Is Sri Lanka turning around?

President Anura Kumara Dissanayake poses for a photograph with a visitor at the FACETS 2025 gem and jewellery exhibition held in Colombo in January – File photo  

With the appointment of the new head of state and the Government that followed last year, Sri Lanka has unleashed a new attitude to the world – Prosperous country with smiling faces. My mind went to the words of nation brand building expert Simon Anholt, who said: “If a country doesn’t like its image – and most countries don’t – then the only way to change that image is through the things the country does, not by the things it says.” It was a very powerful statement that clearly tells the policy makers of Sri Lanka (that includes the private sector) that the time has come for action and not just words.

 Sri Lanka – 100 days plus 

 When we look back at the last 100 days plus the performance has been mixed. Whilst the governance is very strong and commendable, the impact of solving people›s issues does not convey that same vibe. The red rice issue continues daily in the media with the farmers threatening the next Aragalaya, the passport challenge is yet alive. The port congestion issue led to a solution that instigated the union to go to court. The power blackout linked to a monkey brought out the deeper issue of leadership competency that we saw a very high negative share of voice in the media. 

If one draws to a basic theory of psychology, there is a term called ‘cognitive dissonance’. This was developed by a scientist called Leon Festinger. This can be explained as the expectation from a brand that is emanated from the stimuli directed to the five senses of a person and the actual delivery being low leading to a discontentment. This shortfall in the actual experience versus the expectation created is what we call ‘cognitive dissonance’ meaning the dissatisfaction that is created in a person’s mind. This is exactly what has happened in Sri Lanka. 

 NPP manifesto 

If one does the deep dive on the ‘Election Manifesto’ and the delivery in the 100 days plus is the core issue what the experts are highlighting for the cognitive dissonance in society. Whilst we must accept that Sri Lanka is coming out of a deep financial and structural breakdown that has happened due to the poor performance of successive Governments, the people’s two-thirds mandate was to correct the system and bring about the new culture of ‘governance’. If we analyse the media that breaks out daily, the attack point is the NPP manifesto attributes and the deviation on the delivery. 

Whilst we must accept that two decades of bad governance cannot be corrected within one hundred days of work, the issue highlighted in the media is that flaws in the ‘identification of the problem’ and how the solution that has been implemented at the ground is there is a gap. Some say it’s the low experience curve of the political leadership whilst another sector voices that the low co-operation of the public sector is the cause for the issue at hand. Be that as it may, the naked truth is that people’s agitation can be seen across the country. 

 Good news 

 Whilst highlighting the issues in the market place the good news is that the overall people’s income over the ‘spending’ has increased to 44% as over the data released by Pepper Cube Consulting. A point to note is that this indicator was at 9% last year in July. By September, 2024 it had increased to 30% and by end December the indicator moving to 44% is an excellent point that needs very high publicity. However, the latest data as at end January, 2025 is that the ‘Tanking-In’ of the performance trend has begun to hit Sri Lanka. This must be arrested and corrected if we are to maintain the strong ‘Consumer Confidence’ and ‘Business Confidence’ index. If this is not addressed the Government will be faced with a severe challenge at the Local Government elections that is scheduled for April, 2025.   

The amazing tourism turnaround witnessed with the best performing ‘January, 2025’ ever, and the booming stock exchange must be highlighted for the continuing policy stipulations followed. Whilst we can be happy with the above two sectoral performance the SME sector is bleeding and so is the construction industry. Once again the NPP Government will have to bring to the table a solution that a typical average household can feel. If not, it means that the delivery of the NPP manifesto is not happening at the ground end. This is serious and must be addressed.

 Clean Sri Lanka 

 This is a very good idea to my mind. It captured the ‘soul’ of an average Sri Lankan. It is a real change that must stem from an ‘attitude change’ that can lead to a new political culture in Sri Lanka. Even though the project got off to a bumpy start with the ‘Three Wheel Initiative’ and Sri Lanka Police hitting a loggerhead that created a severe wave of negative media, I feel it is our duty to make this project work for Sri Lanka. I would strongly recommend a ‘Clean Sri Lanka – Operating model’ be developed and then a task force team be trained for the ground implementation together with the public and private sector. Let me share a global case in point of a country that successfully implemented a similar campaign – Estonia.

 Estonia 

 Estonia is a democratic parliamentary republic in Northern Europe and the capital is Tallinn. The country has a population of 1.3 million people and was the birthplace of Skype. The country has almost 50% of the landmass covered with forest and 22% is under agriculture which is unique in Europe. 

 Why Estonia’s global push?

 Post-war Estonia knew that unless it latched onto the success of Europe it would once again go back to conflict. Sri Lanka is in a similar situation today, as unless we link the country to the success model of India and the rest of the world, we will not be able to generate a revenue model to payback the 35 billion debt. 

The senior advisors to the government of Estonia advocated to the country leadership that Estonia must do a global push on the following logic:  

Differentiating and promoting Estonia in relation to other nations will be the only way to drive the key growth sectors of tourism and exports. This will be the pivot of making Estonia a strong nation brand.

A strong nation brand can create synergy between national assets and bolster a country’s global impact, helping to promote trade, investment and tourism. In letter words will make the Estonia brand relevant to the global consumer.

Agree how to strengthen the reputation as nations are realising that their reputations, the image of them with the rest of the world are vital to their growth and development. The label, or ‘brand’ that the rest of the world attaches to them, can be either a valuable asset or a harmful liability to their economy, industry and relations with other countries.

The country must address the longstanding undesirable stereotype that they have been under, deterring other nations from seeing their positive qualities and from interacting with them. This national stereotype happens due to media, films, books, people, products, historical events or other well-known things typically associated with the country.  

We can see how these four points highlighted by the advisors to the Estonian Government hold true for Sri Lanka too, today. Let us further understand the dynamics of this country Estonia as today it is the only country that has a flat tax structure and the highest number of startups globally. 

 What Estonia did 

In the period from 2001-2008 a campaign was launched by Estonia called ‘Positively Transforming’ to tell the world that Estonia was a country undergoing a transition in all spheres of its life and thus re-entering the world and European community, from which it was isolated for several years. The key objectives of this campaign were to increase the number of tourists, foreign investment and create acceptance of Estonian export products in the world. This is very similar to the challenge that Sri Lanka is up against in 2025.

The first step for Estonia was to gather opinions and ideas through interviews with residents and foreigners on what Estonia’s greatest strengths and best qualities were. From this information, it was decided what perspective the brand Estonia must communicate to the rest of the world. The core qualities it came up with were Estonia’s rapid change and growth, rich history, vast, pristine natural landscape and the hopeful, positive attitude of its residents. 

In order to manage the branding project in a more holistic and strategic manner, Estonian authorities created a new organisation called Enterprise Estonia. The creation of Enterprise Estonia helped to coordinate and oversee all nation branding-related activities by a single point. Estonia utilised art and aesthetics in the crafting of a visual symbol of their new brand. ‘Welcome to Estonia’ was the phrase chosen for Estonia’s campaign logo. With a strategic design and typeface, this logo has become widespread throughout the country, accepted by Estonia’s national airline, businesses, tourism industry and shipping docks. 

The branding imagery and narratives were transmitted through an array of media, photographic style, colour palette and graphics and promoted through various communication channels including short video documentaries, outdoor display campaigns and press events. But a key point to remember was that every behaviour communicated to the world through these political activities was on the theme ‘Positively Transforming’. Estonia lived up to the point emphasised by nation brand building experts like Simon Alholt about changing a country’s image through the things it does and not by the things it says.   

 Estonia: Positively surprising 

 In 2008 Enterprise Estonia redeveloped its Estonian marketing campaign by breathing new life into the seven-year-old ‘Positively Transforming’ concept. The main objective of the new marketing concept, ‘Positively Surprising’ was to position Estonia as an excellent place to visit (tourism), an excellent place for business (investment, export) and an excellent place for studying, working and living. 

The primary target audience of the campaign consisted of four main categories:

•  Tourism – People who come to Estonia to experience something new and, if positively surprised or delighted, will spread the news to many others.
• Business – These are the people, mainly mediators, entrepreneurs, investors or importers who directly and indirectly help create jobs thereby increasing the country’s wealth.
• Living environment – This consists of people who may come to Estonia for an extended period of time. They are also like tourists but stay longer, learn and partake in the life, culture and environment of the country more than a tourist. These people are the best option to promote Estonia when they return home.

nInternal citizens – They are part of the heritage, history, culture, progress and achievement of the country. They are the best people to communicate the values, heritage and history of the country to other nations.

To reach the above four categories, the Brand Estonia campaign used two main approaches: External communication and internal communication.   

 External communication strategy 

 Brand Mark: Welcome to Estonia. The external communication strategy is divided into three sub-strategies based on the main interest for coming to Estonia: Tourism: ‘An old country in a shiny package’, under this Estonia promotes four types of holiday packages such as City Holiday, Cultural Holiday, Wellness Holiday or Nature Holiday. 

Business: “It is easy to do complex business transactions.” 

Living Environment: ‘An Exciting Outlook on Ordinary Life’ under that the different options available are for living, learning and working. 

The Internal communication strategy I Love Estonia is the other side of the ‘Welcome to Estonia’ medal. While Welcome to Estonia is an invitation directed to foreign countries, I Love Estonia encouraged its own citizens in creating this new brand. The rationale behind the campaign is to reinforce Estonians’ pride in their country, foster domestic tourism and strengthen the link between the people as well as between the people and the country. The manifestations and demonstrations of Estonia’s nation branding are very diverse and numerous. They include dozens of brochures, presentations and videos, several websites with immense amounts of information and more.   

 The results

 Brand Estonia increased in value by 24.6% in the corresponding year, outperforming every other nation brand in the European Union. In fact by 2021 Estonia became the fastest growing nation brand globally. The country boasts 99% government services online which is unique to the world. The total exports crossed $ 22 billion in 2024 whilst tourism recorded 4 million visitors which is similar to Sri Lanka. The key success factor was the world class digital infrastructure which is similar to the strategy adopted in Sri Lanka. 

 Way forward for Sri Lanka:

1.We need to clearly chalk out how we want the world to perceive us. A prosperous country and smiling faces are a good base. We need to bring in the propositions ‘Ethically manufactured apparel and cleanest tea propositions’ that we already have a positive image globally into our story. 

 2.Identify the key target markets globally and internally just like Estonia did. This must be done for exports – US and Europe whilst for Remittances is Middle East and Tourism will include India and China.

3.Let us find out what the world currently thinks of us as a brand. Let’s be data driven.

Estonia conducted wide stakeholder consultations. 

4.Based on Sri Lanka’s desired image, a clear policy statement must be developed with all missions overseas understanding the logic. 

5.We need to engage all stakeholders with this policy – General public, Government and Opposition. I must highlight the public sector as there is no point in the Ministers and MPs being clean if the public sector does not live these values. 

6.We need to walk the talk in making the desired image come to life. Especially given the current Government’s challenge of implementation at the ground end. Let’s accept reality.

7.Monitor global perceptions scientifically and not just by the statements of the diaspora, which can be coloured sometimes. Sri Lanka is unique as we have a larger diaspora and working professionals over three million voices. To be honest this is a tough challenge very different to Brand Estonia.

8.Track the global media, especially the viral and below-the-line media. As we speak now we can see the negative sentiments to the current situation at hand – rice issue, port congestion, power debacle and the passport challenge, etc. 

 Next steps 

 A point to note is that at the end of the day the brand custodians when it comes to a nation brand are the people. It is only the people of the country that can take it forward. The current modality of working by the Government is commendable though it is a tough journey due to the social fabric which has been damaged by successive Governments.

 

(The author is the Vice Chairman, World Rural Tourism Council for Asia Pacific, and alumni of Harvard University. The thoughts are strictly the author’s personal views.)