Annual Report 2018/19 Annual Report
1st April 2018 to 31st March 2019 March : 1st April 2018 to 31st Financial Year December 2019 : 1st January 2019 to 31st Operational Year YOUR DREAMS YOUR EMPOWERING
THE NATIONAL CHAMBER OF COMMERCE OF SRI LANKA • ANNUAL REPORT 2018/19
EMPOWERING YOUR DREAMS
ENTREPRENEURS CONTINUE TO BOLSTER THE LIFELINE OF OUR ECONOMY, FOSTERING ECONOMIC INDEPENDENCE AND THE HOPE FOR A STRONGER, MORE SELF-SUFFICIENT ECONOMY FOR OUR MOTHERLAND. AS A LEADING AUTHORITY IN UPLIFTING AND DEVELOPING ENTREPRENEURIAL VISIONS, NCCSL CONTINUES TO EMPOWER THE DREAMS OF OUR ENTREPRENEURS PROVIDING ESSENTIAL GUIDANCE TO SMES AND LARGE SCALE ENTERPRISES. WHETHER THEY ASPIRE TO BREAK INTO THE LOCAL PLAYING FIELD OR TO ENTER INTERNATIONAL MARKET-SPACES, WE SUPPORT THEM IN THEIR MOST CRUCIAL STRATEGIC MILESTONES, PROVIDING VITAL RESOURCES; INFORMATION AND STRATEGIC DIRECTION, HELPING THEM BREAK CHALLENGING FRONTIERS.
ACROSS THE YEARS, NCCSL HAS SUPPORTED MANY BUDDING ENTERPRISES TO BECOME INDUSTRY LEADERS, PROVIDING ASSISTANCE IN FINANCIAL LITERACY, BUSINESS CONSULTATION AND MARKET PLACEMENT OF PRODUCTS WHILE ASSISTING BUSINESSES OF YOUTH AND WOMEN. WE CONTINUE TO BE A PARTNER IN THEIR GROWING VENTURES WHILE CONTINUING TO ASSIST OUR ENTREPRENEURS TO ACHIEVE GROWTH POTENTIALS AND BUSINESS ASPIRATIONS. THE MISSION IS TO PROVIDE TRADE PROMOTION SERVICES AND ASSISTANCE REQUIRED BY BUSINESSES TO FUNCTION COMPETITIVELY IN DOMESTIC AND OVERSEAS MARKETS AND TO REPRESENT THEM IN MATTERS OF COMMON AND INDIVIDUAL INTEREST AT ALL FOR INCLUDING DISCUSSIONS AND DELIBERATIONS CONVENED BY THE GOVERNMENT.
THE MISSION IS TO BE ACHIEVED PRIMARILY THROUGH ENHANCING THE EFFICIENCY AND COMPETITIVENESS OF FIRMS COUNTRYWIDE AND STRENGTHENING THE DIALOGUE WITH THE GOVERNMENT TO ASSIST IN CREATING A CONDUCIVE BUSINESS ENVIRONMENT.
Mission Values
• MEETING MEMBER Vision EXPECTATIONS • GIVING AWARENESS TO THE THE VISION OF THE NATIONAL STAKEHOLDERS AT THE CHAMBER OF COMMERCE RIGHT TIME OF SRI LANKA IS TO BE • GIVING A HELPING HAND THE LEADING SOURCE OF TO SMEs SERVICES AND ASSISTANCE TO • RESPECT THE EQUALITY BUSINESSES COUNTRYWIDE FOR PROMOTION OF DOMESTIC • EMPOWERING AND FOREIGN TRADE WITH STAKEHOLDERS SPECIAL EMPHASIS ON • BRINGING THE THE DEVELOPMENT OF INTERNATIONAL BUSINESS MICRO, SMALL AND MEDIUM FLAVOUR TO LOCAL ENTERPRISES. BUSINESSES Content
COVER STORY
ABOUT NCCSL 2 VISION, MISSION AND VALUES 4 ABOUT THE REPORT 5 JOURNEY ACROSS THE YEARS
SPOTLIGHT ON 8 SPOTLIGHT ON FLAGSHIP EVENTS FLAGSHIP EVENTS
60TH AGM OF THE 10 EXTRACTS FROM THE SPEECH OF THE CHIEF GUEST CHAMBER 12 EXTRACTS FROM THE SPEECH OF THE GUEST OF HONOUR 14 EXTRACTS FROM THE SPEECH OF THE PRESIDENT 16 EXTRACTS FROM THE SPEECH OF THE OUTGOING PRESIDENT
LEADERSHIP 20 PRESIDENT’S MESSAGE 24 REVIEW BY THE SECRETARY GENERAL 28 THE EXECUTIVE TEAM 31 MEMBER AFFILIATIONS 32 THE COUNCIL 36 THE COUNCIL OF 2019 37 PAST LEADERSHIP 38 THE OPERATIONAL TEAM
MANAGEMENT 44 MANAGEMENT DISCUSSION DISCUSSION
THE CHAMBER 48 WHO WE ARE 49 CHAMBER SERVICES 50 NETWORK FOR SME DEVELOPMENT 51 PAST PRESIDENTS AND SECRETARY GENERALS / CEOS 52 COMMITTEE STRUCTURE 53 THE GOVERNING COUNCIL AND SECRETARIAT 54 TRAINING AND KNOWLEDGE SHARING 56 BUSINESS DEVELOPMENT PROGRAMS - SME 60 BILATERAL AND STRATEGIC INITIATIVES
CAPITAL REPORT 66 CAPITAL REPORT 69 FINANCIAL CAPITAL
RISK MANAGEMENT 71 RISK MANAGEMENT
FINANCIAL STATEMENTS 74 FINANCIAL STATEMENTS CORPORATE INNER INFORMATION BACK COVER CORPORATE INFORMATION THE NATIONAL CHAMBER OF COMMERCE OF SRI LANKA ANNUAL REPORT 2018/19 About the Report
EMPOWERING
YOUR DREAMS Annual Report 2018/19 Financial Year : 1st April 2018 to 31st March 2019 Operational Year : 1st January 2019 to 31st December 2019 THE NATIONAL 2018/19 CHAMBER OF COMMERCE SRI LANKA • ANNUAL REPORT
Report Content and Boundary The ensuing content of this report is a presentation of the conduct of the Chamber during the year 2019. It provides a comprehensive insight into this year’s events, forums, meetings and strategic initiatives and provides insights into the Chamber’s strategic measures in building local businesses especially Micro, Small and Medium Enterprises (MSMEs).
It includes the programs expedited to inform, educate and train target groups within the business community, in enabling business growth and market expansion opportunities for member companies. The report provides a detailed depiction of the bilateral discussions, meetings with ambassadors and other events hosted or supported by the Chamber, with the purpose of assisting foreign organizations to seek information and opportunities pertaining to bilateral trade in the domestic market. It also provides the strategic partnerships initiated in 2019 in strengthening the services and reach of the Chamber.
Intended Audience This report is intended for the use the members of the Chamber, professional businessmen, prospective businessmen and other stakeholders.
Declaration The Financial Statements presented herein are audited and prepared by KPMG Chartered Accountants in compliance with the requirements of the Companies Act 2007 and certified by Mr. Gamini Wimalasuriya, Hon. Treasurer and approved by Mr. Asela de Livera - President and Mr. Nandika Buddhipala, Senior Deputy President of the National Chamber of Commerce Sri Lanka.
4 THE NATIONAL CHAMBER OF COMMERCE OF SRI LANKA ANNUAL REPORT 2018/19 Journey across the years
1948 2000 • The chamber was established • The chamber conducted the 3rd INTRAD Millennium exhibition and Investor Forum at the BMICH in May, marking 1955 the beginning of the millennium. • The Chamber was incorporated as a legal entity 2004 • The first National Business Excellence Awards was held in 1972 November, at Hotel Hilton. 29 best performing business • Two awards for outstanding performance in an International organizations were presented with awards. Trade Fair awarded by the IKOFA, Food Fair in West Germany, making us the first Chamber to have won these prestigious awards. 2005 • The first female President of the Chamber was elected, as Head of the Chamber. 1990 • NCCSL facilitated rehabilitation of SMEs affected by the • Selected as one of the two Chambers to issue Entrepot 2004 Tsunami by providing financial assistance through Certificate of Origin, introduced in Sri Lanka in 1990 donor funding. • The first auditorium of the Chamber was completed on the 4th floor of our Headquarters, fulfilling a vital need for an in- 1993 house accommodation for various events and programs. • Construction of Chamber Headquarters commenced • The National Business Excellence Awards was conducted with the laying of its foundation at 450, D.R. Wijewardene for the second year, held at Hotel Hilton. In addition, the first Mawatha, Colombo 10. The same year, we reorganized the ever National Healthcare Exhibition “Arogya 2005” was held Chamber library – both projects were completed under the at BMICH, in partnership with the Ministry of Health. financial backing of the Policy Support Unit of the USAID. 1995 2006 • The “Arogya 2006” National Healthcare Exhibition was held • Operations were shifted to new Headquarters on June 3rd. for the second successive year at BMICH. The same year we signed an agreement with the Sri Lanka • The SME – Businesses Promotion Fund was held, with China Business Cooperation Council for providing secretarial Financial Assistance by the Royal Netherlands Government. services. • NBEA 2006 was organised for the third consecutive year at 1996 Hotel Hilton. • The first ever INTRAD exhibition was inaugurated, held from 2007 7-9th of July at the BMICH. • The very first “Ayurveda Expo” International Exhibition and Symposium was organized in September with wide 1997 international participation at BMICH. • NBEA 2007 was also organized for the fourth consecutive • The second INTRAD exhibition was inaugurated by President year at Hotel Hilton. H.E. Chandrika Bandaranaike Kumaratunge and conducted successfully.
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Journey across the years
2008 2013 • The “Wellassa Krushi Udawa” was held in Buttala, Moneragala – • The Chamber unveiled a refurbished and fully equipped the first such Regional Agricultural Exhibition held in Sri Lanka. auditorium, ceremoniously inaugurated by H.E. Mahinda • NBEA 2008 was also organized for the fifth consecutive year Rajapaksa, President of Sri Lanka, in January. at Hotel Hilton. • ‘Ayurveda Expo – 2013’ International Indigenous Healthcare Exhibition and Symposium was organized for the 4th time at BMICH. 2009 • Conducted ‘NBEA – 2013’ for the 10th consecutive year at • The Chamber received an International Award for the Best Hotel Hilton. Small Business Project at the 6th World Chamber Congress held in Malaysia in June. • The “Ayurveda Expo 2009” International Exhibition and 2014 Symposium was held for the second successive year, in May • The ‘National Business Excellence Summit (NBES) 2014’ was • The NBEA 2009 event was organized for the sixth inaugurated and held on 21st and 22nd March at BMICH. consecutive year. • ‘INTRAD Expo – 2014’, the International Exhibition and Trade Fair and the ‘Arogya – 2014’ National Healthcare Exhibition were held together for the first time in May at the BMICH. 2010 • Conducted ‘NBEA – 2014’ for the 11th consecutive year at • ‘INTRAD EXPO – 2010’ was conducted. Hotel Hilton. • The seventh consecutive NBEA 2010 was held at the Hotel Hilton. 2015 • Monthly Bilateral Trade Sessions were initiated with Ambassadors and High Commissioners of Sri Lanka through • The program “Meet the Minister” was introduced for hosting “Meet the Ambassador” Program. a Minister at the Chamber on a monthly basis. • The NBEA was conducted for the 12th consecutive year at Hotel Hilton. 2011 • Ayurveda Expo 2015 and Symposium was held at BMICH for • The ‘Ayurveda Expo – 2011’ Indigenous Healthcare Exhibition the fifth successive year with foreign participation. Around and Symposium was held from 15th-17th July 2011, BMICH, 45,000 visited the exhibition during a 3 day period. with President of Sri Lanka, H.E. Mahinda Rajapaksa, as the • The NBES 2015 Competition was held for the 2nd year at honorary chief guest. BMICH. • ‘NBEA – 2011’ was conducted for the 8th consecutive year at Hotel Hilton. • The Sri Lanka – Bangladesh Business Co-operation Council was officiated. • National Chamber won the ‘Global Business Excellence Award 2011’ for its outstanding contribution towards business development. 2012 • The ‘Arogya – 2012’ National Healthcare Exhibition was organized for the 3rd consecutive time at BMICH. • ‘NBEA – 2012’ was conducted for the 9th successive year at Hotel Hilton.
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2016 2018 • The 57th Annual General Meeting of the Chamber was • The National Chamber of Commerce celebrates its 70th held at the Kingsbury Hotel, Colombo; Minister Hon. Eran Anniversary along with Independence. Wickramaratne - Deputy Minister of Public Enterprises and • 59th Annual General Meeting of the Chamber was held Development graced the event as Chief Guest. in January at Hotel Kingsbury, graced by the Hon. Prime • The Chamber kicked-off training programs in e-commerce Minister Ranil Wickramasinghe as Chief Guest. for regional female entrepreneurs, including differently- • Ayurveda Expo 2018 International Indigenous Healthcare abled persons. Exhibition and Symposium held in July at BMICH. • Ayurveda Expo 2016 – Indigenous Healthcare Exhibition and • Entrepreneur Awards 2018 – Western Province – conducted Symposium was held at BMICH, with President of Sri Lanka for the 3rd consecutive year by the National Enterprise Hon. Maithripala Sirisena as its Chief Guest. Development Authority (NEDA) and the National Chamber • Conducted NBEA 2016 for the 13th consecutive year at of Commerce of Sri Lanka and joined by World University Hotel Hilton. Service of Canada (WUSC) on 13 November 2018 at • Conducted the first ever ‘Entrepreneur Awards 2016’ – for Sri Lanka Foundation Auditorium. SMEs in the Western Province, in association with NEDA • Celebrating its 15th year “National Business Excellence (National Development Authority) on an invitation by NEDA. Awards 2018” was held at Hotel Hilton in December, graced by Chief Guest, Deputy Ambassador of European Union. • Under the ‘Meet the Ambassador’ – program, ambassadors 2017 from Oman, Bangladesh, Pakistan, Maldives, France, • The 58th Annual General Meeting of the Chamber was Vietnam, Hungary and European Union were hosted for concluded at the Kingsbury Hotel, in January, with the bilateral trade discussions at the National Chamber. presence of Hon. Faizser Mustapha, Minister of Provincial • Chamber supported the 4th edition of INTEX South Asia Councils and Local Govt. as Chief Guest and Dr. Harsha de 2018 (Textile and Apparel Exhibition) held in November 2018 Silva, Deputy Minister of Foreign Affairs as Guest of Honour. at BMICH Colombo. • Members of the Chamber were presented with ‘National Honours’ by the Government and felicitated by the National Chamber at Colombo Hilton Residences, with Hon. Karu 2019 Jayasuriya, Speaker, as Chief Guest. • The 60th Annual General Meeting of the National Chamber • Medical Healthcare Exhibition – “Mahajana Suwadhana” was of Commerce of Sri Lanka was held on Tuesday, 29 January held in partnership with the Ceylon College of Physicians and 2019 at Hotel Kingsbury, graced by the Hon. Deshabandu in commemoration of their 50th anniversary. Hon. Rajitha Karu Jayasuriya Speaker of the Parliament of Sri Lanka as Senaratne, Minister of Health, Nutrition and Indigenous Chief Guest, Hon. Eran Wickremaratne, State Minister of Medicine was invited as Chief Guest, which was held at Finance was the Guest of Honour. BMICH from 14-16th July 2017. • International Healthcare Exhibition 2019 was conducted at • ‘Entrepreneur Awards 2017’ for SMEs in Western Province the BMICH. The programme was titled “Suwa Denuma” and was organized for the second consecutive year, in was held from 26 -28th July at BMICH. association with NEDA (National Enterprise Development • Entrepreneur Awards 2019 – Western Province was Authority) on an invitation by NEDA; Chief Guest of the event conducted for the 4th consecutive year, by the National was Minister of Industry and Commerce and State Minister Enterprise Development Authority (NEDA) and the National of Industry and Commerce. Chamber of Commerce of Sri Lanka on 30th October 2019 • NBEA 2017, was organized for the 14th consecutive year, at the Sri Lanka Foundation Auditorium. and was held at the Hilton Hotel in Colombo, in December, • Celebrating its 16th year of Excellence, the “National with H.E. David McKinnon, High Commissioner of Canada as Business Excellence Awards 2019” was held at Hotel Hilton its Chief Guest. on 13th December 2019. The Chief Guest was H.E. Robina Patricia Marks, High Commissioner of South Africa.
7 THE NATIONAL CHAMBER OF COMMERCE OF SRI LANKA ANNUAL REPORT 2018/19 Spotlight on flagship events
CELEBRATING 71 YEARS OF SERVICE TO THE NATION, 2019 WAS MARKED AS A SPECIAL YEAR IN THE CALENDAR OF THE NATIONAL CHAMBER OF COMMERCE. THE HIGHLIGHTS OF THE YEAR INCLUDED OUR ANNUAL FLAGSHIP EVENTS, INCLUDING OUR 60TH ANNUAL GENERAL MEETING AND THE 16TH NATIONAL BUSINESS EXCELLENCE AWARDS. National Business Excellence Awards 2019 Our flagship award ceremony the ‘National Business Excellence Awards’ was conducted for the 16th successive year this time. The ceremony was a glamorous event held under the camaraderie of everyone present, as they enjoyed a night filled with entertainment while celebrating the winners of the awards. Organised at Hilton Hotel Colombo on the 13th of December 2019, the Chief Guest at the event was H.E. Robina Patricia Marks, High Commissioner of South Africa.
The ceremony was hosted amidst a large group of high- ranking business leaders, top corporations, Diplomatic Missions and other distinguished guests. Overall Excellence Award winners were, Kelani Valley Plantations PLC - Gold Winner, Sri Lankan Catering Limited - Silver Award Winner, JAT Holdings (Private) Limited - Bronze Award Winner. Over 100 awards and certificates were presented to winners of various sectors.
Entrepreneur Awards 2019 – Western Province The 2019 Entrepreneur Awards – Western Province was organised for the 4th consecutive year by the National Chamber of Commerce of Sri Lanka in association with the National Enterprise Development Authority. The ceremony was held in grand scale at the Sri Lanka Foundation premises on 30th October 2019. Chairman of NEDA Dr. Siraz Meerasahib graced the event as Chief Guest as well as other dignitaries. The event was attended by a large gathering of SME and large sector Entrepreneurs together with National Business Excellence Awards 2019 Government officials, top corporates and representatives.
The award ceremony was focused on Micro, Small, Medium and Large sector entrepreneurs in the fields of Industry, Manufacturing Sector, Agriculture Livestock and Fisheries Sector, Hospitality and Tourism and other services Awards were presented in the areas of Best Environmental Friendly Enterprise, Best Exporter, Best Productive Enterprise, Best Innovative Enterprise, Best Value Added Enterprise, Best Energy Efficiency Enterprise, Award for the Entrepreneur - Who has Provided Most Number of Jobs for Females, Award for the Best Woman Entrepreneur and Award for the Best Entrepreneur – Differently abled, all of which were presented to the best performing companies, across eight thematic areas.
The most celebrated award, the “Best Entrepreneur of Entrepreneur Awards 2019 the Year 2019 – Western Province” was presented to Wijaya Products (Pvt) Ltd. recognising their outstanding performance in 2019.
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60th Annual General Meeting The 60th AGM of the National Chamber of Commerce of Sri Lanka was held on Tuesday, 29th January 2019 at Kingsbury Hotel. The Chief Guest at the AGM was Hon. Deshabandu Karu Jayasuriya, Speaker of the Parliament of Sri Lanka along with Hon. Minister Eran Wickeramaratne, State Minister of Finance gracing this momentous occasion as the Guest of Honour. Besides the office bearers of National Chamber, the AGM was attended by Leaders of member organisations, Diplomats, Members of the Council, Past Presidents and other esteemed personalities from the business community.
International Healthcare Exhibition Predominantly targeting the healthcare sector, the International Healthcare Exhibition ‘Suwa Denuma’ was launched officially on the 18th of March at the Galadari Hotel and was honoured by the presence of Hon. Rajitha Senaratne, Former Minister of Health, Nutrition and Indigenous Medicine as Chief Guest.
The event took place at BMICH from the 26th to 28th of July 2019. The exhibition’s target profiles included Importers/Exporters, Manufacturers of Medicinal Products and Beauty Care products, Hospitals/Clinics/ Educational Institutions, Sports and Fitness Activities, Veterinary Clinics, Essential Services related to Medicine such as Insurance, IT, Transport, Manpower, Financing and Social Services to name a few. Official launch of the International Health Care Exhibition
9 THE NATIONAL CHAMBER OF COMMERCE OF SRI LANKA ANNUAL REPORT 2018/19 60th annual general meeting of the chamber
EXTRACTS FROM THE SPEECH MADE BY CHIEF GUEST, HON. KARU JAYASURIYA AT THE 60TH AGM
substantial trade deficit and the need for a timely and apt export development scheme for reversing the deficit situation.
Furthermore, he emphasized the importance of the country’s geographical presence, adding that our strategic location has a clear impact on receiving opportunities from international businesses as well as from world powers, as the country’s presence presents many reasons for receiving such global interest.
Drawing on the comparison between the per capita income of Japan and Sri Lanka at the time of independence, he pointed that the two countries had a somewhat slight variation of one dollar in this regard; whereas Japan has now progressed immensely, thus demonstrating the need for Hon. Karu Jayasuriya rapidly progressing with our country’s development.
Speaking to the audience on the 2018 political turmoil, he mentioned that the incidents of the previous October have Guest speaker Hon. Karu Jayasuriya, Speaker of Parliament set the country back in its development. He drew attention addressed those gathered at the 60th Annual General on the optimistic outlook that prevailed in 2015 when the Meeting of the National Chamber of Commerce. He two political parties merged even with different ideologies, commenced his speech by relaying a note of appreciation as to the different models of economies and development to the founding fathers of the Chamber, the outgoing the parties exchanged. President Mr. Sujeeve Samaraweera and office bearers, as well as relaying his wishes to the incumbent President Mr. He then added that the country required political stability, Asela de Livera. Referring to the hard work of the Chamber especially when instilling investor confidence. Such stability and its staff, Hon. Karu Jayasuriya stated that, “when you is also crucial for the continued progress of the tourism look at the Chamber Ladies and Gentlemen, you have to industry. Moreover, he redirected attention to the current fulfill the aspirations of your members, which you did very trade deficit the economy is facing based on our substantial well [thanks] to the leadership and the commitment by your spending on essential and non-essential imports and staff.” luxury imports. Reminiscing on the time of President Premadasa, he mentioned on the export development Hon. Karu Jayasuriya proceeded to address the recent scheme introduced at that time in resolving a large trade developments of the country’s economy and his views deficit. Redirecting his speech to present times, he then on the necessary means for achieving progress. He also mentioned his positive perception on the steps taken by referred to the political instability experienced in 2018, the Export Development Board and the improvement in and the importance of maintaining stability while working import figures as well. to make our economy attractive for investments and for the tourism trade. He explicitly mentioned the country’s
HE EMPHASIZED THE IMPORTANCE OF THE COUNTRY’S GEOGRAPHICAL PRESENCE, ADDING THAT OUR STRATEGIC LOCATION HAS A CLEAR IMPACT ON RECEIVING OPPORTUNITIES FROM INTERNATIONAL BUSINESSES AS WELL AS FROM WORLD POWERS, AS THE COUNTRY’S PRESENCE PRESENTS MANY REASONS FOR RECEIVING SUCH GLOBAL INTEREST.
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SPEAKING FURTHER, ON THE POLITICAL INSTABILITY FACED IN OCTOBER 2018, HE ADDRESSED THE CHAMBER ON THE IMPORTANCE OF BEING INVOLVED IN MATTERS OF NATIONAL IMPORTANCE. HE EMPHASIZED THAT THE CHAMBER RESERVES THE RIGHT TO EXPRESS VIEWS SUCH AS THOSE VIEWS PURVEYED ON THE OCTOBER DEBACLE. HE ADDED THAT SUCH VIEWS ARE USEFUL IN PROVIDING STRENGTH TO THE GOVERNMENT. HIS COMMENTS IN THIS REGARD, “AS A CHAMBER, WE WILL ALSO NEED TO BE HEAVILY INVOLVED IN MATTERS OF NATIONAL IMPORTANCE.
While mentioning the need to concentrate on SMEs he Concluding his speech, Hon. Jayasuriya presented a case expressed his hopes of encouragement for the sector upon which the audience could reflect. He added that, through the 2019 budget. Furthermore, he touched “There are several cities in the world having over 21 million upon the presence of non-performing Government in their population India, China and other parts of the world. institutions that are hindering the economy. However, as a There are cities [that] are not managed by the President, positive inclination, he expressed his positive views on the not by Prime Minister and not by the Speaker. These cities restructuring of Sri Lankan Airlines and further expressed, are managed by Mayors, extremely professionally.” that he is certain the government will consider all loss making bodies and their restructuring.
Speaking further, on the political instability faced in October 2018, he addressed the Chamber on the importance of being involved in matters of national importance. He emphasized that the Chamber reserves the right to express views such as those views purveyed on the October debacle. He added that such views are useful in providing strength to the government. His comments in this regard, “as a Chamber, we will also need to be heavily involved in matters of national importance. You have the right to express your views. I know regarding the October episode the Chamber expressed their opinion. It is useful and gives strength to us.”
Towards the latter part of his speech, Hon. Karu Jayasuriya expressed his delight on the role of the civil society during this time of upheaval and in preserving democracy. He also expressed his thoughts on the country’s judiciary system, referring to it as ‘independent and impartial’. ‘
Moreover, he mentioned that considerable strides have been made in improving the country’s human rights context with the HR Commission. He also added that the country has achieved public service independence, police service independence and an independent Bribery Commission which are performing satisfactorily.
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60th annual general meeting of the chamber
EXTRACTS OF THE SPEECH MADE BY GUEST OF HONOUR, MR. ERAN WICKRAMARATNE, FORMER STATE MINISTER OF FINANCE AT 60TH AGM
FURTHER STATING THAT THE CHAMBER’S MISSION INVOLVED TRADE PROMOTION SERVICES IN ADDITION TO DELIVERING THE RIGHT SUPPORT REQUIRED BY BUSINESS ENTERPRISES WITH A SPECIAL FOCUS ON DEVELOPING THE SME SECTOR BY EXPANDING THE LEVEL OF SKILLS AND KNOWLEDGE BY MEANS OF TRAINING PROGRAMS, CONDUCTED ANNUALLY ACROSS THE COUNTRY. Hon. Minister Eran Wickramaratne State Minister of Finance
At the 60th AGM held on 29th of January, 2019, Mr. He focused on the Chamber’s agenda, further stating that Eran Wickramaratne - Former State Minister of Finance the Chamber’s mission involved trade promotion services in addressed the audience as guest speaker. The following are addition to delivering the right support required by business key points and extracts from his speech. enterprises with a special focus on developing the SME sector by expanding the level of skills and knowledge by Mr. Wickramaratne emphasized on the services of the means of training programs, conducted annually across the Chamber and the government’s rapport with the Chambers country. He further added that the “chamber also submits and the private sector when seeking views and suggestions budget proposals collected from their membership to the over several areas of importance, which impact the growth Government and acts on their behalf on their trade issues of trade and the national economy at large. with the relevant sectors.”
Mr. Wickramaratne gave emphasis to the National Regional bilateral and multilateral trade agreements Chamber’s service in developing national enterprises, since have become pathways for increasing global trade and in its inception in the 1940s. He stated that, “…The National becoming part of the global value chain, and as stated by Mr. Chamber of commerce has emerged as a leading national Wickramaratne in his speech, the government is negotiating trade and industrial promotional body representing the terms on trade agreements with India and China and it is entire spectrum of industry, trade, commerce and services necessary to understand the reactions of the business in Sri Lanka.” community with regards to the agreements. He underlined
“…THE NATIONAL CHAMBER OF COMMERCE HAS EMERGED AS A LEADING NATIONAL TRADE AND INDUSTRIAL PROMOTIONAL BODY REPRESENTING THE ENTIRE SPECTRUM OF INDUSTRY, TRADE, COMMERCE AND SERVICES IN SRI LANKA.”
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SPEAKING FURTHER ON THE RELATIONSHIP BETWEEN THE GOVERNMENT AND THE PRIVATE SECTOR BUSINESSES MR. WICKRAMARATNE ADDED THAT THE GOVERNMENT CONTINUES TO MAINTAIN OPEN DIALOGUE WITH THE BUSINESS COMMUNITY AND THE CHAMBERS, FOR SEEKING IDEAS AND VIEWS WHEN PREPARING THE NATIONAL BUDGET PROPOSAL.
that the Government needs ‘to consult the private sector when trade policy decisions are taken’, since the ‘private sector is the engine of growth of the Sri Lankan economy’.
He stressed that a collective partnership between the Government and the private sector is crucial for the economy to progress and the need to consult both the Chamber and the business community with regards to key making policy and budgetary decisions. Speaking further on the relationship between the government and the private sector businesses Mr. Wickramaratne added that the government continues to maintain open dialogue with the business community and the Chambers, for seeking ideas and views when preparing the national budget proposal. He added that most proposals submitted are included in the budget proposal, with the National Chamber being a significant contributor in this regard.
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60th annual general meeting of the chamber
EXTRACTS OF THE SPEECH MADE BY MR. ASELA DE LIVERA, PRESIDENT OF THE NATIONAL CHAMBER AT THE 60TH AGM
the NES, he mentioned that it is centred on the concept of “Sri Lanka – An Export Hub Driven by Innovation and Investment”, and its focus has been weighted on several key sectors, which include ICT, wellness and tourism, spices, boat building, processed food & beverages.
SME Development It is a widely known reality that the SME sector remains the main driving force of the Sri Lankan economy, representing 75% of the country’s enterprises and is the source of 40% of the country’s employment opportunities and encompasses enterprises from diverse industries. Stressing on this reality, Mr. Livera also brought into light the lesser use of technology by SMEs and the sector’s limited access to funding due to lack of collaterals. He also mentioned that SMEs have a disconnection from the foreign trade market, President Asela de Livera especially export; however, several strategies are now being devised to make finances available.
Addressing on fragmentation theory he stated, “Cross In the commencement speech made by President of border production based on fragmentation theory NCCSL, Mr. Asela de Livera, he emphasised on the country’s is becoming popular in the SME’s spectrum. Due to need for stronger, more persistent measures in resolving technological advances various stages of manufacture could its economic downfalls as well as in the importance of take place in different countries. As a result semi-processed sound economic policies that could help stabilise economic goods may cross national borders many a time for these fundamentals towards achieving progressive growth. transactions, it therefore is of utmost importance to have Presenting his insights he also spoke of how our agriculture increased efficiency and to reduce cost of cross border based economy needs to be revived through new agro services.” methods, as well as by adding value to agricultural products. SME Enabling Policies The following content includes summarized excerpts and Policies that allow SMEs to connect with global markets citations from his speech made at the Chamber’s 60th should be introduced which encourage innovation, increase Annual General Meeting, held at the Kingsbury Hotel, amidst competitiveness, provide cheaper access to inputs, lessen political and diplomatic dignitaries and key persons from the red tape and reduce tariff and introduce nontariff schemes business community. through Preferential Trade Agreements etc. Emphasizing on the need for SME-friendly policies he also added that National Export Strategy “regional and bilateral trade agreements need to pave the Highlighting the Government’s efforts for an inclusive and way for SMEs to be meaningfully integrated with global value comprehensive National Export Strategy (NES) Mr. Livera chains”. mentioned the importance of reviving the NES at regular intervals in order to facilitate timely changes. Speaking on
IT IS A WIDELY KNOWN REALITY THAT THE SME SECTOR REMAINS THE MAIN DRIVING FORCE OF THE SRI LANKAN ECONOMY, REPRESENTING 75% OF THE COUNTRY’S ENTERPRISES AND IS THE SOURCE OF 40% OF THE COUNTRY’S EMPLOYMENT OPPORTUNITIES AND ENCOMPASSES ENTERPRISES FROM DIVERSE INDUSTRIES.
14 THE NATIONAL CHAMBER OF COMMERCE OF SRI LANKA ANNUAL REPORT 2018/19
He further added that the Chamber works closely with He added that regional counterparts continue to offer provincial and district chambers in creating a favorable lower taxes, tax exemptions and additional incentives for environment for SMEs, and that effective measures such investments in preferred business sectors, which becomes as the Western Province Entrepreneurship Awards and the a challenge in being competitive. In addition, ease of doing Chamber’s flagship event – the National Business Excellence business has become a key aspect within the decision Awards held annually has paved the way for MSMEs to be making criteria. recognized at the National level and compete with larger businesses. Media Responsibility in Economic Development Mentioning the contribution that media can essentially A crucial factor mentioned in his speech was the shortages play in economic development, Mr. Livera emphasized that of skilled labour and unemployment which has become a print, digital and electronic mediums have the capacity to hindrance for manufacturing and service industries in the effectively promote the various loan schemes, technical country. Making a recommendation he added that, “It is assistance programs and trade development programs in vital for Sri Lanka to have policies to increase skilled labour operation which are run by the government and various availability directed towards export related industries.” establishments, paving the way for business opportunities.
In the second half of his speech he took time to talk about He expressed the rarity in media business programs that the various trade portals which were created to increase focus on starting small businesses and on marketing cross-border efficiency. products locally. Commenting on this he then made a sincere request to media personnel to look into this aspect Trade Portals with a positive outlook. National Single Window (NSW) Future of Agriculture Industry Providing key insights on the NSW he stated in his speech Speaking on agriculture, he spoke of the vital role it plays that the NSW was created with the use of Information in our agriculture based economy and the existence of Technology and Telecommunication platforms, to facilitate irrigation systems and waterways unparalleled to other import, export and transit bureaucracies. The NSW countries which testifies to our history’s resilience against provides a “single point for the submission of standardized adverse weather that impacts agriculture. He added that information and documents to fulfil official demands and new agricultural methods should be encouraged, taking in facilitate logistics.” to example Dubai, which produces crops and exports to its region despite being a desert country. He added that the NSW provides a single point for payment, while improving “business process in government Mentioning some strategic methods he spoke of green agencies and speedier turn-around for approvals and houses and tunnel agriculture which can be adopted to decisions”. Furthermore he stated, that it provides traders “save water, and control the environment. Special lighting and their agents to connect with various Ministries and can be adopted even to stimulate the sun movements to to electronically submit license applications and custom help produce seeds.” declarations. Mr. Livera added that, “Unfortunately 50 to 60 % of the Trade Information Portal (TIP) production is lost due to unavailability of proper storage, Designed with the purpose of enabling trade and cold rooms and proper transport facilities.” Adding further to investment, the web-based portal makes available all cross- this, he stated, that these benefit farmers in selling directly, border trade regulatory information, at the push of a button. bypassing middlemen.
Investment Promotion Concluding his speech, Mr. Livera stated that the National Stressing on the four types of investors with differing Chamber of Commerce is considering an agricultural reactions towards the investment policies and exhibition organized annually to promote agriculture, find administration aspects of a country, Mr. Livera presented a domestic and foreign markets, and educate farmers on few conditions which he recommends should be pursued modern methods of agriculture. when influencing the decision making process of FDIs: a favourable and steady exchange rate, a skilled labour force, physical infrastructure such as availability of electrical power and good logistics, strong Macroeconomic conditions and political Stability were mentioned as such recommended aspects.
15 THE NATIONAL CHAMBER OF COMMERCE OF SRI LANKA ANNUAL REPORT 2018/19
60th annual general meeting of the chamber
EXTRACTS OF THE SPEECH MADE BY OUTGOING PRESIDENT SUJEEVE SAMARAWEERA, OF THE NATIONAL CHAMBER AT THE 60TH AGM
It has been noted that owing to the credibility and recognition earned by the Chamber, each year, there has been a significant increase in the membership of the Chamber, as witnessed by the many Foreign Delegation/ visitors, Diplomatic Personnel, Government Ministers and Senior Officials who have been patronizing our Chamber regularly.
The Chamber’s trail blazer program “Meet the Ambassador” Program has become one of the most iconic events of the Chamber today, and the Ambassadors and High Commissioners of France, Indonesia, Maldives, Oman, Pakistan , Bangladesh, Hungary, Vietnam and The European Union the Chamber hosted, where the diplomats moved freely with the business community, were able to have close dialogue with each other. The “Meet the Outgoing President Sujeeve Samaraweera Ambassador” Programme has developed Trade between many countries and many local entrepreneurs who have benefited through the understanding of business practices in exporting countries. The importance of business Good Evening Ladies & Gentlemen, acquirements / understanding and promoting the country to Representatives of the Ministry of Foreign Affairs and the I welcome distinguished guests at the Head Table – Our Ministry of Commerce between other countries, is vital. Chief Guest, Hon. Deshabandu Karu Jayasuriya – MP, Speaker of Parliament, Guest of Honour, Hon. Eran Major Events Wickramaratne, State Minister of Finance & Mass Media, “Ayurveda Expo 2018” in July last year, held at the BMICH, Diplomats, Senior Government Officials, Media and our own was attended by Hon. Minister of Health, Nutrition & member companies for their presence at this AGM. Indigenous Medicine as Chief Guest, other Ministers, including a surprise visit by H.E. the President, Maithripala We have gathered today to celebrate the 60th AGM of the Sirisena. National Chamber of Commerce, and we warmly welcome all of you to this significant event. Our flagship event “Business Excellence Awards 2018 “ was conducted for the 15th consecutive year at the Colombo The National Chamber of Commerce of Sri Lanka has Hilton, graced by the Deputy Ambassador of the European served the business community for the last 7 decades. It Union, Mr. Thorsten Bergfrede as Chief Guest and was has been an honour and privilege for me to have served joined by the Ambassador of France, HE. Eric Lavertu, to in this most illustrious and recognized Chamber of the present the “Overall Excellence Gold Award” to the Winner. country. “Entrepreneur Awards 2018”- Western Province, was At the end of my two year tenure as President of the conducted for the Small, Medium and Micro Entrepreneurs National Chamber of Commerce, it gives me great of the Western Province, for the third consecutive year, pleasure, to highlight some of the significant activities of on an invitation extended by the National Development the Chamber, during the period. Authority of the Ministry of Industry & Commerce.
THE NATIONAL CHAMBER OF COMMERCE OF SRI LANKA HAS SERVED THE BUSINESS COMMUNITY FOR THE LAST 7 DECADES. IT HAS BEEN AN HONOUR AND PRIVILEGE FOR ME TO HAVE SERVED IN THIS MOST ILLUSTRIOUS AND RECOGNIZED CHAMBER OF THE COUNTRY.
16 THE NATIONAL CHAMBER OF COMMERCE OF SRI LANKA ANNUAL REPORT 2018/19
I AM HONOURED TO HAVE SERVED AS THE 32ND PRESIDENT, IN ONE OF THE MOST RESPECTED AND HIGHLY RECOGNIZED CHAMBERS IN THE COUNTRY AND WITH A SENSE OF PRIDE,
On my initiative, the Chamber was awarded Membership of The Chamber’s Mandate BRICA, a powerful organization in China promoting business - Creating a conducive environment to conduct business and investment among its 27 member countries , through activities. its local affiliate, Hairong Investments Int’l, Pvt Ltd in - Challenge the Government in any area which is Sri Lanka. detrimental to the business activities and the country as a whole. Increase in SME Activities - Support the Government in timely new development The year under review, has recorded a significant increase initiatives taking a non-political view. in the SME activities carried out by the Chamber with many training programs conducted in the outstations, island- The Chamber will do everything possible to make its wide, to develop and enhance the skills and knowledge of businesses competitive, productive and sustainable the Small, Medium and Micro sectors on various subjects. and play a key role in the development of the economy One such program was a workshop on “Business Startup” in Sri Lanka, by working with all stakeholders. However, conducted in Galle which recorded a very high participation; lower growth rates of our trading partners in other major These programs will be continuous and conducted with the countries and unrest in the middle east, rising labour costs support of Regional Chambers, sponsored by State Banks present to us, a challenging year ahead. The National and other institutions. Chamber fully endorses the Government Policies for a Close Rapport with Government better future for Sri Lanka, which is the mandate of the National Chamber. The Chamber maintains close connections with Government bodies viz Sri Lanka Export Development In conclusion, I thank the Government, Ministers, Ministry Board, Department of Commerce, Ministry of Industry officials, Diplomatic Missions, private institutions and others & Commerce, Ministry of Finance, Ministry of Health and who helped the National Chamber in numerous ways. I also other institutions and the National Chamber is often invited thank the Council, Secretary General & Secretariat Staff to participate at special meetings/forums on Policy Matters and all our Member Companies for their kind support and and Trade. Further, the Chamber assists the membership goodwill extended to the Chamber. in taking up their business issues with the relevant Government authorities and acts on their behalf to address business issues faced by them. I am honoured to have served as the 32nd President, in one of the most respected and highly recognized Chambers in the country and with a sense of pride, I hand over the NES, Single Window, national policies and inter ministerial mantle to our next President of the Chamber, Mr. Asela de coordinating committee to be established in order to focus Livera, a competent and highly respected business leader on development related subjects. who will carry on the mandate of the Chamber and I offer my congratulations to him. Promoting an Ethical Business Environment in Sri Lanka As I step down, I wish the National Chamber of Commerce Three areas of ethical business in Sri Lanka; of Sri Lanka to forge ahead from strength to strength in the 1. Promoting innovation of new products and services years to come and attain greater heights! 2. Youth empowerment 3. Protection of climate change
The Chamber’s view is that the business community should promote and support ethical business practices, not only on financial terms free of corruption, but by ensuring rights and protection of others while being more concerned of their social commitments and ensuring values much needed for a better society.
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LEADERSHIP THE NATIONAL CHAMBER OF COMMERCE OF SRI LANKA ANNUAL REPORT 2018/19 president’s Message
Asela de Livera President The National Chamber of Commerce of Sri Lanka THE NATIONAL CHAMBER OF COMMERCE OF SRI LANKA ANNUAL REPORT 2018/19
I AM PLEASED TO PRESENT ON BEHALF OF THE COUNCIL, THE ANNUAL REPORT FOR THE YEAR 2019 TITLED, “EMPOWERING YOUR DREAMS”. I AM HAPPY THAT THE NATIONAL CHAMBER OF COMMERCE OF SRI LANKA WAS ABLE TO MAKE A SIGNIFICANT CONTRIBUTION TO THE ECONOMIC AND BUSINESS DEVELOPMENT OF THE COUNTRY DURING THE YEAR 2019. THIS GAVE ME THE PRIVILEGE TO CONTINUE THE GOOD WORK MY PREDECESSORS BEGAN AND AFFORDED ME THE OPPORTUNITY TO SERVE OUR BUSINESS COMMUNITY IN A MEANINGFUL WAY.
2019 was a greatly challenging year Sri Lanka as the country The output in agriculture, forestry and fishing retraced is still continuing to recover from the devastation caused by during the year, grew slightly at 0.4%, compared to the the bombing of 21st April 2019. As we continue to recover growth experienced in 2018. Industry and Service related from the after effects of the attacks, we are reminded of activities showed growth rates 3.3% and 2.8% respectively. the need for a unified nation, and how important it is to The contribution to the GDP from the main sectors of the maintain peace and harmony among the ethnic groups economy recorded as 60% from the Services, 26.8% from across the island nation. As a result of both the political industrial activities, 6.9% from Agriculture and 6.2 percent turmoil of 2018/2019 and the bombings, economic from taxes less subsidies. growth slowed, falling behind the projected growth and the progressive momentum seen at the beginning of 2018. Subsequent to the Easter bombings, the tourism industry experienced a drastic slowdown as earnings fell significantly Completing the first year of my term as President, I am during the second quarter of the year owing to a drop happy to say that the Chamber has performed well, despite in tourist arrivals. The Central Bank anticipates that the challenges, working hard to expedite planned activities, negative ramifications of the attacks will be short-lived and organizing our capacity building programs and providing expected growth within this sector. our services to the business community and SMEs across the island. In 2019, we hosted many diplomats and foreign The tax cuts and concessions introduced recently is seen business delegations with the hope of creating and as a welcome respite. It is hoped that the reduced taxes will extending bilateral cooperation between nations from the encourage consumption and increase disposal incomes. Asian and European countries. The reduction of the VAT rate is expected to benefit the tourism industry and related sub-sectors. It should be noted, that 2019 marked our 71st Anniversary, as well as the 61st Annual General Meeting. Our journey Meanwhile, the growth projection for the global economy which began in 1948 continues to grow, as we train was reduced to 3% from 3.2% envisaged by the IMF’s World and provide support services to over 700 corporate Economic Outlook. Trade indecisiveness, geopolitical organizations and approximately 1500 SMEs and 500 micro instability and low productivity are some of the reasons for SMEs. the slowdown of the global economy.
In 2019, we continued to monitor the performance The Chamber held its 60th Annual General Meeting on indicators of economic growth throughout the year, gaging the 29th January 2019 at Kingsbury Hotel which was the progress of our economy while observing policy the main highlight to start the New Year. The gathering reforms, industry changes in the business environment and was addressed by Hon. Deshabandu Karu Jayasuriya – macro-economic indicators. Speaker to the Parliament of Sri Lanka who graced the event as the Chief Guest. The event was also addressed Given the noticeable drop in the GDP growth in the first by Hon. Eran Wickramaratne – State Minister of Finance half of the year, it was encouraging to see the economy who was the Guest of Honour. The AGM was attended by beginning to progress slowly influenced by a growth in other distinguished guests including Heads and Officials services in wholesale and retail trade as well as in industrial of Diplomatic Missions, Business Leaders and Council activities given by the Department of Census and Statistics. Members.
IT SHOULD BE NOTED, THAT 2019 MARKED OUR 71ST ANNIVERSARY, AS WELL AS THE 61ST ANNUAL GENERAL MEETING. OUR JOURNEY WHICH BEGAN IN 1948 CONTINUES TO GROW, AS WE TRAIN AND PROVIDE SUPPORT SERVICES TO OVER 700 CORPORATE ORGANIZATIONS AND APPROXIMATELY 1500 SMES AND 500 MICRO SMES.
21 THE NATIONAL CHAMBER OF COMMERCE OF SRI LANKA ANNUAL REPORT 2018/19 president’s Message
WE BELIEVE THAT OUR NEXT GOAL SHOULD BE IN WORKING TOWARDS A DIGITAL REVOLUTION AMONGST THE SME SECTORS TO MOTIVATE THEM TO ADOPT DIGITAL TECHNOLOGY IN CREATING BUSINESS CONNECTIONS TO PURSUE CROSS BORDER TRANSACTIONS. ADDITIONALLY, WE NEED TO ENCOURAGE THEM TO REAP THE BENEFITS OF ELIMINATING COST AND TIME CONSUMING PROCESSES WHILE USING DIGITAL INFRASTRUCTURE TO FIND NEW WAYS OF EXPANDING BUSINESS OPPORTUNITIES.
2019 marked the 16th year of our “National Business We believe that our next goal should be in working Excellence Awards”, the nation’s benchmark award towards a digital revolution amongst the SME sectors to ceremony designed to recognize, reward and inspire our motivate them to adopt digital technology in creating entrepreneurs and businesses in the SME sector as well business connections to pursue cross border transactions. in the overall business community, helping them to reach Additionally, we need to encourage them to reap the the next phase of growth in enhancing their objectives benefits of eliminating cost and time consuming processes and standards. The award ceremony was held at the Hilton while using digital infrastructure to find new ways of Hotel on the 13th of December with H.E. Robina Patricia expanding business opportunities. With this concept Marks, High Commissioner of South Africa as the Chief in mind, the Chamber embarked this year to develop a Guest. platform aimed at supplying Sri Lankan companies to promote their products and services into the Global Market. Another key event held during the year was the “International Health Care Exhibition 2019” organized in Sri Lanka is best known currently for its tea, rubber, coconut collaboration with the Ministry of Health, Nutrition and products and apparels in the global market, while the Indigenous Medicine. This event was held on the 26th July country has many other unique products that only 2019 at the BMICH, with the Hon. Dr. Rajitha Senarathna as Sri Lanka can offer. Most of them are Eco friendly and made Chief Guest. by small time manufacturers. Sadly, there is no viable digital platform to encourage global traders in connecting with the The next event in our 2019 calendar was organizing the suppliers in Sri Lanka. This platform being developed will Entrepreneur Awards for the Western Province. The award connect Sri Lankan suppliers and our unique products with ceremony was conducted for the 4th consecutive year the rest of the world. Training programs to support such in association with the National Enterprise Development export –oriented Sri Lankan companies as well as training Authority (NEDA) and was held on the 30th October 2019, to enhance their products, services and communication to at the Sri Lanka Foundation Auditorium. This event gives meet export standards were initiated. This new platform will an emphasis to many SMEs to enhance their productivity, be further developed during 2020 to make a significantly competitiveness and management skills. positive effect in promoting foreign trade and earn valuable foreign exchange to Sri Lanka which could create a new era The Chamber conducted many seminars to disseminate for Sri Lankan products in the Global Market. expert knowledge on business opportunities available, how to restructure business activities under the current world During 2019 the Chamber welcomed Ambassadors/High economic situation and government policy changes with Commissioners of Myanmar, Malaysia, Namibia, Poland, regard to trade and business. We conducted many training France and Australia for the purpose of strengthening and capacity building programs to educate employees of bilateral relations while providing our business community member organizations on export and import activities, an opportunity to have close dialogue with the Diplomats achieving excellence in business, motivations of employees and Trade Officials. The Chamber also hosted a number of and tax matters both in Colombo and outstations. We foreign delegations from Bangladesh, India, China, Poland, provided the membership as well as the general business Myanmar, Australia, and France. These delegations helped community with trade information viz-a-viz export markets promoting trade and investment while strengthening good and investment opportunities through information bulletins relations between our nations in exchanging information. and assisted members and our staff to participate in The Chamber sent its Secretary General for the Contract overseas trade activities. Signing Ceremony in the UAE as part of the high-level
22 THE NATIONAL CHAMBER OF COMMERCE OF SRI LANKA ANNUAL REPORT 2018/19
DURING 2019 THE CHAMBER WELCOMED AMBASSADORS/HIGH COMMISSIONERS OF MYANMAR, MALAYSIA, NAMIBIA, POLAND, FRANCE AND AUSTRALIA FOR THE PURPOSE OF STRENGTHENING BILATERAL RELATIONS WHILE PROVIDING OUR BUSINESS COMMUNITY AN OPPORTUNITY TO HAVE CLOSE DIALOGUE WITH THE DIPLOMATS AND TRADE OFFICIALS.
delegation which officially made Sri Lanka a participant at the “World Expo 2020 Dubai”
I must place on record, my sincere gratitude to my fellow Office Bearers, Council Members for their commitment and untiring efforts to ensure success last year. A very special word of thanks to the Secretariat headed by Secretary General, Mr. Bandula Dissanayake for his commitment and dedication and the Secretariat Staff for their untiring support given to me during the year, 2019. I also thank all those who supported the Chamber and for their continued interest in our activities, the many State Officials including Hon. Ministers, the Diplomatic Community and many other Organizations and individuals who contributed towards our success. These individuals and Organizations supported the Chamber to take great strides and achieve greater heights during 2019.
Mr. Asela de Livera President
23 THE NATIONAL CHAMBER OF COMMERCE OF SRI LANKA ANNUAL REPORT 2018/19 review by the Secretary general
Bandula Dissanayake Secretary General / CEO The National Chamber of Commerce of Sri Lanka
24 THE NATIONAL CHAMBER OF COMMERCE OF SRI LANKA ANNUAL REPORT 2018/19
IT IS A PRIVILEGE TO PRESENT OUR ANNUAL REPORT FOR THE YEAR 2019, AS WE MARK 71 YEARS OF SERVICE IN THE DEVELOPMENT OF NATIONAL ENTERPRISES. AS CEO AND SECRETARY GENERAL OF THE CHAMBER I AM PLEASED THAT IN THE OPERATIONAL YEAR WE EXPEDITIOUSLY COMPLETED OUR PLANNED EVENTS, ASSISTING OUR MEMBERS WITH VARIOUS SUPPORT SERVICES AND DEVELOPING THE POTENTIALS OF OUR SMES.
While the Chamber’s AGM remained the most highlighted sentiment dropped drastically, recording a drop in tourist event in our calendar, we were able to successfully arrivals followed by a drop in earnings. Food and Beverage accomplish several key events planned for the year. The Services, Transportation of goods, Warehousing, Wholesale International Healthcare Exhibition, the Entrepreneur and Retail Trade activities were also impacted affecting Awards-Western Province and the National Business economic growth during the first half of 2019. Excellence Awards of 2019 were held with much success. As envisaged, we were able to expedite several Capacity Despite the negative outlook, the trade deficit reduced Building events across the island, as well as conduct several significantly from January to October of 2019 compared workshops on many areas of business. to the previous time period; caused by a drop in import expenditure and a rise in earnings from exports. As per the Global Economic Prospects Report, the flagship paper of the World Bank, global growth projection was It must also be noted that despite the events of 2019, the downgraded to 2.6% from the earlier forecast of 2.9%, at country has already begun to benefit from several national the beginning of 2019, as a result of weaker international initiatives, most importantly in forming the right digital trade, manufacturing and investment. Growth is expected infrastructure and streamlining of processes in conducting to reach 2.8% by 2021, due to modest global recovery import and export (trade) related business with ease. In in financing conditions as well as Emerging Market and this regard, the Trade Information Portal launched in 2018 Developing Economies (EMDEs), which were in stressful provides a single point of access in obtaining regulatory financial situations previously. However EMDEs growth will and process related information, making trade regulations continue to be under pressure due to subdued investments. transparent and easily accessible. Risks continue to remain show possibility of escalating trade tensions among major economies and potential While major industries and large organizations continue to slowdown of growth rates. Policy actions to enhance expand, we must not stray away our focus from the SME private investments, productivity, increasing access to sector. Small and Medium Enterprises make up 75 per cent markets and technology, boosting quality of infrastructure of the country’s businesses and has employed 45 per cent and governance, overall improvement of the business of the national workforce. However, despite this, the sector environment, improvement of social safety nets and active continues to experience challenges in finding sources of labour market policies are much needed to recover from finance, innovation and market expansion. While there this situation. This condition may adversely affect Low exists a National policy framework for SME development, Income Countries if corrective policy measures are not the Government must reinforce it taking a serious stance taken in time. on providing a SME - friendly environment through the right policies that reflect the true nature of the SME sector; At the beginning of 2019, the Sri Lankan economy taking into serious account the growth of each industry as continued to grow, yet at a moderate pace. The country well as reaching SMEs at provincial and grass-root levels. was then hit by the most devastating terror attack since the war ended a decade ago. The Tourism sector was hit hard by its negative effects as tourism confidence and
AT THE BEGINNING OF 2019, THE SRI LANKAN ECONOMY CONTINUED TO GROW, YET AT A MODERATE PACE. THE COUNTRY WAS THEN HIT BY THE MOST DEVASTATING TERROR ATTACK SINCE THE WAR ENDED A DECADE AGO. THE TOURISM SECTOR WAS HIT HARD BY ITS NEGATIVE EFFECTS AS TOURISM CONFIDENCE AND SENTIMENT DROPPED DRASTICALLY, RECORDING A DROP IN TOURIST ARRIVALS FOLLOWED BY A DROP IN EARNINGS.
25 THE NATIONAL CHAMBER OF COMMERCE OF SRI LANKA ANNUAL REPORT 2018/19 review by the Secretary general
IN THE YEAR UNDER REVIEW, THE CHAMBER ORGANIZED CAPACITY BUILDING PROGRAMS IN MULTIPLE LOCATIONS OF THE COUNTRY, WITH THE PARTICIPATION OF MANY ENTREPRENEURS. REGIONAL SEMINARS AND WORKSHOPS FORM A KEY SEGMENT OF OUR ANNUAL AGENDA, AS WE INVITE EXPERIENCED AND ADEPT SPEAKERS TO EDUCATE AND TRAIN SMALL AND MEDIUM ENTERPRISE ENTREPRENEURS AND TO FAMILIARIZE THEM WITH TECHNICAL ASPECTS IN BUSINESS.
Access to investment remains a major constraint for SMEs, Friendly Enterprise, Best Exporter, Best Productive as lack of collaterals and high interest rates have impeded Enterprise, Best Innovative Enterprise, Best Value Added funding opportunities. The Government needs to intervene Enterprise, Best Energy Efficient Enterprise, Award for the in creating policies that facilitate more SME friendly Loan Entrepreneur - Who has provided most number of Jobs Schemes through private finance institutions that are for Females, Award for the Best Woman Entrepreneur and realistic, in terms of a diverse annual turnover base for Award for the Best Entrepreneur – Differently abled. In eligibility and flexible guarantor schemes. 2019, the Award Ceremony was held on a grand scale and was attended by a large gathering of SME and large sector Another key aspect in developing the sector is education Entrepreneurs, Government officials and Top Corporate and awareness. This is where the Chamber plays a role representatives. with tremendous responsibility. Annually, we host Regional Workshops and Programs to educate and train enterprises This annual exercise builds healthy competition amongst and owners in various aspects of business. From starting enterprises, to be the best that they can, getting a business to understanding, production, manpower recognition, exposure as well as commendation. We believe planning, managerial skills, finance, to imparting knowledge that the Award Ceremony encourages others to develop on technical skills, the Chamber creates awareness on a their business processes and functional areas of business, regional scale. taking into consideration the behaviour of those that succeed. In the year under review, the Chamber organized Capacity Building Programs in multiple locations of the country, with Every year, the Chamber hosts the National Business the participation of many entrepreneurs. Regional Seminars Excellence Awards, the National benchmark in rewarding and Workshops form a key segment of our Annual Agenda, the Best of the Best in our business community. This as we invite experienced and adept speakers to educate prestigious Annual Award ceremony applauds those who and train Small and Medium Enterprise entrepreneurs and have directly contributed to the growth of our economy, to familiarize them with technical aspects in business. showing great progress and resilience amidst tough Taking the form of one day or half day workshops these challenges. Over a 100 awards were presented to winners knowledge dissemination and training sessions enable across several categories including three exceptional MSME entrepreneurs to hone many skills in developing their companies that received Gold, Silver and Bronze awards in businesses. overall excellence, selected by a panel of Sri Lanka’s best and brightest business minds. In addition, the Chamber together with NEDA hosts our annual “Entrepreneur Awards” designed for Micro, Small, Not limited to educating and awareness programs, the Medium and Large sector entrepreneurs in the fields Chamber continues to host diplomats under our signature of Industry, Manufacturing, Agriculture Livestock and “Meet the Ambassador Program, where the chamber Fisheries, Hospitality and Tourism and other services. hosts ambassadors and honorary consuls of various Awards were presented in the areas of Best Environmental Nations and their Delegations who visit the island, for
OVER A 100 AWARDS WERE PRESENTED TO WINNERS ACROSS SEVERAL CATEGORIES INCLUDING THREE EXCEPTIONAL COMPANIES THAT RECEIVED GOLD, SILVER AND BRONZE AWARDS IN OVERALL EXCELLENCE, SELECTED BY A PANEL OF SRI LANKA’S BEST AND BRIGHTEST BUSINESS MINDS.
26 THE NATIONAL CHAMBER OF COMMERCE OF SRI LANKA ANNUAL REPORT 2018/19
DURING THE YEAR, SEVERAL BILATERAL During the year, several Bilateral MOUs came into effect. MOUS CAME INTO EFFECT. THESE INCLUDED These included an agreement between the National Chamber and Polish Chamber of Commerce, between AN AGREEMENT BETWEEN THE NATIONAL the National Chamber and the Quanzhou Chamber of CHAMBER AND POLISH CHAMBER OF Commerce. In addition, two MOUs were signed with the National Chamber Youth Forum and Sri Lanka Chamber of COMMERCE, BETWEEN THE NATIONAL Pharmaceutical Industry. CHAMBER AND THE QUANZHOU CHAMBER OF COMMERCE. IN ADDITION, TWO MOUS In conclusion I would like to thank the President and Office Bearers of the Chamber for their invaluable leadership WERE SIGNED WITH THE NATIONAL CHAMBER and insights during 2019, the Council for their hard work, YOUTH FORUM AND SRI LANKA CHAMBER OF my Operations Team for their dedicated service, and to PHARMACEUTICAL INDUSTRY. the Chamber members I extend my gratitude for your confidence in us. the exchange of business and industrial information The Chamber looks forward to an eventful and productive and for the pursuit of bilateral cooperation. In 2019, the year in 2020, as we continue to serve our members and Chamber hosted Ambassadors/ High Commissioners the business community with increased confidence and from Myanmar, Malaysia, Namibia and Australia. Bilateral commitment. discussions on trade and investment were discussed with high-level diplomats with the participation of Chamber representatives and members of respective delegations.
As another step in this regard, we assist business Bandula Dissanayake delegations, conduct meetings between the Chamber Secretary General / CEO and delegation representatives, to discuss important areas of Sri Lankan business, helping them understand and gauge our commercial sectors and regulations. In the year under review, we had several foreign delegations from various parts of the world, including China, Hungary, India, Bangladesh, Iran and Malaysia. These Delegations included Governmental, Diplomatic Officials and members of various institutions. Discussions were mostly based on prospective business development initiatives and economic cooperation.
Focusing on the 2019 Annual General Meeting, the Chamber hosted its 60th AGM with Hon. Deshabandu Karu Jayasuriya, Speaker of the Parliament of Sri Lanka, with Hon. Minister Eran Wickramaratne, State Minister of Finance as Chief Guest and Guest of Honor, respectively. The event was attended by top ranking leaders of member organizations, diplomats, members of the council, past presidents and other esteemed personalities from the business community.
27 THE NATIONAL CHAMBER OF COMMERCE OF SRI LANKA ANNUAL REPORT 2018/19 The executive team
Mr. Asela de Livera President Heading the National Chamber of Commerce of Sri Lanka as its President, Mr. Livera is first and foremost an Engineering professional. He holds the National Diploma in Technology (Electrical Power) and Diploma in Refrigeration (South Bank University, UK). A Member of the Institute of Refrigeration (UK), he is also the Chairman/ Managing Director of Koolair Group of Companies, with 35 years of experience in his area of expertise.
Mr. Nandika Buddhipala Senior Deputy President Mr. Nandika Buddhipala – Senior Deputy President FCA(SL), FCCA (UK), FCMA(SL), FCMA (Australia), MCIS (UK), SA Fin(Australia), IMA (USA), BSc- Bus Admin, PG Dip – Management, MBA, MA-Fin, Economics, MSc – Fin. Mathematics
Nandika Buddhipala is the Chief Financial Officer of Commercial Bank of Ceylon PLC since January 2008. He has over 25 years’ experience in Audit and Assurance, Telecommunication and Banking Industry.
Mr. Deepal Nelson Deputy President With a history of over 30 years of business experience in the fields of manufacturing, management, administration and innovative marketing, Mr. Nelson is a respected and recognized professional within the Apparels, Cosmetics and Healthcare sectors of the country.
28 THE NATIONAL CHAMBER OF COMMERCE OF SRI LANKA ANNUAL REPORT 2018/19
Mr. Dhammika Gamini Wimalasuriya Honorary Treasurer A Fellow Member of the Institute of Chartered Accountants of Sri Lanka and the Institute of Certified Management Accountants of Sri Lanka, Mr. Wimalasuriya was also a Past President of the Chartered Accountants Benevolent Society. He now holds the post of Honorary Treasurer at the Chamber.
Mr. Anura Warnakulasooriya Honorary Secretary Mr. Warnakulasooriya has been Managing Director of Midaya since 2005 and has been instrumental in transforming the company to a business that manufactures high value, handmade niche ceramics. He is also the President of the Sri Lanka Ceramics and Glass Council and Managing Director of two other organizations.
29 THE NATIONAL CHAMBER OF COMMERCE OF SRI LANKA ANNUAL REPORT 2018/19
The executive team PROFILES
Mr. Asela de Livera of Ogabo Global Parfumerie and Managing Director of President Apeksha IVF and Research Center – a medical venture focusing on Women’s Health and Fertility treatment in Sri With a strong professional background in Engineering, Mr. Lanka. And he is also the Chief Growth Strategist of GSH Asela de Livera holds the National Diploma in Technology Colombo, a member of the Australian Great Southern Hotel (Electrical Power) and Diploma in Refrigeration (South Bank group. University, UK). He is the Chairman/Managing Director of Koolair Group of Companies with over 35 years’ of Mr. Dhammika Gamini Wimalasuriya experience in the field. In addition, he is also a Member of the Institute of Refrigeration (UK). Honorary Treasurer Mr Gamini Wimalasuriya is a Fellow Member of The Institute He is also the President of Sri Lanka Bangladesh Business of Chartered Accountants and The Institute of Certified Co-operation Council of the National Chamber of Management Accountants of Sri Lanka, and was a Past Commerce of Sri Lanka. Mr. Livera also represents the President of Chartered Accountants Benevolent Society. National Chamber at the Sri Lanka Energy Managers He is the Chief Financial Officer/ Director of Akbar Brothers Association. Group of Companies and has served the company for the past 28 years. He was the first Accountant of Mahaweli Mr. Nandika Buddhipala Development Board. After a stint of 5 years in the Fiji Senior Deputy President Islands as an Accountant/ Tax Manager, he returned to Sri Lanka and held the positions of Financial Controller He is the Chairman of the Banking & Financial Services of Delmege Forsyth & Company Ltd, and The General Sector Committee, Chairman of the Technical Committee Manager, H Don Carolis& Sons Ltd before joining The Akbar of the National Business Excellence Awards and Chairman Group. of the preparation of the National Budget Proposals of the Chamber in the recent past. Mr Wimalasuriya is a Founder Trustee/ Treasurer of CCC Foundation Sri Lanka, a Charitable Trust which has He is the Past President and current Vice Chairman of established a 198 bed transit home for cancer patients, and Member Network Panel of ACCA (UK) Sri Lanka branch and the CCC Line which provides free telephone counseling member of the Advisory Committee of CISI (UK) service. He is the Hony Treasurer of Animal Welfare & Sri Lanka branch. Nandika performs as a Specialist of the Protection Association and is a committee member of the Global Education Forum of ACCA Global, member of the board of management of the Colombo YMBA. Board of Management of School of Accounting & Business and Financial Reporting Standards Interpretation and Mr. Anura Warnakulasooriya Implementation Committee of CA Sri Lanka. He is also an external member of Faculty of Business Studies & Finance Honorary Secretary of Wayamba University and a member of the Advisory A magna cum laude graduate of the University of Alabama, Council of Colombo School of Business Management USA, Mr. Warnakulasooriya holds a degree in Management and also was a Director of the Sri Lanka Accounting and Information Systems and a minor in Computer Science. His Auditing Standards Monitoring Board. career includes experience as an IT Consultant in USA. In 2005 he took over leadership responsibilities as Managing Mr. Deepal Nelson Director of Midaya Ceramic Company Pvt. Ltd. and over Deputy President the last fifteen years has succeeded in transforming the business strategy at Midaya from a mass scale, medium A most recognised and revered professional within value manufacturing business to one that caters to high Sri Lanka’s Apparel, Cosmetics and Healthcare industries, value, handmade, niche ceramics. He has a strong belief Mr. Nelson holds immeasurable business experience gained that innovation and strong business partnerships based on through a career span of over 30 years. He holds business transparency and trust are the best makings of a forward experience in the areas of manufacturing, management, thinking private sector. administration and innovative marketing. He also works as Managing Director of MYS Lanka Pvt. Ltd. His professional career commenced in the Apparel and as a Director at Midaya Packaging Industries Pvt. Ltd. Manufacturing Industry and saw him becoming the He is currently the President of the Sri Lanka Ceramics and President of the prestigious Sri Lanka Chamber of Glass Council and he is also an active Rotarian. Garments Exporters. At present, he is the Chairman
30 THE NATIONAL CHAMBER OF COMMERCE OF SRI LANKA ANNUAL REPORT 2018/19 Member Affiliations
THE FOLLOWING MEMBERS ARE ASSOCIATED WITH VARIOUS INSTITUTIONS, COMMITTEES AND BOARDS OF VARIOUS GOVERNMENT AGENCIES, REPRESENTING THE CHAMBER UNDER VARYING POSITIONS OF SENIORITY.
Mr. Asela de Livera – President Mr. Ruwan Fernando – Council Member • Council of Distinguished Advisors of Sri Lanka Energy • Member working group, Introduction of Electronic Managers Association (SLEMA) Government Procurement (e-GP) Into the Public • Member of the National Steering Committee 13 year Procurement System in Sri Lanka at the Ministry of Finance of Guaranteed Education Programme at the Ministry of Education Mrs. Maheshi Anandasiri • Group Manager, Human Resources - Cargills Ceylon PLC Mr. Sujeeve Samaraweera – Immediate Past President • Wages Board for the Retail and Wholesale Trade at the • Member of Board of Directors of Governing Council of Department of Labour the National Institute of Business Management (NIBM), Ministry of Skills Development & Vocational Training Mr. R C Wimalasuriya, Council Member • Chairman of Consumer Consultative Committee of the • Member of the Wages Board for the Coconut Industry at Public Utilities Commission of Sri Lanka the Department of Labour • Governor of Sri Lanka National Arbitration Centre Board Mr. Samuditha Kumarasinghe, Council Member • Chairman of Affiliated Associations oupGr of Employers’ • Member of National Mirror Committee on Conformity Federation of Ceylon Assessment at the Sri Lanka Standard Institution • Member of Sri Lanka Export Development Board Advisory, Committee on Trade Promotion & Trade information Mr. Bandula Dissanayake – Secretary General / CEO • Member of Management Unit for Monitoring & • Wages Board for the Retail and Wholesale Trade at the Implementation of the National Export Strategy (NES), Department of Labour Ministry of Development Strategies & International Trade • Member of the Wages Board for the Coconut Industry at • Board Member of Agriculture Sector Modernization the Department of Labour Project of Ministry of Primary Industries • Member Evaluation Committee of National Budget Mr. Nandika Buddhipala – Senior Deputy President Proposals 2018, Market Access Support Programme, Sri Lanka Export Development Board • Expert Group of Development of Commerce subject, Ministry of Education • Alternate Member of National Trade Facilitation Committee (NTFC) Mr. Deepal Nelson – Deputy President • Expo Dubai 2020 Sri Lanka Steering Committee Member - • Member of Technical Committee to evaluate the through EDB Sri Lanka application based on the field / area of innovation to implement Innovation Accelerator Funding Mechanism for Mr. Tissa Ruberu – Assistant Secretary General Sri Lanka under the Sri Lanka Inventors Commission • Member of Advisory Committee on Quality Management • Member of National Mirror Committee on Circulation Systems (QMS) Certification Scheme by SLSI Economics at the Sri Lanka Standard Institution • Council member of Sri Lanka Shippers’ Council • Member of Industry Liaison Centre at the Open University Mr. Gamini Wimalasuriya, Hony. Treasurer of Sri Lanka • Board Member of Cost and Management Accounting • National Human Resource Development Council Standards Board (CMASB), Institute of Certified Management Accountants of Sri Lanka
Dr A S Sabaratnam - Council Member • Member for Advisory Committee on Coir Sector at the Ministry of Industry & Commerce • Member of the Wages Board for the Coconut Industry at the Department of Labour
31 THE NATIONAL CHAMBER OF COMMERCE OF SRI LANKA ANNUAL REPORT 2018/19 The council
Seated from Left to Right MR. NANDIKA BUDDHIPALA, MR. ASELA DE LIVERA, MR. BANDULA DISSANAYAKE
Standing from Left to Right MR. SUJEEVE SAMARAWEERA, MR. RIZWAN NAYEEM, MR. HARIDAS FERNANDO, MR. PATRICK ALWIS, MR. SARATH W. ALAHAKOON
32 THE NATIONAL CHAMBER OF COMMERCE OF SRI LANKA ANNUAL REPORT 2018/19
Seated from Left to Right MR. ANURA WARNAKULASOORIYA, MR. G. DEEPAL NELSON, MR. GAMINI WIMALASURIYA
Standing from Left to Right MR. YAKOOTH NALEEM, MS. M.C. RENUKA JAYAMANNE, MR. SARATH C. ALGAMA, MR. TISSA RUBERU
33 THE NATIONAL CHAMBER OF COMMERCE OF SRI LANKA ANNUAL REPORT 2018/19
The Council
Standing from Left to Right MR. BINESH PANANWALA, MR. ROHAN DE SILVA, MR. K.B.S. BANDARA, MR. HEMANTHA PERERA, MR. PRADEEP ULUWADUGE, MR. MOHIDEEN CADER
Council Members not in picture DR. A.S. SABARATNAM, MR. SUJITH DE ALWIS, MR. JAYANTHA B. SAMARAKOON, MR. CHANDRANANDANA DIYUNUGE, MR. NILHAN EKANAYAKE, MR. CHRISTOPHER JOSHUA, MR. JAYANTHA P KARUNARATNE, MR. S.A. CADER, MR. PRIYANGA GUNASEKERA, MR. EASSUWAREN SUBRAMANIAM
34 THE NATIONAL CHAMBER OF COMMERCE OF SRI LANKA ANNUAL REPORT 2018/19
Standing from Left to Right MR. SAMUDITHA KUMARASINGHE, MR. RUWAN FERNANDO, MR. CHAMIKA GODAMANNA, MR. DUDLEY THAMBINAYAGAM, MR. KAVINDA RAJAPAKSA, MR. RAMAL JASINGHE
35 THE NATIONAL CHAMBER OF COMMERCE OF SRI LANKA ANNUAL REPORT 2018/19 The council of 2019
Office Bearers President Mr. Asela de Livera Senior Deputy President Mr. Nandika Buddhipala Deputy President Mr. Deepal Nelson Hony. Secretary Mr. Anura Warnakulasooriya Hony. Treasurer Mr. Gamini Wimalasuriya Immediate past President Mr. Sujeeve Samaraweera
Chairmen of 16 Standing Committees Chairman’s Name Committee Mr. Sarath Alahakoon Agriculture & Food Processors Committee Mr. Nandika Buddhipala Banking & Financial Services Committee Mr. Anura Warnakulasooriya Ceramic & Glassware Committee Mr. Yakooth Naleem Dairy & Livestock Committee Mr. Ruwan Fernando Employment, Education & Training Committee Mr. Sujith De Alwis Engineering & Construction Committee Dr. A. S. Sabaratnam Exporters Committee Mr. Dudley Thambinayagam Importers Committee Mr. Mohideen Cader Industries Committee Mr. Patrick Alwis Insurance Committee Mr. Chamika Lakshan Godamanna Information & Communication Technology Committee Mr. Jayantha B. Samarakoon Plantation Committee Mr. Rohan De Silva Ports, Shipping & Aviation Committee Mr. Chandranandana Diyunuge Power & Energy Committee Mr. Haridas Fernando Trading (Wholesale & Retail) Committee Mr. Sarath C. Algama Transport & Automobile Industries Committee
5 persons from retiring Council Mr. Nilhan Ekanayake Lanka Canneries Ltd. Mr. Ramal Jasinghe Fair First Insurance (Pvt) Ltd. Ms. M. C. Renuka Jayamanne Hospitality Management & Consultancy Associates Mr. Christopher Joshua Access Engineering PLC Mr. Jayantha P. Karunaratne Imperial Teas (Pvt) Ltd.
10 Nominees Mr. K. B. S. Bandara Bank of Ceylon Mr. S. A. Cader Julius & Creasy Mr. D. Kavinda S. Rajapaksa Samson Rubber Industries (Pvt) Ltd. Mr. Pradeep Uluwaduge LOLC Group Mr. Eassuwaren Subramaniam Eswaran Brothers Exports (Pvt) Ltd. Mr. Rizwan Nayeem Sri Lanka Gem & Jewellery Association Mr. Priyanga Gunasekera VS Information Systems (Pvt) Ltd. Mr. Samuditha Kumarasinghe Nature’s Beauty Creations Ltd. Mr. Hemantha Kumara Perera Isabella (Private) Limited Mr. Binesh Pannanwala Watawala Plantations PLC
36 THE NATIONAL CHAMBER OF COMMERCE OF SRI LANKA ANNUAL REPORT 2018/19 PAST leadership
Mr. Robert P. Senanayake Sir Cyril de Zoysa Mr. M. Faleel A. Caffoor Mr. T. S. Jinasena Mr. D. L. F. Pedris
Mr. J. Siriwardena Mr. R. Wanigathunga Mr. A. C. H. de Zoysa
Our 21 Founder Members Mr. Robert P. Senanayake Mr. Sherman de Silva Mr. A. S. Fernando Mr. H. S. A. Paternott Sir Cyril de Zoysa Mr. Sellamuttu Sivanathan Mr. A. C.H. de Zoysa Mr. M. S. Abdul Rahaman Mr. M. Faleel A. Caffoor Mr. Abdul Careem Abdul Jabbar Mr. S. R. de Silva Mr. D. W. Wanigasekera Mr. N. Sellamutthu Mr. E. A. Kareem Mr. B. Medonza Mr. W. Hendrik de Silva Mr. D. L. F. Pedris Mr. B. M. Marcelline Mr. T. S. Jinasena Mr. J. Siriwardena Mr. R. Wanigatunga
Past Presidents (Last Ten)
Mr. Hari Selvanathan Mr. Chandra J. Embuldeniya Mr. Asoka de Z. Gunasekera Mrs. Nirmali Samaratunga Mr. D. Eassuweren (Late) 1998-2000 2000-2002 2002-2004 2005-2007 2007-2009
Mr. Chandra Lal de Alwis Mr. Asoka Hettigoda Mr. Sunil G. Wijesinha Mr. Thilak Godamanna Mr. Sujeeve Samaraweera (Late) 2009-2011 2011-2013 2013-2015 2015-2017 2017-2019
37 THE NATIONAL CHAMBER OF COMMERCE OF SRI LANKA ANNUAL REPORT 2018/19 The operational Team
38 THE NATIONAL CHAMBER OF COMMERCE OF SRI LANKA ANNUAL REPORT 2018/19
39 THE NATIONAL CHAMBER OF COMMERCE OF SRI LANKA ANNUAL REPORT 2018/19
The operational Team
SECRETARY GENERAL/CHIEF EXECUTIVE OFFICER FINANCE & PERSONNEL DIVISION Mr. Bandula Dissanayake The Division prepares budgets, monthly accounts and final accounts of the Chamber. It also handles the finances of ADMINISTRATION DIVISION affiliated member organizations such as Business Councils, The Division is responsible for the overall administration and is responsible for the human resource management of the Chamber Secretariat, including monitoring of activities of the Chamber Secretariat, including matters activities of other Divisions. In addition, it handles Standing pertaining to recruitment, leave and staff welfare. Committee activities, liaison with Government organizations and member services. The Division maintains a close Mrs. K. T. D. Jayakamani relationship with the Standing Committees Chairmen and Accountant (Head of the Accounts Unit) arranges meetings for such Committees. Ms. A. E. S. Fernando Accounts Assistant Ms. Shriani Rambukwella Ms. Nathasha Marianne James Assistant Secretary General Accounts Assistant Mrs. K. T. D. L. Merly Personal Assistant to Secretary General Mr. K. B. B. S. Darshana INTERNATIONAL RELATIONS & TRADE Web Master INFORMATION DIVISION Ms. N. Surekha Neethu Singh The Division performs research on trade information Coordinator cum Secretary and dissemination of such information among member companies, including compilation of trade information Ms. Nirmani Fernando bulletins and the Chamber Newsletter. It also organizes Project Assistant outward delegations from the Chamber, receives foreign Mr. D. Somaratne delegations and arranges business meetings between Office Aide visiting delegations and Chamber members. Mr. Sandanam Saththiwelu Driver/Office Aide Mrs. Thushari Manel Mr. G. A. S. Pubudu Kumara Secretary Driver Mr. S. M. M. Nazeerdeen Janitorial Assistant SME, SKILLS DEVELOPMENT & OTHER SERVICES DIVISION Mr. K. A. Lechchamanan The Division undertakes SME development activities and Janitorial Assistant conducts workshops and training programmes for the benefit of the member organizations. In addition, the Division provides other services such as match-making COMMERCIAL DOCUMENTATION DIVISION between SMEs and large corporates for marketing products The Division certifies commercial documents such and services of the SME sector. as certificates of origin, commercial invoices, cargo measurement certificates and other related certificates Mrs. Nishanthi Dilrukshi that are needed by the business community in their export Projects Executive and import activities. Ms. D. A. Thanusha Dilrukshi Athukorala Project Assistant Mr. Tissa Ruberu Assistant Secretary General Mr. Ajith Senaratne Assistant Manager
40 THE NATIONAL CHAMBER OF COMMERCE OF SRI LANKA ANNUAL REPORT 2018/19
NATIONAL CHAMBER CONVENTIONS DIVISION The Division focuses on organizing international exhibitions and business benchmarking competitions in Sri Lanka and assisting foreign organizations to hold exhibitions in Sri Lanka. It also arranges buyer-seller meetings for the benefit of members.
Ms. Devi Emmanuel Manager- Events & Conventions Ms. Hansani Jayawardana Project Assistant Ms. Achini Cooray Management Trainee
41
Management discussion THE NATIONAL CHAMBER OF COMMERCE OF SRI LANKA ANNUAL REPORT 2018/19 Management discussion
DEPICTED BELOW IS THE CHAMBER’S ANALYSIS OF ECONOMIC DEVELOPMENTS IN THE PAST YEAR, WITH A FOCUS ON THE STRATEGIC MEASURES REQUIRED FOR THE DEVELOPMENT OF SMES, THE BUSINESS COMMUNITY AND OUR ECONOMY AT LARGE.
Performance and Direction of the National ‘Sri Lanka Human Capital Development’ issued by the World Economy Bank in September, 2019. According to the report, Sri Lanka Based on the statistics issued by the Central Bank of is performing moderately well at 58%, ranking 74 out of Sri Lanka, the economy grew at a rate of 2.6 per cent during 157 in the World Bank’s Human Capital Index (HCI), leading the first six months of 2019, as a result of the spillover other South Asian countries such as India, Pakistan, Nepal, effects of the 2018 political instability and from the effects Bangladesh and Afghanistan. The World Bank recommends of the terror attacks on April 21st. The rate of growth was that sufficient investments in early childhood education subdued when compared with the corresponding period will equip our children to better fare in the future and to in 2018. And in 2019, the IMF revised the real GDP growth increase their potentials for success. to 2.7 per cent; however, it’s projected to improve in 2020 to 3.5 per cent, whilst Inflation is also expected to remain Global SME Sector Developments stable at 4.5 per cent. Across the world SMEs contribute significantly to the growth of the global economy while enabling regional development, employment opportunities, poverty reduction and inclusive economic growth. Studies conducted on the sector confirm Annual Economic Growth that SMEs have tremendous potential to increase both productivity and employment at a national and global scale. In Asia, 96 percent of all businesses were from the SME 2017 - 3.4% sector, providing two out of three employment opportunities in the private sector; this shows the direct correlation 2018 - 3.2% between providing full support for SMEs and economic 2019 - 2.6% growth, across the region. 2020 - 3.5% However, given the limited access to bank credit for SMEs, the Asian Development Bank recommends that ‘new and 2017 2018 2019 2020 sustainable models’ are needed for exposing SMEs to (Estimated) (Forecasted) finance. Lack of collateral amongst SME entrepreneurs and the consequential high interest rates in lending pose a major obstacle in expanding SME credit.
In tandem, unemployment rate too increased during the A 2018 study by the Asian Development Bank Institute time period. The Central Bank of Sri Lanka, in their efforts suggests that, ‘further policy support for SME finance is to stabilize inflation at mid-single digit levels continued needed in low-income and lower-middle-income Asian to work within an ‘enhanced monetary policy framework’. economies. In particular, it is necessary to develop a set of CBSL also continued to progress towards adopting Fully- financial infrastructures—such as a credit risk database and fledged Inflation Targeting (FIT). Furthermore, the Central a credit guarantee corporation.’ It also mentions that, ‘the Bank adopted an accommodative monetary policy outlook establishment and development of SME specialized banks amidst a subdued economic growth. is a required policy.’
The trade deficit declined during the first six months of The above report also recommends Governments to 2019 due to lower import expenditure and increased export develop ‘Credit Guarantee Schemes’ as a remedy to the earnings. Owing to the issuance of international sovereign funding of SMEs which is principally aimed at increasing bonds, the financial account experienced an improvement, the flow of funds to businesses, especially SMEs. For years, while the gross official reserves increased. many countries have used this method, which essentially absorbs the risks involved, as the guarantor intervenes Furthermore, in September 2019, the World Bank advised as loan collateral. In the case of borrowers defaulting, the Sri Lanka to invest in health and education to improve the credit guarantor (government or trade association) will nation’s productive potentials. This recommendation was cover a percentage of what is owed to the lender. made on a new report to assist policy making, titled,
44 THE NATIONAL CHAMBER OF COMMERCE OF SRI LANKA ANNUAL REPORT 2018/19
Strategic Frameworks for SME Development SMEs face numerous challenges in competing with larger According to the National Policy Framework for Small organizations, contacting foreign buyers and in adopting Medium Enterprise Development, the sector forms 75 new technologies and operational methods. These limit percent of national enterprises providing 45 per cent them from diversifying and in reaching export destinations. employment opportunities while having a 52 percent In addition, incapacity to effectively manage operations and contribution to the Gross Domestic Production. employees, lack of knowledge in business and export related processes and lack of support to improved productivity, challenges the growth of the sector. In terms of trade, an easy and efficient cross border transaction facilitation National SME Sector system would help reduce export and import costs.
75% Furthermore, training and development based policies are also critical for developing SMEs. As lack of funding remains 52% a constraint to SMEs it requires policy makers to facilitate 45% SMEs to receive investments for innovations, adopting new technologies, market expansions and achieve economies of scale.
Digital Innovations for Strategic Growth Technological infrastructure allows SMEs to pursue % of SMEs from Contribution to Contribution to Total Enterprises Employment GDP new opportunities in cross-border trade. In this regard, digitalization and automation will reduce or remove time taken for business processes, provide effective coordination between private businesses and government Given the substantial impact and contribution from SMEs organizations, as well as in eliminating or reducing huge to our national economy, maintaining and updating a costs that come with conventional processes of conducting favourable policy framework is critical for the growth of business and international trade. the sector. Not only does Sri Lanka possess a strong and growing base of over one million Micro, Small and Medium In integrating SMEs and other businesses into the digital Enterprises (MSMEs), but we have now created a favourable sphere, the NEDA-EMS commenced by the National environment through SME friendly policies and strategic Enterprise Development Agency (NEDA) has the objective initiatives. of creating a nationwide, centralized digital databank for Sri Lankan SMEs and entrepreneurs. With such digital Initiatives such as the National Export Strategy (2018-2022) initiatives, local SMEs receive digital connectivity to global aspire to enhance market entry capacities, integration value chains and production networks which are necessary of national SMEs into the export value chain. Further for their growth. Adopting such beneficial digital platforms example of SME based policy framework is the Innovation will help in the development of a highly competitive and and Entrepreneurship Strategy of Sri Lanka (2018-2022) productive market economy, which coincides with the which has an objective of assisting SMEs enhance export vision adopted by the National Digital Policy for Sri Lanka competitiveness, while promoting the growth of local start- (2020-2025) by the Ministry of Digital Infrastructure and ups. Information Technology (MDIIT).
In assimilating SMEs towards national economic growth, The national digital policy framework seeks to facilitate policy makers should provide ease access to inputs, remove ease of doing business for start-ups and SMEs, while bureaucratic red-tape, help increase preferential trade improving underlying regulatory and legal processes, review agreements with reduced or non-tariffs benefits etc… and improve labour, tax, investment and trade, intellectual property (IP), consumer protection and other laws and Integrating SMEs in bilateral trade agreements with regional related regulations; it also aims at attracting foreign direct and global countries as well as mediating partnerships for investments to the country. Furthermore, Sri Lanka has now SMEs with larger organizations helps develop enthusiasm initiated two major trade portals with single point access and commitment from the sector. SMEs should also be to business and trade related information and procedures. encouraged to entrepreneurship in service based sectors These platforms as detailed below are crucial for cross for an overall balance of the economy’s goods and services border exchange and for increasing the ‘ease of doing growth. business’ in Sri Lanka for SMEs and large scale enterprises
45 THE NATIONAL CHAMBER OF COMMERCE OF SRI LANKA ANNUAL REPORT 2018/19
Management discussion
and most importantly in attracting foreign investments to The portal also features - business start-up process, Sri Lanka. an economic overview, import and export guide, and information on special economic areas, trade agreements, Mechanisms for Trade Facilitation export processing zones, cross-border trade and GSP Launched in 2018, the Sri Lanka Trade Information Portal automation and additional areas of information. (TIP) is an inclusive repository of information relating to trade, importing to Sri Lanka and on Exporting form The National Single Window, is an ICT initiative to facilitate Sri Lanka. Assisted by the World Bank the TIP was an import, export and transit bureaucracies. It’s a single objective within the WTO Trade Facilitation Agreement point for the submission of documents in order to fulfill (FTA). A key component of the national trade policy and regulatory requirements and provides easy access to all export promotion strategy, the trade portal was created public and private administrative procedures in foreign to provide all information on cross-border transactions trade. The basic principle of the NSW is to facilitate one- through a single, user-friendly platform, which makes time submission of data which could be reused by the information searches easy and swift. An initiation by system in other overlapping areas. It will also provide a the Department of Commerce, the TIP is a gateway to single point of payment, improved business processes information for traders with access to regulatory and in government institutions, and provide a shorter time in process related information on import, exportation and obtaining approvals. Traders and agents will receive the transit. The portal aligns with the requirements of the World facility to connect with Ministries of Trade, Agriculture, Trade Organization and compliance to its Article 1 of the Health, Food security, and finance and to electronically Trade Facilitation Agreement. submit license applications and customs declarations.
TIP is a portal that brings about transparency on trade laws Sri Lanka has become included in multiple bilateral and and procedures, and an important component in enabling multilateral trade agreements which facilitate better ease of doing business in Sri Lanka. A web-based system, trade and investment between partner countries under the portal makes available all cross-border trade related reduced or exempted trade barriers, tariffs, import quotas regulatory information – including laws, technical standards, and export restrictions. These agreements improve trade commodity classifications and tariffs, procedures for permit relations between nations involved. applications, licenses and clearance as well as restrictions, in clear and concise instructions. It’s a single-entry point Formed in 2013, the Trade Facilitation Agreement (TFA) by for fulfilling all regulatory requirements related to trade. the World Trade Organization (WTO) focuses on customs The portal has brought together all 43 international trade procedures through cooperation between authorities related Sri Lankan ministries and government agencies related to trade and cross border. While 163 nations have under a single platform, making it convenient for businesses endorsed the agreement, SL too ratified it in 2016. This to gather information on agency requirements when was followed by the government’s approval to establish conducting trade related transactions and processes. Trade Facilitation Committee which is overseen by Director These include the Department of Commerce, Customs, General of Sri Lanka Customs and co-chaired by Director Department of Foreign Exchange, Department of Import General of Department of Commerce. The TFA has a well and Export Control, Department of Trade and Investment formed association between the public/government and policy, Board of Investment, EDB, Finance Ministry, CBSL, the private sector through its well-rounded committee Sri Lanka Ports Authority (SLPA), Ministry of Agriculture and representation which facilitates the implementation of TFA the Tea Board amongst many others. in Sri Lanka.
Two key benefit through the portal, to the entire business TFA enables participating countries to improvise sector including SMEs is the reduced cost and reduced competitiveness in the global market, attract foreign direct time taken to pursue trade related processes. SMEs now investments by adopting preferred measures in making get an important tool to expand their knowledge, know trade between nations easier and beneficial. regulations and pursue trade based opportunities. It’s also a comprehensive gateway for investors to understand the Regional, Bilateral and Multilateral Trade Sri Lankan trade environment as well as get an Agreements understanding of how each production or service sector The Asia-Pacific Trade Agreement (APTA) operates; allowing ease of doing business in Sri Lanka than The oldest preferential trade agreements between Asian previously experienced. Pacific countries, the APTA were signed in 1975. Member countries include Sri Lanka, India, Bangladesh, China, Lao PDR and Republic of Korea.
46 THE NATIONAL CHAMBER OF COMMERCE OF SRI LANKA ANNUAL REPORT 2018/19
The Global System of Trade Preferences (GSTP) property and assets, as well as sudden and unpredictable Signed in 1989, the GSTP seeks to increase trade between changes in laws and regulations retracts investment developing countries under United Nations conference on opportunities or delays its inception. In attracting trade and development. investments policy makers and government ministries should focus on creating conducive policies for investments across all industries and sectors. The Indo-Sri Lanka Free Trade Agreement (ISFTA) This agreement allows duty free concessions on a range of Sri Lanka continues to grow as more entrepreneurs products traded between India and Sri Lanka. It came into enter MSME sector or promote their innovations through effect in 2000. larger organizations. Sri Lanka is currently experiencing a digital market space where businesses offer services and Pakistan - Sri Lanka Free Trade Agreement (PSFTA) products through digital/online mediums creating a boom in Initiated in 2005 the agreement has made progress in trade e-commerce. Considering new innovations, foreign market between the nations which provides Sri Lanka with duty free demands and investor needs, it is crucial to foster policies market access to more than 4500 products from Pakistan. that look at all these angles from a fresh perspective.
Ease of doing business, easy and fast access to information, South Asian Free Trade Agreement (SAFTA) central online portals for doing business in Sri Lanka should Focusing on increased trade and economic cooperation, be maintained allowing faster registration of businesses the SAFTA includes Afghanistan, Bangladesh, Bhutan, India, for investors, and quick coordination between government Maldives, Nepal, Pakistan and Sri Lanka. agencies in approving investment projects. As of 2019, Sri Lanka ranks at 99th place in the World Bank Index of ease The Agreement on SAARC Preferential Trading of doing business; this is a significant drawback in attracting Arrangement (SAPTA) foreign investments as it directs investors to seek other Encouraging increasing trade liberalization and economic countries within the region with better ranking. co-operation among member nations the SAPTA was signed in 1993 and includes Bangladesh, Bhutan, India, Maldives, The growing ease and ability to conduct businesses Nepal, Pakistan and Sri Lanka as member countries electronically continues to facilitate global economic expansion through a growing Global Value Chain, creating more employment opportunities for under-developed Singapore Free Trade Agreement countries, increasing earning potentials for millions. With In effect since the 1st of May 2018, the bilateral free trade better avenues for international trade, developing nations agreement is intended to enable trade and investment such as Sri Lanka now has vast options for entering between the two countries under relaxed more cooperative previously unexplored sectors of business while using conditions included in the agreement. fragmentation of production for the manufacture of goods. With this methodology, enterprises separate various Measures Conducive for Investments aspects of a production process which are then fulfilled In attracting foreign direct investments to any country there in other countries. Raw materials are produced from one are key factors that determine a country’s suitability to country while a semi-finished product enters another for investors. Infrastructure, political stability, policies that boost assembly as a final product. Increasing our involvement in investor confidence, attractive incentives from investments, the global value chain should be a key focus of policy making market size, stable exchange rate and policy, skilled labour while allowing fragmentation of production to be adopted force, as well as macro-economic conditions. In addition, by various industries and business sectors. access to regional markets through trade agreements, access to land and natural resources, a transparent The National Chamber of Commerce regularly monitors governance system, corruption-free government operations developments in the economic front, as we continue to assist and most importantly ease of doing business, all facilitate businesses benefit from these developments by creating investments by providing a prospective environment. business networks and capacity building programs and by educating the business community. Our continued focus is Tax regimes play another key decisive role, and offering on empowering the SME sector to help sustain an enabling incentives such as reduced taxes and tax holidays are environment for overall business development. fundamentally necessary for attracting investors. It is broadly known knowledge that delays in processes and obtaining permits, currency conversion restrictions, breaches in contract by a government or expropriation of
47 THE NATIONAL CHAMBER OF COMMERCE OF SRI LANKA ANNUAL REPORT 2018/19 THE Chamber NCCSL – WHO WE ARE
IN THE YEARS SINCE 1948, THE NATIONAL CHAMBER HAS WORKED DEDICATEDLY TO REACH THE LEVEL OF NATIONAL AND GLOBAL EXPOSURE WE HAVE RETAINED AT PRESENT. OUR BIGGEST REWARD IS THE RECOGNITION WE HAVE GATHERED FOR DEVELOPING BUSINESSES TOWARDS SUCCESS AND IN CONTRIBUTING TO THE NATIONAL ECONOMY.
Establishing the Chamber was a necessity in providing a Pioneering many firsts in the arena of trade fairs and nationalistic approach to businesses while safeguarding exhibitions, we also initiated the first ever Ayurveda the interests of Sri Lankan businesses. Since then, the core Exhibition and Symposium in 2007 in partnership of our work has been in the sustainable development of with the Ministry of Indigenous Medicine and with the SMEs with a keen focus on melding propitious international participation of the International Community. Focusing on relations and bilateral cooperation. With this as its core, the agricultural industry, in 2008, the Chamber organised the Chamber formed the National Chamber Institute of “Wellassa Krushi Udawa” in Buttala, Moneragala - the first International Relations and the Federation of Small and ever Regional Agricultural Exhibition. Medium Enterprises Association in 2003. The Chamber also initiated the Export cluster under the National Council Over the years, the Chamber has become one of the for Economic Development in relation to the promotion of most credible and primary sources of knowledge to trade. entrepreneurs as we continue to gather decades of research and surveys which is then passed on to our The Chamber is constantly observant of global business members and those seeking information. As a result, the trends and the gaps in domestic industries in reaching Chamber inaugurated the first ever Certificate Course in higher standards and in reaping the benefits that global ‘Entrepreneurship Management (CIEM)’ jointly with the trade offers, trade exhibitions help promote local industries University of Colombo in 2011. and innovations while exposing our businesses to international best practices. The National Chamber of Commerce of Sri Lanka continues to take on the responsibility of training Small Throughout the past 70 years the Chamber has been a and Medium Scale Entrepreneurs, as we make them aware pioneer in setting the tone for business and industrial of regulations, business standards, limitations and ethical standards, through multiple international exhibitions and behaviour, continuing to provide guidance to entrepreneurs award schemes. In 1996 we began our first international as a main driver of economic growth. industrial trade exhibition INTRAD followed by other exhibitions in 1997, 2000, 2010 and in 2014. INTRAD Accolades provided enterprises in all sectors of trade a chance Recognition for our work has brought to the Chamber to showcase their products and services, making it an multiple accolades, beginning with two major awards for opportune event to meet buyers, investors while gaining outstanding performance at IKOFA, Food Fair in West both local and international business contacts. And in 2005, Germany in 1972. In 2009, the Chamber received an we conducted “Arogya” - the first ever National Healthcare award by the World Chamber Federation at the 6th World Exhibition together with the Ministry of Health and was held Chambers Congress held in Kuala Lumpur, Malaysia, in in 2006, 2012 and in 2014. recognition of our services to the SME sector.
CHAMBER FORMED THE NATIONAL CHAMBER INSTITUTE OF INTERNATIONAL RELATIONS AND THE FEDERATION OF SMALL AND MEDIUM ENTERPRISES ASSOCIATION IN 2003. THE CHAMBER ALSO INITIATED THE EXPORT CLUSTER UNDER THE NATIONAL COUNCIL FOR ECONOMIC DEVELOPMENT IN RELATION TO THE PROMOTION OF TRADE.
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Chamber services
1. Submits the Chamber’s views in response to inquiries 17. Represents the members at Government Forums to from the Government. Publishes reports based on resolve their business related problems. compiled opinion of the members and submit them to the National Government and other relevant 18. Advertises products and services of the members Government Authorities with the Chamber’s through our Monthly News Letter and the website at recommendations. concessionary rates.
2. Issues Certificates of Origin for goods to be exported. 19. Circulating on request business information of members such as their marketable products and 3. Register other Commercial Documents. services among overseas parties through our information network. 4. Conducts Workshops/Training Programs/Seminars and Lectures on topics related to commerce and industry. 20. Facilitating members to meet foreign delegations visiting the Chamber and also to join Chamber 5. Engages in activities conducive to promotion of the delegations visiting overseas countries. development and welfare of the community at large. 21. Advises the Government to include private sector 6. Finds markets for local organisations overseas. friendly proposals in the National Budget Proposals.
7. Engages in match-making activities between SME and 22. Providing opportunities for members to meet large corporate bodies. Sri Lankan diplomat/designates at the Chamber before their departure to take up foreign positions. 8. Provides secretariat services to Associations. 23. Organises Bilateral Trade Seminars on a monthly 9. Maintains an updated modern commercial Library basis with foreign Embassies in Sri Lanka with the with information on all types of trade, import, export, participation of the Ambassador/High Commissioner, manufacture, service, joint ventures, Government which provides a forum for the members to interact policies, regulations, incentives and tariffs information. directly with the officials of the relevant Embassies.
10. Compiles Members’ Directory and trade data bases. 25. Conducting International Exhibitions and Trade Fairs annually, such as Ayurveda Expo Indigenous Healthcare 11. Establishes linkages and network with counterpart Exhibition, AROGYA Healthcare Exhibition and INTRAD organisations in overseas countries. EXPO Trade Fair & Exhibition on a yearly basis.
12. Represent the Chamber at Government and non- 26. Conducting the National Business Excellence Awards government bodies. annually, the flagship event of the Chamber, which provides an opportunity for organisations which strive 13. Publication of “Voice of Business” news magazine of for excellence to compare their level of evolution with the Chamber activities. the national benchmark of business and management excellence. 14. Carry out social activities as part of its corporate social responsibility programes.
15. Issues letters of recommendation to members to get their VISA Approval.
16. Disseminating trade information such as export/ import/investment opportunities through a weekly Trade Information Bulletin and special circulars to all members.
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THE Chamber
Network for sme development
Our Regional Partners Regional/District Chambers/ Province Associations
Sabaragamuwa • Kegalle District Chamber of Commerce, Industry & Agriculture Jaffna • Sabaragamuwa Chamber of Commerce & Industries Southern • Hambanthota District Chamber of Commerce & Industries • Galle District Chamber of Commerce & Industries • Matara District Chamber of Commerce & Industry Mannar Eastern • Trincomalee Chamber of Commerce & Industries • Batticloa District Chamber of Commerce & Industries • Ampara District Chamber of Anuradhapura Trincomalee Commerce & Industries Northern • Jaffna Chamber of ommerceC & Industries Puttalam • Mannar Chamber of Commerce & Polonnaruwa Industries • Chamber of Commerce and Batticaloa Industry of Yalpanam (Jaffna) Kurunegala North Central • Anuradhapura District Chamber of Matale Commerce, Industry & Agriculture • Polonnaruwa District Chamber of Commerce, Industry and Agriculture Wayamba (North • Wayamba Chamber of Commerce Ampara Western) and Industry Gampaha Sabaragamuwa • Chamber of Commerce of the Wayamba Province Nuwara Eliya • Kurunegala District Women’s Moneragala Chamber of Commerce, Industry & Agribusiness • Puttalam District Chamber of Commerce, Industry and Agribusiness Hambantota Uva • Moneragala District Chamber of Galle Commerce & Industries Matara • Chamber of Commerce & Industry of Uva Province Western • Gampaha District Chamber of Commerce Central • Chamber of Commerce and Industry of Central Province • Chamber of Provincial Entrepreneurs (COPE) • Matale District Chamber of Commerce, Industry and Agriculture • Nuwara Eliya District Chamber of Commerce, Industry and Agriculture
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past presidents and Secretary Generals/ CEOs
Past Presidents
Name Period Name Period
Sir Wilfred de Soysa 1951-1952 Deshabandu Karu Jayasuriya 1988-1990 Mr. R. P. Senanayake 1952-1955 Mr. L. L. Samarasinghe 1990-1992 Sir Cyril de Zoysa 1955-1957 Mr. Muni Kundanmal 1992-1994 Mr. M. Falil A. Caffoor 1957-1958 Major Douglas Wijesinha 1994-1995 Mr. J. L. M. Fernando 1958-1960 Mr. Tilak de Zoysa 1995-1996 Mr. Justin Kotalawala 1960-1961 Mr. Armyne Wirasinha 1996-1998 Mr. J. L. M. Fernando 1961-1966 Mr. Hari Selvanathan 1998-2000 Mr. D. L. F. Pedris 1966-1970 Mr. Chandra J. Embuldeniya 2000-2002 Mr. H. R. Fernando 1970-1971 Mr. Asoka de Z. Gunasekera 2002-2004 Mr. R. Wanigatunga 1971-1972 Mrs. Nirmali Samaratunga 2005-2007 Mr. H. R. Fernando 1972-1977 Mr. D. Eassuweren 2007-2009 Mr. A. D. E. de S. Wijeyeratne 1977-1982 Mr. Chandra Lal de Alwis 2009-2011 Mr. J. A. Leembruggen 1982-1983 Mr. Asoka Hettigoda 2011-2013 Mr. G. S. Chatoor 1983-1985 Mr. Sunil G. Wijesinha 2013-2015 Mr. M. Manoharan 1985-1987 Mr. Thilak Godamanna 2015-2017 Mr. H. S. de Silva 1987-1988 Mr. Sujeeve Samaraweera 2017-2019
Secretary General/CEOs Name Designation Period
Mr. J. E. John Rodrigo Administrative Secretary 1954-1973 Mr. T. Seneviratne Administrative Secretary 1973-1982 Mr. J. C. Savanadasa Administrative Secretary/Secretary General 1982-1996 Mr. Chandra J. Silva Secretary General 1996-1997 Mr. Neil Seneviratne Secretary General 1997-2005 Mr. E. M. Wijetilleke Secretary General/CEO 2005-2013 Mr. Bandula Dissanayake Secretary General/CEO 2014-
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THE Chamber committee structure
The standing committees function with the intention of identifying issues faced by that particular business sector and finding solutions. It also conducts activities, training programs, awareness seminars, workshops to develop and assist the particular business sector and intervenes with the Government and relevant authorities with regard to policy related matters.
No. Committee Chairman 1 Agriculture & Food Processors Mr. Sarath Alahakoon – Jt. Managing Director – Country Style Foods (Pvt) Ltd. 2 Banking & Financial Services Mr. Nandika Buddhipala – CFO, Commercial Bank of Ceylon PLC 3 Ceramic & Glassware Mr. Anura Warnakulasooriya – Managing Director, Midaya Ceramic Co (Pvt) Ltd. 4 Dairy & Livestock Mr. Yakooth Naleem – Managing Director, Bairaha Farms PLC 5 Employment, Education & Training Mr. Ruwan Fernando – Country Managing Partner, Ernst & Young 6 Engineering & Construction Mr. Sujith De Alwis – Director / CEO, Fentons Ltd. 7 Exporters Dr A. S. Sabaratnam – Managing Director, A S Agri Exports Pvt Ltd. 8 Importers Mr. Dudley Thambinayagam – Managing Director, Jupiter Trading Co. Ltd. 9 Industries Mr. Mohideen Cader – Managing Director, Sinwa Holdings Ltd. 10 Insurance Mr. Patrick Alwis – Managing Director, Ceylinco General Insurance Ltd. 11 Information & Communication Technology Mr. Chamika Lakshan Godamanna – Managing Director, Ninehearts Imaging (Pvt) Ltd. 12 Plantation Mr. Jayantha B. Samarakoon – President, Coconut Growers Association of Sri Lanka 13 Ports, Shipping & Aviation Mr. Rohan De Silva – GM(F&SI), Colombo Dockyard PLC 14 Power & Energy Mr. Chandranandana Diyunuge – Chairman, Electro Metal Pressings (Pvt) Limited 15 Trading (Wholesale & Retail) Mr. Haridas Fernando – DGM (Agri Business) Cargills Ceylon PLC 16 Transport & Automobile Industries Mr. Sarath C. Algama – Managing Director - DIMO (Pvt) Ltd.
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the governing council & SECRETARIAT
The members of the Governing Council comprise of The Commercial Documentation Division individuals elected by the members of The National The division certifies commercial documents such Chamber of Commerce and nominated by other bodies. as Certificates of Origin, Commercial Invoices, Cargo Measurement Certificates and other related certificates that are needed by the business community in their export Office Bearers 05 and import activities. Chairmen of Standing Committees 16 Nominees of the Retiring Council 05 The Finance and Personnel Division Nominees from the Floor of the House 10 The Division prepares Budgets, Monthly Accounts and Final Accounts of the Chamber. It also handles the finances of The Members of the Governing Council usually consist affiliated member organisations such as Business Councils, of professionals and experts representing a variety of and is responsible for the Human Resource Management disciplines. activities of the Chamber Secretariat, including matters pertaining to recruitment, leave and staff welfare. All Council members hold their positions for two years prior for making themselves available for election or nomination, The International Relations and Trade Information enabling diversity within the Council. Division The division performs research on trade information and RESPONSIBILITIES OF THE GOVERNING COUNCIL disseminating them among member companies, including • To be the advisory body to the Secretariat compilation of trade information bulletins and the Chamber • Promotion of business relations within the membership News Letter. It also organises outward delegations from the Chamber, receives foreign delegations and arranges • Providing professional advice and consultancy in solving business meetings between visiting delegations and trade related disputes for the business community chamber members. • Identifying key business promotion areas for development of Trade and Industry SME, Skills Development and Other Projects Division • Engaging activities conducive to the promotion of The division undertakes SME development activities and development and welfare of the chamber and the conducts workshops and training programs for the benefit community at large of the SME member organisations. In addition, the division • Assisting the Chamber in establishing linkages and provides other services such as match making between networking with counterpart organisations in overseas SMEs and large Corporates for marketing the products and countries services of the SME Sector. • Representing the Chamber at Government and Non- Government bodies National Chamber Conventions Division • Promoting foreign trade bodies/delegations to visit the The division focuses on organising international exhibitions Chamber and business bench marking competitions in Sri Lanka and • Representing the Chamber overseas/forums/trade fairs/ assisting foreign organisations to hold exhibitions in events Sri Lanka. It also arranges buyer-seller meetings for the • Services rendered on a voluntary basis for the progress benefit of members. and development of the Chamber
THE SECRETARIAT STRUCTURE The Administration Division The division is responsible for the overall administration of the Chamber Secretariat, including monitoring activities of other divisions. In addition, it handles Standing Committee activities, liaison with government organisations and member services. The division maintains a close relationship with the Standing Committee Chairmen and arranges meetings for such Committees.
53 THE NATIONAL CHAMBER OF COMMERCE OF SRI LANKA ANNUAL REPORT 2018/19
THE Chamber training and knowledge sharing
Seminars and Workshops Workshop on Export Procedures & Documentation In 2019, the National Chamber of Commerce completed Taking into consideration the appropriate knowledge seven decades of serving the business community with required in exporting goods from Sri Lanka, the Chamber diversified services that helps Sri Lankan businesses conducted a full day workshop on Export Documentation become the best version they can be. For seventy one and Procedures in March 2019. The resource person at years, NCCSL has worked with the mission of providing the event was Mr. T. Raviendrarajah- Director Customs. guidance and support services to Micro, Small and Medium The workshop provided an introduction to documentation Enterprises and Large Organisations, promoting local and procedures for those engaged in export businesses. It cross-border trade, taking our businesses to unmapped also provided an ideal context for our staff to improve their opportunities. knowledge in this regard. Participants were presented with a Certificate of Participation at the end of the training. During the year under concern, the Chamber helped educate and train businesses, developing skills and Workshop on Import Procedures & Documentation knowledge, helping to build employee competencies and keeping them up-to-date on industry developments and A one day workshop was conducted on Import Procedures business insights that allow businesses to reach their most and Documentation at the Chamber auditorium on the 1st optimum capacities. of August, 2019. The target audience of the program was the Business Community in Colombo. The workshop was In 2019, the Chamber organised workshops and seminars conducted by Mr. T. Raviendrarajah, Director of Customs, across a range of topics targeting SMEs and the corporate who holds over 36 years of experience at Sri Lanka sector. Customs in various departments.
The workshop was designed for businesses involved in One Day Workshop on Import Procedures & importing, buying and sourcing from overseas, in addition Documentation to sales, purchasing, production and accounts staff. It also A full day Workshop was organized in order to inform and provided a good overview necessary for senior managers educate participants on Import Procedures. This was held who have to delegate responsibility and an overview of the on 31st January 2019 at the Chamber. The workshop principals involved in successful importing, tips on how to provided an insightful and clear understanding of imports avoid problems and on how to ensure the smooth running for new staff, while refreshing the existing knowledge of contracts, profitably. of seasoned staff on latest procedures and general work related to imports. All participants were awarded a The Contents of the program were: Introduction to Imports, Certificate at the end of the session. Planning, Determining Imports Requirements, Introduction to International Trading, Sales Contract, Imports Workshop on Facilities Management Restrictions, Terms of Sale, Incoterms - Purpose and Resource person Richard Davis, CEO and Partner of Scope, Payment Terms with regard to Imports: Agreement Evbex Asia conducted a half day workshop on Facilities of Payment Terms: a review of the impact of each type Management in February 2019. He arrived in the country (including Letter of Credit and Document Collections) on an invitation by Asia Institute of Excellence. Through on import payment, Customs Imports Procedures and the seminar, Mr. Davis emphasised on the larger scope of Documentation, Classification of Imports Documents, Professional Facilities Management which goes beyond Clearance of Commercial Cargo through Customs - Sea ordinary building maintenance. Cargo and Air Cargo, Free Trade Agreements, WTO Goods Valuation Agreement, WTO Trade Facilitation Agreement (TFA), Goods Classification and Harmonised Systems. Workshop on Online Submission of Tax Returns A workshop was organised for interested individuals on Each participant was awarded a valuable certificate at the “Online submission of Tax Returns”, held in February 2019. end of the training program. Resource persons from the Inland Revenue Department provided specialised knowledge and understanding of filing Corporate Workshop on “VAT/SVAT & NBT” VAT, NBT and PAYE Returns through the RAMIS System. Besides this information, participants were also educated The National Chamber of Commerce of Sri Lanka organised on resolving issues when handling the RAMIS System. another workshop on ‘VAT/SVAT & NBT’ for the business community in Colombo, on the 22nd of August 2019, at the National Chamber Auditorium, in collaboration with the Inland Revenue Department Sri Lanka. The workshop
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provided participants an opportunity to obtain an in-depth Seminar on Trade Information Portal (TIP) Sri Lanka knowledge with regards to VAT/SVAT & NBT. Conducted The National Chamber of Commerce of Sri Lanka in in English, the workshop focused on the Calculation association with the Department of Commerce and the ITC Methodology and the Operational Issues of these taxes. organised a half day seminar on “Trade Information Portal Ms. Dushani Chandrasiri - Deputy Commissioner - Tax (TIP) Sri Lanka”. The seminar was held on 10th of December Policy & Legislation and Ms. Chandramali Arachchige - 2019 at the Chamber Auditorium. Assistant Commissioner - RAMIS Change Management of the Department of Inland Revenue participated as the The first key presentation was made on Trade Information Resource persons. Portal (TIP) and the recent developments effected by Mr. Premathilake Jayakody, Deputy Director of the Department Workshop on Export Procedures and Documentation of Commerce, followed by the second presentation on A one day Workshop on Export Procedures and “Step by Step Functionality on TIP System” made by Ms. Documentation was conducted at the National Chamber Kanchanee Seneiratne and Mr. Fowzer Mohammed Fiyaz, Auditorium on 10th October 2019 for the Business Consultants to TIP - International Trade Center (ITC). Two community in Colombo. The course aimed at educating experts from Geneva Ms. Birgit Viohl and Mr. Tom Butterly, participants on the latest procedures of the exports ITC Experts explained the Principles of Transparency and trade in order to provide a comprehensive understanding Access to Information – global perspective. These were of exports. It was an opportunity for new staff to learn followed by a panel discussion headed by Dr. Dayaratne the procedures of export and a learning opportunity Silva, National Project Coordinator of International Trade for experienced staff in updating their knowledge. The Centre and Mr. Premathilake Jayakody, Deputy Director of Resource Person was Mr. T Raviendrarajah, Former Director the Department of Commerce, Ms. Vishani Sooriyarachchi, of Customs who possesses over 36 years of experience World Bank Consultant and Mr. Hasitha Wijesundara, Senior at the Sri Lanka Customs in various departments. His Advisor – GIZ – SME Development Program. presentation and content included introduction to export, export planning, introduction to international trading, The audience at the seminar included professionals from source of export, determining export requirements, export the trading Community and those involved in Export and restrictions, terms of sale, incoterms 2010-a review of Import. The Department of Commerce and the participants the main ones, classification of export documents, role expressed their appreciation to the National Chamber, for of freight forwarders in exports, logistics and physical organising the seminar. distribution activities, customs export procedures, port procedures, customs - privileged facilities and special attention on WTO Trade Facilitation Agreement (TFA) - Publications and Sri Lanka Trade Information Portal (SLTIP). A valuable certificate was issued to each participant at the end of the session.
55 THE NATIONAL CHAMBER OF COMMERCE OF SRI LANKA ANNUAL REPORT 2018/19
THE Chamber
BUSINESS DEVELOPMENT PROGRAMS - SME
In our endeavours to promote and assist the sustainable and profitable growth of businesses, we have taken under our wing the strong responsibility of uplifting the country’s economic lifeline – Small and Medium Enterprises. In 2019, we undertook several initiatives, based on areas that are critical to the success of Sri Lanka’s hardworking small and medium enterprises and sole proprietors.
Developing Sri Lankan Enterprises, especially those at the grass-root levels and MSMEs, the National Chamber of Commerce of Sri Lanka continued its services in conducting a series of training programmes, outside of Colombo.
Entrepreneur Awards 2019 – Western Province The National Chamber of Commerce of Sri Lanka and National Enterprise Development Authority concluded the “Western Province Entrepreneurship Awards Ceremony 2019” in grand scale at the Sri Lanka Foundation premises Contents of the programme included - Introduction to on 30th October 2019. The Chairman of NEDA Dr. Siraz Business Management, Introduction to HR Management, Meerasahib was Chief Guest amidst other dignitaries. Introduction to employee Motivation, Team building games, Management games, Brainstorming, Brain teasing, Group The Awards Competition was designed for Micro, Small, works, Energizers etc, Mr. Gayan Jayathilake, Assistant Medium and Large sector entrepreneurs in the fields of Director – Procurement, NIBM joined as the Resource Industry/Manufacturing Sector, Agriculture/Livestock/ Person. The program was a success and all participants Fisheries Sector and Hospitality/Tourism & other services were presented a Certificate by the National Chamber of sectors and Awards are presented for best practices, Commerce of Sri Lanka. namely; Best Environmental Friendly Enterprise, Best Exporter, Best Productive Enterprise, Best Innovative Programme for SMEs in Polonnaruwa Enterprise, Best Value Added Enterprise, Best Energy A full-day capacity building training program was conducted Efficient Enterprise, Award for the Entrepreneur Provided by the National Chamber of Commerce of Sri Lanka, in the Most Number of Jobs for Females, Award for the Best association with the Polonnaruwa District Chamber of Woman Entrepreneur, Award for the Best Differently abled Commerce on “Team Building and HR Management” Entrepreneur, presented to the best performances in 08 for Small and Medium Enterprises (SMEs) on 15th of thematic areas. March 2019 at the National Youth Council Auditorium, Polonnaruwa. The program received the support of Bank of “The Best Entrepreneur of the Year 2019 – Western Ceylon. Province” is the most prestigious award of the event. It recognizes the most outstanding enterprise in the province, and in 2019 it was awarded to Wijaya Products (Pvt) Ltd.
The event was attended by a large gathering of SME and corporate sector Entrepreneurs together with Government officials, top corporates and representatives.
Regional Seminars Programme for SMEs in Anuradhapura A full-day capacity building training program was conducted by the National Chamber of Commerce of Sri Lanka, in association with the Anuradhapura District Chamber of Commerce on “Team Building and HR Management” for Small and Medium Enterprises (SMEs) on 14th of March 2019 at the Anuradhapura Chamber Auditorium. The program received the support of Bank of Ceylon.
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Contents of the programme included - Introduction to on identifying market trends especially for cut flowers and Business Management, Introduction to HR Management, biological features of cut flowers, foliage, as well as post- Introduction to employee Motivation, Team building games, harvest methodologies. Management games, Brainstorming, Brain teasing, Group works, Energizers etc and Mr. Gayan Jayathilake, Assistant Training Program for MSMEs in Colombo Director – Procurement, NIBM joined as the Resource As part of the Chamber’s initiatives on enhancing the skills Person. The program was a success and all participants of Micro, Small and Medium Enterprises, NCCSL conducted received a Certificate by the National Chamber of a one day workshop titled ‘SLS, ISO, Quality Certification Commerce of Sri Lanka for their participation. and Quality and Productivity of a Business Entity’, at the Chamber auditorium under the patronage of the Bank Programme for SMEs in Galle of Ceylon. Resource persons who conducted the event The Chamber in association with the Galle District Chamber were Ms. Theja Senarathne – Director of Marketing and of Commerce conducted a capacity building programme Promotion at the Sri Lanka Standards Institute (SLSI) and on “Beauty Culture” on 26th of March 2019 at the Galle Assistant Director of NIBM, Mr. Gayan Jayathilake. Both Chamber Auditorium with the support of Bank of Ceylon. shared valuable insights and expertise on planning their businesses.
Ms. Senarathne conducted training on the areas of SLSI Services; Certificates such as SLS, ISO, Vidatha, GMP, Quality certificates issued by the SLSI, Advantages of obtaining SLS standards & quality certificates; whilst the areas covered by Mr. Jayatilleke included - what is productivity & quality, how to apply productivity & the quality concept in organisations, identify productivity improvement methods, relationship between quality & productivity and team work etc. Majority of the participants were from Food, Spices, Soft Drinks & Herbal Product Manufacturing, Printing, Auto-mobile and Hospitality sectors.
Capacity Building Training Program for SMEs in Ampara A one day regional training programme on “Basic Accounting and Records Keeping” was held on 18th of July, 2019 for Small and Medium enterprise entrepreneurs in Ms. Shereen Fernando, Director of Janet Group was Ampara, in association with the Ampara District Chamber invited as the Trainer and she covered areas including of Commerce and supported by the Bank of Ceylon. It was Introduction to the Study of Skin /Maintaining the Health concluded with great success. of the Skin & Skin care demonstration, Introduction to the artistry in make up, introduction to the study of hair and Contents of the programme were: need for records, demonstration on long hair design and blow dry styling, record keeping, stock control, basic accounting, decision introduction to the nail care and demonstration on nail care making and taxation. The Resource person was Mr. Sarath design. The program was a success and all participants Munasinghe (BSc Public Administration (Special)) who were presented with a Certificate by the National Chamber possess over 25 years of experience in the field. of Commerce of Sri Lanka. The participants were from diverse business sectors such Training Program for SMEs in Gampaha as Beauty care, Automobile, Electrical items providers, Crafted to help expand the business potentials of growers Guest Houses, Food processing, Printing etc. The training of Anthuriums and Orchids in the Gampaha district, a one programme provided them the necessary insights in how to day training programme was held in partnership with the gain knowledge and be aware of the current management Gampaha District Chamber of Commerce. The program accounting and tax concepts. was titled ‘How to Expand Your Business Entity to the Next Level’ and was held in June 2019. The content of the In addition, a senior officer from the Bank of Ceylon Head program focused on, entering the International/Global Office made a special presentation on Enterprise Sri Lanka markets, on importing quality and new varieties of plants, Loan Scheme for SMEs. The event ended successfully with
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THE Chamber
BUSINESS DEVELOPMENT PROGRAMS - SME
satisfactory feedback from participants. At the end of the of the Inland Revenue Department, who was the Resource program, all participants were awarded a certificate by the Person at the event. The program contents included the Chamber. following - Brief introduction about the Inland Revenue Department of Sri Lanka, Taxes such as Value Added Tax Program on “Business Startups” in Kurunegala (VAT), Simplified Value Added Tax (SVAT), Nation Building Tax (NBT), With Holding Tax, PAYE, Income Tax, RAMIS The National Chamber of Commerce of Sri Lanka in System and other taxes. association with Sampath Bank PLC organised a one day workshop titled “Business Start ups” in Kurunegala, to The program was curated to provide participants the familiarise youngsters on business entrepreneurship and opportunity to gain knowledge, and awareness of all taxes help self-start businesses. The programme was held for and the RAMIS System. In addition to the above, a senior the second time which followed the first program held in officer from the Bank of Ceylon Head Office made a special Galle, in August 2018. The objective of this workshop was presentation on the Enterprise Sri Lanka Loan Scheme to educate prospective entrepreneurs on how to make for SMEs. The event ended successfully with satisfactory the correct decisions when starting a business, to gain feedback from participants. At the end of the program, all profitability and get good returns, increase quality and participants were awarded a certificate by the National productivity, access the appropriate technology, and how Chamber of Commerce of Sri Lanka. to market a product well. The program was also an initiative to help increase employment opportunities for youth and women in the region. Programme for SMEs in Kurunegala Conducted for the third successive year, a workshop was organised for Small and Medium Enterprises in the North Western Province, on the 12th of September 2019 at the Bright Bravo Hotel in Kurunegala. The program titled ‘Entrepreneurship & Business Planning’ was organised by the National Chamber of Commerce of Sri Lanka with the assistance of Pan Asia Bank.
Resource person, Mr. Gayan Jayathilake - Assistant Director of NIBM conducted the program, sharing valuable insights on the planning of a business, providing training to the attendees. All participants were awarded a certificate by the National Chamber.
Training Program for SMEs in Kegalle A full-day capacity training program was conducted by the National Chamber of Commerce of Sri Lanka, in association with the Kegalle District Chamber of Commerce on A further attraction in this workshop was a Career Guidance “Legal Environment of the Business” for Small and session, where the participants were educated as to how Medium Enterprises (SMEs) on 26th of October 2019 at they should correctly choose their future career, in line with Ambasewana Hotel, Kegalle. The program received the their knowledge, capacity and future ambitions. support of Bank of Ceylon.
Programme for SMEs in Badulla Contents of the programme included - Legal environment The Chamber hosted yet another capacity building program in Sri Lanka for business and industries, EPF and ETF, on “Taxation”, on 17th of August 2019. This was held in Labour relations, current changes of Business Law and association with the Uva Chamber of Commerce, under the other related topics. Mr. Ananda Sahabandu was invited as patronage of the Bank of Ceylon. The event was concluded the resource person; he is a retired Labour Commissioner successfully. and an Attorney-at-Law. The program was a success and was applauded by most participants who also conveyed The participants of the program consisted of Steel item their appreciation for the training program. Manufacturers, Automobile Industry, Security service providers, Advertising companies etc. The gathering was addressed by Mr. Kelum Wijeratne, Deputy Commissioner
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Attendees were from diverse business sectors such as food item manufacturers, light engineering, hoteliers, apparel manufacturers, cement producers etc. At the end of the program, all participants were presented a Certificate by the National Chamber of Commerce of Sri Lanka.
Entrepreneurship Development Program for SMEs in Kandy The Chamber organised a SME capacity building training programme on “Entrepreneurship” for Small and Medium Enterprise Entrepreneurs in Kandy with the support of Bank of Ceylon on 08th December 2019 at the Sampath Hall in Kandy. Attendees from various sectors were present at the program including entrepreneurs from food processing industry, spices, catering, printing and IT related companies, grinding mill owners, vegetable wholesale entrepreneurs and from other sectors. The programme ended on a NIBM Assistant Director Mr. Gayan Jayathilake (Professional positive note, as many participants expressed their Trainer and Consultant) conducted the training, through a appreciation to the National Chamber, for providing them structured program that included the topics pertaining to with the opportunity. Entrepreneurship, Leadership qualities of an entrepreneur, Teamwork in HRM, Communication in a business The program was conducted by resource personnel – Mr. organisation, Business innovations, Risk management in P. B. Tennakoon, an Engineer and a Trainer/Consultant in business, Marketing management, Profit maximisation professions with 30 years of experience in the areas of through managing costs and sales, Setting goals and training on enterprise development, industrial engineering, Formulating strategies. A certificate of completion was project management, entrepreneurship, and productivity issued to each participant. and quality etc. The contents of the programme were, what is entrepreneurship?, leadership qualities of an CSR Project entrepreneur, teamwork in HRM, communication in a business organisation, innovations, risk management in Workshop on Women’s Health and International Women’s business, marketing management, profit maximisation Day Celebrations through managing costs and sales, setting goals and During the year under review, the Chamber celebrated formulating strategies etc. A valuable certificate was issued International Women’s Day by treating our employees to a to each participant at the end of the session. session on Women’s Skin Care and Re-Productivity system. The Resource persons were Dr. D. Ariyawansa, Consultant Entrepreneurship Development Program for SMEs in Dermatologist, Sri Jayewardenepura Hospital and Dr. C Kurunegala Nelson of Apeksha Women’s Health Foundation. The Chief Guest of the event Mayor of Colombo City, Her Worship A capacity building training program on “Entrepreneurship” Rosy Senanayake, graced the event. for the Small and Medium enterprises in Kurunegala was conducted in association with Bank of Ceylon. The program was held on the 18th of December 2019 at Hotel Blue Sky. Participants from various industries attended the program, such as agriculture, coir products, book shops, dairy farming, plastic manufacturers, potable water bottling, hardware, gift items, construction, timber/furniture, guest houses, coconut products, grinding mills/ rice mills, software development companies and others.
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THE Chamber bilateral and strategic initiatives
BILATERAL RELATIONS • Bilateral Discussion with High Commissioner of “MEET THE AMBASSADOR PROGRAM” Malaysia A bilateral discussion was held between Sri Lanka THE CHAMBER’S MEET THE AMBASSADOR and Malaysia in September 2019. H.E. Tan Yang PROGRAM WAS CURATED TO HOST Thai, High Commissioner of Malaysia, Mr. Ismail M AMBASSADORS AND HIGH COMMISSIONERS Bkri, Minister Counsellor, Mr. Roswaidin Mohd Zain, Malaysia Investment Development Authority (MIDA) FROM FOREIGN MISSIONS. THIS IS A KEY and Mr. Muzzafar Shah Hanafi, Malaysia External Trade STRATEGIC INITIATIVE THAT HELPS FOSTER Development Corporation (MATRADE) attended the AND ENHANCE BILATERAL RELATIONS AND discussion and meeting. TRADE AGREEMENTS BETWEEN OTHER COUNTRIES. IT EXPOSES THE CHAMBER AND THE COUNTRY TO PREVIOUSLY UNEXPLORED AREAS OF BILATERAL COOPERATION, ALLOWS US TO DISCUSS POSSIBLE PROJECTS WHILE FORMING NEW COLLABORATIVE NETWORKS WITH THE INTERNATIONAL DIPLOMATIC, GOVERNMENTAL AND BUSINESS COMMUNITIES.
• Chamber Hosts Ambassador of Myanmar Hosting the Ambassador of Myanmar, the National Chamber concluded yet another meeting, under the banner, “Meet the Ambassador”, which was held on • Hosted High Commissioner of Republic of Namibia 10th April 2019. H.E. Han Thu, Ambassador of Myanmar A Meeting with H.E. Gabriel Sinimbo, High Commissioner attended the event, together with Mrs. Chaw Su Mya, of Republic of Namibia in New Delhi, was held on the 1st Counsellor. Second Secretary from the Embassy of of October 2019, at the National Chamber Boardroom. Myanmar, Mrs. Hsu Ma Ma Hein was also present at the event. Also present at the program was Chamber • Bilateral Discussion with High Commissioner of representatives Mr. Asela de Livera, President, Mr. Australia Deepal Nelson, Deputy President and Mr. Bandula Dissanayake, CEO/Secretary General. Import, Export A session was conducted on “Bilateral Trade between opportunities and investment promotions were Sri Lanka and Australia” with the participation of the High discussed at this event. Commissioner of Australia, H.E. David Holly, on the 5th of November 2019, at the Chamber auditorium.
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DISCUSSIONS WITH FOREIGN DELEGATIONS represented by Mr. Asela De Livera, President , Mr. Bandula Dissanayake, CEO/Secretary General and Mr. • Meeting with the Department of Commerce, Jiangsu Tissa Ruberu, Assistant Secretary General. Province, China In April 2019, a meeting was conducted between • Meeting with Iranian Delegation representatives of the Department of Commerce, Jiangsu Province, China, at the Boardroom of the An Iranian delegation from the Islamic Consultative National Chamber of Commerce. The Chinese Assembly (Parliament) visited the National Chamber delegation was led by Mr. Zhang Daozhon - Deputy on 1st April, 2019. The Iranian delegation was led by Counsel, Department of Commerce, Jiangsu Province; Hon. Hamidreza Fouladgar - Member of the Islamic while Mr. Lu Ting and Ms. Yu Lu from the Department Consultative Assembly, while Hon. Hojat Najafzadeh, of Commerce, Jiangsu Province and Mr. Xia Qi from Hon Hossein Amirikhamkani Hon. Mehrdad Baoujlahoti the International Business Department China National and Hon. Mohammad Feizizengir were part of the Chemical Engineering also participated in this delegation delegation.
The Chamber was represented by Mr. Asela de Livera - President, Mr. Deepal Nelson - Deputy President and Mr. Mr. Lucien Pereira represented the China Business Bandula Dissanayake - CEO/Secretary General. The Corporation Council while the Chamber was represented discussion focused on the possible business by Mr. Asela de Livera, President, Mr. Deepal Nelson, development activities between Iran and Sri Lanka, Deputy President and Mr. Bandula Dissanayake, CEO/ Investment Promotion and Trade Development activities Secretary General, National Chamber. were also taken under discussion.
• Meeting with Delegation from Quanzhon Chamber of Commerce A delegation from the Quanzhon Chamber of Commerce visited the Chamber on 01st March 2019. The discussion was held between the Quanzhon Chamber of Commerce and the National Chamber of Commerce of Sri Lanka to sign a MOU in the future.
Mr. Li Yiping - the Deputy Chairman of CPPCC Quanzhou, Mr. Huang Yanping - the President of CCPIT Quanzhon, Ms. Ni Jingyun - Deputy Director of Government Office Quanzhon, Mr. Zhan Qinghai - the General Manager of Quanzhon Culture and Tourism Development Group Company and Mr. Chen Wanlon - Interpreter of Quanzhon City Government Office participated at this discussion and the Chamber was
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THE Chamber bilateral and strategic initiatives
• Meeting with Bangladesh Delegation • Meeting with Malaysian Delegation A delegation comprising of senior officials from the A meeting was conducted with the objective of Government of Bangladesh was hosted by the Chamber. assessing prospective opportunities for obtaining the The purpose for their visit was to conduct a study tour on assistance of the Chamber for promoting business REX system in connection with the GSP+ facility for EU. in Sri Lanka. The discussion was conducted with the participation of Vice Chancellor, Prof. Dr. Mokhtar Abdullah and Ms. Zaliha binti Idris, International Relations Coordinator of the University of Malaysia Computer Science and Engineering. The meeting was held on 26th March 2019 at the Chamber premises. Mr. Bandula Dissanayake - CEO/Secretary General and Mr. Tissa Ruberu - Assistant Secretary General of the Chamber attended the meeting.
• Hosted Delegation from Southern Gujarat A team of personnel from the Southern Gujarat Chamber of Commerce and Industry SGCCI visited the National Chamber of Commerce on the 17th of September 2019. The delegation included - Mr. Ketan Paragji Desai - President, Mr. Dinesh Kumar Navadiya - Vice President, Mr. Hetal Rumendra Mehta - Imm. Past • Meeting with ADB Mission President, Mr. Shailesh Dhirubhai Desai - Hon. Treasurer, A meeting was organised with the ADB Mission on SRI Mr. Rohitkumar Shashikant Mehta - Past President, Cluster Development and Small and Medium Enterprise Mr. Atul Chandravadan Pathak, Head - Administration Finance Innovation – Gender Gap Assessment. Mr. Cell and Mr. Mitishkumar Sanmukhlal Modi, Convener - Takuya Hoshino, Financial Sector Specialist, Ms. Uresha Representation Cell. Walpitagama, Project Manager (Consultant), Ms. Savindi Jayakody, Associate Economic Officer, Mr. Sudarshana STRATEGIC INITIATIVES Anojan, Social Development and Gender Specialist. MEMORANDUMS OF UNDERSTANDING • MOU between NCCSL and SLCPI • Meeting with Hon. Consul for Hungary A Memorandum of Understanding was signed between A meeting was held on the 13th of February with the the National Chamber of Commerce of Sri Lanka and the Hon. Consul for Hungary, H.E. Rohan Nanayakkara Sri Lanka Chamber of Pharmaceutical Industry, in order on the session of the joint commission on economic to improve the member activities of both organisations. cooperation which was also held on 23rd – 24th April Mr. Asela de Livera, President of the National Chamber 2019 at Budapest, Hungary. and Dr. Lohitha Samarawickrema, President of the Chamber of Pharmaceutical Industry signed the MOU on 18th of April 2019.
• MOU between NCCSL and National Chamber Youth Forum A Memorandum of Understanding was signed between the National Chamber of Commerce of Sri Lanka and the National Chamber Youth Forum on 1st April 2019. Mr. Deepal Nelson - Deputy President, signed on behalf of the National Chamber and Ms. Rochelle Tissera signed on behalf of National Chamber Youth Forum. The Youth Forum plans on conducting multiple programmes on“Entrepreneurship Development and SME Development”.
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• Networking Session with the Minister Counsellors of Sri Lankan Missions A meeting aimed at creating a context for networking was organised with the newly designated Commercial representatives of Sri Lankan Missions in Mumbai, South Africa, Saudi Arabia and Vietnam. Present at the meeting was, Mr. Sanjeewa Pattiwila, Minister Counselor (Commercial) -Riyadh, Saudi Arabia, Mr. Sandun Sameera, Counselor (Commercial)-Mumbai, India, Mr. Sanjeewa Bandara, 3rd Secretary (Commercial) Pretoria South Africa and Mrs. Prasadi Boomawalage, 3rd Secretary (Commercial) Hanoi Vietnam. Chamber representation was formed by Deputy President, Mr. Deepal Nelson, CEO/ Secretary General, Mr. Bandula Dissanayake and member companies. The meeting was held at the Chamber Boardroom. • MOU between the National Chamber and Polish Chamber of Commerce • Discussion with Ambassador to Oman A memorandum of understanding was signed between Discussing trade and investment development the two chambers on the 5th of November, 2019. activities in detail, a meeting was held between the Representing the National Chamber was President - newly designated Ambassador to Oman, Mr. Ameer Mr. Asela de Livera, and Mr. Jerzy Drozdz, Ambassador, Ajwad on the 14th of June at the Chamber Boardroom. Member of the Board, Polish Chamber of Commerce. The Chamber was represented by President Mr. Asela The signing was held at the Export Development Board. de Livera, Mr. Bandula Dissanayake, CEO/Secretary General and Assistant Secretary General, Ms. Shriani • MOU between NCCSL and China Chamber of Rambukwella. International Commerce (CCOIC) A MOU was signed between the Chamber and the • Meeting with Ambassador Designate to Vietnam Quanzhou Chamber of Commerce on the 1st of April A meeting was held with Mr. W. G. S. Prasanna, Sri Lankan 2019. Ambassador designate to the Socialist Republic of Vietnam on the 24th September 2019. • MOU signed with the Sri Lanka Chamber of Medical Industry HOSTED EVENTS A MOU was signed between NCCSL and the Medical • Get-together of the Sri Lanka Bangladesh Business Industry Chamber on the 4th of April 2019. Corporation Council The function was organised by the National Chamber • Signing of MOUs with Regional Chambers and Synex International (Pvt) Ltd, a Sri Lankan Investor The National Chamber of Commerce of Sri Lanka signed in Bangladesh, conducted at the Sinhalese Sports MOU with the Puttalam District Chamber of Commerce, Club on the 09th of January 2019. The Special Guest Industry and Agri businesses, Wayamba Chamber of Speaker of the event was H.E. Riaz Hamidullah, the Commerce, Galle Chamber of Commerce, Uva Chamber High Commissioner of Bangladesh in Sri Lanka who was of Commerce and Anuradhapura Chamber of Commerce accompanied by the Commercial Counsellor. ensuring Business Development in the region. The keynote of H.E. Riaz Hamidullah comprised of key DIPLOMATIC DISCUSSIONS insights crucial for investing in Bangladesh; he directed • Hosting Sri Lankan Ambassador to Kuwait the audience to prospective investment opportunities and related incentives offered when investing in A meeting was conducted with Mr. Mohammed Jauhar, Bangladesh. He also carried out one-to-one discussions Ambassador Designated to the State of Kuwait – 2nd of with the audience, exchanging trade related information. September 2019. The audience was formed by future and present members of the SL-Bangladesh Business Cooperation Council. The evening was concluded by a fellowship dinner.
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THE Chamber bilateral and strategic initiatives
• AGM of Sri Lanka Bangladesh Business Corporation MEETINGS WITH MINISTERIAL AND Council ORGANISATIONAL AUTHORITIES The Council’s Annual General Meeting was held on • Meeting with Hon. Eran Wickramaratne 26th January2019, conducted at the Board room of During a meeting held with Hon. Eran Wickramaratne, the National Chamber of Commerce. At the meeting, State Minister of Finance on the 22nd of May 2019, the Ms. Renuka Jayamanne was appointed as the President congregation addressed issues faced by the Business of the Council. Thanking the gathering on her new Community due to the prevailing concerns on national appointment, Ms. Jayamanne then stressed on the security. The Chamber was represented by President Mr. 45 year Diplomatic relations the two countries share, Asela de Livera, Mr. Deepal Nelson, Deputy President and which provides the context for solidifying economic many member companies. cooperation between the two nations. • Meeting with Department of Agriculture • Post Budget Press Conference A meeting with Dr. W.H.W. Weerakoon - Director General In March, the Chamber held its Post Budget Press of Agriculture, Department of Agriculture, Peradeniya Conference, chaired by Mr. Nandika Buddhipala, Senior was held on 09th May 2019, at the Boardroom of the Deputy President of the National Chamber alongside National Chamber. The Chamber was represented by the Chamber President, Deputy President and Secretary President Mr. Asela de Livera, Mr Deepal Nelson, Deputy General/CEO, and Mr. Gajendran from Gajma, who President and Mr. Bandula Dissanayake, CEO/Secretary attended the event as a special invitee. General.
• Chamber Representation in PUSL Public Consultation • Meeting with Asian Development Bank Mr. Bandula Dissanayake, Secretary General/CEO of the Local Consultants, Mr. Udaya Wewelwala and Ms. Prema National Chamber of Commerce was invited to speak Gamage discussed the work flow of the Gender Gap at the Public Utilities Commission of Sri Lanka (PUCSL), Assessments; this was held on the 9th of August 2019. Public Consultation on Natural Gas policy which was held on 28th March 2019 at BMICH. At this occasion, the Chamber highlighted the fact that the • Meeting with Asian Development Bank Gender Gap Sri Lankan businesses should be prepared in meeting Assessment Team new challenges in up stream, mid stream and down A meeting was held on the 2nd of September 2019, stream aspects. with members of the delegation - Ms. Soma Dutta, International Gender Specialist, Ms. Prema Gamage, National Gender Specialist, Mr. Udaya Wewalwala, • NBEA Announcement Event National Team Leader and Ms. Uresha, ADB At the event, the NBEA trophy was unveiled by Mr. Representative. Asela de Livera - President of the Chamber, alongside other Office Bearers, amidst a large gathering of leading business organisations, guests and invitees, • Meeting with Mr. Jerzy Drozdz, Ambassador especially with the participation of potential applicant Member of the Board, Director, and Foreign Relations organisations interested in competing for the NBEA Department of Polish Chamber of Commerce had 2019 Awards. a meeting with Mr. Asela de Livera President, on 6th November 2019.
• Meeting with Humedica International Co Founder of the Humedica International, Germany Mr. Wolfgang Gross and Dr. Prithiviraj, CEO, Humedica International Lanka met with Chamber Officals to discus collaborative SME development activities.
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CHAMBER SUPPORTED EVENTS • Job and Career Fairs • Expo Dubai - 2020 Chamber supported a Job/ Career Fair (Motivation A high-level delegation visited the UAE for the signing Programme) for school leavers and job seekers in of the contract for participating in EXPO DUBAI – 2020. collaboration with the relevant stakeholders. These The delegation was headed by Deputy Minister of were conducted on four separate days at four separate Development Strategies and International Trade Nalin locations and included Eastern University of Sri Lanka Bandara. The highly awaited exposition welcomes – Batticaloa, at District Secretariat Kalutara, at Ruhuna over 190 participating nations with over 25 million University –Matara and at the Sabaragamuwa University. internationals visitors. This year’s theme is set to be, ‘Connecting minds, Creating the future’ and is expected to last 173 days. CEO of the National Chamber of Commerce Mr. Bandula Dissanayake was also part of the Sri Lankan delegation.
• Entrepreneurship 360 The first initiative of its nature, the ‘Entrepreneurship 360’ forum was launched by the NCCYF headed by renowned corporate leaders and ideologists. The forum participants were mainly young entrepreneurs, startups and future entrepreneurs as well as to-be start-ups, SME owners and recent graduates. The main topic of discussion was on how entrepreneurs and startups navigate through the tough challenges and after - effects of the Easter attacks. Challenges addressed were economic instability, social differences and lack of governmental support.
The National Chamber of Commerce – Youth Forum (NCCYF) was established in January of 2019 with the objective of addressing and representing the requirements and issues faced by young entrepreneurs and start-ups in Sri Lanka.
65 THE NATIONAL CHAMBER OF COMMERCE OF SRI LANKA ANNUAL REPORT 2018/19 Capital Report
THE NATIONAL CHAMBER OF COMMERCE HAS AMASSED A VAST NETWORK OF RESOURCES AND EXPERTISE OVER THE YEARS. AND TOGETHER WITH OUR MEMBER ORGANIZATIONS WE TAKE STRATEGIC MEASURES TO DISTRIBUTE INDUSTRY SPECIFIC EXPERTISE, TRAIN BUSINESSES IN CRUCIAL AREAS OF OPERATIONS, WHILE BUILDING NEW NETWORKS OF BUSINESS CONNECTIONS IN THE LOCAL AND GLOBAL MARKETS.
The intellectual capital we possess enables us to develop Medium and Large Enterprises, representing the industries entrepreneurs, enterprises and employees, especially of Manufacturing, Agriculture, Livestock, Fisheries and within the SME sector, educating, training and preparing Services. them to work in an efficient manner. Our intellectual propensities and resources have allowed us to appreciate National Chamber Youth Forum and recognise entrepreneurs for their achievements while In 2018, the Chamber introduced the Chamber Youth encouraging them to achieve success. Benchmarked Forum, as a way to recognize the need to groom the next as industry standards, the Chamber has successfully generation of business leaders, in preparing for the growth established various programs and reward platforms that and sustainability of the national chapter. The youth forum have now become key annual events, making them part of has been formed by a capable team of young entrepreneurs our intellectual capital. and young professionals from diverse sectors.
Flagship Business Awards The main objective of the forum is to represent The Chamber hosts two annual award ceremonies which independent views and opinions of the new generation of have become national benchmarks in recognizing best young leaders and give them an opportunity, to share and performing enterprises and business leaders. develop their knowledge base and skills, create and expand business networks. It is the belief of these individuals that The National Business Excellence Awards designed through a united network they will be able to contribute to recognize and reward Sri Lankan businesses with to the progress of our economy, and provide exemplary commendable achievements, was held for the 16th achievements to the world. consecutive year in 2019. Awards were presented to enterprises that have achieved business excellence in The forum is expected to achieve the following the areas of leadership, corporate governance, capacity • Drive financial sustainability in the start-up and micro building, performance management, global and local market enterprise sector. research, CSR, environmental sustainability and financial results. Gathering acceptance as a national benchmark • Provide professional development by organizing for awards in business excellence, NBEA has become a international meetings, youth forums and joint projects. platform for many enterprises to achieve their objectives • Create a platform for interaction between young leaders, with commitment and hard work. The 2019 awards experts, representatives of business and government, ceremony was held on the 13th of December, at the Hilton facilitating swift cooperation over a wide range of issues. Hotel amidst the participation of the business fraternity, political and diplomatic guests. More than a hundred awards Print Communiqué – ‘Voice of Business’ Magazine were presented to winners, across the categories - extra- Issued quarterly, the Voice of Business magazine provides large, large, medium, small and micro enterprises. stakeholders information on Chamber programs, workshops and meetings conducted within each three Our second flagship award ceremony is the ‘Entrepreneur month period. The magazines provide a detailed view Awards 2019 – Western Province’, which is a joint award of workshops conducted for the business community ceremony and organized in partnership with the National including regional training programs conducted for MSMEs, Enterprise Development Authority (NEDA) and the Ministry business delegations who visit the Chamber, discussion of Industry and Commerce. This year’s award ceremony with foreign delegations, meetings and discussions was hosted with the participation of senior officials of with various sections of the business fraternity, special the Ministry, representatives from NEDA and a large occasions, events supported by the Chamber, exhibitions, gathering of entrepreneurs from the Western Province. and our award ceremonies. The ceremony was held for the fourth consecutive time, on the 30th of October, at the Sri Lanka Foundation Institute. Winners were selected from the categories of Micro, Small,
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It’s developed as part of the Chamber’s responsibility of products and services. While MSMEs might not always towards stakeholders in communicating its quarterly have the financial capacity to innovate, intellectual property progress, as well as for the use of the business community will provide the base for innovation to begin. Encouraging including organizations, entrepreneurs and those seeking new ideas, fresh thinking and knowledge in innovative information on the National Chamber of Commerce of processes and production methods is crucial for Micro, Sri Lanka. Small and Medium Enterprises.
Chamber Initiatives – SME Development The Chamber provides a valuable service in guiding and During the year under concern, the Chamber executed a educating the business community, from MSMEs to range of planned initiatives, aimed at providing assistance larger organizations in adopting new innovations and in to SMEs from Colombo and across all provinces of the creating innovative methods that makes businesses grow island. Both internal and external factors that affect SME competitively. businesses were considered and addressed through these events. Innovation allows access to wider markets, especially for SMEs to modernize and innovate in our competitive The Chamber’s capacity building initiatives are carried business world. Through innovation, SMEs can pursue out every year. These are organized at a regional level, increased productivity and reduced operational costs covering various districts and cities outside of Colombo. making them fare better within adverse macro and micro In addition, to these we also conduct workshops created economic conditions, while being competitive. It allows around various subjects that are of importance to business any business to brand and market products/services with operations and trade related activities. For a full account of competitive selling points at competitive prices while this year’s programs and events please refer the section – entering a larger market share while gaining access to the Business Development Program - SME. global markets.
Management and Human Capital Development Determinants of SME Growth Due to the limited managerial skills and the semi-skilled Finance and Related Services nature of their human capital, SMEs face operational Access to Finance is an absolute necessity for any challenges when compared with much larger enterprises. commercial entity to thrive. It’s the fundamental premise These root causes can lead to a low level of productivity, that allows an organization to acquire necessary resources, wasteful use of raw materials and labour inefficiencies as use new technologies, hire the right people and maintain well as wastage of tools and other resources. Meanwhile stability and growth by investing in the right assets and ineffective processes can be costly and wasteful, resulting resources, at the right time. A lack of funding can lead in longer lead times or turnaround times in service, having to disruptions in business, causing disrupted processes, a ripple effect on overall business performance. The dissatisfied employees, dwindling profits and ultimately Chamber takes into account these gaps and target SMEs dissatisfied customers. through relevant training sessions, leadership programs and by making available services such as research and While organizations with bigger financial capacities might not administrative services, which will enable them with overall always face these risks more harshly, SMEs have reluctance productivity. to expand due to lack of funding caused by a further dislike to borrow loans under hire interest rates or enter into Promoting Technology amongst SMEs compromising investment agreements. This renders them Innovation comes in various forms, whether it is an uncompetitive in the long run, with less value and incapacity innovative idea for a new product or service, a new to innovate and grow. Further, trade financing instruments technology in production, or innovative methods of such as factoring, letter of credit, guarantees, export and conducting operational processes, or a novel way of credit insurance have become increasingly important to branding and marketing products and services, innovation reducing the risk of cross border transaction of SMEs. happens at every point. It’s a crucial fact in deciding the level of success a business is likely to achieve and should be It is in these aspects that the Chamber provides SMEs fostered by all businesses at some point of the business. the chance to receive training and insights, while guiding businesses on to the right track that leads to being Innovation, especially in production based businesses profitable and competitive. We aim to lessen the difficulties has become critical. Innovative production methods are caused by lack of knowledge in financial instruments and adopted by larger organizations to achieve economies of lack of access to funding sources by mediating or helping scale, while being competitive in lead times and the quality MSMEs connect with the right network of support.
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Capital Report
Information and Infrastructure Furthermore, the financial constraints and obstacles Entering global markets, SMEs face tremendous challenges of internationalization are greatly reduced, enabling owing to limitations in information and infrastructure. For SMEs to find markets, get connected with international easing their concerns and challenges in entering global production networks and make online payments. Based on markets, business/industrial information and the right developments, information technology facilities could be infrastructure (physical and technological) is essential. adopted not only for business connectivity but also in cross Understanding of global market trends and other border trading activities that reduce cost and time. information pertaining to buyers is vital; furthermore, knowing regulatory requirements and standards also The Chamber sees that it is crucial for government as require extensive learning and a keen understanding. well as private organizations to empower SMEs with the resources for digital communication and in streamlining Another crucial aspect is having the right contacts in operational processes to digital platforms, which will enable international markets. A lack of established business them to expand their businesses to meet the market needs contacts can present tremendous challenges to SMEs. in Sri Lanka as well as in global markets. As globalization And added to these concerns is the distance of SME to the continues to connect developing countries with developed trading partner where measures need to be taken to ensure nations, the potentials for growth and earning a wider proper transportation and delivery of goods, in a timely income are limitless. While the policy framework has already manner. It becomes imperative to have access to facilities been designed, it is mandatory for it to be expedited for cross border transactions namely single window strongly, starting with educating entrepreneurs in rural, operations, and in this regard trade portals can reduce the urban and semi-urban areas as well as providing them time taken for importing and exporting and make processes with the right financing in acquiring digital infrastructure- more effective. Availability of Information technology enhancing their intellectual capacities. and telecommunication based infrastructure for trading activities will increase the market access of SMEs to a great A Digital Platform for Sri Lankan Products to reach extent. International Market There is absolute necessity for MSMEs in Sri Lanka to Intellectual Property Rights access their Customers overseas through a credible The innovative products, ideas and services of SMEs should authentic web platform. A solution similar to Alibaba in be protected under Intellectual Property Rights. This avoids China, IndiaMART in India could be taken as good examples. competitors from easily copying or simulating similar By creating such platforms for Sri Lanka, the National products and innovations which may threaten the survival Chamber believes that potential Sri Lankan products will of Small businesses. However, legal overheads, multiple reach their market destinations. To meet this requirement fillings, technical and regulatory differences across different the National Chamber has embarked on a nationally countries make it unviable for SMEs to seek property rights. important mission to develop and professionally manage a web based platform called “Fromsrilanka”. However, on the positive side, if our SMEs can be supported in gaining legal rights over their intellectual property, then their potentials will expand, giving them the capability to reach external financing sources, to acquire expert knowledge in enhancing their intellectual specialties while entering business partnerships that have joint benefits as well as the ability to grow their businesses both locally and internationally.
Adopting Digital Technologies Embracing digital transformation has become a crucial determinant of success as business presence on digital mediums can now provide access to wider and previously untapped markets. It has become a measure of gauging the propensity of a business to innovate and grow, while making it the preferred method of obtaining services by customers out there.
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FINANCIAL CAPITAL
OVERALL PERFORMANCE During the year under review, the Chamber has accumulated a revenue surplus of LKR 12,473,571 after THE CHAMBER PROUDLY SERVES A deducting tax expenses for the time period. Although this MEMBERSHIP BASE OF 713 WHICH is a clear reduction compared to the corresponding period, INCLUDES CORPORATES AND OUR SME the reduction has resulted from an increase in tax expenses during the period under concern. A tax rate of 14% has now MEMBERS. been applied to the taxable income, which came into effect on the 1st of April, 2018, in accordance with Inland Revenue Act No. 2017. MEMBERSHIP GROWTH Revenue for the period had increased comparatively due The Chamber proudly serves A membership base of to an increase in Certificate of Origin and from an increase 713 which includes corporates and our SME members. in Members’ Subscriptions. Other operating income has During the year under review, there was an increase in experienced an overall decline compared to the previous memberships, adding to the growing number of enterprises financial year. that has placed their confidence in the Chamber for developing their business aspirations. Equity Total Equity of the Chamber stood at LKR 131 million as at 21st March 2019 presenting an increase of over LKR 12 million.
Number of Members
800
700 2010 - 534
600 2011 - 580 2012 - 608 500 2013 - 633 400 2014 - 646 2015 300 - 659 2016 - 672 200 2017 - 685 100 2018 - 698 2019 - 713 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
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Capital Report
“voice of business” news magazine of The National Chamber
1st Quarter 2nd Quarter
3rd Quarter 4th Quarter
70 THE NATIONAL CHAMBER OF COMMERCE OF SRI LANKA ANNUAL REPORT 2018/19 Risk Management
RISKS ARE INHERENT IN ANY CATEGORY OF BUSINESS. AND NON-PROFIT BUSINESSES ARE NO EXCEPTION, WHETHER THE RISK EXPOSURES ARE EXTERNAL OR INTERNAL. AS A NON-PROFIT BUSINESS WE HAVE CREATED A FRAMEWORK FOR MITIGATING AND HANDLING RISK, TAKING BOTH PROACTIVE AND REACTIVE MEASURES INTO CONSIDERATION. THEREFORE, RISK MANAGEMENT REMAINS A CENTRAL PART OF THE CHAMBER’S OPERATIONS AND A KEY ASPECT THAT ENSURES THE SUSTAINABLE PROGRESS OF OUR ORGANIZATION.
Understanding the notion, that in business risk is inevitable The composition of the council is a significant fact in and at times necessary for envisioning strategic measures respect of the operational risks. The council comprises during challenging times, the Chamber seeks to protect our of seven intellectual experts in the business field who are member organizations, employees and other stakeholders. necessary for the operations of the National Chamber. Our risk management process is developed to sustain the Thus, the council members are well composed to help the value we deliver to our stakeholders by ensuring that we Chamber operate with minimum risk exposures. effectively identify and mitigate the range of structural, operational, financial and strategic risks that may prevent Recruitment to the Chamber is carried out in a more the Chamber from meeting its objectives. efficient manner selecting the right candidates with right qualifications and skills without any prejudice. Hence, The National Chamber carries out risk management on a the organization is benefited with a stable, competent continued basis, so as to reduce the exposure to risk and workforce. Training and development, recognition and improve returns to stakeholders. All risks that may affect performance based rewards system has been identified as the Chamber either externally or internally is embedded in important tools, enhancing the effectiveness and efficiency the entire risk management process of National Chamber. of human resources. The assessment of such risks, their impacts and related responses are set out below. Technological Risk Internal Risks Our Concern Operational Risk The risks and possible disruption to daily activities associated with moving to a technology based platform, Our Concern but most importantly the risks involved in malfunctions Operational risks involve the effectiveness and efficiencies in the infrastructure. Lack of knowledge in adopting new of human resources, integrity of the internal control technological measures which are vital for operations is systems and processes, and external factors that affect also seen as an area of challenge and risk. day to day operations. It also includes execution risks, unfavorable regulation changes, decency on member Impact institutions’ safety and health, fire and environmental risks Any disruption or failures to systems, infrastructure and inherent with business activities of the National Chamber. applications may have negative impact on the operations of the National Chamber, stalling opportunities and leading to Impact further financial losses. Risks associated with these areas of concern has the propensity to directly impact the ongoing concerns of Our Responses our operations, and negatively impact the efficiency and Robust IT and security systems and comprehensive IT effectiveness of our services to member organizations and systems are currently being acquired, which will enable the stakeholders. Association to project and measure resource requirements effectively. Employees and Resource persons with the Our Responses experience and expertise to provide timely and effective The operations of the organizations are covered through solutions to technological issues is also sought, while internally driven risk measures. Further, accounting controls training is provided to employees who are not proficient in are done in a more efficient and transparent manner. IT related aspects and on the efficient and proper methods of usage of systems for daily operations.
71 THE NATIONAL CHAMBER OF COMMERCE OF SRI LANKA ANNUAL REPORT 2018/19
Risk Management
External Risks Liquidity Risk Financial Risk Management Our Concern Our Concern The risk is based on the possibility of the Chamber not having sufficient cash to meet its obligations on time. The Chamber’s activities are exposed to a variety of financial risks such as Interest Rate Risk and Liquidity Risk, and the Chamber’s overall risk management program Impact focuses to minimize potential adverse effects on financial It will directly impact the credit worthiness of the institution performance. as well as the image of the National Chamber of Commerce of Sri Lanka. Interest rate Risk Our Concern Our Responses Interest rate risk is the adverse and unanticipated To meet the creditors’ demands, National Chamber movements in future interest rate which arises from maintains the liquidity level at an optimum and we ensure business activities such as short term and long term that the Chamber meets the demand of the creditors on investments which are earned finance income. time.
Impact It may create negative impact to the surplus of the statement of the comprehensive income.
Our Responses Implement internal policy for short term and long term investments and divert more funds to short term investments due to current interest rate trends.
72 Financial Statements THE NATIONAL CHAMBER OF COMMERCE OF SRI LANKA ANNUAL REPORT 2018/19 Independent auditors’ report
INDEPENDENT AUDITOR’S REPORT Other Information The Council is responsible for the other information. The TO THE MEMBERS OF THE NATIONAL CHAMBER other information comprises the information included in the OF COMMERCE OF SRI LANKA annual report, but does not include the financial statements Report on the Audit of the Financial Statements and our auditor’s report thereon.
Opinion Our opinion on the financial statements does not cover We have audited the financial statements of The National the other information and we do not express any form of Chamber of Commerce of Sri Lanka (“the Chamber”), assurance conclusion thereon. which comprise the statement of financial position as at 31 March 2019, and the statement of income and expenditure, Responsibilities of Council and Those Charged with statement of changes in funds and statement of cash Governance for the Financial Statements flows for the year then ended, and notes to the financial The Council is responsible for the preparation of financial statements, including a summary of significant accounting statements that give a true and fair view in accordance policies. with SLFRS for SME, and for such internal control as council determines is necessary to enable the preparation In our opinion, the accompanying financial statements give of financial statements that are free from material a true and fair view of the financial position of the Chamber misstatement, whether due to fraud or error. as at 31 March 2019, and of its financial performance and its cash flows for the year then ended in accordance with In preparing the financial statements, council is responsible Sri Lanka Accounting Standard for Small and Medium-Sized for assessing the Chamber’s ability to continue as a going Entities (SLFRS for SME). concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting Basis for Opinion unless council either intends to liquidate the Chamber or to We conducted our audit in accordance with Sri Lanka cease operations, or has no realistic alternative but to do so. Auditing Standards (SLAuSs). Our responsibilities under those standards are further described in the Auditor’s Those charged with governance are responsible for Responsibilities for the Audit of the Financial Statements overseeing the Chamber’s financial reporting process. section of our report. We are independent of the Chamber in accordance with the Code of Ethics issued by CA Sri Lanka (Code of Ethics) and we have fulfilled our other ethical responsibilities in accordance with the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
74 THE NATIONAL CHAMBER OF COMMERCE OF SRI LANKA ANNUAL REPORT 2018/19
Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SLAuSs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
A further description of the auditor’s responsibilities for the audit of the financial statements is located at Sri Lanka Accounting and Auditing Standards website at: http://slaasc. com/auditing/auditorsresponsibility.php. This description forms part of our auditor’s report.
Report on Other Legal and Regulatory Requirements As required by section 163 (2) of the Companies Act No. 07 of 2007, we have obtained all the information and explanations that were required for the audit and, as far as appears from our examination, proper accounting records have been kept by the Chamber.
CHARTERED ACCOUNTANTS Colombo, Sri Lanka 16 October 2019
75 THE NATIONAL CHAMBER OF COMMERCE OF SRI LANKA ANNUAL REPORT 2018/19 Statement of financial position
As at 31st March, 2019 2018 Note Rs. Rs.
Assets Non current assets Property, plant and equipment 2 22,535,814 26,406,511 Intangible assets 3 250,177 275,085 Deferred tax assets - 494,796 Total non current assets 22,785,991 27,176,392 Current assets Trade debtors 4 446,321 1,557,248 Other receivables 5 4,529,601 4,463,485 Income tax recoverable - 433,362 Short term investments 6 109,597,843 92,263,817 Cash and cash equivalents 7 8,598,154 7,837,250 Total current assets 123,171,919 106,555,162 Total assets 145,957,910 133,731,554 Funds Accumulated fund 130,601,102 118,127,531 Building donation fund 126,224 152,816 Other funds 8 122,841 122,841 Total funds 130,850,167 118,403,188 Non current liabilities Rent received in advance 9 2,250,470 2,793,050 Retirement benefit obligation 10 4,293,564 5,211,874 Deferred tax liabilities 11 242,065 - Total non current liabilities 6,786,099 8,004,924 Current liabilities Trade and other payables 12 5,254,850 6,641,542 Rent received in advance 9 612,240 681,900 Income tax payable 2,454,554 - Total current liabilities 8,321,644 7,323,442 Total liabilities 15,107,743 15,328,366 Total funds and liabilities 145,957,910 133,731,554
The financial statements are to be read in conjunction with the related notes, which form an integral part of these financial statements of the Chamber.
I certify that these financial statements are prepared in compliance with the requirements of the Companies Act No. 07 of 2007
Gamini Wimalasuriya Hony. Treasurer
The Council is responsible for the preparation and presentation of these financial statements in accordance with SLFRS for SMEs. Signed and approved for and on behalf of the Council:
Asela De Livera Nandika Buddhipala President Deputy President
16 October 2019 Colombo
76 THE NATIONAL CHAMBER OF COMMERCE OF SRI LANKA ANNUAL REPORT 2018/19 Statement of income and expenditure
For the year ended 31st March, 2019 2018 Note Rs. Rs.
Revenue 13 22,821,549 21,555,320 Other operating income 14 34,961,854 41,654,362 Administrative expenses (32,183,436) (35,428,013) Other operating expenses (20,192,294) (21,334,403) Net finance income 15 10,691,457 8,313,929 Transferred from funds 26,592 26,592 Surplus before tax expense 16 16,125,722 14,787,787 Income tax expense 17 (3,652,151) 595,523 Surplus after tax expense 12,473,571 15,383,310
The financial statements are to be read in conjunction with the related notes, which form an integral part of these financial statements of the Chamber.
77 THE NATIONAL CHAMBER OF COMMERCE OF SRI LANKA ANNUAL REPORT 2018/19 Statement of changes in funds
Accumulated Building For the year ended 31st March, fund donation fund Other funds Total Rs. Rs. Rs. Rs.
Balance as at 01st April 2017 102,744,221 179,408 122,841 103,046,470 Surplus for the year 15,383,310 - - 15,383,310 Transferred to income statement - (26,592) - (26,592) Balance as at 31st March 2018 118,127,531 152,816 122,841 118,403,188 Surplus for the year 12,473,571 - - 12,473,571 Transferred to income statement - (26,592) - (26,592) Balance as at 31st March 2019 130,601,102 126,224 122,841 130,850,167
The financial statements are to be read in conjunction with the related notes, which form an integral part of these financial statements of the Chamber.
78 THE NATIONAL CHAMBER OF COMMERCE OF SRI LANKA ANNUAL REPORT 2018/19 Statement of cash flows
For the year ended 31st March, 2019 2018 Rs. Rs.
Cash flows from operating activities Surplus before tax expense 16,125,722 14,787,787 Adjustments for; Depreciation 5,135,689 5,431,330 Interest income (10,730,701) (6,604,984) Interest expenses payments 39,244 28,130 Amortization 28,646 33,658 Provision for retirement benefit obligation (659,594) 1,624,053 Rent received in advance (612,240) (681,900) Provision for bad debts 440,175 950,102 Building donation fund and deferred income written back (26,592) (26,592) Operating surplus before working capital changes 9,740,349 15,541,585 Changes in; Trade and other receivables 988,793 263,679 Trade and other payables (1,386,692) (372,636) Cash generated from operating activities 9,342,450 15,432,628
Gratuity paid (258,716) (1,255,804) Income tax paid - (203,418) Net cash generated from operating activities 9,083,734 13,973,406 Cash flows from investing activities Acquisition of property, plant and equipment (1,264,992) (603,915) Net investments in short term deposits (17,334,026) (22,648,168) Interest received 10,315,432 6,604,984 Net cash used in investing activities (8,283,586) (16,647,100) Cash flows from financing activities Interest expenses payments (39,244) (28,130) Net cash used in financing activities (39,244) (28,130)
Net increase in cash and cash equivalents 760,904 (2,701,824) Cash and cash equivalents at the beginning of the year 7,837,250 10,539,074 Cash and cash equivalents at the end of the year (Note 07) 8,598,154 7,837,250
The financial statements are to be read in conjunction with the related notes, which form an integral part of these financial statements of the Chamber.
79 THE NATIONAL CHAMBER OF COMMERCE OF SRI LANKA ANNUAL REPORT 2018/19 Notes to the financial statements
1. Accounting policies assumptions that affect the application of accounting 1.1 Reporting entity policies and reported amounts of assets, liabilities, income and expenses. The estimates and associated The National Chamber of Commerce of Sri Lanka assumptions are based on historical experience (“the Chamber”) is a Guarantee Limited Company and various other factors that are believed to be incorporated under the Companies Ordinance No. 52 reasonable under the circumstances, the result of of 1938 as ‘Ceylon National Chamber of Commerce’ which form the basis of making the judgment about on 3rd November 1955, amended by Act No. 15 of carrying values of assets and liabilities that are not 1964 as The National Chamber of Commerce of Sri readily apparent from other sources. Actual results Lanka on 5th June 1974 and re-registered under the may differ from these estimates. New Companies Act No. 07 of 2007 and domiciled in Sri Lanka. The registered office of the Chamber The estimates and underlying assumptions are is located at No. 450, DR Wijewardena Mawatha, reviewed on an ongoing basis. Revisions to accounting Colombo 10. estimates are recognized in the period in which the estimates are revised if the revision affects only The members of the Chamber have guaranteed that, the financial year or in the period of the revision and in the event of the Chamber been wound up, they future periods if the revision affects both current and will be contributing to the assets of the Chamber, an future financial years. amount not exceeding Rs.100/-.
1.3 Significant accounting policies Principal activities The accounting policies set out below have been The principal activity of the Chamber is to promote applied consistently to all periods presented in these and protect the trade, commerce, industries, financial statements. agriculture, manufactures, transport, financing, banking, insurance and shipping in which Sri Lanka nationals are engaged or interested, and to represent (a) Property, plant and equipment and express on these questions the opinion of those (i) Recognition and measurement interested. Items of property, plant and equipment are measured at cost less accumulated depreciation and 1.2 Basis of preparation accumulated impairment losses. (a) Statement of compliance Cost includes expenditure that is directly attributable The financial statements have been prepared in to the acquisition of the asset and bringing the assets accordance with Sri Lanka Accounting Standard for to their working condition. Small and Medium Sized Entities (SLFRS for SMEs) issued by Institute of Chartered Accountants of Sri Expenditure incurred to replace a component of Lanka. an item of property, plant and equipment that is accounted for separately, is capitalised with the (b) Basis of measurement carrying amount of the component being written The financial statements have been prepared on the off. Other subsequent expenditure is capitalised historical cost basis. only when it increases the future economic benefits embodied in the item of property, plant and (c) Functional and presentation currency equipment. All other expenditure is recognised in the income statement as an expense as incurred. These financial statements are presented in Sri Lankan Rupees, which is the Chamber’s functional Expenditure incurred for the purpose of acquiring, currency. extending or improving assets of a permanent nature by means of which to carry on the business or to (d) Use of estimates and judgments increase the earning capacity of the business has The preparation of financial statements in conformity been treated as capital expenditure. with Sri Lanka Accounting Standard for Small and Medium-sized Entities (SLFRS for SMEs) requires management to make judgment, estimates and
80 THE NATIONAL CHAMBER OF COMMERCE OF SRI LANKA ANNUAL REPORT 2018/19
Gains/losses on disposal of property, plant and (c) Short term investments equipment are determined by comparing the Investments in fixed deposits are measured at proceeds from disposal with the carrying amount of amortized cost using the effective interest rate property, plant and equipment and are recognised net method. within “other operating income” in the statement of income and expenditure. (d) Cash and cash equivalents Cash and cash equivalents comprise of cash in hand, (ii) Subsequent cost deposits held at call with the bank and investments in The cost of replacing a part of an item of property, money market instruments with a maturity period less plant and equipment is recognized in the carrying than 3 months. amount of the item if it is probable that the future economic benefits embodied within the part will For the purpose of the statement of cash flow, cash flow to the Chamber and its cost can be measured and cash equivalents comprise cash in hand, deposits reliably. The carrying amount of the replaced part is held at call with bank, and investments in money derecognized. The cost of the day-to-day servicing market instruments, net of bank overdrafts. In the of property, plant and equipment are recognized in statement of financial position, bank overdrafts are statement of income and expenditure and statement included in current liabilities. of changes in funds as incurred. Cash flow statement (iii) Depreciation Statement of cash flows has been prepared using the Depreciation is recognised in the statement of indirect method. income and expenditure on a straight-line basis over the estimated useful lives of the asset. (e) Employee benefits The estimated useful lives are as follows: (i) Defined Contribution Plans Year Obligations to defined contribution plans are recognized as an expense in the income statement Building 04 as incurred. The Chamber contributes 12% and 3% of Computers and printers 04 gross emoluments of employees as Provident Fund Furniture and fittings 10 and Trust Fund contribution respectively. Office equipment 10 Library equipment 10 (ii) Defined benefit plan Neon name board 05 Gratuity is a defined benefit plan. The Chamber is Motor vehicles 04 liable to pay gratuity in terms of the relevant statute. In order to meet this liability, a provision is carried forward in the statement of financial position, Depreciation of an asset begins when it is available equivalent to an amount calculated based on a half for use and ceases at the date that the assets is month’s salary of the last month of the financial year derecognized. of all employees for each completed year of service, commencing from the first date of service. (b) Trade and other receivables At the end of each reporting period, the carrying Provision has been made for retirement gratuity amounts of trade and other receivables are reviewed from the first year of service of all employees in to determine whether there is any objective evidence conformity with SLFRS for SMEs - Employee Benefits. that the amounts are not recoverable. If so, an However according to the Payment of Gratuity Act impairment loss is recognized immediately in profit or No.12 of 1983, the liability arises only on completion loss. of five years of continued service. The liability is not externally funded nor is it actuarially valued.
81 THE NATIONAL CHAMBER OF COMMERCE OF SRI LANKA ANNUAL REPORT 2018/19
Notes to the financial statements
) (f Revenue recognition Deferred tax is measured at the tax rates that are Subscription from members are recognised as expected to apply to the temporary differences revenue within the financial year of receipts. Fees when they reverse, based on the laws that have been on seminars and other events are recognised as enacted or substantially enacted at the year-end revenue on completion of such activity. Other date. income is recognised on accrual basis. Revenue from rendering services is measured at the fair value of A deferred tax asset is recognized to the extent the consideration received and to the extent that it is that it is probable that future taxable profits will be probable that the economic benefits will flow to the available against which the temporary differences can Chamber and the revenue can be measured reliably. be utilized. Deferred tax assets are reviewed at each year end date and are reduced to the extent that it is Interest income is recognized as interest accrues, no longer probable that the related tax benefit will be taking into account the effective interest rate (EIR) of realized. the investments. (i) Events occurring after the reporting date (g) Expenditure There were no material events that occurred after Expenses are recognised in the statement of income the reporting date which require adjustments to or and expenditure on the basis of a direct association disclosures in the financial statements. between the cost incurred and the earning of specific items of income. All expenditure incurred in (j) Commitments and contingencies the running of the business and in maintaining the Contingencies are possible assets or obligations that property, plant and equipment in a state of efficiency arise from a past event and would be confirmed only has been charged to income statement. on the occurrence or non-occurrence of uncertain future events, which are beyond the Chamber’s For the purpose of presentation of the statement control. of income and expenditure the “function of expenses” method has been adopted on the basis that it represents fairly the elements of Chamber’s performance.
(h) Taxation (i) Income taxation The provision for current taxation has been computed in accordance with the Inland Revenue Act No. 24 of 2017 and its amendments thereto.
Taxation for the current and previous periods to the extent unpaid is recognized as a liability in the financial statements. When the amount of taxation already paid in respect of current and prior periods exceed the amount due for those periods the excess is recognized as an asset in the financial statements.
(ii) Deferred taxation Deferred tax is recognized using the balance sheet method, providing for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and amounts used for taxation purposes.
82 THE NATIONAL CHAMBER OF COMMERCE OF SRI LANKA ANNUAL REPORT 2018/19
2. PROPERTY, PLANT AND EQUIPMENT As at 31st March, Additions Disposals Balance as at during during Balance as at Cost 31.03.2018 the year the year 31.03.2019 Rs. Rs. Rs. Rs.
Building 68,483,198 422,403 - 68,905,601 Computers and printers 2,840,593 90,000 - 2,930,593 Furniture and fittings 2,065,387 - - 2,065,387 Office equipment 2,542,368 302,639 - 2,845,007 Library equipment 11,050 - - 11,050 Neon name board 103,300 - - 103,300 Motor vehicle 7,674,819 449,950 - 8,124,769 83,720,715 1,264,992 - 84,985,707
Disposals Balance as at Charge for during Balance as at Accumulated depreciation 31.03.2018 the year the year 31.03.2019 Rs. Rs. Rs. Rs.
Building 43,449,732 4,675,668 - 48,125,400 Computers and printers 2,661,182 112,188 - 2,773,370 Furniture and fittings 1,657,363 103,944 - 1,761,307 Office equipment 1,756,759 131,400 - 1,888,159 Library equipment 11,050 - - 11,050 Neon name board 103,300 - - 103,300 Motor vehicle 7,674,818 112,489 - 7,787,307 57,314,204 5,135,689 - 62,449,893 Carrying amount 26,406,511 22,535,814
The building has been constructed on land at No. 450, D R Wijewardena Mawatha, Colombo 10 which was obtained on a 30 year lease ending in 2023. A characteristic of land is that it normally has an indefinite economic life and the title of the land is not expected to pass to the Chamber at the end of the lease term. Therefore, the Chamber does not receive substantially all of the risks and rewards incidental to ownership. Hence, the lease of the said land is recognized as an operating lease in the books of account of the Chamber.
83 THE NATIONAL CHAMBER OF COMMERCE OF SRI LANKA ANNUAL REPORT 2018/19
Notes to the financial statements
3. INTANGIBLE ASSETS Computer Total Total As at 31st March, software 2019 2018 Rs. Rs. Rs.
Cost Opening balance as at 01st April 337,500 337,500 337,500 Addition during the year 270,963 270,963 - Disposal during the year (337,500) (337,500) - Closing balance as at 31st March 270,963 270,963 337,500 Accumulated depreciation Opening balance as at 01st April 62,415 62,415 28,757 Charge for the year 28,646 28,646 33,658 Depreciation on disposal (70,275) (70,275) - Closing balance as at 31st March 20,786 20,786 62,415 Carrying value Balance as at 31st March 2019 250,177 250,177 Balance as at 31st March 2018 275,085 275,085
4. TRADE DEBTORS As at 31st March, 2019 2018 Note Rs. Rs.
Trade debtors 1,964,838 4,308,692 Provision for doubtful debts 4.1 (1,518,517) (2,751,444) 446,321 1,557,248
4.1 PROVISION FOR DOUBTFUL DEBTS As at 31st March, 2019 2018 Rs. Rs.
Balance as at the beginning 2,751,444 1,801,342 Provision for the year 440,175 2,604,316 Written off during the year (1,673,102) (1,654,214) Balance as at the end 1,518,517 2,751,444
84 THE NATIONAL CHAMBER OF COMMERCE OF SRI LANKA ANNUAL REPORT 2018/19
5. OTHER RECEIVABLES As at 31st March, 2019 2018 Rs. Rs.
Advances and deposits 991,411 790,228 Prepayments 248,548 381,780 Staff loan receivable 8,510 161,910 WHT receivable 332,876 209,438 Other receivables 2,258,350 2,191,879 Ceylon Shipping Lines 689,906 728,250 4,529,601 4,463,485
6. SHORT TERM INVESTMENTS As at 31st March, 2019 2018 Rs. Rs.
Fixed deposits 109,597,843 92,263,817 109,597,843 92,263,817
7. CASH AND CASH EQUIVALENTS As at 31st March, 2019 2018 Rs. Rs.
Cash in hand 40,000 40,000 Cash at bank 8,558,154 7,797,250 8,598,154 7,837,250
8. OTHER FUNDS As at 31st March, 2019 2018 Rs. Rs.
CSR project 122,841 122,841 122,841 122,841
9. RENT RECEIVED IN ADVANCE As at 31st March, 2019 2018 Rs. Rs.
Balance as at the beginning 3,474,950 4,156,850 Transfer to statement of income and expenditure (612,240) (681,900) Balance as at the end 2,862,710 3,474,950 Amount payable within one year 612,240 681,900 Amount payable after one year 2,250,470 2,793,050 2,862,710 3,474,950
85 THE NATIONAL CHAMBER OF COMMERCE OF SRI LANKA ANNUAL REPORT 2018/19
Notes to the financial statements
10. RETIREMENT BENEFIT OBLIGATION As at 31st March, 2019 2018 Rs. Rs.
Balance as at the beginning 5,211,874 4,843,625 Provision made during the year (659,594) 1,624,053 Payments made during the year (258,716) (1,255,804) Balance as at the end 4,293,564 5,211,874
11. DEFERRED TAX LIABILITIES/(ASSETS) As at 31st March, 2019 2018 Rs. Rs.
Balance as at the beginning (494,796) 304,145 Deferred tax originating/(reversal) during the year 736,861 (798,941) Balance as at the end 242,065 (494,796)
11.1 COMPOSITION OF TEMPORARY DIFFERENCES As at 31st March, 2019 2018 Rs. Rs.
Property, plant and equipment 7,541,121 4,429,063 Defined benefit obligation (4,293,564) (5,211,874) Trade debtor (1,518,517) (2,751,444) Total taxable temporary difference 1,729,040 (3,534,255) Tax rate 14% 14% Deferred tax liability 242,065 (494,796)
12. TRADE AND OTHER PAYABLES As at 31st March, 2019 2018 Rs. Rs.
Advances 3,212,342 3,792,281 Accrued expenses 179,832 179,832 Retention payable 1,704,894 2,150,144 Other payables 157,782 281,475 VAT payable - 237,810 Subscription received in advance 5,254,850 6,641,542
86 THE NATIONAL CHAMBER OF COMMERCE OF SRI LANKA ANNUAL REPORT 2018/19
13. REVENUE As at 31st March, 2019 2018 Rs. Rs.
Members' subscription 8,787,061 8,134,147 Certificate of origin 12,662,290 11,985,377 Admission fees 274,508 392,420 Miscellaneous documents 1,097,690 1,043,376 22,821,549 21,555,320
14. OTHER OPERATING INCOME As at 31st March, 2019 2018 Rs. Rs.
Income from National Business Excellence Award programme 12,261,346 17,813,514 Rent income 2,066,004 2,650,439 BLT - Meetings 161,978 275,750 Secretarial service 2,312,804 2,370,663 Regional seminars - BOC 1,045,397 517,501 Ayurveda exhibition 8,963,920 11,542,444 China product show - 210,485 Seminar income 3,742,103 3,604,447 NCCSL - news letter 366,581 315,000 AGM Sponsorship fees & Banners 538,000 440,324 Hire of auditorium 913,123 938,214 NEDA Entrepreneur Awards-2016 - 912,750 Sale of M/Directory 5,963 7,246 SME - M/subscription 33,185 27,233 SME Income 1,023 3,068 Library Income - 190 AGM Dinner fees 18,000 25,064 NEDA Awards 1,172,208 - Photocopy Income 324 - Regional seminar - PABC 323,529 - Regional Seminar - Sampath Bank 833,333 - Profit - Intex South Asia exhibit 85,252 - Intangible Assets Disposal Gain 117,781 34,961,854 41,654,362
87 THE NATIONAL CHAMBER OF COMMERCE OF SRI LANKA ANNUAL REPORT 2018/19
Notes to the financial statements
15. NET FINANCE INCOME As at 31st March, 2019 2018 Rs. Rs.
Finance income Interest on fixed deposits 10,730,701 8,342,059 Total finance income 10,730,701 8,342,059 Finance cost Bank charges 39,244 28,130 Total finance cost 39,244 28,130 Net finance income 10,691,457 8,313,929
16. SURPLUS BEFORE TAX EXPENSE Surplus from operations is stated after charging all expenses including the following: As at 31st March, 2019 2018 Rs. Rs.
Auditors' remuneration 300,000 237,160 Depreciation on property, plant and equipment 5,135,689 5,431,330 Provision for bad and doubtful debts and bad debts written off 1,518,517 2,751,444 Staff cost 16,707,859 16,710,253
17. INCOME TAX EXPENSE The Chamber is liable for income tax on its taxable income at the rate of 14% in accordance with the provision of the Inland Revenue Act No.24 of 2017 which was effective from 01st April 2018.
As at 31st March, 2019 2018 Rs. Rs.
Tax on profit for the year (Note 17.1) 2,915,290 203,418 2,915,290 203,418 Deferred tax originating / (reversal) during the year (Note 11) 736,861 (798,941) 3,652,151 (595,523)
88 THE NATIONAL CHAMBER OF COMMERCE OF SRI LANKA ANNUAL REPORT 2018/19
17.1 TAX RECONCILIATION As at 31st March, 2019 2018 Rs. Rs.
Business income 16,007,868 - Investment income 10,730,701 2,034,180 Assessable income 26,738,569 2,034,180 Less: Qualifying payments Taxable Income 26,738,569 2,034,180 Tax @ 14% 3,743,400 203,418 Less: Tax Credits WHT Credits (433,479) - Refunds (394,631) - Current tax expense 2,915,290 203,418
18. RELATED PARTY TRANSACTIONS
18.1 TRANSACTIONS WITH KEY MANAGEMENT PERSONNEL The Chamber considers its Board of Directors as the key management personnel of the Chamber. Compensation paid to key management personnel of the Chamber is as follows. As at 31st March, 2019 2018 Rs. Rs.
Short term employee benefits Nil Nil
18.2 TRANSACTIONS WITH RELATED PARTIES There were no related party transactions during the year.
89 THE NATIONAL CHAMBER OF COMMERCE OF SRI LANKA ANNUAL REPORT 2018/19
Notes to the financial statements
19. COMMITMENTS
OPERATING LEASES The Chamber has leased the land situated at No. 450, D R Wijewardena Mawatha, Colombo 10 from the Urban Development Authority for a period of 30 years from 1993 for an annual lease payment of Rs. 275,000/-.
The lease commitments on the above lease are disclosure below: As at 31st March, 2019 2018 Rs. Rs.
Payable within one year 275,000 275,000 Payable later than 1 year and not later than 5 years 550,000 825,000 825,000 1,100,000
20. CONTINGENT LIABILITIES There is no contingent liabilities as at the reporting date.
21. EVENT OCCURRING AFTER THE REPORTING DATE There were no material events after the reporting date which require adjustments or disclosures in the financial statements.
22. APPROVAL OF FINANCIAL STATEMENTS These financial statements were approved by the Council and authorized for issue on 16th October 2019.
90 THE NATIONAL CHAMBER OF COMMERCE OF SRI LANKA ANNUAL REPORT 2018/19 Our members
Asia Asset Finance PLC A Asia Capital PLC Asia Teas (Pvt) Ltd. A. Baur & Co. (Pvt) Ltd. Asia Tyre Importers Association A S Agri Exports (Pvt) Ltd. Asian Finance Limited A T Cooray (Pvt) Ltd. Asiri Hospital Holdings PLC A.F. Jones Exporters Ceylon (Private) Limited Asiri Surgical Hospitals PLC A.P.S. Knitters (Pvt) Ltd. Associated Motorways (Private) Limited AB Securitas (Private) Limited Atlas Logistics Lanka (Pvt) Ltd. ABC Freight Services (Pvt) Ltd. Authorised Money Changers Association of Sri Lanka ABC Shipping (Private) Limited. Avant Premiere (Pvt) Ltd. ABC Trade and Investments (Pvt) Ltd. Aysha Hospitals (Private) Limited - New Delmon Hospital Abdul Jabbar & Sons Abidally Sons (Pvt) Ltd. Access Engineering PLC B Access International (Pvt) Ltd. B C C Lanka Limited Access Natural Water (Pvt) Ltd. B. P. Morawaka & Sons (Pvt) Ltd. Adamjee Lukmanjee & Sons (Pvt) Ltd. B.Darsin De Silva & Sons (Pvt) Ltd. Agalawatte Plantations PLC Bairaha Farms PLC Agribusiness Centre Baltic Testing Lanka (Pvt) Ltd Agro Consolidated (Pvt) Ltd. Bank of Ceylon Agro Soil (Pvt) Ltd. Barik Enterprises (Pvt) Ltd. Aitken Spence Shipping Limited Bartleet & Company (Private) Ltd. Aitken Spence Travels (Pvt) Ltd. Batticaloa Chamber of Commerce & Industry Akbar Brothers (Pvt) Ltd. Batticaloa District Chamber of Commerce, Industry and Aklan International (Pvt) Ltd. Agriculture Al Ruby Travels Trading and Marketing (Pvt) Ltd. Beam Hela Osu Lanka (Pvt) Ltd. Al-Aman World Capital Centre Limited Beauty Gems Albert Edirisinghe Opticians Ltd. Beauty Products Lanka (Pvt) Ltd. Alcobronz (Pvt) Ltd. BELA International (Private) Limited Alcobronz Engineering (Pvt) Ltd. Belcon Ark Limited Ali Brothers (Private) Ltd. Benham International (Pvt) Ltd. Ally Weerasinghe (Pvt) Ltd. Best Food Marketing (Pvt) Ltd. American Education Centre Ltd. Bing Bing International Trading (Pvt) Ltd. AMI Hardware (Pvt) Ltd. BioNutri International (Pvt) Limited Aminra Collections (Pvt) Ltd. Black Tea Exports (Pvt) Ltd. Ananda Constructions (Pvt) Ltd. Blue Chip SL Pvt Ltd. Anbu Brothers (Pvt) Ltd. Blue Chip Technical Services (Pvt) Ltd. Andaradeniya Estate (Pvt) Ltd Blue Diamonds Jewellery Worldwide PLC Andry Aluminium Industry (Pvt) Ltd. Blue Ocean Residencies (Pvt) Ltd. Ansell Textiles Lanka (Pvt) Ltd. Borneo General Trading (Pvt) Ltd. Anura Trading House Brandix Apparel Soluttions Limited Anverally & Sons (Pvt) Limited Bristol Lanka Technologies (Pvt) Ltd. AP Lanka (Pvt) Ltd. Brown and Company PLC Apeiron Lanka (Pvt) Ltd. BTL Lanka (Pvt) Ltd. Apeksha IVF & Research Center (Pvt) Ltd. Buddhi Industries (Pvt) Ltd. Arab Lanka International (Pvt) Ltd. Built-Mech Services (Pvt) Ltd. Arab Travels and Tours Bureau Veritas Consumer Products Services Lanka (Pvt) Ltd. Arch-Triad Consultants (Pvt) Ltd. Bureau Veritas Lanka (Pvt) Limited ARMZ Exports & Imports Business Development Cooperative Society Aroma Natural Rubber (Pvt) Ltd. Aroma Rubber Manufactures Asha Agencies Limited
91 THE NATIONAL CHAMBER OF COMMERCE OF SRI LANKA ANNUAL REPORT 2018/19
Our members
Colonial Motors (Ceylon) Limited. C Commercial Bank of Ceylon PLC Consulting Engineers & Contractors (Pvt) Ltd. C.W. Mackie PLC Cot Lanka Agro (Pvt) Ltd. Calico (Pvt) Ltd. Cotecna Lanka (Private) Limited. Candy Garments Ltd. Cotton Club (Pvt) Ltd. Canro Exporters Country Style Foods (Pvt) Limited Capital TRUST Holdings Limited Creative Technology Solutions (Pvt) Ltd. Cargills (Ceylon) PLC Crescent International (Pvt) Ltd. Cargoserv Shipping Ltd. CT Holdings PLC Carnival World Ko Lanka (Pvt) Ltd. Carson Cumberbatch PLC Ceat Kelani International Tyres (Pvt) Ltd. D Ceilan Coir Products Export (Private) Limited D Peiris & Co. (Pvt) Ltd. Cellcity Lanka (Pvt) Ltd. Dag Groupage Services Pvt Ltd. Central Hospital Limited Damam K International (Private) Limited Ceramica Bathrooms (Pvt) Ltd. Dankotuwa Porcelain PLC Ceyem Commodities (Pvt) Ltd. Darley Butler & Co. Ltd. Ceyko Projects (Pvt) Ltd. Daya Group (Pvt) Ltd. Ceylinco Insurance PLC Deensons Ceylon Agro Industries Limited Dellogistics (Pvt) Ltd. Ceylon Association of Shipping Agents (CASA) Delmege Forsyth & Co. Ltd. Ceylon Biscuits Limited Delmege Insurance Brokers (Pvt) Ltd. Ceylon Carriers (Pvt) Ltd. Delmo Chicken & Agro (Pvt) Ltd. Ceylon Chain Manufacturing (Pvt) Ltd. Delshan Enterprise Lanka (Pvt) Ltd. Ceylon Essence and Beverage Company (Pvt) Ltd. Devi Trading Company Ceylon Fertilizer Company Limited Dexter International Ceylon Fishing Industries Limited DFCC Bank PLC Ceylon Grain Elevators PLC Dhanusha Marine Lanka Exports (Pvt) Ltd. Ceylon Leather Products PLC Dharmasiri Tyre House (Pvt) Ltd. M/s Ceylon Machine Twisted Fibre Industries Dicanda (Pvt) Ltd. Ceylon Rubber Industries Ltd. DIENGE Ceylon Shipping Corporation Ltd. Diesel & Motor Engineering PLC Ceylon Shipping Lines Ltd. Dikkande Plantations (Pvt) Ltd. Ceylon Steel Corporation Limited Dilarshad Enterprise CF Lanka Microfinance Company Dip Products Katuwawala (Pvt) Ltd. Chamber of Commerce of Kinniya Double N. N. F (Pvt) Ltd. Champion Thread Manufacturing Company Douglas & Sons (Pvt) Ltd. Chatham House (Pvt) Ltd. Dowell International (Pvt) Ltd. Chemanex PLC DPJ Holdings CIC Feeds (Pvt) Ltd. Dreamron Lanka (Pvt) Limited CIC Holdings PLC Durtek Lanka (Pvt) Ltd. Citizens Development Business Finance PLC Dynamic Technologies (Pvt) Ltd. City Housing and Real Estate Company PLC Classic Teas (Pvt) Ltd. Claudia International Lanka (Pvt) Ltd. E Clutch Automation Private Limited CMC Engineering Export GmbH E.G. Adamaly & Co. Ltd. Coba Peat Lanka (Pvt) Ltd. Eamel Exports Ltd. Coconut Growers Association of Sri Lanka East Lanka Engineering (Pvt) Ltd. Coir De Lanka Exports (Pvt)Ltd. Eastern & Allied Agencies Ltd. Colombo Dockyard PLC (PQ 50) Eastern Merchants PLC Colombo Engineering Enterprises Eastern Produce Exports
92 THE NATIONAL CHAMBER OF COMMERCE OF SRI LANKA ANNUAL REPORT 2018/19
Edna Chocolates Ceylon (Private) Limited Global Leasing Ltd Edwin’s Studio & Colour Laboratories (Pvt) Ltd. Globalax (Pte) Ltd. Electro Metal Pressings (Pvt) Limited Gnanam Imports (Pvt) Ltd. Elegance Plastic & Engineering Services (Pvt) Ltd. Godrej Household Products Lanka (Pvt) Ltd. Emerald International (Pvt) Ltd. Gold Coin Feedmills (Lanka) Ltd. EML Consultants (Pvt) Limited GP Enterprises (Pvt) Ltd. Empire Teas (Pvt) Ltd. Graphic Systems (Pvt) Ltd. Ernst & Young Green Agro Lanka (Pvt) Ltd. ESNA Allied Enterprises (Pvt) Ltd. Green Soils (Pvt) Ltd. Essajee Carimjee Insurance Brokers (Pvt) Ltd Green View International (Pvt) Ltd. Estilo Apparel (Pvt) Ltd. GSMB Technical Services (Pvt) Ltd. Eswaran Brothers (Ceylon) Ltd. Eswaran Brothers Exports (Pvt) Ltd. ETAL Group Pvt Ltd. H ETI Finance Limited H Don Carolis & Sons (Pvt) Ltd. Euro - Scan Exports (Pvt) Ltd. H&M Western (Pvt) Ltd. Ever Bright Holdings (Pvt) Ltd. H.D.De Silva & Sons (Pvt) Ltd. H.P.A. Enterprises H.R. Fernando & Co. Ltd. F Hambantota District Chamber of Commerce FA Fashion (Pvt) Ltd. Hameed Brothers Colombo (Pvt) Ltd. Fairfirst Insurance Limited Hamilton House Falcon Trading (Pvt) Ltd. Harris Ceylon (Pvt) Ltd. Farmchemie (Private) Limited Hatton National Bank PLC Farmers (Pvt) Ltd. Hayleys PLC Farm’s Pride (Pvt) Ltd. HDDES Extracts (Pvt) Ltd. Fentons Limited HDFC Bank of Sri Lanka Fine Line Suppliers HEINEKEN Lanka Limited Five Star Poultry Processors (Pvt) Ltd. Helix Engineering (Pvt) Ltd. Flexiprint (Pvt) Ltd. Hesun (Pvt) Ltd. FLIPIT Media (Pvt) Ltd. Hettigoda Industries (Pvt) Ltd. FMJ Plastics (Pvt) Ltd. Highchem R Ceylon Company (Private) Limited Fonterra Brands Lanka (Pvt) Ltd. Hill House (Pvt) Ltd. Forbes & Walker Tea Brokers (Pvt) Ltd. Hilton Textiles (Pvt) Ltd. Fo-Rest (Private) Limited HIMACO (Pvt) Ltd. Foreway Logistics (Pvt) Ltd. HJS Condiments Limited Free Lanka Granite (Pvt) Ltd. Horseman International Colombo (Pvt) Ltd. Fresh Tea Exports (Pvt) Ltd. Hospitality Management & Consultancy Associates Freudenberg & Company (Ceylon) Ltd. House of Design (Pvt) Ltd. Hovael Holdings Private Limited Hubert N. Anthony & Sons (Pvt) Ltd. G Hyson Teas (Pvt) Ltd. G E Impex Lanka (Pvt) Ltd. G. C. Roche & Co. (Pvt) Ltd. Galle District Chamber of Commerce & Industries I Galle Motors (Pvt) Ltd. I M L (Pvt) Ltd. Geekay (Pvt) Ltd. IBMC Lanka (Pvt) Ltd. Geocyc (Pvt) Ltd. Imperial Teas (Pvt) Ltd. George Steuart Teas Private Limited Impex Corporation (Pte) Ltd. Gihan Associates Impressions Labels Lanka (Pvt) Ltd. Global Baggage (Pvt) Ltd. Independent Television Network Limited Global Insurance Brokers and Services (Pvt) Ltd. Indra Traders (Pvt) Ltd.
93 THE NATIONAL CHAMBER OF COMMERCE OF SRI LANKA ANNUAL REPORT 2018/19
Our members
Informatics (Private) Limited Inter Tea (Private) Ltd. L International Book House L. B. Spices Trading (Pvt) Ltd. International College of Business & Technology Ltd. Lak Arcade (Pvt) Ltd. International Construction Consortium (Pvt) Ltd. Laksiri International Freight Forwarders (Pvt) Ltd. International Foodstuff Company (Pvt) Ltd. Lallans Sports Goods Manufacturers (Pvt) Ltd. Intertek Lanka (Pvt) Ltd. Lan Management Development Services (Pvt) Ltd. Intervest Engineering & Construction (Private) Limited Lanka Agro Processing (Pvt) Ltd. Isabella (Private) Limited Lanka Ashok Leyland PLC Island Products (Pvt) Ltd. Lanka Canneries (Pvt) Ltd. Islandwide Marketing Services (Pvt) Ltd. Lanka Ceramic PLC Itech Tours & Travels (Pvt) Ltd. Lanka Coconut Associates IWS Holdings (Pvt) Limited Lanka Harness Co. (Pvt) Ltd. Lanka Industrial Estates Ltd. (LINDEL) J Lanka IOC PLC Lanka Motor Spare Parts Dealers Association J B Enterprises (Pvt) Ltd. Lanka Polymers (Pvt) Ltd. J R Enterprises Lanka Salt Ltd. J S Enterprises Lanka (Pvt) Ltd. Lanka Serenities (Pvt) Ltd. J S W Apparels (Pvt) Ltd. Lanka Special Steels Limited J.B.Fishing Industries (Pvt) Ltd. Lanka Tiles PLC Jafferjee Brothers Lanka Trust Investments Ltd. Janashakthi Insurance PLC Lanka Walltiles PLC Janatha Steels Lanka World Link Chem (Pvt) Ltd. JanRich Foods Limited LAUGFS Holdings Ltd. JAS Active Wear (Pvt) Ltd. Laxapana Batteries PLC Jay Jay Mills Lanka (Pvt) Ltd. Leader Travels & Tours (Pvt) Ltd. Jayes Trading Company Leaf d (Private) Limited JCJ Lanka Import & Export (Pvt) Ltd. Leela Exports & Imports Jetmo Steel Rolling Private Limited Leema Creations Private Limited Jetwing Travels (Private) Limited Le-Ferne Laboratories (Pvt) Ltd. JK Import and Export Co. (Pvt) Ltd. Liberty Cinemas Ltd. John Keells PLC Liberty Plaza Management Corporation Condominium JR International (Pvt) Ltd. Lightning Protection Systems Lanka (Pvt) Ltd. Juelstox International (Pvt) Co. Ltd. Logiexpo International Julius and Creasy LOLC Holdings PLC Jupiter Group Lotus Lanka Private Limited Just In Time Holdings (Pvt) Ltd. Lumbini Aquaria Wayamba Limited Lumbini Tea Factory (Pvt) Ltd. K Luxe Asia (Pvt) Ltd. Luxhmi Impex Kannan & Co. Karuna Steel Kash Garments (Pvt) Ltd. M Keangnam Enterprises Ltd. M D Gunasena & Company (Printers) Limited Kelsey Developments PLC M F Safeway Impex (Pvt) Ltd. Kent Holdings (Pvt) Ltd. M I P Fernando & Co. Ltd. Koolair (Pvt) Limited M I T Property Trading (Private) Ltd. Koshiba Credit (Pvt) Ltd. M M Organisation (Pvt) Ltd. Kotmale Holdings PLC M M Salgado & Sons Ltd. Kundanmals Limited M N Sugathadasa & Co. Kusumsiri Motor Traders M S Samsudeen Lebbe
94 THE NATIONAL CHAMBER OF COMMERCE OF SRI LANKA ANNUAL REPORT 2018/19
M. C. Abdul Rahim & Bros (Pvt) Ltd. Nature’s Agro Products Lanka Company M. Samson Silva & Co. (Private) Limited Nature’s Beauty Creations Ltd. MAC Holdings (Pvt) Ltd. Naturub Exports International (Pvt) Ltd. Macksons Paint Industries (Pvt) Ltd. Navara Capital Partners Limited Mackwoods Group Nawaloka Construction Company (Pvt) Ltd. Madampe Mills (Pvt) Ltd. Nawaloka Hospitals PLC Maga Engineering Private Limited Nawaloka Polysacks (Pvt) Ltd. Malba Ropes (Pte) Ltd. Nelna Farm (Pvt) Ltd. Malco Engineering (Pvt) Ltd. Nestle Lanka PLC Maliban Biscuit Manufactories (Pvt) Ltd. New Anthoney’s Farms (Pvt) Ltd. Malship (Ceylon) Limited New Kuvenitex (Pvt) Limited Maltras International (Pvt) Ltd. New Lanka Caterers Manisha (Pvt) Ltd. New Ranjith Industries Mansel (Ceylon) (Private) Ltd. New Universe Group of Companies Marine Transport Services (Pvt) Ltd. Nicklaashan Enterprises Markss HLC (Pvt) Ltd. Nihal Apparels (Pvt) Ltd. Marlbo Trading Company Nilkamal Eswaran Plastics (Pvt) Ltd. MAS Innovation (Pvt) Ltd. Nine Capital (Pvt) Ltd. Mascons (Pvt) Limited Ninehearts (Pte) Ltd. Maxies & Company (Pvt) Ltd. Ninehearts Imaging (Pvt) Ltd. McLarens Logistics Ltd. Ninewells Care Mother & Baby Hospital (Pvt) Ltd. Meezan & Company (Pvt) Ltd. Nippon Maruchi Lanka Electronics (Pvt) Ltd. Mega Products Limited Nippon Paint Lanka (Pvt) Limited Mehaa International (Pvt) Limited NL Associate Melwire Rolling (Pvt) Ltd. NOLIMIT Merbok MDF Lanka (Pvt) Ltd. Noorani Estates (Pvt) Ltd. Mercantile Merchant Bank Limited Noritake Lanka Porcelain (Pvt) Ltd. Merchant Bank of Sri Lanka PLC Mercury Print (Pvt) Ltd. Metropolitan Group of Companies O Miami Clothing (Pvt) Ltd. Oasis Hospital (Pvt) Ltd. Michael White & Co. (Pvt) Ltd. Ocean Blue Services (Pvt) Ltd. Micro Cars Limited Oceanway (Pvt) Ltd., Travels & Tours Microtech Networks (Pvt) Ltd. ODEL PLC Midaya Ceramic Co Private Limited Olive Stone (Pvt) Ltd. Midaya Packaging Industries (Pvt) Ltd. Omega Traders Mike Flora (Private) Ltd. Onesh Agri (Pvt) Ltd. Milco (Private) Ltd. Onesh Trading (Pvt) Ltd. Millennium Concrete Technologies (Pvt) Ltd. Orchid Lanka Enterprises (Pvt) Ltd. Millennium Teas (Pvt) Ltd. OREL Corporation (Private) Limited Minra Holdings (Pvt) Ltd. Oriental Ocean Express (Pvt) Ltd. Multi Merchants OVIKLO International (Pvt) Ltd. Mystika Import & Export P N P.D.Romanis & Sons N & N Agents and Secretaries (Pvt) Ltd. Pan Asia Banking Corporation PLC N.Vaitilingam & Co. (Pvt) Ltd. Pan Asia Limited Nation Lanka Finance PLC Pan Global Shipping (Private) Limited National Savings Bank Para Xpo Products (Pvt) Ltd. Nature Ceylon Trading (Pvt) Ltd. Paramount Print Pack (Pvt) Ltd. Nature Fresh Products (Pvt) Ltd. PC House (Pvt) Ltd.
95 THE NATIONAL CHAMBER OF COMMERCE OF SRI LANKA ANNUAL REPORT 2018/19
Our members
Pee Bee Management Services (Pvt) Ltd. Pelemix Lanka (Pvt) Ltd. S Pelwatte Sugar Industries PLC S & D Associates Penguin Industries (Pvt) Ltd. S & D Chemicals (Private) Limited People’s Bank S A Silva & Sons Lanka (Pvt) Ltd. People’s Merchant Finance PLC S M A Azeez Brothers (Pvt) Ltd. Pet Form (Pvt) Limited. S.N.T. Productions (Pvt) Ltd. Pet Packaging (Pvt) Ltd. S.S.T. Group (Pvt) Ltd. Pettah Pharmacy (Private) Limited. Saboor Chatoor (Pvt) Ltd. Phoenix Industries Ltd. Sadaharitha Plantations Limited Pioneer Tea Exports (Pvt) Ltd. Safco International Piramal Glass Ceylon PLC Saham Travels & Tours (Pvt) Ltd. PNVX Cargo Inspection Service (Pvt) Ltd. Salota International Pvt. Ltd. Polek Trade Center Samanala Export Polypackaging Industries (Pvt) Ltd. Samarasinghe Windscreen House (Pvt) Ltd. Pon Pure Chemical Lanka (Pvt) Ltd. Samayawardhana Printers (Pvt) Ltd. Power Engineering Services Private Limited Sampath Bank PLC Premawardane Export Samson Rubber Industries (Pvt) Ltd. Pristine Kokos (Pvt) Ltd. Samson Rubber Products (Pvt) Ltd. Pronto Lanka (Private) Limited Sanjeewaka Ayurvedic Products (Pvt) Ltd. Protected Agriculture Entrepreneurs Association Sapco Holdings (Pvt) Ltd. Providence Business Services (Pvt) Ltd. Saram Auto Industries Pulses Splitting & Processing Industry (Pvt) Ltd. Sarma & Company Pussalla Meat Producers (Pvt) Ltd. Satellite Lanka (Private) Limited Puwakaramba Agencies (Pvt) Ltd. Savik Company (Pvt) Ltd. SAW Engineering (Pvt) Ltd. R Schokman & Samerawickreme Sea Consortium Lanka (Pvt) Ltd. R D P Fancy Mahal Sea Trade Services (Pvt) Ltd. Rabeena Food (Pvt) Ltd. Seatrans International (Pvt) Limited Raigam Marketing Services (Pvt) Ltd. Selco Continental (Pvt) Ltd. Raja Jewellers (Pvt) Ltd. Sena Mills Refineries (Pvt) Ltd. Randeniya International (Pvt) Ltd. Senok Tea Ceylon (Pvt) Ltd. Randhi International (Pvt) Ltd. Senvec Lanka (Pte) Limited Ranjitha Pulses Splitting & Processing Industry Serendib Engineering Group PLC Rasawimana Holdings (Pvt) Ltd. Serendib Trade Logistics Services (Pvt) Ltd. Rashmi Lanka (Pvt) Ltd. Sethsuwa Ayurveda Hospital (Pvt) Ltd. Rathna Producers Cinnamon Exports (Pvt) Ltd. Sewalanka Community Financial Services Ltd. (SEWA Red Heart Apparels (Pvt) Ltd. FINANCE) Reed Lanka (Pvt) Ltd. Seylan Bank PLC Relaxs Steel Seylan Suppliers Renuka Holdings PLC SGS Lanka (Pvt) Ltd. Rex Industries (Pvt) Ltd. Shanbe Jeans Corporation (Pvt) Ltd. Rich World International Shara Property Development Construction (Pvt) Ltd. Richard Pieris Exports PLC Sherry Bakery Equipment Suppliers (Pvt) Ltd. Roshni Trade International (P) Ltd. Shin Kwang Lanka (Pvt) Ltd. Royal Ceramics Lanka PLC Ship Air Logistics (Pvt) Ltd. Royal Constructors Shums & Company (Pvt) Limited Russel’s (Pvt) Ltd. Siam City Cement (Lanka) Ltd. Ryder Holdings (Pvt) Ltd. Siba Healthcare (Pvt) Ltd. Silkot Traders (Pvt) Ltd. Sinamta Exporters (Pvt) Ltd.
96 THE NATIONAL CHAMBER OF COMMERCE OF SRI LANKA ANNUAL REPORT 2018/19
Sindbad (Private) Ltd. Singer Finance (Lanka) PLC T Singha Holdings (Pvt) Ltd. T B S International (Pvt) Ltd Sinwa Holdings Limited T. Suby (Pvt) Limited Siri Wimal Produce Exporters Tantri Trailers (Pvt) Ltd. Sisara Group of Companies (Pte) Ltd. Tea House (Pvt) Ltd. Sisili Projects Consortium (Pvt) Ltd. Tea Palace (Pvt) Ltd. Siyapatha Finance PLC Tea Trends Exports (Pvt) Ltd. Siyol International Private Limited Teamex Ltd. Skills International (Pvt) Ltd. Tech Waters (Pvt) Ltd. Skyline Accessories (Pvt) Ltd. Termss Global (Pvt) Ltd. SLT Publications (Pvt) Ltd. Textware (Pvt) Ltd Softlogic Life Insurance PLC TFL Lanka (Pvt) Ltd. Solex Engineering (Pvt) Limited The Association of Container Deport Operators (ACDO) Solusys Consulting (Pvt) Ltd. The Automobile Association of Ceylon Spear International (Pvt) Limited The Bobbin (Pvt) Ltd. Spectra Industries Lanka (Pvt) Ltd. The Colombo Picture Palace (Pvt) Ltd. Sri Bio Agri Products (Pvt) Ltd. The Exterminators (Pvt) Ltd. Sri Lanka Association of Printers The Finance Company PLC Sri Lanka China Business Cooperation Council The Swadeshi Industrial Works PLC Sri Lanka Computer Vendors’ Association The Tea Survey & Analysis Co. (Pvt) Ltd. Sri Lanka Export Credit Insurance Corporation Thirani Peiris International Academy of Beauty (Pvt) Ltd. Sri Lanka Gem & Jewellery Association Three Sinha Industries (Pvt) Ltd. Sri Lanka Institute of Marketing Thunder & Neon (Pvt) Ltd. Sri Lanka Institute of Packaging Titus Stores (Pvt) Ltd. Sri Lanka Insurance Corporation Ltd. TKT Associates Sri Lanka Logistics Providers Association Tokyo Cement Company (Lanka) PLC Sri Lanka Shipping Company Ltd. Torento Engineering (Pvt) Ltd. St. Anthony’s Consolidated Ltd. Tradeone Globe (Private) Limited Standard Chartered Bank Tradesmann SL (Pvt) Ltd. Star Industries Transgrow (Pvt) Ltd. Stargems International (Pvt) Ltd. Transocean Traders Stassen Exports (Pvt) Ltd. Tri Star Apparel Exports (Pvt) Ltd. Stassen International Ltd. Trico Logistics Ltd. State Mortgage and Investment Bank Tritech Engineers (Pvt) Ltd. State Timber Corporation Tropical Island Commodities (Pvt) Ltd. Stenco International Trading Tropicoir Lanka (Pvt) Ltd. Straight-Line International (Pvt) Ltd. TVS Lanka (Pvt) Ltd. Streamline International (Pte) Ltd. Sunbee Readymix (Pvt) Ltd. Sunflower U Sunnyville Impex (Private) Limited. Sunshine Holdings PLC U.S. Motor Spare Parts Company Sunshine Tea (Pvt) Ltd. UCL Logistics (Pvt) Ltd. Suntea (Pvt) Ltd. Udaya Industries Supply Room (Pvt) Ltd. UHE Exports (Pvt) Ltd. Surveying Testing Bureau (Pvt) Ltd. UltraTech Cement Lanka (Pvt) Ltd. Sutton Springs Water (Pvt) Ltd. Unicel (Pvt) Ltd. Swedish Trading Co. (Pvt) Ltd. Union Apparels (Pvt) Ltd. Swiss Lloyd Ltd. Union Assurance PLC Switz Lanka (Pvt) Ltd. Union Bank of Colombo PLC Synergy Management Consultants (Pvt) Ltd. Union Chemicals Lanka PLC Synex International (Pvt) Ltd.
97 THE NATIONAL CHAMBER OF COMMERCE OF SRI LANKA ANNUAL REPORT 2018/19
Our members
Union Colombo Industrial Washing (Pvt) Ltd. Union Commodities (Pvt) Ltd. Y Unipower (Pvt) Ltd. Yuming International (Pvt) Ltd. United Electricals Engineering (Pvt) Ltd. Yusen Logistics & Kusuhara Lanka (Pvt) Ltd. United Logistics Colombo (Pvt) Ltd. United Mercury Group Lanka (Pvt) Ltd. United Motors Lanka PLC Z United Stores Universal Export Suppliers Zaaras Holdings (Pvt) Ltd. Universal Labels (Pvt) Limited Zam Gems (Pvt) Ltd. UniWorld Teas (Pvt) Ltd. Zodiac Medicals (Private) Limited Upali Perera and Company V V R Vadivetkarasan Enterprises V S Information Systems (Pvt) Ltd. V V Karunaratne and Company V. K. Enterprises (Pvt) Ltd. V. Manickam and Brothers Vcom International (Pvt) Ltd. Vehicle Importers Association of Lanka Venora International Projects (Pvt) Ltd. Venture Tea (Pvt) Ltd. Vidullanka PLC Vogue Jewellers (Pvt) Ltd. VORTEX International (Pvt) Ltd. VSR Consultants (Pvt) Ltd. W W K K Engineering Co. (Pvt) Ltd. W.M. Mendis & Co. Ltd. Watawala Plantations PLC Wellawatta Nithyakalyani Jewellery Western Agribusiness (Pvt) Limited Wijaya Group of Companies (PLC) Wilfred & Co. Ltd. Wonderlight Consumer Products Co (Pvt) Ltd. WTL Automobiles (Pvt) Ltd.
98 CORPORATE INFORMATION
Registered Name The National Chamber of Commerce of Sri Lanka.
Legal Form Incorporated in Ceylon in 1955 as a limited liability company under companies Ordinance No. 51 of 1938 founded in 1948 Registered under the Company’s Act No. 07 of 2007 pursuant to Section 485 (6) (G) as a Guarantee Limited on 28 July 2008.
Company Registered Number GA 79 (formerly A 12)
Registered Office The National Chamber Building 450, D R Wijewardena Mawatha, Colombo 10, Sri Lanka.
International Country Code 0094 Telephone : +94 11 474 1788, +94 11 474 1984, +94 11 268 9600 Fax : +94 11 268 9596, +94 11 268 9603 Email : [email protected] Web : www.nationalchamber.lk
Secretary General/CEO Mr. Bandula Dissanayake
Office Bearers Mr. Asela de Livera - President Mr. Nandika Buddhipala - Senior Deputy President Mr. G. Deepal Nelson - Deputy President Mr. Anura Warnakulasooriya - Honorary Secretary Mr. Gamini Wimalasuriya - Honorary Treasurer
Accounting Year End 31st March
Annual Report Year End 31st December following Accounting Year End
Auditors KPMG Chartered Accountants
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Photography by CS Studio THE NATIONAL CHAMBER OF COMMERCE OF SRI LANKA • ANNUAL REPORT 2018/19