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2016 whilst avoiding the middle income trap, sector wise as well the nation is highly ambitious. Such targets of key sectors for 2016 include IT/BPO aiming for foreign exchange earnings of US$ 1 billion, tourism aiming revenue of US$ 3 billion, and apparel aiming to become a US$ 5 billion industry.
Although the framework for continuous development has been well thought out, the availability of talents to service the nation across industries and sectors remains uncertain due to brain drain that took place during the conflict period.
With the aim of making Sri Lanka an attractive destination for highly skilled individuals and high calibre businesses, Work In Sri Lanka (WISL), a volunteer-led brain gain initiative of SL2College, recently hosted its inaugural conference under the theme ‘Asia’s Next Knowledge Hub’.
The conference, which featured Ministry of Defence and Urban Development Secretary Gotabaya Rajapaksa, Central Bank of Sri Lanka (CBSL) Governor Ajith Nivard Cabraal and Hemas Holdings CEO Husein Esufally as key speakers, attracted a large gathering of returnees, potential returnees, and those who are keen on living and finding work in Sri Lanka, which is acknowledged to have a promising future.
Sri Lanka’s readiness to become Asia’s next knowledge hub
Defence and Urban Development Secretary Rajapaksa before promoting the country for living and work, first assured the audience of peace in the island.
Noting that capitalising on the nation’s present opportunities to achieve the transformation it is undergoing would have been impossible even a decade ago due to the conflict, Rajapaksa praised the President for having a clear vision of ending the war and bringing peace and stability back to the country.
“This was one of the core promises of the ‘Mahinda Chinthana’ which outlined his vision for the first term of his Presidency. Less than five years into that first term, terrorism in Sri Lanka was defeated, and peace was won for our people.
While the ‘Mahinda Chinthana – Idiri Dekma’ outlines the President’s vision for his second term in office, focusing on strengthening the peace and fast-tracking economic development, the main thrust of the development strategy identified he said is the transformation of Sri Lanka into a dynamic global hub. The strategy makes full use of Sri Lanka’s strategic geographic position, its educated and productive workforce, and its hard won peace, stability and security.
“It envisions that Sri Lanka will become a naval, aviation, commercial, energy and knowledge hub. The Government has been laying the seeds of transformation since before the end of the war. Its investment in vital infrastructure such as the Hambantota Port, Mattala Airport, energy generation and transmission facilities, and high quality road and rail networks have created a strong base on which to build for the future. The task before all of us now is to make maximum use of this foundation to take Sri Lanka to the next level,” Rajapaksa expressed.
Touching on the quality of the nation’s talent pool, he pointed out that expertise of Lankan professionals is much sought after by firms in the apparels industry in other nations. Being home to the world’s first green garment factory and having a number of LEED Platinum and Gold certified production facilities in the country, Rajapaksa observed this is a strong indication of Sri Lanka’s potential to be a high tech, world-class competitor in large global industries. While in the IT industry the country has produced several innovative companies and engineers who have developed software used in many critical applications around the world, he appraised the overall quality and high level of innovation in Sri Lanka’s IT industry and noted is widely recognised and immense potential in the future.
Acknowledging that returnees require a social and physical environment that is of a high standard, Rajapaksa emphasised that the Government is highly keen on creating an environment conducive for knowledge workers and other professionals to live and work in Sri Lanka. Opining that the creation of such an environment is extremely important from the perspective of attracting Foreign Direct Investment (FDI), and for the further development of local industries and businesses, he said: “It is for these reasons that the Ministry of Defence and Urban Development together with the provincial and local authorities has undertaken a range of programs throughout the country to uplift the quality of the country’s metropolitan areas. The focus is on developing clean, green, people friendly cities and towns that will foster an efficient working environment and a relaxed living environment.”
Furthermore, Rajapaksa told the audience that international and local private investors alike have seized upon the many opportunities made available in the country and assured over the next decade the quality of Colombo’s real estate and its skyline will transform dramatically as world-class hotels, apartment complexes, office buildings and entertainment venues are being established.
“These developments and other programs of the Government will help transform Colombo into one of the leading commercial hubs in the South Asian region. It is in fact distinctly possible that Colombo will soon become South Asia’s World City. It will be the dynamic centrepiece of a country that is fast achieving its aspiration to be the ‘Wonder of Asia’,” he confidently said.
Opportunities in Sri Lanka
To guide potential returnees as to why they should come to Sri Lanka and to convince them that the nation is on track towards further development, CBSL Chief Cabraal shared with audience the vision of the country and how it intends reaching its goals.
During the formulation of the ‘Mahinda Chinthana’ in 2005, he said the country at that time was in a dismal mode. The vision for the future even then, he said, was about the President saying he would transform the country with massive infrastructure development such as constructing 20 flyovers. However, despite sharing such ambitions, Cabraal said the nation was in denial.
Noting that transformation signifies there is a consistent pipeline of investment coming into country, he said: “One of the most difficult aspects 
in economy management is to maintain the momentum. When I look at the number of children after school on the road waiting to go home, I think about how the country can find jobs for them once they leave school. Are there enough investments and projects taking place to ensure that they have jobs once they leave school and go to the outside world? We need to make sure they are not stranded and just dream of finding a job. That transformation has to take place and for that to take place there has to be new industries, services, systems coming into the country each year. This is not only important to support the present day but also the future. That is the challenge we have,” he asserted.
Justifying the 5 hub plus tourism concept, Cabraal noted it is to ensure there is consistent expansion of the economy beyond the traditional areas the country is used to. The reason for this he said was to avoid the middle income trap once the country gets there. “It is necessary for us to ensure that that the momentum is there not only in particular areas but on wide network.”
Having conducted a SWOT (strengths, weaknesses, opportunities, and threats) analysis, it was observed that tremendous opportunities were available in maritime, aviation, knowledge, information technology, heath services, education, and energy sectors, and required was only a tweak and momentum to move forward.
“In order to get the channels moving, we have to ensure that the macro fundamentals are safe and sound while making sure there is a steady pipeline of people who are ready and skilful. The stage is set for this. What we are saying and doing is opening platforms. The Government has made the initial investments but today you have the platform where you can go to the next level and reach out to the world,” he told forum.
Cabraal added that the country requires entrepreneurs who can design more activities to help connect the nation to the world.
“Sri Lanka is on a forward march and they intend in keeping our country safe and we intend in ensuing that the macro fundamental will be benign, and intend that the capacity to do business will improve in a day-to-day basis. That would be the guarantee you will have to work, play, and live in Sri Lanka,” expressed Cabraal.
Role of private sector in making SL Asia’s next knowledge hub
Highlighting the role of the private sector in making Sri Lanka Asia’s next knowledge hub, Hemas CEO Esufally presented to the audience the private sector vision for Sri Lanka which he put together, having attended various deliberations and consulting several Government authorities. To encourage the setting up of enterprises in the country, Esufally presented the BOI’s 10 reasons for investing in Sri Lanka; strong resilient economy, supportive Government policies, educated and adaptable workforce, social infrastructure, location and connectivity, access to key markets, fast developing infrastructure, vibrant business environment, investment protection and double taxation, and quality of life.
Promoting the nation for investments, he said: “Sri Lanka’s growth rate is one of the fastest in South Asia. In terms of per capita income, we are coming out from a basic standard of living and we will see an exponential change in the way if life here. Infrastructure has truly transformed the country, and this is the real game changer,” he said.
Sharing his personal experience, Esufally told audience that while he enjoyed life abroad, the quality of life was certainly difficult here when he returned during the war period. However, with the conflict coming to an end in 2009, he applauded the Government for the transformation.
“The speed at which things have happened is very heartening, and this is going to be a reason for my many have chosen and will choose Sri Lanka as a destination to live,” added Esufally.
To help the audience see what the nation would look like in 2020, Esufally took them through details of five sectors that seem to be promising in the future.
Five promising sectors
1. Healthcare: Starting with healthcare, an area where there is much involvement of the Government, Esufally said there is much potential and has enough room to grow. Medical tourism is noted to be a high revenue earner for countries such as Singapore and Malaysia; however Sri Lanka is currently serving only Maldives in this regard and could look at extending boundaries. Although in Sri Lanka private hospitals are concentrated in Colombo, Esufally expressed confidence in the country having such entities in other cities as well by 2020. “Locals will not have to go abroad for treatments anymore. Soon we will have all treatments of all types here.” With regard to pharmaceuticals, he noted that the Government is keen in having a certain amount of self-sufficiency. Currently most pharmaceuticals are imported from India although the country having the potential to manufacture locally. However, Esufally said the challenge in manufacturing locally is the lack of specialised knowledge.
2. Leisure: On the leisure industry, he said despite this being an asset to the country it could not be used to its full potential due to the conflict. While the industry is showing a steep progression in the recent past, he opined that its performance should be measured in the dollars brought into the country and not by mere number of tourists. A good number of international hotels are setting foot into the nation and this he said will raise the bar in terms of quality of service offered.
3. Apparel: Not only has this sector continued to be the highest revenue earner for the country but it also is an area where Sri Lanka has had success in the world. While it plans on reaching the US$ 5 billion mark by 2016, Esufally opined in addition to manufacturing it should also aim at capturing orders where value addition is required before exports. If it is successful in this he said by 2020 Sri Lanka would be able of having its own fabric and design capability, and be able to market itself as a total apparel solution.
4. Logistics: While a lot have been expressed on the strategic geographic location of Sri Lanka, Esufally noted this element could be used even more. With currently the freight traffic being mostly transit, he opined by 2020 the situation could be different since Sri Lanka does have the potential to be a logistic hub and is capable of storing goods for value addition.
5. Knowledge hub: After the UK, Sri Lanka produces the largest number of financial professionals. This knowledge, Esufally said, should be capitalised by offering high end outsourcing solutions to the world. To do so he opined there should be high quality education institutions in the country and noted perhaps by 2020 the nation would have many affiliations from leading universities established that would also have research capabilities.
Having pointed out the role the private sector could take up in making the nation the next knowledge hub, Esufally said: “My message is really don’t miss out. Sri Lanka’s future going forward is absolutely clear. We are in for a ride of our lives.”
Pix by Lasantha Kumara
