Challenges ahead of new EDB Chairman

It is learnt through media that Bandula Egodage has been appointed as the new Chairman and Chief Executive of Sri Lanka Export Development Board, the apex institution on development and promotion of exports in Sri Lanka.

With heartiest congratulations on his appointment to this highly responsible post, I consider it is important to emphasise the huge challenges that will emerge ahead in the export trade perceptible by the continuous backdrop of exports. The experience of Bandula Egodage on development of business in private sector will help strengthen export development plans more constructively.

With the open economy or market-oriented economy introduced in the latter part of 1970, the export industry played a major role to enrich the economy based on export-oriented economy. The Sri Lanka Export Development Board was established in 1979 empowered with wide powers on institutional framework to promote and develop export trade at the highest standard in the best interest of the nation. The Chairman of EDB who is also the Chief Executive plays the major role in recognising with prestigious rank in the society.

It would be appropriate to quote Lalith Athulathmudali’s speech at the presentation of the Export Development Board Bill in Parliament in 1979 in reply to the question raised by the Opposition regarding the Chairman of EDB.

Athulathmudali said: “Chairman is Victor Santhiyapille , the Secretary General of UNCTAD – GATT ITC – International Trade Centre – with worldwide experience on this subject. I thought he was the best man to be influenced for his contribution to the benefit of the motherland.” This proves the importance of the post of EDB Chairman.

The EDB

As targeted by its founders, the EDB achieved the apex of its glory within a short period of time since its inception with a dedicated performance of professional service by a qualified staff during those days in building close relationship with the export community. Hence, a formidable duty is cast upon the new Chairman with his competent skills and experience to rejuvenate the EDB and bring back its glorious status, which made it shine in the early days.

The EDB is a special institution established by a very powerful act. The functions that should be carried out by the officials are stipulated in the act. The notable feature of EDB was the structure of difference between the Government and other institutions.

An Export Development Council of Ministers was formed under the Chairmanship of the President comprising the ministers in charge of relative areas in export production. The objective of the council was to advise EDB with directives for prompt execution of the decisions taken by the Export Development Council of Ministers. Expenditure on national development is funded by the Export Development Fund, which was opened under this act for the purpose.

As the key trade promotion office, the private sector has a significant role to play in the TPOs under the -oriented economy as highlighted by the writer in his article which appeared in media on ‘Role of Private Sector in TPOs’. The general public is waiting to see the contribution made by the private sector under the new leadership of the EDB who represent the private sector towards national development.

Many challenges

The Chairman of the EDB will be confronted with many challenges on account of the range of new changes taking place in the local and global market. Apparently there has been a continuous decline of exports in the recent past, affecting the national economy.

The Sri Lanka Export Development Board has planned an export target to the value of US$ 15 billion by the year 2015 under its strategic plan. . In order to achieve this target an annual export growth rate of 16% should be maintained by Sri Lanka from 2013.

The explanation for the decline of exports was partly due to reasons beyond control or the international financial crises; particularly the crises which emerged in 2009 and 2010 and later the volume of exports which gradually surged during the last few years.

As the writer expressed in his recent article on ‘Whither Exports?’ the strategic plan of EDB failed to reveal the strategies but only displayed the promotional tools as strategies that Sri Lanka followed during the last so many years. Hence, a responsible task is cast upon the new chairman to introduce an alternative progressive plan to implement the real strategies with wisdom to brave future challenges and rebuild the image of the EDB.

It seems vitally important to consider the benefits expected upon investment on implementation of EDB programs.

Sri Lanka Expo 2012, recognised as the greatest event highlighted by the EDB, recorded a participation of 1,000 buyers last year. But in terms of the expo website, the total value of confirmed orders was US$ 66,000 or Rs. 9 million – a considerable declining result. Despite the high cost of hosting an expo exhibition, it is the consensus that the expo exhibition ranks high in value as a solo exhibition if it is organised with participation of true buyers who honestly contain the interest in purchasing our quality products.

The historical success of the first two previous expo exhibitions captured the attraction of the business community, which still reminisces with high regard. It would be more meaningful to focus on national importance rather than building personal image in organising these events. An enormous responsibility lies on the new Head of the EDB to make the exhibition a magnificent success with professionally-qualified academics encouraged by the support of the business community in organising the event in future.

Attracting exporters

Another significant factor is the attraction of exporters with the influence of the EDB as the only leading TPO in Sri Lanka. Apparently, most of the leading exporters are inclined towards other institutions in their business activities.

The reason behind this factor is the replication of most of the promotional tools introduced by EDB by other institutions implicitly with special preference for the needs of the exporter. Hence, it places greater responsibility on the EDB in this instance to engineer new strategies for development of export trade.

Given the high priority placed on export development by the Government, it is the onus of the EDB to utilise Government assistance in order to make its development efforts a great success. The initiative taken for portal system is appreciated with new technology added on to it. It is advisable for the EDB to take essential steps to embolden exporters to space marketing in a bid to promote production without physical meetings.

It is proposed to the new Chairman Bandula Egodage to convene an urgent meeting of the National Advisory Committee to discuss what moves should be adopted to rebuild a stronger mutual relationship between the EDB and the business community as prevailed in the past.

The President has pledged the fullest support of the Government in his Budget speech every year with high priority to the development of the export trade. This may be the best suitable time to call for a meeting of the Development Council of Ministers with the President as the President of the Council of Ministers of Export Development together with all the exporters. The business community will use this platform to address their important issues to the council for concerted relief on development of export production. Such a forum would be able to bring positive solutions to the poignant issues placed on the table.

The price hike in electricity and other infrastructure in producing areas together with concessions from overseas market to counter the effects of the loss of the GSP+ facility would be significant issues to be discussed. It will be a meaningful approach to consider new strategic attempts of the EDB in developing proper branding strategy , KPO/BPO, maximum utilisation of Free Trade Agreements, developing relationship with other TPOs in organising promotional projects and seeking the  possibility of reopening our own trade centres overseas as well.

Restructuring the EDB

Restructuring the EDB, an urgent necessity argued during the past decade, became a reality very recently. The intention of restructuring the institution was not meant for personal benefit but on national objective to brave the new challenges. Hence it is the duty of the new Chairman to study the views and suggestions of all individuals and groups who are willing to share their contribution to development of export trade.

It is a proven fact that politically-gifted bureaucracy at the top lacking knowledge of export development is liable to thwart the long-term development structure by their narrow decisions. It would be wise if the Chairman respects the views of the general staff and general public as well in addition to the management in his effort to rebuild the image of the EDB.

In recognition of the vast experience of the new Chairman of the EDB in the private sector, the Sri Lankan business community strongly believes that he would prove his competence in guiding the EDB to prosperity, winning the influence of exporters in the interest of national development.

The Sri Lanka Export Development Board has a pivotal role to play towards the social and economic development of Sri Lanka. It was a questionable issue in the last few years whether its contribution to islandwide development of exports was professional. It would be advisable if constructive changes are implemented in related areas in order to compete with new challenges ahead from the international market.

The New Chairman of EDB will be blessed by the business community, EDB staff and the entire nation with strength and courage to take all necessary measures to stimulate the performance of skills of the EDB as it counts a cardinal role of his responsibility with an innovative plan to increase the volume of exports in a bid to strengthen the economy under the massive development structure launched by the Government under the ‘Mahinda Chinthana’.

(The writer is the former Head of Corporate Affairs and Communications of the Sri Lanka Export Development Board. He can be reached on [email protected].)