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Thursday, 8 November 2012 00:55 - - {{hitsCtrl.values.hits}}
By Cheranka Mendis
Sri Lanka is looking at aggressive expansion development across all sectors and building on the entrepreneurial efforts of the people, in line with its plans to become a destination of choice.
Speaking at the inauguration of the annual Association of Accounting Technicians (AAT) Sri Lanka conference titled ‘The Entrepreneur’ last evening, Sri Lanka Ports Authority Chairman Dr. Priyath B. Wickrama yesterday noted that the Government had recognised the importance of entrepreneurs as catalysts for growth and had looked into various means of empowering them while focusing on extensive development to transform the country as a strategically-important economic and trading hub in the world.
In the backdrop of changing global trends, with Asia emerging as a production hub and China and India at the forefront, Sri Lanka has the opportunity to 
carve out a position as a leading distribution hub in the region.
“Regional economies are rapidly growing and intra-regional trading is growing, with greater demand for distribution and shipping services. For emerging economies, connectivity is important,” Dr. Wickrama said, delivering the keynote address.
In this respect, facilitating a reliable supply chain among the region and managing intra-regional logistics and distribution is a key role that Sri Lanka could play in connecting the regions given its proximity to the East-West shipping route with the Ports of Colombo and Hambantota and their capability to handle the world’s largest ships.
“These two ports, along with those in Trincomalee, Galle, and Oluvil, will provide adequate space and capacity to serve the needs of the liner shipping industry to operate as a leading distribution hub in the region.”
Hambantota: No white elephant
Observing that the Hambantota Port is no ‘white elephant’ as branded by some at the initial stages, Wickrama stated that 17 investors had expressed interest in investing in the Hambantota Free Zone.
“Seventeen entrepreneurs have already made commitments to invest in the Hambantota Free Zone with an approximate investment of US$ 2 billion.”
Yesterday, the Government signed the first agreement to establish a sugar refinery worth US$ 220 million, he said. He assured that other agreements would be be signed soon as well.
In addition, vehicle assembling factories, including Audi and bus assembling factories, will be established just outside the Hambantota Port. “These prove that the Hambantota Port is not just a white elephant as many claimed it was,” he noted. “No private sector will invest expecting losses, especially in the current global economic situation. They are looking for best opportunities with minimum risk, and, judging by the reaction, Sri Lanka has exactly that.”
Investment opportunities in the ports business
Similarly, the country is expecting investment by entrepreneurs in free zones in Trincomalee and the proposed Ports City as well.
“Entrepreneurs will have enormous opportunities to size up the chances arising from these infrastructure developments. Opportunities have also been given by the Government by calling requests of proposals.”
Some of these are in the marine and logistics centres – from service-related to bunker supplies, which the Government will commence early next year. Several more specialised services emerging in maritime sector are the operations of trucks, bunker vessels, inspections, laboratory services for products, etc.
Wickrama observed that ship-to-ship transfer of liquid products was a specialised operation which had been started by shipping entrepreneurs using Sri Lankan resources. “Oil rigs and platforms used in oil exploration have the opportunity of being serviced in Hambantota and Trincomalee Ports. Soon we will be in a position to offer all services to the world.”
Government plans
The Government is confident that FDI to the value of US$ 2 billion per annum will come in during the next few years. Improved performance in all key sectors of the economies has helped generate a higher level of employment, he said.
“The Government has extended support to industrialists through fiscal policy measures and enhancing value addition, export orientation, import substation, and SME development,” he added.
The focus of the Government is to create an environment that will enable the economy to move along a sustainable high-growth path. He expressed confidence that steps taken by Government to strengthen macroeconomic conditions along with effective structural changes would further improve the economy.
Domestic investor interest
Several domestic investors are looking to capitalise on the promising growth environment and improved infrastructure. “We have witnessed an upward trend in demand and pricing.”
The recent upswing in the service sector from finance, tourism, shipping, and IT industries, particularly in Colombo, has created a healthy demand for residential and commercial space, giving an opportunity to develop the real estate market, he said.
Development of premium condominium projects is most prominent in central business districts. “Skilled workforce with a low attrition rate, financial attractiveness due to low compensation cost, policy incentives for knowledge service sector, adequate telecommunication, power, and infrastructure, and strong protection of intellectual property rights have contributed to the increasing investor confidence.”
Entrepreneurship
Commenting on the theme of the conference ‘The Entrepreneur,’ Wickrama stated that entrepreneurs were vital in today’s society and timely in view of the macroeconomic conditions of the country.
“To me an entrepreneur is perceived as an innovator and developer who recognises and sizes up opportunities and converts those opportunities into workable and marketable ideas and adds value to time, assets, money or skills, and undertakes risks of the competitive market place to implement the ideas. He is a catalyst for economic development.
“An entrepreneur is uniquely optimistic and committed and works creatively to use resources or confer all once in a unique capacity all for the purpose of wealth. It is the most powerful economic force known to humankind.”
Protecting entrepreneurs
Meanwhile, Central Bank Governor Ajith Nivard Cabraal, who was the Chief Guest at the event, asserted that entrepreneurs must be protected by all sectors of society. Noting that entrepreneurs are part and parcel of a country’s economy, he stated that they must be looked upon with respect and admiration.
Often the term ‘mudalali’ has negative implications, especially in the case of those who do not fit perfectly into the easily-defined category of entrepreneurs and those generally considered as SMEs.
What the Government must do
“In the construction of the President’s manifesto a cornerstone of his economic structure proposal is the development of the entrepreneur,” Cabraal said.
Commenting on what the Government should do to protect and support entrepreneurs, he stated that to begin with, the Government should ensure that proper training is given to the people to develop. Private sector support is crucial, he said, adding that the Government must also look at the aspect of access to credit.
Creating opportunities is also vital: “In the next phase of development, the development beyond the US$ 4,000 per capita goal, there will have to be diversification of the economy. Opportunities will then be created and we must prepare them to make full use of them.”
There is also a need to recognise that “profit is not a dirty word,” Cabraal emphasised.
What the banks must do
Banks must develop a system which can respond speedily to entrepreneurs. Often when bank approvals are received, the project undertaken by an entrepreneur is no longer viable or in need of more finance to continue. Timely action and money in right quantities must be allocated for entrepreneurs. “Advice is also important,” he said. “Banks are quick to go for foreclosures. If you work in close partnership with the client, you would be able to come up with a win-win situation.”
What professional institutions and society must do
Auditing and accounting support is very important, the Governor noted. “I urge the professional institutions to give new exercise in marketing, planning, and counselling to these people.” From society, he requested that respect and support to be given to these individuals. “As a society we need to recognise that entrepreneurs should be supported by way of respect.” This, he said, would encourage growth in the area.
Meanwhile, AAT also launched its 25th anniversary logo and corporate sponsorship logos at the event. The member’s journal, ‘Insurge,’ was re-launched with a new look at the event.
The technical sessions of the conference will be held today, on the following themes:
n‘Believe in Yourself – Everyone is an Achiever,’ featuring Presenter Epic Lanka Group Managing Director Nayana Dehigama, Session Chairman PIM Senior Consultant Dr. Travis Perera, and panellists Hettigoda Group of Companies Group Director Vidyani Hettigoda and KIK Group of Companies Chairman Lalith Kahatapitya.
Pix by Upul Abayasekara
