THE NATIONAL CHAMBER OF COMMERCE OF SRI LANKA CHAMBER OF THE NATIONAL ANNUAL REPORT 2019 • 2020 REPORT ANNUAL

FINANCIAL YEAR : 1ST APRIL 2019 TO 31ST MARCH 2020 31ST TO 2019 APRIL YEAR : 1ST FINANCIAL OPERATIONAL YEAR : 1ST JANUARY 2020 TO 31ST DECEMBER 2020 31ST TO 2020 JANUARY YEAR : 1ST OPERATIONAL EMBRACING THE EMBRACING TIDE OF CHANGE OF TIDE

THE NATIONAL CHAMBER OF COMMERCE OF SRI LANKA • ANNUAL REPORT 2019/2020 The Vision of National Chamber of Commerce of Sri Lanka is to be the leading source of services and assistance to businesses countrywide for promotion of domestic and foreign trade with special emphasis on the development of Micro, Small and VISION Medium Enterprises.

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 MISSION conducive business environment. • Meeting member expectations • Giving awareness to the stakeholders at the right time • Giving a helping hand to SMEs • Respect the equality • Empowering stakeholders • Bringing the international business flavour to VALUES local businesses EMBRACING THE TIDE OF CHANGE

Standing at the crossroads of uncertainty and hope for the future, each individual and each entity has been compelled to adapt; forced to realise the limits of our potentials in order to evolve within the fast pace of change. But this does not imply that our limits cannot be changed and expanded; in fact, for most, it has been the contrary. For some, it has become a journey of resilience that has pushed them to redefine their potentials and set new goals for the future.

NCCSL continues to weather these challenges alongside our SMEs and the wider business community, as we too have altered our goals and services to be a strong and dependable organisation for our members and for the entrepreneurs of our nation – enabling them to embrace the tide of change. Contents

Past Presidents and Secretary The Chamber Generals/CEOs 45 Standing Committee Structure About this Report 03 46 The Governing Council & 06 About the National Chamber Secretariat 47 Training and Knowledge Sharing Journey of the National Chamber 08 48 Programs Business Development 11 Highlights on Flagship Events Programs – SME 52 Bilateral and 61st Annual General Meeting of the Diplomatic Initiatives Chamber 12 54 International Trade 19 Message from the President 55 Strategic Initiatives Secretary General’s Review 57 23 Capital Report Executive Team - www.fromsrilanka initiative 60 28 National Chamber of Commerce Youth Forum Chamber Representation in 65 Other Organisations 30 32 The Council of 2020 Management Discussion Past Leadership 37 68 Management Discussion The Operational Team 38 Risk Management 74 Chamber Services 42 Financial Statements 44 Network for SME Development 78 Financial Statements About this Report

Report Content and Boundary

This year’s report culminates the work, programs and The 2019/20 annual report of the events coordinated and hosted by the National Chamber, and gives a comprehensive account of our work in National Chamber of Commerce promoting bilateral trade and enhancing diplomatic relations Sri Lanka, was compiled to provide with other nations. Given the extraordinary circumstances of the respective its members and stakeholders a operational year, our endeavours were limited, and our plans were on the most part delayed till the next operational clear and comprehensive view year. However, even within this context, we took strategic approaches to enhance the services we provide our of the Chamber’s work and members. its progress across the period Audience The report was compiled for the reference and use of under review. The annual report the members of the Chamber, the business community, prospective businesspersons and other stakeholders of the covers all operational aspects and National Chamber. developments of the National Declaration

Chamber, which transpired The Financial Statements presented in the report, were audited and prepared by KPMG Chartered Accountants in between 1st January 2020 and 31st accordance with the requirements of the Companies Act 2007 and has been certified by Mr. Gamini Wimalasuriya, December 2020 along with“ our Honorary Treasurer and was also approved by Mr. Asela de Livera - President of the National Chamber and Mr. Nandika financial performance till end of Buddhipala, Senior Deputy President of the National Chamber of Commerce Sri Lanka. 31st March 2020.

12 726 OVER 1,500 NEW MOUs CORPORATE CONNECTED SMES MEMBERS

The National Chamber of Commerce of Sri Lanka 3 Annual Report 2019/20 THE CHAMBER

The Chamber fulfilled this

objective in its formative years, and since then continues to “ provide leadership and guidance in developing enterprises.

About the National Chamber

expedited numerous ventures that not only provide For 72 years, the National Chamber enterprises with opportunities for growth within domestic of Commerce Sri Lanka has served markets but also exposure to global trade and commerce. the nation’s business enterprises Development of Businesses and Industries The development of the SME sector has been one of our and industries, by supporting biggest objectives. As a result, we have initiated several strategic endeavours in developing the sector and its their objectives of growth and aspiring entrepreneurs. In 2003, the Chamber initiated multiple projects to support SMEs in the country.

development. As one of the key One of our key responsibilities is providing the right guidance and direction to entrepreneurs of Small and Chambers of the country, NCCSL Medium Scale Enterprises, providing the necessary information on regulations, standards, processes and spur is committed to uplifting and strategic thinking, empowering them to grow. Furthermore, the National Chamber also trains SMEs with the ability developing businesses, with a special to think innovatively and be receptive to the fast-evolving focus on shaping the SME sector. needs of both domestic and global markets.

As the country’s foremost chamber of commerce, we Moreover, our determination is in continuously assess the myriad of challenges faced by

businesses, especially in terms of innovation and adoption safeguarding the interests of the of technological advancements. As part of our efforts “ towards bridging the digital void between local businesses country’s businesses while taking and the global marketplace, the National Chamber developed and launched a B2B portal (fromsrilanka.com), every enterprise to the next phase of which connects buyers and sellers on a global scale. The portal provides exposure to businesses across 50 growth and success. categories, which collapses further into 900 products and services. This gateway site is now promoted across various sectors and industries and continues to gather the interest For the past seven decades, we have succeeded in of domestic and international companies. achieving both regional and global recognition and continue to create new avenues for our entrepreneurs, connecting Training and Development them with the world beyond national boundaries. The National Chamber has become one of the most sought Reminiscing on our inception in 1948, the National after and credible sources of knowledge dissemination, Chamber was established to provide a unified nationalistic business training and professional development. framework for our businesses, safeguarding domestic Knowledge sharing and business development programs enterprises. At the time of our inception, our immediate are organised on a regional and national scale. These focus was in establishing a forum, which would address programs aims to train entrepreneurs, educate them on challenges that surrounded the Ceylonisation of trade and various aspects of business management and empower in creating a positive and conducive climate for businesses them to think through the clutter. to operate. Our founding members represented this unified national objective proudly, as the National Chamber Our members also benefit from Chamber Services, which became the common voice of all ethnicities in matters of covers a broad base of services from providing trade and trade and commerce. business-related certifications to providing secretariat services to Associations. NCCSL also gathers research The Chamber fulfilled this objective in its formative years, and information for the benefit of our members. As a result, and since then continues to provide leadership and in 2011, the Chamber established a Certificate Course in guidance in developing enterprises, and in broadening ‘Entrepreneurship Management (CIEM)’ in association with trade-related prospects for our businesses. Serving the University of Colombo. the nation by promoting domestic industries, we have

6 The National Chamber of Commerce of Sri Lanka Annual Report 2019/20 Strategic Undertakings Additional Areas of Responsibility Each operational year, the Chamber hosts many trade The National Chamber also takes the initiative in assisting discussions, meetings and events that enhance bilateral businesses that require strategic guidance in developing trade and diplomatic relations between Sri Lanka and other their potentials. These mainly include: nations. • Provide value additions to the life cycles of products The Chamber also expedites Memorandums of and services in several sectors. Understanding (MoU) with national and international • Provide members with qualitative information on market chambers and associations to enhance trade between analysis, products and business sectors, in addition to provincial areas and explores new trade opportunities information in regulations and industry standards. across borders. • Providing SMEs with financial guidance. • Provide technical training and assistance on Flagship Events technological advancements. Over the years, we have pioneered several flagship events, which has succeeded in promoting domestic industries In addition to the above, the National Chamber works and local innovations while exposing domestic business closely with the Government and state institutions on talents to international best practices. NCCSL has been matters related to policy decisions, while intervening on the force behind several of the country’s benchmark award behalf of industrial matters and trade disputes. programs and exhibitions. In 1996, we established INTRAD, an international industrial trade exhibition, which cleared the Recognitions path for enterprises in all trade sectors to showcase their In 2009, NCCSL became the recipient of an award products and services. INTRAD became the ideal playing presented by the World Chamber Federation, at the 6th field for entrepreneurs to meet buyers and investors with World Chambers Congress held in Kuala Lumpur, Malaysia. the aim of expanding their business networks. The award was presented as recognition of our services to the country’s SME sector. In 2005, NCCSL initiated ‘Arogya’, national healthcare exhibition in conjunction with the Ministry of Health, Over the years, NCCSL received several awards, for our pioneering yet another trade fair. NCCSL also initiated the strategic work in SME development and in uplifting local country’s very first Ayurveda Exhibition and Symposium, businesses. together with the Ministry of Indigenous Medicine under the participation of the international community. In 2008, the National Chamber organised Sri Lanka’s inaugural regional agricultural exhibition ‘Wellassa Krushi Udawa’, in Buttala Moneragala.

Through these ventures, NCCSL has created a benchmark for the nation’s enterprises, encouraging them to follow formulas of success. Taking our efforts further, NCCSL organised the annual national-level business awards program, the ‘National Business Excellence Awards’ in awarding and recognising enterprises that outperform peers in various trades and business sectors. In addition, the National Chamber annually hosts Entrepreneur Awards for SMEs in the Western Province, in association with NEDA (National Enterprise Development Authority), for rewarding exceptional businesses at the provincial level.

The National Chamber of Commerce of Sri Lanka 7 Annual Report 2019/20

Journey of the National Chamber

“ “

1948 “ 2000 The National Chamber of Commerce Sri Lanka was formed. NCCSL conducted the 3rd INTRAD (Millennium) exhibition and Investor Forum at“ the BMICH in May, marking the

1955 beginning of the millennium.

The National Chamber“ was incorporated as a legal entity. 2004 The first National Business Excellence Awards (NBEA)

1972 was held in November,“ at Hotel Hilton. 29 best performing business organisations were presented with awards.

NCCSL received two historical awards for outstanding performance in an International Trade Fair awarded by 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 2004 Tsunami by providing financial assistance through Selected as one of the“ two Chambers to issue Entrepot donor funding. Certificate of Origin, introduced in Sri Lanka in 1990. • Fulfilling the need for an in-house auditorium in providing accommodation for events and programs, the National Chamber establishes its first auditorium, 1993 located on the 4th floor of the Chamber headquarters.

• Foundation for the Construction of Chamber • The second National Business Excellence Awards was

Headquarters was laid at 450, D.R. Wijewardene conducted at Hotel Hilton.

Mawatha, Colombo 10. • The inaugural National Healthcare Exhibition “Arogya • The Chamber library was reorganised. Both endeavors 2005” was held at“ BMICH; coordinated in association received financial“ support from the Policy Support Unit with the Ministry of Health. of USAID. 2006 1995 • “Arogya 2006” National Healthcare Exhibition was held

• NCCSL operations were relocated to the newly for the second consecutive year at BMICH.

constructed head office on 3rd June. • The SME – Businesses Promotion Fund was held,

• NCCSL entered into an agreement with the Sri Lanka under the financial patronage by the Royal Netherlands

China Business Cooperation“ Council for the provision of Government. secretarial services. • The National Business Excellence Awards was

organised for the “ third consecutive year at Hotel Hilton.

1996 Inauguration of the first“ ever INTRAD exhibition; held from 2007 7-9th of July at BMICH. • The first-ever “Ayurveda Expo” International Exhibition and Symposium was organised in September with wide international participation at BMICH. 1997 • ‘NBEA 2007’ was organised for the fourth consecutive Her Excellency, President Chandrika Bandaranaike year at Hotel Hilton. Kumaratunge inaugurated the second INTRAD exhibition, which was held successfully.

8 The National Chamber of Commerce of Sri Lanka Annual Report 2019/20

“ “ 2008 2013 • Commencing the first ever egionalr agricultural • A refurbished and fully equipped auditorium was

exhibition in Sri Lanka, the “Wellassa Krushi Udawa” unveiled, and was ceremoniously declared open by

was held in Buttala, Moneragala. former President H.E. Mahinda Rajapaksa, in January. • ‘NBEA 2008’ was organised for the fifth consecutive • ‘Ayurveda Expo – 2013’ International Indigenous year at Hotel Hilton.“ Healthcare Exhibition and Symposium was organised

for the 4th time at BMICH.

• ‘NBEA – 2013’ was organised for the 10th consecutive 2009 year at Hotel Hilton.“ • The National Chamber became the recipient of an International Award for the Best Small Business Project at the 6th World Chamber Congress held in Malaysia in 2014 June. • The ‘National Business Excellence Summit (NBES) • “Ayurveda Expo 2009” International Exhibition and 2014’ was inaugurated and held on the 21st and 22nd

Symposium was held for the second successive year, in of March at BMICH.

May. • ‘INTRAD Expo – 2014’, the International Exhibition and • ‘NBEA 2009’ was organised for the sixth consecutive Trade Fair and ‘Arogya – 2014’ National Healthcare year. “ Exhibition were conducted simultaneously, at the

BMICH.

• NBEA was conducted for the 11th consecutive year at 2010 Hotel Hilton. “ • NCCSL conducted INTRAD EXPO for the fourth consecutive time. • The seventh consecutive NBEA was held at the Hotel 2015

Hilton. • “Meet the Minister” program was introduced for the

• Monthly Bilateral Trade Sessions were initiated with purpose of hosting a Minister at the Chamber on a Ambassadors and High Commissioners of Sri Lanka monthly basis. through “Meet the“ Ambassador” Program. • NBEA was conducted for the 12th consecutive year at Hotel Hilton. • Ayurveda Expo 2015 and Symposium was held at BMICH for the fifth successive year with foreign

2011 participation. Around 45,000 visited the exhibition

• The ‘Ayurveda Expo – 2011’ Indigenous Healthcare during a 3-day period. Exhibition and Symposium was held from 15 - 17th • NBES 2015 Competition was held for the 2nd year in a July 2011 at the BMICH, with H.E. President Mahinda row, at BMICH. “ Rajapaksa, as the honorary chief guest. • ‘NBEA – 2011’ was conducted for the 8th consecutive year at Hotel Hilton. • The Sri Lanka – Bangladesh Business Co-operation 2016

Council was officiated. • The 57th Annual General Meeting of the Chamber was

• National Chamber won the ‘Global Business Excellence held at the Kingsbury Hotel, Colombo, with Minister Award 2011’ for its outstanding contribution towards Hon. Eran Wickramaratne - Deputy Minister of Public business development.“ Enterprises and Development as Chief Guest. • The Chamber commenced training programs in E-commerce exclusively for female entrepreneurs, including differently-abled persons. 2012 • Ayurveda Expo 2016 – Indigenous Healthcare Exhibition • ‘Arogya – 2012’ National Healthcare Exhibition was and Symposium was held at BMICH, with H.E. organised for the 3rd consecutive time at BMICH. President Maithripala Sirisena as Chief Guest. • ‘NBEA – 2012’ was conducted for the 9th successive • NBEA was conducted for the 13th consecutive year at year at Hotel Hilton. Hotel Hilton.

The National Chamber of Commerce of Sri Lanka 9 Annual Report 2019/20 Journey of the National Chamber

• The first ever ‘Entrepreneur Awards’ for SMEs in the • Ambassadors from Oman, Bangladesh, Pakistan,

Western Province was organised in association with Maldives, France, Vietnam, Hungary and European NEDA (National Enterprise Development Authority) on Union were hosted, as part of the ‘Meet the

an invitation by NEDA.“ Ambassador’ program, for bilateral trade discussions at

the National Chamber. • The National Chamber supported the 4th edition of INTEX South Asia“ 2018 (Textile and Apparel Exhibition) 2017 held at BMICH. • The 58th Annual General Meeting of the Chamber was held at the Kingsbury Hotel with the presence of Hon. Faizser Mustapha, Minister of Provincial Councils and 2019 Local Govt. as Chief Guest and Dr. Harsha de Silva, Deputy Minister of Foreign Affairs as Guest of Honour. • The 60th Annual General Meeting of the National • Members of the Chamber were presented with ‘National Chamber was held at Hotel Kingsbury. Hon. Honours’ by the Government and felicitated by the Deshabandu Karu Jayasuriya graced the event as Chief National Chamber at Colombo Hilton Residences, with Guest, with Hon. Eran Wickremaratne, State Minister of Hon. Karu Jayasuriya, Speaker, as Chief Guest. Finance as Guest of Honour. • “Mahajana Suwadhana” medical healthcare exhibition • ‘Suwa Denuma’, International Healthcare Exhibition was held at the BMICH in partnership with the Ceylon 2019 was conducted at BMICH. Entrepreneur Awards College of Physicians and in commemoration of their 2019 - Western Province, was conducted for the 4th 50th anniversary. Hon. Rajitha Senaratne, Minister of consecutive year, in conjunction with NEDA, at the Sri Health, Nutrition and Indigenous Medicine graced the Lanka Foundation Auditorium. event as Chief Guest. • Celebrating its 16th year, the “National Business

• ‘Entrepreneur Awards 2017’ for SMEs in Western Excellence Awards 2019” was held at Hotel Hilton

Province was organised for the second consecutive in December. The Chief Guest of the event was H.E. Robina Patricia Marks, High Commissioner of South year, in association with NEDA. Minister of Industry “ and Commerce and State Minister of Industry and Africa.

Commerce was Chief Guest of the event. • NBEA 2017, was organised for the 14th consecutive

year, and was held at the Hilton Hotel in Colombo, 2020 in December, with“ H.E. David McKinnon, High • The 61st Annual General Meeting of the National Commissioner of Canada as its Chief Guest. Chamber was held at Hotel Kingsbury, graced by Deshamanya Prof. W D Lakshman, Governor of Central Bank of Sri Lanka as Chief Guest. 2018 • The National Chamber launched ‘FromSriLanka.com’ • The National Chamber of Commerce celebrated as a B2B buyer-seller connectivity platform, aimed at its 70th Anniversary along with Independence-day supporting Sri Lankan companies to promote their commemorations. products and services to global buyers. • 59th Annual General Meeting of the Chamber was held in January at Hotel Kingsbury. Hon. Prime Minister Ranil Wickramasinghe was Chief Guest of the event. • Ayurveda Expo 2018 International Indigenous Healthcare Exhibition and Symposium was held at BMICH. • Entrepreneur Awards 2018 - Western Province was conducted for the 3rd consecutive year in partnership with the National Enterprise Development Authority (NEDA) and joined by World University Service of Canada (WUSC). The event was held at the Sri Lanka Foundation Auditorium. • Celebrating its 15th year, “National Business Excellence Awards 2018” was held at Hotel Hilton. Deputy Ambassador of European Union was Chief Guest of the event.

10 The National Chamber of Commerce of Sri Lanka Annual Report 2019/20 Highlights on Flagship Events

61st Annual General Meeting of the National Chamber of Commerce Sri Lanka 2020 marked the 61st Annual General Meeting of the National Chamber, one of the high-points of our Annual Event line-up. The AGM was held on the 21st of January at the Kingsbury Hotel, amidst the participation of political, diplomatic and business leaders. The Chief Guest of the event was Deshamanya Professor W.D. Lakshman, Governor of the Central Bank of Sri Lanka.

Launch of the Fromsrilanka.com Web Portal Chronicling another milestone, the National Chamber launched fromsrilanka.com, the B2B, buyer-seller connectivity platform, developed with the sole purpose of providing Sri Lankan companies a digital gateway in promoting their products and services to the world.

It was launched by Professor W. D. Lakshman, Governor of the Central Bank of Sri Lanka.

FromSrilanka.com was launched with the objective of supporting Sri Lankan companies to promote their products and services to the global market.

The platform is not promoted as an e-commerce site, but it adopts best practices of international platforms such as Alibaba, while charging businesses a nominal subscription fee to adequately support operational costs and investments.

The National Chamber of Commerce of Sri Lanka 11 Annual Report 2019/20 61st Annual General Meeting of the Chamber

Extracts from the Speech of Chief Guest, Deshamanya Prof. W D Lakshman, Governor, Central Bank of Sri Lanka

model involving increasing liberalisation of markets and I am deeply honoured to be invited an integration of the country with the on-going processes as the Guest of Honour at the 61st of globalisation. As part of this policy model we were also

trying to undertake structural and institutional reforms of Annual General Meeting of the the type that are generally recommended by international

financial institutions. While this policy model had produced National Chamber of Commerce. some good results, my view is that, on the whole, it has “ produced a series of anti-development tendencies in the I thank the organising committee economy and policies. Those who support this policy package however, would argue that Sri Lanka had come for inviting me on this special to suffer those adverse results because the recommended occasion. policy package of liberalisation was not implemented correctly in full. They had consistently argued that Sri Lanka left a large part of the liberalisation agenda unmet. We have It is after a long professional career as an academic come to the important milestone of “upper middle income economist that have come to occupy the position of country” level in World Bank country classification. The Governor, Central Bank. My focus during my earlier years structural and institutional transformation of the socio- was on development studies. I speak now from the position economic system over the last four decades or so was of Central Bank Head, but due to influence of my work as extensive and wide-ranging. a development economist, my views could be somewhat Yet we are saddled with significant socio-economic different from those of a typical central banker. I however, issues like below potential growth, continued persistence try to straddle between the two subject areas, development of poverty pockets, unacceptable levels of regional studies and central banking, maintaining a balance that is inequalities and underutilised productive resources. At desirable from the point of view of promoting Sri Lanka’s the macroeconomic policy level, there are the continuing future development prospects. balance of payments difficulties, the shortfall of non-debt Let me begin by making a brief assessment of the creating capital inflows, large fiscal deficits and high public current economic conditions of Sri Lanka, commenting debt levels. in the process about required changes in development In order to resolve the continuing socio-economic policy approaches and practices. I will then make a few problems, thereby putting the country on a sustainable comments that fall into the subject area of central banking, path of rapid and inclusive growth, changes in the policy shedding some light on required re-thinking in the practice framework so far pursued are required. Innovative and of central banking. dynamic policy strategies need to be introduced and Sri Lankan economy today is at a crossroads. From the faithfully implemented. I believe this is the commitment of late 1970s we have been following a socio-economic policy the present governmental authorities.

12 The National Chamber of Commerce of Sri Lanka Annual Report 2019/20 Being a small country closely integrated to the world by timely and appropriate measures of monetary policy economy, policy problems faced by Sri Lanka are due and regulation, businesses and individuals today are in significantly to factors of global origin, in addition obviously a position to gain from low and declining market interest to those emanating from domestic developments and rates. We are beginning to see results of these policies in policy failures. The global trade cycle, movements in the the real economy by way of expansion in private sector world economic growth rate, behaviour of world inflation, credit and investment. interest rate movements, commodity price movements and exchange rate fluctuations are among the major global On the other hand, the Central Bank is also actively factors of significance here. Factors of domestic origin are facilitating several growth initiatives of the government. well known and too numerous to mention, arising out of The government has identified the support needed by the patterns of behaviour of the people and organisations small and medium scale enterprises (SMEs) from the and policy failures. In the short-term, the effects of nature’s banking sector, during phases of economic downturn as movements have exercised a significant impact, particularly well as during the period of their takeoff. The most recent over the recent past. Short-term impacts of man-made action on these lines is the special credit support scheme disasters also ought to be mentioned. extended to eligible SMEs thus complementing the fiscal incentives already announced by the Government. In line The dissatisfaction about existing policy environment has with the government policies and following stakeholder been widespread. Therefore, the fiscal authorities and consultation, the Central Bank issued a circular last week various other regulatory and promotional entities of the giving guidelines to licensed banks on the implementation government, guided and led by the Office of the President, of this scheme. The business sectors which will benefit are in the process of searching for alternative policies from this scheme include SMEs in manufacturing, services, that can achieve shared and inclusive development on a agriculture (including processing) and construction, in both sustainable basis and at a rapid pace. performing and non-performing loan categories. These measures are expected to accelerate credit growth to the Managing the monetary and financial developments private sector in 2020 and beyond, enabling a speedy and regulating relevant institutions, is entrusted to the revival of economic activity. In the meantime, the Central Central Bank. Through these activities, the Central Bank will continue to work towards development of a Bank is assigned the role of facilitating the development financial sector which is dynamic, resilient and efficient. promotional work of the other parts of the policy establishment. It is well-known that the current law entrusts Let me now turn to the human and social side of Sri Lankan the Central Bank with two major functions – policy outcomes. Production growth after all is necessary, though not sufficient to enhance and uplift human and (a) maintaining of economic and price stability, and social conditions of living. Thanks to various actions of (b) maintaining financial system stability.

On this basis, the Central Bank highlights the price level The government has stability maintained at ‘single digit’ level over the recent past. The general price level is determined by many factors. identified the support All these factors are not under Central Bank policy control. The low levels of inflation which prevailed over the recent past has produced the benefits, economic theory attributes needed by small and to low level of inflation. Low inflation has also contributed to maintain stable political conditions in the country. The medium scale enterprises

Central Bank , given its mandate, will continue to strive to maintain inflation within a range of 4-6 per cent through a (SMEs) from the banking transparent, coherent, and accountable monetary policy framework. sector, during phases of The low inflation environment and muted inflationary “ pressures also create some space for fiscal as well as economic downturn as monetary stimulus to work, boosting economic activity. Price stability without growth is clearly undesirable. well as during the period of Accordingly, the Central Bank adopts an accommodative monetary policy stance, supported by the global trends their takeoff. toward accommodative monetary policies. Supported

The National Chamber of Commerce of Sri Lanka 13 Annual Report 2019/20 61st Annual General Meeting of the Chamber

We in the Central Bank, working in the money and In Sri Lanka as of now, finance sectors, will provide the needed guidance and assistance to achieve these national objectives. The growth and development so facilitated, we hope, will the private sector has expand productivity and production, as well as productive employment. The aspired growth will thus be regionally moved into several areas balanced, shared among different social segments and

inclusive of particularly the weaker segments of the

of social importance in a population. Global experience highlights that the private sector with big way, such as “ housing, businesses such as those run by many in this room today, make a key contribution to promoting economic growth – infrastructure, health and through investments, knowledge transfer and enhanced productivity. Businesses are capable of creating new markets, fostering competition and making investments, education. which in turn, contribute to the productive and efficient allocation of resources, thereby paving way for social and economic advancement. governments since independence, Sri Lanka has achieved creditable social outcomes at even relatively low levels of In Sri Lanka as of now, the private sector has moved into average incomes. Even as early as the 1970s, Sri Lanka several areas of social importance in a big way, such as was seen as an “outlier” in this respect in inter-country housing, infrastructure, health and education. Businesses comparative studies. Our achievements in educational, can play a pivotal role in improving service delivery health and gender parity areas have been particularly through their own institutions and also as public-private impressive, although, clearly, problems and issues remain. partnerships. Private sector engagement in infrastructure Today, Sri Lanka possesses a large pool of skilled and projects allows for risk sharing. Private investment semi-skilled workforce. In addition, the infrastructure projects in infrastructure benefit from improved institutional investments of the government in the post-conflict era have capacity. This is of particular importance given the tight tremendously improved inter-regional connectivity within the fiscal constraints faced by the government at present, country. constraining its capacity to undertake infrastructure construction projects. The pervasive telecommunications network is the other significant infrastructural achievement. These investments Further, in the wake of climate change, the private sector have not only improved access to existing markets but can also lead the way forward in the adoption and/or have also opened up new market opportunities. Sri Lanka adaptation of environment-friendly technologies. Central today is well on its way to take its place in the global digital Bank, operating in its designated policy territory, will provide revolution. its support and guidance in this national endeavour. I call for your participation and collaboration with all stakeholders to Against this backdrop, Sri Lanka endeavours to progress enable Sri Lanka make its next big LEAP forward. I assure beyond the Upper Middle Income economy level. The you backed up by all information and analytical insights the country is reorienting its growth strategy highlighting and Central Bank Governor is privy to, the times before us are, supporting the domestic capital and entrepreneurship on the whole promising and good, in spite of the disaster to help develop a strong national bourgeoisie. With the mongers around. collaboration of foreign capital and domestic state capital, private capital could take the country into the next level I wish the officials, members and stakeholders of the of growth. Productivity-oriented expansion and growth National Chamber of Commerce and all of you who are of agriculture and manufacturing, targeting both import gathered here a successful and prosperous year ahead. substitution and export orientation would, we expect, enable Sri Lanka in the next few years to come to achieve its so far illusive economic take-off. Playing its much hyped Prof. W D Lakshman engine of growth role, the private sector, I hope, will work collaboratively with the public sector to achieve national Governor, Central Bank of Sri Lanka goals.

14 The National Chamber of Commerce of Sri Lanka Annual Report 2019/20 Extracts from the speech of Mr. Asela de Livera, President of the National Chamber of Commerce of Sri Lanka

Year 2020 is a very critical period for Sri Lanka as well as Deshamanya Prof. W D Lakshman, the world’s economy. Our economy faced many internal Governor of the Central Bank of and external challenges in the recent past. I believe, the recent changes which took place will lead to many policy Sri Lanka, Excellencies, diplomatic level changes that will have a positive impact on our economy. community, government officials, Global Economy and Asia international agencies, business Continued global policy uncertainty, distortionary trade community, distinguished invitees, measures and growth deceleration in the economics of important trading partners are influencing growth in Asia, members of NCCSL and media although the region is still the world’s fastest growing region, contributing more than two-thirds to the global officials. Welcome to the 61st growth. AGM of the National Chamber Sri Lankan Economy of Commerce of Sri Lanka. I As per the recent developments, the Sri Lankan economy

is gradually recovering from the severe impact of the Easter would like to thank Deshamanya Sunday terrorist attacks. Real GDP growth was revised to

2.7 per cent in 2019, and it is expected to increase to 3.5 Prof. Lakshman for accepting my per cent in 2020 as tourism and other activities normalise. “ The slowdown in growth and decline in imports have invitation to be our Chief Guest significantly impacted fiscal revenues. The global economy is quite competitive and every single country has its own and appreciate your presence here problems which they need to focus on. Sri Lanka should today. be seen as a country in the global economy, utilising its strategic position to benefit from major global economies without favoring any particular country. I am honored to be elected for another term as the 33rd President of this prestigious Chamber. I assure all of SME Development you that I will move forward the good work done by my It is widely accepted that SMEs are contributing immensely predecessors to take the Chamber to greater heights to the global economy. Similarly in Sri Lanka the main during the year 2020. driving force of the economy is considered to be SMEs. Approximately 75% of the enterprises in the country can be classified as SME and they provide approximately 40%

The National Chamber of Commerce of Sri Lanka 15 Annual Report 2019/20 61st Annual General Meeting of the Chamber

of the employment in the country in diversified sectors, and branding for overseas markets, ensures obtaining ensuring growth and contributing 52% to the GDP. It is internationally accepted norms and quality certification noted that many SMEs do not use latest technology and systems. We carry out seminars to improve packaging of have limited access to finance due to collaterals not being products and marketing. We interact with our missions available. Further, SMEs are not directly connected to abroad together with the Ministry of Trade and Commerce markets especially in the case of exports. to get required information for our members to find export markets The chamber is in the process of implementing a Asia is making an impact on the global economy as seen series of activities with Regional and District Chambers in the over recent years. Various studies confirm that SMEs are country to upgrade SMEs and Micro SMEs in the outstations. having the potential to enhance productivity and increase Lack of availability of SME performance related data is employment both nationally and globally. Trade and making it difficult for policy makers in implementing coherent investment liberalisation taking place in the Asian region, policy measures, in changing market demand and gaining through many preferential trade agreements is providing knowledge in innovation and creativity. When compared the path for growing opportunities across borders, which with large multinationals, SMEs are going through excessive will in turn ensure improved competitiveness and generate challenges such as lack of economies of scale, financial more and more jobs leading to sustainable development resources, technology and skilled labour, limitation of market in the region. From 1990s, through international trade, access and shortage of finance for research & development global value chain benefits were experienced by poorer etc. The NCCSL together with government development countries and paved the way for their economic growth. agencies and financial institutions such as banks continue Fragmentation of production was the key methodology in to encourage entrepreneurship in the country with many this concept, where a production process could be broken regional seminars being organised in the provinces. down to many subcontracts which can take place across borders. In other words different companies specialise We conduct the “Western Province Entrepreneurship in specific tasks getting involved in the production of the Awards” for entrepreneurs of the Western Province, which final product. This process involves raw material with value has been continuously organised since 2016, as requested addition crossing the border of a country and reaching by the National Enterprise Development Authority, which another, as semi-finished goods that may be assembled falls under the Ministry of Industries and Commerce. This as a final product for consumption. It is vital to put in place paves the way for smaller enterprises to attain national level required policy changes by authorities, in order to ensure standards and compete with larger scale business ventures continued participation in these global value chains. eventually through our flagship event, “The National Business Excellence Awards”. To this end the National Chamber is very much involved in this type of activity and carries out many programs to Export Development assist the small and medium entrepreneurs to develop their Export sector performance is very critical for an economy businesses. The National Chamber assists our member to progress. Critical factors should be addressed through SMEs to acquire the latest technology in manufacturing increased export revenues being developed. Initial steps methods, encourage them to invest in obtaining patents have been taken by the authorities to prepare the National Export Strategy (NES) for Sri Lanka as a joint effort of public and private sector consultative process. The main theme of The Export sector the NES is “Sri Lanka An Export Hub Driven by Innovation and Investment” with key focus sectors that have been performance is very critical identified as information and communication technology, wellness tourism, spices, boat building, processed food &

beverages, electrical and electronic components. It is of for an economy to progress. utmost importance that the National Export Strategy should

be revived at regular intervals enabling timely changes when Critical factors should necessary. be addressed through “ Shortage of Skilled Labour Shortages of skilled labour continue to be a hindrance increased export revenues across many businesses in both manufacturing and services in Sri Lanka. The National Chamber statistics also demonstrate that there is a shortfall in all the industries for being developed. skilled labour.

16 The National Chamber of Commerce of Sri Lanka Annual Report 2019/20 Trade information Portal In April 2016, the National Trade Facilitation Committee, We need to add value to chaired by the Director General of Sri Lanka Customs and Department of Commerce as the co-chairman was our agricultural products established. The Government and the private sector is represented in this committee, ensuring a well bonded and find markets for newly Public Private Partnership in achieving the ultimate goal of implementing the Trade Facilitation Agreement in Sri Lanka. This independent website is operated by the department of developed products with Commerce offering information - a one stop shop to traders “ who wish to import goods as well as export goods from Sri proper certifications and Lanka. It is of paramount importance to urgently implement the National Single Window in Sri Lanka in fulfilling our standards to sell to the commitment under the Trade Facilitation Agreement with the World Trade Organisation (WTO). It would provide world market. immense benefits for the trading community. Free Trade Agreements and Anti-Dumping Protection SMEs for export and the average in Asia being in the region of 30 percent. Sri Lanka has already signed bilateral Free Trade Agreements with India, Singapore and Pakistan. It is There is a vital necessity for SMEs and Micro SMEs in Sri expected to enter into more FTAs in the near future with Lanka to access overseas customers through a credible China and Thailand. Sri Lanka is firmly positioned as an authentic web platform. A solution similar to Alibaba to China investment destination in the Asian region which has nearly and Indiamart to India could be considered as examples. By 48% of the world’s population. creating such a platform for Sri Lanka, the National Chamber believes that potential Sri Lankan products will reach their The availability of power/ electrification, broadband market destinations easily. To meet this requirement the connectivity (mobile phone connectivity) 3 major developed National Chamber has embarked on a nationally important ports, high standard of public education and healthcare, mission to develop and professionally manage a web based skilled labour force, developing infrastructure are viewed platform named “fromsrilanka.com”. This is being launched favorably by investors. Although the local population is today and more of this will be explained later. around 22 million the extended market of several billions in nearby countries such as India, Pakistan, Bangladesh Agriculture and China view Sri Lanka positively. However, only steady I would like to speak a few words on agriculture as it and consistent policies will pave way to attract FDI to the plays a vital part in an agricultural based economy as country. ours. Food and security in crops is very important to our economy. We need add value to our agricultural products A well thought out common mechanism to protect our and find markets for newly developed products with domestic industries from unfair trade practices is a proper certifications and standards to sell to the world necessity. Most of the emergency economies like India, market. Unfortunately much of the produce is lost due to Brazil, and China are already practicing Anti-Dumping unavailability of proper storage, and transport facilities. measures with the view of protecting their domestic industries. I must place on record my sincere gratitude to my fellow Chamber Digital Platform Office Bearers, Council Members for their commitment and untiring efforts for making last year successful. A Microenterprises, defined as constituting a workforce of up very special word of thanks to the secretariat headed by to five people, (account for over 90 percent of very small Secretary General, for his commitment and the secretariat entities in Sri Lanka), yet they only account for a very small staff for their untiring support rendered to me during 2019. portion of GDP output. Sri Lanka has around 3000 small and medium enterprises with a turnover of less than 150 million registered as exporters who collectively contribute to less than 5 per cent of Sri Lanka’s exports. We are sadly Mr. Asela de Livera still a plantation export economy in structure. In contrast, China for instance has over 40 percent contribution by President

The National Chamber of Commerce of Sri Lanka 17 Annual Report 2019/20 Message from the President

The National Chamber introduced www. fromsrilanka.com“ B2B platform to promote exports

Considerable injections of liquidity to the banking sector It is indeed a privilege to present was amongst the most prudent, as it led to the financing of this message, for the Annual businesses, especially MSMEs. Report of the National“ Chamber Debt moratoriums offered to the general public, and other business-related concessions proved timely. However, of Commerce for the year the environment at present is not conducive in improving fiscal performance, especially due to the impact of reduced 2019/20. importation. In addition, closure of hotels and tourism activities, diminished export revenue and reduced workers’ remittances, all weigh heavily in denting the economy. The past year (2020) was extraordinarily challenging for the National Chamber, which was undoubtedly the same for Measures that were taken by the government also enabled our partners across various sectors. The local economy domestic producers to remain stable, especially through staggered as a result of the pandemic and tightening low-interest rates. In addition, import restrictions helped regulations, which compelled the government to intervene contain the substantial depreciation of the rupee by May with temporary mitigation stratagems. 2020.

As the entire world continues to bear the excruciating force The pandemic has also burdened many global health of the pandemic, the only solution is in embracing the tide networks and resources of even the richest nations. Given of change. Although it is not the ideal pretext for change, the mismanagements of certain countries in handling the the situation has challenged us to revisit every aspect of spread of the pandemic, Sri Lanka has faired relatively business, no matter how minute. well, as the collective efforts of the government, National Operation Centre for Prevention of COVID-19, the Ministry As the prominent Chamber and trade promoter of the of Health, and health sector professionals continue to country, we witnessed first-hand challenges faced by all control the spread of the pandemic further. businesses - especially the most vulnerable trade sector, SMEs. However, I must emphasise that the capacity National Chamber – Advocating Normalcy to adapt remains strong within our enterprises and Amidst the Pandemic amongst our entrepreneurs. Even after bearing a heavy Business Advisory Efforts financial beating, most of our businesses continue to fight a hard campaign, sustained by immediate strategic The National Chamber upheld its responsibility to its transformations and through economic assistant extended members throughout the first and second waves of the by the government and the Central Bank of Sri Lanka. pandemic. The Chamber took proactive and prompt measures upon the government’s decision to provide I must also remind you that the pandemic came at a time financial relief. Our first effort was to gather the resources when the country was rebounding from the devastating required in rendering business advisory services to terror attacks of April 2019. Both these events, although members and SMEs. These included guiding and preparing disparate in the consequences they unleashed, reminded businesses, especially SMEs to submit supportive us of the importance of national accord - an essential documents to obtain financial relief or working capital loans thread in maintaining the balance and peace of the from banks. country’s economic and social environments. We commend the State and the Central Bank of Sri Macroeconomic Developments Lanka, in having implemented a timely strategy to revive Review on State Policy Measures businesses that were affected by the pandemic. Most importantly, we appreciate the continued emphasis by The Chamber commends the policy changes and the Government, led by H.E. President Ghotabhaya implementations taken by the Government and expedited Rajapaksha on efforts to push through the release of funds by CBSL: as they were imperative in sustaining businesses, to businesses. amidst disruptions to income and livelihoods. Following the first wave of COVID-19 in Sri Lanka, the State efforts made a considerable impact against the Chamber organised several online discussions and unexpected impediments of the pandemic: Measures webinars, the first of which was a well-timed attempt such as reduced interest rates, improved market liquidity in discussing the musts of communication-related to and prudent actions for exchange rate stability provided working from home. A symposium was organised on the a temporary yet much-needed stimulus to the economy.

The National Chamber of Commerce of Sri Lanka 19 Annual Report 2019/20 Message from the President

preparedness of institutions in the face of COVID-19, taking The Chamber took actions to expedite its launch while our efforts a step further in assisting SME and business promoting the site amongst trade parties, associations sectors amidst the re-emerging pandemic. and businesses. The website is now geared and poised to register businesses and covers over 50 categories and over Similarly, we carried out several other webinars, in addition 900 products and services. The digital marketplace was to room-based workshops on trade and tax-related training launched during the 61st Annual General Meeting held in and knowledge dissemination. January 2020.

During the year, most of our previously scheduled bilateral Bearing the vision of supporting local enterprises engaged trade discussions and diplomatic meetings remained in export trade, the portal was designed to eliminate suspended; a decision compelled by travel restrictions and intermediaries in transactions between local suppliers and health concerns, which arose as a result of the pandemic. global buyers. Spurred by this strategic connectivity, we The Chamber plans to expedite these programs as soon hope to gather nearly USD 1 Billion export leads in the next as foreign travel resumes while adhering to regulations. 2 years, leading to increased foreign exchange revenue and Programs hosted in 2020, will be discussed in detail in a broad global exposure. As at present, we have partnered subsequent chapter of this annual report. with over 140 companies, with more companies expected to come on board in the near future. Nevertheless, the Chamber conducted several bilateral and diplomatic discussions with officials assigned to missions The platform hosts small, medium or large scale in several countries, ensuring enhanced cooperation with manufacturers, service providers, exporters, and trading the respective countries. Furthermore, several MOUs took companies in Sri Lanka. We expect the portal to be a place between NCCSL and national trade associations as significant step in promoting Sri Lankan foreign trade and well as with regional chambers. in increasing Sri Lanka’s potential to earn foreign exchange; making it a landmark effort. Chamber Management initiated a project to upgrade Chamber office facilities and building refurbishment was Global Economic Outlook carried out to a greater extent. As per indications by the World Bank, South Asia is projected to experience its worst economic recession in Further, many workshops/seminars were conducted 40 years. Given the volatilities that arose from COVID-19, on Tax Amendments, Labour Laws, Exchange Control regional growth will likely dip to the range of 1.8 – 2.8 Regulations, Export and Import Procedures, Environment per cent in 2020. The Maldives will presumably take a for Business etc. substantial hit in comparison to regional peers: GDP of Maldives is likely to stagger to 8.5 to 13 percent in 2020, as A special Help-desk facility was launched together with a direct result of the standstill in tourism activities. Ernst & Young to help SMEs in reaching formal financial assistance provided by the government in the backdrop of World Bank has estimated a negative GDP for Afghanistan, COVID-19 pandemic. Pakistan and Sri Lanka amidst supply chain disruptions and a reduction in demand for apparel products; this is made Further, the Chamber in collaboration with CMA Sri Lanka worse by the disruptions to hotel accommodations and air (supported by Professional bodies and Commercial Banks) travel, and falling remittances. As per World Bank analysis, set up the SME Help Desk and COVID-19 Business international capital is being withdrawn while domestic Advisory Services with the objective of assisting our economies face standoffs as a result of lockdowns and Members including SMEs to meet challenges faced due to restrictions. the Pandemic. The Business Advisory Services included support from experts in the fields of Accounting, Costing, The poorest countries will more sorely feel the effects of this Finance, Banking, Marketing, Human Resources/labor, global crisis with low-income families bearing the distress of Manufacturing, Management, IT together with Business job losses and livelihoods, largely by rural migrants. Sector Experts. Reviving economies amid immediate solutions to mitigating Promoting Exports and Trade the spread of the virus requires temporary relief programs, A major milestone reached during 2020, was the launch moratoriums and debt servicing, which will help stimulate of the digital B2B marketplace ‘fromSriLanka.com’. The the economy after the health crisis dissipates. While operational model of the platform is as a matchmaking tackling the threat of COVID-19 remains a priority in the digital marketplace, which benchmarks successful global immediate time-period, South Asian countries of the region platforms such as Alibaba. should at best maintain prudent debt relief measures.

20 The National Chamber of Commerce of Sri Lanka Annual Report 2019/20 However, there are significant opportunities that offer Partnerships between SMEs and the corporate sector confidence, given the bleak prospects for growth: one are lucrative, especially as SMEs have the potential to being the scope to expand digital technologies for payment offer products and services that will enable large-sector solutions and using digital tools to tap into the potentials of corporates to secure niche markets, both in Sri Lanka and those in remote areas of South Asian countries. outside of the country.

National Economic Outlook The agricultural industry provides ample examples of such Widening external debt remains a significant deterrence, niches. However, SMEs are challenged by their limited as pointed out by economic experts. Due to the country’s capacity to access funding and financing, in addition position in external-debt repayment in the medium term, to restricted access to tech infrastructure. Agricultural rating agency Fitch downgraded Sri Lanka’s Issuer Default engineering should be significantly pursued, in addition Rating (IDR) to ‘CCC’ from ‘B-’. According to the agency, to providing SMEs with adequate funding through viable future financing streams remain challenged by the already methods. Sustaining SMEs in Agro and other sectors high level of debt exacerbated by further ebbs in the could pave the way for a self-sustained economy, one administration’s debt dynamics. that relies heavily on domestic production and increases foreign exchange earnings through exportation of increased Nevertheless, the Chamber has expressed our appreciation production. to the State in maintaining a consistent stance on its taxation policies, which commenced with tax cuts and concessions Acknowledgement since November 2019. It is indeed heartening to see that the On behalf of the National Chamber, I extend my gratitude to Government did not opt for ad-hoc methods of increasing our partner companies, trade leaders and associations, for revenue, repercussions of which would have been felt by the unconditional support provided during the operational the general public and the business communities. Such a year. Your efforts are commendable, given the present course would have been further challenging to trades and situation and restrictions. I also thank all Government services due to lockdowns and restrictions; this is aside from officers who continued to support the Chamber including the negative impact on livelihoods/incomes of low-to-mid EDB, Department of Commerce, Ministry of Foreign Affairs income families. and others.

The budget proposal’s inclusion of agriculture, local Most of all, I extend my sincere honour to all Office Bearers dairy sector, fisheries and plantations in allocating funds and the Chamber Secretariat for managing to provide your alongside tax exemptions will be a much-needed reprieve services and stay dedicated to the National Chamber, for SMEs. This is an inclusive step, in protecting our despite the challenges. Most importantly, for your service Small and Medium Scale Enterprises, and ensuring their and support provided to me, in the past two years. As sustainable development as part of the national agenda – I conclude my two-year term as President of NCCSL, I ‘Vistas of Prosperity and Splendour’. take this message as an opportunity to convey to each Council Member and the operational team my sincerest At the time of penning this message, the budget proposals appreciation for your contributions, and service. It was an were in the stage of deliberation. Therefore, the Chamber honour to have provided leadership within this capacity, and reserve an optimistic outlook, with the expectation that the I will continue to extend my support and thought leadership budget will present the right measures in reviving confidence to the National Chamber, in the future. amongst investors and foreign financing institutions. To our esteemed Members, I thank each one of you, for Strategic Development of SMEs your confidence placed with us, mostly during these trying The National Chamber, as the representative of the SME times. I wish you all the best in 2021 and expect that the community, believes that economic progress can be made year will be profitable and promising. sustainable by placing SMEs at the heart of policy agendas. Forming over 75 per cent of domestic businesses, SMEs have a tremendous capacity to ramp up revenue and inject productivity to the economy. The unique creations and services of our SMEs can also open up new markets for Sri Lanka: This requires the state and the private sector to provide unrestricted support to SMEs in improving their Asela de Livera technical abilities, business acumen and capacity to innovate. President

The National Chamber of Commerce of Sri Lanka 21 Annual Report 2019/20 Secretary General’s Review

It is vital to look after MSMEs under“ COVID-19 pandemic situation sectors have tended to suffer smaller growth declines It is an honor to present our than manufacturing. In the current crisis, the public Annual Report for the year 2020, health response needed to slow transmission, together with behavioral changes, has meant that service sectors as we mark 72 years of service reliant on face-to-face interactions particularly wholesale and retail trade, hospitality, and arts and entertainment in the development of National have seen larger contractions than manufacturing . The scale of disruption indicates that, without a vaccine and enterprises. As CEO and Secretary effective therapies to combat the virus, such sectors face a

General of the Chamber I am particularly difficult path back to any of normalcy. Although a moderate recovery is envisioned in 2021, with placing my thoughts in a midst of global growth reaching 4.2 percent, output is not expected COVID 19 Pandemic situation to return to its previously expected levels. In many “ countries, deep recessions triggered by COVID-19 will likely that affected not only our weigh on potential output for years to come. Governments can take steps to alleviate the adverse impact of the economy but the every economy crisis on potential output by placing a renewed emphasis on reforms that can boost long-term growth prospects. in the globe Through Policy response many countries have provided large-scale macroeconomic support to alleviate the economic blow of the pandemic. Central banks in both The global health crisis COVID 19 is making the worst advanced economies and emerging economies have cut ever impact on global economy, it can be identified as the policy rates and taken other far-reaching steps to provide deepest economic recession that we experience since liquidity and to maintain investor confidence. world war II. The pandemic will make serious impact on long term growth prospects of all countries whilst affecting However the World Bank released by November 2020 per capita income of vast number of economies. It creates indicates, the global economic recovery has continued a situation for urgent health and economy action together despite a further worsening of the pandemic. Preliminary with global cooperation in order control the situation going findings regarding the effectiveness of COVID 19 vaccines from bad to worst. have helped lift investor optimism, with equity and oil prices start rising. Showing positive signs, China is gathering With larger outbreaks and international spillovers, most recovery momentum with sustained improvement in of the regions have severely downgraded their growth business conditions. Industrial production held steady by forecasts and there is a possibility many millions can October 2020, while retail sales rose to 4.3 percent (y/y). fall back to poverty as a result globally. Developing and Current account surplus narrowed from 3.1 to 2.5 percent emerging economies that have a weaker public health of GDP in 2020 Q3 as imports of goods surged. system and larger dependency on global trade, tourism, foreign remittances, commodity exports will have a tougher hit, it will further bring the effects on long term impacts such as lower investments, human capital erosion breakdown of The pandemic will make supply chain channels etc. serious impact on long With the widespread of pandemic, economies had to adapt strong protective measures such as social distancing, term growth prospects lockdowns, travel restrictions, closure of schools and non-essential businesses with the intension on ease out of pressure on healthcare system. This situation had a strong of all countries whilst impact on investment, labor availability for production, consumption, financial markets, global trade and services affecting per capita“ etc. income of vast number of As Indicated in IMF global outlook, the downturn triggered by the COVID-19 pandemic has been very different from economies. past recessions. In previous downturns, service-oriented

The National Chamber of Commerce of Sri Lanka 23 Annual Report 2019/20 Secretary General’s Review

Sri Lankan Economy The current account deficit is estimated to have narrowed in the first half of 2020. A reduction in imports due to severe Experiencing the economic downturn mainly due to most import restrictions is likely to have offset reduced receipts devastating terror attack on Easter Sunday April 2019. from remittances, tourism, tea and textiles. Following heavy The Tourism sector was hit hard by its negative effects depreciation pressures in March, the LKR stabilised in as tourism confidence and sentiment dropped drastically, the second quarter, as import controls helped the current recording a drop in tourist arrival alongside a drop in account. Official reserves, estimated at USD 7.4 billion as of earnings. Food and Beverage Services, Transportation of August, remain low relative to short-term external liabilities. goods, Warehousing, Wholesale and Retail Trade activities were also impacted affecting economic growth during Fiscal accounts deteriorated in the first four months 2019. of 2020. Tax revenues fell short due to low collection of value-added, income, and import taxes. The fiscal As per the world bank reports, the Sri Lankan Economy stimulus package implemented in November 2019 -which had a contraction in early 2020, which was driven by included a reduction of the VAT rate and an increase of weak performances of construction, textile, mining and the registration threshold, as well as import controls-, and tea industries. Against this backdrop, the COVID-19 health slow growth contributed to the reduction in tax collection crisis is believed to have impacted economic activity during this period. As a result, despite a moderation in severely since the first quarter. High frequency indicators public investment, the overall budget deficit increased suggest that growth has faltered in the second quarter, as by 24 percent in the first four months of 2020, year-on- curfews impeded economic activity and global demand year. Approximately half of the deficit was financed by remained weak. Moreover, the closure of airports to tourists Central Bank credit. The central government debt-to-GDP between April and September brought tourism activity to a ratio rose to over 90 percent (from 86.9 percent at end standstill. 2019), with more than half of the debt denominated in foreign currency. Citing limited fiscal buffers and external The economic effects vulnerabilities, Fitch and S&P downgraded the sovereign ratings

of COVID-19 will The economic effects of COVID-19 will have significant welfare implications. However, the COVID-19 crisis is

have significant welfare believed to have triggered sharp jobs and earnings losses. Informal workers, about 70 percent of the workforce, are

implications. However, the particularly vulnerable as they lack employment protection or paid leave. The apparel industry, which employs about COVID-19 crisis is believed“ half a million workers, has reportedly cut significant jobs. While agricultural production is expected to be largely to have triggered sharp jobs undisrupted, weak external demand likely impacted export- oriented subsectors and wages. High food price inflation, which remains at double-digits, is disproportionately and earnings losses. affecting the poor who spend a larger share of their budget on food. Weak demand has kept inflation in check thus far in 2020, creating room for policy support. Annual average inflation During the operational year chamber was forced to measured by the Colombo Consumer Price Index was 4.1 postpone or cancel most of our planned events and percent in August 2020 despite high food inflation. This activities, but tried our level best to extend support for the allowed the Central Bank to reduce policy rates by 250 corporate sector and MSMEs operating in districts and basis points and the reserve ratio by 300 basis points over provinces. the first seven months of 2020. The Central Bank also introduced a refinancing facility and a credit guarantee While the Chamber’s AGM remained the most highlighted scheme to encourage commercial banks to increase event in our calendar, we had to forgo some of the key lending. Despite these measures, private credit growth events such as mid-year International Healthcare Exhibition remained subdued in the first half of 2020. Asset quality for the first time in the 17 year event history and National and earnings of the financial businesses deteriorated, Business Excellence Awards of 2020 for the first time of the reflecting the impact of decelerating loan recoveries and 16 year event history, since the most of the enterprises are shrinking margins. affected by the pandemic and also public gathering was not recommended by health authorities.

24 The National Chamber of Commerce of Sri Lanka Annual Report 2019/20 SME friendly Loan Schemes through private finance The Chamber together with NEDA institutions that are realistic in terms of a diverse annual hosts our annual “Entrepreneur turnover base for eligibility and flexible guarantor schemes. Awards” western province designed Another key aspect in developing the sector is capacity

building. This is where the Chamber plays a role with for Micro, Small, Medium and tremendous responsibility. Annually, we host Regional

Workshops and Programs to educate and train enterprises Large sector entrepreneurs in the and owners in various aspects of business. From starting “ a business to understanding, production, manpower fields of Industry, Manufacturing, planning, managerial skills, finance to imparting knowledge on technical skills, the Chamber creates awareness on a Agriculture Livestock and Fisheries, regional scale. Hospitality and Tourism. The Chamber together with NEDA hosts our annual “Entrepreneur Awards” western province designed for Micro, Small, Medium and Large sector entrepreneurs in Entrepreneur Awards-Western Province 2020 was the fields of Industry, Manufacturing, Agriculture Livestock scheduled to be conducted early December 2020 but and Fisheries, Hospitality and Tourism and other services we were compelled to postpone the same to February Awards were presented in the areas of Best Environmental 2021, due to the second wave of COVID 19 pandemic friendly Enterprise, Best Exporter, Best Productive experienced by the country and western province Enterprise, Best Innovative Enterprise, Best Value Added prominently. Enterprise, Best Energy Efficiency Enterprise, Award for the Entrepreneur - Who has provided most number of Jobs During the year National chamber conducted few important for Females, Award for the Best Woman Entrepreneur activities helpful for the corporate sector such as Latest Tax and Award for the Best Entrepreneur – Differently amendments and Changes to foreign exchange act, Export abled. This annual exercise builds a healthy competition procedures and Import Documentation. amongst enterprises, to be the best that they can, getting recognition, exposure as well as commendation. We believe Though we planned many capacity building activities that the Award Ceremony encourages others to develop through the district and provincial chambers who are their business processes and functional areas of business, partners of the national chamber, we managed to conduct taking into consideration the behaviour of those that one such event in Anuradhapura held with much success. succeed. Corporate sector has the capability and capacity to reach In 2020, the Award Ceremony was postponed to February formal assistance of financial and banking system and 2021 due to COVID 19 Pandemic second wave that was continue with their activities even at a degraded phase, slowing down the economy by the last quarter for 2020. in the present difficult time of the country, we must not decrease our focus from the MSME sector. Micro Small and Medium Enterprises make up over 70 per cent of the Access to investment remains country’s businesses and has employed 45 per cent of the national workforce. However, despite this the sector a major constraint for SMEs. continues to experience challenges in finding sources of finance, innovation and market expansion. While there Lack of collaterals have impeded exists a National policy framework for SME development, the Government must reinforce it taking a serious stance funding. The Government on providing a SME-friendly environment through the right policies that reflect the true nature of the SME sector; needs to intervene in creating taking into serious account the growth of each industry within the sector, as well as reaching SMEs at provincial policies that facilitate more SME “ and grass-root level. friendly Loan Schemes through Access to investment remains a major constraint for SMEs. Lack of collaterals have impeded funding. The Government private finance institutions. needs to intervene in creating policies that facilitate more

The National Chamber of Commerce of Sri Lanka 25 Annual Report 2019/20 Secretary General’s Review

Introduction of FromSriLanka Platform Every year, the Chamber The National Chamber of Commerce of Sri Lanka is proud and happy to inform you the launch of fromSriLanka.com hosts the National Business platform, aimed at supporting Sri Lankan companies to

promote their products and services into the Global Market. Excellence Awards, the It was launched by Prof. W D Lakshman Governor of the

Central Bank on 21-Jan-2020 during The NCCSL AGM at National benchmark in the Kingsbury Hotel. rewarding the Best“ of FromSrilanka.com is a one-stop destination to source all Sri Lankan made products and services aimed at supporting Sri Lankan companies to promote their products and the Best in our business services to the global market.

community. The platform will include thousands of products and services from thousands of suppliers across the country for over 50 major categories, from Tea, Rubber, Coconut, Every year, the Chamber hosts the National Business Spices and Ayurvedic items to Apparel, Gemstones, and Excellence Awards, the National benchmark in rewarding Furniture or Services such as Software Development to the Best of the Best in our business community. This BPO solutions etc. prestigious Annual Award ceremony applauds those who have directly contributed to the growth of our economy, The platform is developed using the latest web showing great progress and resilience amidst tough technologies with performance and security in mind and will challenges. Over a 100 awards are presented to winners be hosted within the Oracle cloud, through a partnership. across several categories including three exceptional It uses responsive web design suitable for any PC, mobile companies the title of Gold, Silver and Bronze awards phone or tablet using the most popular browsers. in overall excellence, selected by a panel that includes some of Sri Lanka’s best and brightest business minds. Going according to the current situation of the country The National Chamber took a difficult decision to relinquish the Further National event in 2020 this year.

Not limited to educating and awareness programs, the Chamber is regularly Chamber continues to host diplomats under our signature “Meet the Ambassador Program, where the chamber hosting Ambassadors

hosts ambassadors and honorary consuls of various Nations and their Delegations who visit the island, for the

exchange of business and industrial information and for and Commercial Officers the pursuit of bilateral cooperation. In 2020, the Chamber hosted Ambassadors/ High Commissioners from Namibia posted to our foreign“ and Poland Bilateral trade and investment were discussed were held with diplomats with the participation of Chamber missions out of representatives and members of respective delegations.

Further National Chamber is regularly hosting Ambassadors Sri Lanka. and Commercial Officers posted to our foreign missions out of Sri Lanka. Under this programme Ambassador assigned to China visited Chamber for trade development The National Chamber will also initiate programs to support discussions with business community. Commercial Officers such export-oriented Sri Lankan companies on the platform assigned to India and Indonesia, Australia, Canada, Egypt, with knowledge, training and other support services to Japan, Malaysia, Russia, Sweden, Switzerland and United enhance their products, services and communications to Kingdom also visited the Chamber which were beneficial for meet export standards. The NCCSL intends to partner export and import development. with other trade associations and regional Chambers to

26 The National Chamber of Commerce of Sri Lanka Annual Report 2019/20 extend these services to their membership and will seek government and foreign donor support to promote the platform and support the supplier companies.

During the year several MOUs came into effect. These included an agreement between the National Chamber and FITIS, SLASSCOM, Sri Lanka Printers Association and Sri Lanka Ceramic and Glass Council and few MOUs with Regional Chambers. Ampara District Chamber of Commerce Industry & Agriculture, Chamber of Commerce & Industry of Uva Province, Chamber of Commerce of the Wayamba Province, Chamber of Commerce& Industries of Trincomalee District, Galle District Chamber of Commerce & Industries and Chamber of Provincial Entrepreneurs (COPE),

Solving business issues faced by business sectors are also in the frontline activities of the National Chamber, sugar tax is one such issue attended by National Chamber.

I also wish to place on record that the Chamber was requested to send representatives to many Government Bodies more fully described in this report.

In conclusion I would like to thank the President and Office Bearers of the Chamber for their invaluable leadership and insights during 2020, the Council for their guidance, my Operations Team for their dedicated service, and to the Chamber members.

The Chamber looks forward to an eventful and productive year in 2021, as we continue to serve our members and the business community with increased confidence and commitment.

Bandula Dissanayake Secretary General / CEO

The National Chamber of Commerce of Sri Lanka 27 Annual Report 2019/20 Executive Team Buddhipala Mr. Nandika Mr. Mr. Asela de Livera Mr.

President Senior Deputy President Lanka branch. Nandika performs as Mr Asela de Livera is an Engineer by Nandika Buddhipala is the Chief a Specialist of the Global Education Profession holding the National Diploma Financial Officer of Commercial Bank Forum of ACCA Global, member of in Technology (Electrical Power) and of Ceylon PLC since January 2008. He the Financial Reporting Standards Diploma in Refrigeration (South Bank has over 30 years’ experience in Audit Interpretation and Implementation University, UK). He is also a Member of and Assurance, Telecommunication Task Force of CA Sri Lanka. He was the Institute of Refrigeration (UK). He and Banking Industry. also an external member of Faculty is the Chairman/ Managing Director of of Business Studies & Finance of Koolair Group of Companies having 35 He is a Fellow member of the Institute Wayamba University and currently years’ experience in the field. of Chartered Accountants and CIMA external member of Faculty of Sri Lanka, ACCA (UK), CMA (Australia), Management Studies and Commerce Mr Livera also represents National Senior Associate of Financial Services of University of Sri Jayawardenepura Chamber at the Sri Lanka Energy Institute (Australia) and a member and a member of the Advisory Council Managers Association. And Member of of CISI (UK), IMA (USA). He holds of Colombo School of Business the Governing Council of the National B.Sc and post graduate diploma Management. He was a director of Institute of Business Management in Management from University of the Sri Lanka Accounting and Auditing (NIBM), Ministry of Skills Development & Sri Jayewardenepura, MBA, MA in Standards Monitoring Board. Vocational Training. Financial Economics and MSc in Financial Mathematics from University He is a member of Sri Lanka of Colombo. He was also a visiting Economic Association (SLEA), Royal lecturer of the both the universities Economic Society (RES), American and a guest lecturer for MA in Finance Economic Association (AEA), American Economics Programme of the Finance Association (AFA), American University of Colombo. Accounting Association (AAA), Strategic Management Society (SMS), He is the Chairman of the Technical and Accounting & Finance Association Committee of the National Business of Australia & New Zealand (AFFANZ). Excellence Awards and Chairman of the preparation of the National Budget Proposals of the Chamber in the recent past.

He is the current Chairman of Member Network Panel of ACCA (UK) Sri Lanka branch and member of the National Advisory Council of CISI (UK) Sri

28 The National Chamber of Commerce of Sri Lanka Annual Report 2019/20 Mr. Anura Mr. Wimalasuriya Warnakulasooriya Mr. G Deepal Nelson Mr. Mr. Dhammika Gamini Mr.

Deputy President Hony Treasurer Honorary Secretary Mr. G Deepal Nelson counts over Mr D. G Wimalasuriya is a Fellow Anura graduated Magna Cum Laude 30 years of business experience in Member of The Institute of Chartered from the University of Alabama, the field of manufacturing, strategic Accountants of Sri Lanka, and The USA with a degree in Management management, Health, Hospitality and Institute of Certified Management Information Systems and a minor in innovative marketing. He is a popular Accountants of Sri Lanka, and Computer Science. He worked as figure in the Apparels, Cosmetics and was a Past President of Chartered an IT Consultant in USA and retuned Healthcare sectors. Accountants Benevolent Society . He to Sri Lanka in 2005, to take over as is the Chief Financial Officer/ Director Managing Director of Midaya Ceramic He began his journey in the Apparel of Akbar Brothers Group of Companies Company Pvt. Ltd. Manufacturing Industry and was the and has served the company for President of the prestigious Sri Lanka the past 29 years. He was the first Over the last fifteen years he has Chamber of Garments Exporters, a Accountant of Mahaweli Development been instrumental in transforming Chamber that is voice of SME Apparel Board. After a stint of 5 years in the Fiji the business strategy at Midaya Manufacturers in Sri Lanka. Islands as an Accountant , he returned from a mass scale, medium value to Sri Lanka and held the positions of manufacturing business to one that Mr. Nelson was also a pioneer Director Financial Controller of Delmege Forsyth caters to high value, handmade of Dreamron Cosmetics (Pvt.) Ltd., & Company Ltd, and The General ceramics and niche ceramics. a Company that has a vast reach in Manager, H Don Carolis & Sons Ltd the professional beauty industry in Sri before joining The Akbar Group. Anura is also the Managing Director of Lanka. He is also the Managing Director MYS Lanka Pvt. Ltd. Midaya Wax Works of the Apeksha Group of Companies, a Mr Wimalasuriya is a Founder Trustee/ Pvt. Ltd. and a Director at Midaya medical venture focusing on Women’s Treasurer of CCC Foundation Sri Lanka, Packaging Industries Pvt. Ltd. He is Health and Fertility treatment in Sri a charitable organisation which has currently the President of the Sri Lanka Lanka, Technical Committee Member established a 198 bed transit home Ceramics and Glass Council. He is an of the Sri Lanka Inventors Commission, for cancer patients with all modern active Rotarian. Former Committee Member of the facilities, and the CCC Line which is National Economic Development a free telephone counseling service. He firmly believes that innovation and Council functioning under the Sri Lanka A great animal lover, he is the Hony solid business partnerships built on Treasury, Director – Grand Southern Treasurer of Animal Welfare & Protection transparency and trust is the best way Hotel (Australia) Group of Companies, Association which runs two shelters to take the private sector forward. Managing Director – Ogabo Global caring for more than 360 dogs and cats. Perfumerie (Pvt) Ltd. He is a committee member of the board of management of the Colombo YMBA, and senior member and past president of The Lions club of Havelock Town.

The National Chamber of Commerce of Sri Lanka 29 Annual Report 2019/20 Chamber Representation in Other Organisations The following executive leaders and members of the National Chamber are associated with various institutions, committees and boards of various

government agencies. Accordingly, they represent the Chamber through

these various positions. These various representations demonstrate the collective expertise and experience of our council“ members in areas of policy, trade and commerce; as well as their leadership and professional standing in their respective industries.

Mr. Asela de Livera Mr. Deepal Nelson President Deputy President • Council of Distinguished Advisors of Sri Lanka Energy • Member of Technical Committee to evaluate the Managers Association (SLEMA) application based on the field / area of innovation to • Ministry of Education – Member of the National implement innovation Accelerator Funding Mechanism Steering Committee 13 Years of Guaranteed Education for Sri Lanka, Sri Lanka Inventors Commission Programme • Member of Advisory Committee to Quality Management • Member of the Governing Council of the National Systems Certification Scheme (ADQMSCS), Sri Lanka Institute of Business Management (NIBM), Ministry of Standard Institution Skills Development and Vocational Training • Member, Policy Formulation Steering Committee for • Board Member - Agriculture Sector Modernisation the preparation of the National Policy for Industrial Project of Ministry of Plantation Industries and Export Development, Ministry of Industry Agriculture • Member - Inter-Ministerial Task Force for Industrial and Entrepreneur Development of Ministry of Industry and Mr. Sarath Algama Commerce Council Member • Member - Consumer Consultative Committee of the Public Utilities Commission of Sri Lanka • Representative for Sri Lanka National Arbitration Center • Member - National Trade Facilitation Committee (NTFC)

Mr. Samuditha Kumarasinghe Mr. Sujeeve Samaraweera Council Member Immediate Past President • Sri Lanka Standard Institution – Member of National Mirror Committee on Conformity Assessment • Member – Affiliated Associations oupGr of Employers’ Federation of Ceylon • Member - Sri Lanka Export Development Board Advisory, Committee on Trade Promotion and Trade information

Mr. Nandika Buddhipala Senior Deputy President Mr. Hemantha Kumara Perera • Representative to the “Integrated Reporting Council of Council Member Sri Lanka”, Institute of Chartered Accountants of Sri Lanka • Member - Sectoral Committee on Textile and Garments, Sri Lanka Standards Institution

30 The National Chamber of Commerce of Sri Lanka Annual Report 2019/20 Mr. Andre Fernando The following are the Members Council Member • Representative of the Sri Lanka Shippers’ Council of the Technical Committee of Innovation Accelerator Funding

Mr. Dineth Alahakoon Mechanism for Sri Lanka (IAFM Finance Manager, Country Style Foods (Pvt) Ltd – SL), Sri Lanka“ Inventors • Member of Management Systems Certification Committee (MSCC), Sri Lanka Standards Institution Commission, from the National Chamber:

Mr. Bandula Dissanayake 1. Mr. G. Deepal Nelson, Deputy President – National Secretary General / CEO Chamber • Department of Labour - Wages Board for the Retail and 2. Mr. Anura Warnakulasooriya, Honorary Secretary – Wholesale Trade National Chamber • Alternate Member - National Trade Facilitation 3. Mr. Chamika Lakshan Godamanna, Chairman, Committee (NTFC) Information and Communication Technology • Ministry of Industry and Commerce, Preparation of a 4. Mr. Samuditha Kumarasinghe, Chairman, Exporters National Policy on Industrial Development (NPID) Committee • Representative - Expo 2020 Dubai organised by Sri 5. Mr. Dushinka Nelson, Attorney-At-Law, National Lanka Export Development Board Chamber of Commerce Youth Forum • Member of Establishment of the Evaluation Committee 6. Mr. Tumal Karunaratne, Director, TSL Holdings (Pvt.) (EC) for Green Climate Fund (GCF) Project Proposal, Ltd. Ministry of Environment and Wildlife Resources. 7. Mr. Thiran Perera, Director, Autoland Car Company • Member - Expert Review Committee for NDA Readiness (Pvt.) Ltd. Support Project of GCF, Ministry of Environment and 8. Mr. Dumindu Karunagoda, Managing Director of WNJ Wildlife Resources Imports and Exports (Pvt.) Ltd. 9. Ms. Nishanthi Palipana, Managing Director, Live Real Estate Mr. Tissa Ruberu Assistant Secretary General • Alternate Representative, Sri Lanka Shippers’ Council

The National Chamber of Commerce of Sri Lanka 31 Annual Report 2019/20 The Council

Seated from Left to Right Mr. Nandika Buddhipala, Senior Deputy President, Mr. Asela de Livera, President, Mr. Bandula Dissanayake, Secretary General / CEO

Standing from Left to Right Mr. Sujeeve Samaraweera, Immediate Past President, Mr. Rizwan Nayeem, Mr. Haridas Fernando, Mr. Patrick Alwis, Mr. Yakooth Naleem and Mr. Sarath W Alahakoon

32 The National Chamber of Commerce of Sri Lanka Annual Report 2019/20 Seated from Left to Right Mr. Anura Warnakulasooriya, Hony. Secretary, Mr. Gamini Wimalasuriya, Hony. Treasurer and Mr. G Deepal Nelson, Deputy President

Standing from Left to Right Ms. M C Renuka Jayamanne, Mr. Sarath C Algama, Mr. Tissa Ruberu, Mr. K B S Bandara, Mr. Hemantha Kumara Perera and Mr. Pradeep Uluwaduge

The National Chamber of Commerce of Sri Lanka 33 Annual Report 2019/20 The Council

First Row Mr. Mohideen Cader, Mr. Samuditha Kumarasinghe and Mr. Dudley Thambinayagam

Second Row Mr. Sanjeewa Perera, Mr. Andre Fernando, Mr. Sanjeewa Gunawardena, Mr. Jayantha B Samarakoon and Mr. Himal Ariyasena

34 The National Chamber of Commerce of Sri Lanka Annual Report 2019/20 First Row Mr. Chamika Lakshan Godamanna, Mr. Ruwan Fernando and Mr. D Kavinda S Rajapaksa

Second Row Mr. Jalinda Karunaratne, Mr. Naleen Edirisinghe, Mr. Ranjith Tissera, Mr. Nilhan Ekanayake and Mr. Kalana Alwis

Council Members not in picture Mr. Channa Gunawardana, Mr. Dhanushka Daswatte, Mr. Athula Jayarathna, Mr. S A Cader, Mr. Eassuwaren Subramaniam

The National Chamber of Commerce of Sri Lanka 35 Annual Report 2019/20 The Council of 2020

Office Bearers President Mr Asela de Livera Senior Deputy President Mr Nandika Buddhipala Deputy President Mr Deepal Nelson Honorary Secretary Mr Anura Warnakulasooriya Honorary Treasurer Mr Gamini Wimalasuriya Immediate Past President Mr Sujeeve Samaraweera

Chairmen of 16 Standing Committees Chairman’s Name Committee Mr. Sarath W Alahakoon Agriculture & Food Processors Committee Mr. Naleen Edirisinghe Banking & Financial Services Committee Mr. Channa Gunawardana Ceramic & Glassware Committee Mr. Yakooth Naleem Dairy and Livestock Committee Mr. Ruwan Fernando Employment, Education and Training Committee Mr. Kalana Alwis Engineering and Construction Committee Mr. Samuditha Kumarasinghe Exporters Committee Mr. Dudley Thambinayagam Importers Committee Mr. Mohideen Cader Industries Committee Mr. Patrick Alwis Insurance Committee Mr. Chamika Lakshan Godamanna Information and Communication Technology Mr. Dhanushka Daswatte Plantation Committee Mr. Andre Fernando Ports, Shipping and Aviation Mr. Athula Jayarathna Power & Energy Committee Mr. Haridas Fernando Trading (Wholesale and Retail) Mr. Sarath C Algama Transport and Automobile Industries Committee Mr. G Deepal Nelson Small and Medium Enterprises Committee

5 persons from the Retiring Council Mr. Nilhan Ekanayake Lanka Canneries Ltd. Ms. M C Renuka Jayamanne Hospitality Management and Consultancy Associates Mr. K B S Bandara Bank of Ceylon Mr. D Kavinda S Rajapaksa Samson Rubber Industries (Pvt) Ltd. Mr. Jayantha B Samarakoon Coconut Growers Association of Sri Lanka

10 Nominees from the floor of the house Mr. S A Cader Julius & Creasy Mr. Pradeep Uluwaduge LOLC Group Mr. Eassuwaren Subramaniam Eswaran Brothers Exports (Pvt) Ltd. Mr. Rizwan Nayeem Sri Lanka Gem and Jewellery Association Mr. Hemantha Kumara Perera Isabella (Private) Limited Mr. Sanjeewa Gunawardena Darley Butler & Co. Ltd. Mr. Jalinda Karunaratne Imperial Teas (Pvt) Ltd Mr. Sanjeewa Perera Ceylon Grain Elevators PLC Mr. Himal Ariyasena HIMACO (Pvt) Ltd. Mr. Ranjith Tissera Estilo Apparel (Pvt) Ltd.

36 The National Chamber of Commerce of Sri Lanka Annual Report 2019/20 Past Leadership

A. Caffoor Mr. Robert Mr. Mr. M. Faleel Mr. P. Senanayake P. Mr. T. S. Jinasena T. Mr. Sir Cyril de Zoysa Zoysa Mr. A. C. H. de Mr. Mr. D. L. F. Pedris D. L. F. Mr. Mr. J. Siriwardena Mr. Mr. R. Wanigathunga Mr.

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)

Mrs. Nirmali Mr. Chandra Mr. Mr. Asoka de Mr. Samaratunga Z. Gunasekera J. Embuldeniya Mr. Hari Selvanathan Mr.

1998-2000 2000-2002 2002-2004 2005-2007 (Late) Alwis (Late) Mr. D. Eassuweren D. Eassuweren Mr. Mr. Chandra Lal de Mr. Mr. Asoka Hettigoda Mr. Mr. Sunil G. Wijesinha Mr. 2007-2009 2009-2011 2011-2013 2013-2015 Mr. Sujeeve Mr. Samaraweera Mr. Thilak Godamanna Mr. 2015-2017 2017-2019

The National Chamber of Commerce of Sri Lanka 37 Annual Report 2019/20 The Operational Team

. Mrs. K T D Jayakamani Accountant (Head of Finance & Admin)

Mr. H Sudath P Perera Driver

Mr. Bandula Dissanayake, Mr. Tissa Ruberu, Secretary General / CEO Assistant Secretary General

Ms. Devi Emmanuel Manager- Events & Mr. Ajith Senaratne Conventions Assistant Manager Mr. K B B S Darshana Web Master

Mrs. Thushari Manel Secretary

Mrs. K T D L Merly Ms. Achini Cooray Personal Assistant to Project Assistant Secretary General

Mr. R P Isira M Rathnasiri Accounts Assistant

38 The National Chamber of Commerce of Sri Lanka Annual Report 2019/20 Ms. N Surekha Ms. Hansani Jayawardana Neethu Singh Project Assistant Coordinator cum Secretary

Mr. Hashantha Abewickrema Business Development Manager

Mr. Sandanam Mrs. Nishanthi Dilrukshi Saththiwelu Projects Executive Driver/Office Aide

Mr. Kaliamman Letchahmanan Janitorial Assistant

Mr. S M M Nazeerdeen Office Aide

Ms. A E S Fernando Accounts Assistant

Mr. D Somaratne Ms. Nirmani Fernando Office Aide Project Assistant

The National Chamber of Commerce of Sri Lanka 39 Annual Report 2019/20 The Operational Team

Secretary General/Chief Executive Officer Finance & Human Resource 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 organisations 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 organisations and member services. The Division maintains a close Mrs. K T D Jayakamani relationship with the Standing Committees Chairmen and Accountant (Head of Finance and Admin) arranges meetings for such Committees. Ms A E S Fernando Mrs. K T D L Merly Accounts Assistant Personal Assistant to Secretary General Mr R P Isira M Rathnasiri Mr. K B B S Darshana Accounts Assistant Web Master International Relations & Trade Information Ms. N Surekha Neethu Singh Division Coordinator cum Secretary The Division performs research on trade information and disseminating them among member companies, including Mr. D Somaratne compilation of trade information bulletins and the Chamber Office Aide Newsletter. It also organises outward delegations from the Chamber, receives foreign delegations and arranges Mr. Sandanam Saththiwelu business meetings between visiting delegations and Driver/Office Aide Chamber members / business community.

Mr. H Sudath P Perera Mrs. Thushari Manel Driver Secretary

Mr. S M M Nazeerdeen SME, Skills Development & Other Services Office Aide Division The Division undertakes SME development activities Mr Kaliamman Letchahmanan and conducts workshops and training programmes for Janitorial Assistant the benefit of the member organisations. In addition, the Division provides other services such as match-making Commercial Documentation Division between SMEs and large corporates for marketing the The Division certifies commercial documents such as products and services of the SME sector. certificates of origin, commercial invoices, cargo measurement certificates and other related Mrs. Nishanthi Dilrukshi certificates that are needed by the business community in Projects Executive their export and import activities.

Mr. Tissa Ruberu Assistant Secretary General

Mr. Ajith Senaratne Assistant Manager

Ms. Nirmani Fernando Project Assistant

40 The National Chamber of Commerce of Sri Lanka Annual Report 2019/20 National Chamber Conventions Division The Division focuses on organising international exhibitions and business benchmarking competitions in Sri Lanka and assisting foreign organisations 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 Project Assistant

Fromsrilanka B2B Digital Platform Initiative Mr Hashantha Abewickrema Business Development Manager

The National Chamber of Commerce of Sri Lanka 41 Annual Report 2019/20 Chamber Services

The National Chamber in its mission to develop member enterprises, entrepreneurs and business professionals offer a broad spectrum“ of services. Diversified and restructured, these services are now classified under key categories for enhanced effectiveness and efficiency.

Services are specified in further detail below. Business Development Programs Commercial Documents • Conducts Workshops/Training Programs/Seminars and Lectures on topics related to commerce and industry. The Chamber provides commercial documents based on • The Chamber focuses on SME Development Programs requests from the business community. along the lines of business functions and technicalities, imparting information and knowledge on important • Issues Certificates of Origin for goods to be exported regulations, standards and process improvement • Registers other Commercial Documents measures. • Certification of commercial invoices • Shipping line certificates Library Facilities and Publications • Letters of recommendation to members to get their • The Chamber library is an updated, modern commercial VISA Approval. Library with information on all types of trade, Trade and Investment Promotions (National import, export, manufacture, service, joint ventures, Chamber Trade Links) Government policies, regulations, incentives and tariffs information. Through ‘National Chamber Trade Links’, we provide • Compiles Members’ Directory and trade databases. members and others opportunities in trade and investment • Advertises products and services of the members promotion, alongside a host of services, which are provided through our Monthly News Letter and the website at free to members, with the exception of certain classified concessionary rates. information, which may require payment. • Publication of “Voice of Business” news magazine of the Chamber activities. • Engages in activities conducive to the promotion of the • Disseminating trade information such as export/ import/ development and welfare of the community at large. investment opportunities through a weekly. • Explores markets for local organisations overseas. • Engages in matchmaking activities between SME and Bilateral Trade and Diplomatic Relations large corporate bodies. • Facilitating members to meet foreign delegations visiting • Conducting International Exhibitions and Trade Fairs on the Chamber and also to join Chamber delegations an annual basis, such as the Ayurveda Expo Indigenous visiting overseas countries. Healthcare Exhibition, AROGYA Healthcare Exhibition • Advises the Government to include private sector and INTRAD EXPO Trade Fair & Exhibition, yearly. friendly proposals in the National Budget Proposals. • Circulating on request business information of members • Providing opportunities for members to meet Sri Lankan such as their marketable products and services among diplomat/designates at the Chamber before their overseas parties through our information network. departure to take up foreign positions. • Organising business delegations from Sri Lanka to take • Organises Bilateral Trade Seminars every month with part in overseas exhibitions and trade fairs. foreign Embassies in Sri Lanka with the participation of • Organise meetings with key government officials. the Ambassador/High Commissioner, which provides • Prepare logistical arrangements for delegations visiting a forum for the members to interact directly with the Sri Lanka and coordinating meetings. officials of the relevant Embassies. • Establishes linkages and network with counterpart organisations in overseas countries.

42 The National Chamber of Commerce of Sri Lanka Annual Report 2019/20 National Business Benchmark Programs Enhancing Competitiveness Within the SME • NCCSL has pioneered two national award programs, and Agro Sector of which the most significant is the National Business • Backed by the purpose of making the agricultural sector Excellence Awards. Held annually, the awards ceremony and our SMEs self-sufficient, the Chamber explores and is one of our flagship events that allow businesses to provides opportunities to those engaged in agricultural aim for excellence in ranking their businesses on a and SME activities. The National Chamber focuses on national scale, and to compare their level of growth in developing the industry by developing the potentials business and management excellence. of those engaged in the sector, to achieve better competitiveness amongst SMEs. Secretarial Services to Associations • The Chamber provides secretarial services to Other Notable Work professional and business organisations, that do • Represent the Chamber at Government and non- not employ offices and administrative operations. government bodies. The National Chamber also facilitates them with • Represents the members at Government Forums to accommodations to host meetings and organise resolve their business-related problems. seminars. At present, the Chamber provides secretarial • Submit views in response to inquiries from the services to the following associations: Government. • Publishes reports based on the opinion of the members • Sri Lanka China Business Cooperation Council and submit them to the National Government and other • The Chartered Institute of Logistics & Transport relevant Government Authorities with the Chamber’s Sri Lanka recommendations. • Sri Lanka Bangladesh Business Co-operation Council • Carry out social activities as part of its corporate social responsibility programmes.

The National Chamber of Commerce of Sri Lanka 43 Annual Report 2019/20 Network for SME Development

Our Network for SME Development Province Regional/District Chambers/ 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 Mannar & Industry Eastern • Trincomalee Chamber of Commerce & Industries • Batticloa District Chamber of Commerce Anuradhapura Trincomalee & Industries • Ampara District Chamber of Commerce & Industries Puttalam Polonnaruwa Northern • Jaffna Chamber of Commerce & Industries Batticaloa • Mannar Chamber of Commerce & Kurunegala Industries Matale • Chamber of Commerce and Industry of Yalpanam (Jaffna) Kandy Ampara North Central • Anuradhapura District Chamber of Gampaha Commerce Industry & Agriculture Kegalle Badulla • Polonnaruwa District Chamber of Nuwara Eliya Commerce, Industry and Agriculture Moneragala Wayamba • Wayamba Chamber of Commerce and (North Western) Industry Ratnapura • Chamber of Commerce of the Wayamba Province Hambantota • Kurunegala District Women’s Chamber Galle of Commerce, Industry & Agribusiness Matara • Puttalam District Chamber of Commerce, Industry and Agribusiness Uva • Moneragala District Chamber of Commerce & Industries • 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

44 The National Chamber of Commerce of Sri Lanka Annual Report 2019/20 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-

The National Chamber of Commerce of Sri Lanka 45 Annual Report 2019/20 Standing Committee Structure

The Standing Committees of the National Chamber operate with the underlying purposes of identifying issues faced by a particular business

sector and in exploring solutions. The Committee also takes the lead

in organising activities based on training programs, awareness seminars, workshops to develop and “ assist particular business sectors and intervenes with the Government and relevant authorities concerning policy-related matters.

Our Network for SME Development No. Committee Chairman’s Name 1 Agriculture and Food Processors Mr. Sarath Alahakoon, Chairman, Country Style Foods (Pvt) Ltd. 2 Banking and Financial Services Mr. Naleen Edirisinghe, Deputy General Manager – Branch Credit, Pan Asia Banking Corporation PLC 3 Ceramic and Glassware Mr. Channa Gunawardana, CEO, Dankotuwa Porcelain PLC 4 Dairy and Livestock Mr. Yakooth Naleem, Managing Director, Bairaha Farms PLC 5 Employment, Education and Training Mr. Ruwan Fernando – Country Managing Partner, Ernst & Young 6 Engineering and Construction Mr. Kalana Alwis, Director / CEO, Nawaloka Construction Company (Pvt) Ltd. 7 Exporters Mr. Samuditha Kumarasinghe, Director, Natures Beauty Creations 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 and Communication Mr. Chamika Lakshan Godamanna, Managing Director, Ninehearts Imaging Technology (Pvt) Ltd. 12 Plantation Mr. Dhanushka Daswatte, DGM, Watawala Plantations PLC 13 Ports, Shipping and Aviation Mr. Andre Fernando, Chairman/Managing Director, MAC Holdings (Pvt) Ltd. 14 Power & Energy Mr. Athula Jayarathna, Managing Director, SAW Engineering (Pvt) Ltd. 15 Trading (Wholesale and Retail) Mr. Haridas Fernando, Group Manager - Agri Business, Cargills Ceylon PLC 16 Transport and Automobile Industries Mr. Sarath C. Algama, Managing Director - DIMO (Pvt) Ltd. 17 Small & Medium Enterprises Mr. G. Deepal Nelson, Managing Director, Apeksha IVF & Research Center Committee (Pvt) Ltd.

46 The National Chamber of Commerce of Sri Lanka Annual Report 2019/20 The Governing Council & Secretariat

• Services rendered voluntarily for the progress and Members of the Governing development of the Chamber.

Council include individuals elected The Secretariat Structure

by members of The National The Administration Division The division is responsible for all administration-based Chamber of“ Commerce and operations of the Chamber, in addition to monitoring nominated by other institutional activities of other divisions. The division is also responsible for managing Standing Committee activities, liaison with bodies. government organisations and member services.

Members of the Governing Council represent a variety of The Commercial Documentation Division disciplines and sectors and are top-ranking professionals The division certifies commercial documents such as and business leaders from the corporate and state sectors; Certificates of Origin, Commercial Invoices, Cargo in addition, they are experts of their respective disciplines Measurement Certificates and other related certificates that and trades. All Council members can remain in their position are needed by the business community in their export and for a nominated period, subsequent to which, the same import activities. members can present themselves for election or nomination; this ensures diversity and balance within the Council. The Finance and Personnel Division Prepares Budgets, Monthly Accounts and Final Accounts of Composition of the Governing Council the National Chamber, in addition to managing the finances of affiliated member organisations such as Business Office Bearers 05 Councils. The division is also responsible for overseeing Chairmen of Standing Committees 16 and managing HR activities of the Chamber Secretariat, Nominees of the Retiring Council 05 including functions related to recruitment, leave and staff Nominees from the Floor of the House 10 welfare. Responsibilities of the Governing Council The International Relations and Trade Information Division All members of the Governing Council engages in several strategically critical responsibilities, especially in relation to The division researches trade information and shares promoting the National Chamber and assisting the Chamber them with member companies as and when required. to provide services to business communities. The Council The division also undertakes the compilation of trade also plays a crucial role in the promotion of domestic trade information bulletins and the Chamber News Letter. It also by assisting the Chamber and in providing the Chamber organises outward delegations from the Chamber, receives with strategic direction in trade-related matters. foreign delegations and arranges business meetings between visiting delegations and chamber members. • Operate as the advisory body to the Secretariat • Promotion of business relations within the membership SME, Skills Development and Other Projects • Providing professional advice and consultancy in solving Division trade-related disputes for the business community The division manages all SME development activities, which • Identifying key business promotion areas for include the preparation of workshops and training programs development of Trade and Industry for the benefit of our members from the Small and Medium • Engaging in activities conducive to the development sector. In addition, the division also performs the role of and welfare of the Chamber and the community at large bringing together SMEs and large-scale corporates in • Assisting the Chamber in establishing linkages and marketing products and services of SMEs. networking with peer organisations in overseas countries National Chamber Conventions Division • Representing the Chamber at Government and Non- The division is dedicated to spearheading the Chamber’s Government bodies flagship events such as international exhibitions and • Coordinating with foreign trade bodies/delegations in business recognition and award programs in Sri Lanka. The visiting the Chamber division also assists foreign organisations to prepare and • Representing the Chamber in overseas forums, trade conduct exhibitions in Sri Lanka and brings together buyer fairs and events and seller parties for the benefit of Chamber members.

The National Chamber of Commerce of Sri Lanka 47 Annual Report 2019/20 Training and Knowledge Sharing Programs Corporate Seminars, Workshops and Webinars Navigating around the challenges and boundaries of 2020, NCCSL succeeded in conducting a range of knowledge- based programs during the operational year, for the benefit of our business communities. The National Chamber along with our resource persons worked proactively in coordinating online, web-based seminars and workshops, to provide continued dissemination of information and knowledge to our entrepreneurs and professionals.

Centred on educating and empowering our business communities, and professionals, this line-up of seminars and workshops covered topics ranging from import procedures to accounting. This year’s programs also Workshop on Import Procedures – First focused on converging businesses to the ‘new normal’, Workshop of 2020 through fresh thinking and by conforming to the massive A key theme of our workshops, Import Procedures and changes experienced by all businesses and institutions. Documentation, once again became a highlight of the year’s programs. Organised on the 5th of March 2020, as a full- Collectively, the forums received participation from day workshop at the Chamber Auditorium, the workshop hundreds of individuals, which included professionals from was lead by Resource person - Mr. T. Raviendrarajah, the corporate and state sectors, entrepreneurs from both Former Director of Customs SL – an expert in the field. SME and large-scale business sectors in addition to those with keen interests on the subject matters. His program covered the areas of:

Seminar on Tax Amendments • Imports and Import Requirements Highlighting the importance of understanding tax-based • Introduction to International Business technicalities the National Chamber expedited a half-day • Sales Contracts seminar on “Tax Amendments” on the 18th of February at • Import Restrictions and Terms of Sale the Chamber auditorium. The program was organised for • Incoterms - Purpose and Scope the business communities from Colombo and suburbs. • Payment Terms concerning Imports and Customs Imports Procedures and Documentation Contents of the seminar pinged on taxes, which had • Free Trade Agreements recently undergone amendments: These included - income • WTO Goods Valuation Agreement tax on Corporates and Individual, PAYE tax, Value Added • WTO Trade Facilitation Agreement (TFA) Tax (VAT), National Building Tax (NBT), Economic Service • Proof of Country of Origin Charge (ESC), Debt Repayment Levy (DRL), Port and Airport Development Levy (PAL), etc. The participants were engaged in Freight Forwarding, Electrical Items importation, Banking, Cargo, Marine, and The resource panel at the event included Ms. Sarah Afker, Automobile etc. Tax Partner at BDO Consultant and Key Presenter of the program who was joined by Mr. D.R.S. Hapuarachchi – Webinar - Work from Home Deputy Commissioner-General – ICT, Administration and Our first web-based seminar, the online seminar focused on Tax Operation Support – Inland Revenue Department, Mr. adapting to the new normal through a remote home-based Sulaiman Nishtar, Partner – E&Y - Tax Consultant and Mr. working environment. This was organised in collaboration Nandika Buddhipala, Chief Financial Officer – Commercial with FITIS and LK Domain Registry on the 7th of April. Bank of Ceylon PLC and Senior Deputy President of the National Chamber. Joined by 100 participants, the webinar covered communication aspects that surround a work-from-home The event attracted a gathering of 150 attendees, who arrangement, presented by Professor Gihan Dias, CEO of expressed their appreciation to the National Chamber for LK Domain Registry. Collaboration and workflow aspects organising the seminar. were covered by Mr. Wellignton Perera - Director and COO of Enhanzer (Pvt) Ltd.; security-based aspects were covered by Mr. Sujit Christy - Director of Layers-7, and Board Member of ISACA Sri Lanka Chapter.

48 The National Chamber of Commerce of Sri Lanka Annual Report 2019/20 The webinar was moderated by Mr. Aruna Alwis, CEO of Webinar - Imports and Exports Related FITIS, and was the first of many other webinars, which were Business Issues faced by the Business arranged by the National Chamber. Community in Sri Lanka Webinar - Impact of Global Pandemic on Shipping, Airline and Aviation Industry

Organised as a free webinar, the forum focused on Imports and Exports related Business Issues faced by the Business Community in Sri Lanka. Held on the 29th of May, speakers Discussing on a timely topic, the Chamber in association of the web seminar included, Mrs. T.V.D. Damayanthi with the National Chamber Youth Forum, conducted a S. Karunarathne, Controller General of the Import and webinar on “The Impact of the Global Pandemic on the Export, Mr. K.G.R. Wimalasooriya, Controller (Operational) Shipping, Airline and Aviation Industry”, with a special focus and Mr. M.K.U.S. Fernando, Assistant Controller from on how the country can lessen the blows from the global the Department of Imports and Exports Control, Mr. Sunil pandemic on 13th May 2020. Jayaratne, Additional Director General of Sri Lanka Customs, and Mr. S.R.P. Indrakeerthi, Director - Trade Facilitation and Presented as a free webinar, the forum was sponsored by Trade Information of Sri Lanka Export Development Board. MAC Holdings Pvt Ltd., and led by a panel of prominent industry experts, consisting of Admiral Professor Jayanath Mr. Chrisso de Mel, Director of the Group Shipping Colombage - additional Secretary to President for Foreign Department of Hayleys PLC, moderated the webinar. Relations and Director General of Institute of National Key contents discussed by the panel, included, Special Security Studies, General (Rtd.) Daya Ratnayake - 02 Gazettes and notices issued during COVID 19 such Chairman, Sri Lanka Ports Authority, Major General (Rtd.) G as Curtailing Importation of Selected Items - Gazette A Chandarsiri - Chairman, Airport and Aviation Services (Sri No. 2171/05 dated April 16th, 2020, Import and Export Lanka) Limited, Mr. Ashok Pathirage - Chairman Sri Lankan (Control) Act No. 1 of 1969 - Revised Gazette Notification Airlines Ltd and Sri Lankan Catering Limited, Mr. Shehan on 21st May 2020, Operating Instructions - Imports and Sumanasekera - Director Airport and Aviation Services (SL) Exports Control Department and other challenges faced by Limited, and Dr. Ruanthi de Silva - Maritime Consultant importers and exporters. with 40 years local and international experience with CSC, Hapag, Lloyd Asia, BSM Ship Management. Workshop on Import Procedures – Second Workshop The webinar was hosted by Mr. Andre Fernando, Chairman Focusing on Import Procedures and Documentation, a one- of the Ports, Shipping and Aviation Committee, Council day workshop was organised by the National Chamber, Member of the National Chamber of Commerce of Sri with emphasis on Sri Lanka Custom’s operations amidst Lanka and Chairman/Managing Director of MAC Holdings COVID-19. The workshop also included a brief discussion Pvt Ltd. on amended rules and regulations of import procedures. The event was held at the Chamber auditorium on the 30th Hosted via Zoom, the webinar was accessed by over of July. 350 participants. Discussion areas included - The need for independent and interdependent cross-border and domestic supply chains for a new economic model and development of maritime infrastructure, Sri Lankan Airlines National Carrier and Post COVID Plans and impact of the Pandemic on Airports/Aviation and Post COVID strategies for sustainability.

The National Chamber of Commerce of Sri Lanka 49 Annual Report 2019/20 Training and Knowledge Sharing Programs

Areas covered through the workshop included Attendees consisted of Supervisors, Managers and staff who are engaged in exports. A valuable certificate was • Introduction to Imports, Imports Planning handed to participants at the end of the workshop. • Determining Import Requirements • Introduction to International Business Seminar on Foreign Exchange Act and New • Sales Contracts and Import Restrictions Changes • Terms of Sale, Incoterms - Purpose and Scope, A seminar on Foreign Exchange Act and New Changes Payment Terms concerning Imports was conducted on the 29th of September, in collaboration • Agreement of Payment Terms - A review of the impact between the National Chamber and the Department of of each type (including Letter of Credit and Document Foreign Exchange (Central Bank of Sri Lanka). Held at the Collections) on import payments National Chamber Auditorium, the seminar was a half-day • Sri Lanka Customs in the Face of COVID-19, a brief event. discussion on the role played by the Sri Lanka Customs Department • Newly amended rules and regulations • Customs Imports Procedures and Documentation • Classification of Import Documents and Clearance of Commercial Cargo through Customs - Sea Cargo and Air Cargo • Free Trade Agreements, WTO Goods Valuation Agreement and WTO Trade Facilitation Agreement (TFA) Workshop on Export Procedures - First Workshop Exploring external trade based processes, a one-day workshop on Export Procedures and Documentation was organised by the National Chamber, which was the first of two workshops on the subject matter. This was conducted on the 17th September 2020 at the National Chamber Auditorium.

The workshop was organised for the purpose of providing a complete understanding of export-based procedures to new staff, while also refreshing the knowledge of the experienced staff on the latest procedures related to routine export related work. Mr. T. Raviendrarajah, Former Director of Customs was invited as the Resource Person for the event.

Content of the workshop covered:

• Introduction to Export and Export Planning The panel of speakers and experts included Mrs. G.S. • Introduction to International Trading and Source of Export Kamileen, Senior Assistant Director of the Department of • Determining Export Requirements Foreign Exchange and Mr. M.D. Jayawardena, Assistant • Export Restrictions Director of the Department of Foreign Exchange. Guest • Terms of Sale and Incoterms 2010- A review of the speaker at the event was Mr. R.R. Jayaratne, Director of main ones Foreign Exchange-Department of Foreign Exchange. • Introduction to Incoterms 2020 • Classification of Export Documents Key topics covered through the workshop included: • Role of Freight Forwarders in Exports • Logistics and Physical Distribution Activities • All aspects of the Foreign Exchange Act • Customs Export Procedures, Port Procedures • Liberalised foreign exchange operations and new • Customs - Privileged Facilities regulations • Special attention on WTO, Trade Facilitation Agreement • Offences and Penalties under the Act (TFA) • Dealers of Foreign Exchange • Publications and Sri Lanka Trade Information Portal (SLTIP)

50 The National Chamber of Commerce of Sri Lanka Annual Report 2019/20 The event concluded with a discussion, with the moderated by Professor Indika Karunathilaka, President of opportunity for participants to interact with the panel of the Sri Lanka Medical Association. experts and resource persons. Those gathered at the event included Business Owners, Financial Analysts, Bank The webinar can be viewed on Link: https://www.youtube. Managers, Exporters and Importers, CFOs and Decision com/watch?v=jKfGaem3A1M Makers etc. Webinar – Entrepreneurship 360 NCCSL in conjunction with the National Chamber Youth Forum organised a webinar and virtual panel discussion titled ‘The New Normal – Beyond Working from Home’ on 25th April 2020. The webinar received over 4600 viewers Webinar - Can we use Digitally Signed and was an immense success. Documents to support Work from Home

The discussion panel was formed by ETF Board Chairman, On 15th April, a webinar for discussing the validity and Mr. Sriyan de Silva Wijeyeratne who is the former Country practicalities of using Digital signatures was conducted. The Manager of Microsoft Sri Lanka and Bangladesh and program was organised by FITIS to explore the legal basis Ms. Darshi Talpahewa, Group Head of Hayleys (HR and of digital signature based communications in Sri Lanka. The Legal). The discussion was moderated by Mr. Chamika webinar was collaboratively organised by FITIS, LK Domain Godamanna, Chairman of the IT standing committee of Registry and LankaPay. The webinar can be accessed on NCCSL; he is also the Managing Director of Stelacom (Pvt) https://www.youtube.com/watch?v=pnNwpBegcc0&ab_ Ltd. and Director at Ninehearts Imaging (Pvt) Ltd. channel=FITIS.

The webinar was part of several such activities organised Webinar - Use of Advanced Analytics to recover by the National Chamber Youth Forum, bringing together from COVID-19 hit Economy young entrepreneurs and start-ups across Sri Lanka and Organised by the Federation of IT Industry Sri Lanka (FITIS), from around Asia. The Youth Forum takes initiative for the seminar focused on the use of advanced analytics in organising seminars, panel discussions, and webinars, with reviving COVID hit economies. Leading representatives the sole objective of connecting young entrepreneurs and from Whiteklay Group including its GM/President and Head start-up companies in Sri Lanka. of Technology addressed the forum. The event’s target audience was CIOs, CTOs and Heads of IT and was held The webinar can be accessed on Link: https://www. on 23rd April 2020. facebook.com/nccyouthforum/videos/516612012576043 Webinar - Global ICT Opportunities in the Symposium - Institutional Preparedness and “New Normal” Response for COVID-19 A virtual forum was held on 5th May 2020 to discuss ICT NCCSL, in collaboration with the Sri Lanka Medical opportunities that stem from the post-COVID-19 context. Association, conducted another online seminar, on the The forum was the first-ever Asia-Pacific-based event readiness of institutions in responding to the COVID-19 conducted by FITIS in collaboration with Asian-Oceanian outbreak for the continuation of work operations. The forum Computing Industry organisation (ASOCIO). The forum was conducted on 2nd May 2020 and was experienced by featured several prominent experts from several countries over 125 participants of high-ranking positions. within the region and was attended by professionals from the ICT and other industries, including top-ranking Speakers of the panel comprised Dr. Ananda corporate leaders, regulators and top executives. Wijewickrama, President of the Ceylon College of Physicians, Dr. L. T. Gamlath, DDG Environment - Webinar - A Roadmap for Sri Lanka to be a Occupational Health and Food safety unit-MOH, Dr. N. Digital Nation Shirani Chandrasiri, President - Sri Lanka College of FITIS, in collaboration with Ernst and Young, hosted a Microbiologists, Professor Saroj Jayasinghe, Professor of webcast on 6th May 2020, which focused on the future Medicine - Faculty of Medicine, University of Colombo, direction for Sri Lanka, in becoming a digital nation. Professor Lal Chandrasena - Health Sector Advisor Speakers of the session included Vikas Aggarwal, India of the National Chamber of Commerce, Professor Lal Partner - Ernst & Young, Ganaka Herath, Managing Partner Chandrasena, Professor of Community Medicine, Faculty – Mckinsey & Company (Sri Lanka) and CEO and ICTA of Medicine - University of Colombo: The event was Board Member Reshan Dewapura.

The National Chamber of Commerce of Sri Lanka 51 Annual Report 2019/20 Business Development Programs – SME At NCCSL, we are committed to developing micro, small and medium based entrepreneurs through strategically devised programs that best- enable them to develop their capacities, resources, knowledge and

potentials for growth. However, the purpose of our work is not only to

develop their technical know-how but to also encourage them to interact with entrepreneurs from all walks of“ life. As mediators of business opportunities, we bring together MSME entrepreneurs, to help them connect and share experiences.

These programs also help shape their mindset, giving them The Resource person invited for the event was Mr. Sarath the means to hone their business and leadership skills. Munasinghe, a professional from ICASL. The effort was a success, as participants conveyed their appreciation to During the year under review, despite the obvious NCCSL for educating them on a fundamental aspect of challenges that prevailed due to COVID-19, the National business management. Participants represented diverse Chamber organised several business development business sectors and were awarded a Certificate by programs for the benefit of SMEs across the country. the National Chamber, at the end of the program. The programme received support from the Bank of Ceylon. Capacity Building Program in Anuradhapura The first of our capacity development programs for the Free Online Help-Desk year, a one-day training program on “Basic Accounting An online help-desk was created in collaboration with and Record-Keeping” was organised for educating and Ernst & Young to assist Members of the National Chamber training entrepreneurs of Small and Medium enterprises. and the Business community, including SMEs. A key The program was conducted in the Anuradhapura District, objective of the help-desk was to request for relief from in association with the Anuradhapura District Chamber of the Government for SMEs and businesses impacted by Commerce on 20th February 2020. COVID-19. This was in line with the directions issued by the Central Bank of Sri Lanka, The programme covered the areas of: Eligible borrowers received the opportunity to submit • Need for records written requests for relief before 30th April 2020. Business • Recordkeeping, and stock control sectors, which were eligible for relief funds were: • Basic Accounting, Decision making, taxation etc.

52 The National Chamber of Commerce of Sri Lanka Annual Report 2019/20 • Tourism, direct and indirect export-related businesses Webinar on “Legal Environment of the including apparel, IT, tea, spices, plantation and related Business” for SME and Micro Business Entities logistic suppliers Link: https://www.facebook.com/nationalchamber/ • SMEs (Revenue less than Rs. 1 Bn.) in manufacturing, videos/399861364770796 services, agriculture (including processing), construction, value addition and trading businesses including authorised domestic pharmaceutical suppliers with turnover below Rs.1 Bn.

Ernst & Young assisted businesses by providing sample request letter formats, sample templates for subsidised working capital loans, general contact details of banks to send the requests and general advice on how best to approach authorities for relief, etc. Business Advisory Services for SMEs The National Chamber in collaboration with the Institute of Certified Management Accountants of Sri Lanka (CMA), formed a helpdesk, to provide advisory services to our The National Chamber of Commerce of Sri Lanka together Members including SMEs. The initiative received the with Pan Asia Banking Corporation PLC jointly organized support of professional institutions and banks in assisting the Webinar on “Legal Environment of the Business” Small and Medium businesses to combat the adversities on 22nd December 2020 for the Small and Medium faced by entrepreneurs in the face of COVID-19. Enterprises and Micro business owners throughout the Country in order to educate them on Legal aspects of Business Advisory Services were provided with the Business with a special emphasis on COVID 19 Pandemic involvement of experts from Accounting, Costing, Finance, Situation, Labour Law & Labour relations in Sri Lanka. It is a Banking, Marketing, Human Resources and Labour, known fact that lot of business entities are facing difficulties Manufacturing, Management, IT, along with other Business especially on legal/labour environment of the business. Sector Experts. The Resource person was Mr. Ananda Sahabandu, Former The initiative became a respite and support to our Members District Labor Commissioner and an Attorney-at-Law and who were facing challenges brought on by the pandemic – was moderated by Mr. Nimal Ratnayake, Assistant General especially those in the SME sector. Manager – Branch Credit, Pan Asia Bank. It was concluded successfully with over 70 participants joined the webinar. Entrepreneur Awards 2020 Western Province The National Chamber entered into an agreement with the National Enterprise Development Authority (NEDA) to conduct “Entrepreneur Awards 2020” for the Western Province”. This will be the fifth occasion on which the awards program will be organised for recognising the dedication and business excellence of Micro, Small, Medium and Large Businesses in the fields of Industry/ Manufacturing, Agriculture/Livestock/Fisheries and Hospitality/Tourism/Other Services in the Western Province.

The event was initially scheduled towards mid-December 2020; however, after considering the prevailing conditions within the country due to COVID-19, the event was postponed to the first week of March 2021.

The National Chamber of Commerce of Sri Lanka 53 Annual Report 2019/20 Bilateral and Diplomatic Initiatives

Bilateral trade is pivotal to the progress of our open economy, especially

in this age when fragmentation of production continues to erupt across

the world, with more economical benefits of its dispersion being felt in developing countries. As one of Sri Lanka’s apex“ chambers, we uphold our responsibility in promoting Sri Lankan businesses amongst our regional peers and across the globe.

The National Chamber takes every opportunity to host His Excellency Adam Burakowski, Ambassador of representatives of diplomatic missions and foreign Poland to Sri Lanka was the special guest speaker at delegations, to discuss challenges and explore new the discussion. The gathering also included Ms. Anna pathways for investments and business opportunities, and Rosenthal - Second Secretary, Head of Political and in enhancing bilateral cooperation, between Sri Lanka and Economic Section and Mr. Kanchana Perera, Economic other nations. Promotion Specialist also participated at the event. Bilateral Trade Discussions with Namibia A discussion on bilateral trade between Sri Lanka and Namibia was conducted on the 5th of February 2020. The event was held at the National Chamber, with the participation of His Excellency Pandureni Sinimbo, High Commissioner of the Republic of Namibia along with Mr. Oscar Sikanda, Commercial Counsellor of the High Commission of Namibia and Mr. Rohan De Silva, Hon. Consul of Namibia for Sri Lanka.

Bilateral Trade Discussions with Poland Representatives from the Polish diplomatic community, together with the National Chamber conducted a bilateral trade discussion on the 26th of February 2020. The session was held at the Chamber auditorium and focused mainly on Picture shows from left: Special Guest Speaker H. E. Adam conducting trade between the two countries. Burakowski, Ambassador of Poland to Sri Lanka. Mr. Asela de Livera, President - National Chamber, Mr. Deepal Nelson, Deputy President, Mr. Bandula Dissanayake, Secretary General/CEO - National Chamber. 54 The National Chamber of Commerce of Sri Lanka Annual Report 2019/20 International Trade

Meeting with Designated Commercial Officers • Ms. M.M.T.D, Mullegamgoda, Asst. Director of – India and Indonesia Commerce - Russia/Moscow • Mr. R.P.G.R. Rajapakse, Asst. Director of Commerce - A meeting was organised with Commercial Officers Sweden/Stockholm designated to Sri Lankan Missions in India and Indonesia. • Mr. B.G.P. Jayakody, Deputy Director of Commerce - The designated officers included Mr. Dilanga Hettiarachchi, Switzerland/Geneva Assistant Director of Commerce designated as a 3rd • Ms. Gaya Senaratne, Asst. Director of Commerce - the Secretary of Deputy High Commission, Chennai, India; United Kingdom/London Ms. Heshani Kaushalya, Assistant Director of Commerce designated as a 3rd Secretary to the Embassy of Sri Lanka Meeting with Ambassador to China in Jakarta, Indonesia. The National Chamber conducted a meeting with His The occasion was organised on the 13th of January 2020 Excellency Dr. Palitha Kohona, Ambassador Designated at the National Chamber Auditorium and became an to China on the 20th of October 2020 at the Auditorium of opportune moment to discuss matters based on trade the National Chamber. The event included discussions on between the countries and in discussing prospects for trade-related concerns with China. further strengthening of bilateral relations. Representatives from NCCSL comprised Mr. Asela de Livera, President, Mr. Deepal Nelson, Deputy President, Honorary Treasurer, in addition to Council members who participated at the meeting.

Meeting with Designated Commercial Officers of 10 countries As part of a customary, introductory process of meeting members of trade chambers, 10 newly appointed Commercial Officials in overseas Sri Lankan missions, visited the National Chamber on the 16th of December 2019. The occasion was organised at the Chamber auditorium: The names of the 10 officials are as follows: • Ms. R. Ariyaratne, Deputy Director of Commerce - Australia/Sydney • Ms. C.K. Kiriwandala, Deputy Director of Commerce - Canada/Toronto • Mr. B.M.K. Balasooriya, Asst. Director of Commerce - Egypt/Cairo • Ms. A.M.H.K, Premathilaka, Asst. Director of Commerce - Indonesia/Jakarta • Ms. H.K.L. Wickramasinghe, Deputy Director of Commerce - Japan/Tokyo • Ms. T.C. Vithanawasam, Asst. Director of Commerce - Meeting with H.E. Dr. Palitha Kohona, Ambassador Malaysia/Kuala Lumpur Designated to China held on 20 October 2020 at the Auditorium of the National Chamber. The National Chamber of Commerce of Sri Lanka 55 Annual Report 2019/20 International Trade

Ten new Commercial Officials appointed to Sri Lanka Missions abroad visited the National Chamber on 16 December 2020 at the National Chamber Auditorium. As a part of the preparatory process, it has been customary for the Commercial Officials appointed to Sri Lanka Missions abroad to meet the members of the trade chambers. The details of the Commercial Officials are;

Name of the Officer & Designated Designation Country 1. Ms. R. Ariyaratne, Australia/Sydney Deputy Director of Commerce Meeting with Dr. Lalith Chandradasa, Consul General-designate to Sri Lanka Consulate General Office in 2. Ms. C.K. Kiriwandala, Canada/Toronto Los-Angeles and National Chamber Office Bearers at the Deputy Director of Commerce National Chamber on Wednesday, 30 December 2020 3. Mr. B.M.K. Balasooriya, Egypt/Cairo Asst. Director of Commerce 4. Ms. A.M.H.K, Premathilaka, Indonesia/Jakarta Asst. Director of Commerce 5, Ms. H.K.L. Wickramasinghe, Japan/Tokyo Deputy Director of Commerce 6. Ms. T.C, Vithanawasam, Malaysia/Kuala Asst. Director of Commerce Lumpur 7. Ms. M.M.T.D, Mullegamgoda, Russia/Moscow Asst. Director of Commerce 8. Mr. R.P.G.R. Rajapakse, Sweden/ Asst. Director of Commerce Stockholm 9. Mr. B.G.P. Jayakody, Switzerland/ Mr. Asela de Livera, President, National Chamber Deputy Director of Commerce Geneva exchanging the souvenir with Dr. Lalith Chandradasa, Consul General-designate to Sri Lanka Consulate General 10. Ms. Gaya Senaratne, United Kingdom/ Office in Los-Angeles on 30 December 2020 at the Asst. Director of Commerce London National Chamber

Group Photo with New Commercial Officials appointed to Sri Lanka Missions Abroad at the National Chamber on 16 December 2020. Mr. Asela de Livera, National Chamber President, Mr. Chamika Godamanna, Chairman- ICT Committee and Mr. Bandula Dissanayake, Secretary General / CEO also in the picture.

56 The National Chamber of Commerce of Sri Lanka Annual Report 2019/20 Strategic Initiatives

Strategic Initiatives - Memorandums of MOU – National Chamber and SLASSCOM Understanding (MOU) This special MOU was signed between the National MOU - National Chamber and Federation of Chamber of Commerce of Sri Lanka and the Sri Lanka Information Technology (FITIS) Association of Software Service Companies (SLASSCOM) A memorandum of understanding was signed between to promote the Chamber’s online platform ‘fromsrilanka. the National Chamber of Commerce and the Federation com’ among member companies of SLASSCOM. The of Information Technology (FITIS) on the 17th of February signing of the MOU took place on 6th August 2020. 2020. Mr. Asela de Livera, President of the National Chamber of Commerce of Sri Lanka and Mr. Abbas The signing was carried out under the participation of Mr. Kamrudeen, Chairman of Federation of Information Hashantha Abewickrema Business Development Manager Technology Industry Sri Lanka (FITIS), signed the MOU. of FromSriLanka.com, Mr. Chamika Godamanna, Chairman FITIS is the apex organisation in the ICT sector, which - NCCSL Information & Communication Technology, oversees the progress of Hardware, Software, Training & Mr. Asela De Livera, President of NCCSL, Mr. Channa Education, Communication and Professional. Manoharan, President - SLASSCOM, Mr. Chamindā De Silva, Executive Director –SLASSCOM, Mr. Nishan Mendis, The signing of the MOU was held under the participation Director - SLASSCOM and Mr. Shiraz Lye, Director – of Mr. Deepal Nelson, Deputy President, Mr. Gamini SLASSCOM. Wimasuriya, Honorary Treasurer and Mr. Bandula Dissanayake, Secretary General/CEO of the National Chamber, along with Mr. Aruna Alwis – CEO and Dr. Prasad Samarasinghe, Senior Vice Chairman of FITIS. MOU - NCCSL and Kuwait Chamber of Commerce The signing of a memorandum of understanding was carried out on the 30th of January under the leadership of NCCSL President Mr. Asela de Livera, and Mr. Ali Mohammed Thunayan Al-Ghanim, Chairman of the Kuwait Chamber of Commerce and Industry. The MOU was signed as the initial step towards strengthening trade relations From Left: Mr. Hashantha Abewickrema, FromSriLanka. between the two nations. com Business Development Manager , Mr. Chamika Godamanna, Chairman - NCCSL Information & Communication Technology, Mr. Asela De Livera, President – NCCSL, Mr. Channa Manoharan, President - SLASSCOM SLASSCOM , Mr. Chamindā De Silva, Executive Director –SLASSCOM, Mr. Nishan Mendis, Director - SLASSCOM and Mr. Shiraz Lye, Director - SLASSCOM

The National Chamber of Commerce of Sri Lanka 57 Annual Report 2019/20 Strategic Initiatives

MOU – National Chamber and Sri Lanka Association of Printers (SLAP) The National Chamber of Commerce of Sri Lanka (NCCSL) and The Sri Lanka Association of Printers (SLAP) entered into a Memorandum of Understanding (MOU) in December 2020, to facilitate the promotion of the B2B portal fromSriLanka.com among member companies of SLAP.

The leaders of the organisations, Mr. Peter Deckker, General Secretary SLAP and Mr. Asela De Livera, President of NCCSL, signed the memorandum. Mr. Delan Silva, President of SLAP, and Mr. Chamika Godamanna, Chairman, Information & Communication Technology, NCCSL was also present at the event. From left: Mr. Bandula Dissanayake, Secretary General/ CEO, Mr. Asela de Livera, President- National Chamber, Mr. Anura Warnakulasooriya, President of the Sri Lanka Ceramic and Glass Council and Mr. Hashantha Abewickrema, FromSriLanka.com Business Development Manager. MOU – NCCSL and the National Research Council (NRC) The National Chamber of Commerce of Sri Lanka and the National Research Council (NRC) of Sri Lanka have entered into a memorandum of understanding on 10 December 2020.

Purpose of this MOU is the development of scientific research and technology cooperation directly between the scientific community and the industries, enterprises, Research and Development of market opportunities.

MOU - NCCSL and Sri Lanka Ceramic & Glass Council The National Chamber of Commerce of Sri Lanka entered into a memorandum of understanding with the Sri Lanka Ceramic & Glass Council (SLCGC), which was signed on the 3rd of December 2020 at the National Chamber. The objective of the MoU was to promote the fromsrilanka.com online platform among members of SLCGC.

The MoU was signed with the participation of Mr. Asela de Livera, President - NCCSL, Mr. Chamika Godamanna, Chairman, Information & Communication Technology, Mr. Bandula Dissanayake, and Secretary-General/CEO - NCCSL and Mr. Anura Warnakulasooriya, President of the Sri Lanka Ceramic and Glass Council.

Mr. Asela de Livera – President, National Chamber second from right and Prof. Hemantha Dodampahala, Chairman of National Research Council second from the left exchanging the MOU after signing on 10 December 2020. Mr. Deepal Nelson, Deputy President, National Chamber on the right and Ms Manisha Rajapaksa, Chief Executive Officer, NRC on the left.

58 The National Chamber of Commerce of Sri Lanka Annual Report 2019/20 MOUs - NCCSL and Provincial/District Chambers During the operational year, NCCSL entered into several MoUs with provincial and district chambers. • Ampara District Chamber of Commerce Industry and Agriculture • Chamber of Commerce and Industry of Uva Province • Chamber of Commerce of the Wayamba Province • Chamber of Commerce and Industries of Trincomalee District • Galle District Chamber of Commerce and Industries • Chamber of Provincial Entrepreneurs (COPE)

The memorandums will enable improved economic co- operation through commerce, trade and investment between respective communities. These will further result in the organisation of trade and market research missions, seminars, exhibitions, trade fairs, conferences, symposia, training for SMEs and other promotional activities: in addition to International and National funding opportunities and other methods of trade and promotional activities in each Chamber.

The MOUs are expected to create and maintain an on-going exchange of information about economic developments and other matters affecting the business interests of their members, in addition to ensuring Business Development in these respective regions.

The National Chamber of Commerce of Sri Lanka 59 Annual Report 2019/20 Capital Report

Business Development Programs - SMEs Business Benchmarking – National Business Each year, the National Chamber organises a wide range Excellence Awards of training programs and workshops for the development As the central authority in promoting Sri Lankan industries and benefit of business communities – with emphasis on and businesses, the National Chamber believes that SME development. These programs are the intellectual entrepreneurs and leaders should be challenged and capital of the Chamber, developed upon careful evaluation positively reinforced to think outside of the lines and take of challenges faced by entrepreneurs and professionals in bold steps towards diversifying and taking their brands to developing their businesses. the world. National business benchmarks and standards of excellence compel businesses to adapt and evolve while The Chamber together with relevant Resource Persons, breaking down limitations. ensures that contents of each program is composed clearly and comprehensively to provide a meaningful and With years of experience in developing businesses and productive learning experience. However, in 2020, the trade sectors, the National Chamber holds the experience COVID-19 pandemic became a challenge in organising and expertise to measure success – especially in the areas development programs, especially those that are organised of service excellence, innovation and market growth. on a provincial or regional scale. As a result, programs suspended in 2020 are scheduled for 2021. The Chamber annually conducts two business benchmark programs to measure businesses in diverse industries, The Chamber made arrangements for SMEs and those shedding a spotlight on enterprises and leaders that excel eligible, the opportunity to submit written requests for in service, innovation and overall performance. financial relief, mainly for working capital loans granted by the Government and the Central Bank of Sri Lanka. The One such benchmarking program is the foremost annual Chamber partnered with Ernst & Young in assisting SMEs business award program the National Business Excellence and other businesses in developing proper documentation Awards (NBEA) designed to highlight and commend for submission. outstanding businesses and their leaders. Conducted annually, NBEA honors enterprises based on demonstrated Added to this, the Chamber also provided advisory growth and innovations over industry peers and competing services to members, on managing businesses during businesses. the pandemic. Chamber assisted CMA, the effort also received the support of experts from multiple industries and Enterprises receive recognition and commendation business sectors. for exceptional performance in leadership, corporate governance, capacity building, performance management, Training and Knowledge Sharing Programs global and local market research, CSR, environmental Disseminating information and training programs remains sustainability and financial results. Over 100 awards a a crucial aspect of the Chamber’s services to its members represented to those selected, across the categories of and the wider business community. Such programs are extra-large, large, medium, small and micro-enterprises. conducted to share knowledge and equip professionals with timely and relevant information on areas related to In the operational year, under review, the Chamber trade, organisational functions and industrial performance, postponed the award program due to COVID-19 while educating participants through discussions and regulations. However, NCCSL has scheduled the event for adequate resource material. the following year.

In 2020, challenged by the pandemic, most of our Bilateral Discussions, Strategic Partnerships programs relied on digital technologies such as Zoom, and MOUs which allowed us to conduct several webinars and online The Chamber initiates discussions with corporates, industry workshops. Please refer page 48 for a detailed description leaders, state leaders, diplomatic and foreign officials and of programs conducted in 2020. regional chambers in strengthening trade amongst the Chamber and these respective parties. Over the years, as a result of such discussions, the Chamber entered into several Memorandums of Understanding on areas of strategic importance.

60 The National Chamber of Commerce of Sri Lanka Annual Report 2019/20 In 2020, the Chamber signed several MOUs with industry The forum and its members focus on the following: associations and provincial chambers in enhancing cooperation across the areas of information technology, • Drive financial sustainability in the start-up and micro- commerce, trade and research. The Chamber and enterprise sector. the Kuwait Chamber of Commerce signed a special • Provide professional development through international memorandum of understanding in strengthening bilateral meetings, youth forums and joint projects. trade between the two nations and in fostering cooperation • Create a platform for interaction between young between the two National Chambers. In addition, the leaders, experts and representatives of business and Chamber also signed several MOUs to promote the government, facilitating swift cooperation over a wide Chamber’s B2B web portal ‘fromsrilanka.com’ amongst range of issues. businesses in several industries. Print Communiqué – ‘Voice of Business’ Business Benchmarking – Entrepreneur Magazine Awards, Western Province Voice of Business is the Chamber’s approach to keeping a Another flagship awards program organised by the continuous flow of communication with stakeholders and Chamber is the Entrepreneur Awards - Western Province, the business community. The quarterly publication provides which is a collaborative effort between the Chamber, the information on the Chamber’s programs, workshops, National Enterprise Development Authority (NEDA) and the bilateral meetings and trade discussions, and other events Ministry of Industry and Commerce. The award ceremony of strategic importance. is hosted each year with the participation of a large number of entrepreneurs from the Western Province. The ceremony In addition, it rounds-up quarterly developments of regional marked its 5th year in 2020; however, due to COVID-19 training programs conducted for MSMEs, bilateral and pandemic, the event is now scheduled for February 2021. diplomatic events and discussion with foreign delegations, Entrepreneurs from Micro, Small, Medium and Large partnerships with the business community and regional enterprise sectors and the industries of Manufacturing, chambers. Agriculture, Livestock, Fisheries and Services compete for the program’s top awards. Library Services National Chamber Youth Forum The National Chamber maintains an inclusive collection of updated commercial documents and information sources on The National Chamber recognises the need for preparing export, import, manufacturing, service industry, government our budding entrepreneurs and professionals for the future. policies, regulations, details on tariffs and incentives as well As a result the Chamber initiated the National Chamber as on joint ventures and partnerships. These documents Youth Forum in 2018, which now acts as a professional are essential reference material for our members and any body for grooming future professionals and business external parties, interested in obtaining relevant information. leaders.

The Forum provides a level playing field for young leaders to represent ideas, perspectives and share expertise to improve their skills and capabilities. Programs advocated by the Forum also facilitate young professionals to create and broaden business networks, paving the way for strategic partnerships.

The Youth Forum comprises a team of young entrepreneurs and professionals who come from a cross-section of businesses, trades and industries. Their dedicated work and contributions continue to add value to the growth of the Forum, as they work to transform young professionals to leaders who can drive forward the nation’s economic progress.

The National Chamber of Commerce of Sri Lanka 61 Annual Report 2019/20 Capital Report

Digital Technologies - ‘fromsrilanka. At present over 100 companies have registered through com’ B2B Digital Marketplace the portal. The portal provides a dedicated site to each business, providing digital space to showcase their In 2020, the National Chamber launched the B2B digital products to the world. platform, fromsrilanka.com, connecting Sri Lankan suppliers with buyers from around the world - acting as The portal covers the entire gamut of product and service a gateway in bringing together global buyers and local categories with access to over 900 products and services suppliers through a unified platform. The Chamber works including tea, furniture, coconut, rubber, spices, Ayurveda, in collaboration with the Export Development Board (EDB), apparel, gemstones, software and BPO solutions, to the Ministry of Foreign Affairs and industry associations in name a few. Suppliers across these segments and other actively promoting the portal among member companies, 50 categories can register products and services and as well as individual businesses. increase their prospects in the export markets.

NCCSL plans to gather significant amount of export leads NCCSL is now actively promoting the web portal amongst within the next two years, to develop the country’s export trade associations and its members, as well as amongst sector; with the expectation of a notable difference in individual businesses. The e-commerce platform was creating new opportunities for Sri Lankan products and developed in partnership with Oracle using advanced services in the global market place. performance features and highest protocols in safety. Programmed with a responsive web design, the portal The venture is a tremendous opportunity for SMEs, in functions on both desktop and mobile devices and offers promoting their products and services. Local suppliers are an interactive user experience. now able to register on the website, giving them exposure to broader market opportunities, both locally and globally. The venture benchmarks global e-commerce platforms developed with the long-term goal of increasing Sri Lankan exports to markets across the world.

62 The National Chamber of Commerce of Sri Lanka Annual Report 2019/20 Key Benefits of the Portal The National Chamber has amassed years of expertise and networks in hundreds of industry sectors. Our knowledge of these cross-sections of various industries enabled us to host a significant number of product and service categories, giving a countless number of suppliers a digitized market space to capture new customers.

• Marketplace of the future With digital platforms and e-commerce sites being the first choice of commercial buyers and end-users, digital marketplaces are growing in scale and demand, rapidly. ‘fromsSriLanka.com’ is following this revolutionary shift in digital commerce, giving SMEs and other businesses another stepping stone towards increasing their prospects with foreign and local buyers.

With more and more people opting for online purchases, local suppliers can now expand their reach, with the freedom to display full ranges of products and catalogues. In contrast to a piecemeal approach offered by most e-tail platforms, fromsrilanka.com promotes suppliers and individual businesses, connecting enterprises directly with international buyers.

• Direct communication between suppliers and buyers Buyers can access information of suppliers and their products while initiating direct communications with suppliers in getting the right products at the right price. Most importantly, all suppliers on the marketplace will be recognised suppliers from Micro, Small, Medium and Large Scale enterprises, enhancing the quality of exports, while offering buyers the best of local products and services.

The National Chamber of Commerce of Sri Lanka 63 Annual Report 2019/20 Capital Report Financial Capital

Amidst the repercussions of the pandemic and the after effects of the Easter Sunday attacks, the National Chamber worked resiliently and pragmatically across 2020.

During the Chamber’s financial year, which ended 31st March 2020, the Chamber had accumulated funds worth Rs. 6.5 Mn. Revenue for the period increased to Rs. 23.9 Mn from Rs. 22.8 Mn reported in the previous year. Increase in revenue had favourable impact from an increase in revenue from COOs during the reviewing year.

40

35

30

25

20 Rs. Mn 15

10

5

0 Revenue Other Operating Net Financial Income Income 2020 2019

Other operating income decreased to Rs. 30.8 Mn from Rs. 34.9 Mn in the preceding financial year. Rent income decreased during the year. Net Finance income increased during the year under review, from Rs. 10.6 Mn to Rs. 11.47 Mn.

Total assets increased during the period, standing at Rs. 152 Mn, while Total Liabilities decreased to Rs. 14.5 Mn in the period under review.

Short-term investments increased over the financial period to Rs. 104 Mn, from Rs. 95 Mn in 2019. This was a result of investing in Fixed Deposits and from interest income.

64 The National Chamber of Commerce of Sri Lanka Annual Report 2019/20 National Chamber of Commerce Youth Forum

The National Chamber of Commerce Youth Forum (NCCYF) had its inaugural Annual General Meeting on 30-01-2020. Following were elected as Office Bearers:

1. Mr. Dushinka Nelson, President, 2. Mr. Tumal Karunaratne, Secretary 3. Mr. Rantha Tissera, Hony. Treasurer 4. Mr. Thiran Perera, Deputy President 5. Mr. Yovindu Perera, Asst. Secretary 6. Ms. Ishara Ariyasena, Asst. Treasurer

Immediately thereupon, the NCCYF commenced expanding its membership by inviting members from various industries for the general committee of the NCCYF. However, due to the outbreak of the Covid-19 pandemic and the ensuing Left to right lockdown/curfew that was implemented in Sri Lanka from Mr. Tumal Karunaratne – Secretary, Mr. Dushinka Nelson - March 2020 onwards, the NCCYF was forced to suspend President, Mr. Rantha Tissera - Treasurer of the National Chamber its recruitment drive. Youth Forum

Newly appointed National Chamber Youth Forum Council

The National Chamber of Commerce of Sri Lanka 65 Annual Report 2019/20 MANAGEMENT DISCUSSION The National Chamber has

now become one of the most

sought after and credible sources of knowledge dissemination,“ business training and professional development.

Management Discussion

ECONOMIC PROGRESS AND FOCUS ON Roundup of Global Economic Developments SME DEVELOPMENT and Outlook

2020 was a tumultuous year for the nation, especially AsNew publishedweekly cases, thousands by the World Bank, the COVID-19 pandemic

for those depending on the sustainability of trade and compelled400 the world to focus on remediating its impact on Advanced economies EMDEs economic activities. The rapid spread of the COVID-19 health and economy, protecting vulnerable populations, pandemic brought adverse consequences, creating while300 finding a lasting recovery. Amidst this unprecedented

volatility within the world’s health and financial systems. backdrop,200 the per capita income of countries is expected The crisis resulted in the worst global recession since the to recede, the largest since 1870 – demonstrating the great depression of the 1920s. Likened to the severity of pandemic’s100 negative impact on global economies.

the Spanish flu of 1918, COVID-19 brought devastating 0 results in almost every country, with infected patients rising Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 to 77.4 million and 1.7 million deaths by the third week of December 2020, with the number of recoveries standing at Index, 1870 = 100 Index, 1870 = 100 approximately 44 million. 7,600 1,300 GDP Per capita GDP (RHS) 6,100 1,000

4,600 New weekly cases, thousands 700 New weekly cases, thousands 3,100 400 400 Advanced economies EMDEs Advanced economies EMDEs 400 1,600 300 300 100 100 1871 1901 1931 1961 1991 2021 200 200

Percent 100 100 6 Source: Bolt et al. (2018); Kose,World Sugawara,Advance and economies Terrones EMDEs(2019, 0 0 2020); World Bank Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 3 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Note: 0Data for 2020-21 are forecasts. Shaded areas refer to Index, 1870 = 100 Index, 1870 = 100 Index,global 1870 = 100recessions. Index, 1870 = 100 7,600 1,300 -3 7,600 1,300 GDP Per capita GDP (RHS) Sources:6,100 Our World in Data (database); World Bank. All over-6 the world, substantial downgrades are forecasted, 1,000 GDP Per capita GDP (RHS) 6,100 4,600 reversing-9 years of progress in development goals, while 1,000 Amidst the pandemic, Sri Lanka suffered major economic Feb Mar Apr May 700 compelling4,600 millions into poverty. The effects of the setbacks3,100 and disruptions to social progress. Our economy, pandemic also triggered a significant drop in demand for700 oil 400 3,100 which 1,600teetered on an already volatile environment, now amidstPercent tumbling prices; furthermore, demand for transport- faces a tremendous challenge in recovering our external 400 100 100 related1,6008 commodities suchWorld as rubberAdvance and economies platinum EMDEs has 100 debt position.1871 Nevertheless, 1901 1931 despite 1961 the subdued 1991 reality, 2021 decreased. 80 development projects continue, while temporary measures 4100 100 1871 1901 1931 1961 1991 2021 contributePercent to immediate economic stability. Although years 60 0 6 40 of progress remain challenged,World the spaceAdvance for economies growth and EMDEs Percent -4 the nation’s3 capacity to recover remains optimistic. 20 6 World Advance economies EMDEs -8 0 0 The end of the civil war in 2009 demonstrated the capability 3 2010 2012 2014 2016 2018 2020 2022 of the -3country and our people to recover and revive its 0 industries-6 and businesses; this, provides confidence that the pandemic and its devastation will be overcome, in -3 time to-9 come. This discussion will focus on the strategies Feb Mar Apr May -6 recommended by chief authorities in reviving the economy while also providing a throwback on the economic -9 Feb Mar Apr May indicatorsPercent from 2020. 8 World Advance economies EMDEs 100

80 4 PercentSource: Consensus Economics, World Bank. 60 8 100 0 World Advance economies EMDEs 40 80 -4 4 20 60 -8 0 0 2010 2012 2014 2016 2018 2020 2022 40

-4 20 68 The National Chamber of Commerce of Sri Lanka Annual Report 2019/20 -8 0 2010 2012 2014 2016 2018 2020 2022 New weekly cases, thousands

400 Advanced economies EMDEs

300

200

100

0 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20

Index, 1870 = 100 Index, 1870 = 100

7,600 1,300

GDP Per capita GDP (RHS) 6,100 1,000

According4,600 to World Bank’s 2021 January Global Economic According to CBSL statistics, GDP growth was recorded Prospects, the global economy is expected to expand by700 as -1.7 and -16.3 percent in quarters one and two, 4 per3,100 cent in 2021. Short term policies across the world respectively; before rising to 1.5 in the third quarter. Weak 400 rears1,600 on containing COVID-19 and in effective global activities in manufacturing against the backdrop of the distribution of vaccines. However, projected growth is pandemic crisis and extenuating circumstances such 100 100 below the1871 pre-pandemic 1901 level 1931 and 1961is expected 1991 to remain 2021 as imposed lockdowns, limited movement, closure of subdued. EMDE growth is envisioned to recover to 5 per tourism and airports, and receded global demand impeded centPercent in 2021 reflecting the expected rebound of China’s economic activity, resulting in this decline. economy, however, this is expected to moderate in 2022 6 World Advance economies EMDEs as consumption and investment will continue to bear the Nevertheless, on a broader perspective, the country 3 pandemic’s repercussions. Advanced economies are has transitioned from a rural-based economy to a more anticipated0 to reach a growth of 3.3 per cent in 2021, as urbanised economy, focused on manufacturing and a result of containment measures, widespread vaccination services. The country ranks high in its social indicators -3 and accommodative monetary policies. Furthermore, East amongst South Asian peers and reached an upper-middle- Asia-6 and the Pacific regions are expected to show resilience income status in 2019. However, in July of 2020, the World

in 2021,-9 due to the rebound in China. Bank downgraded the status to a low-middle income Feb Mar Apr May country, as Sri Lanka recorded a per capita income of USD 4,020. Furthermore, the national poverty ratio declined from 15.3 percent in 2006/07 to 4.1 percent in 2016; but despite Percent this, a large segment of the population still survived slightly 8 100 World Advance economies EMDEs above the poverty line, according to World Bank analysis. 80 4 60 The COVID-19 pandemic unleashed a series of economic 0 40 setbacks, thwarting years of economic progress. While the

-4 toll on economic sectors was substantial, a large population 20 of the country experience the socio-economic impact with -8 0 2010 2012 2014 2016 2018 2020 2022 disruption to livelihoods. According to national estimates, approximately 1.9 million belong to daily wage earners with approx. 60 percent employed in the informal category.

Source: World Bank As the government took measures to stabilise foreign exchange outflows by curbing imports at the onset of the Growth in investment is predicted to recover in 2021, pandemic’s spread, the current account deficit narrowed despite progress in digital technology. This rebound is not in the first six months of 2020. This reduction of the deficit expected to help reverse the decline in 2020. is also likely to have counterbalanced the effects of halted tourism and reduced earnings from tea, textiles and The shocks of the pandemic have challenged already remittances. weaker economies, creating a need for short and long-term policies including those that strengthen health services and Tax based revenue declined in the period under review, a ‘targeted stimulus’ initiatives to revive growth. Reforms domino effect of reduced VAT, an increase in registration that reinforce long-term growth are essential. As per World threshold for taxes and import restrictions. The average Bank recommendations, getting money directly to people, budget deficit increased in the first four months of 2020 by support for households, firms and essential services during 24 percent Y-O-Y, with half of the deficit-financed by CBSL. containment periods becomes the focus of countries. The The government debt-to-GDP ratio jumped over 90 percent global financial institution further recommends ‘Global with around 50 percent of the debt denominated in foreign coordination and cooperation’ of initiatives required to currency. slow the spread of the pandemic, to alleviate economic depressions and international support: These provide the Fitch down graded Sri Lanka’s Long-Term Foreign-Currency ideal context to achieve a robust global recovery. Issuer Default Rating (IDR) to ‘CCC’ from ‘B-’. However, the government met its liabilities in 2020 amounting to over National Economic Developments USD 4 Bn, despite the adverse speculation experienced by In 2020, the economy contracted in its growth by 1.6 the economy since the latter part of 2019. percent in the first quarter of 2020. This was subsequent to a 2.3 percent growth rate witnessed in 2019. By quarter three of 2020, the growth declined to 1.5 percent.

The National Chamber of Commerce of Sri Lanka 69 Annual Report 2019/20 Management Discussion

We commend the decision of the government to maintain As per the Ministry of Finance, foreign direct investment tax subsidies introduced after the presidential election which moderated in the first half of 2020 seem promising, in increasing private consumption, investment, and alongside inflows that are expected for Colombo Port disposable income. The accommodative monetary policy of City project in addition to new industrial zone-based the Central Bank is also commendable as it aimed to revive manufacturing projects. A considerable portion of BOI economic activity and accommodate the private sector with approved foreign direct investments worth over USD 5 credit. Policy rates were further reduced in March and April Bn is anticipated, boosted by a supportive business and 2020, considering the impact on the economy due to the investment environment in the country. Several large- pandemic. scale investments are already now afoot, in addition to investments by the World Bank and other international In June, 2020, a repo facility was secured with the development organisations. New York Federal Reserve Bank for USD 1.0 billion as contingency. The Government is scheduled to enter The central bank evaluated syndicated loans, bilateral and currency swap arrangements with China and India. The multilateral avenues of financing amidst concerns in raising currency swap will be for USD 1.5 Bn with the Central Bank finances through international capital market instruments, of China and USD 1 Bn with the Reserve Bank of India. The while maintaining timely commitment to debt obligations swaps are expected to boost the country’s foreign reserves of the government. These were part of a prudent debt and stabilise the local currency. (Sri Lanka Overview, management strategy that took into account the policy Worldbank.Org) environment and domestic liquidity conditions.

Amidst the pandemonium the pandemic enabled the Presently, Government’s efforts are skewed towards self- government to address several structural weaknesses. reliance and focuses on measures that help revive the These include reliance on imports, economically vulnerable economy strongly in 2021, sustaining the momentum in groups, and less focus on domestic production. The 2021 the medium-term. This is already championed by policy budget addressed these weaknesses, proposing measures proposals and stimulus endeavours. It is also a boost to drive a production-based economy with more focus of confidence to see stock market indices improving, on improving agriculture and industry sectors. Such an surpassing pre-COVID levels with considerable activity in initiative is expected to improve domestic supply, enhancing the second half of 2020. the country’s external competitiveness. Prior to the downgrade by Fitch on November 27th Positive Outlook 2020, the Government proposed its budget proposal on In 2020, amidst COVID-19 and immobility, the government 17th November 2020, outlining proposed measures as together with the Central Bank took decisive measures in envisioned within the government’s main policy framework supporting businesses and individuals. These measures – “Vistas of Prosperity and Splendour”. also contributed to stabilising the domestic financial market in 2020. However, it must be noted that the Central Bank Accordingly, the proposal presents a forward-looking approved around Rs. 180 Bn in loans to approx. 62,000 approach in foreign financing and focused on increasing the enterprises, in addition to credit guarantee schemes and share of domestic financing of the budget deficit. Proposed interest subsidies to provide increased credit to MSMEs. measures are weighed towards capitalising on increased (Road Map 2021, CBSL) domestic savings and low interest rate framework that is already in place. The government conveyed that it Exports rebound sooner than anticipated to monthly would take a selective approach in internationally funded averages of pre-COVID times to USD 1 Bn. Curbed non- projects, focusing more on domestic investors. The move is essential imports led to a decline in the trade deficit for envisioned to minimise pressure on reserves and exchange six consecutive months, saving USD 3.3 Bn. in import rate, as per the 2021 Road Map of the Central Bank. expenditure. In addition, remittances and service exports have recovered better than anticipated, having a positive The budget also proposed social welfare schemes aimed impact in reviving the economy. As a result, current account at securing the financial standing of vulnerable groups. deficit has helped lessen the pressure on exchange rate A pension scheme for the public and private sector has and reserves while moderating the current account deficit also been proposed. Further, a National Financial Inclusion to a considerable extent. (Press Release, Ministry of Strategy is scheduled for implementation in 2021. It aims Finance) to elevate the use and accessibility to quality financial products.

70 The National Chamber of Commerce of Sri Lanka Annual Report 2019/20 Discussion on SME Development balance in both demands from the sector and in economic growth. The case of conducting business during a global pandemic such as COVID-19 has compelled businesses, even In resolving the key issue of SME financing, Lines of Credit micro-entrepreneurs, to revisit operational frameworks and development projects for micro, small and medium and processes. In such a challenging and unprecedented enterprises should address unregistered businesses. context, policy schemes should also enable businesses, Providing a finance mechanism that takes credit to the especially MSMEs to stay relevant and operational. No informal MSMEs should be strengthened while reducing other time can be more crucial for readdressing policies in collateral-based lending. Women entrepreneurs should also giving MSMEs easy and uncomplicated access to funding be given increasing prominence and support in taking their while loosening the grip on collateral-based financing to a products and services to the next level. more sustainable and win-win method. Policies should also address SME’s ability to register their businesses through Capacity development and training of Micro and SMEs a friendly and accommodative process. This strategy should be increased to focus on wide reach of SMEs in requires consideration of limitations experienced by most grass-root levels. Training programs that provide targeted micro, small and medium entrepreneurs, especially upon training to business categories and type of product/ evaluating their knowledge of business procedures and service is also important, as this would encourage more regulations, while considering those with limited access to entrepreneurs to obtain skills and enhance abilities in digital technologies and connectivity. numerous areas of interest and talent. While challenges in funding and constraints in accessing SME Development Programs digital technologies remain as key concerns, SMEs also face challenges in competing with large corporations as a In January 2020, the government introduced a special result of limited resources and funds for expansion. SMEs credit support scheme for SMEs for enabling a encounter difficulties in networking with foreign buyers comprehensive recovery in activity in addition to financial and in producing innovations that are demanded by global incentives from the government. Accordingly, borrowers markets. Such limitations restrict SMEs from diversifying can request a grace period for repaying capital, while and appealing to global buyers. Moreover, lack of skills non-performing loans received consideration for availing to effectively manage operations and employees, lack of concessions (CBSL annual report, 2019). technical know-how in export and import, and inability to meet production volumes, further impede the sector- According to the latest Annual Report of CBSL, the Cabinet based growth. When considering trade-related costs, an of Ministers, in March of 2020, approved and allocated accommodative system facilitating cross-border transaction funds for purposes that include Rs. 5 billion for settlement can help reduce unnecessary outlays. Furthermore, policies of payment arrears of SME contractors, Rs. 10 billion in training and development are also central to SME for settling arrears to private institutions on account of development. purchasing of pharmaceuticals; and Rs. 3 billion for settling procurement bills of purchasing of fertiliser. Accommodative policy decisions are vital to sustaining micro and SME enterprises, and in providing self- In more recent developments, the Asian Development sustenance to millions. Frameworks such as the National Bank approved a loan of USD 165 million to small and Export Strategy (2018-2022) were developed to increase medium enterprises (SMEs), adversely impacted by market entry, and absorb SMEs into the export value chain. COVID-19 alongside long-term financing for under-financed Furthermore, the Innovation and Entrepreneurship Strategy SMEs that includes businesses of women entrepreneurs of Sri Lanka (2018-2022) also encompass the objective of and tea smallholders. This provides significant relief to assisting SMEs to strengthen their export competitiveness entrepreneurs of the sector, providing them with the and in encouraging the growth of start-up and micro- necessary momentum to operate businesses amidst the enterprises. uncertainties of the pandemic.

Furthermore, bilateral trade agreements with regional peers Various state and other organisations such as EDB, NCCSL and other nations, allows businesses to flow easily between and SLCSMI organised several workshops to create nations. This can benefit MSMEs by bringing them closer awareness among entrepreneurs and to develop their skills. to global and regional buyers while providing attractive Enhancements commenced under the National Export incentives and benefits that facilitate enterprises to capture Strategy, to transform 2,000 regional SMEs as new export target markets. SMEs should receive the necessary champions, endorsement of women entrepreneurs, the impetus to enter service-oriented businesses, ensuring a “One Village One Product” concept and creation of direct and indirect exporters in the identified regions. Selected

The National Chamber of Commerce of Sri Lanka 71 Annual Report 2019/20 Management Discussion

exporters benefitted from awareness programmes, With the recent pandemic, many small and medium domestic and foreign trade fair visits and technical businesses switched to online sales or delivery service assistance. The EDB selected around 100 proposals by the platforms through third-party service providers. This end of 2019, under the market access support programme demonstrates their ability to operate even in a crisis, designed to support enterprises in expanding their market contributing to continued delivery of essential goods and access through value addition and improved productivity. services to the general public.

In 2019, Vidatha, the technology transfer program which Focusing on state-endorsed efforts that absorb SMEs and seeks to share scientific findings and research innovations large-scale businesses into the digital sphere, the National of scientists to MSMEs in the grass root levels conducted Digital Policy for Sri Lanka (2020-2025) developed along 3028 programmes which benefitted roughly 118,400 with the Information and Communication Technology MSMEs. Several exhibitions organised for Vidatha Agency (ICTA), takes centre stage. According to the policy entrepreneurs in several districts also helped promote framework ‘Digitisation and digitalisation in the private their products. Furthermore, Shilpasena, a symposium sector by large companies, small and medium enterprises developed to instil science and technology, enabled (SMEs) and start-ups, will be key to achieving Sri Lanka’s inventors the chance to showcase their creations. digital vision. Digitally connecting these firms to global value chains and global production networks will be integral to For expanding tech applications, 35 science and Sri Lanka’s success.’ (Source, ICTA.lk). Furthermore, in technology projects across rural communities in 15 2019, the government continued measures in line with the districts: in addition, the cabinet of ministers also approved ‘Sri Lanka Digital Economy Strategy’, aimed at increasing long-term loan facilities for businesses starting up in adoption of digital technology across key sectors of the mechatronics product design and Development, under economy and for improving productivity. (CBSL, Annual the scheme ‘Enterprise Sri Lanka’. The government is in Report, 2019) the initial stages of developing business service centres for MSMEs at the district level, to transfer technology, develop Providing micro, small and medium scale enterprises skills and improve quality, research development and with digital payment solutions enables them to maximise productivity. (Annual Report, CBSL, 2019) business opportunities. This is an essential aspect as it keeps SMEs in-line with modern conveniences expected Growth Through Digital Technology by customers – providing entrepreneurs with a competitive Exposure to innovations and digital technologies bolster advantage. SMEs’ ability to grow in a highly competitive environment. Parallel to the rapid growth of social media users, online National Export Strategy (NES) advertising and mobile applications, online buying has Facilitation of trade and exports has taken many forms, increased, enabling SMEs to reach a wider market, of which the National Export Strategy (NES) remains conveniently. However, we can agree that this exposure a crucial aspect. Initiated in 2018, NES was gradually remains concentrated mostly on urban areas as the full implemented across two years, and was developed based benefits of ICT and digital mediums remain underutilised in on private and public sector collaborations between certain parts of the country. academics, industry leaders, small business owners and public sector representatives, and was formulated to lead First and foremost, private and state sectors should to growth and job opportunities by developing capabilities collaborate in providing data and mobile connectivity of domestic companies in competing in global markets. to remote areas that are still underserved by NES is a detailed roadmap of how export growth can telecommunication services. Connectivity alongside be achieved, swiftly. Moreover, it details improvements reliable ICT hardware and mobile devices will empower needed to increase the contribution of trade in economic SME entrepreneurs to research, market and expand their growth. Most importantly, it is designed to increase SMEs offerings, innovate and invent new diversifications or competitiveness in trade in the regional and EU markets introduce new niche offerings that will appeal to domestic while incorporating the development of export sectors and global markets. MSMEs will receive increased across Sri Lanka. SMEs will receive support in entering opportunities to showcase their products with relatively low exports through simplified bureaucratic procedures and investments, reducing the need to maintain retail stores trade finance solutions, and other targeted assistance. while curbing working capital expenditure.

72 The National Chamber of Commerce of Sri Lanka Annual Report 2019/20 The main theme of the NES is “Sri Lanka An Export Hub Bringing our discussion to a conclusion, we would like Driven by Innovation and Investment” with key focus to highlight the importance of Free Trade Agreements sectors that have been identified as information and (FTAs). Sri Lanka is part of several strategic agreements communication technology, wellness tourism, spices, boat that benefit exporters, SMEs and large-scale businesses building, processed food and beverages, electrical and to maximise business prospects. These include FTAs electronic components. It is vital to reevaluate and redirect such as the Asia-Pacific Trade Agreement (APTA), the the export strategy when the global scenarios are changing. Global System of Trade Preferences (GSTP), Indo-Sri Lanka Free Trade Agreement (ISFTA), Pakistan - Sri Lanka Trade Facilitation Platforms and FTAs Free Trade Agreement (PSFTA), South Asian Free Trade The Sri Lanka Trade Information Portal (TIP) is another Agreement (SAFTA), The Agreement on SAARC Preferential supportive platform that provides an inclusive repository Trading Arrangement (SAPTA) and the Singapore Free of information about export and import trades. In addition, Trade Agreement. These regional multilateral and bilateral it provides all information on cross-border transactions agreements provide ease of trade between respective through a single interactive platform. Developed with nations while offering concessions and preferential support from the World Bank, the portal fulfils a key conditions that enhance trade liberalisation and economic objective of the WTO Trade Facilitation Agreement (FTA). It cooperation between member nations. Portals such as the is also a prime aspect within the national trade policy and TIP provide full and comprehensive details on each Free export promotion strategy. Initiated by the Department of Trade Agreement, for enterprises seeking opportunities in Commerce, the TIP acts as a gateway that gives traders exports and imports. access to regulatory information and procedures, laws, technical standards, commodity classifications and tariffs, procedures for permit applications, licenses, clearance and restrictions in clear and concise instructions. TIP has brought under a single platform all 43 Sri Lankan ministries and government agencies related to trade, including the Department of Commerce, Customs, Department of Foreign Exchange, Department of Import and Export Control, Department of Trade and Investment Policy, Board of Investment, EDB, Finance Ministry, CBSL, Sri Lanka Ports Authority (SLPA), Ministry of Agriculture and the Tea Board amongst many others.

The National Chamber of Commerce of Sri Lanka 73 Annual Report 2019/20 Risk Management

The Chamber has identified key areas of risks, internal and external, and has specified the impacts and responses of each risk area as part of our risk mitigation efforts. These risks are evaluated periodically to

ensure that no major deviations can occur when minimising the impact

of such risks, should they arise in the future. The COVID-19 pandemic compelled us to revisit the scope of our risk management measures, “ to minimise the pandemic’s impact on our operations and develop proactive strategies in facing the effects of any further outbreaks.

As part of our proactive measures, we have taken the Impact initiative to revise certain processes and operational Such risks have the potential to impact Chamber procedures, to ensure that our members and employees operations and functions and impact the effectiveness of remain safe, at all times. our services to members and stakeholders. Such risks could impact every function of the Chamber, including In general, the Chamber oversees main areas of risk and HR, Accounting, Promotional activities and our strategic mitigation mechanisms, to ensure that the interests of exercises. our members, employees and other stakeholders are protected. The period under concern was an apt example Our Response of the need for risk assessments, as COVID-19 compelled Internally implemented risk management actions provide a the Chamber to curtail many of our endeavours, which buffer to the organisation against potential risk exposures. were planned for the operational year. In this regard, the composition of the Council plays an important function in minimising operational risks. Comprising 7 intellectual experts from the corporate sector, all Council Members are well experienced in leading the Internal Risks External Risks Chamber with due diligence and accountability.

In terms of ensuring the proper functioning of HR, recruitment to the Chamber is carried out in a structured manner, by recruiting the right candidates with the right Key Risk Areas mix of skills and qualifications, without bias. As a result, the Internal Risks Chamber operates in the hands of a stable and competent workforce, who are professional and reliable at all times. Operational Risks Training and development, recognition and performance- The National Chamber defines operational risks as the based rewards are also incorporated into the Chamber’s risks that surround the inadequacies or inefficiencies of HRM processes as important tools that enhance the overall operations and internal functions, especially losses that efficiency and confidence of our staff. Further, accounting could arise due to unexpected adverse situations. In controls are done more efficiently and transparently, addition, operational risks are also considered in their ensuring adherence to accounting and regulatory external forms, such as unfavourable regulation changes, standards, as well as best practices. fire and environmental risks and health and safety risks that could impact member institutions and Chamber staff.

74 The National Chamber of Commerce of Sri Lanka Annual Report 2019/20 Technological Risk Interest rate Risk Technological risks entail possible disruptions, which can Interest rate risk is the negative and unexpected shift occur as a result of ICT and technology-related disruptions. of interest rates in the future. Long term and short term Malfunctions in software and hardware infrastructure can investments of the Chamber could be impacted by such be one such risk factor, as well as the inability of users to fluctuations, impacting our finance income. assimilate into new technological systems and programs. Knowledge of operating new technological systems and Impact their functionalities is also vital for the smooth flow of Such an occurrence may have a negative impact on the operations. surplus of the statement of comprehensive income.

Impact Our Responses Any disruption or failures to systems, infrastructure and In buffering the adverse impacts of interest rate changes on applications may harm the operations of the National our investments, we have implemented an internal policy, Chamber and could impede operations of the Chamber which entails the diversion of funds more towards short- with the possibility of financial losses. term investments as a result of current interest rate trends.

Our Responses Liquidity Risk In mitigating ICT and systems-related risks, the Chamber This is associated with the possibility of the Chamber’s has employed employees who are competent in technology inability to dispense adequate cash to meet its obligations, and IT-based functions. IT and security systems and are promptly. continuously updated, to enable the Chamber to operate efficiently. Impact In the event a liquidity crisis, it could affect the Third-party companies or persons with the right experience creditworthiness of the Chamber: This is besides the and expertise to provide timely and effective solutions to impact it could have on the reputation of the National technical issues is also obtained, and training is provided Chamber. to employees who are not fluent in using ICT systems efficiently. Our Responses External Risks In minimising our exposure to such an event, the Chamber ensures that we meet Creditors’ demands by maintaining Financial Risk Management optimum liquidity levels. The Chamber has thus far Financial risks due to volatilities in the macroeconomic demonstrated its ability to meet Creditors’ needs on time. environment can impact the Chamber’s activities. These include Interest Rate Risks and Liquidity Risks. The Chamber’s risk management program has incorporated measures to minimise the potential adverse impacts these could have on our financial performance.

The National Chamber of Commerce of Sri Lanka 75 Annual Report 2019/20

FINANCIAL REPORTS

Increase in revenue had favourable impact from an “ increase in revenue from COOs during the reviewing year. Independent Auditor’s Report

TO THE MEMBERS OF THE NATIONAL Other Information CHAMBER OF COMMERCE OF SRI The Council is responsible for the other information. The other LANKA information comprises the information included in the annual report, but does not include the financial statements and our Report on the Audit of the Financial auditor’s report thereon. Statements Our opinion on the financial statements does not cover the Opinion other information and we do not express any form of assurance conclusion thereon. We have audited the financial statements of The National Chamber of Commerce of Sri Lanka (“the Chamber”), which Responsibilities of Council and Those Charged comprise the statement of financial position as at 31 March with Governance for the Financial Statements 2020, and the statement of income and expenditure, statement of changes in funds and statement of cash flows for the year The Council is responsible for the preparation of financial then ended, and notes to the financial statements, including a statements that give a true and fair view in accordance with summary of significant accounting policies. SLFRS for SME, and for such internal control as council determines is necessary to enable the preparation of financial In our opinion, the accompanying financial statements give a statements that are free from material misstatement, whether true and fair view of the financial position of the Chamber as at due to fraud or error. 31 March 2020, and of its financial performance and its cash In preparing the financial statements, council is responsible for flows for the year then ended in accordance with Sri Lanka assessing the Chamber’s ability to continue as a going concern, Accounting Standard for Small and Medium-Sized Entities disclosing, as applicable, matters related to going concern and (SLFRS for SME). using the going concern basis of accounting unless council either intends to liquidate the Chamber or to cease operations, Basis for Opinion or has no realistic alternative but to do so. We conducted our audit in accordance with Sri Lanka Auditing Those charged with governance are responsible for overseeing Standards (SLAuSs). Our responsibilities under those standards the Chamber’s financial reporting process. are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements 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.

78 The National Chamber of Commerce of Sri Lanka Annual Report 2019/20 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 18 December 2020

The National Chamber of Commerce of Sri Lanka 79 Annual Report 2019/20 Statement of Financial Position

As at 31 March, 2020 2019

Note Rs. Rs.

Assets Non-current assets Property, plant and equipment 2 21,872,452 22,535,814 Intangible assets 3 229,391 250,177 Deferred tax assets 11 337,705 - Total non-current assets 22,439,548 22,785,991

Current assets Trade debtors 4 1,412,611 446,321 Other receivables 5 7,589,154 4,529,601 Short term investments 6 116,324,999 109,597,843 Cash and cash equivalents 7 4,558,689 8,598,154 Total current assets 129,885,453 123,171,919 Total assets 152,325,001 145,957,910

Funds Accumulated fund 137,122,905 130,601,102 Building donation fund 99,632 126,224 Other funds 8 122,841 122,841 Total funds 137,345,378 130,850,167

Non-current liabilities Rent received in advance 9.2 1,707,890 2,250,470 Retirement benefit obligation 10 5,172,130 4,293,564 Deferred tax liabilities 11 - 242,065 Total non-current liabilities 6,880,020 6,786,099

Current liabilities Trade and other payables 12 7,346,154 5,254,850 Rent received in advance 9.1 542,580 612,240 Income tax payable 210,869 2,454,554 Total current liabilities 8,099,603 8,321,644 Total liabilities 14,979,623 15,107,743 Total funds and liabilities 152,325,001 145,957,910

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 Senior Deputy President 18 December 2020 Colombo

80 The National Chamber of Commerce of Sri Lanka Annual Report 2019/20 Statement of Income and Expenditure

For the year ended 31 March, 2020 2019

Note Rs. Rs.

Revenue 13 23,952,593 22,821,549 Other operating income 14 30,790,584 34,961,854 Administrative expenses (39,634,076) (32,183,435) Other operating expenses (18,458,705) (20,192,294) Net finance income 15 11,475,560 10,691,457 Transferred from funds 26,592 26,592 Surplus before tax expense 16 8,152,548 16,125,722 Income tax expense 17 (1,630,745) (3,652,151) Surplus after tax expense 6,521,803 12,473,571

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.

The National Chamber of Commerce of Sri Lanka 81 Annual Report 2019/20 Statement of Changes in Funds

Accumulated Building fund donation fund Other funds Total

Rs. Rs. Rs. Rs.

Balance as at 31 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 31 March 2019 130,601,102 126,224 122,841 130,850,167 Surplus for the year 6,521,803 - - 6,521,803 Transferred to income statement - (26,592) - (26,592) Balance as at 31 March 2020 137,122,905 99,632 122,841 137,345,378

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.

82 The National Chamber of Commerce of Sri Lanka Annual Report 2019/20 Statement of Cash Flows

For the year ended 31 March, 2020 2019

Rs. Rs.

Cash flows from operating activities Surplus before tax expense 8,152,548 16,125,723

Adjustments for; Depreciation 5,311,980 5,135,689 Interest income (11,506,669) (10,730,701) Interest expenses payments 31,109 39,244 Amortisation 20,786 - Provision for retirement benefit obligation 2,139,624 (659,594) Rent received in advance (612,240) (612,240) Provision for bad debts 1,067,060 440,175 Disposal of motor vehicle (50,000) (117,781) Building donation fund and deferred income written back (26,592) (26,592) Operating surplus before working capital changes 4,527,606 9,593,923

Changes in; Trade and other receivables (5,024,161) 1,224,038 Trade and other payables 2,021,644 (1,386,692) Net cash flow generated from operating activities 1,525,088 9,549,050

Gratuity paid (1,261,058) (258,716) Income tax paid (4,454,200) (206,600) Net cash flow generated from operating activities (4,190,170) 9,083,734

Cash flows from investing activities Acquisition of property, plant and equipment (4,648,618) (1,264,992) Disposal of property, plant and equipment 50,000 117,781 Intangible Assets-Refund received - - Net investments in short term deposits (8,392,697) (17,334,026) Interest received 13,173,129 10,315,432 Net cash flow used in Investing activities 181,814 (8,165,805)

Cash flows from financing activities Interest expenses payments (31,109) (39,244) Net cash flow generated from financing activities (31,109) (39,244)

Net (decrease)/ increase in cash and cash equivalents (4,039,465) 760,904 Cash and cash equivalents at the beginning of the year 8,598,154 7,837,250 Cash and cash equivalents at the end of the year (Note 07) 4,558,689 8,598,154

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.

The National Chamber of Commerce of Sri Lanka 83 Annual Report 2019/20 Accounting Policies

1. Accounting policies The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are 1.1 Reporting entity recognised in the period in which the estimates are revised if The National Chamber of Commerce of Sri Lanka (“the the revision affects only the financial year or in the period of the Chamber”) is a Guarantee Limited Company incorporated under revision and future periods if the revision affects both current the Companies Ordinance No. 52 of 1938 as ‘Ceylon National and future financial years. Chamber of Commerce’ on 3rd November 1955, amended by Act No. 15 of 1964 as The National Chamber of Commerce of 1.3 Significant accounting policies Sri Lanka on 5th June 1974 and re-registered under the New The accounting policies set out below have been applied Companies Act No. 07 of 2007 and domiciled in Sri Lanka. consistently to all periods presented in these financial statements. The registered office of the Chamber is located at No. 450, DR Wijewardena Mawatha, Colombo 10. (a) Property, plant and equipment

The members of the Chamber have guaranteed that, in the event (i) Recognition and measurement if the Chamber been wound up, they will be contributing to the Items of property, plant and equipment are measured at cost assets of the Chamber, an amount not exceeding Rs.100/-. less accumulated depreciation and accumulated impairment losses. Principal activities Cost includes expenditure that is directly attributable to the The principal activity of the Chamber is to promote and protect acquisition of the asset and bringing the assets to their working the trade, commerce, industries, agriculture, manufactures, condition. transport, financing, banking, insurance and shipping in which Sri Lanka nationals are engaged or interested, and to represent Expenditure incurred to replace a component of an item of and express on these questions the opinion of those interested. property, plant and equipment that is accounted for separately, 1.2 Basis of preparation is capitalised with the carrying amount of the component being written off. Other subsequent expenditure is capitalised only (a) Statement of compliance when it increases the future economic benefits embodied in the The financial statements have been prepared in accordance item of property, plant and equipment. All other expenditure is with Sri Lanka Accounting Standard for Small and Medium recognised in the income statement as an expense as incurred. Sized Entities (SLFRS for SMEs) issued by Institute of Chartered Expenditure incurred for the purpose of acquiring, extending or Accountants of Sri Lanka. improving assets of a permanent nature by means of which to carry on the business or to increase the earning capacity of the (b) Basis of measurement business has been treated as capital expenditure. The financial statements have been prepared on the historical cost basis. Gains/losses on disposal of property, plant and equipment are determined by comparing the proceeds from disposal with (c) Functional and presentation currency the carrying amount of property, plant and equipment and are These financial statements are presented in Sri Lankan Rupees, recognised net within “other operating income” in the statement which is the Chamber’s functional currency. of income and expenditure.

(d) Use of estimates and judgments (ii) Subsequent cost The preparation of financial statements in conformity with The cost of replacing a part of an item of property, plant and Sri Lanka Accounting Standard for Small and Medium- equipment is recognised in the carrying amount of the item sized Entities (SLFRS for SMEs) requires management to if it is probable that the future economic benefits embodied make judgment, estimates and assumptions that affect the within the part will flow to the Chamber and its cost can be application of accounting policies and reported amounts of measured reliably. The carrying amount of the replaced part is assets, liabilities, income and expenses. The estimates and derecognised. The cost of the day-to-day servicing of property, associated assumptions are based on historical experience and plant and equipment are recognised in statement of income and various other factors that are believed to be reasonable under expenditure and statement of changes in funds as incurred. the circumstances, the result of which form the basis of making the judgment about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.

84 The National Chamber of Commerce of Sri Lanka Annual Report 2019/20 (iii) Depreciation (e) Employee benefits Depreciation is recognised in the statement of income and (i) Defined Contribution Plans expenditure on a straight-line basis over the estimated useful Obligations to defined contribution plans are recognised as an lives of the asset. expense in the income statement as incurred. The Chamber contributes 12% and 3% of gross emoluments of employees as The estimated useful lives are as follows: Provident Fund and Trust Fund contribution respectively. Years (i) Defined benefit plan Building 04 Gratuity is a defined benefit plan. The Chamber is liable to Computers and printers 04 pay gratuity in terms of the relevant statute. In order to meet Furniture and fittings 10 this liability, a provision is carried forward in the statement of Office equipment 10 financial position, equivalent to an amount calculated based on Library equipment 10 a half month’s salary of the last month of the financial year of Neon name board 05 all employees for each completed year of service, commencing Motor vehicles 04 from the first date of service.

Provision has been made for retirement gratuity from the first Depreciation of an asset begins when it is available for use and year of service of all employees in conformity with SLFRS for ceases at the date that the assets is derecognised. SMEs - Employee Benefits. However according to the Payment (b) Trade and other receivables of Gratuity Act No.12 of 1983, the liability arises only on completion of five years of continued service. The liability is not At the end of each reporting period, the carrying amounts of externally funded nor is it actuarially valued. trade and other receivables are reviewed to determine whether there is any objective evidence that the amounts are not (f) Revenue recognition recoverable. If so, an impairment loss is recognised immediately Subscription from members are recognised as revenue within in profit or loss. the financial year of receipts. Fees on seminars and other events (c) Short term investments are recognised as revenue on completion of such activity. Other income is recognised on accrual basis. Revenue from rendering Investments in fixed deposits are measured at amortised cost services is measured at the fair value of the consideration using the effective interest rate method. received and to the extent that it is probable that the economic benefits will flow to the Chamber and the revenue can be reliably (d) Cash and cash equivalents measured reliably. Cash and cash equivalents comprise of cash in hand, deposits held at call with the bank and investments in money market Interest income is recognised as interest accrues, taking into instruments with a maturity period less than 3 months. account the effective interest rate (EIR) of the investments.

For the purpose of the statement of cash flow, cash and cash (g) Expenditure equivalents comprise cash in hand, deposits held at call with Expenses are recognised in the statement of income and bank, and investments in money market instruments, net of expenditure on the basis of a direct association between the bank overdrafts. In the statement of financial position, bank cost incurred and the earning of specific items of income. All overdrafts are included in current liabilities. expenditure incurred in the running of the business and in maintaining the property, plant and equipment in a state of Cash flow statement efficiency has been charged to income statement. Statement of cash flows has been prepared using the indirect method. For the purpose of presentation of the statement 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.

The National Chamber of Commerce of Sri Lanka 85 Annual Report 2019/20 Accounting Policies

(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 recognised 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 recognised as an asset in the financial statements.

(ii) Deferred taxation Deferred tax is recognised 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.

Deferred tax is measured at the tax rates that are expected to apply to the temporary differences when they reverse, based on the laws that have been enacted or substantially enacted at the year-end date.

A deferred tax asset is recognised to the extent that it is probable that future taxable profits will be available against which the temporary differences can be utilised. Deferred tax assets are reviewed at each year end date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised.

(i) Events occurring after the reporting date There were no material events that occurred after the reporting date which require adjustments to or disclosures in the financial statements.

(j) Commitments and contingencies Contingencies are possible assets or obligations that arise from a past event and would be confirmed only on the occurrence or non-occurrence of uncertain future events, which are beyond the Chamber’s control.

86 The National Chamber of Commerce of Sri Lanka Annual Report 2019/20 Notes to the Financial Statements

2. Property, plant and equipment Balance as at Additions Disposals Balance as at 31.03.2019 during the year during the year 31.03.2020

Rs. Rs. Rs. Rs.

Building and land 68,905,601 4,067,493 - 72,973,094 Computers and printers 2,930,593 32,200 - 2,962,793 Furniture and fittings 2,065,387 110,930 - 2,176,317 Office equipment 2,845,007 437,995 - 3,283,002 Library equipment 11,050 - - 11,050 Neon name board 103,300 - - 103,300 Motor vehicle 8,124,769 - (203,957) 7,920,812 84,985,707 4,648,618 (203,957) 89,430,368

Balance as at Charge for Disposals Balance as at Accumulated depreciation 31.03.2019 the year during the year 31.03.2020

Rs. Rs. Rs. Rs.

Building 48,125,400 4,827,696 - 52,953,096 Computers and printers 2,773,370 82,728 - 2,856,098 Furniture and fittings 1,761,307 115,032 - 1,876,339 Office equipment 1,888,159 174,036 - 2,062,195 Library equipment 11,050 - - 11,050 Neon name board 103,300 - - 103,300 Motor vehicle 7,787,307 112,488 (203,957) 7,695,838 62,449,893 5,311,980 (203,957) 67,557,916 Carrying amount 22,535,814 21,872,452

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 characteristics 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 recognised as an operating lease in the books of account of the Chamber.

3. Intangible assets As at 31st March, 2020 2019

Rs. Rs.

Acquisition cost 270,963 270,963 Amortisation (Note 3.1) (41,572) (20,786) Balance as at the end of the year 229,391 250,177

3.1 Amortisation As at 31st March, 2020 2019

Rs. Rs.

Balance at the beginning of the year 20,786 62,415 Depreciation on disposal - (70,275) Charge for the year 20,786 28,646 Balance at the end of the year 41,572 20,786

The National Chamber of Commerce of Sri Lanka 87 Annual Report 2019/20 Notes to the Financial Statements

4. Trade debtors As at 31st March, 2020 2019

Rs. Rs.

Trade debtors 3,231,034 1,964,838 Provision for doubtful debts (Note 4.1) (1,818,423) (1,518,517) 1,412,611 446,321

4.1 Provision for doubtful debts As at 31st March, 2020 2019

Rs. Rs.

Balance as at the beginning 1,518,517 2,751,444 Provision for the year 1,067,060 440,175 Written off during the year (767,154) (1,673,102) Balance as at the end 1,818,423 1,518,517

5. Other receivables As at 31st March, 2020 2019

Rs. Rs.

Advances and deposits 939,957 991,411 Prepayments 336,546 248,548 Staff loan receivable 8,510 8,510 WHT receivable 332,876 332,876 Other receivables 5,325,184 2,258,350 Ceylon Shipping Lines 646,081 689,906 7,589,154 4,529,601

6. Short term investments As at 31st March, 2020 2019

Rs. Rs.

Fixed deposits 104,330,608 95,936,992 Interest receivable 11,994,391 13,660,851 116,324,999 109,597,843

7. Cash and cash equivalents As at 31st March, 2020 2019

Rs. Rs.

Cash in hand 65,000 40,000 Cash at bank 4,493,689 8,558,154 4,558,689 8,598,154

8. Other funds As at 31st March, 2020 2019

Rs. Rs.

CSR project 122,841 122,841 122,841 122,841

88 The National Chamber of Commerce of Sri Lanka Annual Report 2019/20 9. Rent received in advance As at 31st March, 2020 2019

Rs. Rs.

Balance as at the beginning 2,862,710 3,474,950 Transfer to statement of income and expenditure (542,580) (612,240) Balance as at the end 2,250,470 2,862,710

9.1 Amount payable within one year 542,580 612,240 9.2 Amount payable after one year 1,707,890 2,250,470 2,250,470 3,474,950

10. Retirement benefit obligation As at 31st March, 2020 2019

Rs. Rs.

Balance as at the beginning 4,293,564 5,211,874 Provision made during the year 2,139,624 (659,594) Payments made during the year (1,261,058) (258,716) Balance as at the end 5,172,130 4,293,564

11. Deferred tax (assets)/liabilities As at 31st March, 2020 2019

Rs. Rs.

Balance as at the beginning 242,065 (494,796) (Reversal) / originating of temporary differences (579,770) 736,861 Balance as at the end (337,705) 242,065

11.1 Composition of temporary differences As at 31st March, 2020 2019

Rs. Rs.

Property, plant and equipment 4,578,372 7,541,121 Defined benefit obligation (5,172,130) (4,293,564) Trade debtor (1,818,423) (1,518,517) Total taxable temporary difference (2,412,181) 1,729,040 Tax rate 14% 14%

Deferred tax (assets) / liabilities (337,705) 242,065

12. Trade and other payables As at 31st March, 2020 2019

Rs. Rs.

Accrued expenses 4,245,998 3,212,342 Retention payable 179,832 179,832 Other payables 2,920,324 1,704,894 VAT payable - 157,782 7,346,154 5,254,850

The National Chamber of Commerce of Sri Lanka 89 Annual Report 2019/20 Notes to the Financial Statements

13. Revenue For the year ended 31 March, 2020 2019

Rs. Rs.

Members' subscription 8,830,210 8,787,061 Certificate of origin 13,509,147 12,662,290 Admission fees 319,864 274,508 Miscellaneous documents 1,293,372 1,097,690 23,952,593 22,821,549

14. Other operating income For the year ended 31 March, 2020 2019

Rs. Rs.

Income from National Business Excellence Award programme 13,729,800 12,261,346 Rent income 752,041 2,066,004 BLT-Meetings 172,279 161,978 Secretarial service 2,783,810 2,312,804 Regional seminars 1,120,714 1,045,397 Ayurveda exhibition 5,635,491 8,963,920 Seminar income 1,764,731 3,742,103 NCCSL- news letter 421,995 366,581 AGM Sponsorship fees & Banners 1,645,000 538,000 Hire of auditorium 999,295 913,123 Sale of M/Directory 1,000 5,963 SME- M/subscription 35,807 33,185 SME Income - 1,023 Library Income 35,611 - AGM Dinner fees 22,500 18,000 NEDA Awards 870,383 1,172,208 Photocopy Income 127 324 Regional seminar-PABC 161,765 323,529 Regional Seminar-Sampath Bank 588,235 833,333 Profit-Intex South Asia Exhibit - 85,252 Disposal of property, plant and equipment 50,000 117,781 30,790,584 34,961,854

15. Net finance income For the year ended 31 March, 2020 2019

Rs. Rs.

Finance income -Interest on fixed deposits 11,506,669 10,730,701 Total finance income 11,506,669 10,730,701

Finance cost -Bank charges 31,109 39,244 Total finance cost 31,109 39,244 Net finance income 11,475,560 10,691,457

90 The National Chamber of Commerce of Sri Lanka Annual Report 2019/20 16. Surplus before tax expense Surplus from operations is stated after charging all expenses including the followings:

For the year ended 31 March, 2020 2019

Rs. Rs.

Auditors' remuneration 310,000 300,000 Depreciation on property, plant and equipment 5,311,980 5,135,689 Provision for bad and doubtful debts and bad debts written off 1,818,423 1,518,517 Staff cost 19,736,126 16,707,859

17. Income tax expense The Chamber is liable for income tax under the Inland Revenue Act No. 24 of 2017 and its amendments thereto.

For the year ended 31 March, 2020 2019

Rs. Rs.

Tax on profit for the year (Note 17.1) 2,210,515 2,915,290 2,210,515 2,915,290 Deferred tax (reversal) / originating during the year (Note 11) (579,770) 736,861 1,630,745 3,652,151

17.1 Tax reconciliation For the year ended 31 March, 2020 2019

Rs. Rs.

Business income 4,282,727 16,007,868 Investment income 11,506,669 10,730,701 Assessable income 15,789,396 26,738,569

Less: Qualifying payments - -

Taxable Income 15,789,396 26,738,569 Tax @ 14% 2,210,515 3,743,400

Less: Tax credits WHT credits (44,467) (433,479) Self assessment payments (2,013,676) - Refunds - (394,631) Current tax (recoverable)/ payable for the year 152,372 2,915,290

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.

Short term employee benefits Nil Nil

18.2. Transactions with related parties There were no related party transactions during the year.

The National Chamber of Commerce of Sri Lanka 91 Annual Report 2019/20 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:

For the year ended 31 March, 2020 2019

Rs. Rs.

Payable within one year 275,000 275,000 Payable later than 1 year and not later than 5 years 275,000 550,000 550,000 825,000

20. Contingent liabilities There were 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. Impact of COVID 19 The Chamber understands the importance of the safety measures implemented by world leaders and implemented all the precautionary measures advised. We are aware of the unpredictable nature of the current situation of the country and the globe, therefore the Chamber wishes to further observe the impacts and take proactive measures to ensure the smooth functioning of the Chamber. While, abiding by the health guidelines to ensure health and safety.

23. Approval of financial statements These financial statements were approved by the Council and authorised for issue on 18 December 2020.

92 The National Chamber of Commerce of Sri Lanka Annual Report 2019/20

National Chamber Members List “

Asha Agencies Limited Asia Asset Finance PLC A Asia Capital PLC A Baur & Co. (Pvt) Ltd. Asia Teas (Pvt) Ltd. A S Agri Exports (Pvt) Ltd. Asia Tyre Importers Association A T Cooray (Pvt) Ltd. Asian Finance Limited A.F. Jones Exporters Ceylon (Private) Limited Asiri Hospital Holdings PLC A.P.S. Knitters (Pvt) Ltd. Asiri Surgical Hospitals PLC

AB Securitas (Private) Limited Associated Motorways (Private) Limited

ABC Freight Services (Pvt) Ltd. Atlas Logistics Lanka (Pvt) Ltd. ABC Shipping (Private) Limited. Authorised Money Changers Association of Sri Lanka ABC Trade and Investments (Pvt) Ltd. Avant Premiere“ (Pvt) Ltd. Abdul Jabbar & Sons Aysha Hospitals (Private) Limited - New Delmon Hospital Abidally Sons (Pvt) Ltd. Access Engineering PLC Access International (Pvt) Ltd. B Access Natural Water (Pvt) Ltd. B C C Lanka Limited Adamexpo 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 Soil (Pvt) Ltd. Bank of Ceylon Aitken Spence Shipping Limited Barik Enterprises (Pvt) Ltd. Aitken Spence Travels (Pvt) Ltd. Bartleet & Company (Private) Ltd. Akbar Brothers (Pvt) Ltd. Batticaloa Chamber of Commerce & Industry Aklan International (Pvt) Ltd. Batticaloa District Chamber of Commerce, Industry and Al Ruby Travels Trading and Marketing (Pvt) Ltd. Agriculture Al-Aman World Capital Centre Limited Beam Hela Osu Lanka (Pvt) Ltd. Albert Edirisinghe Opticians Ltd. Beauty Gems Alcobronz (Pvt) Ltd. Beauty Products Lanka (Pvt) Ltd. Alcobronz Engineering (Pvt) Ltd. BELA International (Private) Limited Ali Brothers (Private) Ltd. Belcon Ark Limited Ally Weerasinghe (Pvt) Ltd. Bellose Lanka (Pvt) Ltd. American Education Centre Ltd. Benham International (Pvt) Ltd. AMI Hardware (Pvt) Ltd. Best Food Marketing (Pvt) Ltd. Aminra Collections (Pvt) Ltd. Bing Bing International Trading (Pvt) Ltd. Ananda Constructions (Pvt) Ltd. BioNutri International (Pvt) Limited Anbu Brothers (Pvt) Ltd. Black Tea Exports (Pvt) Ltd. Andaradeniya Estate (Pvt) Ltd Blue Chip SL Pvt Ltd. Andry Aluminium Industry (Pvt) Ltd. Blue Chip Technical Services (Pvt) Ltd. Ansell Textiles Lanka (Pvt) Ltd. Blue Diamonds Jewellery Worldwide PLC Ansen Agriculture (Pvt) Ltd. Blue Ocean Residencies (Pvt) Ltd. Anura Trading House Borneo General Trading (Pvt) Ltd. Anverally & Sons (Pvt) Limited Brandix Apparel Soluttions Limited AP Lanka (Pvt) Ltd. Bristol Lanka Technologies (Pvt) Ltd. Apeiron Lanka (Pvt) Ltd. Brown and Company PLC Apeksha IVF & Research Center (Pvt) Ltd. BTL Lanka (Pvt) Ltd. Arab Lanka International (Pvt) Ltd. Buddhi Industries (Pvt) Ltd. Arab Travels and Tours Built-Mech Services (Pvt) Ltd. Arch-Triad Consultants (Pvt) Ltd. Bureau Veritas Consumer Products Services Lanka (Pvt) Ltd. ARMZ Exports & Imports Bureau Veritas Lanka (Pvt) Limited Aroma Natural Rubber (Pvt) Ltd. Business Development Cooperative Society Aroma Rubber Manufactures

The National Chamber of Commerce of Sri Lanka 93 Annual Report 2019/20

National Chamber Members List “

Colonial Motors (Ceylon) Limited. Colour Coatings Lanka Trading (Pvt) Ltd. C Commercial Bank of Ceylon PLC C.W. Mackie PLC Consulting Engineers & Contractors (Pvt) Ltd. Calico (Pvt) Ltd. Cot Lanka Agro (Pvt) Ltd. Candy Garments Ltd. Cotecna Lanka (Private) Limited.

Canro Exporters Cotton Club (Pvt) Ltd.

Capital TRUST Holdings Limited Country Style Foods (Pvt) Limited Cargills (Ceylon) PLC Creative Technology Solutions (Pvt) Ltd. Cargoserv Shipping Ltd. Crescent International“ (Pvt) Ltd. Carnival World Ko Lanka (Pvt) Ltd. CT Holdings PLC Carson Cumberbatch PLC Ceat Kelani International Tyres (Pvt) Ltd. Ceilan Coir Products Export (Private) Limited D Cellcity Lanka (Pvt) Ltd. D Peiris & Co. (Pvt) Ltd. Central Hospital Limited Dag Groupage Services Pvt Ltd. Ceramica Bathrooms (Pvt) Ltd. Damam K International (Private) Limited Ceyem Commodities (Pvt) Ltd. Dankotuwa Porcelain PLC Ceyko Projects (Pvt) Ltd. Darley Butler & Co. Ltd. Ceylinco Insurance PLC Daya Group (Pvt) Ltd. Ceylon Agro Industries Limited Deensons Ceylon Association of Shipping Agents (CASA) Dellogistics (Pvt) Ltd. Ceylon Biscuits Limited Delmege Forsyth & Co. Ltd. Ceylon Carriers (Pvt) Ltd. Delmege Insurance Brokers (Pvt) Ltd. Ceylon Chain Manufacturing (Pvt) Ltd. Delmo Chicken & Agro (Pvt) Ltd. Ceylon Essence and Beverage Company (Pvt) Ltd. Delshan Enterprise Lanka (Pvt) Ltd. Ceylon Fertilizer Company Limited Devi Trading Company Ceylon Fishing Industries Limited Dexter International Ceylon Grain Elevators PLC DFCC Bank PLC Ceylon Leather Products PLC Dhanusha Marine Lanka Exports (Pvt) Ltd. Ceylon Machine Twisted Fibre Industries Dharmasiri Tyre House (Pvt) Ltd. M/s Ceylon Rubber Industries Ltd. Dicanda (Pvt) Ltd. Ceylon Shipping Corporation Ltd. DIENGE Ceylon Shipping Lines Ltd. Diesel & Motor Engineering PLC Ceylon Steel Corporation Limited Dikkande Plantations (Pvt) Ltd. CF Lanka Microfinance Company Dilarshad Enterprise Chamber of Commerce of Kinniya Dip Products Katuwawala (Pvt) Ltd. Champion Thread Manufacturing Company Double N. N. F (Pvt) Ltd. Chatham House (Pvt) Ltd. Douglas & Sons (Pvt) Ltd. Chemanex PLC Dowell International (Pvt) Ltd.

CIC Feeds (Pvt) Ltd. DPJ Holdings

CIC Holdings PLC Dreamron Lanka (Pvt) Limited Citizens Development Business Finance PLC Durtek Lanka“ (Pvt) Ltd. City Housing and Real Estate Company PLC Dynamic Technologies (Pvt) Ltd. Classic Teas (Pvt) Ltd. Claudia International Lanka (Pvt) Ltd. Clutch Automation Private Limited CMC Engineering Export GmbH E Coba Peat Lanka (Pvt) Ltd. E.G. Adamaly & Co. Ltd. Coconut Growers Association of Sri Lanka Eamel Exports Ltd. Coir De Lanka Exports (Pvt)Ltd. East Lanka Engineering (Pvt) Ltd. Colombo Dockyard PLC (PQ 50) Eastern & Allied Agencies Ltd. Colombo Engineering Enterprises Eastern Merchants PLC Eastern Produce Exports

94 The National Chamber of Commerce of Sri Lanka Annual Report 2019/20 Edna Chocolates Ceylon (Private) Limited Globalax (Pte) Ltd. Edwin’s Studio & Colour Laboratories (Pvt) Ltd. Gnanam Imports (Pvt) Ltd. Electro Metal Pressings (Pvt) Limited Godrej Household Products Lanka (Pvt) Ltd. Elegance Plastic & Engineering Services (Pvt) Ltd. Gold Coin Feedmills (Lanka) Ltd. Emerald International (Pvt) Ltd. GP Enterprises (Pvt) Ltd. EML Consultants (Pvt) Limited Graphic Systems (Pvt) Ltd.

Empire Teas (Pvt) Ltd. Green Agro Lanka (Pvt) Ltd.

Ernst & Young Green Soils (Pvt) Ltd. ESNA Allied Enterprises (Pvt) Ltd. Green View International (Pvt) Ltd. Essajee Carimjee Insurance Brokers (Pvt) Ltd GSH City Hotel“ 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. Global Leasing Ltd Informatics (Private) Limited

The National Chamber of Commerce of Sri Lanka 95 Annual Report 2019/20

National Chamber Members List “

Inter Tea (Private) Ltd. International Book House International College of Business & Technology Ltd. L International Construction Consortium (Pvt) Ltd. L.B.Spices Trading (Pvt) Ltd. International Foodstuff Company (Pvt) Ltd. Lak Arcade (Pvt) Ltd. Intertek Lanka (Pvt) Ltd. Laksiri International Freight Forwarders (Pvt) Ltd. Intervest Engineering & Construction (Private) Limited Lallans Sports Goods Manufacturers (Pvt) Ltd. Isabella (Private) Limited Lan Management Development Services (Pvt) Ltd.

Island Products (Pvt) Ltd. Lanka Agro Processing (Pvt) Ltd.

Islandwide Marketing Services (Pvt) Ltd. Lanka Ashok Leyland PLC Lanka Canneries (Pvt) Ltd. Itech Tours“ & Travels (Pvt) Ltd. IWS Holdings (Pvt) Limited Lanka Ceramic PLC Lanka Coconut Associates Lanka Harness Co. (Pvt) Ltd. J Lanka Industrial Estates Ltd. (LINDEL) Lanka IOC PLC J B Enterprises (Pvt) Ltd. Lanka Motor Spare Parts Dealers Association J R Enterprises Lanka Polymers (Pvt) Ltd. J S Enterprises Lanka (Pvt) Ltd. Lanka Salt Ltd. J S W Apparels (Pvt) Ltd. Lanka Serenities (Pvt) Ltd. J.B.Fishing Industries (Pvt) Ltd. Lanka Special Steels Limited Jafferjee Brothers Lanka Tiles PLC Janashakthi Insurance PLC Lanka Trust Investments Ltd. Janatha Steels Lanka Walltiles PLC JanRich Foods Limited Lanka World Link Chem (Pvt) Ltd. JAS Active Wear (Pvt) Ltd. LAUGFS Holdings Ltd. Jay Jay Mills Lanka (Pvt) Ltd. Laxapana Batteries PLC Jayes Trading Company Leader Travels & Tours (Pvt) Ltd. JCJ Lanka Import & Export (Pvt) Ltd. Leaf d (Private) Limited Jetmo Steel Rolling Private Limited Leela Exports & Imports Jetwing Travels (Private) Limited Leema Creations Private Limited JK Import and Export Co. (Pvt) Ltd. Le-Ferne Laboratories (Pvt) Ltd. John Keells PLC Liberty Cinemas Ltd. JR International (Pvt) Ltd.

Liberty Plaza Management Corporation Condominium Juelstox International (Pvt) Co. Ltd.

Lightning Protection Systems Lanka (Pvt) Ltd. Julius and Creasy Logiexpo International Jupiter Group“ LOLC Holdings PLC Just In Time Holdings (Pvt) Ltd.

Lotus Lanka Private Limited

Lumbini Aquaria Wayamba Limited Lumbini Tea Factory (Pvt) Ltd. K Luxe Asia (Pvt)“ Ltd. K T J Kumara & Brothers (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. Kish International (Pvt) Ltd. M I T Property Trading (Private) Ltd. Koolair (Pvt) Limited M M Organisation (Pvt) Ltd. Koshiba Credit (Pvt) Ltd. M M Salgado & Sons Ltd. Kotmale Holdings PLC M N Sugathadasa & Co. Kundanmals Limited M S Samsudeen Lebbe Kusumsiri Motor Traders M. C. Abdul Rahim & Bros (Pvt) Ltd.

96 The National Chamber of Commerce of Sri Lanka Annual Report 2019/20 M. Samson Silva & Co. (Private) Limited Naturub Exports International (Pvt) Ltd. MAC Holdings (Pvt) Ltd. Navara Capital Partners Limited Macksons Paint Industries (Pvt) Ltd. Nawaloka Construction Company (Pvt) Ltd. Mackwoods Group Nawaloka Hospitals PLC Madampe Mills (Pvt) Ltd. Nawaloka Polysacks (Pvt) Ltd. Maga Engineering Private Limited Nelna Farm (Pvt) Ltd. Malba Ropes (Pte) Ltd. Nestle Lanka PLC Malco Engineering (Pvt) Ltd. New Anthoney’s Farms (Pvt) Ltd. Maliban Biscuit Manufactories (Pvt) Ltd. New Kuvenitex (Pvt) Limited Malship (Ceylon) Limited New Lanka Caterers Maltras International (Pvt) Ltd. New Ranjith Industries Manisha (Pvt) Ltd. New Universe Group of Companies Mansel (Ceylon) (Private) Ltd. Nicklaashan Enterprises Marine Transport Services (Pvt) Ltd. Nihal Apparels (Pvt) Ltd. Markss HLC (Pvt) Ltd. Nilkamal Eswaran Plastics (Pvt) Ltd. Marlbo Trading Company Nine Capital (Pvt) Ltd. MAS Innovation (Pvt) Ltd. Ninehearts (Pte) Ltd. Mascons (Pvt) Limited Ninehearts Imaging (Pvt) Ltd. Maxies & Company (Pvt) Ltd. Ninewells Care Mother & Baby Hospital (Pvt) Ltd. McLarens Logistics Ltd. Nippon Maruchi Lanka Electronics (Pvt) Ltd.

Meezan & Company (Pvt) Ltd. Nippon Paint Lanka (Pvt) Limited

Mega Products Limited NL Associate Mehaa International (Pvt) Limited NOLIMIT Melwire Rolling (Pvt) Ltd. Noorani Estates“ (Pvt) Ltd. Merbok MDF Lanka (Pvt) Ltd. Noritake Lanka Porcelain (Pvt) Ltd. Mercantile Merchant Bank Limited Merchant Bank of Sri Lanka PLC Mercury Print (Pvt) Ltd. O Metropolitan Group of Companies Oasis Hospital (Pvt) Ltd. Miami Exports (Pvt) Ltd. Ocean Blue Services (Pvt) Ltd. Michael White & Co. (Pvt) Ltd. Oceanway (Pvt) Ltd., Travels & Tours Micro Cars Limited ODEL PLC Microtech Networks (Pvt) Ltd. Olive Stone (Pvt) Ltd. Midaya Ceramic Co Private Limited Omega Traders Midaya Packaging Industries (Pvt) Ltd. Onesh Agri (Pvt) Ltd. Mike Flora (Private) Ltd. Onesh Trading (Pvt) Ltd. Milco (Private) Ltd. Orchid Lanka Enterprises (Pvt) Ltd. Millennium Concrete Technologies (Pvt) Ltd. OREL Corporation (Private) Limited

Millennium Teas (Pvt) Ltd. Orel IT (Pvt) Ltd.

Minra Holdings (Pvt) Ltd. Oriental Ocean Express (Pvt) Ltd. Multi Merchants Oriflame Lanka“ (Pvt) Ltd. My Cola Beverages“ (Pvt) Ltd. OVIKLO International (Pvt) Ltd. Mystika Import & Export N P 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. Nature’s Agro Products Lanka Company Pee Bee Management Services (Pvt) Ltd. Nature’s Beauty Creations Ltd. Pelemix Lanka (Pvt) Ltd.

The National Chamber of Commerce of Sri Lanka 97 Annual Report 2019/20

National Chamber Members List “

Pelwatte Sugar Industries PLC Penguin Industries (Pvt) Ltd. People’s Bank S People’s Merchant Finance PLC S & D Associates Pet Form (Pvt) Limited. S & D Chemicals (Private) Limited Pettah Pharmacy (Private) Limited. S A Silva & Sons Lanka (Pvt) Ltd. Phoenix Industries Ltd. S M A Azeez Brothers (Pvt) Ltd. Pioneer Tea Exports (Pvt) Ltd. S.N.T. Productions (Pvt) Ltd. Piramal Glass Ceylon PLC S.S.T. Group (Pvt) Ltd. Platinum Clearing and Forwarding (Private) Limited Saboor Chatoor (Pvt) Ltd. PNVX Cargo Inspection Service (Pvt) Ltd. Sadaharitha Plantations Limited Polek Trade Center Safco International Polypackaging Industries (Pvt) Ltd. Saham Travels & Tours (Pvt) Ltd. Pon Pure Chemical Lanka (Pvt) Ltd. Salota International Pvt. Ltd. Power Engineering Services Private Limited Samanala Export Premawardane Export Samarasinghe Windscreen House (Pvt) Ltd. Pristine Kokos (Pvt) Ltd. Samayawardhana Printers (Pvt) Ltd. Pronto Lanka (Private) Limited Sampath Bank PLC

Protected Agriculture Entrepreneurs Association Samson Rubber Industries (Pvt) Ltd.

Providence Business Services (Pvt) Ltd. Samson Rubber Products (Pvt) Ltd. Pulses Splitting & Processing Industry (Pvt) Ltd. Sanjeewaka Ayurvedic Products (Pvt) Ltd. Pussalla Meat“ Producers (Pvt) Ltd. Sapco Holdings (Pvt) Ltd. Puwakaramba Agencies (Pvt) Ltd. Saram Auto Industries Sarma & Company Satellite Lanka (Private) Limited R Savik Company (Pvt) Ltd. SAW Engineering (Pvt) Ltd. R D P Fancy Mahal Schokman & Samerawickreme Rabeena Food (Pvt) Ltd. Sea Consortium Lanka (Pvt) Ltd. Radiant Logistics Colombo (Private) Limited Sea Trade Services (Pvt) Ltd. Raigam Marketing Services (Pvt) Ltd. Seatrans International (Pvt) Limited Raja Jewellers (Pvt) Ltd. Selco Continental (Pvt) Ltd. Randeniya International (Pvt) Ltd. Sena Mills Refineries (Pvt) Ltd. Randhi International (Pvt) Ltd. Senikma Holdings (Pvt) Ltd. Ranjitha Pulses Splitting & Processing Industry Senok Tea Ceylon (Pvt) Ltd. Rasawimana Holdings (Pvt) Ltd. Senvec Lanka (Pte) Limited Rashmi Lanka (Pvt) Ltd. Serendib Engineering Group PLC Rathna Producers Cinnamon Exports (Pvt) Ltd. Serendib Trade Logistics Services (Pvt) Ltd. Red Heart Apparels (Pvt) Ltd. Sethsuwa Ayurveda Hospital (Pvt) Ltd. Reed Lanka (Pvt) Ltd. Sewalanka Community Financial Services Ltd. (SEWA Regen Renewables (Pvt) Ltd. FINANCE) Relaxs Steel Seylan Bank PLC Renuka Holdings PLC Seylan Suppliers Rex Industries (Pvt) Ltd. SGS Lanka (Pvt) Ltd. Rich World International Shanbe Jeans Corporation (Pvt) Ltd. Richard Pieris Exports PLC Shara Property Development Construction (Pvt) Ltd. Roshni Trade International (P) Ltd. Sherry Bakery Equipment Suppliers (Pvt) Ltd. Royal Ceramics Lanka PLC Shin Kwang Lanka (Pvt) Ltd. Royal Constructors Ship Air Logistics (Pvt) Ltd. Russel’s (Pvt) Ltd. Shums & Company (Pvt) Limited Ryder Holdings (Pvt) Ltd. Siam City Cement (Lanka) Ltd. Siba Healthcare (Pvt) Ltd. Silkot Traders (Pvt) Ltd. Sinamta Exporters (Pvt) Ltd. Sindbad (Private) Ltd.

98 The National Chamber of Commerce of Sri Lanka Annual Report 2019/20 “

Singer Finance (Lanka) PLC Singha Holdings (Pvt) Ltd. Sinwa Holdings Limited T Siri Wimal Produce Exporters T B S International (Pvt) Ltd Sisara Group of Companies (Pte) Ltd. T. Suby (Pvt) Limited Sisili Projects Consortium (Pvt) Ltd. Tantri Trailers (Pvt) Ltd. Siyapatha Finance PLC Tea House (Pvt) Ltd. Siyol International Private Limited Tea Palace (Pvt) Ltd. Skills International (Pvt) Ltd. Tea Tang (Pvt) Limited Skyline Accessories (Pvt) Ltd. Tea Trends Exports (Pvt) Ltd. SLT Publications (Pvt) Ltd. Teamex Ltd. Softlogic Life Insurance PLC Tech Waters (Pvt) Ltd. Solex Engineering (Pvt) Limited Termss Global (Pvt) Ltd. Solusys Consulting (Pvt) Ltd. Textware (Pvt) Ltd Spear International (Pvt) Limited TFL Lanka (Pvt) Ltd. Spectra Industries Lanka (Pvt) Ltd. The Association of Container Deport Operators (ACDO) Sri Bio Agri Products (Pvt) Ltd. The Automobile Association of Ceylon Sri Lanka Association of Printers The Bobbin (Pvt) Ltd. Sri Lanka China Business Cooperation Council The Colombo Picture Palace (Pvt) Ltd. Sri Lanka Computer Vendors’ Association The Exterminators (Pvt) Ltd. Sri Lanka Export Credit Insurance Corporation The Finance Company PLC Sri Lanka Gem & Jewellery Association The Swadeshi Industrial Works PLC Sri Lanka Institute of Marketing The Tea Survey & Analysis Co. (Pvt) Ltd. Sri Lanka Institute of Packaging Thirani Peiris International Academy of Beauty (Pvt) Ltd. Sri Lanka Insurance Corporation Ltd. Three Sinha Industries (Pvt) Ltd. Sri Lanka Logistics Providers Association Thunder & Neon (Pvt) Ltd. Sri Lanka Shipping Company Ltd. Titus Stores (Pvt) Ltd. St. Anthony’s Consolidated Ltd. TKT Associates Standard Chartered Bank Tokyo Cement Company (Lanka) PLC Star Industries Torento Engineering (Pvt) Ltd. Stargems International (Pvt) Ltd. Tradeone Globe (Private) Limited Stassen Exports (Pvt) Ltd. Tradesmann SL (Pvt) Ltd. Stassen International Ltd. Transgrow (Pvt) Ltd. State Mortgage and Investment Bank Transocean Traders State Timber Corporation Tri Star Apparel Exports (Pvt) Ltd.

Stenco International Trading Trico Logistics Ltd.

Straight-Line International (Pvt) Ltd. Tritech Engineers (Pvt) Ltd. Streamline International (Pte) Ltd. Tropical Island Commodities (Pvt) Ltd. Sunbee Readymix (Pvt) Ltd. Tropicoir Lanka“ (Pvt) Ltd. Sunflower TVS Lanka (Pvt) Ltd. Sunnyville Impex (Private) Limited. Sunshine Holdings PLC Sunshine Tea (Pvt) Ltd. U Suntea (Pvt) Ltd. U.S. Motor Spare Parts Company Supply Room (Pvt) Ltd. UCL Logistics (Pvt) Ltd. Surveying Testing Bureau (Pvt) Ltd. Udaya Industries Sutton Springs Water (Pvt) Ltd. UHE Exports (Pvt) Ltd. Swedish Trading Co. (Pvt) Ltd. UltraTech Cement Lanka (Pvt) Ltd. Swiss Lloyd Ltd. Unicel (Pvt) Ltd. Switz Lanka (Pvt) Ltd. Union Apparels (Pvt) Ltd. Synergy Management Consultants (Pvt) Ltd. Union Assurance PLC Synex International (Pvt) Ltd. Union Bank of Colombo PLC Union Chemicals Lanka PLC Union Colombo Industrial Washing (Pvt) Ltd.

The National Chamber of Commerce of Sri Lanka 99 Annual Report 2019/20 National Chamber Members List

Union Commodities (Pvt) Ltd. Unipower (Pvt) Ltd. United Electricals Engineering (Pvt) Ltd. United Logistics Colombo (Pvt) Ltd. United Mercury Group Lanka (Pvt) Ltd. United Motors Lanka PLC

United Stores

Universal Export Suppliers Universal Labels (Pvt) Limited UniWorld Teas“ (Pvt) Ltd. 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.

Y Yuming International“ (Pvt) Ltd. Yusen Logistics & Kusuhara Lanka (Pvt) Ltd. Z Zaaras Holdings (Pvt) Ltd. Zam Gems (Pvt) Ltd. Zodiac Medicals (Private) Limited

100 The National Chamber of Commerce of Sri Lanka Annual Report 2019/20 Corporate Information

Registered Name Secretary General/CEO The National Chamber of Commerce of Sri Lanka. Mr. Bandula Dissanayake

Legal Form Office Bearers Incorporated in Ceylon in 1955 as a limited liability Mr. Asela de Livera - President company under companies Ordinance No. 51 of 1938 Mr. Nandika Buddhipala - Senior Deputy President founded in 1948 Registered under the Company’s Act No. Mr. G. Deepal Nelson - Deputy President 07 of 2007 pursuant to Section 485 (6) (G) as a Guarantee Mr. Anura Warnakulasooriya - Honorary Secretary Limited on 28 July 2008. Mr. Gamini Wimalasuriya - Honorary Treasurer

Company Registered Number Accounting Year End GA 79 (formerly A 12) 31st March

Registered Office Annual Report Year End The National Chamber Building 31st December following Accounting Year End 450, D R Wijewardena Mawatha, Colombo 10, Sri Lanka. Auditors KPMG Chartered Accountants 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

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