Kingsley Bernard,

Group Director (Corporate Planning and Business Development), Daya Group of Companies

Anjana Samarasinghe

Local entrepreneurs who wish to enter the export market need to maintain high standards and quality before entering the export market.

Group Director (Corporate Planning and Business Development) of Daya Group of Companies D.T. Kingsley Bernard said exporters should be honest with their foreign buyers. Understanding the needs of the buyer is an essential requirement in entering the export market.

"Screening the most potential buyers and selecting suitable buyers who you could cater and match your capabilities with his requirements is essential. Always select a few buyers who you could have a better focus and cater according to their needs," he said.

"I think creating awareness among exporters on concessions available for them is important. Most of the Chambers in Sri Lanka are trying to educate exporters though seminars and workshops but today these exporters and potential exporters do not have time to participate in these events, he said.

Q: As a person who represents the National Chamber of Exporters the country's apex body for export sector how do you see the performance of the export sector last year?

Compared to other sectors in the economy, the export sector performed well last year. The garment sector and the agricultural sector mainly tea exports contributed heavily to the total export earnings. Gem and jewellery exports have huge growth potential.

Country needs to focus on adopting latest technologies and improving craftsmanship to derive real benefits through this sector. Rubber exports is also another sector where more value addition could be done to enhance the country's export earnings.

Sri Lanka use to export rubber as a raw material and this sector could contribute more. Service sector too is a developing sector in the export sector. BPOs in the country make huge contribution to the total exports mainly in banking and finance outsourcing.

Sri Lanka need to setup more IT training institutes and improving English knowledge of local youth for gaining more advantages through this sector. Though local hospitality industry faces challenges at this moment this is a another sector country could derive immense opportunities.

Q: What kind of a growth has Daya Group experienced last year?

Comparing with the previous year we are very happy with the growth that Daya Group of Companies has gained last year. Daya Group of Companies was able to gain 60 per cent growth in turnover last year.

There was a substantial growth in group profit. The company recorded Rs 6.5 billion in turnover last year and the group is targeting Rs 8 billion turnover this year.

Q: What will be group's plans for this year?

This year the group expects to expand its business to various areas which have high growth potential. We expect to venture into the bio fertilizer business and generating green energy this year.

Our Sevanagala sugar plant produces large amount of byproducts when manufacturing sugar which will produce raw material for these new projects.

The leisure sector is another potential area for Daya Group of Companies where the group plans to enter into the eco-tourism sector this year. However the group expects to make heavy investments in the airline business this year.

Q: What are the challenges you are facing when managing a group of companies in Sri Lanka?

In Sri Lanka some rules and regulations are not entrepreneur friendly. Most of the time policy makers do not understand the thinking of the local entrepreneur. They cannot facilitate the local entrepreneur. This I see as a major barrier for the local entrepreneur.

Although the country has an open economy sometimes there are several restrictions that prevent local entrepreneurs going ahead. Obtaining lands for projects in Sri Lanka is a huge problem. Our group had to delay several projects due to this problem.

Q: What type of assistance do you expect from the government?

What we need from the government is to facilitate the conducive business environment with regard to the regulations and infrastructure facilitation.

Q: How does the current economic condition impact on your business?

The current economic condition impacts negatively on the business. Inflation rate is high and it badly impacts on the management and employees. For the management increasing wages according to the cost of living has become a huge challenge.

Q: How important is CSR projects to the corporate sector in Sri Lanka?

Today CSR is the buzz word of the corporate sector in Sri Lanka. However it has become part and parcel of the business and it is a obligation of the business community.

Daya Group of Companies is actively involved in CSR projects mainly in the Ampara and Sevanagala areas. We have set up a number of foundations to uplift rural youth and children.

Q: Apparel is one of the main businesses the Daya Group of Companies is involved in. How do you see the competition in the Sri Lankan apparel industry?

With the abolition of the multifibre agreement most of the small companies who were not equipped with latest technologies had to shut down their businesses. The few companies who were able to survive in the market are now getting more orders from their foreign buyers.

Companies who could maintain high standards in their factories and their employees can easily compete in the international arena. It is important to maintain long term relationships with your buyer and cater according to their needs for better competition in the market.

Q: Local apparel industry caters to world reputed brands such as M&S, VS. But why could not Sri Lanka introduce a local brand to the international market?

Sri Lanka needs to introduce local brands to the international market soon. However building a brand in the international arena will take a long time and it is an expensive task.

Most of the local players are already working on this. Daya Apparels too is looking at this seriously and putting up house in order to go on with this initiative.

GSP+ concessions are one of the advantages local apparel exporters have. Do you think local apparel exporters survive in the international market even without GSP+ concessions?

There is no fear of surviving and the country could survive in the international market even without GSP+ concessions.

There was a fear of losing the orders with the removal of the multifibre agreement but the local apparel industry survived. But Sri Lanka needs GSP+ concessions for better competition in the international market and it is a competitive advantage for the local apparel industry.