Experts to deliberate on employment strategies to overcome economic challenges at EFC Symposium

Ernst & Young Sri Lanka Director – Business Consulting Talal Rafi

Nestlé Lanka Managing Director Bernhard Stefan

The Employers’ Symposium 2025 organised by the Employers’ Federation of Ceylon (EFC), a much looked forward to event among the EFC’s member-companies and other business stakeholders, will take place on 28 February at the Monarch Imperial. 

This year’s edition will unfold under the banner, “Traversing Turbulence – Fueling Enterprises for Success.” The esteemed panellists, drawn from diverse business sectors, will deliberate on key issues pertaining to this theme under three broad segments. 

Ernst & Young Sri Lanka Director – Business Consulting Talal Rafi, who is a panellist for the session on “Economic Environment: Employment Strategies to Overcome Economic Challenges,” will converse about the economic crisis and revival strategies. In the context of the challenges the local business community had to brave, there are several lessons to be learnt, points out Rafi. Fiscal discipline, digitisation, and strengthening supply chains are notable among them, he says. 

“Better financial management would be a lesson as many businesses during the economic crisis suffered due to high debt and bad liquidity management. Companies who had digitised showed much greater resilience as it led to greater efficiency. Businesses also learnt the lesson of diversifying and strengthening their supply chains.”

Commenting on how Sri Lanka can maintain a balance between International Monetary Fund (IMF) conditions and social expectations at manageable levels, Rafi says that it is paramount to protect the economically vulnerable segments of the population. “As the IMF requires, Sri Lanka needs to spend a minimum 0.6% of GDP on social security. The IMF conditions include tough structural reforms, which, if implemented, will result in economic growth. Equitable economic growth is the only permanent solution in addressing poverty. The benefits of the IMF program must also be communicated well to the public.” 

The challenges that Sri Lanka have to grapple with in the next couple of years for the country to get into a sustainable growth trajectory are many, and implementing tough structural reforms, which will not be necessarily popular among the people, would be critical, notes Rafi. 

Among the structural reforms are labour law reforms, SOE reforms, trade and investment reforms, land reforms, and educational reforms. “Sri Lanka needs investments to grow the economy. Government spending needs to be more on capital expenditure in sectors such as education, health, infrastructure, digitisation, and Research & Development (R&D). Sri Lanka also needs foreign direct investment into key sectors to fuel growth,” maintains the senior profesional. 

Remarking that the upcoming EFC Symposium is timely for making the case of the business community heard, Rafi goes on to note that, by uniting key stakeholders, it will help influence policymaking in the right direction. 

Nestlé Lanka PLC Managing Director Bernhard Stefan, who is also a panellist for this session, will discuss firm-specific strategies to survive the crisis. 

Stefan, who took over Nestlé Lanka at the height of Sri Lanka’s unprecedented economic crisis, remarks: “Sri Lanka is a resilient nation. Despite facing a severe economic crisis, Sri Lanka was able to gain economic stability relatively fast. Although the journey has been painful, with consumers and manufacturers forced to make hard choices to navigate this period, I am optimistic that the nation is well-positioned for growth.” Commenting on the role played by Micro, Small and Medium Enterprises (MSMEs) in an economy, Stefan, who is armed with extenstive experience in the region as well as in several other parts of the world, avers: “I have witnessed first-hand the great entrepreneurial spirit of Sri Lankans during the economic crisis. This includes working with our dairy and coconut farmers in the agriculture and livestock industry, as well as supporting the street food and restaurant sector through our out-of-home food solutions business. Additionally, our efforts have a significant impact on the hospitality sector.” 

Stefan, who goes on to note that all businesses had to cope with depressed demand situations, high costs of financing, and many other challenges, points out that MSMEs are more vulnerable in these situations due to their inability to absorb severe financial shocks. “However, I was able to see how these businesses were able to recalibrate and reinvent their products/service offerings during these trying times,” says Nestlé Lanka’s MD.

Given that financing is a significant challenge for MSMEs, established corporates can play a crucial role through knowledge-sharing and capability building as means of supporting them to survive a crisis, maintains the senior professional. “It is essential for all businesses to quickly learn from their mistakes, continuously innovate, and consistently strive to delight their consumers. This approach will ensure sustained growth,” he remarks.