US embassy cable - 04COLOMBO131

UNCLAS SECTION 01 OF 02 COLOMBO 000131 
 
SIPDIS 
 
STATE FOR EB/CBA:DWINSTEAD 
DOC FOR ITA:ABENAISSA 
 
E.O. 12598: N/A 
TAGS: BEXP, ABUD, ETRD, EINV, BTIO, CE, MV, ECONOMICS 
SUBJECT: BFIF FY04 PROPOSALS FOR SRI LANKA AND THE MALDIVES 
 
REF: 03 STATE 347748 
 
1. BFIF funds are critical for Post to carry out 
Commercial activities in two distant, but substantial 
markets with strong potential but little US 
penetration.  Post submits the following projects for 
consideration for FY04 funding.  The proposals are 
listed in priority order under each country heading. 
 
Maldives 
======== 
Priority 1: 
American Fair 2004 Trade and Catalog Show: 
------------------------------------------ 
2. The US is the only country to sponsor an annual 
trade event in the Maldives.  Each year it has been 
bigger and more successful with the number of 
attendees increasing, and a higher public profile. 
Last year, a greater number of resort owners and 
company directors spent significant time in 
discussions with exhibitors and studying the 
catalogs.  A small island nation, the Maldives 
imports all its needs for residents (especially 
consumer and construction goods) and tourists (food, 
beverages, sports and transportation).  Building on 
the Asia New Products Catalog Show, Post invites US 
companies to exhibit, which generates more interest, 
and business, especially for companies highlighting 
environmentally friendly technologies, a featured and 
popular sector. 
 
3. In May, Post reserves the space, and solicits 
firms to participate.  Booth construction begins in 
July, and advertising in August for a three day 
September show.  Expected outcomes include sales or 
projects for the companies represented.  Results for 
firms sending catalogs is harder to measure, but Post 
is confident there are increased sales, judging by 
the time spent by participants studying the catalogs 
and taking notes.  Extra copies of the catalogs are 
also left with the local Chamber of Commerce for 
future use. 
 
4. Estimated costs are: facilities and booth 
construction: $5,000, advertising: $1,500, shipping: 
$2,000, travel $1,500, administration, equipment, 
display products: $1,000. Total: $11,000.  This 
project is mentioned in the FY04 MPP goal, which 
includes expanded exposure to, and adoption of, US 
energy efficient and environmentally friendly 
technologies. 
 
5.  In 2003, FAS New Delhi participated in the Trade 
Show, and helped to support it.  Post expects FAS 
will again participate as well as promote US food 
exporters' participation.  Post does provide 
commercial services and, just in 2003, started to 
charge fees.  These will be used to support 
representational expenses of the opening ceremonies. 
 
6.  Post relies on its partner Post, Chennai, as well 
as FCS New Delhi for guidance and information. 
Success for the trade fair will be judged by sales or 
contracts for companies present, the number of 
visitors, and amount of time spent by them in 
discussion or catalog research.  Post maintains 
contact with exhibitors to follow up on show results. 
 
Priority 2: Sectoral Analysis 
----------------------------- 
7. The Maldivian government is engaged in a multi- 
year expansion/reclamation/development plan, which 
requires extensive construction work.  There is 
potential for contracts for industrial, commercial 
and residential construction and related consulting, 
project work, services, equipment and supplies.  Few 
US firms are aware of these opportunities, and a 
sectoral study will give details sufficient for firms 
to evaluate the market.  This information would be 
distributed through IMI reports, in the Country 
Commercial Guide, to regional Amchams and to US firms 
operating in the region.  The study would be 
completed within four months with an estimated cost 
of  $7,000.  Success would be judged by level of 
interest generated by US firms, and contacts awarded. 
 
Sri Lanka 
========= 
Priority 1: US Yarn/Textile Trade Show 
-------------------------------------- 
8. Sri Lanka's substantial garment manufacturing 
industry imports approximately $1 billion of textiles 
annually, mainly from Asian sources.  There is 
potential for US firms to supply a greater portion of 
that total.  A delegation from the industry plans to 
visit the southeastern US in late winter to explore 
opportunities to source yarn and/or fabrics from US 
suppliers.  To build on this effort, Post would 
organize a trade show of approximately 10 US 
companies in June to generate sales to the Sri Lankan 
market.  The garment manufacturers association has 
given its initial agreement to cover hotel costs. The 
travelers would pay for their own transportation. 
 
9.  Post would provide the advertising, venue, and 
build exhibition booths.  Estimated costs are: hall 
and booths: $1,000, advertising: $3,000, local 
transport: $700, invitations: $300, total: $5,000. 
Results would be measured by partnerships formed and 
sales made.  This is included in FY04 MPP Goal of 
Expanding US Exports - promoting US industry to top 
Sri Lankan sectors, and supporting moves toward an 
FTA. 
 
Priority 2: Sectoral Analyses 
----------------------------- 
10. With the two-year old ceasefire holding and the 
prospects for lasting peace good, substantial donor 
resources for infrastructure projects and strong 
growth in new sectors, trade and investment 
opportunities for US firms in Sri Lanka have 
increased dramatically in the past two years. 
Professional analyses of sectors with the greatest 
potential are critical to inform Econoffs, who will 
include the information in reports, the CCG, 
briefings for US firms, and regional outreach 
efforts.  Sectors which hold the greatest potential 
are tourism, banking and finance, telecom and 
infrastructure. 
 
11.  Post would hire a qualified local to perform 
selected studies over 6 months.  Results would be 
quality products useful for Embassy and private 
sector information.  This is in FY04 MPP Goal, 
Expansion of US Exports - identify top sectors for 
investments, and promotion of opportunities to US 
industry. Estimated cost is $8,000. 
 
12. These proposals have the full support of the 
Ambassador who sees expansion of US commercial 
activities in Sri Lanka and the Maldives as one of 
his highest priorities.  Contact officer for all 
projects is Teresa Manlowe, Econ/Comm Officer, who is 
available at ManloweTL@state.gov.  Post appreciates 
the support is has received in the past and looks 
forward to continuing its commercial plans with BFIF 
funds. 
 
Lunstead