Export of processed food, beverages - fastest growing sector

By Jayampathy Jayasinghe

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The export of processed food and beverages has become the fastest growing sector in terms of export earnings which has a potential for further expansion, the Industrial Development Ministry's, Additional Secretary, R.V.D. Piyatilake told a media briefing organised by the Profoods Propack 2008 in Colombo recently.

He said many Sri Lankan companies in the food processing sector and the tea industry have obtained the HACCP certification as the European market insists on such certification.

Many other companies are in the process of obtaining the certification that will enhance the competitiveness of Sri Lanka's food products in the European market.

The export value of processed food and beverages had increased from Rs. 11.8 billion in 2002 to Rs. 56.8 billion in 2007, a growth of 41 per cent in terms of US dollars.

The Additional Secretary said the Ministry of Industrial Development is working very closely with the Sri Lanka Food Processors' Association, the National Agri Business Council and the Processed Food Initiative (Pvt) Ltd, in promoting and expanding the processed food industry in Sri Lanka.

With regard to the Packaging Industry, the government has reduced the duty on paper and packaging materials.

The Ministry of Industrial Development has appointed an Advisory Committee to uplift the packaging sector to match the present day demand. The government has also set up a bank called Lankaputhra to assist the small and medium enterprises and a special credit scheme has been launched to promote the SME sector.

The ADBIZ/Profoods Propack 2008 exhibition will be held from August 22-24 at the Sirimavo Bandaranaike International Hall to showcase Sri Lanka's food industry.

This year's exhibition will focus on innovation, sustainability and knowledge of the food processing industry.

As in previous years the show will create opportunities for individuals and companies to introduce new products, technology and services.