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OPERATING SEVEN HOTELS – Part 44

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CONFESSIONS OF A GLOBAL GYPSY

By Dr. Chandana (Chandi) Jayawardena DPhil

President – Chandi J. Associates Inc. Consulting, Canada

Founder & Administrator – Global Hospitality Forum

chandij@sympatico.ca

At the beginning of 1981, I was transferred to the John Keells corporate office in Colombo. I was proud to get this opportunity to work within the largest group of companies in Sri Lanka. I had been promoted from my previous post of Manager, Hotel Swanee to number two of Keells’ hotel company, Hotel Management & Marketing Services Limited (HMMS). My wife and I quickly settled in well into the Colombo social life style with regular trips to Keells hotels on the weekends. I also re-commenced judo at the Central YMCA. Having stopped judo for six years to focus on building my career as a resort hotelier on the south coast, I was happy to get an opportunity to practice judo, and study for judo grade promotion tests once again, whenever my busy work schedule allowed me to do so.

It was a big adjustment to get used to the corporate culture of John Keells which was very different to the living in and working at resort hotels. Since the nationalization of tea plantations by the socialist government in the early 1970s, John Keells commenced diversifying to multiple industries, including tourism and hospitality. In 1981, some 33 years after Ceylon/Sri Lanka gained independence from British colonizers, John Keells was still headed by two Brits (Chairman Mark Bostock and Deputy Chairman David Blackler). Nevertheless, I liked the atmosphere at the head office as John Keells had a unique and dynamic culture. It faced the historic Beira Lake built by the Portuguese colonizers in the 16th century to prevent Colombo from being re-captured by Sinhala kings and their armies.

John Keells Corporate Office in 1981

Having associated with the group’s chairman since 1972, initially through rugby football and then as a hotel manager, I was an admirer of Mark Bostock. I was extremely grateful to him for fully sponsoring my first, overseas trip and training in London in 1979. My personal friendship with him continued in 1984 when my family was invited to visit his family in their home in Royal Tunbridge Wells, Kent for an overnight stay during my graduate student years in the United Kingdom. Later in 1985, he supported the re-hiring of me to John Keells to manage their two largest hotels (The Lodge and The Village) as the General Manager.

Mark Bostock, was a great visionary leader but a little eccentric. All the executives came to work in our company cars dressed in shirt and tie, but our chairman took pride in coming to work on a scooter from his home in Colombo seven. His usual attire was a white shirt, no tie, white shorts and long white stockings, exactly the way he dressed for work during his early career as a tea planter. He enjoyed a good drink. One day at an office party, his wife was annoyed that he had a couple of extra drinks. She stopped addressing him as ‘Mark’ and said to him, “Bostock, time to go home. I will drive!” They left immediately. She was a very proper English lady and they made a good couple. I also knew their daughter Clair who was studying hotel management in the United Kingdom.

In addition to the directors, senior executives, executives and secretaries, there were office aides who served us excellent tea regularly. They also brought us our mail and office memos. During this pre internet and email era, we depended on them to have speedy inter office communications. One of the earliest memories at the corporate office that I fondly remember is how Mark Bostock often distributed memos from the Chairman’s office personally. “How are you settling in the head office, Chandana?” he asked me in my first week during one of his visits to my office. “Here are some memos for you”. He handed over a few papers to me and left very quickly. It was his clever way of getting some exercise while checking different offices and engaging in a causal conversation with all levels of his vast growing team.

At that time, most of the directors in the top of the group hierarchy were tea specialists or chartered accountants. They usually hired male management trainees with a middle-class English-speaking upbringing and from good schools. Most of those trainees had excelled in sports. These trainees were in their late teens and had no post-secondary education. John Keells tended to hire the attitude and train the skills. Those who learnt the ropes quickly and were dynamic, rose rapidly in the corporate ladder to board positions with impressive stock options. Once they got in, hardly anyone thought of leaving John Keells. They played a “long stay ball game” which provided job security, fun and great career prospects. They also had to play corporate politics and watch carefully where the wind is blowing.

In 1981, we knew that ‘charismatic’ Ken Balendra was destined to become the first Sri Lankan chairman of the group within a few years. Since he had such a good relationship with the two Brits at the helm, some of us in a light-hearted manner, referred to him as ‘Blackstock’, of course behind his back. We also fondly referred to him as ‘Ken Bala.’ One day when I addressed him as ‘Sir’, he tapped on my shoulder and said, “Chandana, call me Ken.”

Having managed the Maintenance and Projects Department at John Keells for a few years, my father-in-law, Captain D. A. Wickramasinghe (Captain Wicks) had been promoted by the board to re-organize and manage the outbound travel company of the group, Silverstock. That company focused on Buddhist pilgrimages to India and Nepal.

As all at the corporate office worked a half day every Saturday morning, I was ready in a shirt and tie for my first Saturday at John Keells. “Chandi, change into something more casual on Saturdays which is the Beer Day @ Keells”, Captain Wicks suggested to me. When I asked for clarification, he said that, “On Saturdays we work for a couple of hours catching up on outstanding work and plan for the next week. Then everybody is served beer and we socialize a little before going home for lunch.”

Building a Corporate Hotel Team

Hotel Management and Marketing Services (HMMS) was a small office at that time as it was started in 1979 with just two people, Director – Operations, Bobby Adams and his secretary. I became the first Manager – Operations in 1981. Our team quickly expanded to have an Engineer, Credit Controller, Hotel Reservations Coordinator and a Management Trainee. There was a vacancy for a Food and Beverage Manager on my team, so I initiated the recruitment of a well-qualified and experienced hotelier who had been educated in Beirut, Lebanon and at the oldest and the best-known hotel school in the world, The École hôtelière de Lausanne, Switzerland (Chris Weeratunga) to that position. Later, when I left John Keells, Chris was promoted to my position.

Accounting and financial services were provided by a team led by Senior Finance Director, Vivendra Lintotawela (who later in the year 2000, became the Group Chairman). He was very focused on raising our average daily room rates. Sales and marketing support was provided by Walkers Tours. The central purchasing unit of John Keells coordinated most of the purchases for our hotels.

HMMS team managed seven properties in 1981. There were four resort hotels on the South West coast – Bayroo, Swanee, Ceysands and Ambalangoda. I often went to Habarana to be engaged in operational projects at the Village and for pre-opening projects for the Lodge. The Kandy Walkin project (later opened as Hotel Citadel) was still in the planning stage, but I used to occasionally go to the Keells holiday bungalow on that site with my family and friends visiting from Austria. It was a beautiful spot close to the Mahaweli River.

Managing Temple Trees, the residence of the Prime Minister and his family, was a demanding management contract. I visited Temple Trees occasionally to support Fazal Izzadeen, our manager there and his team. Given the personal friendship Bobby Adams had with Prime Minister R. Premadasa, the Director – Operation had to be personally involved in managing this prestigious property. Being a perfectionist, Mr. Premadasa did not tolerate any sub-standard quality in maintenance, upkeep and cleanliness. Fazal did a great job in keeping the second family of Sri Lanka content with the services we provided, and more importantly, off our backs.

In Colombo, we had negotiated to take over the management of Ceylinco Hotel. “Finally, the Ceylinco deal was signed and sealed today Chandi. I would like you to take over the management of this hotel and re-organize it from now on. I know your style, and as you prefer, you have a totally free hand”, Bobby informed me. He knew that I had a personal friendship with the Ceylinco Group Chairman, Lalith Kotalawala, which was useful in taking over Ceylinco Hotel housed in, at one time the tallest building in Sri Lanka. Lalith and his wife Sicille, loved Hotel Swanee, where they used to visit occasionally when I was the manager there.

Taking over the Management of Ceylinco Hotel

One of the first things I did at Ceylinco Hotel was to have one on one discussions with each member of the management team of Ceylinco Hotel. The hotel manager decided to leave after the change. My choice for the new manager was to internally promote the Food & Beverage Manager of Ceylinco Hotel, Kesara Jayatilake as the Hotel Manager. Bobby thought that we should appoint a manager experienced with HMMS, but when he realized that I was very keen about Kesara, Bobby agreed with my suggestion.

With six popular restaurants and bars, this hotel needed a manager who was a specialist in food and beverage operations. In addition, I was impressed with Kesara’s well-established social connections in Colombo. After his promotion as manager of Ceylinco Hotel, Kesara was extremely loyal to me until his untimely death a little over a decade later, after managing a few well-known hotels in Sri Lanka, such as Lihinia Surf and Browns Beach Hotel. He was my good friend and I sorely missed him.

The rooftop restaurant of Ceylinco Hotel, Akasa Kade was a charming place. It was famous for its Sri Lanka specialities including egg hoppers. Music for dancing at Akasa Kade was provided by the popular band named after its legendary band leader and the lead singer, ‘Sam the Man’. It was also very popular for business lunches. I loved going to Akasa Kade in the evenings

I transferred a few food and beverage management and supervisory stars who worked with me at other hotels, to Ceylinco to strengthen Kesara’s team. We introduced theme events and opened a new evening restaurant using the front car park of the building which was never full after office hours. After brainstorming with the new management team of Ceylinco Hotel, we developed a concept unique to Sri Lanka in the early 1980s and gave the new restaurant a Sinhala name – ‘Para Haraha’ (Across the Road). It was the first ever side walk café in Sri Lanka.

An Assignment in Hong Kong

In the midst of my busy schedule with HMMS, Bobby Adams entrusted me, on short notice, with a very special assignment in Hong Kong. He wanted me to quickly plan and organize a large Sri Lankan and Maldivian food festival at the Hotel Furama InterContinental, Hong Kong. It was an important, two-week tourism promotional festival, in partnership with a few organizations. They were represented by well-known leaders of the tourist industry, such as M. Y. M. Thahir of Walkers Tours, Pani Seneviratne of Ceylon Tourist Board and Ahamed Didi of Universal Resorts, The Maldives.

The InterContinental Hotel Group was expected to be represented by a senior Sous Chef from their five-star hotel in Colombo. The festival included 28 large buffets for lunch and dinner over 14 days, promoting Sri Lankan cuisine and a few dishes from the Maldives. The Hotel Furama InterContinental had agreed to provide three of their cooks to assist the Guest Executive Chef representing Sri Lanka.

At the eleventh hour, the Executive Chef of Hotel Ceylon InterContinental, who was a Swiss-German, had refused to release his second in command to travel to Hong Kong. He had been concerned that the support in Hong Kong was inadequate to produce 28 large buffets over 14 days. He wanted three Sri Lankan additional chefs from his brigade to be provided with air tickets to Hong Kong. That request was not accepted by Air Lanka, the airline sponsor of festival.

The reputation of Walkers Tours (a key subsidiary of John Keells Group) as the main organizer of the festival was at stake. Bobby asked me, “Chandi, we need someone like you to rise to the occasion. Can you please help our company by organizing all aspects of food for this festival in Hong Kong?” I planned the menus, calculated quantities of all ingredients and purchased a few key buffet decorations on the same day from Laksala, and took off on an Air Lanka flight to Hong Kong the very next day. Having ceased to be an Executive Chef, two years prior to that, it was a challenging assignment for me, but I always loved a challenge!

During the flight, I was thinking of my father’s advice given to me just before my trip. He said, “Chandana, try your best to do even a short trip to China after the food festival. Future global tourism will be divided into two – China and the rest of the world! Don’t miss this opportunity.” As a former state visitor to China in the 1950s and the author of the first-ever Sinhala book about China in the 1960s, my father had a deep knowledge about China’s past and the present. Therefore, I was not surprised by his prediction for the future, although in 1981, it was difficult to imagine how China would eventually become one of the four top tourist destinations in the world.



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Sri Lanka’s rice conundrum: Time to stop managing crises and start fixing the system

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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”.

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This curse of partisan politics in Sri Lanka

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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.

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Developing markets for fruits, vegetables and flowers in the Gulf

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Image courtesy Export Development Board)

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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