Fresh efforts to revive cash-strapped Chamber Federation
View(s):The Federation of Chambers of Commerce and Industry of Sri Lanka (FCCISL), which moved its headquarters to Grandpass from Slave Isand as a cost –cutting measure, has prepared an action plan aimed at reviving the cash-strapped premier chamber body. FCCISL President Ajith Wattuhewa told the Business Times that a finance committee will be appointed in accordance with the provisions of the action plan to handle all financial matters of the chambers and it will be entrusted with the task of introducing strict financial discipline in day to day operations of the institution.
The shifting of the headquarters from the building at Vauxhall Street, Colombo 02 to Sirimavo Bandaranaike Mawatha, Colombo 14 will save at least 50 per cent of money they spent to rent out the previous building, he said.
Past senior officials and members of the chambers revealed that the federation is facing a financial crisis due to mismanagement and it has lost nearly Rs. 200 million of its capital while the number of employees has been cut down to around 40.
Mr. Wattuhewa noted that he will take necessary action to rectify the situation and that is why he has decided to relieve powers of the president in handling finances and hand over it to a separate committee.In-house training for members of chambers will be expanded with the setting up of the federation campus in Colombo with international university affiliation, he said, adding that it has been proposed to implement a membership drive with the aim of increasing the number of individual members to 50,000 from 15,000.
He disclosed that the membership of regional chambers fell by 10 per cent in the recent past due to various reasons including the lack communication between the FCCISL and the regional bodies.
This matter will be rectified shortly and a progarmme has been devised under the action plan to motivate regional chambers, he added
The issuing of Non-Preferential Certificates of Origin (COO) to Sri Lankan exporters is one of the income generating functions of the FCCISL, Mr. Wattuhewa said, adding that this procedure will also be streamlined under the new action plan.
Although the foreign funding of the FCCISL has been affected greatly by the withdrawal of Norway from extending financial assistance for chamber projects, the action plan has suggested promoting international relations by setting up of a separate division handled by a special committee of the federation of chambers, he disclosed.
Norway had supported the FCCISL with Rs 204 million to develop the organisational capacity of 28 district chambers.
The aim was to create strong and financial independent regional chambers with the capacity to lobby, provide business development services and create a strong membership bases.
According to the new plan, foreign and local funds will be raised for training and services including the capacity building of regional chambers, Mr. Wattuhewa said.
He noted that negotiations are underway with the European Union and Norway for fresh funding for new projects while exploring avenues to raise funds locally.
Small businesses form the bulk of the Sri Lankan economy and its benefits, their voice and power are still limited to the regions, he said, adding that his aim is to involve them in productive ventures at national level extending necessary assistance.However Secretary General/CEO of FCCISL Nalin Attygalle said that the shifting of the headquarters to Grandpass recently was a strategic move as almost all motor traders are operating their business from this area.
The institution is now easily accessible for them and they will be able to obtain the services from the federation much easier, he said, adding that it will also help increase the individual membership of the chambers.