Features
Upali Wijewardene – an enigma and a legend
by Ajith Samaranayake
Between Sri Lanka’s 35th independence anniversary and his birthday Upali Wijewardene boarded his executive Lear Jet at Kuala Lumpur and in a single fateful flash became solidified into an enigma and a legend. The flamboyant tycoon who had left with five others never arrived in Colombo. Somewhere over the Straits of Malacca the plane disappeared with not a clue or a trace.
The drama held the nation in its grip for months. Newspapers reported little else except the mystery of the disappearance. Speculation spread like a bush fire and as the days passed with no news the most fantastic cloak and dagger theories were spun. People gathered by the roadside to listen to the radio news bulletins and strangers become friends as they speculated about the fate of a man who was one of Sri Lanka’s most beloved sons.
Destined
For Philip Upali Wijewardene it was a strangely fitting apotheosis. It was as if his whole colourful career was destined for this final peak, this sudden and dramatic exit just as he was in the very centre of the public eye, a glorious accession to the heights of myth and legend.
For Upali’s life was of the kind which dreams are made of. Though born to one of the most distinguished families in Colombo and into a charmed circle which constituted Sri Lanka’s ruling elite, Upali had carved out a career in an area totally out of synch with that class. He did not take to law or medicine or pursue an academic career as the more favoured sons of this affluent, anglicised and genteel elite were wont to do. Neither did he take to politics.
On the contrary with nothing much except the most rudimentary capital and confidence in his own abilities he began a confectionery industry and business in a part of his ancestral home where such brushes with crude commerce had never before taken place. Down the years this fledgling business he was able to build and expand into a mighty conglomerate, Sri Lanka’s only multinational, until he acquired a worldwide reputation as Sri Lanka’s leading entrepreneur, an enterprising and shrewd businessman who could hold his own with the best of them in New York, London or Bonn.
But by February 13, that fateful day which again confirmed the hold of superstition, Upali’s mind was not preoccupied with his businesses alone. For about two years politics had replaced business as his central passion. The man who had conquered the commanding heights of commerce now wanted to conquer the commanding heights of politics. And like everything else he did, he wanted to do it soon.
In 1981 he had founded The Island and the Divaina which had immediately become the eye of the political storm. Their vigorous reporting and comments which did not spare even some of the most powerful politicians of the ruling UNP came as a stirring antidote to the flabby, tame-cat Lake House press which was then dominating journalism.
Readers lapped up the new offerings avidly. Upali Wijewardene’s name was bandied about freely in Parliament. He made no secret of the fact that he wanted to enter Parliament and become finance minister which raised the hackles of the Finance Minister, the fiercely combative Mr. Ronnie de Mel. It became quite commonplace for the bespectacled and owlish Minister to hurl fearsome thunderbolts at the absent Upali in Parliament while we parliamentary reporters of The Island in the absence of our owner became surrogates for the ministerial fury and the embarrassed focus of the eyes of our colleagues in the crowded press gallery of the old Parliament by the sea.
Following year
The following year was to be one of the most crucial in Sri Lanka’s politics. President Jayewardene, Upali’s cousin and mentor, called an early Presidential Election, and in the absence of his normal rival Mrs. Sirima Bandaranaike, incapacitated by her loss of civic rights, easily beat former Minister Hector Kobbekoduwa fielded by an SLFP in tatters.
Then claiming that there was a Naxalite conspiracy to assassinate him if he had lost and claiming further that if General Elections were held on schedule a sizeable number of these horrendous Naxalites would enter Parliament he held a Referendum which the UNP won amidst widespread claims of thuggery, ballot-rigging, etc.
Anyway Upali was loyally by Jayewardene’s side during both campaigns, campaigning vigorously for the UNP at Kamburupitiya, his mother’s ancestral village, for which he had done much through his Ruhunu Udanaya programme for improving the conditions of villages in the South. The south he considered his heartland and it was from the South that he sought to enter Parliament for which there were vacancies even as he boarded his Lear Jet that day in the Malaysian capital.
Elections
For what had happened was that Jayewardene had asked for and received the resignations of 17 members of Parliament who had lost their electorates at the Referendum. Parliament had just been convened for the new session of the Second Jayewardene Presidency and the guns had boomed and the Jayamangala Gathas had been chanted. As that irrepressible Communist MP, the much lamented late Sarath Muttettuwegama quipped, “There was a 21-gun salute only the other day. And now 17 of you are gone.” Among the vacancies were Kamburupitiya and Devinuwara either of which Upali was planning to contest.
This was the backdrop to Upali’s destiny which during the next few weeks would hold the nation in its grip and virtually bring the country to a standstill. Among those on board with Upali in the plane which had left Malaysia’s Subang Airport at 8.41 p.m. on February 13 were Mr. Ananda Pelimuhandiram, the whiz kid Financial Director of the Upali Group and one of his most trusted lieutenants, a Malaysian lawyer Mr. S. M. Ratnam and Steward Mr. A. Senanayake. The jet was piloted by Capt. Noel Anandappa with Mr. Sidney de Zoysa as co-pilot.
They were to have reached Colombo by 9.45 p.m. that night but they did not come. Neither did they come the next day. By the morning of Monday February 14 Colombo was agog with the news. Soon it spread everywhere and the people paused in awe and wonderment as the enormity of the event sank into the public consciousness. Upali Wijewardene had mysteriously vanished with his three companions and two navigators leaving not a clue behind somewhere in that vast and empty night sky over Malaysia.
On Tuesday February 15 The Island, ‘Upali’s beloved flagship, broke the news soberly. Over a banner headline “Plane carrying Upali Wijewardene feared lost”. it told its readers that the jet had lost radio contact with the airport just 15 minutes after take off. The last message had said that the aircraft was at an altitude of 27,000 feet. Indonesia and Malaysia had launched a joint air and sea search operation but had failed to find any debris of an aircraft.
At The Island that Monday it was like something out of a novel by Kafka. We were in a daze. Was it possible that six people on board an aircraft in this miraculous age of technology could disappear without a trace? People huddled about the corridors talking, absorbing the news only slowly while the telephones rang incessantly as the other newspapers were getting in touch with us for the latest. But we could do little to shed light on the mystery. The most intensive search by several governments could not yield a single clue. These headlines from the papers which followed convey the flavour of those bizarre days.
February 16 —Air, sea search for Upali Wijewardene continues. Aussie plane may have seen missing jet
February 17— Three planes with sophisticated equipment comb the ocean. No results yet from seven-notion search
A flare and a weak signal but search proves negative. Search for missing plane in Andaman Island.
February 18 – Search for missing jet narrows to coastal area round Sumatra. Lear Jet reps suspect sabotage.
Wreckage
On the same day something happened which could well have been the tragic denouement of the whole drama but which was aborted at the last moment. On the afternoon of that Friday a Reuter report was received that the wreckage of the private jet and several bodies had been found off the Indonesian island of Sumatra.
I was in Fort at the time having taken a brief respite from the bleak house at Bloemendhal Road. With me at one of Fort’s many hospitable hostelries where we were drinking more than usual was Joe Segera, the Daymon Runyonesque Lake House story teller and chronicler of Canal Row and Chandra S. Perera, the always nattily-dressed NBC reporter and man about town.
Slowly the story spread through Canal Row, Hospital Street and Baillie Street and people reacted with shock and grief. More pints were drunk and our senses numbed somewhat by what we had taken Chandra who had known Upali in London and had common friends with him and I repaired to Bloemendhal Road.
There we were told by Editor Vijitha Yapa who had worked frenziedly during those days to bring out the paper in the midst of the tension that Reuter had denied the story within the hour. The next day The Island reported that it had been besieged with telephone calls following the story breaking. Reuters, Hong Kong had been contacted and The Island told ‘The story will be held back’, it reported.
And so the days passed. More headlines.
February 19 — Divers too join search near Sumatra. Another frustrating day of search
February 21 — Top Sri Lanka cops arrive in KL for investigation
Sabotage not ruled out
February 22 — Wheel found by fishermen did come from Lear Jet. Oil slick found near Kumana not from Lear Jet. February 23 —Minesweepers deployed in Indonesia today to find Jet Identification of Lear Jet wheel narrows search area. February 24 — If Lear Jet wheel was spare explosion may have occurred
February 25 —Fishermen cleared: Minesweeper move into find jet. There was no black box on missing Lear Jet. February 26 — PM answers questions on Upali
Unsolved
And so that unusually short month petered out sadly with the riddle unsolved. On the last day of February The Island headline was ‘Lalith thinks sabotage is likely cause of crash’. Under the by line of Lasantha Wickremetunge it said that the then Minister of Trade and Shipping Lalith Athulathmudali who had returned from Indonesia on February 26 as President Jayewardene’s special envoy had said that there were three possibilities for the disappearance of which the most likely was sabotage. Of the other possibilities, pilot error and a defect in the aircraft were most unlikely.
Mr. Athulathmudali also stressed that his investigations had shown that Mr. Wijewardene had no commercial enemies. In a box in the same story the paper reported ‘Temporary halt to search’ saying that since the area searched by the minesweeper had yielded no clues the search; was being abandoned and would resume if fresh evidence is uncovered. Only a single wheel — the right outbourne wheel — of the whole aircraft was found.
And so ended a drama which had electrified the country that cruel month of February and still continues to bemuse the people. What happened to Upali? is still the most popular question asked by friends and acquaintances from anybody connected with the Upali Group. Upali fascinated the people in life and now that he is no longer to be found, lost somewhere in the vast ethereal emptiness, he has become a legend and a cult which continues to enthral the people.
What would have happened if he had arrived in Colombo that February night with politics entering a fresh phase and plunged into what would have undoubtedly been a stormy political career will remain one of the most fascinating “Ifs”, of our contemporary political history.
Enigmatic fate
But what is clear is that the enigmatic fate of the man who built a commercial empire from nothing and captured a nation’s heart will always be looked upon with wonderment by them. Whether Upali could have stormed the commanding heights of politics by using the methods of advertising and self-promotion which he so successfully used in his business enterprises we will never know. Yet, like Icarus who flew but went too close to the sun so that his wings melted, the strange and fascinating destiny of Upali Wijewardene, Sri Lanka’s first tycoon who also chose the sun as his symbol, will always be a glorious legend of our times.
Newspaper
Looking back across ten more eventful years several memories crowd the mind. The memory which stands out most prominently is that of the collective effort to bring out the paper in the midst of the most terrible tension which could have pervaded any newspaper office. Editor Vijitha Yapa who was a loyal friend of Upali had to battle his feelings while he held the fort in the news room keeping in constant touch with the latest developments and answering the questions of local and foreign journalists.
For him and Deputy Editor and News Editor Gamini Weerakoon it was a trial of endurance which they magnificently stood up to. Looking at the paper to which thousands turned during that fateful month for news of its proprietor there is no sign of the almost unbearable tension with which we were working.
Upali Mahattaya
Several days on end we did not go home and the bleak reaches of the night were spent on the bare office tables with the late K. C. Kulasinghe as my companion. Or some nights would be spent in the grimy digs of D. B. S. Jeyaraj located quite close to the Premil Sports Club which was often the hub of our social life where the owner, the late Rajendra Mudalali, would approach us sombrely, always dressed in spotless white sarong and shirt and inquire ‘Any news of Upali Mahattaya?’ And in the morning the sun would rise over the splendid dome of St. Lucia’s Cathedral and we would search the vast sky for an answer.
(This article first appeared in a supplement to mark the 10th anniversary of the disappearance of Upali Wijewardene and party on Feb 13, 1993)
Features
Sri Lanka’s rice conundrum: Time to stop managing crises and start fixing the system
Prof. Ranjith Senaratne,
Emeritus Professor in Crop Science and former Vice-Chancellor,
University of Ruhuna and General President of the Sri Lanka Association for the Advancement of Science (2023) and
Prof. Prasad Jayaweera,
Dean, Faculty of Computing, University of Sri Jayawardenapura
Rice is not merely another crop in Sri Lanka. It is our staple food, an integral part of our history and culture, and a foundation of the civilisation that flourished around our ancient hydraulic systems. Revered as Buddha Bhogaya, the Buddha’s crop, rice has sustained our people for more than two millennia. Yet, remarkably, a country with such a profound relationship with rice continues to lurch from one rice crisis to another.
At one time, we have a surplus. At another, we face shortages. Prices rise sharply, consumers complain, farmers struggle to obtain remunerative prices, millers and traders become the focus of public attention, imports are hurriedly arranged, and governments announce yet another set of measures to contain the crisis. Then, after the immediate problem subsides, the matter recedes from the national agenda, until the next crisis arrives.
Why does this keep happening despite decades of agricultural research, policy interventions, expert committees and public debate?
Perhaps because we have been asking the wrong question. The fundamental problem is not simply how to produce more rice. Nor is it merely a question of prices, imports, fertiliser, farmers, millers or markets. The rice conundrum is a complex national systems problem.
We cannot solve a system by fixing its parts in isolation
Sri Lanka’s rice sector is an intricate web of interconnected systems involving agriculture, land, water, climate, technology, finance, energy, transport, markets, trade, governance, institutions and consumer behaviour. A decision made in one part of this system can have consequences, sometimes unintended, in another.
A change in fertiliser policy, for example, can affect productivity and production costs, which in turn influence farmer profitability, market prices and the need for imports. Irrigation decisions affect not only production, but also water availability, energy use and environmental sustainability. Guaranteed prices influence farmers’ cropping decisions, while import policies can simultaneously protect consumers and weaken incentives for domestic production. Likewise, market concentration can affect both the price received by farmers and the price paid by consumers. This is precisely why isolated interventions so often produce disappointing results. We keep treating symptoms while leaving the underlying system largely untouched.
For decades, we have generated valuable scientific knowledge on individual aspects of rice production and marketing. But knowledge generated within disciplinary and institutional silos does not automatically translate into solutions to complex real-world problems. What is needed now is a fundamentally different way of thinking.
From a “rice crop” to a “rice system”
The first step is to stop looking at rice simply as something that is grown in a paddy field.
The rice system begins with land, water, seed, inputs, technology and finance. It extends through cultivation, harvesting, drying, milling, storage, transport, wholesale and retail marketing, and finally to the consumer’s table. At every stage, there are different interests, incentives, constraints and actors: farmers, farmer organisations, input suppliers, machinery operators, millers, traders, wholesalers, retailers, financial institutions, government agencies, researchers and consumers.
And hovering over the entire system are climate change, changing consumer preferences, technological transformation and national economic conditions. A weakness anywhere in this chain can compromise the performance of the whole system.
Consider post-harvest losses. If significant quantities of rice are lost because of inadequate drying, storage or processing facilities, increasing production alone cannot solve the problem. Similarly, if farmers produce efficiently but face weak markets and poor bargaining power, productivity gains may not translate into improved livelihoods.
The question, therefore, should not be “How much rice can we produce?” but “How can we make the entire rice system work better?”
That requires us to see the connections.
The missing ingredient: reliable, real-time information
There is another fundamental weakness that deserves urgent attention: we still lack a comprehensive, integrated, interoperable and reliable national information system for rice. Information is scattered among different institutions, often collected using different methodologies and not necessarily available when decisions need to be made.
How much rice will actually be produced? How much is in storage? What is the likely demand? Where are the emerging production shortfalls? What are the stocks held by different actors? How are prices moving along the value chain? What are the likely consequences of climate conditions? Without timely and reliable answers to such questions, policymakers are forced to make critical decisions with incomplete information. This is not merely an administrative inconvenience. It is a national food-security vulnerability.
Sri Lanka should therefore seriously consider establishing a National Rice Intelligence and Decision Support System (NRIDSS), an integrated digital platform that brings together relevant real-time information from agriculture, meteorology, irrigation, markets, trade, statistics and other institutions. Such a system could support production forecasting, market monitoring, import decisions, early warning and evidence-based policy formulation. In an increasingly uncertain climate and volatile global economy, this should no longer be regarded as a luxury. It is becoming an essential component of national food-system governance.
The deeper problems cannot be ignored
A systems approach would also force us to confront some uncomfortable structural realities. Why does productivity remain relatively low despite decades of research? Why are so many holdings too small to achieve economies of scale? Why are modern technologies and precision agriculture not being adopted more rapidly? Why do farmers often have limited bargaining power? Why do substantial losses occur after harvesting? Why can market power become concentrated in a relatively small number of actors? Why are guaranteed prices sometimes announced too late to influence farmers’ production decisions? Why are policy interventions so often reactive rather than proactive? And how will droughts, floods, temperature extremes, changing rainfall patterns and emerging pests affect the stability of rice production in the years ahead? These are not separate questions. They are parts of the same system.
From crisis management to systems governance
Sri Lanka does not need another isolated discussion about rice. What is needed is a national policy dialogue and action forum that brings all relevant actors together, not merely to exchange speeches, but to develop a shared understanding of the system and agree on what needs to be done. Such collaboration must go beyond consultation or the exchange of views. The different parties need to work together from problem definition through to implementation, bringing their diverse knowledge, perspectives, interests and practical experience into a common process.
Farmers bring contextual and experiential knowledge; industry actors understand market realities and operational constraints; scientists contribute evidence and analytical capabilities; policymakers bring institutional and regulatory perspectives; while technology and data specialists can provide new tools for understanding and managing the system. When these different perspectives are brought together systematically, they can reveal interdependencies, challenge assumptions, identify feasible interventions and generate solutions that are evidence-based, practically implementable and socially acceptable.
This is the essence of a transdisciplinary systems approach: not simply working across disciplines, but bringing together multiple stakeholders and multiple forms of knowledge to co-create solutions and share responsibility for outcomes. The process should therefore go beyond presentations and speeches. It should involve systems mapping, causal analysis, stakeholder dialogue, scenario planning and the participatory identification of the critical bottlenecks and leverage points in the rice system. Most importantly, it should distinguish between what is urgent and what is important, and between interventions that merely alleviate symptoms and those capable of changing the underlying behaviour of the system itself.
We need an implementation roadmap, not another report
There is, however, one important caveat. Sri Lanka has no shortage of reports, recommendations and policy documents. What we often lack is sustained implementation. Any national initiative on the rice conundrum must therefore end not with another set of broad recommendations but with a prioritised national action roadmap. It should identify short-, medium- and long-term actions, assign institutional responsibilities, establish timelines and define measurable indicators of progress. The ultimate objective should be to move Sri Lanka from reactive crisis management to proactive systems governance.
A national opportunity
The rice conundrum may, in fact, provide Sri Lanka with an opportunity that extends well beyond rice to deal with other important crops. If we can demonstrate that a complex national problem can be addressed by bringing together science, policy, stakeholder knowledge, real-time information and systems thinking, the approach could become a model for addressing other persistent challenges, from climate resilience and water security to energy, food systems and disaster risk.
The choice before us is therefore quite stark. We can continue responding to each rice crisis as it emerges, adjusting prices, arranging imports, appealing to millers, reassuring consumers and supporting farmers, only to repeat the cycle later. Or we can step back and ask a more fundamental question:
What is it about the way our rice system is structured and governed that continually produces these crises?
That is the question that needs to be answered. Sri Lanka has the scientific expertise, institutional capacity and stakeholder knowledge required to do so. What is needed now is the willingness to bring these fragmented sources of knowledge together and examine the rice sector as one interconnected system.
Our ancient civilisation understood the importance of interconnectedness: land, water, agriculture and society were organised as parts of a larger whole. Perhaps, in confronting the modern rice conundrum, we need to rediscover that systems wisdom, this time supported by modern science, technology, real-time data and transdisciplinary thinking. The time has come to stop merely managing the rice crisis. It is time to fix the system that keeps producing it.
It is against this backdrop that the Sri Lanka Association for the Advancement of Science (SLAAS) proposes to convene shortly a “National Policy Dialogue and Action Forum on the Rice Conundrum in Sri Lanka”, bringing together the key stakeholders across the rice system. The Forum is intended to provide a platform for moving beyond piecemeal and reactive interventions towards a coordinated, evidence-based and transdisciplinary systems approach, one capable of generating lasting and pragmatic solutions to what has become an “island-shaking national issue”.
Features
This curse of partisan politics in Sri Lanka
78 Years of Demagoguery, Not Democracy
by Brigadier Ranjan de Silva
rpcdesilva@gmail.com
On the 4th of February every year, we raise the lion flag and speak of democracy. We speak of 78 years of “self-rule.” But honesty demands we ask: what kind of rule have we actually had? It was not democracy. Democracy is government for the common good, constrained by law, informed by reason, and accountable to truth.
What Sri Lanka has had for 78 years is demagoguery — government by manipulation, by party, and by passion.
Defining the Curse:
The dictionary defines demagoguery as “political activity that seeks support by appealing to the desires and prejudices of ordinary people rather than by rational argument.” Its tools are simple: divide the people, promise the impossible, demonize the opponent, and govern for the next election, not the next generation. That is the political culture we inherited in 1948 and perfected since.
78 Years of Evidence:
The record is not ambiguous. Policy by Pendulum – 1948–2024. Instead of a national development plan, we got a partisan wrecking ball. 1956: The “Sinhala Only Act” was passed not after linguistic study, but as an election mobilization tool. 1970-77: The SLFP nationalized private enterprise and imposed import controls. 1977: The UNP reversed course with an open economy overnight. 2005-2014: Mega infrastructure was built on Chinese loans with no feasibility transparency. 2015-2019: Those same projects were called “white elephants” and stalled. 2020-2021: The organic fertilizer ban was announced as a populist “green” policy, reversed 6 months later after it collapsed agriculture and food prices. The Colombo Port City, Hambantota Port, and the Central Expressway all followed the same pattern: started, stopped, rebranded. The country pays twice. The party takes credit once. Economics as Election Candy. Demagoguery is expensive. 1960s: Subsidized rice to win rural votes, leading to the 1971 food crisis.
2005-2014:
Fuel subsidies and public sector hiring sprees that doubled the wage bill. 2019:
Unfunded tax cuts that removed Rs. 500 billion in annual revenue with no offset. By April 2022, external debt hit $51 Billion and we defaulted for the first time. The party that cut taxes was not in power to manage the IMF program. The party that inherited it was blamed for the austerity. This is the cycle. Institutions captured. A democracy needs referees. We turned them into party cadres. The 17th Amendment 2001 created independent commissions. The 18th Amendment 2010 abolished them. The 19th 2015 restored them. The 20th 2020 gutted them again. Police transfers, university vice-chancellors, and state bank chairmen have all been decided by party headquarters, not merit.
When the institution serves the party, the citizen gets leftovers.
Identity over Ideas: From 1956 to 1983 to 2009 to 2022, our elections have been won on fear, not spreadsheets. “They will erase your language.” “They will sell the country.” “Only we can protect Buddhism/the minorities/the nation.”
Rational debate on debt, productivity, or climate adaptation never wins a rally. Prejudice does. That is demagoguery by definition.
Party Interest subverted the National Interest. The core damage of 78 years of partisan politics is this: the nation became secondary to the party. Need power sector reform? Impossible, because our unions will strike. Need to cut 300,000 ghost employees? Impossible, because our voters will defect. Need a 20-year education and export plan? Impossible, because it won’t show results before the next election. So, we borrowed. We patched. We lied. The result: a railway system that still runs on 1950s engines, hospitals without paracetamol in 2022, and a brain drain of 300,000+ skilled workers since the crisis. The parties rotated. The country declined.
The Opposition’s Original Sin and here, all parties share guilt equally. In opposition, the job is not to govern. It is to destroy. The UNP in the 60s called the SLFP “communist.” The SLFP in the 70s called the UNP “imperialist.” The JVP called both “traitors.” The SJB, SLPP, and NPP today use the same script with new logos. Every tax is “anti-people.” Every reform is “a sell-out.” Every crisis is proof the other side is evil and must be removed at any cost. Then they win. And implement 80% of what they opposed. Because demagoguery has no principles, only positions. 78 years of unmerciful, bad-faith criticism has not produced accountability. It has produced cynicism. The public now believes all politicians are the same — because for 78 years, they have behaved the same.
Breaking the Curse:
Changing the party in power will not end this. We must change the incentives that reward demagoguery. Three reforms are non-negotiable: Bind future Parliaments to national policy. Pass 10-year frameworks for energy, education, and public debt with 2/3 majority protection. Infrastructure and fiscal rules should outlast one government, as they do in Chile and New Zealand. Depoliticize the state. Independent commissions for police, elections, public service, and bribery must have constitutional budgets and appointment panels that exclude MPs. No more 18th/20th Amendment style rollbacks. Demand better from voters We must stop rewarding the best slogan and start demanding the best spreadsheet. Town halls over rallies. Costings over promises. A 5-year plan over a 5-minute speech.
In 1948, we did not inherit democracy. We inherited an election. For 78 years we have used that election to choose our favourite demagogue. The prize has been debt, division, and decay. The curse of partisan politics will only end when citizens and leaders agree on one principle: Party second. Country first. Until then, February 4th will remain a ceremony, not a celebration.
Features
Developing markets for fruits, vegetables and flowers in the Gulf
Export diversification – Missing the wood for the trees – Part II
by Gomi Senadhira
Sri Lanka established its diplomatic presence in the Gulf region only in the early 1980s. First, a small embassy was opened in Abu Dhabi, covering the UAE. Then in 1982, embassies were opened in Jeddah and Kuwait. The embassy in Jeddah covered Saudi Arabia while Kuwait was responsible for Kuwait, Oman, Qatar and Bahrain. Commercial Diplomats were also assigned to these two embassies. A senior private sector executive, with experience in marketing, was posted to Jedda as the commercial counsellor. I was posted to Kuwait as a second secretary (Commercial). Our instructions were very clear. Focus not only on traditional exports. Product diversification was a priority.
Developing Markets for Agricultural Products
At that time, Minister Lalith Athulathmudali had just launched his Export Production Villages (EPV) programme. He believed that the EPVs working closely with the exporters would provide an ideal opportunity for rural households to directly benefit from the government’s new open trade policy. Agricultural products, particularly fruits and vegetables, were a key component of this approach and the ministry thought that the Gulf countries, with large Sri Lankan communities, would have a ready-made market for these items. Thus, from day one we were compelled to explore the market for nontraditional exports; fruits and vegetables (F&Vs) were on the top of our priority list.
From cane baskets to cardboard boxes
Fortunately, the market for the F&Vs products in the region was at a very early stage of development. That provided an opportunity for Sri Lankan exporters, who were also inexperienced, to work with the importers and grow together. For example, in Kuwait, one of our first customers for F&Vs was a small supermarket where the manager was a Sri Lankan. After the first shipment arrived, he invited me to inspect the shipment. I visited the supermarket and was shocked by what I saw. While produce from other countries was packed nicely in cardboard boxes, our packaging mirrored transport to Manning market, cane baskets! As a result, fresh produce had suffered significant damage. A long report, with photographs, to the trade ministry produced an immediate response. After all, this was a pet project of the Minister. Within weeks, shipments were packed in cardboard boxes. Immediately afterwards, an expert on packaging from the Commonwealth Secretariat was sent to Kuwait with an official from the EDB to study the problem.
By then, we had also managed to develop a friendship with the management of the Salmiya supermarket, a large upmarket supermarket patronised by wealthy Kuwaitis and expats. It was a cooperative and the chairman was a Kuwaiti public servant. I could only meet him after 6 PM when his large office functioned as a diwaniya, a cherished cultural space in Kuwaiti society. Guests moved in and out the room. I had to spend time with them sipping many cups of tea. Though that meant at least two hours on each visit, it helped greatly to develop a close relationship. The general manager was an efficient and friendly Palestinian. After many visits we had succeeded in getting an order for F&Vs. The day after the first shipment arrived, I got an urgent call from the GM to come and inspect it. Once again, I was in for a surprise. Inside the cold room, the consignments from other countries were stacked neatly on top of each other, while vegetable boxes from Sri Lanka had collapsed once placed on top of each other, crushing the produce within.
Fortunately, our packaging experts arrived in Kuwait soon after this incident. They spent two days in the Salmiya Supermarket, studying the packaging from other origins. We were also successful in assuring the GM our packaging would improve. After that, packaging improved and exports moved smoothly. With that, Sri Lanka emerged as a small but reliable supplier to the mainstream market, not just the ethnic segment of the market.
Export of Fresh Vegetables by Sea
Towards the end of my tour, a Sri Lankan businessman requested me to find a buyer for cabbages, which he was prepared to export in large quantities by sea. I introduced him to the largest fruit and vegetable importer in Kuwait. Their regular suppliers of similar vegetables were Jordan, Lebanon and Syria. Luckily, the company was keen to diversify the supply sources. A few weeks later, the first container load of cabbages from Sri Lanka arrived in Kuwait. Immediately after the arrival of the container, I visited the company. They were pleased with the quality and the price and were looking forward to importing more fruits and vegetables. Unfortunately, that turned out to be a one-off event. Later on, when I was back in Sri Lanka, the exporter informed me that he couldn’t continue with it due to the problems with the local supply chains.
Floriculture
During the period I was asked by the EDB to explore the market for floricultural products, more particularly for cut flowers. At that time Kuwait was a relatively large importer of cut flowers and live plants. The main suppliers were the Netherlands and Colombia. Importers were also reluctant to move out of the established supply chain, particularly due to “snob value” associated with the product from Europe. However, after some difficulties, one importer agreed to place a pre-paid trial order. After the arrival of that shipment, he was impressed by the quality of the product and the orders expanded rapidly. As a result, by the end of 1985 Kuwait had become a major buyer of Sri Lanka’s floricultural products.
From village to global markets
As a result of the proactive promotional work undertaken by the EDB and the embassies in the region, by 1985, Sri Lanka had managed to acquire a small but significant share of the F&V and floriculture markets in the GCC countries. We had also identified domestic supply chain issues that hindered exports. All that was done, long before Southeast Asian or African countries even entered into that market. In fact, my Southeast Asian colleagues used to contact me often to reserve “durian” for them at the “Sri Lankan supermarket”.
Most importantly, a substantially large share of produce from Sri Lanka in Kuwaiti supermarkets originated in the EPVs. Of course, that didn’t just happen. The ministry (or the minister) using the carrot and stick approach “encouraged” exporters to buy the produce directly from the newly established EPVs. (The writer can be reached at senadhiragomi@gmail.com)
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