Sunil Liyanage

‘Draft national policies in consultation with professionals’

To achieve rapid economic growth :

Hiran H.Senewiratne

The Government should introduce national policies in each and every sector in consultation with professionals in each sector, said Managing Director Richard Pieris Rubber Products Ltd, Sunil Liyanage.

He said that polices on taxation, labour and finance should be drafted in consultation with industry specialists in the respective fields to ensure the smooth function of businesses and to achieve a rapid economic growth in the country.

Liyanage said that the Government introduces legislation, very often without proper evaluation of the sector, which causes many difficulties to them. Therefore, the private sector being the engine of growth has to have proper policies in place to smoothen the function of business, while the Government should play a catalytic role in this scenario, he said.

Governments should ensure the smooth functioning of the business or the industrial sector and its decisions should be taken not on political grounds but for the benefit of the industrial sector, he said.

Q: Most business chambers in Sri Lanka promote business activities in the Western Province and not in rural areas in the country. As the Deputy Chairman of the Ceylon National Chamber of Industries (CNCI), what is your view?

A:Most of the economic activities are in Colombo in the Western Province. But now several development activities are being spread to the peripheries.

However, CNCI being a leading business chamber we keep contact with other regional chambers in the country.

Currently we have over 260 members. Similar to all other business chambers we have to manage ourselves with membership fees, which limit our activities. However, in Sri Lanka the business chamber concept has to be developed.

Q: What do you think of Sri Lanka’s labour laws?

A:We have more than 250 employees under my purview.

Labour laws should ensure a fair deal to both parties. But the current labour laws I believe are not employer friendly, because in a crisis situation companies have to be flexible to adjust the operational structure to face all challenges.

Q: Sri Lanka’s industrial sector, especially the export business is now facing a major crisis due to the global recession. What is your advice for decision makers in the country to restore the industrial sector?

A:We are having an artificial exchange rate, which needs to be adjusted to facilitate all industries especially the export oriented sector to prevent closure. Once it collapses it is very difficult to revive it. If the rupee is devalued, the cost of imports will not go up. Currently, there is a Cess on all imported raw materials, which is detrimental to the entire local industrial sector. The prices of all imported raw materials have come down globally. The removal of the Cess on imported raw materials will protect the local industries at this juncture.

Q: How does high bank interest rates and currency depreciation impact local industries?

A:Industrialists have to obtain banks loans at very high rates. In addition the penal interest overdraft is also high. Under these circumstances local industrialists find it difficult to survive in the competitive and challenging environment. Local companies will scale down its operations and will not invest in the new technology.

These factors ultimately impedes the growth of business entities. When it comes to currency deprecation, it will mainly impact on the import sector which again affects companies like us as we import raw materials to manufacture some products. This also adds cost to the end product.

Q: What are the advantages we could gain from the global recession?

A:When there is a global recession every country reduces imports. We see that our apparel and tea exports have dropped due to this crisis. Fortunately; Sri Lanka is not adversely affected by the global crisis due to the presence of a strong agro based economy. We should now explore new exports’ avenues and invest in new technology especially in agriculture related industries.

Q: As the Managing Director what are the future plans of the company?

A:We are basically into the rubber and plastic business focusing on the domestic market. We have a wide range of household rubber products such as door mats, garden and hose pipes.

We are the biggest rubber-based product manufacturer in the country. We also manufacture tyres for the local market.

We have two companies which manufacture rubber related items.

When it comes to plastics we have four companies under my direction which manufacture various items including plastic water tanks, mattresses and cushions.

At present we have put on hold all our business plans due to the current crisis. We are now concentrating on our core business activities.

Q: It is believed that the plastic industry causes environmental pollution. Is your company contributing to it?

A:Absolutely no! It is the poor plastic wastage management that causes environment pollution. In Europe and the advanced countries they practise proper waster management systems based on the “4 R” which are reduction, re-use, recycle and recovery of plastics.

Therefore, the Government should introduce these concepts to create an awareness level and develop the sector.

Q: What is your advice to national leaders to reform Sri Lanka’s economy?

A:The important factors are to establish good governance and law and order in the country. If those prevail the rest will fall in to place automatically.

Q: What is your view on the Company’s Act?

A:The Company’s Act certainly ensures that decision makers follow certain procedures which create the transparency and good governance.

Q: What is your philosophy in life?

A:My philosophy inspired those who come in contact with me and inspired them to introduce a tripartite structure which included the individual, the company and the country to abide by it when performing a job.

Q: What is your retirement plan?

A:In a few months time I will retire from these positions. Once I retire I will mainly spend my time with my family.

I will also do a lot of travelling here and overseas. In the meantime I would also keep in touch with the rubber and plastic industries to share my knowledge with the younger generation.

Profile

Name - Sunil Liyanage

School attended - Royal College Colombo

Civil status - Married and has three children

Qualification - Diploma in Polymer Technology in Singapore

Other occupations - Deputy Chairman, Ceylon National Chamber of Industries. President of the Plastic and Rubber

Industries of Sri Lanka.