* Big foreign players will help open opportunities for local entrepreneurs, boost competition
* Liberalisation move should be accompanied by laws to keep a tab on unruly elements in businesses
Sri Lanka needs to accept diversity and welcome foreign investors or companies that wish to invest in Sri Lanka which will help open up opportunities for local entrepreneurs and boost competition, a key factor to remain in the global market, said Abans Group CEO Sriyan de Silva Wijeyeratne addressing a think tank forum ‘Leading in a VUCA (Volatile, Uncertain, Complex and Ambiguous) World - The Way Forward’ hosted by NiAprenueurs in Colombo last week.
He said many Sri Lankans including businessmen scream, when foreign investors or corporates plan to launch a venture in the country, that indigenous industries and enterprises will be affected and that local entrepreneurs will lose business opportunities.
“On the contrary, we wish to go global and be big players in the international arena. We can no longer take cover inside shells as snails and be competitive in the global market. We cannot be competitive with a closed mentality and being overprotective will not lead to healthy competition. If we shy away from diversity and think only of ourselves it will not help us to go any further as corporates and also as a country. Accepting diversity is essential to build lasting peace and prosperity in the country,” Wijeyeratne said, adding that Sri Lanka needs to tap the best brains and talent here and abroad and use them to develop the economy.
Panelists endorsing Wijeyeratne’s views said that opening up the country for big players overseas will help shake up local entrepreneurs and businesses and challenge them to move away from complacency and ‘comfort’ zones.
However, it was also stressed that any liberalisation move should be accompanied by laws to keep a tab on unruly elements in businesses and constantly monitor and regulate markets.
Trade experts have been reiterating the need for economies to be cautious of being too protectionist as such policies, like those adopted by the current US administration and certain advanced economies in the West are having negative implications on global trade.
Chairperson Jetwing Hotels Shiromal Cooray emphasised the need to fast track the tourism advertising and promotional campaign which has been on the back burner for far too long and is not in any way helping to position the country as a top destination for travel and tourism.
“Usually, a promotional campaign of this nature takes nine to 10 months to have an impact on the industry. Delaying it further will not augur well for the tourism industry which has been adversely battered by the recent terrorist attacks. The moratoriums offered to the industry is a welcome move but that alone will not suffice to get the momentum in the industry going,” Cooray said, adding that the tourism industry globally has been operating in a VUCA world for the past several years.
She said complacency was one of the reasons for the industry to be badly hit by the Easter carnage. However, the situation after the attacks was not as bad as anticipated and added that the industry is rebounding with arrivals picking up gradually.
“We were overwhelmed by the support extended by various local and international parties to put things back in place. I think we must be optimistic and work with an open mind and strategies to be resilient to face any eventuality in the future if the industry is to progress,” Cooray said.
However, panelists noted that things are far from what it should be after the Easter mayhem that has shaken up most industries be it big or small.
Chairman, Chamber of Young Lankan Entrepreneurs (COYLE), Aminda Rodrigo said COYLE has been speaking to all chambers across the country to seek their views as the country is approaching an election time and found that most chambers want nothing but a stable economy for businesses to grow.
“Various sectors have been hit by the April incidents so much so that auditors to conduct exports are reluctant to come to Sri Lanka. Exporters are only one sector but there are others such as the construction industry which has taken a severe hit,” he said.
The need to not only have business insight but also foresight which is crucial to foresee things and take timely and constructive decisions was stressed by panelists.
“Our organisations need a lot more foresight. We must take a cue from animals and adopt measures to be better geared to face situations proactively,” De Silva said.
JAT Holdings Managing Director Aelian Gunawardene said there is much bad mouthing in the construction industry and in other industries too. There is much running down of others to get ahead. Some apartment developers have been unable to sell a single unit for the past four to five months and this is where the support of financial institutions is needed to salvage the small and weak entities.
“Financial institutions need to support the construction industry which is a vital cog in the economy. Sri Lanka has only around 4,000 apartments whereas India as over 11,000 in a single complex and this is because we know how tough it is to get work done by under and semi-skilled workers in the country,” Gunawardene said adding that no community should be alienated over suspicion.
Everyone should help each other and grow as one community if the country is to march forward.
Stax Inc. Managing Director Ruwindhu Peiris said VUCA was coined by the knowledge industry which is growing at a steady pace world over. The IT industry in Sri Lanka generates over US$ 1.5 billion and the take home salary of an employee is high.
“We need to define the future and define what Sri Lanka needs to be 30 years from now,” he said.
The Think Tank forum focused on solutions and what leaders and corporates need to do to successfully navigate in the current economic situation and in a volatile, uncertain, complex and ambiguous world.
The panelists articulated key actions implemented in their respective industries to ensure organisational sustainability to steer during challenging times and elaborated on the need to get the right skills and mind set in place.
The discussion also centred around how family-owned businesses should adopt and react to changes in the business environment, succession planning and transformational change; Board governance, need for induction and training of directors; effectiveness of long standing board members - a hindrance or blessing for innovation; the paradigm of continuous learning, re-learning and unlearning in organisations; how investors see local companies and common challenges faced by them.
The forum was moderated by Dr. Nirmal de Silva.
