Sri Lanka’s food sector is dynamic – and though it has faced several challenges in recent years, it’s proving to be resilient, the Chairman of Asriel Holdings Shiran Peiris asserted, during a recent LMDtv interview.

“The sector is still very strong in spite of the challenges it has faced over the past three years, beginning with the pandemic and then the economic crisis, and the global freight and shipping challenges too,” he explained.

He continued: “Because sector players came to the forefront, and proved their commitment to consumers and the country, we are seeing steady growth today and things are looking up.”

Nonetheless, there are headwinds on the horizon, he added: “In addition to the tariff war, there are other regional events such as the conflict between India and Pakistan. This will impact Sri Lanka since we’re dependent on these countries for most of our food produce such as onions, dhal and potatoes etc. So it’s going to be challenging for us if the conflict escalates in the future.”

Peiris emphasised that “we need to find alternative solutions. Self-sustenance is the ultimate goal but it can’t be achieved overnight. Meanwhile, the sector can’t let down customers in the process.”

He elaborated: “For instance, if we can’t import potatoes from India, we will need to look to Bangladesh. And while we’re developing our supplier end, the local supply chain departments are going to be tested once again. They have been tested ever since COVID-19 and they’ve done an amazing job so far. So it’s very important for Sri Lanka to source alternative suppliers.”

Businesses must also be proactive, Peiris urged: “While you have one team focussed on finding solutions to challenges brought on by the tariff war, you need to have three teams focussing on opening up new markets – that’s where your growth comes from. At the end of the day, you need to manage your risks and risk-proof your business. Whether it’s a business or country, you can’t put all your eggs into one basket.”

As he explained, “challenges bring opportunities, which in turn bring out the creativity in people; and innovativeness will help enterprises grow in the long term. Businesses that can thrive during challenging times such as these will be unstoppable in the future – challenges are a test of fire.”

Peiris also highlighted the need for Sri Lanka to be self-sufficient in its food supply, suggesting that “we should consider sustainable programmes for our agriculture sector – so that we can save the money spent on importing produce from neighbouring countries.

Another challenge is retaining the best talent in the country. He spoke about Sri Lanka’s ability to breed quali­ty talent and said: “Sri Lanka produces some of the best talent because we build quality; but we need to find a mechanism to retain that quality.”

He observed: “For example, some of the best chefs in the Middle East are Sri Lankan but because they’re not paid according to their potential and not given opportunities, they leave the island and go on to do amazing things overseas. We have to find ways to retain these people.”

Peiris also highlighted the need for creativity: “Companies have to be innovative like never before. Take the example of the viral Dubai chocolate that has led to a shortage of pistachios across the world. It’s all because one lady decided to do something different – creativity is essential.”

“Another important factor is distribution. It doesn’t matter how good or attractive your product is because if it doesn’t reach the consumer, it won’t succeed. Companies that invest heavily in brand building need to ensure that customers can purchase their products with ease,” he pointed out.

Peiris concluded: “I strongly believe that Sri Lanka is on track to achieve growth. We will always bounce back because this is an amazing nation with remarkable people. I am confident that the only way this country is going is upwards.”