Sri Lanka’s biggest challenge is making farming profitable
Sri Lanka’s biggest challenge in agriculture is the farming sector where most farmers own less than an acre from which they earn around Rs. 20,000 which is insufficient for their subsistence, a meeting in Colombo was told this week.
BRL Fernando, recently retired Chairman of of CIC Holdings Plc, said that as far as farmers are concerned they want minimum imputs to maximize their product. “Gone are the days when food was cheap. Food is going to be expensive in the coming years,” he said speaking during a panel discussion at the second corporate directors’ programme conducted by the Chartered Accountants Sri Lanka and the Securities Exchange Commission (SEC) of Sri Lanka.
He said CIC Holdings became very successful because of ties the company had with the farming community. “We had professionals who had expertise and exposure to agri business who developed modern farming methods.” He said 50 years ago there wasn’t a problem with water or with land but the situation has changed drastically today.
From a shareholders perspective, he said they always inquire the direction where a company was heading.
The panel discussion was moderated by Asita Talwatte, Chairman, Corporate Directors Programme and included Husein Esufally, Chairman Hemas Holding Plc; Rajendra Theagarajah, CEO/ Director NDB Bank; Ajith Tudawe, Chairman/President Durdans Hospital and Dr. Vijith Kannangara, Chairman Smart Media.
Mr. Esufally said they started their business in a small way as they realized there was tremendous potential for cosmetic products then in the country but had to battle it out with several multinational companies to overcome the impasse. He said brand visibility too was important and stressed the importance of research and development. There must also be a vision to improve the overall business, he said.
Mr. Theagarajah noted that as far as the bank was concerned instructions went from the top so as to motivate staff to achieve profitability. The other important factor in formulating strategy was the communication, he said. Referring to most foreign fund managers, he said they remember what a person told them two years before. “One must be able to listen to diverse views of others before a final decision is taken as it is beneficial to the institution in the long run. In tapping foreign capital markets one has to go to them at least three years before and not six months before,” he said.Mr. Tudawe said the strategic plan for expansion of the Durdans hospital started 20 years ago in a modest way to what it is today. “We started the heart centre almost 17 years in partnership (with an institute) from an Asian country. Today we are a leading brand in health care in the country,” he said.
Dr. Kannagara said though he was a medical professional he got into the media business after studying the annual report of the Hayleys group. “When I started the Smart media business, I told everybody that we should be the world leading publisher of annual reports. That was our vision. It takes a long time to develop a business internationally,” he added.