PARADIGM SHIFT IN THE BIZ MINDSET
Q: What is the outlook for jobs and employment in the medium term? And how should the authorities address the prospect of rising unemployment?
A: Due to the COVID-19 outbreak, several key industrial sectors including tourism, travel, hospitality, manufacturing and exports have been affected. This is not withstanding the numerous SMEs and micro-enterprise segments, as well as other informal sectors. Reports that some Middle Eastern countries have terminated the contracts of Sri Lankans and requested them to return to their homeland suggests that remittances too might be affected in the medium term – at least until the situation recovers.
While retrenchments and pay cuts will add to the burden on employees and businesses alike, those affected should not wait for handouts and welfare. Instead, they should retrain, reskill and move on to a new industry, and make use of the new evolving opportunities that will arise. The authorities can play a significant role in this regard.
We in the life insurance industry are looking to recruit some of those affected who will be compelled to change sectors.
Q: What lessons have we – the business community – learnt from this crisis?
A: In our experience and although the company has over 800 employees, we worked from home with 500 or so of them in April. This offers some direction for the future as things develop. While we had already made an effort to digitalise operations especially for teams in our sales force, the learning process has been accelerated across the board.
For the insurance sector in general, the collection of premiums by agents has been a challenge. From what have seen so far however, customers and agents have responded favourably to the call for online payments. While promoting the purchase of life insurance online has been a challenge for a long time even preceding the COVID-19 outbreak, there has been an encouraging response through this channel.
In general, the manner in which meetings and training will be conducted in the future will undergo a transformation, resulting in substantial cost savings and greater efficiency. Furthermore, supervision as a whole will undergo a transformation.
Q: How do you see the ‘new normal’ for business panning out?
A: The lessons cited above should set the tone for the ‘new normal’ in business. While our fundamentals will remain the same, business processes will change. The crisis showed some organisations that they have been paying lip service to digitalisation and not embraced it adequately. The importance of crisis plans, back-up systems, basic health and safety precautions among other elements are better understood now – and hopefully, business will not fall victim to complacency when normality returns.
Similarly, the curfew demonstrated the importance of creating and nurturing a culture of innovation and adaptability. If companies heed the call, there will be many changes to how products and services are delivered in future.
Being agile has helped some companies not only survive the crisis but convert the limitations posed by the virus into opportunities. Businesses should also look at ways to reduce the dependency of their staff on public transport or have access to alternatives in times of crisis.
Overall, the new normal should encompass a mindset of operating as if another crisis is around the corner with all staff at all levels adequately prepared to contain its impact.
ABOUT LMD’S A LISTERS
BOOST TO REAL ESTATE INVESTMENT
Q: What are your expectations of the business environment in the next 12 months or so? A: With the reduction in interest rates and increase in money circulation, people have a greater tendency to invest in real estate over the money market amidst the pandemic. We have seen similar patterns even in developed markets such…
EMERGENCE OF A NEW ECONOMY
Q: How did the pandemic necessitate a digital economy? A: Countries were not prepared for the COVID-19 pandemic’s impact on the economy and people, but it has resulted in the emergence of a new economy and way of life. It is technology, and the spirit of humans to survive and push past boundaries that have…
PRIORITISING CRUCIAL SECTORS
Q: What are your expectations of the business environment in the next 12 months or so? A: I believe that business is not likely to pick up until at least mid-next year for the hospitality sector. Business was nonexistent and as a measure to prevent exorbitant losses, we converted our hotel into a quarantine centre…
A POSITIVE AND FLEXIBLE PATHWAY
Q: Do you expect the national economy to pick up this year? A: If the third wave of the pandemic is brought under control as soon as possible, then we can expect the national economy to pick up towards the second half of the year. To ensure this happens, the vaccine must be sourced in…
RELIABLE PARTNERS IN A CRISIS
Q: In brief, what are the main challenges confronting corporates at this time? A: I think corporates today are besieged with a plethora of problems caused by the prevailing situation. First and foremost is the challenge in keeping their workers safe from COVID-19, and flowing from that is the inability to keep production cycles running…
IN A STATE OF DELEVERAGING
Q: How do you perceive the economic climate at present? A: I would like to really think about the state that the country’s economy is in. Our debt repayments are much higher than our income and this puts Sri Lanka in a state of deleveraging. This recently manifested itself in a 14.2 percent increase in…
EVER EVOLVING EXPECTATIONS
Q: What modern-day challenges do businesses face? A: Information overload – in the new world we live in, there’s never a lack of information. About 2.5 quintillion data bytes are added every day; more data is created in a single day than the combined amount generated over 99 percent of human history. Previous generations of…
EXPANDING CREDIT FACILITIES
Q: What is the bank’s corporate strategy for 2021/22? A: DFCC Bank’s 2021/22 plan is based on our five year strategy for 2020-2025 with the aim of making it one of the most customer centric and digitally enabled banks by 2025. Our lending plans will align with the government’s budget proposals to facilitate the growth…
REMAINING IN THE SPOTLIGHT
Q: What are Sri Lanka Tourism Development Authority’s (SLTDA) priorities for 2021/22? A: The global tourism industry will continue to experience a huge shift in the way of doing business. Our innovative bio-bubble concept launch in January was recognised at ITB Berlin. We hope this will boost traveller confidence. Therapeutic destinations and experiential travelling are…
