Time for Sri Lankan businesses to tighten their belts -MTI CEO
After three years of crucial post-war Bull Run, Sri Lankan businesses
have begun to feel the ‘pinch’ of the combined impact of the global
economy and the local consumers’ reduced buying power.
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Hilmy Cader |
According to the CEO of MTI Consulting, Hilmy Cader it is a cyclical
challenge that countries and business go through, except on this
occasion the challenges faced by the global economy (which significantly
impacts the local economy) are almost unprecedented.
“The fact that North America, Europe, Japan and India are all
experiencing severe economic challenges (at the same time) raises the
question “are we in the early days of a 1930 style depression?”
“The real challenge for Sri Lankan businesses is that we need to
quickly shift gear and mind-set, mean times avoid moving into a shell.
Sri Lanka needs to cautiously continue its growth agenda, the key
word being cautious!” said Cader.
The last three years have been characterized by a phenomenal increase
in credit, significant part of which has been for consumption.
This in turn has boosted corporate profits of businesses that have
benefited from such consumption spending, based on which these
businesses have added significant fixed costs.
According to the MTI CEO “Time has come for businesses to take the
fatness off their businesses, adopt a trim and a fit cost optimization
process, while at the same time cautiously continuing the growth agenda.
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