HAYLEYS

Q: What are the key achievements of your group over 2022?

A: Hayleys performed well in the first half of financial year 2022-23, amidst domestic and global challenges. Our teams worked hard to enhance our nation’s reputation as a global pioneer in specialised and sustainable high quality exports.

Our tea exports, hand protection and textile businesses expanded their footprints in Europe through acquisitions and partnerships to take Sri Lankan innovations to the world.

Hayleys Fabric’s natural mahogany dye initiative made the global ‘Top 10 Innovations’ list for the world’s most innovative, high-performance fabrics (ISPO) and surpassed global giants to win a prestigious Sustainability Impact Award at the CQI International Quality Awards 2022 in the UK.

Our group’s companies were honoured for their resilience and nation-mindedness, earning 20 accolades at the National Chamber of Exporters (NCE) of Sri Lanka Export Awards. The principles of transparency, accountability, governance and sustainability are at the core of how we run our businesses across 16 diversified sectors.

At the CA Sri Lanka TAGS Awards 2022, Hayleys consolidated its position as a national leader in financial and sustainability reporting, and good governance, winning 14 awards across the group including the prestigious Gold Award for Overall Excellence in Corporate Reporting.

Q: And what is the role of corporates in Sri Lanka’s economic revival?

A: Macroeconomic stability is essential to secure stronger confidence in Sri Lanka. Strategic priorities must be refreshed and closely aligned with Sri Lanka’s focus on being an export driven economy while ensuring uninterrupted supply chains and honouring commitments to global markets. Business continuity, strong governance mechanisms and a shared goal to strengthen our nation’s position are vital.

Our foremost priority is earning foreign exchange to keep the wheels of the economy turning. Corporates must uplift employee morale, support wellbeing and focus on upskilling to navigate the brain drain being witnessed currently.

Q: How can Sri Lanka improve its ease of doing business and competitiveness?

A: Consistent government policies play a key role in shaping business outcomes. We need to benchmark our processes against regional peers who rank high on the ease of doing business index.

Systems for business approvals should be fast tracked and digitalised to enable stronger investor engagement. It is paramount that Sri Lanka leverages its public sector manpower to provide seamless year-round services.

Q: And how is your group faring under existing macroeconomic conditions?

A: Times are tough and harsh. We are extremely mindful of the need to maintain our competitiveness in global markets amid current interest and fixed exchange rates, substantial increases in input costs due to inflation and an impending global slowdown. Price escalations have affected consumer affordability and shrunk demand. Increases in tax rates mean profits available for reinvestment will reduce.

Our management teams have ensured the right systems, controls and governance principles to navigate macroeconomic headwinds. We increased our reliance on local sourcing, supporting our ecosystem of smallholder value chain and channel partners, and distributors.

Q: How are you adapting in a post-COVID-19 world?

A: Post-pandemic, our focus shifted to addressing pressing economic concerns. Group-wide measures were taken to cushion employees from fuel shortages and food inflation. We secured employee mobility, enabling business continuity.

Virtual factory visits facilitated engagement with export buyers. Initiatives to build a learning organisation continued undeterred including Sri Lanka’s first ever Plantations Management Symposium and the ideation programme ‘Advantis Ideastorm.’


Mohan Pandithage
Chairman
Chief Executive

These measures helped us leverage innovation, drive value and meet customer obligations, on time and in full.

Q: Do organisational performance and environmental, social and governance (ESG) go hand in hand? If so, how is this being addressed by your group?

A: A proper ESG strategy complements organisational performance by preemptively and transparently indicating risks and opportunities around environmental and social impacts, and key governance issues.

ESG strategies and targets contained in the ‘Hayleys Lifecode’ empower our sectors to formalise and systematise the mindset, values and ethical principles on which our organisation was built.

Action has followed – from value added innovations such as low carbon aluminium for export markets and Advantis Blue C, which leverages our deep marine and engineering expertise, to help conserve and replenish coastal ecosystems.

The world is looking at sustainable solutions. We must be on the frontiers to grab these growth opportunities – driving economic value and strengthening a country-wide ethical, sustainable and climate friendly positioning.

Macroeconomic stability is essential … Strategic priorities must be refreshed and closely aligned with Sri Lanka’s focus on being an export driven economy

Telephone 0773 033025 | Email ashan.jayatilaka@ccu.hayleys.com | Website www.hayleys.com