Exporters Association of Sri Lanka

No: 50, Nawam Mawatha, Colombo 02, Sri Lanka.

Chairman's speech 2015 - 2016

ADDRESS AT THE 18TH ANNUAL GENERAL MEETING OF THE EXPORTERS ASSOCIATION OF SRI LANKA

Our Chief Guest, Hon. Dr. Harsha De Silva, Deputy Minister of Policy Planning , Guest of Honour, Mr. Bandula Egodage, Chairman & Chief Executive of the Sri Lanka Export Development Board,Other members of the head table, Distinguished Invitees, Committee Members, Members of the EASL, Ladies & Gentlemen, Good Evening,

I am profoundly honored and thank the Committee for the confidence they have placed in me by electing me as the Chairman at this 18th AGM of the EASL.

Current status

I have been associated with the EASL and other related trade associations for nearly 16 years and have had the privilege to serve under several Chair persons along the way. I have also seen how the landscape of the export sector changed under different governments over time and sadly today, it is not an encouraging picture about which I can talk positively.

Exports as percentage of GDP has continuously been declining. In 2010 it was 17.4% of GDP and as of 2014 it has further declined to 14.9%.

In reading the speech of the recently elected Chairman of the Ceylon Chamber, he too clearly expressed that following the cessation of the civil conflict 6 years ago, we have not seen the desired rapid economic growth that we all expected.

Whilst emphasis has been paid to infrastructural development, it has not paved the way to create a conducive environment in which the export sector could have grown.

Ironically, statistics record that Exports performed far better during the conflict era, compared to the post conflict period! Of course peace also opened the gates to increased import expenditure, but the desired focus and attention was not directed to propel this sector to take off to greater heights.

Although many initiatives were meant to encourage investment and make Sri Lanka a manufacturing Hub, what was lacking was a conducive environment in which exports could thrive, whether local companies or foreign investors.

If we compare the share of exports in the period 1980 to 2014, we observe that significant export growth has come only from Textile & Garments, Manufacturing, and ICT. Here again we can count the number of companies that stand out as real success stories.

What does this tell us. What lesson can we learn from all this. Once again, we are at a political mile stone and I believe that it is time we make our voice heard and lobby for an environment in which all exporters can grow and truly become the Engine of growth.

Regional comparison

Another area which we have failed to recognize is the threat of export activity emerging from within the region. In a short span of time, a market share of what could have been opportunities for Sri Lankan export enterprises are being captured from competition within the region.

Why are countries such as Dubai, Vietnam, Thailand and Malaysia able to attract foreign investment? How have they establish a stable political and business climate to encourage and facilitate business activity?. This is something we need to look at.

Sadly today, we are even observing Sri Lankan firms seeking to set up facilities outside Sri Lanka. The reason attributed is that it is less complicated and provides a stable environment devoid of red tape and legislative hurdles, thus providing competitive advantages they seek, if they relocate elsewhere.

With the change of the political guard, we saw within the short life span of the present government, initiatives such as ‘Ease of Doing Business’ dialogue being implemented. These are commendable initiatives but sadly this is not enough.

Stable environment

What we need is to have a stable political environment in which we, Exporters, can have our voices heard. We must be made partners in shaping and developing policy in which we can conduct our business.

Vision

At this crucial moment in Sri Lanka, when we are about to face a general election, I would like to see policy makers focus on real growth in exports and Walk the Talk.

We would appreciate that the Government develops a model for advocacy whereby private sector stakeholders are invited to participate in planning of policy in an inclusive manner where we can be partners in developing a conducive long term strategies in which we can grow and thrive.

We should try and develop a hybrid policy where we can take advantage of our rich agricultural history and natural resources and at the same time develop our industrial base to increase volume and value within the given space and resources available to us.

We need to develop our skills and talent pool as correctly identified by the Chamber, and invest and upgrade our educational services.

We must invest in the future of R&D and technology and make a conscious effort to move up the value chain and look at shaping our tomorrows. I see only the garment industry today that has stayed ahead of the game.

I would like to reach across to all other export chambers to stand as one voice and lobby government on national issues. We exporters must be heard and let us be seen as the drivers of growth.

Acknowledgements

Finally I wish to acknowledge a few people who have helped me to get to where I am in the corporate world.

I am immensely grateful to my Chairman. Dr. Devapriya Nugawela, who for the past 13 years has encouraged and supported me to engage in trade related activities.

Three people for whom I have a lot of respect and who have taught me the ways of surviving in the world of trade chambers, Mr. Gulam Chatoor, Past Chairman of CCC and Mr. M C M Zarook Chairman of SAPPTA and the late Mr Chris Dassenaike Past Chairman of SAPPTA. I would also like to thank all the Past Chairpersons of the EASL with whom I have served on the Managing Committee and Mr. Rohan Daluwatte, Immediate Past Chairperson and in particular Mrs. Dawn Austin.

Finally I would end my address by reflecting on a quote from President John F Kenndy:

“The problems of the world cannot possibly be solved by skeptics or cynics whose horizons are limited by the obvious realities. We need men who can dream of things that never were and ask "why not?"

I thank you for your patient hearing. Thank you.