Q: Sunshine Holdings was recognised at the 10th CFA Society Sri Lanka Capital Market Awards. What is the importance of celebrating corporate commitment to excellence in reporting – especially during these challenging times?

A: Celebrating corporate commitment to excellence in reporting is much needed to foster responsible entrepreneurship and good investor relations practices in the industry, while encouraging healthy competition among organisations to raise their standards and adopt best practices.

Moreover, the awards emphasise the duty of public listed entities to maintain consistency in investor relations, and showcase their commitment to corporate governance and transparency.

However, we believe that the severity of challenging times is immaterial when it comes to our group’s demonstrated commitment to excellence in reporting in both good times and bad – amply reflected in the fact that Sunshine Holdings has been bestowed with this award as many as six times since 2015.

Q: What is your take on this year’s theme for the awards – ‘Invest Smart, Build Resilience, Thrive in Sri Lanka’?

A: Invest Smart, Build Resilience, Thrive in Sri Lanka is a powerful and timely theme, given the current challenges and opportunities in the domestic capital market. Overall, the theme highlights essential aspects for capital market participants in Sri Lanka, promoting excellence, resilience and responsible practices to thrive in both challenging and favourable times.

We believe that transparent and clear communication in times of crisis instils confidence and trust in stakeholders – a value that Sunshine Holdings has embraced through the concept of ‘responsible entrepreneurship.’

Q: In your view, what more needs to be done to recognise excellence in sustainability reporting in this country?

A: Recognising and incentivising organisations that go beyond compliance to demonstrate outstanding sustainability performance encourages excellence in reporting. However, there needs to be greater awareness and education on sustainability reporting standards and best practices.

Regulatory bodies and industry associations can also provide further guidance and establish benchmarks for sustainability reporting. Moreover, the active involvement of top management against a backdrop of transparency and accountability is crucial for ensuring the reliability of sustainability reports.

Q: What are the main challenges that Sunshine Holdings has faced over the last 12 months?

A: Some of the key challenges faced by us were exchange rate fluctuations as most of our products or raw materials are imported, and any substantial increase in cost had to be passed on to the consumer with the company absorbing smaller changes.

Moreover, to combat the lack of liquidity in US Dollars, we invested in an export business to generate forex for the group.

As for the palm oil ban by the government, the industry body is lobbying the government to lift it.

Lastly, poor consumer sentiment and low spending power spurred us to focus on providing increased value to our consumers in their time of need.

In terms of future plans, with prices coming down, we will focus on catering to growing demand in the healthcare sector. And in the fast-moving consumer goods (FMCG) space, we’ll focus on the chocolate category with a unique customer proposition compared to the rest of the market.

Vish Govindasamy
Group Managing Director

Q: How does the group view the importance of the environmental, social, and governance (ESG) framework?

A: Sunshine Holdings considers ESG principles an integral part of its corporate strategy. Across all its businesses, the group prioritises social involvement, focussing on human capital, health, safety and CSR initiatives through the Sunshine Foundation for Good.

The group also addresses climate change and resource limitations, enhancing corporate value through transparent reporting for investors and stakeholders.

Sunshine Holdings ensures robust corporate governance by including independent non-executive directors on each company board – even for private companies within the group. These directors actively participate in various board subcommittees, and conduct independent assessments and provide regular reporting to the relevant boards.

Additionally, the Group Executive Committee, comprising experienced and qualified professionals, diligently manages businesses across sectors, safeguarding responsible practices for future generations.

Q: What investment trends and opportunities are worth capitalising on, in your opinion?

A: Our focus is mainly on the healthcare and consumer segments. We are cognisant that this year has been challenging for end customers given high inflation and lower disposable incomes. However, we are seeing a recovery trend in consumer sentiment.

Given challenges in the healthcare sector, we believe it is essential to serve our customers with high quality pharmaceuticals, surgical equipment, consumables and diagnostics equipment at affordable price points. Furthermore, we’re also investing in the local pharma manufacturing business, which produces high quality respiratory drugs, mainly for the government sector.

Sunshine Holdings will continue to invest in its FMCG brands with an aim of providing value for money to its loyal customer base. Despite all the external challenges, Sunshine Holdings remains committed to being a responsible corporate citizen and contributing to sustainability.

Telephone 2702400  |  Email info@sunshineholdings.lk  |  Website www.sunshineholdings.lk