A TEST OF BUSINESS CONTINUITY
Q: How do you view Sri Lanka’s COVID-19 response so far? What are the pros and cons?
A: The government has taken proactive measures to contain the spread of COVID-19 and strengthen its public preparedness, with aggressive social distancing and stringent lockdown measures implemented across the country. Increased investment in healthcare and public safety, coupled with the establishment of a special task force to effectively coordinate healthcare, containment, quarantine and contact tracing efforts are commendable steps on the part of the state.
While the government has announced financial and economic support to stimulate economic activity and support business workers (in the form of debt moratoriums, concessionary loans, extension of repayment and bill payment deadlines and weekly food assistance for beneficiaries of national welfare programmes such as Samurdhi), there is a need to address challenges in implementation of such proposals including clarity and speed of execution.
A coordinated expansionary monetary policy response from the Central Bank of Sri Lanka – augmenting the government’s relief response and other extraordinary regulatory measures introduced with the aim of supporting affected businesses and individuals, and easing pressure on financial markets – has been a step in the right direction.
While a lot has been done to sustain the economy, there may be a need to provide a stimulus much larger in scale similar to the massive economic support packages announced by other countries.
Q: In your view, how should the authorities balance the twin imperatives of safety and the economy?
A: There is an inherent relationship between public safety and economic activity – without a healthy workforce there can be no sustainable economic productivity.
While the hasty relaxation of physical distancing measures to jumpstart the economy may result in a second wave with a subsequent increase in cases, resulting in more investment needed towards healthcare and related infrastructure, the consequences of prolonged restrictions may have a sustained negative impact on the economy particularly for low income earners.
Therefore, it is pivotal at this juncture to stimulate economic activity and support business workers – particularly individuals relying on daily wages and those in the services and SME sectors.
Given the unprecedented nature of this event, I understand the practical complexities in striking a balance between public safety and economic viability. In this regard, I’m of the view that a response based on a balanced evidence-based analysis, and a participatory and consultative approach particularly with healthcare officials, will be apt at this point in time.
Q: What lessons have we – the business community – learnt from this crisis?
A: Given the volatile and evolving landscape, the need for businesses to remain resilient and agile when confronted with massive change is paramount. The pandemic outbreak has forced businesses worldwide to adopt digital solutions to an extent never envisaged possible.
The pandemic has pushed businesses into unchartered territories by testing the efficacy of business continuity and crisis management plans such as work from home (WFH) protocols. Clear communication with all stakeholders is also critical with a clear definition of roles and processes to be followed.
The opportunity for growth through collaboration and innovation is also pivotal, given that the operating models and assumptions of certain businesses maybe fundamentally changed going forward. The pandemic may act as a catalyst for certain industries in accelerating digitisation initiatives to encompass new process frameworks. Given the early adoption of digitisation initiatives, companies can leverage on expanding digital infrastructure and digitisation efforts to capitalise on this opportunity.
ABOUT LMD’S A LISTERS
BOOST TO REAL ESTATE INVESTMENT
Q: What are your expectations of the business environment in the next 12 months or so? A: With the reduction in interest rates and increase in money circulation, people have a greater tendency to invest in real estate over the money market amidst the pandemic. We have seen similar patterns even in developed markets such…
EMERGENCE OF A NEW ECONOMY
Q: How did the pandemic necessitate a digital economy? A: Countries were not prepared for the COVID-19 pandemic’s impact on the economy and people, but it has resulted in the emergence of a new economy and way of life. It is technology, and the spirit of humans to survive and push past boundaries that have…
PRIORITISING CRUCIAL SECTORS
Q: What are your expectations of the business environment in the next 12 months or so? A: I believe that business is not likely to pick up until at least mid-next year for the hospitality sector. Business was nonexistent and as a measure to prevent exorbitant losses, we converted our hotel into a quarantine centre…
A POSITIVE AND FLEXIBLE PATHWAY
Q: Do you expect the national economy to pick up this year? A: If the third wave of the pandemic is brought under control as soon as possible, then we can expect the national economy to pick up towards the second half of the year. To ensure this happens, the vaccine must be sourced in…
RELIABLE PARTNERS IN A CRISIS
Q: In brief, what are the main challenges confronting corporates at this time? A: I think corporates today are besieged with a plethora of problems caused by the prevailing situation. First and foremost is the challenge in keeping their workers safe from COVID-19, and flowing from that is the inability to keep production cycles running…
IN A STATE OF DELEVERAGING
Q: How do you perceive the economic climate at present? A: I would like to really think about the state that the country’s economy is in. Our debt repayments are much higher than our income and this puts Sri Lanka in a state of deleveraging. This recently manifested itself in a 14.2 percent increase in…
EVER EVOLVING EXPECTATIONS
Q: What modern-day challenges do businesses face? A: Information overload – in the new world we live in, there’s never a lack of information. About 2.5 quintillion data bytes are added every day; more data is created in a single day than the combined amount generated over 99 percent of human history. Previous generations of…
EXPANDING CREDIT FACILITIES
Q: What is the bank’s corporate strategy for 2021/22? A: DFCC Bank’s 2021/22 plan is based on our five year strategy for 2020-2025 with the aim of making it one of the most customer centric and digitally enabled banks by 2025. Our lending plans will align with the government’s budget proposals to facilitate the growth…
REMAINING IN THE SPOTLIGHT
Q: What are Sri Lanka Tourism Development Authority’s (SLTDA) priorities for 2021/22? A: The global tourism industry will continue to experience a huge shift in the way of doing business. Our innovative bio-bubble concept launch in January was recognised at ITB Berlin. We hope this will boost traveller confidence. Therapeutic destinations and experiential travelling are…
