FABRIC & GARMENT ACCESSORIES EXPO SRI LANKA

23 – 25 June, 2011, SLECC, Colombo, Sri Lanka

Market Information

SALES CONTACT CP Exhibition Hong Kong Head Office Add: Room 1703, 109 Gloucester Road, Wanchai, Hong Kong Tel: +852 25117427 Fax: +852 25119692 Attn: Mr. Jason Chow Email: jason@cpexhibition.com

FACTS ABOUT THE EXPO HOTEL SUPPLIES EXPO SRI LANKA Expo Date: 23 – 25 June, 2011, SLECC, Colombo, Sri Lanka Expo Venue Sri Lanka Exhibition & Convention Centre (SLECC) Add: 12 D R Wijewardana Mawatha, Colombo 10, Sri Lanka International Organizer and Sales Coordinator CP Exhibition Hong Kong Head Office Add: Room 1703, 109 Gloucester Road, Wanchai, Hong Kong Tel: +852 25117427 Fax: +852 25119692 Website: www.cpexhibition.com Email: cp@cpexhibition.com Sri Lanka Event Manager PICO Sri Lanka Sri Lanka Exhibition & Convention Centre CP Exhibition - Pioneer in China and Vietnam China Promotion Ltd (CPL) / CP Exhibition (CPE) was established in Hong Kong in 1976. Its major business activity is organizing exhibition in China and Vietnam. With the head office in Hong Kong, it also has branch offices in Beijing, Singapore, and Vietnam; and representatives’ offices in 14 countries. China Promotion Ltd (CPL) launched its first exhibition in China since 1980. Its famous show includes "Aviation Expo/China", “China Police Expo”, “Shanghai Metal Expo” etc. In 2006-8, CPL joined with Hong Kong Trade Development Council to organize the first event of “Hong Kong International Medical & Health Care Fair” Being the pioneer, CPE first entered Vietnam in 1990 with major events in Hanoi and Hochiminh City, e.g. the largest exhibition in Vietnam “Textile and Garment Machinery” follow by “Oil/Gas and Electricity”, “Medical and Beauty” and “Coal, Mining and Metal” expo. Cost of the Expo Furnished Constructed booth: USD 375/sqm Raw Space: USD 325/sqm (min of 27 sqm)

SLECC

SRI LANK – ONE OF THE FASTEST GROWING MARKET IN THE WORLD Bloomberg: Sri Lanka's Colombo Stock Exchange cited as world's best performing bourse

Sri Lanka’s bourse – Colombo Stock Exchange (CSE) set another record on Friday, with Bloomberg citing the Colombo Bourse as world's best performing share market outshining its own previous stint as 'world's second best bourse'.

CSE emerged the best performing market in the world, up 110.9 percent year to date (ytd) beating Mongolia at 109.7 percent, according to Bloomberg newswires data of October 1. Another South Asian country-Bangladesh came at a distant third at 56.4 percent

Colombo Bourse's benchmark All Share Price Index (ASPI) was up 150.56 points or 2.15 percent closing at 7,147.77, on Friday stabilizing over the 7,000 mark for the first time. The more liquid Milanka Price Index (MPI) closed at 7,829.05, up 276.35 points or 3.66 percent.

Turnover for the day was Rs. 6,019 million while market capitalization of Rs. 2.4457 trillion, at the end of trading, was also the highest market capitalization recorded in the history of the CSE, compared to 1,210.8 billion as at March 31, 2010.

Analysts say that before long CSE's market capitalization would hit Rs. 2.5bn mark.

Earlier Bloomberg ranked CSE as the ‘second best performing stock market in the world’ for the year 2010 to date while the Colombo Bourse was already named the second best performing stock market globally for the year 2009.

CSE’s record comes as another victory for the Indian Ocean island which although had been torn apart by the thirty year bloody civil war, is now emerging as the 'wonder of Asia'.

(Soruce: Asiantribune - www.asiatribune.com: By Santhush Fernando on 3 October, 2010)

GARMENT INDUSTRY OF SRI LANKA

Garment sector is the biggest export sector of Sri Lanka. The recent high growth rate of the industry will drive the demand for fabrics,

accessories, materials, garment and textile machineries The apparel industry of Sri Lanka which producing high quality readymade garments and the main exporters are USA and Europe..

The apparel sector generates nearly 45% of the country’s export earnings. The sector provides direct employment to over 350,000 people and extends its benefits to over a million and keeps the rural economies alive.

There are about 900 factories throughout country serves different world's leading fashion designing companies around the world. Most factories meet up to compliance demanded by the buyers and as a result big names in the apparel world like Marks and Spencer, GAP, Tommy Hilfiger and many more others have made Sri Lanka their reputed source of ethical products. The industry is supported with an array of Training facilities from sewing machinists to designers and CAD/ CAM operators.

In a country rich in its Culture, the industry employs almost 90% women. Sri Lanka is one of the few countries in the world and the first in the region to comply with the standards and regulations of the World Trade Organization (WTO) vis-a-vis non-discriminatory policies towards trade, rules of origin, settlement of disputes according to prevailing international laws, drafting suitable legislation relating to intellectual property, trademark, patents and the adoption of best labor practices.

Cutting-edge technology including machinery for seam-sealed outerwear, seamless leisurewear and underwear; automated cutting; CAD-CAM and other processes are being used by manufacturers in Sri Lanka.

Garment exports aims at $5 bn by expanding markets Garment sector, which is the biggest export industry of Sri Lanka, has set a target to generate US $5 billion business by the year 2015, even though it witnessed losses due to the withdrawal of GSP Plus duty free facility to the EU, which is the country’s biggest export market. As per the former Secretary General of the Joint Apparel Association (JAAF), Mr. M.P. Tuly Cooray, who was addressing a seminar titled “GSP+, Clothing Industry in Perspective”, improving competitiveness will help the industry to achieve this target. The seminar was organized by the Brandix College of Clothing Technology. The value addition of the garment industry has grown from 30-35 percent to 60-65 percent. Before the suspension of GSP Plus Scheme, garment exports to the EU increased up to $1.6 billion last year from $1,025 million in 2005. In order to alleviate GSP Plus concession loss, entry into free trade agreements (FTAs) could prove helpful, he added. India has FTAs with the EU and Singapore, Japan has it with Vietnam and also an Economic Cooperation Agreement with Indonesia, under which garments worth around $3-4 billion were exported to Japan. Japanese clothing market alone accounts for around $24 billion. The loss of GSP Plus concession would be counterbalanced, if the country can export $300 million worth of products or one tenth of the Indonesian exports to Japan, stated Mr. Weerasinghe. News clip from Fibre2fashion News Desk - India September 13, 2010 (Sri Lanka)

BASIC INFORMATION OF SRI LANKA Geography Area: 65,610 sq. km. (25,332 sq. mi.); about the

size of West Virginia. Cities: Capital--Colombo (pop. est. 1.3 million--

urban area). Sri Jayewardenepura-Kotte is

the officially designated capital and is the

site of Parliament. Other cities--Kandy

(150,000), Galle (110,000), Jaffna (100,000). Terrain: Coastal plains in the northern third of country; hills and mountains in south-

central Sri Lanka rise to more than 2,133 meters (7,000 ft.). Climate: Tropical. Rainy seasons--light in northeast, fall and winter, with average rainfall

of 50 in.; heavy in southwest, summer and fall, with average rainfall of 200 in.

People Nationality: Noun and adjective--Sri Lankan(s).

Population: 21.3 million.

Annual growth rate: 0.9%.

Ethnic groups (2002): Sinhalese (74%), Tamils (18%),

Muslims (7%), others (1%).

Religions: Buddhism, Hinduism, Islam, and

Christianity.

Languages: Sinhala and Tamil (official), English.

Education: Years compulsory--to age 14. Primary

school attendance--96.5%. Literacy--91%.

Government Type: Republic.

Independence: February 4, 1948.

Constitution: August 31, 1978.

Suffrage: Universal over 18.

Branches: Executive--president, chief of state and

head of government, elected for a 6-year term. Legislative--unicameral

225-member Parliament. Judicial--Supreme Court, Court of Appeal,

High Court, subordinate courts.

Administrative subdivisions: Nine provinces and 25 administrative

districts.

Economy

GDP: $41.32 billion. (2009 est.)

Annual growth rate: 3.5%

Currency: RUPEE

Exchange Rate: 1 US Dollar = 113.49 Sri Lanka

Rupee ( Rate from Yahoo as at 17

Jun, 2010

Natural resources: Limestone, graphite, mineral sands,

gems, and phosphate.

Agriculture: Major products--rice, tea, rubber, coconut, and spices.

Services (58% of GDP): Major types--tourism, wholesale and retail

trade, transport, telecom, financial services.

IndustryMajor types--garments and leather goods, rubber products,

food processing, chemicals, refined petroleum, gems and jewelry,

non-metallic mineral-based products, and construction.

Trade: Exports--$7.0 billion: garments, tea, rubber products, jewelry

and gems, refined petroleum, and coconuts. Major markets--U.S.

($1.54 billion), U.K., India. Imports--$9.6 billion. Major suppliers--

India, Singapore, Hong Kong, China, Iran, Malaysia, Japan, U.K.,

U.A.E., Belgium, Indonesia, South Korea, U.S. ($283 million).

SPECIAL ADVANTAGE OF SRI LANKA 1) High Quality of Life Education - Sri Lanka offers a variety of educational facilities ranging from public and private educational establishments to international schools following British and American curricula. Besides, language education in French, German and Japanese is also available through various educational institutions. Medical Facilities - Sri Lanka has a number of well-equipped public and private hospitals located throughout the country Housing - A wide range of housing and accommodation is available, to suit different lifestyles. Entertainment - Sri Lanka offers a wide variety of entertainment from its theatre and movies to the nightclubs and casinos, which are located throughout the capital city, Colombo. Numerous restaurants, cafes and pubs offer a range of both western and eastern cuisines. Public Holidays - Sri Lanka being a multi-religious, multi-ethnic country, has a number of public holidays 2) Solid Infrastructure Private and public investment program have been implemented to improve the country's basic infrastructure facilities. Today, Sri Lanka's infrastructure ranks as the best available in South Asia. The government is actively encouraging private sector investment in infrastructure on the basis of BOO (Build, Operate and Own) and BOT (Build, Operate and Transfer). Currently there are private investment projects in power, ports, water sanitation, transportation (highways and rail) and IT. 3) Attractive & Transparent sri Lanka has an enviable record of political credibility in the international arena. All major political parties are committed to free enterprise and individual freedom. The government has never defaulted nor requested rescheduling of any of its international obligations. Significantly this protection extends to foreign investors.

Bilateral investment agreements supported by a constitutional guarantee, provides strong protection for foreign investment for Sri Lanka. 4) Highly Literate & Cost Competitive Labor Force The Sri Lankan work force accounts for 35% of the total population. Sri Lanka boasts high levels of education. We have the highest literacy rate in South Asia (92%) and approximately 50% of the students who have completed their higher education are trained in technical and business disciplines. English is widely spoken in the country and is the main language used by the business community. In addition, according to the World Bank Development Indicators 2000, Sri Lanka has the lowest labour cost per worker in manufacturing. 5) Strategic Access to the Indian Market The Indo Lanka Free Trade Agreement clearly demonstrates the political goodwill and commitment between India and Sri Lanka. The agreement creates multiple investment opportunities for local and multinational firms based in Sri Lanka seeking to enter the Indian market. The underlying premise of the agreement is to create a free trade area through the complete or phased elimination of tariffs, which will occur over defined phases. 6) Open Economy Today, Sri Lanka is ranked as the most liberalized economy in South Asia. Investors are provided with preferential tax rates, constitutional guarantees on investment agreements, exemptions from exchange control and 100% repatriation of profits. Total foreign ownership is welcome in almost all areas of the economy, with only a few areas limited or restricted to foreigners. 7) Regional Trading Hub Sri Lanka is strategically located at the cross roads of both east and west sea routes and serves as the point of entry to South Asia.