Canada
Mr. Nishan K. Silva
While Sri Lanka’s exports is revolving around a handful of sectors that have been in the business for many years, many locally manufactured brands and products have not tapped some interesting markets such as the US and Canada. There is huge potential for Sri Lankan products to reach such markets because of the many raw materials readily available in the country, the skilled human expertise and the strategic location of the country, says Nishan K Silva, Regional Vice President for Pinnacle Impex Corporation in Toronto, Canada.
Mr. Silva, an international trade professional, made these remarks to the Business Times during an interview last week.
He said, “Pinnacle Impex Corporation is a joint venture between Sri Lanka and Canada, where we would tie up with local companies. The whole idea behind this joint venture is to look at the limitations of Sri Lankan brands and products which doesn’t have the certifications required to sell in the US or Canada. Two objectives of the Corporation is to promote Sri Lankan products and providing Sri Lankan expertise in the US and Canada. This Corporation will be a close contact for Sri Lankan companies to make trade links with the US and Canada.”
Most of the products that reach the North American continent are just apparel. There are so many other Sri Lankan brands and products that have not entered the US or Canada, he added.
The company will guide local companies on how to use GSP+ concessions, whereas Sri Lanka has a lot of products which can qualify for GSP+, of course if the standards are met, he stressed. “The company has a mechanism to fix the standards, advice small and medium enterprises on how to become export competitive and how to manufacture according to the standards that are required. This will elevate the quality of Sri Lankan companies in their export competitiveness which is not happening right now,” he noted.
He also mentioned that the Colombo Silk Road Professionals and Industrialists Forum is looking at forming an institute to certify companies to meet the standards of US and Canadian brands. The institute will train local companies on the development of export trade and provide them with professional services. “Though Sri Lanka’s trade balance is moving in the negative trend, there is no international trade development institute to address the negative trends and to capitalize on international trade opportunities for Sri Lanka, purely with the focus of developing international standards. Looking at the historical trends, unless the small and medium enterprises becomes export competitive, Sri Lanka’s trade balance is unlikely to change,” stressed Mr. Silva.
Sri Lanka’s trade balance will not be impacted just by only apparel exports, because apparel is one of the highest imports sector on the other hand. Whatever comes in goes out. Whereas the focus of Pinnacle Impex Corporation is on products of which the supply chain is at least over 60-70 per cent locally concentrated within Sri Lanka.
Sri Lanka is in the region with the highest population which the US or Canada does not have much access to. Looking at Sri Lanka’s economy, approximately two-thirds are import based and mostly one-third is manufacturing for other brands, contrary to having some of the best raw materials generic to Sri Lanka. “Sri Lanka has to further enhance its marketing competitiveness which is lacking at the moment. There is no consistent focused effort put to export any product in order to establish a brand. That should be the focus. The export revenues cannot be guaranteed if not,” noted Mr. Silva.