Mid term economic plan vital:

Sri Lanka’s private sector must take more risks - International Consultant

Ramani Kangaraarachchi

Sri Lanka can move forward successfully if vital political and economic decisions are based on objective and reliable data, said an International Consultant and CEO from Germany Dr Dieter Kotte at the 2009 CIMA Business Leaders Summit at the Cinnamon Grand yesterday.

He was speaking on New Challenges and New Strategies.

Dr. Kotte said that the global financial crisis has many ugly faces and a number of root problems.

While Governments muse about stricter regulations in the banking sector and deliberate international agreements of curbing risky financial products, the corporate sector in many countries ponders how to deal with the effects of the melt down and effects of recession. He said that as the crisis came about suddenly the counter measures were difficult as effective remedial measures were not available in the good books.

However, it is essential to put genuine strategic thinking back on the agenda by the country and companies. When the Government is affected by a sudden financial crisis it affects companies similarly.

When the construction industry came to a standstill in the Gulf States Sri Lankan workers had to return to the country. This increased unemployment and reduced foreign remittances badly and this hit the economy, he said.

The challenges for companies include decreasing the purchasing power of customers, less turnover forcing companies to close production lines, and reducing expenditure for R and D. Therefore, new markets and new marketing strategies are urgently required to stimulate sales, he said.

However, other countries have met these challenges and similar opportunities are available for Sri Lanka too, he said.

Dr. Kotte said that the private sector in Sri Lanka must take more risks and invest more on research and development.

They must develop new markets and operate strategically and globally. Making comprehensive strategies and looking for partnerships and strategic alliances are also important, he said

On the other hand the public sector must also implement a mid term economic plan which synchronizes human resource development with economic and political goals, streamlining administrative services through good governance and improving the formal education sector, he said.

The public sector in Sri Lanka must also adopt a strategy and learn to execute such plans, he said.