Features
Science and Technology and national development
Science and Technology in human civilization and industrial revolution
by Emeritus Professor Ranjith Senaratne
Former Chairman, National Science Foundation
Homo erectus, which originated about two million years ago, discovered fire about one million years after their origin. However, it came into habitual use only about 400,000 years ago, which provided warmth, lighting and protection against wild animals and enabled the making of more advanced hunting tools and the preparation of healthy and nutritious food. The resulting improved nutrition promoted rapid brain development and Homo erectus gradually evolved into Homo sapiens around 200,000 to 300,000 years ago. Hence, fire was a critical and decisive technology which enabled human evolution from the Stone Age (around 2.6 million years to around 3300 BC) to the Bronze Age (around 3300 BC to 1200 BC) and then to the Iron Age (around 1200 BC to 550 BC).
Humans have gone through four ages of civilization, namely the Hunter and Gatherer Age, Agriculture Age, Industrial Age and the present Information Age or Knowledge Worker Age. Technological advances have contributed to those transformations and there has been a phenomenal increase of efficiency and productivity when transforming from one Age to another. A new set of skills and new knowledge were required as earlier ones became obsolete with the progression from one Age to another. Different countries, different sectors within a country, different industries within a sector and different enterprises within an industry, could be at different levels on the continuum, depending on the type of technology used. When we look at the industrial revolution (IR), it has progressed from the 1st IR in the 18th century to the 4th IR in the 21st century. This shows the rapidity of technological advances and pace of innovation. Each IR brought significant changes to society, including workforce transformations, economic growth, and societal restructuring
The 1st IR marked the transition from a handicraft economy to a manufacturing economy characterized by mechanized production through the utilization of energy sources, such as coal and steam-power, and the emergence of factories, such as weaving mills and ironworks for mass production. The 2nd IR occurred in the late 19th and early 20th century and was marked by the use of electricity and the invention of the assembly line, both of which resulted in a significant increase in mass production. Henry Ford, for example, successfully used the assembly line in producing his automobile assembly facility. In addition, gas and oil also became important sources of energy during this era. In the 3rd IR, the emergence of electronics and automation technologies significantly impacted manufacturing and information processing, thereby paving the way for the development of computers and transistors. In addition, nuclear power also became an important source of energy. The 4th IR is the integration of cyber-physical systems, the internet of things (IoT), artificial intelligence (AI), block chain, virtual reality and advanced robotics, blurring the lines between the physical, digital, and biological spheres. Now some are even talking about the Fifth Industrial Revolution which incorporates concepts such as “sustainability”, “human-centeredness”, and “concern for the environment”, thereby striking a right balance between robotization and humans and blending the power of smart, precise and accurate machinery with human creativity and ingenuity. However, some argue that it is a mere extension of the 4th IR.
However, we have to recognize that some of the problems we face today are due to unintended consequences of S&T. For example, the Green Revolution that was aimed at increasing food production in the world has unintentionally caused serious environmental issues and health hazards. Similarly, industrial developments in the 19th century have contributed to climate change which is now wreaking havoc in the world. Thus, when we apply science to address one problem, it can create a number of unintended consequences and complicated problems. This should be born in mind and sustainability science should be used when addressing real-world issues.
Technology and economic development: Lessons from other countries
According to the UNDP (1983), one quarter of humankind – some 1.1 billion people inhabiting two-fifths of the land area of the Earth controlled 80% of the world’s resources while 3.6 billion people inhabiting three-fifths of the globe controlled only 20% of the global resources. Therefore, Abdus Salam, founding President of The Third World Academy of Sciences, Trieste, Italy, in 1988, said that the globe is inhabited by two distinct types of economies, called developed and developing, which basically stemmed from their differing mastery and utilization of present-day science and technology
If we look at the export portfolio of Sri Lanka, garments (45%), tea (20%) and rubber (15%) collectively account for about 80% of the total exports of which the high-tech exports accounts for only about 1.5% as against 15% in India, 26% in Thailand, 36% in Korea, 43% in Vietnam and 56% in Singapore. Similarly, the digital economy of Sri Lanka contributes less than 5% to the national GDP as opposed to 13% in Thailand, 20% in India and over 20% in Malaysia. This shows the abysmally low level of adoption of technology in the manufacturing process in Sri Lanka, which is not hard to understand given the low level of funding for R&D; it is only around 0.1% of the GDP as against around 0.15% in Myanmar, 0.3% in Nepal, 0.8% in India, 1.2% in Thailand, 4% in Korea and 4.2% in Israel. Consequently, many local industries in Sri Lanka still operate at very low level, i.e. 2nd IR, thus lagging behind many countries even in Asia. This issue has already been highlighted by Dr. W.A. Wijewardena, former Deputy Governor of the Central Bank, through the print media.
Japan was devastated in 1945 during the 2nd World War, but emerged as the second largest technological powerhouse in the world by 1965. Today Japan with only 0.25% land area and 1.5% of the population in the world has become the fourth strongest economy on this planet and is second only to the USA, China and Germany. Israel, with an annual precipitation of about 400 mm, produces the highest milk yield in the world, i.e. over 30 litres/cow/day whereas Sri Lanka, blessed with an annual rainfall ranging from 1750 to over 2500 mm, still produces only 2-4 litres/cow/day. Another such example is the Netherlands, which is only about 60% of the size of Sri Lanka, but is the third largest exporter of agricultural produce in the world, whereas Sri Lanka, with a year-round favourable climate for agriculture, imports food commodities to the value of about $ 2 billion annually. Needless to add that the countries referred to above have a strong S&T base. While several factors, including incoherent and inconsistent national policies, adhocism and short-termism in Sri Lanka, have contributed to it, low investment in R&D in the past has been a major contributory factor.
Against this background, it is heartening to see that the new government has recognized the overriding importance of S&T for national development and has formulated a comprehensive Science and Technology Policy Framework, titled “Quantum Leap,” including several strategic interventions for public consultation. Moreover, the government has reestablished the Ministry of Science and Technology and has pledged to substantially increase the allocation for R&D in the 2025 Budget. If the interventions proposed in the policy framework are successfully implemented, it would afford a huge boost to the national economy, enabling it to come out of the present economic morass and move along an upward trajectory of economic growth. As public comments are sought on the proposed policy framework and strategies identified, I wish to share some of my thoughts in the hope that they may prove useful in formulating policies with actionable interventions as per the framework developed.
Prioritization of the strategic sectors and high-impact interventions
Here, it will be useful briefly to present how some countries set about in formulating such a policy document. South Korea, in its strategic plan for science and technology from 2025 to 2030, identified 12 national strategic technologies and established a strategy road map for each technology. This ambitious initiative involves a significant investment, i.e. over $19 billion aimed at fostering those 12 strategic technologies essential for economic security and competitiveness of the country. (https://www.msit.go.kr/eng/bbs/view.do?sCode=eng&mId=4&mPid=2&pageIndex=&bbsSeqNo=42&nttSeqNo=746&searchOpt=ALL&searchTxt=). The UK government recently unveiled its Science and Technology Framework, aiming to position the country as a global leader in science and technology by 2030. This framework is a key initiative of the newly formed Department for Science, Innovation and Technology, and outlines 10 strategic actions to foster innovation, enhance public and private R&D investments, and leverage the UK’s existing strengths in critical technologies (https://www.gov.uk/government/publications/uk-science-and-technology-framework).
The Technology Information Forecasting and Assessment Council (TIFAC), coming under the Department of Science & Technology in India, having taken into account the economic situation, geo-politics and technological advances in the world, has formulated Technology Vision 2035, presenting a fresh perspective on technology imperatives for India. It is a consultative document meant to inspire all the stakeholders and capture the collective aspirations and expectations of the people and the ambitions of the youth of India. A blend of bottom-up and top-down approach was used in the design of this visionary exercise. In addition, people across the spectrum were consulted in multiple ways to anchor the vision, notably through regional brainstorming meetings, thematic interactive sessions with students, faculty and technocrats, open online surveys, etc. Moreover, a large number of experts were consulted to get deeper technology insights and perspectives, at different stages of exercise and the feedback and inputs from those interventions were studied in detail and synthesized to evolve the technology vision for the country. Based on in-depth analyses and discussions during the scoping phase of the exercise, 12 strategic sectors, namely Education, Medical Sciences and Healthcare, Food and Agriculture, Water, Energy, Environment, Habitat, Transportation, Infrastructure, Manufacturing, Materials and Information & Communication Technology (ICT) were identified (https://www.indiascienceandtechnology.gov.in/sites/default/files/file-uploads/roadmaps/1527503991_Technology_vision%202035.pdf).
The policy framework recently developed in Sri Lanka has identified six broad areas which encompass over 25 sectors involving over 100 wide ranging interventions. As their implementation exerts a formidable strain on the available limited resources, including financial and technical, it is of the utmost importance to reflect and deliberate deeply on them with the participation of all the key stakeholders (including S&T and R&D institutions, industry and community) and conduct the necessary surveys and investigations where applicable. These will prove important in order to identify a few high-impact strategic interventions (low hanging fruits) that could yield tangible results in the near term without losing sight of the medium- and long-term national interests and needs.
Allocation of funds for the strategic high-impact technologies and interventions identified
A vision by itself would not serve any purpose unless appropriate actions are outlined and acted upon to realize the large objectives. In this connection, construction of a road map and allocation of the requisite funds, particularly on a short- and medium-term basis, and ensuring their availability are of prime importance. This will develop confidence and credibility among the stakeholders including the private sector and scientific community and motivate them to commit themselves to the high-priority concerns as per the road map. As S&T interventions demand a wide range of inputs from home and abroad, building and maintaining a robust and resilient supply chain is also of crucial importance. Many plans in the past have failed as commitment has been only in word, but not in deed. In our country, according to past experience, R&D became the first casualty in the event of a crisis since governments were generally more concerned with populist measures and vote-grabbing interventions. However, in many developed economies, R&D rarely becomes a casualty and on the contrary, they even provide enhanced funding for R&D in order, for example, to tackle such crises as the COVID-19 pandemic. Therefore, unwavering commitment to strategic R&D with firm conviction is a prerequisite to drive economic growth and competitiveness of the country.
Providing tax incentives to the private sector for investment in R&D and innovation
Global spending on R&D has now reached a record high of almost US$ 3 trillion in 2023. Asian countries (including China, Japan, India and South Korea) now account for more than 40% of all global R&D investments, with the US and European investment accounting for less than 30% and slightly more than 20%, respectively. Governments worldwide increasingly rely on tax incentives to promote private R&D and innovation investment. In the early 1980s, the contribution of the public sector to R&D in the USA was comparable to that of the private sector. However, in the 2020s, the private sector has contributed 75% of the R&D investment while the public sector only 25%. For instance, the total funding on R&D in the USA in 2021was US$ 806 billion of which US$ 602 billion was from the private sector. France has implemented the Research Tax Credit which is one of the most generous R&D tax relief schemes in Europe, making it attractive for businesses to invest in innovation. Finland, Sweden and the Netherlands have also introduced similar schemes to promote private investment on R&D.
(To be continued)
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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