Shilpa Udana, a boost for craft industry

by Jayasiri Jayakody

The Shilpa Udana National Craft Festival organised annually by the National Crafts Council (NCC) and the Export Development Board of Sri Lanka (EDB) will be held from August 28 to 31 at the Sirimavo Bandaranaike Memorial Exhibition Centre, Colombo.

The Shilpa Udana Trade Fair will comprise around 130 stalls along with cultural events, demonstrations, activities, seminars, craft promotions, design promotion programs and registration of new craftsmen among other sub-events.

The EDB is boosting the efforts of the NCC in organising this exhibition which is organised annually to showcase the talents of craft manufacturers and provide them with a common platform to promote their products given the importance of developing the craft sector to upgrade the industry to cater to the international niche markets.

Sunday Observer Business interviewed the Chairman and Chief Executive, EDB, Bandula Egodage on the role of the EDB in the exhibition.

Excerpts of the interview.

Q. What is the contribution of the crafts and giftware sector to the economy?

A. The crafts sector plays a vital role in the economy of the country and the industry directly contributes to the social upliftment of the rural community and assists in bringing the talents and abilities of the rural sector into the export stream of the country.

The craft sector in Sri Lanka is mainly a cottage-based industry comprising small and medium entrepreneurs. Further, craftsmanship is inherent to Sri Lanka's craftsmen and the country's resources provide the base for a wide range of giftware and decorative articles.

The industry mostly uses locally available raw material such as clay, wood, rush and reed, bamboo, coconut fibre, cane, metals, minerals, paper, wild grass, stone, handlooms among other things for the production of handicrafts. The range of products includes arts and crafts, household accessories, soft and wooden toys, fashion accessories, furnishing, terra-cotta pots and vases and porcelain figurines among other things.

This sector mainly targets the niche export market due to the exclusivity and uniqueness of the products. The main export markets are the United States of America, Japan, Germany, Italy, France, Switzerland, the United Kingdom, Australia and the Netherlands.

Q. What does the EDB hope to achieve from the exhibition?

A. This event will symbolise the collective creativity of the craftsmen and help to uplift their living standards through reliable trade links set up at the exhibition. A majority of companies and craftsmen engaged in the value chain of the craft and giftware sector in Sri Lanka will be displaying their products at this exhibition.

This would be an ideal platform for the giftware manufacturers who have been developed through various product development programs implemented by EDB to showcase their capabilities. This event will also give the EDB an opportunity to identify potential SMEs to be developed to cater to the international market and assist them to link up with established exporters in the craft sector and explore export opportunities.

This exhibition would be a step towards enhancing the image of the country as a supplier and a producer of quality exclusive craft products well accepted in the niche export market.

Q. Being the apex organisation for the development and promotion of exports, what are the steps taken by the EDB for the promotion of the craft and giftware sector in Sri Lanka?

A. The EDB is constantly on the lookout for new and innovative approaches to focus on the ever-changing needs of the international market.

The EDB has been instrumental in implementing a number of product and market development programs which has contributed immensely towards the development of exports. We carried out a number of product design and supply development programs for the sector mainly targeting the traditional craft villages such as Hapuvida, Pilimatalawa, Menikhinna, Thalagune, Magalle, Koularan and Marathumunai.

The EDB also obtained the services of a design and product development experts from countries such as the United States of America, the United Kingdom and the Philippines to develop the crafts of Sri Lanka to suit the international market. As a result of a number of development programs undertaken by the EDB and relevant institutions, craft and giftware from Sri Lanka is now a combination of traditional skills and modern technology.

Final artistic touches are given by the deft fingers of expertly skilled hands to ensure the uniqueness and the exclusivity of the product.

The EDB also implemented a giftware development program over four years, keeping in line with the budget proposal submitted in 2006.

The main objective of the program was to build a second tier of exporters who could cater to the niche export market and the ancillary objectives of generating more opportunities for youth and thereby uplift their living and social standards by increasing income levels.

Q. Have you identified definite segments where improvements are needed to boost craft and giftware sales in overseas markets?

A. We have to widen the market focus of identified export industries with high value addition to position and differentiate our products in the international niche market place.

Therefore, it is important for Sri Lanka to build fashion and creative cultures that innovate new products, business models and services. This is especially so for the apparel sector which is the forerunner of export industry of Sri Lanka and the creative craft industry which plays a vital role in the economic mainstream of the country.

Both these sectors have to be placed in the niche export market where fashion, brands, differentiation of products and manufacturing compliance plays a major role.

Q. Has the EDB introduced new marketing concepts for the craft and giftware sector?

A. Sri Lanka is blessed with a variety of natural raw materials and skilled craftsmen. Sri Lanka would benefit immensely by obtaining a premium price for our crafts and giftware if they are marketed under popular marketing concepts such as 'eco-friendly', 'green label', 'ethical manufacturing' and 'social responsibility'.

All these marketing concepts are now within the ability of Sri Lanka craft manufacturers, due to the development programs undertaken by the EDB.

The EDB recently commenced a 2-3 year program to introduce and implement the Fair Trade concept to the craft sector.

The first and second stages were implemented in 2013 and this year. Nine companies are now in the process of applying for the Fair Trade label.

Q. What are EDB's plans to develop the crafts and giftware sector?

A. The EDB's future plan is to produce internationally competitive exclusive products for the niche export market.