Dilmah Founder Merrill J. Fernando called on the tea industry to increase domestic value addition to increase the export revenues of the sector.
He said that Sri Lankan targets in export value are ridiculous given the limitation of exports to resource extraction level processes. Fernando was among other CEO panelists on a webinar speaking to the Chartered Accountants of Sri Lanka on 24 April.
Fernando said that he had managed to take the low levels of value Ceylon Tea through branding and marketing. He called on the government to change appointment policies towards the best minds in each particular industry. Fernando blamed multinational corporations for the exploitation of local resources but said that it was understandable given the shareholder pressures on management.
He called on domestic society to band together to defend Sri Lankan value addition.
Chairperson Academy of Design Linda Speldewinde said it was an opportune time to champion Sri Lankan designs and innovation as a necessary response to the crisis. She said “our vision is more relevant than ever. We go to the villages.” Speldenwinde said that with a new age of conscientious and globally aware consumerism there was scope for increased local value addition from various cultures.
HNB Managing Director Jonathan Alles said that his industry was already hit with banking moratoriums from the Easter Attacks and was facing difficulties. He said he could not remember the last time that repayments were happening.
Alles said that the profitability figures for the previous periods were concerning as there were a longer mismatch between interest receipts and cashflows. He said that his bank was wary of wilful delay of payment and default which he felt would increase as companies choose to stockpile cash.
Panelists said that it was an opportune time for consolidation and mergers and acquisitions. The banking sector is expected to have consolidations given the strength required to weather the crisis. Deputy Chairman JKH Gihan Cooray said that the Cinnamon Life construction was on halt pending a go-ahead from the health authorities. The organization has long term financing and is in the position to infuse equity if need be. Managing Director Jetwing Shiromal Cooray said that her organisation aimed to keep as many people employed as possible but that this required some assistance from the government.
Panelists said that there was a call for development banking and the courting of long term investors into the country. Alles called on for the development of venture capital. Alles said it was difficult for the banks to fund long term projects that companies require given the short term instruments that make up the deposit market.
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