Accountability will quicken the country’s recovery
Mr. Mahendra Jayasekara
The Sri Lankan tile industry, with output at nearly 30 million square metres (sqm) annually, has shrunk to 16 million sqm owing to the unprecedented economic crisis in the country.
Mahendra Jayasekara, Managing director, Lanka Tiles PLC pointed out to the Business Times recently that this was due to the high-interest rate, foreign exchange shortage, and the standstill of the construction industry.
“The impending tax hikes (in January) will make it even more difficult to move forward in the industry. We have seen house construction in the country also come to a virtual standstill. We are facing unprecedented challenges.” The foreign exchange shortage last year hurt the company’s financials heavily as it was buying forex at high rates from the market.
“The industry is headed to a crisis,” he said, pointing out that inconsistent policy was at the centre of it.
“I always say that consistent bad policies are better than inconsistent good policies.” This is because the industry will know what to expect with ‘consistency’, he added.
He also predicted the electricity bill of the company, which currently stands at Rs.25 million, will increase to at least Rs.100 million this year due to the tariff hikes. “We can pass it down to the customers, but there is a limit to it. Such things will be difficult to count. We can only face it.”
Mr. Jayasekera is forecasting the import bans on certain products to continue this year.
He said that this year will be a year the company will be focusing aggressively on exports, especially to come out of the economic crisis. Lanka Tiles saw its percentage of exports dropping over the past few years as the demand locally was very high and the company had to service that demand. “But now we will be aggressively expanding into markets, especially like Australia and the US, and also to the European Union as well as other markets,” Mr. Jayasekara added.
He said that within the next two years, the company intends to up its exports’ percentages by 15 to 20, as against the current 6 per cent.
His fervent wish for this year was that the country starts limping towards normalcy, which all the citizens have a responsibility to push towards. “I must also add that accountability is very important. We should demand accountability from the government as the return to normalcy will not happen in a hurry without accountability. The government should demonstrate accountability and then people will have confidence in the country and in the economy. I don’t wish to ask the government to protect our industry, but to protect the Sri Lankan economy and the country at large. This New Year should bring a sense of accountability.”
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