Sri Lanka is both an island and a global trading centre. The island nation’s historical position as a global trading centre, the abundance of natural resources and the availability of knowledge and technology position Sri Lankan exporters in an enviable and unrivalled position in comparison to manufacturers, suppliers and exporters in the region.
As a dynamic nation, we have kept up with the changing times and made efforts to grow our export sector. The current crisis, underwritten by governments of diverse political views, can lead us forward. Suresh D de Mel, who champions the Sri Lanka Export Development Board (SLEDB) as its chairman, is quite convinced of the sweet fragrance of both expectation and anticipation in the export sector amid crises.
SLEDB is taking steps to establish a National Packaging Centre under one roof. There are about 15 government institutions dedicated to packaging. Efforts have been made to unite all these institutions under one National Packaging Centre.
“At the moment the biggest hassle for people in the export sector is having to make trips to 15 separate places to get one task done. We need a one-stop shop to get things done. The National Packaging Centre fits that requirement. We have zoom technology coupled with other technologies. Suppose someone approaches us with an interest in cinnamon exports. But he may not have a proper understanding of cinnamon packaging.”
This is where the EDB can step in. The EDB has the specialized skills and techniques that enable officials to assist with export promotion. The research team would investigate factors such as the market the particular exporter intends to enter. Certain export products require certification. Certain markets look for labels in particular. Label creation requires special consideration in that regard. If that’s the case, the exporter needs to approach one institute to handle labelling processing.
Sustainable packaging is another crucial element. It is becoming a higher priority for both brands and consumers – more now than ever before. Millennials are pushing brands to be more socially and environmentally responsible. ‘Eco-friendly packaging’ strategy is more than just marketing jargon. In fact, implementing eco-friendly packaging is no longer an option. It’s a necessity. The production of eco-friendly packaging can create new income streams for the country and help save resources through reduced waste generation, lower raw material uses and less energy consumption. Thus, the ability to create or improve product functionality at a lower cost is a key factor for businesses when making decisions about implementing sustainable packaging on their products.
Avoiding duplication is a major expectation of one-stop-shop implementation. Exporters can save time by utilizing the links between relevant parties and institutions. As the mediator, the SLEDB would provide full support to the relevant government institution.
In our conversation with Chairman de Mel, we came to be more familiar with the Board’s role as facilitator through various awareness programmes for the export sector. These programmes are the ideal platform for exporters and export wannabes to grow.
“We must mitigate the effects of our negativity. The general public has no positive attitude towards public officials. The behaviour of a handful of them paints a bleak picture of the entire government system. That must not be the case. Our Board is currently concentrating on making life easier for the export sector,” de Mel explains.
To their credit, the Board has intervened with several issues faced by the exporters. With the pandemic, the exporters faced many difficulties in fulfilling export orders. Despite all those challenges, they managed to earn much-needed foreign exchange for the country. SLEDB has identified the significance of the export sector in developing the national economy and recognized the contribution of exporters to the export sector. Exporters have been able to overcome the difficulties caused by the pandemic during the last two years. They contributed at their level to bring foreign exchange to the country. Some exporters have diversified their products by supplying the products which create demand with the pandemic such as PPEs, gloves, masks, food preparations, and herbal and Ayurvedic products and were able to find new markets as well.
“The issues were diverse. The issue you had in Galle was not what you had in Kandy. And the solutions varied. Even during the fuel crisis, the Board intervened to issue permission letters to make things easier for industry men.”
Sri Lanka Export Development Board is Sri Lanka’s premier organisation for the development and promotion of exports, established in 1979 under the Sri Lanka Export Development Act No. 40, under the influence and guidance of the International Trade Centre (ITC) and the United Nations Conference on Development of Trade & Tariffs (UNCTAD).
Established as the executive body of the Export Development Council of Ministers headed by the President of Sri Lanka, SLEDB is the organisation responsible for the development and promotion of exports in Sri Lanka.
Today, SLEDB has reached beyond its original responsibility as a trade promotion organisation and has reached multiple layers of the country’s industrial, service and export ecosystem playing the role of a mentor and a facilitator in reaching new markets and identifying market and industry trends.
The Export Development Board has also adopted a thrifty strategy with investment.
“For all expenses, we need to prove that it is an investment. Answering so many questions and we get the funds allocated. That’s good. That’s how it should be done. That’s the way out of the economic crisis. We have to manage the remaining funds. We have cut down costs,” de Mel observed.
The Board has conducted training programmes for 300 development officers on contributing to export. The resource personnel are posted in almost every district. The coordination happens via digital technology. They are tasked with encouraging entrepreneurism among SME businessmen. Once an exporter is identified they will be steered on the methodology of catering to the market. A serious paradigm shift in the attitude is quite necessary.
As de Mel elaborates, the common attitude among the local exporters is that anything can be sold to anyone. However, the need to identify a market and target the specific market to manufacture a certain product is quite a necessity.
“When it comes to a certain packaging, we tend to fall in love with the way it is arranged. We rest assured of the good quality. With that self-confidence, we approach the market. But all does not happen as we wish.”
The strategy is simple: look for the demand. Identify the requirements. Manufacturing a product to cater to the demand is my recommendation. Sometimes what we think is quite different to what the Europeans think. Japan needs one packaging. China needs another. Our people must be aware of the market.
Organic products are another contributory factor towards the export sector enhancement. The majority of exporters are almost clueless as to how organic products could be materialised. One major reason is that Sri Lanka is yet to earn a reputation for organic products on a massive scale. Merely naming the products to be organic would not make much sense. A certification is an absolute necessity. However, it is an expensive procedure. Albeit the expenses, if the exporters can pass through the certification process, they will be entitled and eligible for an upscale market. Cheating is almost impossible. The Sri Lanka Export Development Board (EDB) has initiated actions to establish the National Organic Control Unit (NOCU). As per the regulations, all organic exporters, importers, traders, producers, processors, certification bodies, inspection bodies and laboratories are requested to register with the NOCU to ensure the credibility of organic agricultural products traded within Sri Lanka and exported to the international market.
Product diversification is another factor. Tea is a case in point. It is available in different forms such as ginger tea and bottled iced tea. Product diversification has moved on far ahead from the traditional line of thinking.
Chairman de Mel emphasises the need to encourage the exporter’s entrepreneurial mindset.
“The problem with most exporters is that they don’t have an entrepreneurial mindset. They cling on to their comfort zone. They don’t go for constant development. If you are a good entrepreneur, you must have constant development. You must have progressed to go ahead. But when you just become a business just for the sake of earning, it would be dangerous. These businessmen are considered informal. They won’t pay tax. They like to keep on the informal profile forever. The biggest obstacle about them is that we have no data about them.”
As de Mel points out, the SME sector is mostly informal. These informal businesses cite various reasons to avoid paying taxes. Another salient activity spearheaded by SLEDB is celebrating Global Entrepreneur Week. The week is aimed at building a strong network for the sake of entrepreneurship.
“The simple solution to overcome most of our concerns is to get networked. With the internet, networking is more than possible. We have WhatsApp groups where the membership exceeds 500. We need to capitalise on this ease of access provided by technology. This is the ideal way to look at collaboration. Our journeys must connect the nations. Then we can reach the winning goal. It’s a win-win situation,” de Mel explained.
Business magnates cannot compete in isolation. As de Mel points out, unnecessary competition in the global market would only worsen the country’s image. One local manufacturer must not go out of the way to undercut a fellow local manufacturer in the global market. Deals must be struck to issue high-quality goods and services to the world market. A price control strategy can be adopted only in such an instance.
Such a venture is a convenient possibility as a result of proper networking. The networking redresses various concerns and issues of financial facilities, tax information, accounting details and regional policy changes. Education institutions and policymakers must be among the stakeholders of this network. The Global Entrepreneur Week had 50 countries in collaboration.
“We started to celebrate this and wanted to have a big gathering of all entrepreneurs. It was an eye-opening experience and the event was a success so we wanted to be part of it from now on.”
Global Entrepreneur Week (GEW) celebrates the diversity and resilience of entrepreneurs around the world. The mission is to inspire, educate and empower tomorrow’s entrepreneurs. The GEW is a celebration of entrepreneurs, and the spirit of entrepreneurship is one of the most powerful forces in our world today. Entrepreneurs are changing all aspects of society, from economic growth to social change. The GEW is an opportunity for entrepreneurs worldwide to come together, share experiences, form new connections and celebrate their contributions to a better world.
“We have a policy dialogue. We can commemorate it. We are in fact, a facilitator. We are also in the system with all our facilities and their products. The whole world is here with their ideas. Networking is the best way to identify the market. Most people don’t want to collaborate but collaboration is what happens now because they pitch their business idea then invest without collateral.”
Long before taking the reins of the SLEDB, Suresh D de Mel proved his mettle as a visionary entrepreneur and investor. He also owns and operates Lanka Fishing Flies, which is a pioneering manufacturer of designer and signature, hand-tied Fishing Flies which are exported worldwide under the brand Umpqua.