“We need to broaden tourism beyond the ten-day, three-city, operator-driven business… There is an economic rationale for attracting a higher percentage of niche tourists,” says Thilan Wijesinghe, Chairman of the advisory panel on Niche Tourism Products. In conversation with the Sunday Times FT, he identifies the Middle East, India and UK as markets in which he have the greatest opportunity to succeed.
Research on the niche segment reveals that getting from place to place by car is the foremost cause for dissatisfaction. While the time consumed is the stated reason, the root cause is poor connectivity and road conditions. Driving standards – or lack thereof – have also come in for some ridicule.
To cater to this segment, therefore, the need of the hour is infrastructure. The panel proposes that internal regional airports be upgraded “without spending big money”. While calling for domestic airlines to be encouraged, the panel recognizes the existence of security issues, due to which some aircraft have been grounded.
A programme to upgrade rail services through a public-private partnership is also under serious consideration. In addition, the upgradation of selected train stations is on the anvil. The panel has met Dullas Alahaperuma, Minister of Transport, in this regard.
Wijesinghe believes that a policy framework needs to be created and an enabling environment put in place first. Then, when times improve, the private sector will dive in and funding will be made available. There are also steps being taken for hotels and restaurants: de-bottlenecking approval processes for environmental clearances and liquor licences, for instance.
The advisory panel on niche tourism products includes stalwarts like Geoffrey Dobbs, Viren Perera and Nayantara Fonseka. “We plan to educate, inform and advise the Ministry of Tourism on a public relations campaign,” discloses Wijesinghe.
Thursday, June 28, 2007
Attracting the 'Creamy Layer'
Imagine: You are a tourist holidaying in Sri Lanka. On a deckchair by the beach, you are basking in the warm sunshine. You are mesmerized by the soporific sound of the sea and the sight of the waves breaking on the golden sands. As you sit up to sip your colourful mocktail, you think, "God's in His Heaven – All's right with the world!”
At that precise moment, a horde of vendors descends on you like a swarm of bees, pestering you, harassing you, to sample their wares. They refuse to scram until you buy something. What a bloody nuisance!
Only if it crosses a certain threshold, however, does such harassment get categorized as criminal activity. It is precisely to safeguard tourists from these and similar situations that the Tourist Police Division (TPD) was inaugurated in June 2007.
Speaking at a media discussion last week, SSP Maxie Proctor, TPD Director, indicated that - during 2005 and 2006 - there had been about 300 complaints registered each year. He explained that harassment by vendors was the consequence of inadequate tourist arrivals. Spelling out the TPD’s roadmap (now under implementation), he indicated that resources had been the constraint thus far. Now that personnel have been recruited, they will be provided with intensive training inputs.
In addition, police posts in certain coastal areas and other places of tourist attraction have been identified for upgradation to police stations. Proctor said out that some police stations have also been identified for improvement. Enhanced protection will ensure that tourists have a hassle-free experience, would help communicate the message that Sri Lanka is a safe place to visit.
Despite being the fourth-highest foreign exchange generator in Sri Lanka, tourism’s contribution is small: just 1.5% of GDP, against 8% internationally, says Thilan Wijesinghe, Group CEO/ MD of Forbes & Walker.
“Niche Tourism is going to be very important in coming years,” he believes. In his avatar as Chairman of the Advisory Panel on Niche Tourism Products, Wijesinghe is assisting the Tourist Board in defining standards for boutique hotels. Speaking from his experience at Tea Trails, Bogawantalawa, he insists that hotels can curb harassment - by procuring provisions and services from surrounding areas.
Based on inputs from the panel, Sri Lanka Tourism has launched a drive to prioritise quality over quantity. The rationale is simple, Wijesinghe explains: The creamy layer of tourism worldwide consists of the top 3% of tourists, a segment that spends 30% of tourism dollars. Because of their spending power, niche tourists demand very high standards. They expect to be received at the airport, cleared through immigration/ customs, and whisked away to their hotels. They travel individually or as couples, and treasure their privacy.
George Michael, Additional Secretary in the Ministry of Tourism, admitted that tourism was facing difficult times. However, with the industry employing more than 300,000 people – and “feeding a million” – they could not afford to leave any stone unturned in improving the situation.
At that precise moment, a horde of vendors descends on you like a swarm of bees, pestering you, harassing you, to sample their wares. They refuse to scram until you buy something. What a bloody nuisance!
Only if it crosses a certain threshold, however, does such harassment get categorized as criminal activity. It is precisely to safeguard tourists from these and similar situations that the Tourist Police Division (TPD) was inaugurated in June 2007.
Speaking at a media discussion last week, SSP Maxie Proctor, TPD Director, indicated that - during 2005 and 2006 - there had been about 300 complaints registered each year. He explained that harassment by vendors was the consequence of inadequate tourist arrivals. Spelling out the TPD’s roadmap (now under implementation), he indicated that resources had been the constraint thus far. Now that personnel have been recruited, they will be provided with intensive training inputs.
In addition, police posts in certain coastal areas and other places of tourist attraction have been identified for upgradation to police stations. Proctor said out that some police stations have also been identified for improvement. Enhanced protection will ensure that tourists have a hassle-free experience, would help communicate the message that Sri Lanka is a safe place to visit.
Despite being the fourth-highest foreign exchange generator in Sri Lanka, tourism’s contribution is small: just 1.5% of GDP, against 8% internationally, says Thilan Wijesinghe, Group CEO/ MD of Forbes & Walker.
“Niche Tourism is going to be very important in coming years,” he believes. In his avatar as Chairman of the Advisory Panel on Niche Tourism Products, Wijesinghe is assisting the Tourist Board in defining standards for boutique hotels. Speaking from his experience at Tea Trails, Bogawantalawa, he insists that hotels can curb harassment - by procuring provisions and services from surrounding areas.
Based on inputs from the panel, Sri Lanka Tourism has launched a drive to prioritise quality over quantity. The rationale is simple, Wijesinghe explains: The creamy layer of tourism worldwide consists of the top 3% of tourists, a segment that spends 30% of tourism dollars. Because of their spending power, niche tourists demand very high standards. They expect to be received at the airport, cleared through immigration/ customs, and whisked away to their hotels. They travel individually or as couples, and treasure their privacy.
George Michael, Additional Secretary in the Ministry of Tourism, admitted that tourism was facing difficult times. However, with the industry employing more than 300,000 people – and “feeding a million” – they could not afford to leave any stone unturned in improving the situation.
Advice by Feizal Samath
We must always be careful not to overdo the ‘praise’ of the public or private sectors in stories.
A straight forward news story is reporting the facts. In a story where allegations are made, we report the claim and balance it by getting the other side to comment.
This is not easy in the style of writing that we promote at the STFT – featurish, laidback stories that would sizzle and excite the reader enough to read a serious biz story on a relaxed Sunday morning or afternoon. Now this is where experience also counts – particularly in knowing the background to events, issues and sectors that we cover.
For example – say, finance – we may be impressed by a presentation made by Dr P B Jayasundera, Treasury Secretary, on the economy; but for journalists who keep abreast with the news, we are also aware that he can be a political stooge. Thus, we temper praise for his presentation and ‘facts’ with the fact that he may also be responsible for the crisis whatever it is.
Then, for example – we would find Aitken Spence’s new plan to use indigenous food a great story and great motivator of what we should eat. However on the other hand, we may be unaware that the hotel chain may be discriminating against local villagers from the community and buying stuff from another village. Or that it sells stale food to guests. Thus, if such a thing is happening, we may shoot ourselves in the foot by overdoing the praise-for-the-hotel-on-what-a-great-thing-it-is-doing, etc while sections of the public who know the other side will find us very partial.
The point I am making is that in trying to make an uninteresting story look exciting and to tempt the reader to go beyond the headline – which is what we are striving for – we may unwittingly be offering too much praise or too much criticism. The trick here is to be balanced and objective – and also make a complicated and boring business/ finance story readable for a Sunday reader.
A straight forward news story is reporting the facts. In a story where allegations are made, we report the claim and balance it by getting the other side to comment.
This is not easy in the style of writing that we promote at the STFT – featurish, laidback stories that would sizzle and excite the reader enough to read a serious biz story on a relaxed Sunday morning or afternoon. Now this is where experience also counts – particularly in knowing the background to events, issues and sectors that we cover.
For example – say, finance – we may be impressed by a presentation made by Dr P B Jayasundera, Treasury Secretary, on the economy; but for journalists who keep abreast with the news, we are also aware that he can be a political stooge. Thus, we temper praise for his presentation and ‘facts’ with the fact that he may also be responsible for the crisis whatever it is.
Then, for example – we would find Aitken Spence’s new plan to use indigenous food a great story and great motivator of what we should eat. However on the other hand, we may be unaware that the hotel chain may be discriminating against local villagers from the community and buying stuff from another village. Or that it sells stale food to guests. Thus, if such a thing is happening, we may shoot ourselves in the foot by overdoing the praise-for-the-hotel-on-what-a-great-thing-it-is-doing, etc while sections of the public who know the other side will find us very partial.
The point I am making is that in trying to make an uninteresting story look exciting and to tempt the reader to go beyond the headline – which is what we are striving for – we may unwittingly be offering too much praise or too much criticism. The trick here is to be balanced and objective – and also make a complicated and boring business/ finance story readable for a Sunday reader.
Thursday, June 21, 2007
Desiderata by Max Ehrmann
Go placidly amid the noise and haste,
And remember what peace there may be in silence.
As far as possible without surrender
Be on good terms with all persons.
Speak your truth quietly and clearly;
And listen to others,
Even the dull and the ignorant;
They too have their story.
Avoid loud and aggressive persons,
They are vexations to the spirit.
If you compare yourself with others,
You may become vain and bitter;
For always there will be greater and lesser persons than yourself.
Enjoy your achievements as well as your plans.
Keep interested in your own career, however humble;
It is a real possession in the changing fortunes of time.
Exercise caution in your business affairs;
For the world is full of trickery.
But let this not blind you to what virtue there is;
Many persons strive for high ideals;
And everywhere life is full of heroism.
Be yourself.
Especially, do not feign affection.
Neither be cynical about love;
For in the face of all aridity and disenchantment
It is as perennial as the grass.
Take kindly the counsel of the years,
Gracefully surrendering the things of youth.
Nurture strength of spirit to shield you in sudden misfortune.
But do not distress yourself with dark imaginings.
Many fears are born of fatigue and loneliness.
Beyond a wholesome discipline,
Be gentle with yourself.
You are a child of the universe,
No less than the trees and the stars;
You have a right to be here.
And whether or not it is clear to you,
No doubt the universe is unfolding as it should.
Therefore be at peace with God,
Whatever you conceive Him to be,
And whatever your labors and aspirations,
In the noisy confusion of life keep peace with your soul.
With all its sham, drudgery, and broken dreams,
It is still a beautiful world.
Be cheerful.
Strive to be happy.
And remember what peace there may be in silence.
As far as possible without surrender
Be on good terms with all persons.
Speak your truth quietly and clearly;
And listen to others,
Even the dull and the ignorant;
They too have their story.
Avoid loud and aggressive persons,
They are vexations to the spirit.
If you compare yourself with others,
You may become vain and bitter;
For always there will be greater and lesser persons than yourself.
Enjoy your achievements as well as your plans.
Keep interested in your own career, however humble;
It is a real possession in the changing fortunes of time.
Exercise caution in your business affairs;
For the world is full of trickery.
But let this not blind you to what virtue there is;
Many persons strive for high ideals;
And everywhere life is full of heroism.
Be yourself.
Especially, do not feign affection.
Neither be cynical about love;
For in the face of all aridity and disenchantment
It is as perennial as the grass.
Take kindly the counsel of the years,
Gracefully surrendering the things of youth.
Nurture strength of spirit to shield you in sudden misfortune.
But do not distress yourself with dark imaginings.
Many fears are born of fatigue and loneliness.
Beyond a wholesome discipline,
Be gentle with yourself.
You are a child of the universe,
No less than the trees and the stars;
You have a right to be here.
And whether or not it is clear to you,
No doubt the universe is unfolding as it should.
Therefore be at peace with God,
Whatever you conceive Him to be,
And whatever your labors and aspirations,
In the noisy confusion of life keep peace with your soul.
With all its sham, drudgery, and broken dreams,
It is still a beautiful world.
Be cheerful.
Strive to be happy.
This Winner Will Never Quit!
About my quitting - I am trying to prevent that eventuality. I know that it’s just a matter of time before these bureaucratic bunglers finally get their act together and correct their mistake. I am absolutely clear about what I want to do – get back home - and I am determined to. In the meantime, I will continue to treat this as a mid-career retirement and work on my book.
I expect that I will be able to submit my manuscript to the publisher by Q1 of 2008. If accepted, we would be targeting to release by end-2008. They apparently need that kind of time for editing and tying up the international contracts.
V K Karthika is Publisher and Chief Editor of HarperCollins and is based in New Delhi. She is amazingly prompt in responding to mails from even non-entities like me - and is very encouraging too – just the kind of professional that a budding writer needs!
PS: To hedge my risks, however, I am also planning a trip to Dubai next month - to check out opportunities there first-hand.
I expect that I will be able to submit my manuscript to the publisher by Q1 of 2008. If accepted, we would be targeting to release by end-2008. They apparently need that kind of time for editing and tying up the international contracts.
V K Karthika is Publisher and Chief Editor of HarperCollins and is based in New Delhi. She is amazingly prompt in responding to mails from even non-entities like me - and is very encouraging too – just the kind of professional that a budding writer needs!
PS: To hedge my risks, however, I am also planning a trip to Dubai next month - to check out opportunities there first-hand.
Wednesday, June 20, 2007
Hotelier’s Guide to Success
An eye-catching poster outside the Chairman’s office at Aitken Spence Hotels reads: “The key to happiness is having dreams; the key to success is making dreams come true.”So, how does Aitken Spence Hotel Managements (ASHM) intend to make the ‘third dimension’ dream come true? The Sunday Times FT spoke to Anil Udawatte, Director – Sales and Marketing, to find out. Explaining the background, Udawatte said, “Our Director, Gemunu Goonewardene, came up with the health dimension concept and we sounded out the head chefs, who found it exciting.”
Wouldn’t a concerted, Tourist Board-backed effort have had the potential for greater success? “As a commercial organization,” explains Udawatte, “we have to be commercially responsible. If everyone had been involved, things would not have been as smooth as just one company taking the decisions. ASHM now has the first-mover advantage. We will make a start and we would like everyone to get onto the bandwagon.”
ASHM has ten properties in Sri Lanka, of which Kandalama and Ahungalla are Heritance brand properties. The company has five properties in the Maldives. This month, it also opened two in India - a 68-room hotel in Trivandrum and an 18-room boutique property in the Andaman Islands.
Speaking of the target audience, Udawatte says, “We are initially targeting Sri Lankans and will gradually take the promotion across the world.” At the Heritance properties, 75% of the guests are foreigners, and 25% are locals. However, the company is focusing on the domestic clientele first “because it typically takes longer for foreigners to get accustomed to our cuisine.”
“Over the coming month,” says Udawatte, “we will implement a special buffet corner with indigenous cuisine, in addition to the existing buffet. This will be kicked off at our Heritance properties”, where occupancy is currently at sub-40% levels and rooms are available at LKR 8500 (approx US$ 77) per day.
Upmarket, widely-traveled tourists from the West look for authentic experiences when visiting countries on holiday. Their palate adjusts to cuisines from Thailand, Vietnam and India. However, Sri Lanka is not attracting these top-end customers at the moment. “What we do get are low-end tourists who prefer cornflakes, butter and jam, cheese and cold meats. We are basically serving Western food to Westerners,” says Udawatte. “On the contrary, Indians promote their food well. There, 75% of the buffet is Indian, with very little cold meats and salads.”
Talking of the ‘third dimension’ promotion, Udawatte says, “Most people in Colombo do not know how to prepare authentic Sri Lankan cuisine, what spices and ingredients to use and what benefits can be derived.” The promotion will be backed by in-room publicity on TV channels, with menu cards detailing the health benefits. Over time, ASHM will also advertise this USP with ‘healthy weekend’ packages.
“You have two options,” Udawatte concludes, “Either you can eat or you can dine. Eating can be done anytime, anywhere, even on the wayside. But fine dining will never go out of fashion.”
Food: The Third Dimension
It is unusual to see four chefs in full regalia gracing the head table at a press briefing. However, rather than spoiling the broth like the cooks in the adage do, the chefs’ presence here was appropriate, lending a touch of credibility to the proceedings. There was well-known master chef, Dr Publis Silva accompanied by Chefs Dimuthu Kumarasinghe, S Rathnapala and Arosha Jayasinghe.Kumarasinghe, designated as Group Culinary Development Chef at Aitken Spence Hotels, has acquired something akin to an aura. He is the only person in the world to have won nine gold medals in the Culinary Olympics and Culinary World Cup.
Aitken Spence Hotels unveiled their ‘third dimension to indigenous cuisine’ this week. Introducing the concept, Ravi de Silva, consultant for Social and Environmental Management for Aitken Spence Hotels, explained that taste and presentation had long been recognised as aspects that needed attention when dealing with cuisine. Aitken Spence is now introducing the third dimension – health - at its Heritance properties at Kandalama and Ahungalla. De Silva explained, “We have got muddled up in a pickle of ingredients. It’s about time we showed the world our heritage in food.”
It is believed that there are forty spices and flavours identified in Sri Lankan cuisine. Most of them have been highly valued in both Eastern and Western systems of medicine for generations. Malin Hapugoda, Managing Director of Aitken Spence Hotels, said, “Despite its many nutritive and medicinal qualities, however, Sri Lankan cuisine has not received due recognition.”
Director Gemunu Goonewardene spoke of the huge untapped demand for health food. “Aitken Spence Hotels has the experience and reputation to launch good food with indigenous ingredients”, he said. These could replace the grills and stews that have become standard fare nowadays.
The occasion brought together several luminaries in the field of nutrition. Addressing the gathering, Dr Ananda Chandrasekara, Senior Lecturer on Nutrition and Dietetics at the University of Peradeniya, pointed out, "Eating patterns have changed for the worse. The majority of our diseases – obesity, diabetes, hypertension and cholesterol - are the consequence of an improper diet.”
Dr Vajira Senaviratne’s integrated expertise in ayurvedic and modern pharmaceutical science was in evidence. He pointed out that many Sri Lankan condiments, besides being flavouring agents that they have acquired a reputation for, also have therapeutic qualities. This ‘third dimension’ initiative is an extension of our ancestors’ belief that ‘Arogya parama laabha’. (Health is the greatest wealth.)
Ten years ago, ayurveda was small, but had big potential that was tapped into. Westerners who visit Sri Lanka for a week or two of ayurvedic treatment have improved earnings from tourism. With a million tourists targeted by 2010, the ‘third dimension’ initiative will emphasise the ‘healthy lifestyle’ message. It would also extend the country’s tourism positioning beyond the beach – adventure – culture circuit.
With Maubima Lanka Foundation’s ‘Buy Lankan’ campaign having been launched recently, Aitken Spence Hotels’ move is timed perfectly to promote the sale and consumption of local cuisine.
Thursday, June 14, 2007
Hatching a Conspiracy
Colleague: Work’s a drag. Lots of meetings (useless, of course). Sometimes, I wonder if all these processes that we talk about at meetings - over and over again - would have been affected if one didn't attend those meetings!
Well, that's the way the cookie crumbles. It’s crazy at the office… No direction… No motivation… Lots of bitching… The same old story, huh?!!
AM: Let me share a closely-guarded secret with you… You might have figured it out by now, if you are as intelligent as you look... Meetings are a conspiracy ‘hatched’ (pun certainly intended) by Subtle Pastimes Association of Senior Management, SPASM. They were never meant to serve any purpose... Meetings are merely a social activity - to break the monotony of peering into computer screens by gazing at colleagues instead.
Unlike most marketing professionals (who often have bright and attractive images to look at), lesser mortals usually have to peer at plain text. The absolute scum of the world are forced to peer at numbers, instead of what they would have preferred to gaze at – figures..! To think that the entire menagerie gets paid handsomely for all this intense peering and gazing is part of the conspiracy.
See ya… I need to locate another company that has computer screens that need peering into… Peer pressure, you understand…?
Well, that's the way the cookie crumbles. It’s crazy at the office… No direction… No motivation… Lots of bitching… The same old story, huh?!!
AM: Let me share a closely-guarded secret with you… You might have figured it out by now, if you are as intelligent as you look... Meetings are a conspiracy ‘hatched’ (pun certainly intended) by Subtle Pastimes Association of Senior Management, SPASM. They were never meant to serve any purpose... Meetings are merely a social activity - to break the monotony of peering into computer screens by gazing at colleagues instead.
Unlike most marketing professionals (who often have bright and attractive images to look at), lesser mortals usually have to peer at plain text. The absolute scum of the world are forced to peer at numbers, instead of what they would have preferred to gaze at – figures..! To think that the entire menagerie gets paid handsomely for all this intense peering and gazing is part of the conspiracy.
See ya… I need to locate another company that has computer screens that need peering into… Peer pressure, you understand…?
Mixing Business with Pleasure
I’m enjoying my writing. It’s something that I had planned to do after retiring to Goa in 2021 AD. But, since retirement has come earlier than anticipated, I thought I might as well fill up this blank phase of my life…
As a profession, writing is so much more creative than accounting… I might even have considered this as an alternate profession, except that ‘entry level pay scales’ are not that hot… On Saturday night, I also had a recording session - over Scotch whisky and cashew nuts - with the protagonist of my book. Mixing business with pleasure, you could say... The book should be on shelves next winter (2008).
As a profession, writing is so much more creative than accounting… I might even have considered this as an alternate profession, except that ‘entry level pay scales’ are not that hot… On Saturday night, I also had a recording session - over Scotch whisky and cashew nuts - with the protagonist of my book. Mixing business with pleasure, you could say... The book should be on shelves next winter (2008).
Tuesday, June 12, 2007
Another Day Has Dawned...
Early mornings in Colombo are divine; the temperature and humidity are comfortably low. The wind rustling through the palm trees outside my window seems to whisper, “Rise and shine”, and I am inclined to obey…
At precisely 5:30, unseen exotic birds begin an impromptu jugalbandi while the crows, buffeted by the breeze, fly an erratic path – like revelers after a night of indulgence. High above, more than a dozen geese drift across the lightening skies in perfect V-formation; 'unflappable' is the word that comes to mind..!
"God's in his Heaven –
All's right with the world!”
Tiring of their exertions, the crows begin their raucous cacophony, ending the jugalbandi as effectively as the moral police breaking up a rock concert.
Another day has dawned… Day 424...
At precisely 5:30, unseen exotic birds begin an impromptu jugalbandi while the crows, buffeted by the breeze, fly an erratic path – like revelers after a night of indulgence. High above, more than a dozen geese drift across the lightening skies in perfect V-formation; 'unflappable' is the word that comes to mind..!
"God's in his Heaven –
All's right with the world!”
Tiring of their exertions, the crows begin their raucous cacophony, ending the jugalbandi as effectively as the moral police breaking up a rock concert.
Another day has dawned… Day 424...
Monday, June 11, 2007
Themes from the Summit
The Dividends of Peace
US Ambassador Robert Blake quoted Colin Powell when he said, “Capital is a coward. It flees from conflict and unpredictability.”
Giving the example of Northern Ireland, British Ambassador Dominick Chilcott said that – following the outbreak of peace – unemployment had fallen to 4.2% in 2006, lower than the average for Britain as a whole. He said that peace would provide the best opportunity in Sri Lanka.
Indian Ambassador Alok Prasad echoed these sentiments, describing peace as an essential element to restore business confidence.
Clean & Easy Business Climate
In the Business Climate Rankings, Sri Lanka stands 89th on ‘ease of doing business’. Calling for improving the ease of doing business, Dr Nihal Samarappuli, Executive Director (Research), Board of Investment of Sri Lanka, said that prospective foreign investors perceive our business climate as ‘quite average’.
Similarly, Malik Fernando, Director of MJF Holdings – the company that turned a bulk tea business into the Dilmah brand - advised firms to “incorporate integrity and ethics into your business model.”
Potent Trade Agreements
Julian Wilson, Ambassador – European Union, indicated that despite being the only country in Asia to which GSP-Plus had been granted, Sri Lanka is under-utilising the opportunity. Although 98% of exports to Europe were eligible for GSP-Plus, Sri Lanka is availing of the facility for only 40%. The rules of origin issue could possibly be relaxed during the coming year, which should increase the opportunity available.
Prasad made a similar comment when he exhorted manufacturers to tap potential under the FTA. He expressed optimism that the Comprehensive Economic Partnership Agreement (CEPA) would be concluded by the end of this year. The CEPA would introduce shorter negative lists, recognise standards and simplify customs procedures.
Carving Out Your Niche
When Dayasiri Warnakulasooriya, Chairman/ Managing Director, Midaya Ceramics, spoke of the market for designer ceramics – and the potential for manufacturers to work with ‘studio potters’, he was talking niche marketing.
Asoka Hettigoda, Managing Director, Hettigoda Industries, similarly spoke of the opportunity and potential in ayurveda; global trade in herbals has an estimated value of US$ 120 billion.
Fernando advised exporters not to sell cheap and to “always position your product as a premium product.” He emphasized productivity and an entrepreneurial culture when he urged the audience to “break out of the comfort zone that you are in.”
Tertiary Education and ICT
Opportunities in the education and information and communications technology (ICT) sectors were also described as promising. Blake called for permission to be granted for more foreign universities, and partnerships to staff the nascent ICT sector.
Chilcott also spoke of the need for high-performance ICT and remarked at the rising number of students going overseas for education.
Policy Climate and Funding
To attract a sharp increase in private investment – predominantly FDI – that could bridge the technology gap, a more consistent and predictable policy climate is desirable.
Farmers and SMEs located in rural areas have low access to bank funds, which needed to be addressed.
US Ambassador Robert Blake quoted Colin Powell when he said, “Capital is a coward. It flees from conflict and unpredictability.”
Giving the example of Northern Ireland, British Ambassador Dominick Chilcott said that – following the outbreak of peace – unemployment had fallen to 4.2% in 2006, lower than the average for Britain as a whole. He said that peace would provide the best opportunity in Sri Lanka.
Indian Ambassador Alok Prasad echoed these sentiments, describing peace as an essential element to restore business confidence.
Clean & Easy Business Climate
In the Business Climate Rankings, Sri Lanka stands 89th on ‘ease of doing business’. Calling for improving the ease of doing business, Dr Nihal Samarappuli, Executive Director (Research), Board of Investment of Sri Lanka, said that prospective foreign investors perceive our business climate as ‘quite average’.
Similarly, Malik Fernando, Director of MJF Holdings – the company that turned a bulk tea business into the Dilmah brand - advised firms to “incorporate integrity and ethics into your business model.”
Potent Trade Agreements
Julian Wilson, Ambassador – European Union, indicated that despite being the only country in Asia to which GSP-Plus had been granted, Sri Lanka is under-utilising the opportunity. Although 98% of exports to Europe were eligible for GSP-Plus, Sri Lanka is availing of the facility for only 40%. The rules of origin issue could possibly be relaxed during the coming year, which should increase the opportunity available.
Prasad made a similar comment when he exhorted manufacturers to tap potential under the FTA. He expressed optimism that the Comprehensive Economic Partnership Agreement (CEPA) would be concluded by the end of this year. The CEPA would introduce shorter negative lists, recognise standards and simplify customs procedures.
Carving Out Your Niche
When Dayasiri Warnakulasooriya, Chairman/ Managing Director, Midaya Ceramics, spoke of the market for designer ceramics – and the potential for manufacturers to work with ‘studio potters’, he was talking niche marketing.
Asoka Hettigoda, Managing Director, Hettigoda Industries, similarly spoke of the opportunity and potential in ayurveda; global trade in herbals has an estimated value of US$ 120 billion.
Fernando advised exporters not to sell cheap and to “always position your product as a premium product.” He emphasized productivity and an entrepreneurial culture when he urged the audience to “break out of the comfort zone that you are in.”
Tertiary Education and ICT
Opportunities in the education and information and communications technology (ICT) sectors were also described as promising. Blake called for permission to be granted for more foreign universities, and partnerships to staff the nascent ICT sector.
Chilcott also spoke of the need for high-performance ICT and remarked at the rising number of students going overseas for education.
Policy Climate and Funding
To attract a sharp increase in private investment – predominantly FDI – that could bridge the technology gap, a more consistent and predictable policy climate is desirable.
Farmers and SMEs located in rural areas have low access to bank funds, which needed to be addressed.
Thursday, June 7, 2007
"Growth as a Panacea"
On the sidelines of the Sri Lanka Economic Summit 2007 (SLES-07), Mahen Dayananda, Chairman, The Ceylon Chamber of Commerce, spoke exclusively with The Sunday Times FT. Some excerpts:
Objectives of SLES-07
The main objective is to address the huge mismatch in regional development. The Western Province has a per capita income approaching USD 2,000, which is very impressive. However, the situation is very different in the regions. Moneragala is at USD 600; we cannot justify this disparity any longer.
The main issue that we intend to address is the development of infrastructure, which is so important in addressing imbalance. The more regional imbalances there are, the more the potential for dissatisfaction.
The Western Province is so active and productive because we have much better infrastructure than the regions do. We have the port; the only international airport in the country is 45 minutes from Colombo. We want to come to some affirmative action to address these issues.
Widening growth will address several issues apart from economic development - social issues, most definitely. It can contribute to a rapid settlement of our ethnic problem; with economic prosperity, the people’s mindset changes.
SLES: History and Achievements
There have been five ‘business conventions’ previously. This is only the second economic summit. The significant difference is that we have been upgrading. The main point of departure is the increased number of participating ministers. We are doing this with a chosen partner - the Board of Investment, to add value by encompassing a much wider spectrum.
We are looking at the Indian model where CII (Confederation of Indian Industry) has an annual economic summit that is on a public – private partnership basis. Most leaders relevant to economy participate at the forum: Prime Minister, Finance Minister and Commerce and Industry Minister. That is what we are trying to replicate.
Foreign Investment: Sectors
Foreign investment is definitely required to develop our infrastructure. We most definitely need inputs - not always investment, but foreign technology.
We also need to add value to a number of our commodity exports. Tea and spices are classic examples of where we need to go up the value-addition chain. For that, we need foreign technology, specifically for upgrading quality standards. Today, tea has moved from being a bulk commodity to being an ISO-certified product. That’s no longer enough; we have to be HACCP-certified. All this means investment, technology, and foreign inputs.
On IT and BPO: HSBC, ‘the world’s local bank’, has a BPO facility in Colombo that was entirely driven by foreign input in terms of how it was set up. Similarly, the font of IT in Asia is India, whose input is going to be essential.
To Avoid ‘Talk Shop’ Label
Extensive notes will be maintained by the CCC throughout the summit. We will extricate the important issues that emerge from the deliberations. Having done that, we will prepare a document encompassing them all and present it to the government, who will take it very seriously.
Objectives of SLES-07
The main objective is to address the huge mismatch in regional development. The Western Province has a per capita income approaching USD 2,000, which is very impressive. However, the situation is very different in the regions. Moneragala is at USD 600; we cannot justify this disparity any longer.
The main issue that we intend to address is the development of infrastructure, which is so important in addressing imbalance. The more regional imbalances there are, the more the potential for dissatisfaction.
The Western Province is so active and productive because we have much better infrastructure than the regions do. We have the port; the only international airport in the country is 45 minutes from Colombo. We want to come to some affirmative action to address these issues.
Widening growth will address several issues apart from economic development - social issues, most definitely. It can contribute to a rapid settlement of our ethnic problem; with economic prosperity, the people’s mindset changes.
SLES: History and Achievements
There have been five ‘business conventions’ previously. This is only the second economic summit. The significant difference is that we have been upgrading. The main point of departure is the increased number of participating ministers. We are doing this with a chosen partner - the Board of Investment, to add value by encompassing a much wider spectrum.
We are looking at the Indian model where CII (Confederation of Indian Industry) has an annual economic summit that is on a public – private partnership basis. Most leaders relevant to economy participate at the forum: Prime Minister, Finance Minister and Commerce and Industry Minister. That is what we are trying to replicate.
Foreign Investment: Sectors
Foreign investment is definitely required to develop our infrastructure. We most definitely need inputs - not always investment, but foreign technology.
We also need to add value to a number of our commodity exports. Tea and spices are classic examples of where we need to go up the value-addition chain. For that, we need foreign technology, specifically for upgrading quality standards. Today, tea has moved from being a bulk commodity to being an ISO-certified product. That’s no longer enough; we have to be HACCP-certified. All this means investment, technology, and foreign inputs.
On IT and BPO: HSBC, ‘the world’s local bank’, has a BPO facility in Colombo that was entirely driven by foreign input in terms of how it was set up. Similarly, the font of IT in Asia is India, whose input is going to be essential.
To Avoid ‘Talk Shop’ Label
Extensive notes will be maintained by the CCC throughout the summit. We will extricate the important issues that emerge from the deliberations. Having done that, we will prepare a document encompassing them all and present it to the government, who will take it very seriously.
Opening Night: SLES-07
When you’re at the summit, you must be closer to the stars. The Sri Lanka Economic Summit 2007 was no different. The stars were all there, at their brilliant best – Naoko Ishii of World Bank, Richard Vokes of ADB, British High Commissioner Dominick Chilcott, Swiss ambassador Ruth Flint, several members of the diplomatic community, a sprinkling of ministers and a strong delegation from the Confederation of Indian Industry.
At another summit in Heiligendamm, Germany, world leaders were discussing the state of the planet on Wednesday. But – at the Cinnamon Grand – all eyes were riveted on Sri Lanka. It was, as Dhammika Perera, Chairman/ Director General, Board of Investment of Sri Lanka, put it, “the ideal forum for all in the public and private sectors, to pool resources and formulate future strategies”.
Presidential Secretary Lalith Weeratunge delivered a message from President Mahinda Rajapaksa, in which he pointed out that last year’s GDP growth of 7.4% had been the result of careful planning and effective implementation. Even so, he emphasised the need to sustain an average annual growth rate of 8% over the next five years, in order to perceptibly raise living standards.
In sync with the summit’s theme, ‘Spreading the Wings of Development’, Chief Guest Dr Sarath Amunugama, Minister of Enterprise Development & Investment Promotion, stressed the need to develop outlying areas to counter regional imbalances. A focus on infrastructure – roads, power and water – would bring rural areas also into the growth trajectory. Dr Amunugama indicated that, led by the service sector, the Western Province had recorded a growth rate of 12%.
Quoting from a Newsweek article, Dr Amunugama said that India’s middle class of 50 million people would multiply ten-fold by 2012. “Which other island nation can boast of being twenty miles away from the world’s biggest market?” he gloated, indicating that Sri Lanka’s hub status would be a crucial factor during the next decade.
Commending the private sector for being model employers, Dr Amunugama specifically alluded to the positive image that the garment industry had earned by adopting best practices.
Guest Speaker Arun Nanda, Chairman/ Managing Director of Rediffusion DY&R, spoke of the need to brand Sri Lanka for the global market. Such a brand must emanate from the characteristic of its people. A national brand identity could even catalyse renewed patriotism, he opined, in addition to acting as a powerful endorser. Suggesting ‘Gifted Commitment’ as a brand value proposition for Sri Lanka, he said that the country’s cricket team epitomized exactly such a spirit.
Nanda recommended a three-pronged approach to address prevailing negative perceptions. First, restrict our market to South Asia, which is more balanced in its perception of violence. Second, counter-reference the issue – like Ireland did by localizing the plague of terrorism to Belfast. Third, host a major sporting event and “let that experience be your media”.
The summit is being hosted by The Ceylon Chamber of Commerce, in partnership with the Board of Investment of Sri Lanka.
At another summit in Heiligendamm, Germany, world leaders were discussing the state of the planet on Wednesday. But – at the Cinnamon Grand – all eyes were riveted on Sri Lanka. It was, as Dhammika Perera, Chairman/ Director General, Board of Investment of Sri Lanka, put it, “the ideal forum for all in the public and private sectors, to pool resources and formulate future strategies”.
Presidential Secretary Lalith Weeratunge delivered a message from President Mahinda Rajapaksa, in which he pointed out that last year’s GDP growth of 7.4% had been the result of careful planning and effective implementation. Even so, he emphasised the need to sustain an average annual growth rate of 8% over the next five years, in order to perceptibly raise living standards.
In sync with the summit’s theme, ‘Spreading the Wings of Development’, Chief Guest Dr Sarath Amunugama, Minister of Enterprise Development & Investment Promotion, stressed the need to develop outlying areas to counter regional imbalances. A focus on infrastructure – roads, power and water – would bring rural areas also into the growth trajectory. Dr Amunugama indicated that, led by the service sector, the Western Province had recorded a growth rate of 12%.
Quoting from a Newsweek article, Dr Amunugama said that India’s middle class of 50 million people would multiply ten-fold by 2012. “Which other island nation can boast of being twenty miles away from the world’s biggest market?” he gloated, indicating that Sri Lanka’s hub status would be a crucial factor during the next decade.
Commending the private sector for being model employers, Dr Amunugama specifically alluded to the positive image that the garment industry had earned by adopting best practices.
Guest Speaker Arun Nanda, Chairman/ Managing Director of Rediffusion DY&R, spoke of the need to brand Sri Lanka for the global market. Such a brand must emanate from the characteristic of its people. A national brand identity could even catalyse renewed patriotism, he opined, in addition to acting as a powerful endorser. Suggesting ‘Gifted Commitment’ as a brand value proposition for Sri Lanka, he said that the country’s cricket team epitomized exactly such a spirit.
Nanda recommended a three-pronged approach to address prevailing negative perceptions. First, restrict our market to South Asia, which is more balanced in its perception of violence. Second, counter-reference the issue – like Ireland did by localizing the plague of terrorism to Belfast. Third, host a major sporting event and “let that experience be your media”.
The summit is being hosted by The Ceylon Chamber of Commerce, in partnership with the Board of Investment of Sri Lanka.
Tuesday, June 5, 2007
Life Sucks, Sometimes
AM (May 31): I have decided that I would be willing to commit to serving one year – at least - with the Taj Samudra in Colombo.
We would also need to examine the feasibility of the Indian Hotels crediting my emoluments to Titan Industries. Such an arrangement would mean that I would technically be ‘on deputation from Titan’. This arrangement is merely to ensure that (a) my family in Bangalore is taken care of and (b) I can continue following up for an employment visa. The question of whether I will continue with Titan or Indian Hotels after June 2008 could be deferred to a later date.
If crediting my emoluments in the manner described above is not an issue, I would be eager to join Taj Samudra at any time you may decide.
SR, General Manager (June 1): I don’t think I can commit the same to you as the decision has to be taken by the corporate office. I will mark you mail to Jamshed to seek his inputs and see if this is possible.
SR, General Manager (June 6): I have discussed this with the corporate office and have to regret that, given the peculiar circumstances that you are presently in, we will not be able to employ you at Taj Samudra.
AM (June 10): Although it certainly came as a disappointment to me, I do understand the decision. In fact, I am grateful that I was even considered.
Comment: I wish they had checked first, instead of getting my hopes up... Since it came through the Tata Group, I assumed that they would have known the background...
We would also need to examine the feasibility of the Indian Hotels crediting my emoluments to Titan Industries. Such an arrangement would mean that I would technically be ‘on deputation from Titan’. This arrangement is merely to ensure that (a) my family in Bangalore is taken care of and (b) I can continue following up for an employment visa. The question of whether I will continue with Titan or Indian Hotels after June 2008 could be deferred to a later date.
If crediting my emoluments in the manner described above is not an issue, I would be eager to join Taj Samudra at any time you may decide.
SR, General Manager (June 1): I don’t think I can commit the same to you as the decision has to be taken by the corporate office. I will mark you mail to Jamshed to seek his inputs and see if this is possible.
SR, General Manager (June 6): I have discussed this with the corporate office and have to regret that, given the peculiar circumstances that you are presently in, we will not be able to employ you at Taj Samudra.
AM (June 10): Although it certainly came as a disappointment to me, I do understand the decision. In fact, I am grateful that I was even considered.
Comment: I wish they had checked first, instead of getting my hopes up... Since it came through the Tata Group, I assumed that they would have known the background...
Saturday, June 2, 2007
MASsive Feather in Lanka’s Cap
The World Business magazine has ranked ‘The Brothers Amalean’ among Asia’s Top 20 progressive individuals. Mahesh, Ajay and Sharad Amalean are the founders of MAS Holdings, a multinational operating 28 facilities across seven countries and employing over 40,000 people.
The Top 20 list includes some of the continent’s prominent businesspeople who are notable for their forward-looking approach. The philanthropic nature of these businesspeople has also been acknowledged. Philanthropy is essential in Asia, the article observes, where “governments… lack sufficient resources to do all that should be done to take care of society’s most vulnerable”.
The Amalean brothers have been recognized for their progressive leadership in running a professionally-managed and responsible private entity. They have done this while adhering to the core values of honesty, integrity and fair play.
The nomination of the Amaleans, ranked 14th, is even more creditable because this listing is not restricted to businesspersons. The magazine has assessed the entire spectrum of individuals who are driving Asia forward, from country leaders to business people to reformists. The list identifies those who are helping to bring about rules-based civil societies and those advancing the cause of better governance – be it in business or government.
Other South Asians featured on the list are Narayana Murthy (4th), Muhammad Yunus (6th), Ratan Tata (12th) and Pushpa Kamal Dahal – alias Prachanda (20th).
The Citation:
Mahesh, Ajay and Sharad Amalean, Sri Lanka
The three Amalean brothers founded MAS Holdings - a Sri Lanka-based intimate apparel maker - in 1986. It is the largest supplier to Victoria’s Secret; other customers include Gap, Marks & Spencer, Tesco and Reebok. In March 2007, MAS announced plans to launch its own brand this August.
The company has seventeen plants in eight countries and 35,000 employees. But what’s remarkable about it is its home-grown corporate social responsibility (CSR) programme. Women comprise more than 90% of MAS’ employees and so the company established the Women Go Beyond programme to educate and empower its employees. A beauty, health and hygiene certificate is offered, and there are classes on reproductive health, domestic violence and traditional crafts. Nearby schools and hospitals are funded and scholarships are awarded.
MAS set up its plants in rural locations near villages so that women would not have to leave their families to find work, and all employees must be aged at least eighteen. (In contrast, Chinese factories can take on employees as young as fourteen.) The company also invests in developing clear career paths: its Ready to Unleash programme aims to guide graduates into the company and on to management levels.
MAS has faced intense competition from China. The international Multi-Fibre Agreement, which ended in 2005, ensured that at least some of the West’s clothing and textiles are sourced from smaller developing countries. Since then, the Amaleans have shown that it is possible to compete with sweatshops in China by emphasizing their CSR programme, which has made MAS a more attractive source for retailers with ethical buying policies.
The Top 20 list includes some of the continent’s prominent businesspeople who are notable for their forward-looking approach. The philanthropic nature of these businesspeople has also been acknowledged. Philanthropy is essential in Asia, the article observes, where “governments… lack sufficient resources to do all that should be done to take care of society’s most vulnerable”.
The Amalean brothers have been recognized for their progressive leadership in running a professionally-managed and responsible private entity. They have done this while adhering to the core values of honesty, integrity and fair play.
The nomination of the Amaleans, ranked 14th, is even more creditable because this listing is not restricted to businesspersons. The magazine has assessed the entire spectrum of individuals who are driving Asia forward, from country leaders to business people to reformists. The list identifies those who are helping to bring about rules-based civil societies and those advancing the cause of better governance – be it in business or government.
Other South Asians featured on the list are Narayana Murthy (4th), Muhammad Yunus (6th), Ratan Tata (12th) and Pushpa Kamal Dahal – alias Prachanda (20th).
The Citation:
Mahesh, Ajay and Sharad Amalean, Sri Lanka
The three Amalean brothers founded MAS Holdings - a Sri Lanka-based intimate apparel maker - in 1986. It is the largest supplier to Victoria’s Secret; other customers include Gap, Marks & Spencer, Tesco and Reebok. In March 2007, MAS announced plans to launch its own brand this August.
The company has seventeen plants in eight countries and 35,000 employees. But what’s remarkable about it is its home-grown corporate social responsibility (CSR) programme. Women comprise more than 90% of MAS’ employees and so the company established the Women Go Beyond programme to educate and empower its employees. A beauty, health and hygiene certificate is offered, and there are classes on reproductive health, domestic violence and traditional crafts. Nearby schools and hospitals are funded and scholarships are awarded.
MAS set up its plants in rural locations near villages so that women would not have to leave their families to find work, and all employees must be aged at least eighteen. (In contrast, Chinese factories can take on employees as young as fourteen.) The company also invests in developing clear career paths: its Ready to Unleash programme aims to guide graduates into the company and on to management levels.
MAS has faced intense competition from China. The international Multi-Fibre Agreement, which ended in 2005, ensured that at least some of the West’s clothing and textiles are sourced from smaller developing countries. Since then, the Amaleans have shown that it is possible to compete with sweatshops in China by emphasizing their CSR programme, which has made MAS a more attractive source for retailers with ethical buying policies.
Friday, June 1, 2007
Ranveli Beach Resort
My family had come to Sri Lanka for a couple of weeks. It was a great fortnight by any standards, re-bonding with the family. We stayed at a beach resort (accommodation at US$ 12 per day for a family room, thanks to no foreign tourists!).
A great moment in the twilight was my son and I standing bare-bodied on the beach, holding our fluttering shirts above our heads – like a scene from Rang De Basanti.
It was nice to be able to teach my daughter Maths without losing my patience. Communicating with my wife has also become an exercise in sharing, rather than trying to impose our wills on each other.
A great moment in the twilight was my son and I standing bare-bodied on the beach, holding our fluttering shirts above our heads – like a scene from Rang De Basanti.
It was nice to be able to teach my daughter Maths without losing my patience. Communicating with my wife has also become an exercise in sharing, rather than trying to impose our wills on each other.
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