How thinking big and acting bold boosts business

Thinking big and going unhesitatingly for big business propositions has made John Keells Holdings Ltd a number one success story in Sri Lanka's business world. John Keells Chairman Susantha Ratnayake shares some of the secrets of his firm's successes in this ground-breaking, new column in the Daily News business pages, which would feature interviews with the CEOs of our leading firms every Tuesday and focus on their experiences as trail-blazing leaders in Lanka's business world.

Lynn Ockersz

Q: To what do you attribute the business success of John Keells Holdings Ltd?

A: It's a few reasons. One is the people. The people that we have got over the years make all the difference. They are a talented lot who have been re-inventing themselves.

The other main reason is that John Keells has never stayed still. We have done things very very differently and we have not been nervous to really invest big time in Sri Lanka because we believe in it.

And those sort of large investments we have made in this country have really paid off and that's where I think the success of John Keells lies.

Q: What's your vision as CEO of your firm?

A: That I would like to see John Keells, at least in the medium term, becoming a regional player, a substantial regional player, where we have some of our core areas of business going out and thereby achieving the scale that we should have in those businesses. In some of those areas we got scale, like in the hotel business. So, what I would like is for us as John Keells to become a regional player at least in the medium term.

Q: In what ways has JKH contributed to national development?

A: I would think we have contributed immensely. As I said earlier, we believe in this country and we have made some big investments. I don't think it would be wrong to say that we are possibly the largest Sri Lankan company who has raised money from overseas to invest in Sri Lanka.

I think we are the largest such group in Sri Lanka. Some of those examples are the port, which is till today the largest private sector investment in the country. John Keells were the promoters and the single largest shareholder in the project.

That was a ground-breaking project, and I think the entire port sector has benefited. So, those are the main things we have done and we continue to invest heavily in the Sri Lankan economy.

Q: What are the main constraints to the fuller development of the private sector in Sri Lanka?

A: If one were to state the obvious it is the North-East problem. That is the biggest obstacle we see at John Keells for us to grow faster and at a brisker pace. That needs to be put behind us and this is something in which we would like to see everyone working together to ensure it's done.

We hope good sense would prevail sooner rather than later and that the parties would sit down and talk. Both sides need to sit down and talk, and everyone has got to grow in turn. That is the biggest constraint we face as the private sector. The other is the lack of infrastructure, that is, the archaic infrastructure which adds to the cost of doing business in Sri Lanka.

Our roads is an example of that. We are glad that at least the long-awaited Katunayake highway has been brought back.

Norochcholai has been signed and sealed and we hope these are implemented as planned, as quickly as possible. For these are things, you know, which also constrain the private sector. But the biggest issue is the North-East problem.

Q: In your opinion, what business strategies enable a private company to survive commercial competition?

A: Although there are lots of people who come out with lots of theories, we at Keells like to keep it very simple.

We don't like to complicate issues. The primary reason is to recruit the right people and retain them. And I think if you do that, you have also got to look after them. And if you do that I think you can overcome any business competition.

Q: How could the private sector live up to its reputation as the 'engine of growth'?

A: Basically, I would think the private sector has to make big bends. If they believe in something they have to go for it.

And that is the kind of attitude that John Keells has as well. Although we are aware, and take into consideration what is happening around us, if we believe in something we do not do things for today or tomorrow.

We do things for the medium and long-term. That's one way of walking the talk.

There is no point in citing the North-East problem or crying about all the negatives. You have to work around those negatives and play the role the private sector is supposed to play.

Also, there is another very important aspect that the private sector must play and that is Corporate Social Responsibility side of it. It is very very important that, apart from business that the community and society at large be integrated in some way and we have to play that role.

Q: As CEO, what have been your most memorable moments?

A: I have been CEO for only six months.

I assumed duties on January 1st, and, therefore, it is a relatively short time. But it's being absolutely enjoyable because it has been a very challenging time to take over.

At John Keells we have lots of memorable times. We also have the ups and downs but whatever it is, luckily for us, we have had more memorable times than bad times.

John Keells has grown exponentially over the last fourteen, fifteen years.

And if you take the Stock Exchange, we are the second largest company in it. And if you consider the diversified companies we are the largest and largest by far.

To have been part of that growth and to see us overtaking some of the biggest companies that were there at that time and leaving them far behind was the most memorable times we have had.

And ground-breaking projects like the Port have been absolutely fantastic.

Some big propositions that we've made, like turning around the old Oberoi to now Cinnamon Grand, have all been fantastic moments that we have had at John Keells.