Business
Salon owners contemplating pulling the plug, putting more than 300,000 jobs at risk
- = Ban on imported cosmetic products hampers industry
- = Marked decrease in consumers patronising salons
- = Developing Sri Lanka as a wedding-hub ‘fading away’
- = Urges President to help protect the self-reliant industry
By Sanath Nanayakkare
Ninety percent of salons across Sri Lanka are at the risk of closure unless the temporary ban on imported cosmetic products is lifted soon, Jackie Aponso, president, Hair and Beauty Cluster (HBC) said last week addressing a press conference in Colombo.
She claimed that such an eventuality could lead to 75%-80% job losses of industry personnel. “That’s a large number as HBC is a unification of many associations in the beauty and personal care sector with 450,000 members,” she said.According to the figures given by her if the situation persists, 337,500 – 360,000 jobs would be lost for employees in the industry.
‘Yes, there is a sound fiscal argument for the government’s temporary ban on imported cosmetic products in the tight foreign exchange reserves backdrop. But if the ban is not lifted by the end of this month to facilitate the availability of international cosmetic brands in the market for upcoming Christmas and New Year, its impact will take a devastating toll on the 450,000 self-employed individuals engaged in the industry and 1.5 million of their dependents”, Jackie said.
‘Most foreign and local customers prefer international brands for their hair and skin treatments. Although a number of home-grown cosmetic brands have emerged, customers prefer their hair and facials done with brands that have been frontrunners in the market which they have relied on for years. Being a highly customer-centric business, we have to work with formulas that customers are comfortable with, because they are concerned about what we put on their face and hair.”
“It’s a relief to hear that the import ban is temporary. But it needs to be lifted quickly to allow sufficient lead time for cosmetics importers to place orders and bring the products to Sri Lanka. It was no secret that our industry was heavily battered by the Covid-19 pandemic and somehow we braved up to this point safeguarding our businesses. And we all have been looking forward to this season to offset the losses we suffered in the past two and a half years. If the ban is lifted by end of this month, imported brands will be available in the market by mid or end of November, and salons will be well-positioned to start work diligently as the season kicks off. But if the imported products reach here as late as mid-December, then this year also will be marked as another unfortunate business year for the salon industry, “she said.
“When we don’t have wedding makeup essentials, a number of other industries also will get affected; such as hotels, wedding and event planners, wedding florists, bridal photographers, Poruwa suppliers, hall decorators and so on. As a result of the import ban, a black market has emerged where the prices of cosmetics have gone up by 6-7 folds. This has put 90% of our beauty and personal care parlours in great difficulty. A hair spray which was about Rs. 2,000, now costs Rs. 12,000. Can we pass that cost burden to the customer? No, we can’t. It is the same with all other products. There are a few salons that can afford such high costs and charge high prices, but the majority of our members are not so, and they are at the risk of closing their businesses. As there has been a marked decrease in customers patronizing salons, some members even called us and asked for help to sell their equipment and exit the industry. Such a situation may create an unemployment problem as they are all self-employed individuals.”
According to HBC, the industry’s cosmetics import bill accounts for 0.08% of the total national import bill. They also highlighted the fact that all registered cosmetics importers and HBC members pay their due taxes to the government.
Salon entrepreneur Bernie Balasuriya said: “Our industry brings in foreign exchange to the country. When foreigners and expatriates come to Sri Lanka for weddings, their families stay in hotels for about a week. Sometimes we set up salon space inside the hotel to cater to beauty and personal care needs of these visitors. They want us to use international cosmetic brands. This is an industry which earns foreign exchange and which therefore demands best industry practices.”
Theekshani Kariyawasam, Gold medal winner at OMC Hairworld in France in the category of bridal makeup, who successfully competed against contestants from more than 60 countries, said that the situation is so sad especially because Sri Lankan beauty artistes and entrepreneurs have never been a burden on the economy. We have always relied on our own talent and commitment. We need international cosmetic products to work with and be recognized for highest standards on par with other destinations.”
Asoka Thilakaratna who boasts 35-years of experience in the industry said,”Skilled Sri Lankan hairdressers and beauticians get overseas jobs because they have a lot of knowledge and experience in working with international cosmetic brands and techniques. That serves as a plus point for them at job interviews with prospective foreign employers. Further, I heard the good news that there would be some Indian weddings taking place here in Sri Lanka in November, December and January. I know from my experience that they come as groups about a week before the wedding and get all their beauty treatments done in Sri Lanka. If we don’t have cosmetic brands they love and trust, we could miss out on these business opportunities because they make it a point to stay away from lesser known products and fake products.”
Concluding the comments, Jackie Aponso said,” We have made an appeal to President Ranil Wickremasinghe to consider the lifting of the ban with the objective of protecting this self-reliant industry and its self-employments. We look forward to a favourable solution in time to get back to business.”
Business
Sri Lanka to receive ‘a lot of positive news’ after President’s visit to India: Deputy Foreign Minister
By Sanath Nanayakkare
Foreign Affairs and Foreign Employment Deputy Minister Arun Hemachandra recently told Ada Derana TV that Sri Lanka would receive a lot of positive news after President Anura Kumara Disanayake’s visit to India.He made this comment during a talk show with TV anchor Mahieash Johnney in a zoom call.
Mahieash asked the deputy foreign minister several questions related to the President’s visit to India from December 15 to 17, which is set to take place following an invitation from the Indian government.
The following are some comments made by the deputy foreign minister during the programme.
“As a country, we do believe in maintaining good bilateral relations. Sri Lanka is an island nation. Our country is situated in an important geographical location on the world map. So, as a country, we do need a very strong foreign relations and we should have a very strong diplomatic service as well. Based on that, what we believe is that the NPP government should have a very strong foreign policy and we are committed to having one. In the past, as a country, we did not have a similar thing because most of the rulers were making use of the foreign diplomatic service as well as the foreign policy which was supposed to be nation-oriented or country-oriented, but were not practiced in that way.”
“As the NPP-led government, we are committed to a very strong foreign policy. We have to understand one thing. India being a very close neighbour, India being a very strong neighbour and India being a country that helped Sri Lanka during the crisis time without any conditions, we have to maintain a very close relationship with India. And, we have to understand that our country should have a very strong, non-aligned foreign policy, so as a country, we need to understand that it is an art of balancing. We have to consider India’s national security which is their utmost concern. We should focus on that also because being a very strong country, they focus on that. But also, we have to have a very strong country oriented and people-oriented foreign policy, so the NPP government is committed to having such a policy, so there is nothing to worry about that.”
When asked about Sri Lanka’s wish to join BRICS as a means of economic development and about US president-elect Donald Trump’s threat to impose 100% tax on BRICS’s exports into his country if they created a new currency to replace the US dollar, Hemachandra said said,” Our application to join BRICS has not been rejected. It is still under consideration. As a country, we have joined the new development bank – which is the banking body of BRICS, so the process is still on the move.
And about the statement made by the U.S. president-elect Donald Trump, we don’t know how practical it is for them to impose such tariff. But then again, we have to understand that BRICS was something inevitable because it was something which couldn’t be rejected , so there was a need for BRICS and that was one reason BRICS kept on growing. So, we have not opted out, we have not changed our decision on BRICS. The particular application is still on the move, and we are looking forward to positive updates from them.”
When asked whether new trade agreements, concessions etc. could emerge from the meetings President Anura Kumara Disanayake will be having during his Indian tour, the deputy minister replied,”
“The President’s first official overseas visit will be to India. We believe that we also should continue that tradition as India being a very close and strong neighbour. We believe that we should start from that point. We should understand that there are many pending agreements to be signed. There are still many agreements which are being discussed. I cannot comment on everything here, but then, we are discussing with India regarding many things that were discussed in the past.
So, it is a new administration. It is a new government. So, we should take decisions based on the people’s and the country’s benefit. So, there are many things that are being reviewed. And many things are being discussed. So, the country will have a lot of positive news after the President’s visit to India. We believe that we should maintain very strong diplomatic relations with India, and they are also committed to help us. This morning also I met the Deputy High Commissioner of India who made a courtesy call at my office. We discussed many things. But we have to mention that the decisions will be purely based on the country’s benefit and the people’s mandate,” the deputy foreign minister said.
During his visit, President Dissanayake is expected to meet Indian President Droupadi Murmu, Prime Minister Narendra Modi, and other senior officials. Discussions are expected to focus on strengthening ties and exploring cooperation across multiple sectors.
Business
Fems makes history at SLIM Brand Excellence Awards 2024
Fems, Sri Lanka’s leading and progressive feminine hygiene brand, clinched an unparalleled victory, becoming the first feminine hygiene brand in Sri Lanka to win the prestigious Gold award for Product Brand of the Year at the SLIM Brand Excellence Awards 2024. The brand secured a total of three major awards, maintaining its winning streak since 2023.
Fems captured the coveted Product Brand of the Year Gold award competing against established brands across all consumer categories. Fems also won Silver awards for Innovative Brand of the Year and CSR Brand of the Year.
Shiyan Jayaweera, Director Marketing, Hemas Consumer Brands, said, “These prestigious awards validate Fems’ unwavering commitment to empowering women and breaking barriers in an often-overlooked category. As a leading feminine hygiene brand, Fems will continue to pioneer conversations around the category to meet our consumer’s evolving needs by delivering innovation and increased social awareness to create a meaningful impact in their lives.”
Business
British Council launches ‘Youth-Led Green and Inclusive Businesses’ project in universities
The British Council inaugurated its flagship project, Youth-Led Green and Inclusive Businesses, in partnership with four state universities, University of Peradeniya, University of Kelaniya, University of Sri Jayewardenepura and University of Uva-Wellassa during an event held recently. This initiative is designed to equip university students with the knowledge, skills, and confidence to lead transformative changes in their workplaces and enterprises, fostering sustainable and environmentally conscious business practices.
The event featured a speech by British Council Country Director, Orlando Edwards, who emphasized the organisation’s commitment to empowering Sri Lanka’s youth as catalysts for green innovation and social inclusion. “At the British Council, we believe that the future lies in the hands of our youth. They are not just the leaders of tomorrow but are making significant impacts today. This belief drives our commitment to support and empower young people around the world to lead initiatives that address critical issues like sustainability and inclusivity,’’ said the Country Director.
Adding further significance to the occasion, Chamindry Saparamadu, the Director General of the Sustainable Development Council of Sri Lanka, said ‘‘Youth can be powerful agents of transformative change. They have fresh perspectives and insights that could be harnessed to offer innovative solutions to our pressing development problems. The efforts of the British Council—in equipping the next generation of our business leaders with the knowledge and skills for business value creation beyond profit—through green and inclusive business development is indeed commendable.’’ She highlighted ongoing efforts to create a cohesive sustainable development framework across sectors, and how programmes such as this align with Sri Lanka’s strategic goals.
Representatives from participating universities expressed their enthusiasm for the collaboration and underscored their commitment to integrating the programme into their extracurricular initiatives. “This partnership is a step towards transforming our students into leaders who can seamlessly blend sustainability and inclusivity into their future careers,” said Prof. Dilukshi Senaratne, Director of the Career Guidance Unit of University of Kelaniya.
The Youth-Led Green and Inclusive Businesses project will engage students through innovative workshops, mentorship programmes, and practical learning opportunities, empowering them to tackle pressing challenges such as climate change, resource efficiency, and equitable growth.
This collaboration between the British Council and state universities marks a pivotal step in fostering a greener, more inclusive future for the country.
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