Sri Lankan SMEs, a key driver of the country’s GDP-are to collect a hefty packaging bonanza, the first such initiative by the state.
“Like in any other country Sri Lanka’s packaging industry too is cross-cutting. Printing and packaging are important elements in branding Sri Lanka to the global markets, especially for our SMEs striving for international markets. Realising this, we have launched new initiatives to strengthen packaging for our SMEs recently” said the Minister of industry and Commerce Rishad Bathiudeen on 14 September. Addressing the launch of Lankapak 2018 the 37 International Packaging & Printing Exhibition in the series, continuously partnered and nurtured by the Ministry of Industry and Commerce since its inception. A strong presence of Indian packaging sector is seen at the event which will conclude on Sunday 16.
The new initiative for SMEs by the Ministry of Industry and Commerce is in two stages and involves Rs 10.3 Mn and close to 150 SMEs as beneficiaries. In the first stage around 100 SMEs were trained and equipped in packaging at a cost of Rs 6.2 Mn. In the planned next stage (2019) another 50 SMEs will be strengthened in packaging at a cost of Rs 4.5 Mn. In addition, yet another project is also being planned by the Ministry to build skills for SMEs especially for promotions and market access.
A great number of Lankan micro and SME enterprises are active in foods -an estimated 40% of Lankan SMEs are based in the food processing sector.
“Like in any other country Sri Lanka’s packaging industry too is cross-cutting. I believe that printing and packaging are important elements in branding Sri Lanka to the global markets especially for our SMEs striving for international markets” said Minister Bathiudeen, and added: “Realising this, we have launched new initiatives to strengthen packaging for our SMEs recently. Though high quality exports packaging is important for competitive international markets, many export items with “cover packaging” and “non-recyclable packaging” are now faced with increasing challenges abroad. Also the international packaging requirements are impacting on our exports. According to the global card firm MASTERCARD, clear packaging instructions and communication can help in effective and improved exports. We have also been seeing more and more innovative packaging solutions that can be re-used. The “post-consumer packaging” is a big challenge we are faced with both in our domestic market as well as export markets. Since the unity government of HE President Maithripala Sirisena and Prime Minister Ranil Wickremesinghe promotes environmentally friendly policies we encourage degradable packaging material in Sri Lanka.”
Lankan SMEs power more than half the Lankan economy with 35% -40% of total employment. Around 60% of all Lankan enterprises are seen as SMEs.
Deputy Indian High Commissioner in Sri Lanka Dr Shilpak Ambule addressing the event said that packaging is as important as the product itself. “Indian packaging industry has become the fifth largest packaging industry in the world. Huge investments in food and FMCGs have boosted the packaging sector in India. Sri Lankan industries partnering with Indian industries through outsourcing is an asset to India. Considerable volume of Lankan exports to India are in food products-such as tea. The process of recognition of Sri Lankan (food testing) labs by Indians has been a long-standing demand by Lankan industry. The Food Safety and Standard Authority India (FSSAI) is currently working on the certification of Lankan labs. We expect growth of export of food products from Sri Lanka to India even further.” In April 2018, a delegation of Indian officials including CEO of FSSAI Pawan Kumar Agarwal, was in Sri Lanka for a stakeholder consultation workshop on Sri Lankan ‘conformity assessment laboratories to test Indian standards and agreed to consider Sri Lanka Export Development Board’s request to register few such Sri Lankan labs (FSSAI has not registered any labs outside India at the time).
In 2017, Sri Lanka’s total trade with India was at US $ 5.1 Bn increasing by 18% from 2017’s $4.3 Bn. Exports from Sri Lanka to India was at US$ 689.5 Million while total imports from India to Sri Lanka was at US$ 4,496 Mn. India ranked as the 3rd largest export destination for Sri Lanka in 2017.