HAYLEYS
Chairman
Chief Executive
Q: How has the conglomerate managed to be Sri Lanka’s corporate inspiration within the country and globally?
A: Hayleys, a publicly listed company, stands at the forefront of Sri Lanka’s corporate sector today, rooted in its foundational values, principles and fundamentals, which have intricately shaped the group’s illustrious history of over 145 years.
Hayleys is Sri Lanka’s most diversified conglomerate – with business verticals spanning 16 sectors, from manufacturing and agriculture to services, and business interests across five continents and 17 countries.
The group is one of Sri Lanka’s most socioeconomically impactful organisations with an unparalleled footprint across diverse supply chains, agricultural networks, distribution channels and customer segments. The conglomerate generates immense economic value for its diverse stakeholders. This value cascades through local supplier payments, tax contributions, capital investments, employee benefits and dividends, thereby strengthening communities, SMEs, smallholders, business enterprises, investors and the nation.
Hayleys is among the country’s largest value added exporters, earning US$ 590 million in export income, which serves to solidify its global market presence across key industry verticals through an unparalleled entrepreneurial spirit and pioneering approach.
The conglomerate consistently demonstrates resilience, thriving even in tough economic times and achieving steady, sustainable growth. Throughout its history, the group has navigated challenges, seizing opportunities and opening new doors.
Its unwavering commitment to governance and ethics has made Hayleys Sri Lanka’s corporate inspiration and one of the nation’s most respected corporates. This focus forms the bedrock of enduring relationships with myriad stakeholders including valued suppliers, business partners and customers, ensuring positive impacts on social and environmental features across the supply chain.
Q: Could you elaborate on the cornerstones of your group’s legacy over the past three decades – including core values, strategies and principles that have shaped your journey along with significant milestones?
A: Over the last 30 years and particularly the last decade, the landscape of business underwent seismic shifts. We chose not to be passive observers but active architects of change.
Our strategy and overarching aspirations align with our corporate purpose – to inspire an inclusive world and a thriving planet.
Our plans and prospects are clearly defined for the short, medium and long terms, providing a coherent direction for the group. This clarity guides our decisions related to strategic acquisitions and investments.
Innovation, a cornerstone of growth, became more than a buzzword. Across all sectors, a drive towards customer-centric innovation has taken root, fostering a nimbleness to adapt to ever-changing customer dynamics.
The group’s inherent focus on environment, social and governance (ESG) as a part of its management philosophy bore fruit. Clean energy, circular economy initiatives and socially responsible business models took centre stage as avenues for growth and progress.
Hayleys is among the country’s largest value added exporters, earning US$ 590 million in export income, which serves to solidify its global market presence across key industry verticals
Q: What is your outlook for Sri Lanka in the next five years?
A: Sri Lanka’s economy is poised for gradual recovery and growth over the next five years. Stabilising macroeconomic indicators such as interest rates, exchange rates and inflation will be a priority along with the implementation of effective fiscal measures.
Following the IMF’s guidelines and receiving its support will be critical to ensuring financial stability and implementing necessary reforms. Continued emphasis on democratic processes will be crucial for maintaining stability and fostering public trust.
Reforms in taxation are necessary including a review of both corporate and personal taxes.
The export sector remains crucial for economic growth. Sri Lanka must revisit export incentives and benefits to stimulate growth and strengthen the sector.
Tourism – a vital industry for the economy – is recovering well, providing a significant boost.
Additionally, initiatives such as driving digital transformation are imperative for improving efficiencies across various sectors. Investments in renewable energy sources will play a significant role in addressing energy needs and promoting sustainability.
Overall, Sri Lanka’s outlook over the next five years is optimistic, with potential for significant progress in economic stability, social cohesion and infrastructure development.
Q: And what are the most important goals for corporates in Sri Lanka to achieve in the medium term?
A: The challenge lies in outperforming the country’s growth rate despite restrictions in capital markets and the existing sovereign credit rating.
A chief objective should be to leverage both domestic and international markets while adapting to changing consumer demands. Innovating products and services to expand market share and drive growth will be key to success.
Corporates must invest in digital infrastructure, enhance cybersecurity and adopt advanced technologies, such as artificial intelligence, big data analytics and cloud computing, to stay competitive.
Incentives that support the export sector are vital for economic growth. Aligning with global sustainability standards and contributing to societal wellbeing will improve corporate and national images, attracting socially conscious consumers and partners.
Q: How does your group view the talent in the country in the wake of the brain drain?
A: In light of the brain drain phenomenon, our group views the talent within our country as both a valuable resource and a crucial responsibility. We recognise that education serves as a fundamental equaliser in society, offering pathways for individuals from diverse backgrounds to access opportunities.
We strive to foster a supportive and nurturing environment, where employees feel valued, respected and empowered. This includes addressing the needs of the emerging Gen Z demographic while also embracing flexibility, inclusivity and parent-friendly policies in our workplace culture.
By upskilling those sending remittances from overseas and expanding knowledge process outsourcing (KPO) services, we can enhance the inflow of foreign exchange, adding significant value directly to the country with minimal investment.
Q: Can you share your group’s philosophy regarding ESG?
A: The Hayleys Lifecode, our ESG road map to 2030, articulates the group’s commitment to the preservation of the environment, strengthening and empowering our society and communities, and upholding a culture of the highest standards of corporate governance and integrity. It encapsulates the mantra we have used to steer the group through the years, nurturing the legacy that we inherited.
Our group is inextricably interwoven into the socioeconomic fabric of this country, from remote out-grower communities to bustling ports. Be it in response to natural disasters, communities in peril or a relentless global pandemic, the early identification and addressing of these issues have always been part of our way of working. This has enabled us to create enduring value for ourselves and our diverse stakeholders.
Hayleys Group has been a signatory to the UN Global Compact (UNGC) since 2007, and adopted the Global Reporting Initiative Guidelines in 2012/13 as well as the first Code of Best Practice on Corporate Governance from 2009/10 onwards.
Our systems have matured over the years to provide us with comprehensive metrics that cover all sectors, locations and entities for stringent ESG reporting. This complements our financial reporting systems, providing us with a holistic view of our businesses and their value creation, supporting integrated thinking at multiple levels of leadership.
Our accolades speak volumes. We have won the prestigious Best Corporate Citizen award six times. Hayleys is the only organisation to have won for demonstrating overall excellence at the Institute of Chartered Accountants of Sri Lanka’s (CA Sri Lanka) TAGS (Transparency, Accountability, Governance and Sustainability) Awards for two consecutive years.
A proactive signatory to some of the world’s most impactful sustainability frameworks, Hayleys has been highlighted by the UNGC as a proponent of sustainable development.
Sri Lanka’s outlook over the next five years is optimistic, with potential for significant progress in economic stability, social cohesion and infrastructure development
Q: What are your group’s plans for the future?
A: Our vision is to become a net exporter and for sectors that are primarily import driven, we aim to achieve an exchange neutral balance. A prime example is our construction materials sector where we successfully introduced aluminium extrusions as a new export category, substantially boosting foreign exchange inflows for the country.
We are committed to structuring our group to be resilient against financial and other external challenges, minimising the impact of unforeseen local ‘black swan’ events. This involves strategic planning and robust risk management to ensure sustained growth and stability.
Over the years, the digital transformation drive has been accelerated, embracing initiatives such as AI, cloud computing, IoT, machine learning and advanced analytics. This transformation agenda empowers teams to innovate rapidly, adapt to market shifts and expedite product development. Ultimately, its purpose is to shape a digital future that positively impacts lives, enabling people to be at their very best.
Hayleys is heightening its global aspirations and ambitions for the future.
With ecosystems spanning 17 countries and serving 80 markets worldwide, our aim is to strengthen our footprint beyond Sri Lanka’s borders while ensuring that the value created returns to benefit our home country.
The success of the group is driven by the commitment of young talent and wisdom of seasoned leaders – visionaries, innovators and pioneers who will propel the conglomerate forward into the next 30 years and beyond.
– Compiled by Yamini Sequeira
Telephone: 2627000 | Email: info@cau.hayleys.com | Website: www.hayleys.com
