CORPORATE SECTOR
Compiled by Tamara Rebeira
NAVIGATING NEW REALITIES
Jagath Sumathipala urges conglomerates to boldly weather economic storms
Q: How do you view the role of diversified conglomerates evolving in today’s rapidly evolving economic environment?
A: Diversified conglomerates play a crucial stabilising role in turbulent economic climates. In today’s fast changing environment – marked by inflationary pressures, shifting trade dynamics and global market uncertainties – conglomerates offer resilience through sectoral diversity.
The ability to balance risks across multiple verticals enables conglomerates to absorb shocks, sustain employment and support supply chains when single sector companies may falter.
Looking ahead, conglomerates must evolve from being mere business clusters into dynamic innovation ecosystems, bridging traditional industries with emerging technologies and fostering entrepreneurship within their structures.
Q: What macroeconomic or geopolitical trends are having the greatest impact on businesses in Sri Lanka and the region?
A: Several factors are reshaping the business landscape.
Globally, the realignment of trade routes and economic power – particularly strengthening ties within Asia – has created both opportunities and challenges. Regionally, issues such as energy and food security, and access to foreign exchange, remain critical concerns.
In Sri Lanka, the ongoing recovery from the economic crisis is heavily influenced by debt restructuring, policy reforms and IMF backed measures. While these initiatives are necessary, their implementation must take into account the practical realities of doing business – especially for organisations seeking to attract investments, scale innovation and retain talent in a constrained environment.
Q: How important is it for conglomerates to adapt to shifting consumer expectations and digital disruption across industries?
A: It is absolutely vital – today’s consumers are digitally native, value driven and increasingly vocal.
Their expectations are reshaping everything from how products are marketed to how services are delivered. Conglomerates can no longer afford to move slowly.
Digital transformation should not be considered as a cost centre but a growth engine. Whether it’s deploying digital in retail operations, digitising healthcare services or improving customer experience in media and entertainment, technology is integral. The conglomerates that win will be those that fuse agility with scale and culture with code.
Q: In your view, what are the emerging sectors or industries that hold the most promise for future investments and growth?
A: Healthcare, clean energy, digital infrastructure and agri tech are key growth sectors in Sri Lanka and the region.
In the post-pandemic world, health and wellness have come to the forefront, making integrated medical models and preventative healthcare especially compelling areas for investment.
Similarly, the shift towards renewable energy – particularly solar and bioenergy – is inevitable, especially for energy importing nations such as ours. Agri tech presents solutions to food security challenges while digital infrastructure serves as the backbone for everything from logistics to education.
It’s equally important to blend traditional sectors such as agriculture and manufacturing with smart technology, to create sustainable and future ready industries.
Q: What challenges do conglomerates face when operating across such a wide range of industries?
A: One of the main challenges is maintaining strategic coherence while nurturing the unique strengths of each business unit.
Leadership bandwidth, regulatory complexity, talent retention and operational efficiency all become more difficult to manage at scale. In emerging markets, policy inconsistency and infrastructure bottlenecks can further disrupt plans – even for the most robust organisations.
Addressing these challenges requires strengthening governance frameworks, encouraging a culture of ‘intrapreneurship’ and the development of capable second line leadership. Equally important is a commitment to core values, ensuring that every subsidiary aligns with a broader vision of integrity, impact and inclusive growth.
Q: In your opinion, what role should diversified businesses play in driving sustainable development at the national level?
A: Diversified businesses must lead by example. With the resources, talent and reach to catalyse national progress, their role extends well beyond traditional CSR.
It involves embedding sustainability into the core of corporate strategy, spanning everything from ethical sourcing and responsible production, to meaningful community engagement and innovation driven growth.
This includes actively supporting education and entrepreneurship, investing in green technologies and ensuring that business growth does not come at the expense of future generations.
The ultimate goal is not merely profitability but shared prosperity – for people, planet and purpose.
Q: Is there adequate policy support in Sri Lanka for large firms to lead in sustainability, innovation and inclusive growth?
A: While the intent is there, implementation remains patchy.
Sri Lanka has made progress in recognising the private sector as a development partner; however, clearer policy signals and consistency in execution are essential. Large firms require incentives to adopt sustainable practices, regulatory clarity to invest in innovation and public private platforms to scale inclusive business models.
Policymakers must actively co-create solutions with the business community, especially in areas such as financing, digital governance and vocational education. When national goals are aligned with business incentives, the potential for meaningful transformation is immense.
