Q: What is your reaction to the announcement by both India and China that they will be assisting Sri Lanka in its debt restructuring process? And do you think this will accelerate the IMF’s disbursement of the Extended Fund Facility (EFF) of US$ 2.9 billion?

A: Debt restructuring is an essential and critical strategy that must be implemented to ensure the long-term stability of our economy. It’s a preliminary step towards the larger economic changes that should be enacted to revive and steer the Sri Lankan economy in the right direction. It is also one of the critical terms of the IMF agreement and the hope is that this will expedite the disbursement of the 2.9 billion dollar facility to Sri Lanka.

Q: The Central Bank of Sri Lanka has decided to maintain interest rates at their present levels. What is your take on this?

A: Interest rates were initially increased to curb inflation. Even though they are still substantially high, the rates appear to be tapering off. However, it also has a negative impact on investments and economic development. It was a necessary evil and some degree of correction had to happen to keep the economy from imploding.

We hope that interest rates will see a gradual reduction as we advance, along with a detailed plan for the sustainability of the macroeconomy.

Q: In your assessment, how is Expolanka Holdings faring in the current financial year, given the ongoing turmoil in key markets across the world?

A: The global economy has been in a state of upheaval for the better part of the past several months as a result of rising levels of inflation and the prominence of geopolitical conflicts. As a direct consequence of this, store inventory levels have remained relatively unchanged, which has led to decreased spending by customers. That has had an effect on our group, as evidenced by the drop in operational volumes that we have observed.

We believe this is a point in time issue as global economies go through these cycles. We’ve maintained a focus on consolidation, growing our customer base, securing business, improving infrastructure and investing in our future. Once economies rebound, we’re well-positioned to benefit from the long-term investments that we have made.

That being said, our performance has been satisfactory despite the challenging environment that we have had to withstand.

Q: How did the team at Expolanka react to the company’s No. 1 ranking in the LMD 100 for 2021/22?

A: The entire Expolanka group has always strived to be the best in everything that it does. We take pride in being market leaders in all the businesses that we operate in. This is an attitude that is entrenched in our DNA. While we were happy with the recognition, it was not unexpected.

Q: In what ways can or should the private sector look to mitigate the impact of the economic crisis without relying on the state to come to the rescue?

A: The private sector is the heart of the economy and the engine of economic growth in the country. It has always remained resilient and robust, and bounced back from adversity. Each business will have its own priorities depending on where it is in terms of maturity and focus. Therefore, a one size fits all approach may not be applicable.

However, some common themes are for the private sector to take a long-term view of its business. In the interim period, businesses should sustain operations and see through these challenging times.

Adversities bring out the best opportunities and businesses should look to leverage them. Investing in technology and people, building efficiencies, establishing partnerships and market presence expansion are critical strategies that can be considered to overcome these challenging times as an economy.

Q: The new income tax rates will make matters worse for working people across the island. Given the callous business environment, can the private sector be expected to bridge the gap between household income and expenditure? If not, what other remedies are there?

A: Employees are the critical ingredient in an organisation’s success; therefore, a responsible company should be able to balance its objectives and identify ways to manage this situation.

The question runs deeper as businesses must look at workforce management strategies to ensure they retain key employees and manage employee migration challenges. Companies must look at this holistically, looking at innovative ways to manage employee burdens, ensure employee welfare and provide motivation.

Q: What are your views on public-private partnerships (PPPs) in the context of national development?

A: PPPs are an essential method of pursuing national development strategies. However, it requires a sense of continuity in public policies and consistency in business facilitation.

Bureaucratic processes and lethargy will act as a deterrent to private sector participation in national development initiatives. Therefore, the framework and environment for such need to be established to ensure these initiatives have the best opportunities for success.

Q: Your vision for the Port City (Colombo International Financial City or CIFC) is…?

A: I hope that the Port City can bring US$ 15 billion in foreign direct investment (FDI) to Sri Lanka and the project can transform the country into an international hub. It could start Sri Lanka’s journey as a truly global player, challenging the likes of hubs such as Singapore and Dubai.

Q: Given your links with Japan, how do rich nations perceive Sri Lanka’s country image at this time?

A: The majority of countries consider Sri Lanka to be a privileged nation with an abundance of skill and resources; as a result, there is a feeling of sympathy towards it. There is also optimism that Sri Lankans will continue to show resilience in the face of adversity and triumph over it as we always have.

It is also believed that the road to recovery is long and has many challenges ahead. Dealing with international investors, we have realised that they require political stability, policy consistency, and law and order to bring confidence to the country.

Q: And finally, are you concerned about the ongoing brain drain and loss of precious talent? If so, what measures can be taken to curtail migration?

A: Yes, I am. As I alluded to earlier, brain drain is a critical issue facing local businesses. Whether service or manufacturing, our industries depend on human capital; it is an essential part of our business operations. If we lose out on the best of talents, we lose out on efficiencies for our business and we may have to rethink some of our business models. It may be another opportunity for companies to innovate themselves.

A holistic HR strategy approach will need to be pursued, covering not only employee benefits but also welfare practices, opportunities and other facilities to retain talented employees. Again, each business may have to consider different options depending on its culture and objectives. However, it would require that firms rethink some of their practices and align themselves with today’s challenges.

– Compiled by Fazmina Imamudeen

Telephone – 4659500 | Email – info@expolanka.com | Website – www.expolanka.com