Fast-tracking financial success

AAT Sri Lanka Annual Conference 2015 kicks off

By Waruni Paranagamage

President Maithripala Sirisena inaugurated the Association of Accounting Technicians (AAT) Sri Lanka Annual Conference 2015 last evening at the Galadari Hotel on the theme ‘Fast-Tracking Financial Success,’ which was attended by a large gathering of over 600 personnel including business leaders, policymakers, senior financial professionals, AAT Sri Lanka members and other dignitaries.

The keynote address was delivered by Deputy Minister of State Enterprises Development Eran Wickramaratne.

Kicking off his address, Wickramaratne asserted that financial success doesn’t just depend on creativity, ingenuity and hard work of Sri Lankan workers and entrepreneurs, but also depends on systemic elements – that is institutional governance structures in all parts of the country’s economy.

“By governance structures, I am not simply referring to governance in the public sector but also to private sector and corporate governance,” he noted.

Cancer of corruption

“An immediate problem affecting the financial heads of Sri Lanka is corruption. I have been one of those individuals who have had the opportunity of working both in the private sector and also participating in the public sector.Often financial success is driven not by ability but by advantages begotten by undue means.”

He pointed out that if a business environment permits space for corruption, to leverage an advantage over its competitionpeople will devote their time and energies into exploiting those means rather than innovating. 

“So corruption is like a cancer; we often only think about the problem in corruption but its systemic impact on innovation is drastic. For example, if it is easier to grease the palms in order to win Government contracts than it is to dedicate time and effort for research and development, then the innovative capacity of this country will continue to stagnate.”

Corruption should be ended for more than one reason, he stated, adding that it’s not just about the transaction or the deal but also the debilitating impact on the economy and the country.

Citing the recently-published World Economic Forum 2015-16 Global Competitiveness Index, in which Sri Lanka has improved five places, he said: “In one sense we could cheers ourselves. However, according to a VeritéResearch Insight, Sri Lanka’s Overall Competitiveness score has not changed. For the past four years this has been the case. We’ve had some gains in some areas, like in infrastructure investments, but they have been offset by losses in other areas.”

For example, he said Sri Lanka has ranked poorly in the Goods Market Efficiency indicator, because the number of procedures and days to start a business has increased as well as the level of trade tariffs.

Innovation and entrepreneurship 

This operating environment highlights the importance of innovation and entrepreneurship, Wickramaratne asserted.

“Innovation is vital to fast-track the financial success of a country. However when merit and competitive capability don’t form the basis on which contracts are awarded or success is derived, the movement towards innovation and entrepreneurship is undermined. Corruption drives people to increase their profits by other means and tears away their attention from innovation.”

As a result, he said that Sri Lanka still relies on tea and apparel for almost 50% of its exports when it should be developing high tech exports to remain competitive in the global economy.

“It’s a well-known fact how from the year 2000 to 2015, the country’s competitiveness as well as its share of exports has drastically dropped as a percentage of GDP almost in half.”

A vision for innovation 

Sri Lanka needs a vision for innovation, the Deputy Minister noted, adding that is it vital to create a partnership between industry and academia.

“Seven or eight years ago I worked with the then Chancellor of the University of Moratuwa to create an NDB Bank-sponsored entrepreneurial chair at the university. As we all know, funding for R&D and even more basic things like remuneration of academics is very low in this country. Therefore such a partnership between industry and academia creates the possibility for innovation. So as I sat in the chair as CEO of the bank, I was grappling with the issue of how we bring academia and industry together.

“The entrepreneurship chair was a CSR initiative of NDB, focused on changing the culture of undergraduates from that of job seekers to that of job creators, creating wealth for the national economy and with it new opportunities for a new generation. It also marked the first time possibly that a partnership between the private and public sectors was established in order to create entrepreneurs.I have recently been told that others have followed those pioneering initiatives of bringing academia and industry together so that we might achieve our vision for innovation and entrepreneurship.”

The Deputy Minister concluded his speech by wishing the new graduates every success in their careers.

Education can change the world

Addressing the gathering, AAT Sri Lanka President Lalith Fernando asserted that education is the most powerful weapon that can be used to change the world.

“AAT Sri Lanka has been here for over a quarter century. A powerful nation can be built on a high quality education. We are a nation that enjoys the benefit of free education up to Grade 13. Thousands of studentswho sit for the A/L examination qualify for university entry but only a small percentage are able to attend State universities. Meanwhile, 50% of O/L students qualify for the A/L examination. What are the options are available to these students? This is where AAT steps in.

“AAT produces more than 4,000 accounting technicians to the market who serve the private and public sector at various levels in various capacities. The qualification is a stepping stone to become Chartered accountants and can also be used to follow to go for our other accounting disciplines with subject exemptions.”

AAT’s role in Sri Lanka’s economic development

Conference Committee Chairman Dr. Chamara Bandara stated that AAT Sri Lanka has grown over a period of 25 years and is one of the most popular organisations amongst other educational institutes. 

“Although the contribution AAT makes to our economy has not been measured, I’m sure we are a major contributing source to the economy. A research conducted by us shows that 77% responded positively that AAT is a minimum accounting qualification required to be employed in SMEs. Therefore I believe that AAT Sri Lanka plays a major role in our economic development process.

“In my last year’s speech also I mentioned that we are not gathering here annually just to meet our colleagues, but this is a unique opportunity for us to share our knowledge and experience and also learn from others, which will help us in improving our knowledge.Having understood the purpose of the conference and the strategic position of AAT Sri Lanka, this year’s conference is made uniquely different from others. This conference highlights the importance of professionals having soft skills.”

Commenting on this years’ theme, Dr. Bandara stated that it signified the importance of soft skills. “In our culture we consider the academic education as a primary and highest achievement. Nevertheless, we never thought that our soft skills are a more significant contributing source to our success, especially financial success.”

He also pointed out that the AAT Annual Conference changed and improved each year. “We as Council Members are always vigilant and sensitive to changes in our environment. Having understood the importance of the latest technology, the Conference Committee has taken some steps to digitalise the conference affairs,” he added.

Technical sessions 

Technical sessions of the conference will be held today, powered with knowledge packed sessions on ‘Business Model Innovation,’ ‘Practical Steps to Professional Conduct,’ ‘Lead, Communicate, Negotiate: Your Path to Success’ and ‘Lean Management in the Age of Agility’. 

They will be presented by 16 topical experts in different disciples. The conference facilitates the exchange of profound expertise of resource persons in chosen fields.

 

Pix by Upul Abayasekara

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