Adding colour to brand Sri Lanka
Rohantha N.A. Athukorala
If one googled brand Sri Lanka, the reports one sees is not that
encouraging.
The googled information that surfaced in March 2009 were the bombings
in the Vanni and the alleged civilian casualties, the human shields that
were been used by the LTTE, political instability in the country, the
downturn of business in the private sector, the continuous fall of the
stock market, the ballooning budget deficit that was at double digit and
the fear psychosis that was gripping the city that resulted in the low
tourist arrival into the country. Things were pretty negative at that
time.
The Google map of Sri Lanka |
Today in November 2010, if one googled Sri Lanka, the data we see on
our computer screen is different. The ratification of the Free Trade
Agreement with Asia Pacific, a bid to host the 2018 Commonwealth Games,
Indian star Vivek Oberoi doing a film in Sri Lanka, The stock market
ranked as the best in the world, American business delegation discussing
business, weekly conferences by almost all Chartered Associations
attracting the cream of talent like the great Sally Darwie of the
British Olympic bid team, Over subscribed bond issue of the Central
Bank, Many companies wanting to launch IPOs and to cap it private sector
profits growing by 284 percent whilst tourism arrivals booming to an all
time high.
While these can be the positive reports emanating just like any
country in the world be it China, India, Thailand, South Africa, Vietnam
or Russia there is bound to be some negative reports.
In case of Sri Lanka the googled information pieces are agitation by
University students, opposition crying out on the emerging dictatorial
rule, the fall in trade pacts such as GSP+ due to human rights issues.
In my view this is what adds colour to brand Sri Lanka even though it
can be unpleasant in reality.
On the other hand if one were to google Sri Lanka on December 31,
2011 (end of next year) what will we like to see. The following can be
some of that data that should be showcased.
Doing business - top 50 country
We must see reports where Sri Lanka is ranked as a top 50 country on
the ‘Doing Business Index’ from the current 105th position. We must get
strong ranking on attributes like Paying Taxes from the current 62
payments per year to just one payment just like Malaysia.
The total tax as a percentage of the revenue from the current
staggering 64 percent to a equtable level that is acceptable to an
investor. The ranking on enforcing of contracts from the current 1,318
days to around 321 as it is in Luxemburg, Time taken to register a
property from 83 days to two days like in Saudi Arabia.
Getting construction permits from the current 214 days to 67 days
that is taken in China. If these strategic reforms are not done and
announced to the world we will not be able to attract the global
companies to invest in Sri Lanka even after the hard won war from the
LTTE is my view.
Lending rates - hotels biase
The cost of finance must be at a competitive rate to the Hospitality
industry so that even with a Average Room Rate (ARR) at 150 dollars from
the current 82, so that a typical investment can be financially
attractive. As at now constructing a five star room ranges around 18 to
20 million rupees and unless the ARR are at around two hundred and fifty
dollars the return will not be attractive on a time scale of 8 to 10
years.
The logic being by 2015 we must target fifteen percent of the
countries employment levels to be consumed by this industry.
This will enable the country to achieve a zero poverty level. This is
the kind of data that I would like to see by end December 2011 when I
google Sri Lanka.
There must be a report that Sri Lanka’s Exports industry has crossed
a ten billion dollar barrier. The focused industries that may be
featured might be the software sector, tea, apparel and rubber just to
name a few. Whilst focusing on the SME sector, for a quick win large
organizations will have to be targeted for support so that we cross the
magical mark. Which means that the googled data will have interviews of
the industry captains to give credibility to brand Sri Lanka.
Atchuveli - a reality
By end of December 2011 there has to be something very significant
from an economic sense in Jaffna. The Atchuweli Industrial Zone being
featured will propel the overall attitude to business in the conflict
driven marginalized business sector of Jaffna for a typical viewer.
This must not be confined to the four Apparel companies but also
targeting the 43 SMEs who want to enter the main stream business of Sri
Lanka. This will give a positive rub off to the diaspora that keeps
attacking Sri Lanka.
PPP - infrastructure
It will do a world of good if we can have some large conglomerates
being featured on the news reports on a successful partnership with the
government on infrastructure development. This could be the Kalpitya
tourism development project on Waste management, Kuchchaveli or the
Pasikudah hotel development projects where water systems are required to
just name a few.
People ownership
We have to accept that governments around the world have not been
successful in driving business. We must ensure that at least the key
industries such as LPG gas, Sri Lankan Airlines are up and running by
end December 2011 so that we give the correct vibes globally when Sri
Lanka is googled.
Tea - lease
The first privatization asset of the country was the Plantations
sector. A colossal Rs 1.5 billion loss making industry has been made
viable by the strong leadership of the private sector. One of the key
recommendations of the ten man committee appointed by the President in
2008 was to increase the lease period to cover two cycles of bush life
and hence to 66 years.
By 2011 December this recommendation must have hit the market place
and it must be on all web sites around the world so that Sri Lanka is
featured as a country that is serious on developing the agricultural
sector which is linked to lower earning households of Sri Lanka.
SME’s - new policy
Let’s accept that the backbone of Sri Lanka’s economy is the Small
and Medium Enterprises (SMEs). It is paramount that we have the new SME
policy activated by end 2011 so that we can unleash the true potential
of the country. The good news is that the white paper is ready and if
this can be firmed up and linked to the developmental agenda of the
Industrial Estates so that Sri Lanka will be seen as a model country in
the development drive of the SME sector.
This will further strengthen the Mahinda Chintanaya Ediri Dekma is my
view. In the recent past, many of us have been involved on forums in
sketching out the ‘Hub status’ on different sectors.
At least by end of next year it’s important that one of them takes
shape in form or structure so that we visually demonstrate a key
identity for a Sri Lanka. May be it can be the Naval hub with the
development of the Hambanthota harbour.
APTA - link to the world
Operationalizing the Asia Pacific Trade Agreement(APTA) by end of
next year must be a high priority task so that it becomes the vehicle
that tells the world that Sri Lanka is seen to bridging the linkages to
the rest of the world.
This can be a demonstratable action so that the rest such as EU can
follow suit which will hit the global websites of the world.
The above are only some of the initiatives that I am personally aware
of that I believe must be on the computer screen when Sri Lanka is
googled but in a macro sense. There can be many more relevant than the
above. The idea is that we need to see real actions hitting the global
market place than just press releases so that googling Sri Lanka becomes
an experience. From the vibes I got from a cross section of countries at
the ‘Dubai Conference’ it was very clear that Sri Lanka is taken
seriously now. In fact I was proud to be Sri Lankan. Now the challenge
is how we make this benefit the common man on the streets of Sri Lanka.
(The thoughts expressed by the author are purely his own views
and is not reflective of the office he holds in the public, private or
the international civil service.) |