Jaffna showcases projects worth 367m

Rohantha Athukorala

When I recommended to the core committee of the Business for Peace Association (BPA) that we need to stage the next investment forum in Jaffna instead of Trincomalee, I was having some reservations as at that time the A9 was not opened for civilian traffic. But the reality after the program was actually staged in Jaffna, was a resounding success based on the feedback with over 200 participants coming from different parts of the country and the world, with all media carrying the opening as a headliner making the effort of organizing worthwhile.

When I was heading the Economic Affairs Unit for the Government Peace Secretariat, together with the security forces of Jaffna we organized the first ever Trade and Education Exhibition in Jaffna in December 2008 at the height of terrorism which attracted almost 168 private sector companies from Colombo and almost half the Jaffna peninsula visiting the function.

The only difference was that it was organized under very strong security precautions but this year’s Biz Pact Investment Forum was held with almost zero presence of security forces made an impact on the participants.

End of the day if the fruit of peace is not seen and felt by an ordinary civilian all the pomp and glory on media does not mean anything. Let me capture the essence of the Investment session that had a group of entrepreneurs from Jaffna who were leading businessmen. The session was co chaired by the Maharaja Corporation Executive Director Nimal Cooke myself and we wanted to make it clear that this was not just a business opportunity but building bridges between the North and the South that was well accepted by the audience.

Investment sessions

The highlight of the Investment Forum was the showcasing of the key projects that can attract local and global funding where the underlining objective was peace building. There were almost 367 million rupees worth of projects that was on offer, ranging from commodity businesses to fast moving consumer business

segments that captured the interest of the participants specially the Indian and Australian contingent.

I felt the session communicated to the world that Jaffna is open to business. But a point that needs to be highlighted is as a senior citizen said that Jaffna is open for business but kindly respect the culture of the community and preserve it rather than making it a another Katunayake Industrial Zone.

It may have been said with decorum but the essence of the statement was very well understood by the participants and subsequently when I met the Government Agent(GA) the same sentiments were echoed that I felt were warning bells that we should not look at rapid development as there is a lot of healing that had to be done to recover from the 30 years of war that the people had gone through. In fact one Chamber heads mentioned that at one time there were five governments ruling the peninsula and it can be a case study on how these businesses survived in Jaffna during this time period.

Agricultural products

The first project that we showcased was a 57 million partnership opportunity where Vesta Industries offered a development partnership to take the popular Jaffna Nelli Crush brand across the country and into selected overseas markets where the Sri Lankan Diaspora was domiciled.

The company has been in existence since 1995 and the current product range includes jams, cordials and sauces and now has 700 outlets and the probable partner must have a fast moving consumer business experience with some exposure to above the line and below the line advertising and managing a sales force.

This kind of partnership can help Vesta move to at least 50,000 outlets within a two year time horizon so that a serious competitor comes into brand like MD that had dominated the Sri Lankan market for years.

I strongly feel the consumer proposition that can be unique and appealing to a Sri Lankan housewife can be something like ‘Natural product from the people of Jaffna.’ This proposition can be also appealing to the Diaspora in the global market and can target cities like Melbourne, Toronto, Los Angeles and the Maldives.

Jaffna’s primary industry contribution to the economy

* 10.5 percent share of the national red onion production and the largest producer in the Northern Province

* 8.7 percent share of the national fish production and the largest producer in the Northern Province

* 4 percent share of the national milk production and the largest producer in the Northern Province

* 3.5 percent share of the national egg production and the largest producer in the Northern Province

* 2 percent share of the national chilli production

* 0.7 percent share of the national paddy production

* 0.6 percent share of the national potato production and the largest producer in the Northern Province

* 17.5 percent share of the national tobacco production and the largest producer in the Northern Province

PET bottles

The next project on show was the manufacturing plant for PET bottles. Apparently, the Jaffna peninsula imports around 400,000 PET bottles from Colombo on a monthly basis.

An eminent Business Chamber Head mooted the idea of setting up a PET manufacturing plant with an investment of 10 million rupees. The proposition was unique given that it will be partnered by the Yalpanam Business Chamber so that the demand is secured from the membership that consist of producers of jam, cordial, cordials, mineral water, jellies and different oils that require PET canisters.

The company that a probable partner will tie up with will be Star Industries that has a strong reputation for quality electrical, mechanical and refrigeration services across the Jaffna peninsula. The company has been in operation since 2001. I would recommend that a probable investor plough in an additional ten million rupees so that the demand can be met across the Vanni which includes Mankulam, Mullaitivu and Killinochchi industrial areas which will be the future business hubs in Sri Lanka.

Ceramic tiles factory

The biggest investment opportunity that was on offer, which attracted the Indian contingent’s interest was when a Rupees 200 million partnership was asked for targeting the manufacturing of tiles for the Jaffna market. Given that almost 80,000 plus new consumers have come into Jaffna peninsula from the camps in Vavuniya, housing will be a key need and the proposed tile factory will the most prudent business decisions that one can make.

Since the Jaffna peninsular had a tile factory before the conflict escalated, people with the necessary skill set was available for quick activation of the project. In my view, may be a Vocational Training Centre can be concurrently set up in Jaffna so that modern skill training can be done to move this factory to a new level of operation. Who knows it can be a model factory for Sri Lanka and a breeding ground for the 188,000 youth who are below 18 years of age living in the peninsula.

I believe that with this kind of approach, peace building and integration of the civil community into the economic process of the country is the only way to drive reconciliation in Sri Lanka between the North and the South. This incidentally was the objective of the BPA President Suresh de Mel who hails from the southern business chamber of Hambantota.

Electric motor and car pumps

The next project on show was the 100 million rupee project of setting up of a motor/water pump company that will unearth the technical competency of the people of Jaffna. The markets that can be targeted India, Pakistan and other SAARC countries as Sri Lanka’s electronic exports to the South Asian region has been gathering momentum in the last couple of years. The Sri Lanka Export Development Board (EDB) that was in attendance agreed to look for the buyers that made this opportunity a Private-Public-People(PPP) partnered project that gave the correct vibes to the people who attended from Jaffna.

Jaffna Industrial Zone

The strategic objective for me personally from the organization I work for was to identify some key companies that can be developed to be housed in the Atchuweli Industrial Zone that we propose to set in Jaffna. Since the Board of Investment(BOI) was setting up an office in Jaffna this development program that we wanted to facilitate for the people of Jaffna was easier and more realistic in my view.

At the end of the day if we can make four-five companies that are small and medium size become a large scale enterprises in Sri Lanka within the next five years then we have done our duty. Who knows a company like Vesta can be the next taker of the National Business Excellence award or even the National Chamber of Exporters awards in the future. If this does not happen then I feel we have failed as a nation after bringing peace to the country after 30 years.

Separately the forum also gave an opportunity for people to freely mingle and savour the unique culture of Jaffna as I saw many people visiting the homes of the participants from Jaffna that was delightful to see.

I am sure if the Bishop of Jaffna was there he would have been the most happiest person as I remember meeting him in 2008 when I had to travel in a Unicorn from Jaffna to the Palaly camp due to the fear of a LTTE attack given that I was instrumental in organizing many a business and sports venture in Jaffna. The best revelation that got unearthed was when we realized that the fish that we buy from a Keells outlet came from the catch from Jaffna which means that the Jaffna economy is already getting linked to the top end consumer families in Colombo. I wish a new brand can emerge so that we can give identity to Jaffna.

Jaffna - the Bali of Sri Lanka

I am proposing that Jaffna be developed to have a tourism identity of its own just like Bali in Indonesia. The underlying reason being that it has a unique culture and already there are over 5,000 visitors from the South to Jaffna on daily basis that gives us an idea that latent demand existed and now it is beginning to surface overtly.

A point that needs to be highlighted is that in May 2009, there were only four small guest houses in the Peninsula but today, there are over 19 hotels some having the capacity to meet the demands of almost 50 guests that gives us an idea of the potential that Jaffna has. May be a luxury yacht in the Jaffna lagoon can be offered to the discerning top end traveller for a lifetime experience just like in the Carribean. Who knows the Star Cruisers next stop can be in the Northern tip of Sri Lanka, Jaffna.

The Casuarina Beach can be developed in the likes of Unawatuna to be the Northern Beach Resort in Sri Lanka that can host the next Beach Fest in the likes of Hikkaduwa that we staged that has become one of the most demanded products of Sri Lanka Tourism.

The time has really come where we ask what we can do for Sri Lanka than what the country can do for us. In my last five years of public sector life I have seen so many who selflessly work for the betterment of the country. The challenge is, how about you?