VZCZCXYZ0000
RR RUEHWEB

DE RUEHLM #0091/01 0130615
ZNR UUUUU ZZH
R 130615Z JAN 06
FM AMEMBASSY COLOMBO
TO RUEHC/SECSTATE WASHDC 2376
INFO RUCPDOC/USDOC WASHDC
RUEHNE/AMEMBASSY NEW DELHI 9181

UNCLAS COLOMBO 000091 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: BEXP ECON EFIC ETRD CE MV
SUBJECT: BFIF FY06 PROPOSALS 
 
REF: (A) 2005 STATE 215954, (B) 2005 COLOMBO 1814, (C) 
2005 COLOMBO 1914 
 
POST WISHES TO EXTEND ITS APPRECIATION FOR CONTINUED 
SUPPORT OF COMMERCIAL ACTIVITIES IN SRI LANKA AND 
MALDIVES AND PROPOSES THE FOLLOWING ACTIVITIES FOR FY06: 
 
¶1.  US-MALDIVES FRIENDSHIP WEEK: 
 
(A) JUSTIFICATION: THE MALDIVES TRADE FAIR HAS SEEN 
CONSIDERABLE GROWTH OVER THE PAST FEW YEARS IN TERMS OF 
COMPANY PARTICIPATION, COVERAGE, AND SIGNIFICANCE IN THE 
MALDIVES COMMERCIAL CALENDAR (REF C).  IT REMAINS THE 
PRIMARY MEANS THROUGH WHICH US COMPANIES CAN REACH A 
LARGE CROSS-SECTION OF THE MALDIVIAN BUSINESS COMMUNITY. 
 
THE SUCCESS OF THE SHOW HAS SPAWNED ADDITIONAL EVENTS 
AND THIS YEAR LED TO THE IMPLEMENTATION OF THE FIRST US- 
MALDIVES FRIENDSHIP WEEK IN SEPTEMBER 2005 (REF B). 
THIS EVENT BROUGHT TOGETHER MOST EMBASSY OFFICES AND USG 
AGENCIES AT POST, INCLUDING ECONOMIC AFFAIRS, CONSULAR, 
PUBLIC AFFAIRS AND DEFENSE AND HELPED TO STRENGTHEN BI- 
LATERAL TIES BETWEEN THE US AND MALDIVES DUE TO THE 
INCREASED SCOPE OF THE EVENT. BOOK DONATIONS, CULTURAL 
ACTIVITIES, CONSULAR BRIEFINGS, MOVIES, AND A US NAVY 
AIRCRAFT VISIT WERE SOME OF THE ACTIVITIES CONDUCTED 
DURING THE FRIENDSHIP WEEK IN ADDITION TO THE TRADE 
FAIR.  THE AMBASSADOR'S PRESENCE AND SUPPORT OF THE 
EVENT, INCLUDING HOSTING A RECEPTION WITH KEY CONTACTS 
OF THE GOVERNMENT, PRIVATE SECTOR, DONORS, NGO'S AND 
RESIDENT US CITIZENS, REITERATED POST'S COMMITMENT TO 
THE EVENT AS A TOOL TO ENHANCE BILATERAL TIES. 
 
THE 2005 TRADE FAIR COMPONENT OF THE FRIENDSHIP WEEK 
GENERATED USEFUL LEADS TO PARTICIPANT COMPANIES, 
ESPECIALLY IN THE FOOD AND BEVERAGE SECTOR, WATER AND 
PROCESSING SECTORS.  A PARTICIPATING COMPANY HAS 
COMMENCED NEGOTIATIONS WITH THE GOVERNMENT OF MALDIVES 
(GOM) FOR A WATER PROJECT AND SEVERAL OTHER COMPANIES 
REPORTED INCREASED POSSIBILITIES FOR CONTRACTS IN THE 
FUTURE DUE TO THEIR PRESENCE AT THE SHOW (REF C).  US 
FRUITS INCLUDING APPLES, ORANGES AND GRAPES ARE EXPORTED 
TO MALDIVES AS A RESULT OF PRIOR TRADE SHOWS.  MALDIVES 
PRESENTS OPPORTUNITIES FOR US FIRMS OFFERING A DIVERSE 
RANGE OF TECHNOLOGIES WITH ALTERNATE ENERGY, 
ENVIRONMENT, IT, COMMUNICATIONS, ELECTRONICS AND 
CONSTRUCTION BEING PARTICULARLY VIABLE.  FOOD AND 
BEVERAGE IS ALSO AN IMPORTANT SECTOR DUE TO THE TOURISM 
INDUSTRY AND LACK OF DOMESTIC PRODUCTION.  THE 
CONSTRUCTION OF A NEW ISLAND IN CLOSE PROXIMITY TO 
MALE', INTENDED TO EASE CONGESTION IN THE CAPITAL CITY, 
HAS ATTRACTIVE PROSPECTS FOR US TECHNOLOGY, PRODUCTS AND 
SERVICES.  THIS YEAR POST WILL INCREASE PROMOTION OF THE 
EVENT AND STRIVE TO SECURE THE MAIN CONFERENCE FACILITY. 
AS A RESULT, COSTS ARE EXPECTED TO INCREASE. 
 
(B) PLANNING MILESTONES: THE DATES OF THE SHOW WILL BE 
FINALIZED WITH THE CONCURRENCE OF OTHER USG AGENCIES 
INVOLVED IN THE EVENT ONCE FUNDING IS APPROVED.  THE 
SHOW WILL BE HELD IN THE MAIN CONFERENCE CENTER IN 
MALE'.  PROMOTIONAL STRATEGY, LOGISTICS AND RELATED 
ISSUES WILL BE COORDINATED WITH OTHER PARTICIPATING USG 
AGENCIES, EXHIBITORS, THE MALDIVES CHAMBER OF COMMERCE 
AND POST GSO. 
 
(C) ANTICIPATED OUTCOMES: 
  -    ENHANCED VISIBILITY AND RAISE FAMILIARITY OF US 
     PRODUCTS AND TECHNOLOGY AMONG CONSUMERS AND DECISION 
     MAKERS IN GOVERNMENT AND PRIVATE SECTOR 
-    FORMING OF MEDIUM TO LONG TERM PARTNERSHIPS AND 
SALES CONTRACTS BETWEEN EXHIBITORS AND MALDIVIAN FIRMS. 
  -    INCREASED EXPORTS OF US FOOD & BEVERAGE PRODUCTS, 
     TECHNOLOGY AND EQUIPMENT TO CONSTRUCTION, PROCESSING AND 
     ALTERNATE ENERGY/WATER PROJECTS. 
  -    INCREASE IN COMMERCIAL INQUIRIES FROM MALDIVIAN 
     BUSINESSES. 
 
(D) ESTIMATED COSTS: $15,000.00 
 
(E) POST POINT OF CONTACT: RICHARD MERRIN, ECONOMIC 
OFFICER. TEL: 94-11-2448007, FAX: 94-11-2437345, EMAIL: 
MERRINRC@STATE.GOV 
 
(F) POST WILL SOLICIT FUNDS FROM OTHER USG AGENCIES TO 
FUND COMPONENTS OF AMERICA WEEK CORRELATED TO THE TRADE 
SHOW. 
 
(G) PROJECT OUTCOME CRITERIA ARE BASED ON NEW LEADS 
GENERATED FOR EXHIBITORS, NUMBER OF VISITORS ATTENDING 
SHOW AND NUMBER OF CONTRACTS AND SALES CONCLUDED WITH 
MALDIVIAN COMPANIES. 
 
 
(H) FOLLOW UP WILL BE DONE BY CONTACTING EXHIBITORS, 
PURSUING TRADE LEADS, WORKING WITH THE MALDIVES CHAMBER 
OF COMMERCE ON POST SHOW FOLLOW UP IN THE MALDIVES AND 
WORKING WITH FAS AND FCS TO IDENTIFY SUITABLE SUPPLIERS 
AND TECHNOLOGY FOR SPECIFIC REQUIREMENTS. 
 
¶2.  SRI LANKA TRADE PROMOTION 
 
(A)  JUSTIFICATION:  SRI LANKA HAS RECORDED STEADY 
ECONOMIC GROWTH OVER THE PAST FEW YEARS AND PER CAPITA 
GDP REACHED $1,000 FOR THE FIRST TIME IN 2005, WHICH IS 
SECOND ONLY TO THE MALDIVES IN THE REGION. MANY NEW 
PRODUCTS AND TECHNOLOGY HAVE ENTERED INTO THE MARKET 
FROM DIFFERENT COUNTRIES INCLUDING THE US. HOWEVER, US- 
SRI LANKA BILATERAL TRADE IS HEAVILY WEIGHED IN SRI 
LANKA'S FAVOR.  POST PLANS TO PARTICIPATE IN A MAJOR 
TRADE EVENT OR PROMOTION OF US PRODUCTS AND TECHNOLOGY. 
THE EVENT WILL COVER A RANGE OF PRODUCTS INCLUDING 
AGRICULTURAL PRODUCTS WHICH ARE ACTIVELY PROMOTED BY US 
AGENCIES SUCH AS SOUTHERN US TRADE ASSOCIATION, 
CALIFORNIA GRAPE COMMISSION AND OTHER AGENCIES THAT HAVE 
IDENTIFIED THE SRI LANKAN MARKET AS SMALL BUT PROFITABLE 
MARKET WITH POTENTIAL FOR GROWTH. 
 
(B) PLANNING MILESTONES: 
 
THE EVENT WILL BE ORGANIZED TOGETHER WITH OTHER USG 
AGENCIES, COOPERATORS AND POSSIBLY RETAIL CHAINS AND US 
COMPANIES OPERATING IN SRI LANKA OR HAVING 
REPRESENTATION IN THE COUNTRY OR THE REGION AND ARE 
INTERESTED IN PROMOTING THEIR PRODUCTS IN SRI LANKA. 
 
(C) ANTICIPATED OUTCOMES: 
  -    POSITION US AS THE PREFERRED AND PREMIER SUPPLIER 
     OF PRODUCTS AND TECHNOLOGY 
-    CONSUMERS AND DECISION MAKERS WILL BE INFORMED OF 
THE SUPERIOR QUALITY, DEPENDABILITY AND RELIABILITY OF 
US PRODUCTS 
 
(D)  ESTIMATED COSTS:    $10,000 
 
(E)  POST POINT OF CONTACT: RICHARD MERRIN, ECONOMIC 
OFFICER. TEL: 94-11-2448007, FAX: 94-11-2437345, EMAIL: 
MERRINRC@STATE.GOV 
 
(F)  POST WILL REQUEST FOR FUNDS FROM PARTICIPATING 
AGENCIES, COMPANIES AND COOPERATORS TO FUND DIFFERENT 
COMPONENTS OF THE EVENT. 
 
(G)  POST OUTCOME CRITERIA WILL BE BASED ON SUCCESS 
REPORTED BY PARTICIPATING COMPANIES, NEW LEADS GENERATED 
FOR COOPERATORS AND PUBLIC AWARENESS/PARTICIPATION AT 
THE EVENT. 
 
(H) FOLLOW UP WILL BE DONE BY CONTACTING ALL 
PARTICIPATING AGENCIES/COMPANIES/COOPERATORS FOR RESULTS 
AND SUCCESSES OF THE EVENT. 
 
 
LUNSTEAD