Business Archives

October 16, 2023

The Sri Lanka Business Council of Japan (SLBCJ) held its 20th Anniversary on the 9th of October, 2023 at Meiji Kinenkan in Tokyo, Japan. It was attended by His Excellency Rodney Perera, Ambassador of Sri Lanka to Japan, State Minister of Investment Promotion Hon. Dilum Amunugama, Cabinet Minister of Labor and Foreign Employment Hon. Manusha Nanayakkara, Member of Parliament in Japan Hon. Yamaguchi Susumu, Mayor of Ayase City Hon. Koshio Masayoshi, Iwase Kiichiro from the Ministry of Foreign Affairs, members of several associations in Japan and other VIP guests. His Excellency Ranil Wickramaighe, President of Sri Lanka, who had planned to attend the event, had sent a video message conveying his congratulations and his regrets for being unable to be present. The highlight of the 20th Anniversary celebration was the launch of the Global Federation of Sri Lankan Business Councils (GFSLBC), a project spearheaded by International Director of SLBCJ Sajeev Rajaputhra, President of SLBCJ Jagath Ramanayake, and Treasurer Jitendra Samarawickrama. The aim of the Global Federation is to unite all Sri Lankan Busienss Councils worldwide under one umbrella organization, linking and strengthening global Sri Lankan Busienss people in their businesses and supporting Sri Lanka during its economic recovery.

Many members of international business councils had flown in to attend the workshop earlier that morning where Sajeev Rajaputhra (Country Representative to Japan of Ministry of Investment Promotion and International Director of SLBCJ) was elected the first Secretary-General of the Global Federation, followed by Kula Sellathurai (President of the Sri Lanka Canada Business Convention) as Deputy-Secretary-General, Ravi Varma (Vice President of the Sri Lanka Busienss Council of Dubai & Northern Emirates) as Under-Secretary, Sanje Sedara (President of the Sri Lanka America Chamber of Commerce) as Deputy-Under-Secretary, Naveen Chandrasekara (Vice President Chiba of SLBCJ) as Treasurer, and Jitendra Samarawickrama (Treasurer of SLBCJ) as Deputy-Treasurer. Jagath Ramanayake was given a post of Honorary Advisor of the Global Federation.

October 5, 2023

In the move towards sustainable organisations the role of the CFO is evolving beyond finance to include sustainability and social aspects of their operations

New research by ACCA (the Association of Chartered Certified Accountants) and BDO, the international network of public accounting, tax and advisory firms, has revealed how the role of the CFO is growing to include driving business decisions and reporting on the non-financial areas of their operations.

Over 100 CFOs and business leaders from around the world took part in roundtables and in-depth interviews to contribute their insight into how the traditional role of the CFO is changing, resulting in the report ‘Chief value officer – the important evolution of the CFO’.

To be successful and sustainable, businesses and other organisations increasingly need to combine economic, environmental and social equity. Those that don’t, face risks and their value can diminish – there is a very strong link between value creation and strategy. Using the breadth of drivers (financial, manufactured, intellectual, human, social & relationship and nature) to generate benefit for a wide range of stakeholders creates value. With a focus for many organisations on purpose and value, contributors were asked to consider whether there is a trend to asserting the need for a new role of chief value officer and whether this a role that the CFO is already fulfilling.

The report yields three significant findings. Firstly, the concept of value holds paramount importance in organizational performance management, serving as a pivotal factor in their journey towards long-term sustainability. Secondly, Chief Financial Officers (CFOs) are progressively embracing a value-centric methodology in their operations, signifying a transition towards encompassing the role of Chief Value Officer within their traditionally financially-oriented responsibilities. Lastly, the trajectory to becoming a CFO demands an expanding array of experiences, necessitating a blend of structured and informal learning initiatives. Professional bodies and practices must actively engage with this evolving development path to effectively cater to aspiring CFOs.

Helen Brand, ACCA Chief Executive, said: ‘We already know that CFOs are increasingly acting as strategic leaders and advisers in their organisations. The CFO role is one that has moved significantly from the traditional view, while retaining the core responsibilities. Now there’s a real opportunity for them to satisfy the value agenda and evolve the role for the next generation of CFOs.’

Ashane Jayasekera, Deputy Managing Partner, Head of Forensics, Risk & IT Security, BDO Partners Sri Lanka, added CFO’s play a very important role as “Co- Pilots” in an organsiation, and they already interact with the key players involved in ESG planning and implementation. Given the importance of the ESG Agenda, CEO’s are expecting their CFO’s to step up and play their role in ESG adoption and reporting”. CFO’s are in an ideal position to provide the necessary information to obtain the funding for ESG investments”

The emerging generation of CFOs in Sri Lanka must take the lead in cultivating a comprehensive outlook on business performance and purpose. As our nation progresses towards nurturing sustainable organizations, the role of the CFO should be poised for a transformative evolution that demands a deep embrace of the broader facets of sustainability and social impact, that requires to be seamlessly integrated into their operational strategies, noted ACCA Head of South Asia, Ms,Nilusha Ranasinghe.

October 4, 2023

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Collaborative Efforts Aim to Future-Proof Environment, Society, and Economy in Asia-Pacific
Sri Lanka’s Bold Climate Plan Sets a New Standard for Green Investment in the Region

The second session of the United Nations Science-Policy-Business Forum on the Environment for the Asia-Pacific Region took place on October 3rd at the Shangri La, Colombo. The event commenced with an opening address by the Hon Minister of Environment, Naseer Ahamed. The focal point of the discussion centred around advancing Environmental Sustainability in the Asia-Pacific Region, underscoring the imperative of future-proofing economics, society, and the environment.

Minister Ahamed made a significant announcement during his address, stating, “Sri Lanka’s President Ranil Wickremasinghe has unveiled the Climate Prosperity Plan at COP 27, with a strong focus on renewable energy generation to propel the country towards a green economy. This groundbreaking climate investment plan is the first of its kind in Sri Lanka and charts a course to attract foreign investment, fostering economic growth, job creation, climate adaptation, and a reduction in greenhouse gas emissions. Under this roadmap, there is a total resource mobilization opportunity of USD 26.5 billion by 2030.” Minister Ahamed called upon businesses and individuals alike to collaborate towards achieving this milestone.

He highlighted that the overarching objectives encompass addressing climate change, adhering to the Paris Agreement, engaging in UNFCCC negotiations, safeguarding the future of nature and biodiversity, and fortifying disaster risk reduction under the Sendai Framework, all within the context of sustainability and the Sustainable Development Goals.

Minister Ahamed emphasized, “Today, we confront escalating climate shocks that impact the livelihoods, food security, and health of millions of people. Concurrently, the Asia-Pacific region accounts for an increasing share of annual global greenhouse gas emissions, which have risen from 35% in 2010 to 39% in 2019. On a per-capita basis, the Asia-Pacific region emits approximately 6 metric tons of CO2 equivalent annually.”

He stressed the pressing need for an expeditious acceleration in decarbonization efforts within the region to align with the objectives of the 2015 Paris Agreement, contingent upon the region’s ability to shift from carbon-intensive growth to low-carbon development.

Throughout the session, it was evident that countries across the Asia-Pacific region have committed to Nationally Determined Contributions (NDCs), with some nations updating their initial NDCs. Minister Ahamed concluded by highlighting Sri Lanka’s commitment as a developing nation to sustainable economic growth, with a vision for a greener future as evidenced by ambitious policies like the Net Zero 2050 Road Map and the National Environment Policy.

August 4, 2023

BRAC Business School of BRAC University organized the 1st International Case Conference on Business and Management (ICCBM) 2023 on 27th July 2023 in Dhaka. Espousing the theme “Enterprise, Practice, and Leadership in Emerging Economies”, this inaugural conference was dedicated to the memory of Sir Fazle Hasan Abed, the founder of BRAC University.

Mr. Mohibul Hasan Chowdhury MP, the Honorable Deputy Minister, Ministry of Education, inaugurated ICCBM 2023 as the Chief Guest. Ms. Tamara Hasan Abed, Chairperson, Board of Trustees, BRAC University and Professor Mahboob Rahman, Treasurer, BRAC University, were also present in the opening ceremony. Dr. Syed Ferhat Anwar, Professor, Institute of Business Administration, University of Dhaka presented the keynote speech in this conference. Dr Mohammad Mujibul Haque, Acting Dean, BRAC Business School presented the opening remarks in the inauguration event.

Mr. Md. Atiqul Islam, the Honorable Mayor of Dhaka North City Corporation (DNCC), delivered his speech through a video message as the Chief Guest at the closing ceremony, while Professor Imran Rahman, Vice-Chancellor, University of Liberal Arts, Mominul Islam, Managing Director and CEO, IPDC Finance Limited, Anika Mafiz, Head of Investment Strategy and Organizational Risk Management, BRAC EPL Stock Brokerage, Dr. Salehuddin Ahmed, Former Governor, Bangladesh Bank and Professor, BRAC Business School were also present.

The ICCBM 2023 aimed to showcase local and international teaching case studies on business and management. These cases are designed as a teaching content to empower graduates and professionals in understanding and navigating local business contexts. Esteemed academics, industry experts, international publishers, and private sector leaders joined the conference to cultivate an environment of learning and collaboration.

After a rigorous review process, 58 case studies, mostly based on real-life local business, were selected for the conference. Among all the submissions, there are two exemplary case studies. One case study highlighted some of the key decisive moments in the career of Sir Fazle Hasan Abed, the founder of BRAC and BRAC University and the other was on DNCC Mayor Atiqul Islam’s leadership role in transforming infrastructure and services.

Professor Syed Mahfuzul Aziz, Pro Vice-Chancellor and Acting Vice-Chancellor, BRAC University sent a video message in the opening ceremony. “It gives me immense satisfaction that we are able to dedicate this inaugural conference to the memory of the founder of BRAC University Sir Fazle Hasan Abed. He firmly believed that edutaction is one of the most important tools to bring about enduring change and uplifment in peoples’ lives,” he said.

Ms. Tamara Hasan Abed, Chairperson, Board of Trustees, BRAC University in her speech mentioned the conference as an effective move to enhance industry-academia collaboration. She also mentioned that the engagement of industry bodies with this conference is an impressive one.

Mr. Mohibul Hasan Chowdhury MP, the Honorable Deputy Education Minister said that the initiative of case study based learning by BRAC University is commendable, specially in the context of business school, as business leaders are supposed to be the problem solvers. He mentioned that case studies is an excellent way to encourage teachers and students towards research. In his speech he also emphasized on the importance of research in higher education.

In the closing ceremony, Mr. Md. Atiqul Islam, the Honorable Mayor of Dhaka North City Corporation said that Transforming infrastructure and services are equally important as preserving climate and environment. He referred to the business graduates as the future leaders and urged them to deal difficult situations as challenges, not as obstacles.

The event was sponsored by BRAC EPL Stock Brokerage and Berger Paints Bangladesh Limited, and co-sponsored by IPDC Finance Limited, BRAC EPL Investment and Structural Engineers Limited (SEL). The event was partnered and supported by Ispahani Ltd., Savoy Ice Cream Factory Limited., Perfetti Van Melle Bangladesh Pvt. Limited, Nestle Bangladesh Limited and BRAC University Business Club (BIZ BEE). The media partners of the event were Somoy TV, Bdnews24.com and The Business Standard.

March 14, 2023

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The Colombo Stock Exchange (CSE) Mobile App was adjudged as a winner, in the category of Business and Commerce, by the e-Swabhimani Grand Jury, at the e-Swabhimani Awards 2021 which was held recently.

The e-Swabhimani is an initiative of the Information Communication Technology Agency (ICTA) of Sri Lanka, aimed at recognizing excellence in digital application creation. Launched in year 2009, e-Swabhimani 2021 is the 11^th consecutive year of celebration which local digital talents will be recognized and promoted in national and international platforms.

CSE Mobile App is a joint effort of Colombo Stock Exchange (CSE) and Securities and Exchange Commission of Sri Lanka (SEC) and commenced with the objective of identifying measures and mechanisms, required for the Colombo Stock Market to conduct its core activities digitally.

The SEC / CSE joint committee, consisting the representatives of both the CSE and SEC, launched a transformative digital offering through the CSE Mobile App, an end-to-end digital onboarding and online account opening feature.

As for the third phase of Mobile App developments, which took place last year (2022), the committee explored avenues, to bring in investments from retail investors, living outside of Sri Lanka, thus developed infrastructure to offer convenient registration and investment opportunities to foreign investors. Fourteen new features have also been introduced to the Mobile App during its third phase.

Today, the CSE Mobile App, operates in all three languages (Sinhala, English and Tamil) and provides a plethora of services to its’ users. The opening of a CDS account, educational content about investing and trading, convenient access to CSE stock market reports, corporate news, CSE digital services, all upcoming events such as dividends, capitalization of reserves, right issues and ability to subscribe to latest Initial Public Offerings (IPOs), are some of them.

Through CSE Mobile App’s CDS e-connect, a user could view individual account information and through ‘My CSE’ a user could access to company and market information.

February 21, 2023

Total operating income more than doubled to Rs 138.0 Bn
Absorbs over Rs 90 Bn in impairment
Stellar growth of over 30% in deposits
Stage 3 loan ratios of 3.4%; one of the best in the industry
Strong liquidity with LAR and LCR well above statutory requirement
Adjudged the Best Corporate Citizen in Sri Lanka 2022

Hatton National Bank PLC (HNB) demonstrated resilience and a staunch focus on sustainable business performance as it posted Rs 15.7 Bn in Group Profit After Tax during 2022, a year marked by extraordinary circumstances and challenges.

Chairperson of HNB PLC, Aruni Goonetilleke commented that, “The year under review was unprecedented, with a combination of economic stress, social unrest, and political instability which resulted in systemic shocks affecting all Sri Lankans and sectors of the economy and the banking industry in particular. Consequently, HNB remained vigilant, carefully recalibrating its priorities to maintain stability whilst supporting customers and keeping stakeholders closely engaged as the crisis unfolded. This focus is clearly affirmed by our performance”. She thanked the Board for its strong leadership and conveyed the Board’s appreciated of the HNB Team’s commitment and contribution to the solid performance despite personal challenges and hardships. The Board also thanks all its customers and stakeholders for their support and confidence during a very challenging year and looked forward to their continued support in 2023.

She added that “Every crisis is an opportunity for positive change and Sri Lanka’s economic crisis is no different. Banks play a critical role in the country’s efforts to move beyond the current crisis mode to a growth mode and HNB is leading the way in unleashing potential with appropriate checks and balances.”

The Bank’s interest income increased by 110.0% YoY to Rs 207.0 Bn, primarily due to the increase in average AWPLR during the year by over 14 percentage points, consequent to the Central Bank’s restrictive monetary policy to arrest the inflationary pressure in the economy. Interest expense also grew at a similar rate as the high interest rates resulted in an industry wide shift from CASA to term deposits. The resultant net interest income expanded by 107.6% YoY to Rs 102.9 Bn.

The Bank’s net fee and commission income grew by 57.7% YoY to Rs 15.2 Bn driven by higher credit card volumes and trade income. Exchange income also improved significantly as the rupee depreciated by nearly 80% during the year. However, the exchange impact of impairment provisions on foreign currency loans and investments amounting to Rs 12.3 Bn was offset against the exchange gains. Consequently, the non-interest income increased to Rs 35 Bn from Rs 16.2 Bn by 117%.

Concerted efforts on supporting our customers to revive their businesses and proactive recovery initiatives enabled the Bank to maintain its Stage III loan ratio at 3.4% as at end of 2022. Factoring in the economic stress the Bank proactively increased its credit related impairments by 168% to Rs 31.2 Bn for the year compared to Rs 11.7 Bn in 2021.

Pursuant to the announcement on suspending repayment of foreign currency debt by the government of Sri Lanka, HNB on a prudent basis recognized an impairment charge of Rs 59 Bn in 2022 on account of its investments in foreign currency denominated government securities. Accordingly, the total impairment charge for the year increased to Rs 90 Bn by nearly five folds.

HNB’s total operating expenses recorded an increase of 34.3% for the year. However, the operating expenses for 2021 included a reversal of Rs 2.2 Bn on account of provisions made on pension and retirement benefits with the extension of retirement age to 60 years. Excluding this impact, the Bank’s operating expenses recorded an increase of 22%, in the backdrop of inflation peaking at over 70% in September 2022. Despite costs increasing, the cost to income ratio Improved to 22.0% compared to 34.4% recorded 2021, as total operating income improved at a much higher rate of 109.8% during the year.

Bank’s standard tax rate increased from 24.0% to 30.0% during the year, and a newly implemented Social Security Contribution Levy of 2.5% came in to effect, while VAT on financial services increased from 15.0% to 18.0% w.e.f. 1st January 2022. Increase in deferred tax asset as a result of change in corporate tax rate to 30% and substantial impairment charges recognized along with the reversal of previous years’ tax provisions with the settlement of past tax assessments, the Bank recognised a tax credit of Rs 2 Bn for the current year.

The Bank recorded a Profit After Tax of Rs 14.0 Bn compared to Rs 17.3 Bn recorded in 2021 while the Group recorded a PAT of Rs 15.7 Bn compared to Rs 20 Bn in 2021. This resulted in a ROA of 0.9% and a ROE of 9% for the Bank. The Board of Directors of the Bank has proposed a final dividend of Rs 5.00 per share in the form of a scrip dividend for both voting and non-voting shares.

Commenting on the performance, Jonathan Alles, Managing Director / Chief Executive Officer of HNB PLC. stated that “following the Easter Sunday attacks in 2019 and two years of the pandemic, year 2022 saw a series of extraordinary events unfolding. Suspension of external debt repayments, sovereign downgrades, significant rupee devaluation, increase in interest rates to 30% level subsequent to policy rate hikes to curb rising inflation, followed by power disruptions and fuel shortages, led to social unrest and political instability. Although the situation has stabilized since, it added significant pressure on asset quality, liquidity and capital levels of the banking sector

“We saw the need to reprioritize our strategies to address the crisis in hand. Our actions in terms of supporting business revival and tightening our underwriting standards, have enabled us to maintain one of the best stage III ratios in the industry. While we were restricted in supporting our customers with their imports during the height of the foreign exchange shortages, we prioritized essential medicine, food, gas imports and education related payments. The situation has improved today and this is demonstrated in our liquidity levels which are above the minimum requirements.”

MD/CEO further added that, “we are proud to be the Best Corporate Citizen in Sri Lanka in 2022. Winning this award in a year in which Sri Lanka went through multiple crises affirms that HNB stepped up to play our part as a responsible corporate citizen. This was not by chance but by deliberate strategy that was aligned to meet the urgent needs of the Country, the most vulnerable people and the businesses. In this journey, our people, , have faced many hardships in delivering our promise to customers and other stakeholders. I’m very grateful to the entire team for their untiring efforts in continuously raising the bar for HNB.”

“We remain hopeful that IMF board approval would be finalized soon, boosting investor confidence. In our path to recovery, we will continue to standby our customers and support the important sectors of the economy in delivering sustainable value to all our stakeholders”.

The Bank’s asset base expanded by 24.5% to Rs 1.7 Tn during the year, with loans and advances growing by 14.3% to Rs 1.1 Trillion. The growth was partly due to the devaluation of the rupee during the period and excluding this the growth was limited to 6% as the Bank adopted a cautious approach towards lending especially during the second half of the year. Total deposits of the Bank grew by 31% to Rs 1.4 Tn during the year, complementing Bank’s strategy of improving liquidity in the face of the crisis. Although this was partly supported by the rupee devaluation, LKR deposits saw a significant growth of Rs 191 Bn demonstrating the confidence placed by our customers.

The Bank reported Tier I and Total Capital Adequacy Ratios of 11.06% and 14.0% respectively against the minimum requirement of 9.5% and 13.5% respectively. The Central Bank permitted licensed commercial banks to drawdown up to 250 bps on the capital conservation buffer effectively lowering the requirement to 7% and 11% respectively. Furthermore, the Bank’s liquidity position further strengthened with liquid asset ratio and all currency liquidity coverage ratio at 34.0% and 519.5%, against the statutory requirements of 20% and 90% respectively.

HNB was awarded as the “Best Corporate Citizen for 2022” by the Ceylon Chamber of Commerce for the leadership in sustainability, governance and excellence. Furthermore, HNB was ranked among the Top 1,000 Banks in the World for the sixth consecutive years by the acclaimed UK based ‘The Banker Magazine’ while being adjudged the ‘Best Retail Bank in Sri Lanka’ by the Asian Banker Magazine for the 12th time.

February 14, 2023

AI, business messaging, cross-border shopping, virtual and augmented reality, creators, online shopping, and short-form video. Meta’s APAC VP looks at what should brands focus on this year.

14^th February 2022 – Colombo, Sri Lanka: I usually start the year by sharing what I know with businesses about the social media trends intersecting with business across our platforms. Social networks, creators/influencers, friends, and family are crucial in helping people discover and evaluate products and services in today’s connected world.

Awareness of social trends is also helpful because running a business today is vastly different from how we ran businesses just three years ago. Digitisation continues relentlessly, and competitors can come from anywhere worldwide. According to the latest eMarketer report, nearly 60% of worldwide social network users will be based in Asia-Pacific in 2023. Even with just 2.7% growth, the region will add more users this year (over 59 million) than the rest of the world combined. So, the potential to shape a brand online to connect with customers where they are is huge.

Especially now, with an impending global economic slowdown, this connection needs to be durable and efficient and help companies grow. Recessions may be notoriously hard to predict, but what we know for sure is that they don’t last forever. We also know that businesses most likely to gain an edge during a downturn are the ones who effectively leverage technology, adapt to change, and focus on performance.

So, let’s dive into the most promising social trends that businesses should be aware of and could leverage in 2023.

Artificial intelligence: Generative AI had a breakthrough at the end of last year. AI is becoming more mainstream as the technology continues to advance and its capabilities expand. As a result, a more comprehensive range of products and services are now incorporating AI, such as smart home devices, self-driving cars, and virtual assistants. The use of AI to analyse, organise, access, and provide advisory services based on a range of unstructured information will only grow. IDC (International Data Corporation) spending on AI systems in the Asia Pacific region will rise from $17.6 billion in 2022 to $32 billion in 2025. Businesses are looking for automation to improve customer experience and save time; think of augmented customer service agents to resolve support issues and intelligent automation to streamline complex and repetitive business tasks to support faster decision-making.

Business messaging: We’re living in a messaging-first world. In APAC, business messaging is growing across Australia, Indonesia, Korea, the Philippines, Taiwan, Thailand, and Vietnam. A recent study with BCG showed that 1 in 3 consumers across APAC chat with businesses at least once a week. While smaller businesses have been using business messaging for years, large businesses now recognise business messaging as a critical component of their business model, with 7 in 10 large businesses surveyed rated business messaging as very/extremely important to their overall business.

Cross-border shopping: The world is getting smaller as technology makes it easier to shop from anywhere. People are so comfortable purchasing from other countries that cross-border e-commerce growth is now outpacing domestic e-commerce growth by 5 points. By 2026, it’s estimated that the global cross-border e-commerce market will be worth USD 2.2 trillion – a compound annual growth rate of 17% since 2019. Meta worked with YouGov to survey over 16,000 shoppers across eight countries. Over half of those surveyed said they had already bought a product sold by a business in a foreign country, and 82% said they’re open to doing so – which highlights the future potential of cross-border opportunities. Social media plays a disproportionately important role in the discovery, with 58% of cross-border shoppers surveyed saying that they found products from foreign businesses this way.

Virtual and augmented reality: Businesses have embraced AR/VR to enhance the customer experience. Enterprises are building creative and immersive ways to experience their brand. According to the IDC, spending on AR/VR in APAC will grow with a CAGR of 42.4% and reach $16.6 billion by 2026. AR ads enable businesses to deepen their connection with their customers and improve the overall ad experience.

Creators: Creators are the future. Interestingly, 51% of cross-border shoppers surveyed cited creators as a top source of information to discover and evaluate products. This allows brands to collaborate with creators to co-create a brand narrative. At the end of last year, we launched ‘Creators of Tomorrow’ – a global campaign to spotlight creators who are innovating and building community across our apps – you can look at the diverse voices here. There’s never been a better time for brands to explore collaborations and co-creations with diverse creators or even complementary brands. They say that if you want to go fast, go alone, but if you want to go far, go together.

Online Shopping: Consumers are returning to physical stores, but the digital shopping habits formed during the pandemic remain relevant. Mobile as a discovery channel for Gen X and Baby Boomers continues to grow. A Nielsen study showed that 85% of APAC shoppers would continue to make purchases online, with Southeast Asian shoppers showing the highest online shopping intent at over 60%. Social commerce is the fastest-growing sales channel, with 62% of online shoppers in APAC citing it as their preferred channel.

Short-form video: Video continues its blistering growth across the internet and on our platforms. In APAC, video is becoming the primary way people use our products and express themselves.

So how should businesses respond? Figure out objectives – whether it is to build a brand or drive more immersive shopping experiences and go from there. It will be essential to tell your brand story through video of all formats and lengths to achieve outcomes from brand building to discovery. The upside is that businesses now have lots of ways to connect with people and build their brand through a variety of social, online, immersive, and conversational experiences – it’s an exciting space to explore.

These new ways of doing business and connecting with consumers will only grow.

February 7, 2023

Amalean: JAAF’s credibility enabled ease of doing business in an unprecedented socio-economic fabric

06^th Feb 2023: The Joint Apparel Association Forum (JAAF), the apex body that guides Sri Lanka apparel towards its ultimate goal of being the world’s number one apparel sourcing destination, held its 19th Annual General Meeting recently, re-appointing industry veteran Sharad Amalean as Chairman. It also unanimously re-elected its Executive Committee including Saifudeen Jafferjee and Felix Fernando as Deputy Chairmen.

Delivering the Chairman’s address, Amalean highlighted that JAAF identifies the importance of bringing in a new generation of young leaders with motivated youthful energy to drive the apparel industry beyond 2025. He stressed that while the past year has not been easy, the credibility JAAF has sustained over the years has undeniably aided the industry to work closely with the Government, relevant authorities and regulatory bodies. This has been a key driver in the ease of doing business in an unprecedented socio-economic fabric, a competitive edge in a challenging business climate.

“2022 was a defining moment for Sri Lanka. The textile and apparel sector should be proud that we prevailed and achieved a turnover of LKR 5.5 billion at the end of last year. I thank our stakeholders, team members and associates working in manufacturing plants all over the country for this achievement,” stated Amalean. He concluded his address with the reminder to adopt a positive outlook for 2023 as the IMF assistance is on the horizon.

Past Chairman of the Sri Lanka Apparel Exporters Association (SLAEA) Aroon Hirdaramani stressed that 2023 will be a challenging year with inventory pile-ups and an increase in costs and input prices. “Luxury brands will go on to do better than others, with the US being in a superior position globally,” he noted in his address.

Highlighting vital policy priorities crucial for the industry to optimise potential in 2023 and beyond, Secretary General of JAAF Yohan Lawrence pointed out that 2022 has been an year of mixed fortunes for apparel exports, starting off with a promise but seeing declining growth in the last months of 2022. “The global recession, overstocking of retail goods in warehouses and the impact of the Ukraine-Russia war on global supply chains took its toll. While Sri Lanka ended 2022 with exports worth USD 5.5 billion which is nearly a 10% increase from previous years, a closer look at the data reveals a worrying trend.”

He quantified Bangladesh’s USD 45 billion export industry growing by a massive 28% as against Sri Lanka’s YoY of 10%. “This growth in Bangladesh indicates that competitor nations are gaining market share from Sri Lanka. We comprise only 1 to 2% of global trade and this will reduce if the government fails to take immediate action.” He noted that with Bangladesh classified as a Least Developed Country, it has unrestricted access to the EU and the UK, while Sri Lanka’s GSP+ and DCTS programme dictate rules of origin, allowing only 50% of exports qualifying for duty free access to those countries.

Lawrence clarified that JAAF had made continuous representations to authorities for relaxation on the rules of origin for both the EUs GSP+ and the UK’s DCTS schemes on the reasoning that Sri Lanka should be considered an LDC given the unprecedented economic crisis. He further explained that India’s duty free access for Sri Lanka’s apparel allows only 8 million pieces and that too unfairly counting a pair of socks or gloves as two pieces under the quota. While thanking the Department of Commerce for its efforts to ship out the full quota to India, Lawrence highlighted that JAAF intends to work towards having the quota used at the highest FOB values in 2023.

The AGM was also joined by JAAF’s constituent associations. Chairman of the Fabric and Apparel Accessory Manufacturers Association (FAAMA) Pubudu de Silva thanked JAAF for its efforts in sustaining operations during trying times, stressing that the challenges ahead are not unique to Sri Lanka. “With collaboration, the industry can undoubtedly emerge victorious,” he said.

Vice Chairman of the Sri Lanka Apparel Sourcing Association (SLASA) Azmina Kareem commended the industry for its resilience in the face of adversity, highlighting that global retail and consumer priorities are rapidly changing due to declining disposable income. “Buyers are under massive pressure to face changing customer needs while maintaining margins and sourcing agents will have to step up.”

Assistant Treasurer of the Sri Lanka Chamber of Garment Exporters (SLCGE) Menuka Gunawardana expressed appreciation to JAAF for sustaining the industry given the hardships faced by SMEs through the pandemic and economic crisis.

Chairman of the Free Trade Zone Manufacturers Association (FTZMA) Jatinder Biala appreciated JAAF’s role in providing leadership for the industry and urged authorities to reassess the social security levy and the increase in corporate taxation and electricity tariffs which will impact the industry’s competitive edge significantly.

Quote:

‘While Sri Lanka ended 2022 with exports worth USD 5.5 billion which is nearly a 10% increase from previous years, a closer look at the data reveals a worrying trend’

Secretary General JAAF Yohan Lawrence

January 2, 2023

Embracing transformation for a better and brighter New Year

The Sri Lanka Insurance inauguration of business operations, for the year 2023, took place on 2nd January, at the Sri Lanka Insurance Head Office. Participants included the Chairman, corporate management, and staff of SLIC.

Even though the main event was reserved for a limited number of participants, all branches and staff joined the event via live stream. The inauguration of business operations commenced with religious observations, which included the four main faiths.

The past year saw Sri Lanka Insurance celebrate 60 years of service as the largest and strongest state insurer. The organisation remains at the helm of the insurance sector and has helped maintain industry-wide stability and equity, even during testing times. In fact, SLIC’s exceptional performance during periods of global crisis shows why it pays to be prepared. The organisation will continue to undertake strategic financial and fiscal risk management, supported by big data and a technologically driven Integrated Risk Management plan. By aligning the organisation’s business practices with the country’s development goals, Sri Lanka Insurance continues to go beyond the call of duty to contribute to economic progress, development, and growth.

SLIC ended the year on a high note, with multiple milestones and successes that advance the organisation’s overall mission, empowering its partners, people, and providers. By leading the way with innovations centred around technology and data, Sri Lanka Insurance has simplified insurance, making it more transparent, personalised, and accessible. The organisation is also at the forefront of sustainable investing, which promises excellent opportunities and impressive dividends in the years ahead.

Speaking about highlights from the past year and the promising future that’s been planned, Chairman Ronald C Perera, PC stated. “The year we leave behind was as memorable as it is historically significant. For over 6 decades Sri Lanka Insurance has been a guardian to the nation and its people, renowned as a beacon of strength and stability. We continue this proud tradition, leading the way not just on an economic front, but also in terms of environmental and social criteria.

As an oragnisation we are stronger than ever with the largest life fund and asset base in the Sri Lankan insurance industry. Even during challenging times, we were able to award the highest ever Life Insurance bonus payment of Rs.9.8 Billion to our policyholders. We are delighted to conclude a successful year with over Rs. 20.7 Billion GWP in Life Insurance and Rs. 20.5 Billion in General Insurance business. We were also able to secure awards as the most loved Insurance brand and most valued General Insurance brand for the 5th consecutive year. This is in addition to a number of other awards and accolades we received during the year by incorporating progressive principles, sustainable values, and prudent business practices. Sri Lanka Insurance has continued to lead the way, as a harbinger of progress and a bastion of strength. Caring for the well-being of our people is a priority for us and this earned us a CIMA Satyn Women Friendly Workplace Award, complemented by an Insurance, Finance, and Investment sector award at the ‘Great HR Quiz’. The organisation is technically robust and has been awarded the ISO 9001:2015 quality standard and Carbon Footprint Certification complying with ISO 14064-1:2018. Sri Lanka Insurance has also been extremely active on a social front, with CSR initiatives, including the construction of two isolation units at the Paediatric Ward and the donation of essential medicine to Apeksha Cancer Hospital under ‘Call to Donate’ and the gifting of free Life Insurance coverage to parents of children born on World Children’s Day”.

Chief Executive Officer, Mr.Chandana L. Aluthgama contributed to the event with an insightful and hopeful message, saying, “2022 was a challenging year, but we overcame these challenges together. The work we have done has a deep impact on the people and communities we serve. Making life better for all Sri Lankans. The organisation’s outlook, growth, and performance remain excellent. With a series of achievements including the launch of several new products all of which have performed beyond expectations. Like Medi 60 – Senior Citizen Medical Insurance. Motor Plus ‘Pinnacle’, ‘Medi Plus’ Health Insurance Plan, Janarekuma – Individual Personal Accident Cover, Drive 60 – Senior Citizen Motor Insurance and School Fee

Protector. Our mission is to exceed these achievements in 2023. By focusing on a superior customer experience, technological innovation, and socially inclusive culture we will continue to work towards our mission, adding value to the nation and protecting the lives of all Sri Lankans.”

November 17, 2022

● JAAF & IFC to empower industry with tools to address bullying and harassment in workplace

● Apparel industry committed to uplifting employee working conditions

The International Finance Corporation’s (IFC) Respectful Workplaces Programme aims to enhance business value by addressing gender-based violence and harassment including customer and client aggression, workplace bullying and sexual harassment, domestic and sexual violence, and sexual exploitation and abuse connected to the workplace. The Programme supports the private sector in emerging markets to create safe and resilient workplaces by demonstrating the business case for action and providing businesses with advisory services, resources and tools to help address germane issues.

The Joint Apparel Association Forum (JAAF) has collaborated with the IFC to provide training for JAAF member organizations on policies and frameworks required to help create peaceful and respectful workplaces. This training will provide tools to effectively and adequately address bullying and harassment in the workplace. The training sessions will be followed by a monitoring and evaluation programme to ensure the effectiveness and impact of the tool kit and training provided.

As the first step of the efforts to ensure and solidify respect at the workplace, JAAF hosted a webinar on November 8th on, ‘Building Respectful Workplaces’ conducted by IFC’s Women in Work Program Manager Sarah Twigg and Consultant Gender and Economic Inclusion Gayani Ranasinghe.

Introducing the IFC Respectful Workplaces Focal Point Training for the apparel industry, Twigg highlighted the unseen costs Sri Lankan businesses bear due to workplace harassment. “This amounts to more than USD 1.7 million in the nine companies surveyed for the IFC study,” she deduced. Following the findings of the study, Ranasinghe elaborated that the IFC has looked at existing policies within companies that address allegations of harassment, misconduct and investigation procedures and identified gaps to develop an ethical and fair reporting and complaint resolution procedure for companies to follow.

JAAF in collaboration with IFC has scheduled the conduct of training pogrammes in the coming months to enhance awareness of the topic in the industry. The apparel industry is committed to uplifting the working conditions for its employees given that it is one of the largest employers in the country, providing livelihoods for nearly one million people both directly and indirectly across 350 manufacturing plants island-wide.

For more information or if you would like to be a part of the training initiative please email JAAF at info@jaafsl.comm.

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