LMD 100 Q&A

Q: Describe Hayleys’ journey since inception…

A: Hayleys is a leader in sustainable innovation; an essential stakeholder in Sri Lanka’s export led economic revival; and above all, an ethical, purpose led organisation. Since 1878, Hayleys has evolved into one of the nation’s most diverse business conglomerates.

Bold thinking and strategic execution created pioneering enterprises across 16 diverse business sectors, fostering economic growth and contributing to GDP.

Over time, diversification struck a balance between strengthening value added exports, and improving lives through domestic and international engagement.

Ethical business practices, robust governance, a commitment to community wellbeing and adding vitality to grassroots economies through inclusive business models are at its core.

Recognised as the ‘Best Corporate Citizen’ on five separate occasions; ranked number one eight times  in the LMD 100; and currently, awarded a national long-term rating of ‘AAA (lka)’ with a stable outlook by Fitch Ratings post-Sri Lanka’s recent economic crisis, Hayleys continues to stand resilient in its journey.

Despite headwinds last year, the group generated US$ 651 million in foreign currency earnings, accounting for 5.5 percent of Sri Lanka’s total export income in 2022-23, producing value added exports for customers in over 70 global markets.

Q: What is your assessment of Sri Lanka’s economic path, given the multiple crises it faced recently?

A: In the past year, we experienced a series of reforms to address economic challenges faced by the nation on multiple fronts. Sri Lanka must stay committed to implementing vital reforms to retain competitiveness and long-term debt sustainability while maintaining policy consistency.

Building an export-friendly ecosystem and attracting foreign direct investment (FDI) are keys to encouraging reinvestment in the country and forex inflow. Meeting global demand for skilled labour holds significant potential to boost remittances. Access to education remains pivotal to nurturing talent development.

The restructuring of state-owned enterprises (SOEs) is a positive step towards sustaining economic recovery and alleviating fiscal burdens. It’s crucial to benchmark our processes against regional peers excelling in ‘ease of doing business’ indices, to learn from successful models and enhance our overall economic performance.

Q: What are the group’s medium-term priorities?

A: In the midterm, our focus is on stability and growth. As a group, the strategic emphasis remains on achieving an exchange surplus, underscoring our status as a net exporter. We will continue to expand and invest in export sectors while growing our market reach in the US and Europe.

Trade expansion in the Indian subcontinent and development at the Colombo Port as a transshipment hub for regional trade presents a significant opportunity to leverage our transportation and logistics expertise.

The potential for a major rebound in tourism is contingent on a smooth transition aligned with the IMF programme. Renewable energy is another focal point offering investment prospects.

Q: Share some insights into Hayleys’ commitment to good governance and transparency…

A: The group’s strong governance foundations served as an anchor in its 145 year history, enabling resilience through rapidly evolving and dynamic operating conditions.

The board of directors represents a diverse mix of skills, knowledge and industry experience, contributing to the depth and quality of decision making.

Clearly defined governance structures ensure judicious empowerment and monitoring across our listed and unlisted group companies alike, ensuring every entity goes beyond mere compliance to the highest standards of corporate governance.

The group’s commitment to transparency and disclosure is reflected in its track record of setting benchmarks for corporate reporting in Sri Lanka.

Hayleys was awarded the coveted Gold Award for ‘Overall Excellence in Corporate Reporting’ at the 2023 CA Sri Lanka TAGS Awards for the second consecutive year, on top of winning 17 more awards across the group at the same.

Q: How should businesses align organisational performance with governance, and how is this being addressed by your group?

A: Hayleys recognises the crucial link between environmental, social and governance (ESG) considerations, and business strategy.

The Hayleys ‘Lifecode’ serves as the group’s comprehensive ESG road map, outlining our aspirations for 2030 and formalising governance structures, reporting lines and monitoring mechanisms. Aligned with the UN’s Sustainable Development Goals (SDGs), these targets contribute directly to national SDG achievements.

We advocate for comprehensive ESG compliance in our supply chains. This strategic approach not only aligns with sound business principles but also fosters resilient biz models at the grassroots, and opens gateways to new markets and customer segments.

Telephone: 2627000 | Email: info@cau.hayleys.com | Website: www.hayleys.com