Compiled by Ruwandi Perera

THE MIGRATION OF TALENT

Dilshan Rajapaksa is very concerned about the fallout from the brain drain

Q: How is the prevailing economic crisis in Sri Lanka impacting the export sector’s revenue generating potential?

A: The national economic crisis that’s ongoing is seriously impacting the sector as many exporters are struggling to ensure timely deliveries and steady production. This has been exacerbated due to the crippling fuel crisis and staggered power cuts.

In addition to all of this, there is a high degree of absenteeism in workplaces across the country since employees are facing personal difficulties in terms of procuring fuel and gas for household consumption.

Raw material inputs have also been affected due to the depreciation of the Sri Lankan Rupee; and given the nation’s great dependency on imports, there are various shortages on the supply side to meet international demand.

Meanwhile, industries and sectors that depend on certain raw materials – such as clay, rubber and coir, which are sourced solely in Sri Lanka – are garnering higher profitability due to the exchange rate advantage they enjoy.

Sri Lankan exporters have also had to combat the negative image of the nation in the eyes of global market players.

There is a high degree of uncertainty and concern on the part of buyers who have serious doubts about our capacity to deliver – and that is far more dangerous than supply chain related challenges. In fact, customers are diverting orders out of Sri Lanka because they’re worried.

Q: Which exports markets are looking most promising for Sri Lanka today – and why?

A: Sri Lanka used to enjoy a host of great advantages in Europe; and to a great extent, it still does.

Following the pandemic among other reasons, many global businesses wanted to reduce their dependency on China and were considering Sri Lanka. Due to our internal issues however, Sri Lanka couldn’t avail itself of this opportunity, which subsequently passed onto Vietnam and Bangladesh.

In terms of new markets, the ASEAN region is picking up momentum and we are experiencing a growing interest from countries in this part of the world – because they want to minimise their dependency on China.

If we can come out of this crisis in the next few months, Sri Lanka can still make use of these opportunities since they’d probably continue to be available for a considerable period of time.

Q: And how should the export sector leverage digital technology to its advantage?

A: Digital technologies have changed business landscapes across all industries and sectors, and it is the way forward. In relation to the export sector, we are seeing less priority being given to trade fairs and exhibitions, and more emphasis being placed on e-commerce, mobile commerce, and purchases on social media and other digital platforms.

We need to use digital technologies to streamline our manufacturing and distribution processes, as well as the entire supply chain. It’s also needed to uplift Sri Lanka’s image as a manufacturing destination.

Q: What is the state of Sri Lanka’s ta­lent pool – and what are the gaps we should be looking to fill?

A: Sri Lanka has a lot of talent and if the few existing gaps are addressed, there can be a major competitive advantage for the country as a whole. For instance, we need to instil more practical and technical know-how in our school leavers and graduates. While theoretical know­ledge is important, leveraging qualifications with practical exposure is necessary to ensure that a new generation of workers fits into the modern workforce.

And Sri Lanka also needs to invest in more technical colleges and institutions that provide short, work-oriented training program­mes.

Q: Are there any interventions that can be carried out to foster export entrepreneurship?

A: It is not difficult to become an exporter since accessing the world market is relatively easy these days thanks to digital technologies. We’re seeing a lot of newcomers, as well as new products and ventures; and encouragingly, there are many women entrepreneurs emerging.

The gaps are in marketing, positioning, targeting and digital inclusivity. For instance, simple tools such as payment gateways are not accessible to many entrepreneurs; therefore, they’re unable to make use of platforms such as eBay and Amazon to take their products to the world market.

Q: And last but not least, what are the most significant aspects about which businesses such as yours should be mindful given the prevailing economic situation?

A: Retaining talent will be crucial. There is a huge brain drain taking place at this time due to the migration of workers and their families, following concerns over the bleak economic future that Sri Lanka is facing.

When we lose talent, we’re left with a dearth of creativity and low innovation potential. Sri Lanka is losing much of its skilled workforce that can contribute productively and efficiently to national development. To develop the remaining talent pool, we will have to invest heavily in training. But there is no guarantee that these trainees will remain in the country.

There are so many ripple effects to the current brain drain – and honestly, the future seems very challenging.

The interviewee is a Director of DSI Samson Group