Lankan exports need a major makeover urgently
Bernard De LIVERA
For the Sri Lankan export sector this is a most momentous period.
Though the recent global economic crisis is somewhat behind us it has
definitely left behind deep-seated worrisome challenges mostly to be
faced by developing countries such as Sri Lanka.
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Garments a
major export earner for Sri Lanka up to now |
Most developing countries are already head-on facing the negative
impact the crisis has brought abut on Commerce and Industry.
To say that the way international business is done today has changed
due to the crisis is too much of a simplification. If penetrating the
most lucrative markets was difficult before with the advent of the
crisis, things have not got easier in any way or form.
For all intents and purposes the recent crisis was more of a game
changer. This change is experienced even by developed countries. Hence,
it is logical to believe that the Sri Lankan export sector is still
faced with challenging times now and in the foreseeable future.
The foremost question is as to how Sri Lanka could turn tables, get a
handle on things and get back in the game. To do so an absolutely
intelligent and professional response is the need of the hour.
The Sri Lankan export sector needs to get the bull by the horns and
act proactively.
It is an open secret that times are tough for exporters everywhere
and will remain so for a while.
Therefore there is a need for true introspection and out-of-the-box
thinking not only to counter the negative effects faced by Sri Lankan
exports, but also to address productivity and competitiveness issues on
a substantial basis to get ahead for the long term.
Thankfully it could be done.
Right away there is a need to revisit the export marketing practices,
processes and preferences in Sri Lanka and replace the current strategy
with a well thought out, changed,modified and upgraded strategy
developed in accordance with the current global reality.
Needless to say what Sri Lankan exporters are good at and could
become good at if required must be front and center and included in the
equation.
The bottom line is that radical changes need to be made and
implemented to introduce new, viable and sustainable income streams from
exports.
Likewise, the need to go after new export markets, systematically and
sustainably increasing export sales volumes to countries currently Sri
Lanka exports to is critically important. Introducing and implementing
bottom-up changes to the market access strategies, methodologies and
processes currently employed by Sri Lankan exporters to sell to the
Americas in particular has to be re-engineered.
The importance and potential in the Americas which region is
vigorously pursued by China, India, Brazil and other rapidly emerging
countries must be viewed and approached with new eyes and attitudes. To
do so ground-braking new thinking and new ideas are a crucial need.
As a first step what Sri Lanka currently exports should be
inventoried and brought to the table to be thoroughly scrutinized and
evaluated for future potential, suitability, sustainability and
profitability.
Modern management does not have room for sentimentalities and sacred
cows. Everything currently done by Sri Lankan exporters must be put
under the microscope to determine how best it could be successfully
exported while accruing maximum benefits especially in the current
context.
Simultaneously, there should be a credible professional study to
determine Sri Lanka's strengths compared to the current and future
global buying trends. Once these two factors are duly clarified and
reconciled, necessary changes need to be effected with a view to putting
in place a renewed; modern and effective export strategy that will
render the efforts of Sri Lankan exporters distinctly more productive.
Doing international business is similar to striking a moving target.
It is a task that needs a lot of preparation, smarts and intelligence.
Basically, while it is admittedly no easy task, it is a task that
needs to be undertaken and implemented on an urgent and priority basis.
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The Colombo
Harbour. Picture by Saliya Rupasinghe |
To succeed in achieving remarkable results from a cohesive and
dynamic export campaign, a better job needs to be done in facilitation
by the state support apparatus especially for the new and growing
exporters.
They need to be empowered with relevant and timely information,
access to quality market intelligence and empowerment within an enabling
environment.
Exporters need to be able to receive all the support and help they
need preferably under one roof and definitely within an acceptable time
frame.
It is imperative that Sri Lankan exporters be able to clearly
recognize as to what products, services and projects have global demand
and appeal and in which precise markets the potential exist.
Then they need to be able to be fully cognizant of what exactly the
buyers are looking for from a needs, expectations and conformity
perspective.
As an integral part of enabling market access using modern and
effective tools any current exporter or prospect should be able to
freely access solid, quality, current and relevant market intelligence
to understand what their competition is doing.
Exports bring about measurable positive results to the economies of
all countries irrespective of if it is a developed or developing one.
One of the key benefits of having a vibrant export sector for a
developing country such as Sri Lanka is the ability to add new well
paying and sustainable jobs on an on going basis.
Job growth is the anchor of a solid economy. The other of course is
the earning of valuable and much needed foreign exchange which is the
primary goal of most developing countries.
It is a given that income generated by exporting products, services
and projects improve the overall performance and well being of a
country's economy by leaps and bounds.
An important bi-product of a flourishing export sector is the
improvement of the quality of life of the individual worker and his/her
family.
The fundamental reason for even major economies as the US, Japan,
China, India, Canada,Australia, Italy and Brazil to pay close and actual
attention to export market development is the serious direct and
indirect benefits it brings in proportion to the export income
generated.
The attention the Sri Lankan government and the private sector are
paying to the development of tourism in Sri Lanka is admirable. exports,
needs to be placed on a similar if not higher pedestal and the sooner
this is done the better it is for the country.
The recent reported comments in the media by the Industry and
Commerce Minister Rishad Bathiudeen and Treasury Secretary Dr. P.B.
Jayasundera referring to the Government's goal of increasing export
turnover from the current US $ 8 billion to 20 billion is definitely a
step in the right direction.
These recent statements by a key Minister and a high ranking official
is a clear indication of the Government identifying export development
as a must do project.
The next obvious question is as to how and when to implement change
and make things happen. Though, a short one there is a distance between
the cup and the lip which must be navigated with skill, professionalism
and diligence. This needs to be done by all stakeholders collectively.
One of the indisputable facts in favour of Sri Lankan exports is the
fact that the Sri Lankan businesses in general and the exporters in
particular are a highly resilient lot.
They have proven over and over again that they have great creativity
and survival skills to pick themselves up and go forward irrespective of
the severity of the challenges they have to face. Sometimes, the
challenges have been daunting with some of them lingering for decades.
However the Sri Lankan exporters small and large have stayed right on
top of their game and consistently driven the export sector forward
irrespective of the local or global business environment.
They should be unequivocally recognized as a major asset and
harnessed to the fullest to lead the expansion and development of the
export sector.
The Government needs to consider acting quickly to tie up and bring
together this rare strength and put in place a dynamic policy framework
to create an enabling environment for the manufacturers, service
providers, project implementers and exporters to go get new markets and
new business.
There is no question that creating such an atmosphere takes a lot of
effort but if Sri Lanka is to truly benefit from the opportunities
available from the new world order it is indispensable that the export
sector is meaningfully equipped, prepared and energized.
It can be done and it should be done.
Not modernizing and upgrading the export marketing apparatus of the
country and getting it to work on oiled wheels is to invite and coddle
failure which will inevitably lead to a decline in the overall export
sector.
Timing is everything and the time to get all the ducks in a row is
now. To achieve this goal of creating a truly enabling environment for
the export sector the government and the exporters and prospective
exporters need to tune into the same frequency.
They need to build a solid relationship which will lead to be a rich
partnership.
Following the money is the most prudent way to get ahead. The
Government needs to make serious positive changes and adequately
facilitate the exporters to effectively conduct a professional
diagnostic workout on each product, service or projet, ensure true
export readiness of the item to be exported and the company doing the
exports so that the exporters could aggressively go after new markets,
new business and thereby greater profits.
What is required is not a lot more money and resources but to
identify and prioritize the needs with the objective of infusing a sense
confidence and belonging among the exporters while treating the current
palpitations.
When every exporter understands that their indeed is a stellar plan
in place they are most likely to engage to the fullest which will
spontaneously propel them to embrace and become active stakeholders of
the project of the government to raise the bar and increase export
income to US $ 20 billion.
Perhaps, it is a great opportunity to put in place a comprehensive
export charter between the government and the exporters. The guidance
and support of the EDB, National Chamber of Exporters, who are doing a
great job, and all the other chambers will be a great beginning.
(The writer of this article is the President of NATE Canada and is
based in Canada.
He is a practitioner of international marketing and business
representing and providing modern solutions to leading companies in the
Americas and enabling exports for over 20 years. He can be e-mailed on
[email protected])
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