Retail industry poised to take off: SLRA Chairman

Chief Guest at the Sri Lanka Retailers Association first Annual General Meeting at Ramada Hotel, Law and Order and Southern Development Minister Sagala Ratanayaka with Guest of Honour Cargills (Ceylon) Plc Deputy Chairman and CEO Ranjit Page. SLRA Chairman Hussain Sadique (second from right), Vice Chairmen Sidath Kodikara (right) and Murali Prakash are also present - Pix by Indraratna Balasuriya

Sri Lanka Retailers Association Chairman Hussain Sadique last week declared that the country’s retail sector was poised to take off, with the industry body planning a host of initiatives. 

Addressing the first Annual General Meeting of the SLRA, Sadique said the retail industry’s optimism was due to a multitude of factors. One was that per capita GDP was on track to exceed the $ 4,000 mark. Another was the entry of new format malls which would have an impact on the brick and mortar retailing and shopping experience and shopping habits would change.

The Retail industry is very relevant in the context of the Government’s focused efforts to realise $ 7 billion earnings from tourism by 2020 - Law and Order and Southern Development Minister Sagala Ratnayaka

The addition of around 2.5 million square feet of new mall space in the next two years was also a factor for the retail industry’s take off. “Technology will continue to disrupt and enhance the retail experience, whilst a surge in automation, data analytics and ecommerce is one of the other factors,” said Sadique at the SLRA AGM at Ramada Colombo where Law and Order and Southern Development Minister Sagala Ratnayaka was the Chief Guest. 

SLRA was conceptualised in late 2015 and 2016 was dedicated to its formation. This year it undertook several key initiatives on capacity building, including the first Retail Forum, and launched the Retail Academy as well as conducted a bespoke four-day training session to empower retail outlet managers. 

In the past the industry has been silently contributing to the economy by creating value, jobs and paying taxes. In the future via SLRA we want to make the retail industry a prominent and important pillar of the economy. Our approach will be inclusive - Sri Lanka Retailers Association Chairman Hussain Sadique

Sadique said in 2018, the 2nd Retail Forum will be held to further the industry’s knowledge in Sri Lanka and the event will focus on wider participation. The SLRA will also conduct the 2018 edition of the Colombo International Shipping Festival, whose inaugural event kicked off in October this year. A unique Sri Lanka Retail Show is also planned for 2018. 

Sadique said the SLRA will continue to engage with the Government to advance the retail industry as well as play a key role in the Government’s plans for creating one million jobs by 2020. The other initiatives of SLRA include enhancing retail education and skills and expanding the membership base.   

SLRA is a guaranteed company focusing on the wellbeing of the retail industry and raising standards.

“We will be the voice of the retail industry and the consumer thereby achieves retail excellence,” declared its founder Chairman. 

If I look around and assess the retail industry, in the past we were constrained to some extent. However, today we have got the freedom to do what we have to do in a more honourable manner

Today the retailers are quite a strong force but that fact shouldn’t get into our heads and we should not get carried away but remain humble and work together further. The retail industry will be the largest tax collector for the Government and probably the largest employer of skilled labour. Under SLRA the retail industry can achieve more - Cargills (Ceylon) Plc Deputy Chairman and CEO Ranjit Page

“In the past the industry has been silently contributing to the economy by creating value, jobs and paying taxes. In the future via SLRA we want to make the retail industry a prominent and important pillar of the economy. Our approach will be inclusive,” Sadique added.

In the 2017 Budget, Rs. 50 million was allocated to conduct the Colombo International Shopping Festival and the SLRA chief urged the Government to consider granting more than Rs. 50 million for future festivals which would be an annual event. 

He also proposed the creation of a Duty Free Zone in the Western Province and tax benefits for the overseas marketing of Sri Lankan brands. SLRA also hopes the 2017 Budget-approved measure to give VAT refunds to foreigners when they depart the Bandaranaike International Airport will be implemented in 2018. Further development of human capital, skills and training under a Public-Private Partnership was also mooted.

Sagala commends SLRA vision and initiatives

Chief Guest at the AGM Law and Order and Southern Development Minister Sagala Ratanayaka commended SLRA’s vision of being the voice of the retail industry. He said the retail industry was very relevant in the context of the Government’s focused efforts to realise $ 7 billion in earnings from tourism by 2020. SLRA was also commended for showing leadership to stage the countrywide Colombo International Shopping Festival from 1 October-15 November. 

“It is a good start but much needs to be done to improve the festival, the most important being the marketing of this festival in our top five tourism source markets - China, India, the UK, Germany and France. The festival must encourage getting new visitors to Sri Lanka,” Ratnayaka said. 

The Minister said the SLRA’s stated strategy of enhancing professional excellence in retailing and providing a value-for-money experience will hold the industry in good stead, especially when some other destinations are losing due to the exploitation of the customer. Focusing on the common challenge for most sectors, the Minister also referred to the skilled workforce and said: “As a country and industry we need to work on addressing the challenge.”

“It is easier to sell to an old customer than a new one. As a country we need high-end customers and we need them to come back year after year. That is what Singapore does successfully. In that context it is important for the retail industry to synchronise efforts with the tourism sector,” he added.

Pointing to the SLRA’s tagline of ‘enhancing the quality of life’, the Minister said it was also the Government’s focus to make a better life for the people. 

“We want people to have more money in their hands. We want to be open for business as a country. We had to do a lot of work to set the stage,” he said. 

“There are things happening,” Minister Ratnayaka said and listed a host of key issues that the Government had resolved to date, including the lifting of the EU fishery ban, regaining the GSP Plus concession, the recommencement of the Port City project, resolution of Hambantota Port viability under a public-private partnership and continuity in the development of highways. In that context he said the private sector had to be ready as well. 

“There is no doubt that the Port City will be the best piece of real estate in South Asia – a state-of-the-art, well-planned modern city in which the Colombo Financial Centre will be based as well. It will result in continued investments over the next 10 years as the city continues to be developed, changing the skyline,” he said. 

He also revealed that the Board of Investment was being revamped and strengthened to be proactive rather than reactive and that a significant amount of work had been done during the past few months. According to him, year-to-date Foreign Direct Investments (FDIs) have grown by 88% and “it is likely that the full year figure will cross the $ 1 billion mark”.

He said the BOI had been set a target of $ 1.8 billion in FDI next year without taking into consideration Government-to-Government arrangements or the Chinese investment in the Hambantota Port. The FDI target for 2019 is over $ 2 billion.

Tourism too is being revamped as “tourism is a quick win if done right”. The Tourism Strategy 2020 is being worked on with a target of $ 7 billion in earnings.

“Above all, we have strengthened brand Sri Lanka by establishing freedom, democracy and good governance so that our international stakeholders have confidence in the country and ensure a level playing field,” Ratnayaka emphasised. 

Whilst multiple efforts are ongoing, the Minister said the Government was cognisant of the fact that the bedrock of any society was the security of its people and visitors. 

“Survey after survey shows a tourist will select a destination first on criteria of security and safety. We need to establish law and order solidly. I am dedicated to make Sri Lanka a safe and secure place to visit. There is no place in paradise for drugs lords and gangsters,” Ratnayaka stressed, adding that the Police was working systematically to eradicate this menace from society. 

“We will also focus on white collar and minor crimes. Like in the golden era, a woman must be able to walk in any part of the country any time wearing her jewellery. We will use the latest policing techniques and technology for this. We will be ready for cybercrimes and threats as well,” he said. 

“We need a police force that is highly motivated. We have increased their salaries and we are working on improving their living and working conditions. We will hire only the qualified and train them intensively. They will have equipment that is not second to other high-performance police forces in the world. We expect them to look after our people with commitment and be proud of the force,” said Ratnayaka.

Retail industry is key; SLRA can play an important role for the economy of the country 

Guest of Honour Cargills (Ceylon) Plc Deputy Chairman and CEO Ranjit Page declared that retail was his “bread and butter”. 

He said incidentally it was in October 1983 that he started the first Cargills supermarket and the company as well as the entire retail industry has transformed during the past 34 years. “Today the retailers are quite a strong force but that fact shouldn’t get into our heads and we should not get carried away but remain humble and work together further,” Page said. 

He said the retail industry was a key collector of revenue for the Government and secondly and more importantly, it has developed the skills of youth and employed a large number. “Under SLRA the retail industry can achieve more,” he added. 

He also endorsed Minister Sagala Ratnayake’s comment that the present time was opportune. 

“If I look around and assess the retail industry, in the past we were constrained to some extent. However, today we have got the freedom to do what we have to do in a more honourable manner,” Page opined.

Acknowledging that he was happy to be present at the first AGM of SLRA, Page however quipped: “But it took me 34 years to get here!” 

He emphasised that SLRA can play an important role for the economy of the country. “The retail industry will be the largest tax collector for the Government and probably the largest employer of skilled labour,” he added.

He noted that in a country of 22 million people, the retail industry can only grow faster if there were more customers and this was only possible through tourism. “If we transform the country and enhance tourism, the retail industry will be the first beneficiary. We need to grow that journey together,” said the Cargills Deputy Chairman.