CCC to focus on soft aspects to ensure holistic economic development under new Chairman

CCC Chairman Samantha Ranatunga

Our Chief Guest H.M.G.S. Palihakkara, the Governor of Northern Province, ministers, deputy ministers, excellences, ladies and gentlemen, good evening. It is my privilege to address the 176th AGM of the premier business chamber of Sri Lanka. I am indeed honoured to take over the leadership of this chamber. I thank you sincerely for the trust placed in me and assure I will do my utmost to further the interest of the chamber. 

My four years in the Standing Committee ‘A’ to me was a great exposure to the economy, business and industry-related issues and also to operating styles of two of the finest business leaders of this country. I learnt much from the unruffled, quiet, calm leadership style of Susantha Ratnayake as well as from the determined, persevering and yet patient style of Suresh Shah. Many economic, political and legislative challenges faced us during this period and to me it was a master class of seeing how two great leaders responded to it and I thank both of them.

During the period of Suresh, we also undertook significant changes, internal restructuring of the chamber in order to make the chamber more service-oriented and the decision-making styles to be more participatory. The effort taken by Suresh in all this, we need to deeply appreciate. (Six years have passed since the separatist war ended. With the end of the war, we all looked forward for an era of peace and prosperity brought about by rapid economic development.) 

Fresh set of challenges

Our unique geographical location, the resilient economy and people and the general level of business confidence were the key factors why we thought economic development was possible. However, though we have seen development, a fresh set of challenges seem to be looming on the horizon. 

The political landscape of this country is facing many upheavals today. The constitutional changes and uncertainty of the elections have impacted the economy and cast doubts on the business confidence. It’s time for us to push these difficulties aside and to address some fundamental issues, which act as impeding factors to our development. 

Suresh’s speech highlighted the 10-point agenda which will be the fundamental principles promoted by the Ceylon Chamber of Commerce. It encompasses the key areas of focus this country should focus in its path to prosperity. 

Focus on soft aspects

My personal feeling is that much work has been done now in developing the “hard infrastructure”. We need to work on the soft aspects, if we need to bring a holistic economic development to this country. In the soft aspect, my focus will be in three areas where the chamber can play a major role

1. Regional inclusivity

2. Education and skill development 

3. Strengthening of the SME sector

Regional inclusivity

Though we are extremely proud as a country on the high economic growth, the increasing per capita income and the infrastructure development, some key statistics show the magnitude of disparity between the urban and rural populations.

•  Nearly 50% of rural children drop out at O/Level, in spite of a free education available.
•  4% of rural and 12% of estate children do not attend school at all
•  The percentage spend on liquor and alcohol is higher in the rural areas than in urban areas.
•  Savings remain lower in rural households compared to urban households

The disparity in the urban rural populations, which today we try to equal through subsidy schemes, with severe impact to the national budget/economy; e.g. the fertiliser subsidy costs today between Rs. 50 b-Rs. 60 b. That is 30% of the total budget. For education it is Rs. 190 b (2014). We need to critically look at priorities. 

Today we have with us the Governor of the Northern Province as our Chief Guest and our keynote speaker. I am sure he will talk to us on the initiatives the business community could take in building bonds between the north and the south. 

In the area of agriculture we have seen major benefits which have been derived by including the northern community in our farming sector. However, in the areas of industry and services, there is greater room for improvement, as a chamber this will be one of our major challenges in the coming year. As physical bridges have got built, we need to bridge the mental gaps. This engagement will be a priority for the chamber this year.

Educational and skill development

Educational and skill development is talked about a lot yet as an economy we tend to underestimate the economic impact it has. 

Dr. Indrajith Coomaraswamy, the eminent economist and chamber committee member, sounded a warning recently that Sri Lanka is getting trapped as we are no longer a low-wage nation and neither do we have an adequate skills-set to be part of the knowledge economy. 

As we pressurise Government to focus on more spending on education, the private sector should play a leading role in monitoring, regulating and supporting the quality of the outcome of our educational institutions. Other than a few companies, the involvement of the private sector in education area has been left to mushrooming educational institutions. This I feel is an indictment to the entire private sector. 

If we need quality people to compete in the future market place we need to play a role in developing those people and not leave it to the Government alone. In the coming years, we will strive hard as a Chamber to increase standard of education in business subjects with closer collaborations with the university system and also to take the knowledge levels which resides in the urban areas to the rural.

Strengthening of the SME sector 

Last year I happened to chair a session at the SME forum held by the chamber on marketing and market development and standards. I was amazed at the level of participation, the level of interest and the responses that we received during and after the program. 

Many small industrial regionals players from all over Sri Lanka were there in the audience. They had extremely simple queries on scientific knowledge, on standards, etc. The fragmented SME sector policy has not helped the small and medium enterprises in the recent past. 

The white paper on the SME sector which was initiated in 2010 and updated in 2012 has not come to pass; at best the SME sector is confused as helping the SMEs has become an empty slogan for everyone concerned. 

The chamber will play a determined material role in organising SME development activities and continue with our SME forum in the coming years we will use it as a rallying point for the small and medium enterprises of this country.

Year of deeper engagement

As we pay special focus to these three areas and involve ourselves in setting up a policy framework based on the 10 principles mentioned by Suresh, I look forward to a year of deeper engagement between the chamber, the secretariat, the members and the community at large as it is a united effort that will be able to carry us all to success. 

Together with my colleagues in the board to be elected, I look forward to a year of greater engagement, support and guidance. I thank you for the trust placed in me once again.