Micro Cars Ltd donated a bus worth Rs. 9 million to be used for Covid19 operations in Sri Lanka. Here founding Chairman, Dr. Lawrence Perera handing over the Micro Bus to President Gotabaya Rajapaksa.
The COVID-19 pandemic poses unprecedented socioeconomic risks to the global economy, and the costs mandate an assessment of its impact on economic growth says Moody’s Analytics, a financial intelligence company, which operates independently of the Moody’s Investors Service credit rating agency.
An important step towards quantifying the impact is to identify the nature of this shock. The COVID-19 outbreak represents a sharp and synchronized global supply-shock that has simultaneously hit multiple economies, caused by the physical constraints to domestic production as a direct or indirect consequence of the outbreak.
“Our estimates indicate that highly integrated economies are expected to suffer the most significant setbacks. While the economies of Japan and South Korea can potentially contract by up to 8.6% in 2020, because of their higher sensitivity to overseas demand conditions, other economies such as Australia can experience output losses of up to 10.6% in 2020, because of reduced global demand for commodities such as coal and iron ore and a short-term slump in the demand for overseas education.”
Services-driven economies such as Singapore and Hong Kong can contract by up to 12.1% in 2020, as international travel restrictions weigh asymmetrically on these markets and erode their appeal as regional financial hubs. Services-driven economies such as Singapore and Hong Kong can contract by up to 12.1% in 2020, as international travel restrictions weigh asymmetrically on these markets and erode their appeal as regional financial hubs.
High-growth, developing economies such as China and India are likely to experience annual GDP losses in the range of 4.4% to 8.1% in 2020, led by significant declines in manufacturing output and retail trade. While an earlier resumption in economic activity prevents a protracted slowdown in China, India may experience a deeper contraction in the short term because of weakened internal forces in the event of an extended nationwide lockdown.w
The Sri Lanka-China Business Council of the Ceylon Chamber of Commerce organized a Webinar on “COVID-19: China’s experience” onMay 30, 2020 with the participation of Consul General of Sri Lanka in Shanghai Manorie Mallikaratchy, and Trade Finance Representative, Bank of China in Colombo Indika Karunarathne.
The discussion was moderated by President, Sri Lanka –China Business Council Thulitha Mendis.
Over 150 companies in Sri Lanka were registered with over 200 registrations and participants who took part in the webinar by sending questions for the resource persons in advance.
The Consul General’s presentation covered areas such as safety measures adopted by China in containing the spread of COVID-19, current status of the market with regard to COVID -19 pandemic, new trends, as well as rules in facilitation of imported goods into the Chinese market, practical issues with regard to sea and air freight operations, new opportunities for Sri Lanka in the post COVID-19 scenario as well as general analysis of the pandemic and use of technology in overcoming challenges caused by the current situation.
According to the Ceylon Chamber of Commerce this is the first international webinar that they held in order to update its membership on the market trends in China.
The COVID-19 pandemic poses unprecedented socioeconomic risks to the global economy, and the costs mandate an assessment of its impact on economic growth says Moody’s Analytics, a financial intelligence company, which operates independently of the Moody’s Investors Service credit rating agency.
An important step towards quantifying the impact is to identify the nature of this shock. The COVID-19 outbreak represents a sharp and synchronized global supply-shock that has simultaneously hit multiple economies, caused by the physical constraints to domestic production as a direct or indirect consequence of the outbreak.
“Our estimates indicate that highly integrated economies are expected to suffer the most significant setbacks. While the economies of Japan and South Korea can potentially contract by up to 8.6% in 2020, because of their higher sensitivity to overseas demand conditions, other economies such as Australia can experience output losses of up to 10.6% in 2020, because of reduced global demand for commodities such as coal and iron ore and a short-term slump in the demand for overseas education.”
Services-driven economies such as Singapore and Hong Kong can contract by up to 12.1% in 2020, as international travel restrictions weigh asymmetrically on these markets and erode their appeal as regional financial hubs. Services-driven economies such as Singapore and Hong Kong can contract by up to 12.1% in 2020, as international travel restrictions weigh asymmetrically on these markets and erode their appeal as regional financial hubs.
High-growth, developing economies such as China and India are likely to experience annual GDP losses in the range of 4.4% to 8.1% in 2020, led by significant declines in manufacturing output and retail trade. While an earlier resumption in economic activity prevents a protracted slowdown in China, India may experience a deeper contraction in the short term because of weakened internal forces in the event of an extended nationwide lockdown.
Fitch Ratings Lanka has affirmed Citibank N.A. - Colombo Branch’s (CitiSL) National Long-Term Rating at ‘AAA (lka)’. The Outlook is Stable.
The affirmation reflects CitiSL’s status as a branch of Citibank, N.A. (A+/Negative/a), which means it is part of the same legal entity. Fitch expects continued timely support for CitiSL from its US-based head office, if required, subject to any regulatory constraints on remitting funds into Sri Lanka.
The high probability of support also stems from the alignment of CitiSL’s objectives and strong operational integration with Citigroup. The small size of the branch, at less than 1% of Citibank’s total assets, implies that support would not be material to the head office. Citibank, N.A.’s credit profile is superior to Sri Lanka’s rated universe of issuers, including the sovereign (B-/Negative); as a result, CitiSL’s rating is at the highest end of the National Rating scale for Sri Lanka.
The economic fallout from the coronavirus pandemic will pressure CitiSL’s earnings and profitability, with lower fee-based income, muted loan growth and higher credit costs.
In Sri Lanka, there is a need for all businesses to revisit their strategies. Even we study situational analysis in business with all external environmental factors such as PESTLE (Political, Economic, Social, Technological, Legal, and Environmental) the pandemic such as Covid-19 could not come into any equation.
This is high time for any company to think about having a cross-function team to have strategies for the future. There is a need for the organization to learn some success stories around the globe and see available recourses and competencies in the organization. And also the selected employees should be change agents for the organization with creativity .If you see success stories in international scenario there is one unique quality can be seen among change agents. This we called as “sense of belongingness” to their country. It is a duty of top management in business to consider that “unique quality” in selecting the team. This is really a simple thing. We need to search for people who love their country More importantly, we need to have representatives who are really “Sri Lankans” and respect the 30,000 years of rich civilization and willing to learn miracles like the water-cooling system of Sigiriya, built by Sigiriya Kasyapa (which still continues to amaze engineers and intellectuals).
Hence this change agents can learn from success stories, be innovative, and adjust strategies accordingly. The organization may be capable of doing many different things with their resources. But there should be a change agent/s for any company to align the resources of the company and see the opportunities in the market. In this context, the way you incorporate LCI (Learning, Creativity, and Innovation) is paramount important(refer below diagram) You need to be more concerned about collaboration with the flavor of creativity and innovation. This is a testing period for all the businesses in Sri Lanka. You should learn success stories and there is a need to have learning orientation among all in business higher the creativity and innovativeness with customer orientation higher would be a competitive advantage for any business. (The writer is Professor in Management Studies at Open University of Sri Lanka You can reach Professor Abeysekera on nalinabeysekera@gmail.com.)
Niranjan Selvadurai, General Manager and S. Balamurugan Deputy Marketing Manager Diagnostics of Sunshine Healthcare’s Medical Devices team handing over the PCR test kits to Kanchana Jayarathna, Private Secretary to the Minister of Health and Dr. Sunil De Alwis, Additional Secretary at the Ministry of Health.
Committing towards the ongoing national efforts to combat COVID-19, Sunshine Healthcare Lanka Ltd—a fully-owned subsidiary of the diversified conglomerate Sunshine Holdings PLC—donated LabGun Covid-19 PCR (Polymerase chain reaction) test kits to the Ministry of Health by the staff of Sunshine Healthcare. The LabGun COVID-19 new PCR test kits, which are worth Rs. 4.8 million, will further strengthen Sri Lanka’s testing capacity and will be immensely useful in the country’s efforts in dealing with the prevailing situation.
The LabGun COVID-19 PCR kit is manufactured by LabGenomics, a South Korean molecular diagnostics company partnered with Siemens Healthineers, which is represented by Sunshine Healthcare Lanka in Sri Lanka for the distribution of these kits. These PCR kits were used in South Korea largely and helped them to flatten the curve, during their peak period of the COVID-19 pandemic. The key advantage of these PCR kits can be used as a screening and confirmatory assay as separate and can be used independently.
Commenting on this timely donation, Sunshine Healthcare’s Medical Devices Chief Executive Officer T. Sayandhan said, “As the nation’s healthcare front liners work tirelessly to protect every citizen against the COVID-19 outbreak, we understood that the need to strengthen the capacity to test Sri Lankans consistently is significant too. It is in this light that we pledged to provide these LabGun COVID-19 PCR test kits to support the government’s commitment to mitigate this global pandemic through continuous testing. The entire Sunshine Healthcare team is fully committed to supporting this national cause at this time of need.” Siemens Healthineers AG is a leading medical technology company headquartered in Erlangen, Germany, enables healthcare providers worldwide through its regional companies to increase value by empowering them on their journey towards expanding precision medicine, transforming care delivery, improving the patient experience, and digitalizing healthcare.
Sunshine Healthcare Lanka (SHL), established in 1967, is the partner of choice for international healthcare companies seeking to grow their business in Sri Lanka, in the areas of pharmaceuticals, medical devices and consumer health products.
Advocata Institute is hosting a panel discussion with leaders in the banking and financial sector, the fourth in a series of events that center on the economy and Covid-19.
The panelists at this event will be Yvette Fernando (Assistant Governor, Central Bank of Sri Lanka), Manil Jayesinghe (Senior Partner, Ernst & Young), Roshan Abeygoonewardena (Chairman, The Finance Houses Association- Sri Lanka) and Jonathan Alles (Managing Director/ CEO, Hatton National Bank). The panel discussion will be moderated by Murtaza Jafferjee (CEO, JB Securities and Chairperson, Advocata).
The discussion will explore the current challenges faced by the sector and the road to recovery, in the context of the covid-19 pandemic.
The online panel discussion will be hosted on Zoom and live-streamed via Advocata Institute’s Facebook Page and other partner channels on May 1, from 11 am onwards.
Questions should be sent to slido.com and the event Code: #COVIDLK Advocata is an independent policy think tank based in Colombo, Sri Lanka.
Xiaomi Sri Lanka, has pledged Rs. 2 million for the Prime Minister’s Relief Fund to fight against Covid-19 outbreak.
“This is Xiaomi’s contribution to support the nation for the ongoing Covid-19 crisis,” said Country General Manager, Xiaomi Sri Lanka Vidya Sagar.
“Unity shines in times of adversity. We request all our Xiaomi family of Mi Fans, partners and employees to come forward and help out in whatever way possible. Let us also express our heartfelt gratitude to all the heroes who keep us safe.”
Xiaomi Corporation is a Chinese electronics company founded in April 2010 and headquartered in Beijing. Xiaomi makes and invests in smartphones, mobile apps, laptops, bags, earphones, shoes, fitness bands, and many other products. Xiaomi is also the fourth company after Apple, Samsung and Huawei to have self-developed mobile phone chip capabilities. Xiaomi released its first smartphone in August 2011 and rapidly gained market share in China to become the country’s largest smartphone company in 2014. At the start of second quarter of 2018, Xiaomi was the world’s fourth-largest smartphone manufacturer, leading in both the largest market, China, and the second-largest market, India.
Lanka Hospitals, the internationally accredited multiple award-winning healthcare provider made a donation of over 6.7 million rupees to the National COVID-19 Healthcare and Social Security Fund under the guidance of Lanka Hospitals Group Chairman Dr. Bandula Wijesiriwardane. The contribution was generously made by the Chairman, Board of Directors, Consultants and employees of Lanka Hospitals to collectively support the fight against the novel Coronavirus. The fund was established by the government last month to support the healthcare system and all others in the frontlines who are working towards combating COVID-19 in Sri Lanka.
“Sri Lanka along with the rest of the world is currently experiencing one of the most challenging times of our lives due to the global spread of COVID-19. Therefore we believe that it is our responsibility to provide the maximum support to our country during this time. Doctors, nurses and other healthcare workers throughout the country have stepped up to the forefront to combat the virus, and without their unwavering dedication we would not be able to reach normalcy again. Therefore with immense pride and gratitude the staff of Lanka Hospitals has chosen to make its own contribution to the National COVID-19 Healthcare and Social Security Fund,” Lanka Hospitals Acting Group CEO and Director Medical Services, Dr. Wimal Karandagoda stated.
Lanka Hospitals is the first hospital in Sri Lanka to be awarded some of the most prestigious accreditations in the world for its healthcare service standards including the Joint Commission International (JCI) accreditation 6th edition, and the world respected Medical Tourism Certification from the Medical Travel Quality Alliance (MTQUA). Furthermore, Lanka Hospitals Diagnostics (LHD) is the only Sri Lankan laboratory to be accredited by the prestigious laboratory accreditation body, The College of American Pathologists (CAP).
Union Bank continued its commitment to support and empower the Bank’s customers impacted by the Covid-19 pandemic.
The Bank took measures to immediately roll out the financial relief scheme recommended by the Central Bank of Sri Lanka (CBSL) in March 2020, in a bid to help communities to recover from the financial impacts of the medium term.
As an immediate measure, the Bank announced extensions for credit card dues in the month of March/April along with extensions for other personal borrowing such as loans and leases.
The financial relief package which places focus on the Bank’s corporate, SME and retail banking clientele include a three-month debt moratorium for all personal loans of value less than Rs.1 million. The maximum interest rate applicable for credit card transactions up to 50,000/- was reduced to 15% p.a and the minimum payment was reduced to 2% from 4% which was applicable before. Late payment fees have been waived for all credit cards and loans until 30th September 2020.
In addition the Bank tied up with Pickme.lk to offer 20% savings to its credit cardholders on essential items purchased via the app during the month of April.
Self-employed personnel, Foreign currency earners (both individuals & businesses), Small and Medium Enterprises (in the Agriculture, Manufacturing, Services, Construction & Trading sectors) and Corporates in Tourism, direct and indirect export related businesses including apparel, plantation, IT and related logistic services industries and others are eligible for loan repayment moratoriums of capital and interest from Union Bank up to 6 months. Furthermore, with the intent of providing immediate relief to SMEs, small scale traders etc., charges on cheque returns and stop payments have been waived until September 30, 2020 while the validity period for issued cheques below Rs.500,000/- of value has been extended until 15th May.
In line with the CBSL directions, Pawning interest rates have been revised with effect from 27th April 2020 for the benefit of those who wish to avail such services from the Bank.
Further, Union Bank is geared to support Corporate and SME Banking customers who seek working capital loans at low-interest rates to revive their business operations. Commenting on the initiatives, Union Bank Director/ Chief Executive Officer Indrajit Wickramasinghe said, “We are determined to do our part first by complying with all the guidelines issued by the authorities and secondly by contributing to the economic recovery of our customers affected by Covid-19. As an essential services provider during this time of uncertainty, we are doing our best to keep our services up and running while also ensuring that the safety of our staff and customers is given utmost priority. We have made a number of arrangements at our work premises to ensure that stringent levels of hygiene and safety are practiced.”
Union Bank’s corporate website and the 24-hour customer service hotline also remain open for customer queries and assistance.
Huawei, the innovative smartphone manufacturer, recently re-launched the Huawei Support App in a bid to offer a more convenient aftersales service to its valued customers. Huawei Support App is developed to diagnose and resolve smartphone issues, provide online support and remote repair services. This comes across as the most practical, suitable and most affordable solution at hand to safely carry out industry’s best after sales services. Thus, this Huawei Support App is expected to play a major role in providing online support to its users.
This newly introduced app is equipped with a host of features that facilitate convenience to the lives of Huawei device holders by saving time, being cost effective and user friendly. With the Huawei Support App, users are freed from wasting time at service centers and now they can get their smartphone issues resolved remotely through a secure and a convenient online support process.
Huawei Support App is integrated with key functions such as Smart Diagnosis which locates software and hardware issues, self-troubleshooting for common issues such as screen, charging and power consumption, calling and mobile network, system crashes, app errors, camera faults, connectivity, contacts and messages and many more. The app also features a device center which allows the users to manage multiple devices from the same app by logging on to the Huawei account.
It also includes a segment for recommendations which provides details about upcoming events, special offers and service days
‘’Huawei Support App is a one stop solution for all software and hardware related issues. This app is designed with convenience of customers as the main focus and our support staff is always committed to deliver an unmatched service with our online support services. We encourage our valued customers to seek online support and make use of the core facilities of the app,” said Peter Liu, Country Head of Huawei Devices, Sri Lanka.
Another important feature is its ability to locate the nearest Huawei Customer Service Center which allows users to save on repair times and through a preferred method, users can send their devices for repairs and will be returned safely.
Huawei Support App is now available to download for free at Huawei AppGallery with an all new user interface.
A surge in Non-Communicable Diseases (NCDs) may trigger a double-disaster in Sri Lanka in the wake of the Covid-19 pandemic, says Contingency Intelligence & Response Agency (CIRA), a think-tank steering an overarching disaster prevention, mitigation and management mechanism in the SAARC region. While the corona virus pandemic has turned the country’s health system on its head, the chief contributor may just be that patients with underlying illness are reluctant to come to hospitals or are not able to do so due to ripple effects of the pandemic.
Reportedly, over 137,000 people died of NCDs in 2017 and chief among contributors were cardiovascular diseases, cancer, chronic respiratory diseases and diabetes. Even though NCDs do not receive the hype of an unknown corona virus like the Covid-19, NCD mortality rate in Sri Lanka, according to Health Department statistics, is between 20%-30% higher than what is reported from developing countries. Add the numbers of other illnesses to this, the Covid-19 pandemic is precipitating another health disaster and must receive an urgent response from the authorities.
Compounding the issue may be a fear among people of going to hospitals as was previously customary due to the fear-psychosis created by the advent of the Conid-19 virus. Making an already worsening crisis is an interruption of medication schedules from difficulties arising from lockdowns, as well as, sudden financial meltdowns experienced by low-income earners.
Incidents of deaths, according to our analysts, show a disproportionate propensity towards people who are economically marginalized with NCDs including kidney and liver disease prevalent more in rural areas of the country. Contributing factors, however, transcend poverty and include unhealthy dietary habits and heavy consumption of alcohol.
While CIRA will be drawing from statistics and research from the Covid-19 as it studies underlying issues which contribute to catastrophes within disasters, there is an urgent need to address the latest developments leading to a double disaster. The country must take its long-standing health disasters seriously!
Patients and families play a dominant part in arresting the issue while it is easy to expect government intervention at every level, including heightened levels of response when a disaster occurs. Many families are reportedly reluctant to report patients with fever fearing a backlash from the neighborhoods, with Covid-19 suspects stigmatized as societies still try to come to terms with an unknown disease. While examining a more prepared disaster response, the government should seize the opportunity to create impactful awareness influencing people to take their health more seriously and support vulnerable people and neighborhoods deal with the crisis without stigmatization.
Compounding the threat is a probable worsening of already unhealthy lifestyles of a considerable section of society with lifestyles heavily affected by the lockdowns.
The pandemic presents a timely window to address the issue of community and individual health if Sri Lanka is to prevent a health disaster, warns CIRA.
Developing global and national events mute testimony to the all-important need for disaster preparedness by way of an all-encompassing strategy which governments alone cannot do and calls for wider involvement.
Contingency Intelligence & Response Agency (CIRA) is a think-tank and catalyst for an overarching disaster response mechanism in SAARC countries bringing scientific research, international cooperation and private sector resources together in support of the governments to be ‘crisis-ready’.
Headquartered in Sri Lanka, CIRA will develop a base model in Sri Lanka while seeking to bring in regional partners to the task force.
The SAARC Development Fund, University of Colombo and Federation of Chambers of Commerce & Industry are among CIRA’s partners in this exhaustive and challenging mission.
CIRA’s mandate is to develop an overarching disaster prevention, mitigation and management protocol so that governments can respond to evolving and dynamic situations and needs through a structured, responsive and relevant mechanism.
Has this global pandemic causing the world economy to crumble down like a house of cards?
The situation has definitely been aggravated across the world. But it is still possible to look at the condition with an optimistic perspective, to correct and overcome it. In the past, economies have overcome great calamities and economic depressions with resilience and there is no reason why we should not see a repeat performance.
Every economy in the world has its inherent strengths and unique characteristics. It does have its own consumption capacity and the means to contribute to global needs. What is required is the restructuring of every nation’s economy to fulfil as much of its own requirements and then also focus on fulfilling global requirements through exports. The major segments of GDP contributing to a nation’s economy still remain in the segments of services, agrarian produce, manufacturing of goods and natural resources including minerals. Tourism remains to be a mainstay of income for many smaller countries.
After the World War II, USA and certain European countries took the lead in industrialisation and manufacturing activities. In Asia, it was Japan which had aggressively taken on the path of industrialisation. While America followed capitalism, Germany was greatly influenced by Marxism and other European nations grew in a varied manner. The USSR took the Socialist path under Communism. The late 1980s saw the end of the USSR and its socialist economy which could barely sustain itself after the breakup of the Soviet Union. The 1990s saw the growth of the Asian economies with Japan leading followed by China, Korea, Taiwan and India. Strategically located ports became logistic super hubs and surprisingly trade exceeded the national GDP in Singapore, Hong Kong, Dubai and many more countries.
The internet invasion in the early years of the 21st century along with a sudden dip in crude oil price made globalisation the buzzword in the international arena. Efficient transmission of data & information and cheap transportation and became the two pillars of the international highway. Outsourcing became the norm across the world. Nations looked for avenues to outsource production with a view to reduce pollution within their state and also with the objective of getting cheap labour overseas. China with its state sponsored capitalism became the world’s factory and India at the same time became the global IT and automobile hub. Malaysia and Thailand became manufacturing zones for largely used FMCG and products as well as electronic products, while countries like Sri Lanka and Bangladesh became textile and garment hubs.
Nobel-Prize winning economist, Amartya Sen, said that globalisation “has enriched the world scientifically and culturally, and benefited many people economically as well”. International organisations even predicted that the forces of globalisation may help eradicate poverty from the world. Manufacturing facilities which catered to mostly local and some export demands grew in scale rapidly, they did provide employment to many more workers; however the income disparity between the rich and poor remained almost the same even if it did not widen. Capitalism pushed industries to manufacture far more than what they could sell to reduce production cost based on the economies of scale. Factories churned out smoke, chemicals and effluents polluting the environment, land, water bodies and even the oceans. This was more in developing countries where pollution control norms were found to be weak and not implemented strictly. Climate change became a topic of discussion in world forums but hardly any measures were taken to address the core issues. In spite of making and selling products at good margins industries were stressed because of over production and unsold stock piles. The FMCG segment, the automobile industry and the garment industry were good examples demonstrating this phenomenon.
The COVID 19 pandemic has drawn our attention to the present crisis and the impact on global economies. The shutdown in most countries has exposed the avoidable stress on the environment. The environmental pollution has reduced drastically and visible changes are being noticed. The amount of time and money spent on avoidable travel stares at us in the face, after the closure of international and most domestic travel. The disruption of the supply chain has exposed the external dependencies of many nations on even products of basic necessities. Policy makers and industry leaders are now are now looking at the obvious facts and the risks that nations had not foreseen. They will have to look for suppliers back home and promote them, even though their products may be expensive immediately.
Minimum sustainable domestic production and division of overseas out sourced products between multiple locations will be the bottom line of government policy. This will create opportunities within every nation. This re-shoring of manufacturing activities will seem like a kind of de-globalisation. While globalisation will not end it will definitely slow down in terms of volumes. Domestic industries will also demand some extent of protectionism. The sudden drop in valuation of stocks and financial market crisis will also influence government policy with regards to FDI, so as to regulate and avoid financial takeovers by predatory and opportunistic players. The European Union and the Indian government have already clamped down restrictions to block such buyouts. Many more states are likely to follow suit.
Companies will look to shift at least part of their manufacturing facilities centred in China to multiple locations overseas to continue to enjoy the benefits of low costs of production. Countries in the Asian region and the Indian subcontinent stand to gain immensely when this happens. Manufacturing of automobiles, ancillaries, FMCG goods, electronic hardware, ICT hardware and services, renewable energy as well as agricultural produce, processed foods, dairy and fisheries could well be sourced from this region. India, Sri Lanka, Bangladesh, Myanmar, Thailand, Malaysia and in recent times Vietnam have been successful in providing a good industrial climate. They have provided low cost labour, sufficient power and good supply chain and logistics in the past. The vibrant financial markets and efficient banking sector in these countries also offer an incentive important to any industry. But this will not suffice in the present scenario.
In order to attract industries to shift their base, government and industry will have to do more. The efficient handling of the COVID19 crisis will be a key factor that will catch the eye of industry leaders looking and willing to relocate their manufacturing units. While the present day digital economy is driven by artificial intelligence, e-commerce, e-banking & other services, it is also challenged by international hacking and cyber crime. Cyber security, strong cyber laws and IP regulations will be the responsibility of governments towards investors. Financial incentives alone will not bring in FDI at the cost of the recently realised risks.
Economic diplomacy will dominate international relations as this century turns towards sustainable globalisation. Nations will have to overlook their hegemonic ambitions in favour of offering their citizens good economic stability and a better quality of life. Democratic capitalism could do well if it could bring in responsible practises.
India could engage actively with USA the world’s largest democracy and economy and play a vital role in the balance of power. The Asian region could well be the next production and logistics super hub. This new era of reorganisation will bring to the forefront countries that keep investors happy by offering shared prosperity and security.
About the Author
Sumit Bothra is an international business consultant and a scholar pursuing International Relations at the University of Madras, Department of Politics & Public Administration.) He can be contacted on sumitbothra@gmail.com
At the time of writing this article, we have completed 5 weeks of curfew and lockdown in Sri Lanka due to the Covid-19 pandemic. The overall economy has been impacted due to this pandemic with small businesses being hit the most. Initial forecasts indicate that the global economy would contract by at least 3% this year. Analysts also predict that the economic recovery may take around 24 months for certain countries. Interestingly, most countries seem to be allocating between 5-10% of their GDP in order to fight off the pandemic and provide a much needed stimulus to their economies. Sri Lanka unfortunately is not in a position to allocate such amounts due to the limited fiscal space available at the moment. Kantar Sri Lanka, in their recent Consumer Sentiment Report (Covid-19: Barometer Sri Lanka) outlines that consumers are ready to downsize their lifestyles and the focus is apparently more on saving rather than splurging. Around 54% of the respondents have claimed that they are now saving more in comparison to the pre-lockdown time period. Similarly based on the research data, Kantar is further of the opinion that ‘indulgences’ maybe under threat and preferences seem to be shifting towards local, traditional and healthy food and beverages.
Across the globe, the Restaurant Industry, Cafes, Eateries, Pubs and Recreational Clubs are some of the most impacted businesses due to Covid-19. Considering that the horrific Easter Sunday Terror attacks happened just a year ago, the current pandemic situation has come as a double blow to the Restaurant, Food and Beverage Industry in Sri Lanka. Irrespective of whether you are a ‘Casual Dining’, ‘Fine Dining’, ‘Home Baker’ or a ‘Take Away Food Service Provider’, no one has been spared by Covid-19. Most urban and affluent Sri Lankans used to regularly patronize the various Recreational Clubs in the city to relax, unwind, network and entertain their families and guests. These subscriptions based ‘Members Only’ Recreational Clubs are impacted not only at the moment but due to social distancing norms it seems they will continue to suffer for a reasonable time post lockdown as well. It can be predicted that the same scenario will apply to ‘Pubs’ too.
When you look back and reflect on the last 5 week time frame, arguably some Restaurants, Cafes and Eateries have been more nimble, agile and adaptable than others. They have resumed operations (even though limited in offerings) rather quickly through various online delivery models either by themselves or in partnership with ride hailing services like UberEats, PickMe Food and YouCab. Most of the other restaurants have struggled initially but by now have got some operations going. The staffing, supply chain and immobility issues due to the curfew regulations and other challenges have hampered these entities thereby disrupting their usual operations.
Unfortunately some players have still not been able to get their operations going at all. Surprisingly some of them are well established entities who have been in the business for a long period of time.
As per the Colombo City Restaurant Collective (CCRC) the Restaurant Sector is a highly labour intensive industry that directly employs over 30,000 people while indirectly providing employment to many others. Due to the decrease in tourism arrivals and the overall negative economic situation, the CCRC predicts that the adverse impact on the Restaurant Industry may last for at least a period of 12 months. It is reasonable to assume that due to the lack of business, the industry will be faced with cash flow issues leading to most players struggling to pay rents, salaries and other overheads. Few will unfortunately have to close down and that is the brutal reality. In addition to the recently announced Rs. 50 billion economic stimulus package, the Government will also have to see how best they can provide additional support to this sector. We will understand the developments and policies with this regard in the future and until such time the players in the Industry will need to re-evaluate their Business Models and come up with various strategies to survive.
The new regulations and best practices announced by the authorities for the Restaurant Industry for the commencement of operations post lockdown has been exemplified below (only the most relevant to the scope of this article has been outlined here). Whilst it is unclear if these are the final regulations, it can be argued that most of these will be applicable in order to ensure health and safety alongside meeting the necessary social distancing requirements.
Currently Prescribed Guidelines
The other countries have also implemented similar guidelines to the above and it seems to be the norm more than the exception.
Since we now understand the various challenges that the Restaurants, Cafes, Eateries, Pubs and Recreational Clubs are facing both during and post Covid-19, let’s try to explore 3 areas that the industry needs to focus on, in order to minimize the impact to their businesses. There is a need to re-examine, re-strategize and re-calibrate their businesses. Decision makers in the industry need to apply a rational and pragmatic approach. Planning and strategizing is important alongside a strong execution focus. It’s basically now or never. Tough times call for tough measures. Survival is not a choice, sadly it’s the only option.
1. Re-look at your Business Model: Considering that customers may not be comfortable to ‘Dine In’ at Restaurants and Cafes or patronize Recreational Clubs and Pubs in the short term (at least) one needs to examine the validity and relevance of the current Business Model. As a business owner you need to make a decision on whether it is prudent to have a ‘Dine In’ option. An accelerated strategy to move from ‘On Premise’ to ‘Off Premise’ may be the way forward. If the customer foot fall is lower than expected, the business may not be able to cover the basic costs such as rent, utilities and the staff required to serve (as in the case when operating at high capacity). Rather, can you now explore a ‘Take Away’ & ‘Online Delivery’ only model? Will it make sense to have fewer menu options so that the food costs and the supply chain can be managed better? Are there any new menus that you can introduce to meet the common demand patterns (even though it is different to the desired concept)? Can you introduce a lower base salary plus profit share scheme instead of fixed salaries for key staff like Chefs & Restaurant Managers until business picks up to the usual level? Do you deliver the products to customers by yourself or through a reputed ride hailing service? Do you continue to operate the usual hours or will you now focus mainly on the peak hours only? These are some of the areas that the industry players need to think hard with an open mind-set and accordingly come up with the most appropriate strategies to implement.
If you decide to continue with an ‘On Premise- Dine In’ model, then you will have to redesign the space in a manner that minimizes space efficiency issues whilst meeting social distancing guidelines. This may be tougher than one can expect. Innovative and creative thinking is absolutely crucial here. Similarly Recreational Clubs can also look at delivering its most famous ‘bites’ so that members can enjoy the next best alternative to patronizing the Club. It is reasonable to assume that a Hot Butter Cuttlefish, Cheese Toast or a Devilled Meat Dish delivered from your favourite Recreational Club will be an experience that you wouldn’t want to miss. Traditionally most of these Recreational Clubs did not have a food delivery option. Now is the time to think out of the box and explore every possible way to improve the revenue scoreboard. Recreational Clubs can also look at giving special offers to the members that have paid their subscriptions in full for the year 2020. For the members who have not yet paid the subscriptions, they need to explore implementing a flexible payment plan to encourage payments. Every rupee matters today. The key is to adapt quickly by changing your Business Model to deal with the new realities, the changing dynamics of the market and customer lifestyles. Of course heavy emphasis will have to be placed than previously on the safety aspect when implementing your revised Business Model.
2. Partnerships and Collaboration: By partnering and collaborating with other players in the Industry, you can derive a number of benefits such as reduction in costs and managing underutilized (or excess) capacity. Instead of running their own kitchen, a business can outsource it from another player in the industry thereby creating a win-win scenario for both parties. The Hotel Industry in Sri Lanka is severely impacted by the Covid-19 pandemic. All these hotels have kitchen facilities that will have an underutilized capacity at present. Can the Restaurant Industry strike a partnership with the Hotel Industry to use their staff and facilities at a pre-agreed payment and an operational model? The answer is definitely yes because we see this happening already in other countries. The author of this article is of the view that there is a significant opportunity for a Kitchen as a Service (KaaS) model or a ‘Cloud Kitchen’ type of concept. Industry players can obtain the services ‘On Demand’ basis with such a model without having to worry about overheads and fixed costs. The mind-set should be that ‘we are all in this together’ right now. There is no room for ego or myopic thinking. Actively seek out and identify opportunities for partnerships with other local players. Sharing kitchen space, resources, staff and supplies are all possibilities with the right partnership and collaboration. We see this happening already in other countries too. The writer is of the opinion that the industry should move away from looking at each other as competitors but rather look at each other as partners who are navigating ‘stormy seas’ together.
3. The Power of Marketing: The industry will have to focus heavily on the Marketing aspect once the lockdown is relaxed. Digital Marketing and Social Media Marketing will play an integral role more than ever before. It’s all about having the mindshare of your customers. Make sure that your loyal customers are aware that you are ‘open’, understand any changes in your Business Model and are familiar with the various promotions that have been introduced. It is important to exemplify to your customers the various health and safety (including sanitization) measures that have been implemented. If you have a database of your customers, now is a good time to keep them posted about your initiatives, menus and other plans. Continuous engagement is the key. Instead of bombarding them with irrelevant content, focus more on personalization. Reaching out to your loyal customers with personal letters, emails, calls, texts or WhatsApp messages is crucial and an absolute necessity. The Social Media pages such as Facebook and Instagram need to have the right content. It should be relevant and appealing. If you do not have expertise on this area, seek the help of a professional. Recreational Clubs in Sri Lanka has historically been rather weak in their Social Media Marketing. Now the time has come for them to place more emphasis on this aspect. Designing the right promotions will also help one differentiate itself from the competition. Whether it is meal vouchers, loyalty and referral programs, family packs (and bundle offers) or off-peak discounts the various promotional options available are limitless.
Customers will now be looking at ‘value’ and the demand for ‘indulgences’ will reduce at least in the short run. Businesses need to therefore, exemplify the ‘value proposition’ in everything they do. Update your website and give it a new look and feel. Use Search Engine Optimization (SEO) tools to drive traffic to the website. The power of ‘Storytelling’ should not be underestimated as well and this is where Public Relations (PR) can be immensely beneficial to a business. It should be understood that what worked before, may not work or be relevant now. There is no room for complacency or ignorance. It is a survival battle. Every activity and minute spent on the business matters, so make sure you make it count. Therefore, it is evident that the Restaurants, Cafes, Pubs and Eateries in particular need to understand this and come up with the necessary strategies. Once the strategies are in place, the marketing mix and the relevant tools need to be used effectively.
As we already know, the world that we are going to embrace post Covid-19 is a new one.
As exemplified above there a number of decisions that Restaurants, Cafes, Eateries, Pubs & Recreational Clubs will have to make in order to mitigate the challenges associated with the Covid-19 pandemic. However, the author of this article is of the view that the above ideas and strategies will definitely be useful for the industry if implemented with diligence and careful analysis of its strengths, weaknesses and strategic options. Sri Lanka is a resilient nation and together we can weather this storm. The Covid-19 pandemic does not differentiate based on race, religion, age, nationality, gender, political affiliation or lifestyle. The entire world is united in the fight against the pandemic. From a Sri Lankan perspective as well, we need to be united to mitigate the impact of this deadly virus. There is no room to be myopic, selfish or narrow minded. Diversity is our strength and unity will be our recipe for success. There is nothing which is impossible for us as Sri Lankans.
Let’s work together as one nation to fight this pandemic. Let’s also collaborate and support each other so that we can collectively get our companies and industries to overcome this crisis situation and move forward with a renewed purpose, proactive methodology and positive mind-set. We need to support the local Restaurants, Cafes, Eateries, Pubs and Recreational Clubs. They need our support now, more than ever. Let’s ensure that we play our part and do the needful. Sri Lanka together, we can!
Fitch Ratings has affirmed Sri Lanka-based consumer and healthcare company Hemas Holdings PLC’s National Long-Term Rating at ‘AA-(lka)’ with a Stable Outlook.
The affirmation reflects the limited vulnerability of the company’s largely defensive operating cash flows to disruptions from the coronavirus pandemic and the resultant economic downturn. Pharmaceutical trading and manufacturing as well as fast-moving consumer goods (FMCG) in home and personal care, and stationery account for over 80% of the group’s EBIT.
The rating also benefits from the company’s exceptionally strong balance sheet and high rating headroom before the economic downturn, and we estimate steady leverage of around 0.4x-0.5x in the year ended March 2020 (FY20) and FY21 compared with the 3.0x leverage threshold for the current rating.
Hemas also disposed of two of its smaller non- core businesses in FY20, which will improve the group’s profitability starting FY21, even as its exposure to the hotel sector weighs on its financial profile.
The SAARC countries have rolled out a raft of stimulus packages to boost investments, buffer private businesses and bolster growth in response to the COVID-19 pandemic that has upended life and disrupted economic activity in a region inhabited by over 1.8 billion people.
The World Bank recently warned that South Asia faces its worst economic performance in 40 years due to the deadly coronavirus pandemic which has been wreaking havoc worldwide.
India, a $2.9 trillion economy - the biggest in the 8-member SAARC grouping, responded by unveiling an Rs 1.7 lakh crore ($22.6 billion) economic stimulus plan, providing direct cash transfer to poor senior citizens and women and free food grain and cooking gas.
Sri Lanka’s economy, hit by the COVID-19, is struggling to overcome the crisis and on March 31, the Central Bank announced a $250 million refinancing facility for banks, enabling them to expand their lending capacity by Rs 40,000 crores to businesses, offer loan repayment moratoriums and provide working capital at 4 per cent interest.
Sri Lanka is also planning to enter into an agreement with the Reserve Bank of India for a currency swap worth $400 million to boost the foreign reserves and ensure financial stability.
In Pakistan, when Prime Minister Imran Khan announced the lockdown last month, there was little resistance initially from the private sector. But, as it prolonged, unrest slowly started brewing among small businesses and shopkeepers who feared that they may not sustain the prolonged closure.
Bangladesh has announced an US$11.6 billion stimulus package to support the economy, with a primary focus on supporting the manufacturing and service sectors, agriculture and social safety nets. The Bangladesh Garments Manufacturers and Exporters Association has said that orders worth about US$3.2 billion were cancelled or suspended, affecting over 2.3 million workers.
Nepal’s business sector is expected to suffer a loss of around $1.25 billion due to the halting of economic activities during the lockdown, says Umesh Lal Shrestha, Vice President Associate, Federation of Nepalese Chamber of Commerce and Industries. Nepal’s tourism sector is the worst hit by the pandemic.
The Maldives government has announced an emergency 2.5 billion Maldivian rufiyaa ($161.8 million) stimulus package to shore up the local economy against the coronavirus pandemic, a local media report said.
Bhutan’s economy is having its worst year in the recent history with the GDP growth projected to decline by anywhere between 1-2 per cent depending on how long the pandemic lasts, Kuensel newspaper quoted economic affairs minister Loknath Sharma as saying.
Afghanistan is a heavily aid-reliant and import-dependent economy. The Afghan government has allocated about $25 million to deal with the crisis. (economictimes.indiatimes.com)
The Ministry of Ports and Shipping has informed Sri Lanka Ports Authority (SLPA), SAGT and CICT on April 27, 2020 to extend the concessionary period for occupational charges in the Port of Colombo and all commercial ports in Sri Lanka, up to May 7, 2020.
Due to prevailing Covid-19 outbreak in the island, institutions and their staffs related to operating import and export consignments have faced large difficulties. As a result, all terminals and warehouses in Sri Lanka Ports Authority, SAGT and CICT have reached their maximum capacities. This has further created obstacles for the continuity of port operations, and space requirement for positioning of containers and port cargo at terminals and warehouses in the port.
Port operations and services should be continued to fulfill the distribution of essential consumer items, medicine and medical supplies and other necessary consumer products in the island.
Minister of Ports and Shipping Johnston Fernando with special attention into the matter has further re-extended instructions issued earlier from March 16, to 13th April 2020 with regard to ‘occupational charges’. Accordingly, Sri Lanka Ports Authority, SAGT and CICT have been instructed, to offer related concession from April 14, to May 7, 2020 to all consignees.
Accordingly, for the said period, only basic occupational charges will be charged at terminals for all imported local TEUs. Penal charges for the said period are fully waved off.
The terminals of JCT and UCT of Sri Lanka Ports Authority, terminals of the SAGT and CICT will act accordingly.
Major capital market players representing both foreign and local interests said that the economic situation in the country is currently conducive to merger and acquisition investments.
Managing Director of NDB Zephyr Senaka Kakiriwaragodage said that this was a once in a century event and that risks should be taken if one was confident that the underlying asset can pull through the crisis. Kakiriwaragodage was speaking on the PWC webinar series on April 28.
Kakiriwaragodage said that his company usually concentrated on companies seeking capital for growth but given the current context they were looking at any company that had a capital requirement for survival. He predicted that bigger companies could take in smaller companies. He said, “It could happen in a friendly manner or an acquisition manner.”
Head of strategy and business development at CHEC Port City Colombo Thulci Aluwihare said that given the 25-year nature of the Port City project there would be little impact by the crisis on its grand scheme. The project was to have a sales event in Singapore which has been postponed. The company is considering delaying infrastructure investments to be in line with sales and marketing promotion. The Port City is also waiting on elections to be able to pass legislation granting the region as a special economic zone which is currently with the Attorney General’s office.
DEG Investments local representative Geeth Balasuriya said that his company was being approached by companies for capital. The organization will now also consider smaller companies. He said that it is difficult for companies to go to the banks given already high gearing ratios. He said that due to the attractive financial ratios globally, the growth in opportunities due to the crisis, and the stronger macroeconomic fundamentals of peer countries it was likely that foreign investors would look outside Sri Lanka.
Kakiriwaragodage said “banks are in a dilemma. They need to support their customers and they have a fiduciary responsibility to depositors. You can’t lend to anyone who is in trouble.” Panelists felt that debt availability was going to dry up. They felt that the financial services sector would have delayed consolidation plans activated.
The power sector is expected to have a limited impact during the crisis.
Kakiriwaragodage expected companies to take special consideration in managing their cash flow. He speculated that companies would face difficulties in making assumptions on the length of the crisis and as such should be wary of underestimating their cash requirements. He predicted that companies would take measures to save as much cash as they could.
The Commercial Bank of Ceylon has announced it is extending its self-registration facility for Online Banking and for opening ‘Flash’ Digital Accounts till further notice to enable customers to continue to practice safety precautions even after travel restrictions are relaxed by the government.
Supporting its customers to stay safe indoors, the Bank has also teamed up with apps such as Uber and PickMe to provide discounts and waivers on delivery fees for essential goods delivered to their doorsteps. The Bank also provides constant support through its social and digital media channels and integrated communications centres to facilitate financial the wellbeing of customers during this difficult time.
In March this year Commercial Bank made it easier for customers to access its Online Banking portal and to open ‘Flash’ Digital Accounts by permitting self-registration for these facilities, removing the need to visit a branch to get started.
Consequently, customers who wish to use Online Banking can now simply visit the Bank’s website, click on ‘Online Banking,’ click on ‘Self Registration,’ enter their National Identity Card or Account Number and other requested information, enter the code the Bank sends to their registered mobile phone number and then check their email or SMS for a confirmation message from the Bank.
Bank staff will thereafter contact the customer via telephone for a verbal verification of details and activate the facility.
The Bank’s unique Digital Banking Application ‘Flash’ can also now be opened 100% digitally, the Bank said. The Flash app can be downloaded from the Apple App Store or Google Play Store. The customer then enters the requested personal details, enters the eight-digit code sent to his or her phone, uploads the required identification documents and checks and confirms via a message sent on email to proceed.
Sri Lanka’s first fully-fledged Digital Bank Account, Commercial Bank’s Flash Digital Bank Account offers never-before-seen personal financial management tools that encourage, empower and embolden users to better engage with their finances, make wise choices about spending and saving and, in so doing, enrich their own financial wellness.
In addition to basic Online Banking facilities such as balance checks, fund transfers and bill payments via the accountholder’s mobile phone, the app focuses specifically on promoting the financial wellbeing of its users, with features to help users engage with their money and manage funds in an accurate and responsible way.
A Group Payments Management Tool allows for multiple payments to be sent and received simultaneously for the first time in Sri Lanka, while an Investment Management Tool allows for creation of fixed deposits and to apply for insurance cover. Additionally, “Flash” is now enabled with QR based payments, enabling users to pay for their purchases by simply scanning the QR code displayed by the merchant.
As Sri Lankans comply with ‘work from home’ directive, challenges such as information security are coming to the forefront. Unlike in offices, where all devices are protected with special information security solutions, computers at home remain vulnerable to malicious attacks as home wifi networks are usually unprotected.
However, there is a certain section of people in the government, finance, healthcare, education and manufacturing sectors today who are working with great freedom from their homes because they all have one factor in common - Samsung Knox. Since it was first introduced in 2013, Knox has secured over 1 billion Samsung devices and is being used to manage over 50 million devices daily.
Trusted by security experts and government agencies, Knox has helped over 15,000 businesses around the world achieve their goals. Samsung Knox is especially important when you work in a sector that requires the strictest security protocols.
Available on most Samsung Android phones, tablets, and Tizen wearables, Knox is a technology that keeps business and personal data separate on supported Samsung Android devices. People working from home share confidential data with their colleagues on a daily basis and require a secure solution which makes this stress-free.
Office IT teams can deploy Knox to address business needs throughout the entire device lifecycle by remotely configuring a large number of devices and tailoring them to specific needs. This is an ideal facility at a time like the present, where IT teams cannot personally access each employee’s device.
Also, each employee may access company information on different mobile devices – such as laptop, smartphone and so on, and Knox can be used to keep all these devices secure. Moreover, the My Knox portal allows users to access their data from any web browser, as well as locate a lost device, change the Knox password, or even perform a secure wipe if their device winds up lost or stolen.
Considering that customers place their trust in companies to hold their personal credit and health information securely, it is for companies to reciprocate this trust by adopting strong information security solutions.
Sri Lanka is facing simultaneous domestic and external shocks amid the global coronavirus outbreak says Moody’s Investors Services.
Capital outflows, marked local currency depreciation, wider risk premia and a further decline in real GDP growth will raise Sri Lanka’s debt burden, liquidity constraints and the cost of external debt servicing
This comes at a time when Sri Lanka’s credit profile is highly vulnerable given low reserve coverage of large forthcoming external debt service payments and very weak debt affordability.
Acute tightening in global financing conditions compounds weaker near-term growth, fragile fiscal and external positions Higher financing costs, wider deficits and a steeper trajectory for Sri Lanka’s debt burden will weaken the government’s already fragile fiscal position. The government has sought multilateral and bilateral external financing which will help to cover imminent repayments.
However, the government’s external debt service payments amount to around $4 billion annually over 2020-25, on top of wider budget deficits, which will be partially funded externally.
“We expect that the government will increasingly tap domestic financing sources; however, refinancing external debt domestically would further weaken the rupee and already thin foreign exchange reserve adequacy.”
“We expect the fiscal deficit to increase to over 8% of GDP over the coming years, on weaker government revenue and greater spending. Given wider fiscal deficits, we expect Sri Lanka’s debt burden to rise to nearly 100% of GDP, weakening Sri Lanka’s already fragile fiscal position.”
Limited policy flexibility and effectiveness accentuate risks, while dimming prospects for addressing macroeconomic imbalances amid the currently turbulent environment, we expect that Sri Lanka will face difficulties in managing the country’s twin deficits. “An elevated debt burden and rigid budget structure constrain fiscal policy space. Meanwhile, a trade-off between anchoring inflation expectations and supporting growth, and a potential rise in borrowing costs, will constrain monetary policy effectiveness. The lack of an effective and credible policy response to arrest a more severe and prolonged deterioration in credit metrics would further dim prospects for reforms that would meaningfully strengthen Sri Lanka’s fiscal and external positions. The delay in general elections could add to this challenge.”
Acute tightening in global financing conditions compounds weaker near-term growth, fragile fiscal and external positions Higher financing costs, wider deficits and a steeper trajectory for Sri Lanka’s debt burden will weaken the government’s already fragile fiscal position.
Since the outset of the global coronavirus outbreak and weaker global economic outlook, large capital outflows and increased pressure on the exchange rate have tightened financial conditions. The Sri Lankan rupee has depreciated by around 6% against the dollar since the beginning of March 2020. To Page 10
The ongoing coronavirus pandemic has resulted in grave implications for the nation’s population resulting in not only a health crisis but also a threat to food security in the long term.
To overcome future adverse effects of these threats, there is a vital need to create more synergies in food technology, agriculture and biotechnology, prioritizing and adapting innovation as main drivers of productivity and sustainability.
SLIIT’s BSc (Hons) in Biotechnology degree positions students at the forefront of life sciences. Especially in today’s challenging context it is imperative that students understand modern biotech practices and their application in farming.
While biotechnology is recognised as the fastest growing science-based industry in the world, it is also regarded as an engine of growth for the global economy where new technologies could help improve agricultural productivity.
For students who thirst for this new knowledge, the BSc (Hons) in Biotechnology degree offered through the Faculty of Humanities and Sciences at SLIIT nurtures professionals ensuring they focus on research and education on the nation’s most important issues.
Students currently engaged in the SLIIT BSc (Hons) in Biotechnology degree programme understand the importance of innovation in biotechnology in contributing towards an invisible green revolution. Students’ comprehend the benefits farmers, producers and consumers reap through biotechnology techniques such as genetic engineering in agriculture. Additionally, by grasping the importance of promoting plant and animal biotechnology students are exposed to knowledge and application of biotechnological processes with applicative value in pharmaceutical and food industry, in agriculture and in ecology.
The four-year programme helps to bridge the gap between industry and academia. Job opportunities are available in veterinary Industry, Pharmaceutical Industry, Biomedical Engineering, Agricultural Industry, the area of product manufacturing & production, Nutritional Biotechnology, Bioinformatics, forensic investigations, Marine Biotechnology and even the Bioterrorism.
“Our goal is to ignite students’ interest in life sciences and career possibilities. We believe that the current millennium is the age of biological sciences. Our students have access to the conceptual, experimental and mathematical tools to understand the complexity of inputs that go into the study of life sciences. It is also believed that biotechnology as a leading scientific field of study offers immense potential to leapfrog the country’s agriculture, industry, health, and environment and solve its problems.” stated Prof. Sriyani Peiris, Head, School of Natural Sciences, Faculty of Humanities & Sciences, SLIIT.
Transforming adversity and despair into positivity, the National Carrier SriLankan Airlines has transformed the lack of passenger revenue since the closure of BIA into a revenue generating exercise through the operation of Cargo Charter Flights connecting Sri Lanka to other countries.
With the closure of the Bandaranaike International Airport on March, 2020, we have done over 50 Charter Fights to date, SriLankan Airlines Head of Cargo, Chamara Ranasinghe told ‘Daily News Finance’.
Among the operations that the National Carrier had completed were the transport of raw materials for the Sri Lankan apparel industry which was in an absolute crisis. Then it was the export of perishables such as Sri Lankan vegetables and fruits to the Gulf, then the critical medical supplies from China to the Gulf and then China to South Africa (Johannesburg).
What is more, the National Carrier will also be air lifting medical supplies from Shanghai to London from May 1 with many more European destinations to be added in the future as well, Ranasinghe said.
It all happened with the breakdown of COVID 19 virus and later with the closure of the Bandaranaike International Airport being subsequently closed, the Sri Lankan apparel sector was apparently critically hit and there were frantic appeals from the export community to SriLankan to intervene to source in the raw materials for the industry.
“We commenced flights to Shanghai’s Pudong Airport and Guangzhou (Canton) where we brought in the much needed raw materials mainly for the apparel industry and other vital industries as well,” he said.
Some of the other items which were also imported from China were face masks ad PPEs (Personal Protective Equipment) and Test Kits for Covid 19,” he said, adding that China Eastern Airlines also participated in the effort.
He also said that the next step that the national carrier was involved in was the export of perishable such as fruits and vegetables to Riyadh and Jeddah in Saudi Arabia, Dubai, Pakistan, Singapore and Maldives. He said that there was an exception on Monday where there was a SriLankan Cargo Charter flight transporting sea food to Hong Kong and in the return flight, brought to Sri Lanka, a load of accessories for the apparel industry.
He also stressed that the national carrier was looking forward to taking the cargo business to the next level. He also thanked all the Divisions of the Airline which all assisted in the operation such as Flight Operations, Engineering, Network Planning, Finance and the Senior Management.
Secretary General/ Chief Executive Officer Shiham Marikar of the National Chamber of Exporters (NCE) the only Private Sector Chamber which exclusively serves Sri Lankan Exporters met Dinesh Gunawardena, Minister of Skills Development, and Employment & Labour Relations recently at the Minister’s office to discuss regarding the issues faced by the exporter community related to their employment arising out of the COVID 19 Pandemic.
It was brought to the notice of the Hon. Minister that prevailing labour laws in Sri Lanka are heavily in favour of employees and prevents flexibility with regards to employment of labour in crisis situations. During the discussion the need of revising some laws and regulations to overcome the current situation was emphasized.
The SG/CEO Marikar informed that the Exporters makes a vital contribution to the national economy, by earning valuable foreign exchange and providing employment. They are now faced with an unprecedented issue due to the cancellation of orders by buyers even for goods that have been made ready for shipment in some instances. Furthermore, some buyers are requesting discounts for goods already shipped whilst some others even refuse to pay and accept shipments that have arrived at their destinations.
Under these circumstances, in order to sustain their labour force, the exporters seek government’s assistance with regard to the payment of even a basic minimum wage for a period of 3 months.
Representing the Exporters of the Country, as the “Voice of the Exporter”, NCE submitted the following proposals to the Hon Minister seeking government assistance under these circumstances, in order to sustain their labour force.
1.Due to very low order values, some exporters may only require a part of the labour force in production of particular order. In such situations to permit the exporter to use only the required number and pay wages on a piece rate or terms agreed with the employees.
2.Due to very serious cash flow problems, it is recommended the suspension of payment of EPF by both employers and employees for a period of 6 months.
3.At times of servicing an order with reduced number of labour, will necessitate to work extended hours, in addition to the normal shift. In such situations it should be permitted to continue within reasonable hours of work without engagement of the next shift of employees to be cost effective.
4.In order to catchup on lost time and to stay ahead of deliveries during these challenging times it may require working on Holidays and Sundays excluding religious holidays such as Poya days. This to be permitted with only payment of required dues and without giving any lieu -leave.
5.Exporters should be encouraged with legislation to operate productivity base incentive schemes at their places of work to have better outputs and increase employee take-home wages.
6.If subcontracted production is required the exporter should not be held accountable for any labour issues at the subcontractors’ place of work.
Further it was emphasized that the Entrepreneurs and Business Leaders in the Export Sector are fully aware of the challenges and difficulties faced by the Government on many fronts due to the COVID 19 Crisis and their good intentions in submitting the above proposals are to help the Government ensuring their own survival, to achieve quick economic revival of the Country. This no doubt will be of paramount importance to the Government to avoid a worst crisis economically.
It was stressed that the Business Leaders of the Export Enterprises have with difficulty maintained their workers during the month of March. However many of them, including some large Enterprises are confronted with the need to lay off workers from the end of April, as there are no revenue streams for their sustenance.
If this happens, given the stringent Labour Regulations of the country, possible actions of the Labour Unions, and protests by the workers themselves, could lead to a catastrophic outcome which will be a severe setback to the country.
In order to avoid such a situation, the NCE pleads with the government, to move the relevant state authorities, to initiate immediate action to resolve the prevailing Labour issues.
This should be a priority as we are only a few days away from the end of April, with no meaningful effort in sight to resolve these vital issues, which involve the livelihoods of many.
As part of supporting the nation’s fight against COVID-19, Mobitel, Sri Lanka’s National Mobile Service Provider introduced the latest Body Cameras to Sri Lanka Police at an event held at the Police Park Headquarters recently. The landmark event which took place under the patronage of the Senior Deputy Inspector General (DIG) of Sri Lanka Police, Deshabandu Tennakoon had the presence of officials representing both the Police and Mobitel (PVT) Ltd.
Further, Mobitel also made a financial contribution to support the ongoing efforts of the Police in curtailing the spread of COVID-19 along with food packs meant to be distributed among Police personnel who are managing checkpoints for hours to safeguard the people of Sri Lanka.
Mobitel believes that Sri Lanka Police need to be appreciated for their outstanding efforts and for tirelessly working around the clock to keep people safe. The contribution showcases Mobitel’s unwavering commitment in times of national crisis to partner with the Tri-Forces and the Health Sector while simultaneously helping Sri Lankans avail of its diverse digital healthcare and superior mobile experience during this challenging time.
Mobitel is sharing the government’s responsibility in facilitating the safety of citizens at this critical time through a variety of other digital measures. As the caring network provider, Mobitel introduced numerous packages ranging from special Pre-Paid plans to Bonus Data add-ons, Free Health Advisory services, Digital Payment solutions, Data extensions and many more to help its customers to carry out their day to day activities without any hassle.
Furthermore, both local and international organizations such as the World Health Organization (WHO), UNICEF, and Sri Lanka Health Promotion Bureau are leveraging on Mobitel’s superior reach to communicate vital messages about COVID-19 to raise awareness across Sri Lanka.
In a time of such a crisis faced by the nation, Mobitel will continue to remain as a pillar of strength and support not only its customers but the country as a whole.
To ensure that Sri Lankans across the country stay connected during these unprecedented times and to further assist customers in areas under continuous curfew, who are unable to pay and use their mobile connection during the curfew period, Dialog Axiata PLC, Sri Lanka’s premier connectivity provider, continues to provide a special 7-day pack comprising 1 GB Anytime Data, 250 D2D SMS and 250 D2D Voice Minutes for all its mobile customers, additional to the range of comprehensive relief measures already provided in the form of e-Connect, e-Learn, e-Health, e-Tainment, e-Care, and e-Work solutions, to help customers stay safe and connected.
Reiterating its pledge of providing nationwide connectivity, which is now imperative more than ever before, Dialog has extended this service offering to all its mobile customers in areas under continuous curfew, completely free of charge, and regardless of the customer’s balance or bill. The offer can be obtained every 7 days throughout the curfew period, simply by dialling #006#.
This special FREE offer complements Dialog’s comprehensive suite of Covid-19 related support offers, to support worry free and un-interrupted working, studying, and entertainment at home. Offers include complete free access to school and university services, Nenasa and Guru as dedicated learning services, all Dialog TV channels free of charge, ViU Movies and Live TV app completely free of charge, and extended credit limit for postpaid customers. The full suite of COVID-19 related support can be obtained through www.dialog.lk/home (for consumers) and business.dialog.lk/products-services/wfh/ (for businesses).
Additionally, Dialog supports the Government mandated social distancing measures and highly encourages customers to use its digital and online channels for reloads, bill payments and all other transactions – through the MyDialog app or dialog.lk. As a special incentive, customers obtain double anytime data for all mobile prepaid data packs and postpaid data extensions purchased through any online channel.
As more people stay at home and the prevailing situation turning online conveniences into daily necessities, Dialog has announced that its networks are experiencing an unusually high data traffic demand but are all within its capacity. While users may experience slower speeds than usual especially in morning and evening peak times during this time of increased usage, Dialog has assured that it is continually optimising its network and are well prepared to ensure its customers receive reliable connectivity. For best experience at home, Dialog encourages to use its Home Broadband router which is optimized for work, study and entertainment at home. As a special incentive, Dialog offers double anytime data for all data extensions, and a special offer to welcome all new customers with 3 months double data.
During the year 2019, Sri Lanka’s dismal performance continued in terms of real economic growth, although macroeconomic stabilisation measures helped correct the external sector imbalances to some extent, while inflation pressures remained muted on average.
The Easter Sunday attacks had a severe impact on the tourism sector, and their adverse spillover effects were felt across the economy, worsening the sluggish growth of the economy and further dampening business confidence. Policy measures aimed at reducing pressures on the balance of payments (BOP) and the exchange rate continued in 2019, which together with steps taken to revive the economy, contributed to notable slippages in the fiscal sector.
Subdued demand conditions allowed the continuation of low inflation during the year, although extreme weather conditions and resultant disruptions to domestic food supplies caused some volatility in consumer prices. Growth of credit to the private sector decelerated sharply, driven by subdued economic activity and weak business confidence, affecting the performance of the financial sector.
As domestic economic activity started to show early responses to the policy measures taken to revive the economy and improving business sentiments at the beginning of the year 2020, the outbreak of the COVID-19 pandemic, the containment measures adopted by all countries including Sri Lanka, and the resultant projected contraction in the global economy, triggered further uncertainties regarding the country’s economic performance in 2020.
In the near term, the economy is likely to be impacted severely in terms of its growth, fiscal, external, and financial sector performance, while causing hardships to all stakeholders of the economy.
The Sri Lankan economy recorded a subdued growth of 2.3 per cent in 2019, compared to the growth of 3.3 per cent in 2018, as per the provisional estimates of GDP of the Department of Census and Statistics (DCS). All major sectors of the economy recorded positive, but modest growth rates.
Reflecting subdued economic activity, the unemployment rate increased to 4.8 per cent in 2019 from 4.4 per cent in 2018. Male and female unemployment rates rose to 3.3 per cent and 7.4 per cent, respectively, during 2019, from 3.0 per cent and 7.1 per cent, respectively, in the previous year.
Despite transient supply side disturbances, both headline and core inflation moved broadly in the desired range of 4-6 per cent during 2019.
Policies to curtail import expenditure resulted in a notable improvement in the trade and current account balances. Gross official reserves improved by end 2019.
Central government debt as a percentage of GDP rose to 86.8 per cent by end 2019 from 83.7 per cent at end 2018, reflecting the impact of higher net borrowings to finance the budget deficit and the relatively modest growth in nominal GDP in 2019.
Despite the temporary setback posed by the pandemic, appropriate growth supportive reforms to address longstanding structural issues and enhance domestic production, improve export orientation, attract foreign direct investment (FDI), facilitate innovation, improve factor productivity and efficiency, and improve policy buffers, if implemented without delay, would enable Sri Lanka to realise the desired outcome of achieving sustained and equitable economic growth and becoming a prosperous nation in the period ahead.
Performance of the financial sector moderated in terms of assets base, credit quality and profitability of financial institutions due to the challenging business environment created by subdued economic growth, policy uncertainty, and the deterioration of investor sentiments stemming from the Easter Sunday attacks.
The banking sector, which dominates the financial sector, displayed a moderate expansion during the year, compared to the previous year, reflecting the impact of the low demand for credit and tightened credit screening in an environment of deteriorating credit quality.
The performance of Licensed Finance Companies and Specialised Leasing Companies deteriorated, owing to unfavorable market conditions and sector weaknesses.
Unemployment rises
Reflecting subdued economic activity, the unemployment rate increased to 4.8% in 2019 from 4.4% in 2018.
Male and female unemployment rates rose to 3.3 per cent and 7.4 per cent, respectively, during 2019, from 3.0 per cent and 7.1 per cent, respectively, in the previous year.
