APRIL 2021

P.18 WHAT SHOULD THE SRI LANKA STATE PRIORITIZE? PART 2 P.6 4 SANJI DE SILVA ON DEMAND FOR HEALTH LOGISTICS SOFTWARE, GOING GLOBAL AND SEGMENTING THE DAY INTO FOUR SESSIONS

P.4 6

BEGINNING THIS APRIL AND FOR SEVERAL MONTHS TO FOLLOW, ECHELON IS CELEBRATING LEADERSHIP: A PHENOMENON THAT IS WIDELY STUDIED BUT LITTLE UNDERSTOOD

CENTRAL BANK SHOULD GUARD AGAINST BANKRUPTCY AS FED LIGHTS INFLATION FIRES P.30 2 ECHELON.LK APRIL 2021 APRIL 2021 ECHELON.LK 01 02 ECHELON.LK APRIL 2021 APRIL 2021 ECHELON.LK 03 04 ECHELON.LK APRIL 2021 APRIL 2021 ECHELON.LK 05 CONTENTS

APRIL 2021

P.16 A road to somewhere A focus on rural roads has increased connectivity and opportunity P.18 What should the Sri Lankan state prioritize? Part 2. Vaccines, groundwater, public transport & postal services P.22 Listed firms defy Covid-19 Companies listed on the Colombo Stock Exchange ended the year of the Covid-19 pandemic with record profits P.42 P.30 For a Greener and Cleaner Colombo P.108 Central bank should guard Colombo’s environment Entrepreneurial against bankruptcy as Fed scorecard is amber, lights inflation fires or maybe even red, in spirit? certain areas. Should the Best forget it! The loosest domestic policy in history, growth of the city still be When discretion another round of bad policy at the negatively correlated with is the better part Fed is converging on swaps and credit greening efforts? of valour downgrades

06 ECHELON.LK APRIL 2021

CONTENTS

APRIL 2021

P.24 Collective RCM: The Art of Celebrating People Founded five years ago, the company found success by providing constant support to team members on both a professional and personal level. Here's what 20 employees who have been with the company since inception have to say about working at Collective RCM P.94 oDoc: Better Healthcare for All is Now a Reality This startup is making high- quality healthcare universally accessible, affordable, and personal by unlocking the potential of digital technology P.102 VeracityAI: Transforming P.98 the Insurance EFL: A Story of Industry with AI Brand Innovation in VeracityAI has developed Logistics WENN CarEye that scans the In a dynamic marketplace that’s exterior of a vehicle, analyses rapidly changing and highly wear and tear, diagnoses competitive, the power of a problems, and more brand determines its success

08 ECHELON.LK APRIL 2021 APRIL 2021 ECHELON.LK 09 CONTENTS

APRIL 2021 P.60 Daraz's Managing Director Rakhil Fernando on growth, e-commerce opportunity, and leading a young team

P.48 Building Global Solutions for Trade P.52 Transforming a Legacy P.56 The Bellwether Banker P.64 Sanji De Silva on demand for health logistics software, going global and segmenting the day into four sessions P.68 The Real Estate Expert P.72 The Impact Banker P.74 Keeping pace with technology’s rapid upheavals P.76 Reimagining construction P.86 P.80 CryptoGen: Enabling a Secure Niranka Perera on scaling Digital Transformation eCommerce solutions and how the business changed after the P.88 Easter Sunday attacks The Audacious Dynamic Duo P.84 P.90 The Daring Pathfinder Living a Passion

10 ECHELON.LK APRIL 2021

Editor’s Desk

Leadership, charisma and narcissism

eginning this April and for several months to follow, Echelon is celebrating leadership: a phenomenon that is widely studied but little understood. To prosper economically, Sri Lanka will require, B more than anything else, great leadership with vision to set the course for the future. Businesses will also rely on these leaders to build globally competitive companies, and create jobs and prosperity in the process. Successful leaders also pay In our discussions we explored three attention to the goings on, they areas; the nature and behaviour of leaders, will determine what strategic of those who are led and the structure of the action needs to be taken, set a organisation in which the leading takes place. Our conversations revealed that leaders had new direction and concentrate unique approaches but overall their values the attention of everyone in the and principles were similar. company on it. Often, people confuse competence, with confidence, charisma and narcissism. On the contrary it became evident, to us, that successful business leaders had sufficient empathy to understand the concerns of others. Things do go wrong, as they did during the Coronavirus pandemic, and great leaders showed the flexibility to adjust their strategy. Successful leaders also pay attention to the goings on, they will determine what strategic action needs to be taken, set a new direction and concentrate the attention of everyone in the company on it. We called the special series of articles featuring these conversations ‘Daring CEOs’.

SHAMINDRA KULAMANNAGE, EDITOR-IN-CHIEF

Facebook YouTube JOIN THE ECHELON COMMUNITY @echelonmag Echelon Magazine Write to us, tweet us, tag us on Instagram: We promise to read each and every one of your comments. Twitter Instagram @EchelonMag echelon_mag

LinkedIn Echelon Magazine Sri Lanka APRIL 2021 ECHELON.LK 13 MASTHEAD

EDITOR-IN-CHIEF Shamindra Kulamannage

DEPUTY EDITOR Devan Daniel

CONTRIBUTORS Chanka Jayasinghe, Maria Soysa, Mahadiya Hamza

COLUMNISTS Bellwether, Rohan Samarajiva, Nick Hart

DESIGN & LAYOUT Buddhika Pigera, Selvaraj Gopinath, Thiyashi Koththigoda, Tharaka Caldera, Huzni Mohamed, Trevor Sylvester

PHOTOGRAPHY Preveen Rodrigo, Shafraz Farook, Saaliya Thilakarathna

EXECUTIVE DIRECTOR Antoinette Ludowyk

HEAD OF SALES BUSINESS MEDIA Wazim Ahamed

ADVERTISING & SALES Kushanthie Abeyratne, Niluksha Myelvaganam, Hashini Mahanama

PUBLISHER Echelon Media (Pvt) Ltd HOW TO CHAIRMAN Channa De Silva REACH US

ADDRESS No 15, Station Road, ISSN 2362-1001 Colombo 3, Sri Lanka. T: 011 2573001 For reprint information, write to [email protected] www.echelon.lk This Magazine supports the Press Complaints Commission of Sri Lanka

HOW TO REACH US RIGHTS OF READERS [email protected] SUBSCRIPTIONS The Editor and the journalists of this magazine respect the “Rights of Readers” and endeavour to follow the Code of Professional Practice of The www.echelon.lk/home/subscription Editors’ Guild of Sri Lanka, which is implemented by the Press Complaints Commission of Sri Lanka. If you have a grievance against us, you are welcome to contact us directly and we will strive to provide redress to you. © 2021 Echelon Media (Pvt) Limited. All rights reserved. If you are not satisfied, you could complain to: The Press Complaints No part of this publication Commission of Sri Lanka (PCCSL) may be reproduced or distributed in any form without the prior written For further information contact permission of the publisher. 96, Kirula Road, Colombo 5 The views and opinions Tel: 5353635 Fax: a5335500 expressed in this publication E-mail: [email protected] are those of the authors. Web page: www.pccsl.lk

14 ECHELON.LK APRIL 2021

A ROAD TO SOMEWHERE A focus on rural roads has increased connectivity and opportunity

A ten-year national road masterplan is proposing two major additions to Colombo’s network, an elevated highway linking the New Kelani Bridge to downtown Colombo, and a tunnel connecting the Marine Drive extension to the port and to a proposed multi- modal transport hub at Pettah. Improving connectivity between the Southern and Nothern parts of Colombo is a focus of the new roads to meet future transport demand created by the Port City and Colombo Port expansion. The master plan's other objective is to improve roads all over the island. Sri Lanka’s road network is extensive and investments in the last few decades have improved its quality.

Sri Lanka’s current road density per square km. A high concentration 1.7KM compared to peers.

share of passenger traffic carried on roads. Rail carries the 95% rest of the traffic. A highway in Sri Lanka’s rural Uva province of roads have asphalt winds along the surfaces, followed by mountain slopes. 25% made with tar over Roads such as 72% layers of crushed stones. this one are the main arteries connecting rural communities to socio-economic Source: Road Development Authority centres.

16 ECHELON.LK APRIL 2021 BIG PICTURE

APRIL 2021 ECHELON.LK 17 : THIYASHI KOTHTHIGODA THIYASHI BY : ILLUSTRATIONS

18 ECHELON.LK APRIL 2021 AGENDA

ARTHASHASTHRA

WHAT SHOULD THE SRI LANKAN STATE PRIORITIZE? PART 2. Vaccines, groundwater, public transport & postal services

BY ROHAN SAMARAJIVA

urrently, the Sri Lankan state Externalities does many things badly. Externalities occur when the actions of a person or organi- Despite having a strong pub- zation impact those with whom there is no relationship or lic health system and months contract. to get ready, it has failed to When the impact is a good one, it is described as a posi- deploy the vaccines in an tive externality. One may stand in line and obtain a Covid-19 C orderly manner. It is building vaccine to prevent oneself from getting infected, having to expressways while cancelling be quarantined, and suffering various ill effects, including public transport enhancements. death. But this action has benefits for unconnected others. Sri Lanka needs a state that does many The more people get vaccinated, the quicker the spread of the things well, or at least a few things well. What disease is halted. Even those who refuse to get vaccinated are the few things that the Sri Lankan state benefit from the actions of those who do. That is a positive should do well? After it has mastered delivery externality. of the highest priority services, it can start on If people think they gain the benefits of a disease-free the lower-priority tasks. environment through the positive externalities only, they may In Part 1 the misguided priorities regard- avoid the injections and the associated discomforts. If too ing public goods, including national defence, many people think like this, the social benefits of vaccination law and order, and justice were discussed. will not be realized, and the disease may continue to linger. Failures to control market power were Here, the state may have to step in, providing inducements for demonstrated along with a mixed report on vaccination and perhaps even coercion against anti-vaxxers. actions to address high levels of information People who do not get vaccinated and who do not follow asymmetry. Actions needed to remedy prob- safe health practices may suffer direct consequences. But lems caused by negative externalities and to their behaviours will also affect others, by spreading infection optimize gains from positive externalities are or delaying the return to normalcy. That is an example of a discussed below. negative externality.

APRIL 2021 ECHELON.LK 19 The extraction of water through a tube well on private The trouble with externalities property may be quite legal. But if too much water is Many define public goods too broadly, for example claiming that all pumped out, wells in the vicinity may go dry or salinity goods and services now provided by the state are public goods and in the groundwater may increase affecting parties with must therefore be continued to be provided by the public sector. whom the person responsible has no relationship. This In the same way, there is a tendency to see positive and negative is another example of a negative externality. Because externalities everywhere, thereby providing expansive justifications no immediate consequences follow, it is likely that too for state intervention or supply. much water will be drawn, with negative effects being It is true that people living by, and using, the Galle Road will experienced by unconnected persons. If some action is gain some benefits from the diversion of long-distance traffic to the not taken by the state, the end result may be no drinkable Southern Expressway. But by itself, this does not justify the massive water for anyone. costs of building the Expressway. The economic justification for But it must be emphasized that the only solutions the new road must be made on the ground of other factors such are not the banning of groundwater extraction or daily as enabling agricultural exports, making it feasible to set up new inspections of each tube well. The workable solutions factories and the value of faster movements of tourists from the may range from assigning clear private property rights to airport to resort. Reduced congestion and fatalities on Galle Road groundwater and letting the parties negotiate to having are to be appreciated and even factored into the overall cost-benefit multiple tube wells feed into a common tank, from which calculation, but they cannot be the principal rationale. metered access is provided to all with entitlements and The direct benefits that flow to users of the Expressway can be various forms of regulation. recovered through tolls, even if the revenues do not cover all costs. Because of the positive external benefits, the state can commis- sion the construction of the expressway and provide viability gap financing. It is for this gap financing that comes from the taxpayer that it would be necessary to have justifications based on different kinds of externalities. A similar logic applies to urban public transport, except for the fact that the gap financing is not just at the outset and one-time. Perhaps except for public transport in Hong Kong, an extraordinarily densely populated place, all urban transport systems cannot cover It is for this gap their costs and require continuing subsidies. These subsidies can financing that comes be justified based on the overall effects on the quality of urban life. Without public transport which can make the most efficient use from the taxpayer of road space, there would be a need for more and more road con- that it would be struction that will not necessarily result in faster traffic movement but will guarantee higher air and sound pollution. necessary to have Public transport is a service that can and should be charged justifications based for, but because of the considerable externalities associated with it, there is a strong justification for continuing operational subsi- on different kinds of dies. Depending on circumstances, it may even extend to taxis or externalities. specialized off-peak forms of transport.

Externalities and state involvement Positive and negative externalities may be interpreted broadly or narrowly. Here, the capacity of the state must be factored in. If the state machinery works well, like in Scandinavia or in Singapore, one could afford to have an expansive definition of significance. But when the state is like ours, which lacks capacity despite being 1.4 million strong, narrowly defining the significance of externalities would be wise.

20 ECHELON.LK APRIL 2021 AGENDA

ARTHASHASTHRA

Finally, there is a possibility of a range of roles. Just because a significant externality exists, the state should not take on all aspects of supply. How much it should take on should be decided by state capacity and the competing demands for its limited resources. The state can intervene as regulator, but even here, there are gradations. A child with a noisy toy can create negative exter- Unless its work nalities for neighbours in the form of sleep and peace culture is changed, destroying noise. But that does not justify a regulatory body to set decibel and other standards for noisy toys it will be unable and sending out troops of inspectors to conduct raids to compete with on homes to see if toys are under lock and key during evening and mornings. It is only the very serious exter- lean competitors nalities associated with urban living, such as the rearing and continue to of livestock in cities or the use of incendiary devices and materials that merit the attention of the state. be a burden on the Given enough time and stable technology, people taxpayer. can come up with workable arrangements to manage externalities. Traditional ways existed in the Jaffna pen- insula to manage groundwater extraction. It was with automated pumps and sophisticated drilling equipment that the old ways got destabilized. If the damage is rapid, severe and irreversible, the earlier conclusion that the externalities were not worthy of state intervention may be revised. State capacity should be the critical deciding factor in deciding which externalities merit intervention. But interconnection is enforced to allow packages from one unfortunately, these decisions tend to be taken on the network to be carried by another, or at least delivered to whims of politicians and senior officials, rather than the same mailboxes. This means regulation as in telecom- sober consideration of state capacity. Interventions that munications, but lighter. Attention may also have to be may be justified in Singapore may not be justifiable in paid to ensure service in high-cost areas if competition the context of the less efficient state machinery here. fails to do so. Do externalities justify supply by state-owned Ideally, the state’s role would be limited to that of a enterprises? regulator, with all competing providers being private. But People are used to state-owned and operated postal given a pre-existing organization and workforce, it is likely monopolies. In country after country, they are losing that a legacy provider will be present. Unless its work money and failing to provide services of adequate qual- culture is changed, it will be unable to compete with lean ity. Even after people stop writing letters and all bills are competitors and continue to be a burden on the taxpayer. delivered electronically, there would still be a need for The only way to avoid this would be through a public-pri- package delivery (until 3-D printing becomes the norm!). vate partnership, whereby a private entity would be em- The senders and the receivers would directly benefit, powered to introduce a new work culture. Gradually, state but there are external benefits such as less demand ownership may be phased out, leaving only the regulatory for expensive real estate for bricks-and-mortar function. retail facilities. Quality and price are best addressed As illustrated above, rules may be used as the basis for through competition. But like in any network indus- a political conversation about the priorities for the state. try, competing providers will require interconnec- Different political conversations will yield answers appro- tion. New entrants will face major barriers unless fair priate for specific circumstances.

APRIL 2021 ECHELON.LK 21 ROEs for the December 2020 LISTED Quarter (%) FIRMS DEFY Overall Market COVID-19 Logistics Materials Companies listed on the Colombo Stock Banking Exchange ended the year of the Covid-19 Healthcare pandemic with record profits 0 20 40 60

isted companies reported a combined profit Record Profits Post Pandemic of Rs85 billion in the December 2020 quarter, the highest for any quarter in the history of Lockdown the Colombo Stock Exchange, says Softlogic Listed companies combined reported the highest earnings Research, a unit of Softlogic Stockbrokers. for any quarter in history in the Dec 2020 quarter, according The combined earnings in the December to Softlogic Stockbrokers. L quarter was up 16% from the previous quarter (September 2020) and a 33% increase from a year earlier (December 2019 quarter). 100 The growth in earnings was phenomenal considering the Covid-19 lockdown in March-May 2020 and the second wave of the pandemic that hit in the second half of the year after the countrywide lockdown was lifted. The banking sector made the highest contribution to combined profits with Rs18.7 billion which was 6% lower from a year earlier but still up 42% from the previous 50 quarter. (Rs.Bn) Healthcare was the second-highest earnings generator at Rs16.6 billion, up 28% from a year ago but 3% lower from September 2020 quarter. The Capital Goods segment which includes holding companies such JKH and Hayleys reported Rs13.7 billion in combined profits, up 62% from the previous quarter but only a 4% increase from a year earlier. 0 Diversified Financials made Rs12 billion, down 27% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q from a year earlier but up 9% from the previous quarter. 2018 2019 2020 The Consumer Services segment which includes hotels reported an Rs5.8 billion loss, 300% more than the pre- Source: Softlogic Stockbrokers vious year.

Rs.85b Rs.64b 33% Rs.5.8b Rs.18.7b Combined earnings of Combined earnings of Year on year Losses of the consumer Combined banking sector KOTHTHIGODA THIYASHI BY : ILLUSTRATIONS Dec '20 Quarter Dec '19 Quarter growth services sector which earnings in the Dec 2020 includes hotels quarter

22 ECHELON.LK APRILAPRIL 20212021 NEXT

-19% +66%

85%

+76%

+27% +147%

+57% Dec '19 Quarter +105% +21% +1932% Dec '20 Quarter Dec '19 Quarter -76% +1% +92% Dec '20 Quarter

Other Rs.2.9bn

Utilities Rs.1bn

Logistics Rs.4.5bn

Telcos Rs.4.5bn

Real Estate Rs.0.6bn

Materials (Manufacturing) Rs.6.5bn

+177% Insurance Rs.6bn

Healthcare Rs.2bn

Food, Beverages & Tobacco Rs.16.5bn

Food & Staples Retail Rs.1.5bn

Diversified Financials Rs.12bn

Consumer Services Rs.-6bn

Capital Goods (Diversified Holdings) Rs.14bn

Banks Rs.19bn

APRIL 2021 ECHELON.LK 23 CELEBRATING PEOPLE

COLLECTIVE RCM: THE ART OF CELEBRATING PEOPLE Founded five years ago, the company found success by providing constant support to team members on both a professional and personal level. Here's what 20 employ- ees who have been with the company since inception have to say about working at Collective RCM

ollective RCM focuses on revenue cycle and operational or Relationships have nothing to do with it. We improvements for upper market US healthcare systems watch people performing to their ability, capac- and is one of the most sought after companies to work ity and own will to take on responsibilities, and at in Sri Lanka. It is a forerunner in providing innova- if they are consistent, then we suggest them to tive ways of work-life balance for its team. Since its take on more responsibilities. Someone ‘can’ inception five years ago, the company has had flexibility perform doesn’t mean that they ‘will’ perform. in working hours, leave holidays, work-from-home We facilitate people to fight their own weak- C practices, attire, and more. What's more, irrespective nesses without hiding behind another’s light". of designation, everyone enjoys the same flexibilities. “We always want our people to stick with "At Collective RCM, Designations do not mean power us because they ‘want’ to and because they nor a career path, but purely the level of responsibility carried out by each ‘love’ to, not because they ‘have’ to. That is why individual. What defines you is your contribution to the success of the com- Collective RCM always comes to mind when pany," says Director, Shanka Hewagamage. talking about a ‘Happy Workplace’. All this is "We do not encourage rivalry among individuals. Everyone is either a due to deliberate efforts day in and day out superstar of their own, or in the process of getting there with our help. It is by every team member throughout the last 5 very unrealistic and unfair to gauge a few 'Best Performers' when everybody years,” he elaborated. is fighting a different battle at work," he explains. These are the stories of 20 achievers who "At Collective RCM, we take ‘Taking on responsibilities’ very serious. Tenure have been with the company since its inception.

24 ECHELON.LK APRIL 2021 BRANDED CONTENT

ERANDA

I have worked in many companies abroad and in Sri Lanka, but for me, it was a whole new experi- ence when I joined a new Startup company for the first time in my career. It always felt like a major risk, but I already knew on that day I was going to step into something big in the industry, because of the leaders involved. Passing one year in COLLECTIVE, I had my ups and downs, but I improved, improved, MINALI improved, and all my life changing dreams became true. I got married to the love of my life, I bought my first car, and most impor- tantly I was able to use the flexible policies provided by the Company to spend Just like with most of our team members, significant time with my parents to take care of them. Currently, I have a one- this is the Company that I have stayed with the year-old child that completes my life. My 5 years at COLLECTIVE, helped me longest, celebrating my 5 years along with the build up myself to face my entire Future. Company’s. Best thing about COLLECTIVE is living up to its word without letting anyone down. May it be our prestigious clientele or our superhero team members, COLLECTIVE has RIFKA consistently taken care of all of them throughout the past 5 years through good times as well as I was just 21 years old when I joined through difficult times. The other thing our team COLLECTIVE back in 2016 and I would say really appreciates is the trust the leaderships joining COLLECTIVE was the greatest deci- at all levels, have on their subordinates. While sion that I made in my life. It is a company we are full on with technologies when it comes that does not count our time, and in return to quality and volume control, being a part of we do not count the time that we need to a team where everyone is 100% committed to give to the Company. Whether it takes 5 their responsibilities without looking around for hours or 50 hours at a stretch, we are ready excuses has been an amazing culture to work in. to do what it takes to deliver the results. By looking at the past 5 years I am incredibly happy and proud of myself as to how I have improved. It was easier to balance my work and study at the same time when I was reading for my Degree. Because of COLLECTIVE I became a US Certified Coder. At the age of 24 I bought my first car and that was one of my greatest achievements, which I thank COLLECTIVE for helping me accomplish that.

RUWINI

In my past employments, it was more about checking in right on time or not utilizing leaves, or rigid rules and regulations. These were the judgement tools they used to manage the effectiveness of their employees. COLLECTIVE was the first place I worked with, that prioritizes the results and responsibilities, and nothing else. Everywhere that I have worked before, regardless of what was going on with your life, you were expected to show up or else it would have reflected badly in your qualitative performance. Getting an approval for a leave was always about why I should not. I am so thankful that 5 Years ago I made the decision to join a new startup and everything about this company was different. Flexible hours, unargued leave approvals, creative flexibilities such as four-day intense working plan that enabled us to practice our capacity once in a while in a short time and have a long weekend in return, additional special leaves for special life events and the trust and approval to work from home (way before COVID), are some of the great things which I experienced at COLLECTIVE that helped all of us to have a well-balanced work/family life. The beauty was, all the above led us to become effective team members who do not let the Company down no matter what.

APRIL 2021 ECHELON.LK 25 CELEBRATING PEOPLE

ASELA THIMALI 5 years ago, I never thought joining I am COLLECTIVE would improve my life to this incredibly happy level in such a short time. COLLECTIVE has and proud about given me great responsibilities and chal- the decision I lenges and an opportunity to learn. That has took 5 years ago, to join COLLECTIVE. Because made me a different improved version of myself, year after year. Thanks to of COLLECTIVE, I have achieved so many mile- COLLECTIVE, I moved to Colombo from an outstation, learnt a lot about stones in my personal life as well as in my pro- life, made connections with various people and corporates, bought my fessional life. The best thing about COLLECTIVE first car and I am taking care of my parents in return to all the great things is when they see your potential, they throw they have done for me. Having worked in so many places in Sri Lanka and at you great challenges for you to accomplish, abroad, I cannot think of a better place than COLLECTIVE to work for. and if you succeed, you are rewarded with life My 5 years with COLLECTIVE have been the best 5 years of my life so far. changing opportunities. COLLECTIVE gave me the opportunity to become a US Certified Coder, with many others. Another great quality of COLLECTIVE is how they live up to the term I applied to COLLECTIVE, 5 “work/life balance”. They roll out well thought years ago, for RCM operations, but through win-win-win ((client, company and when the leadership saw my CV, they team) policies without making it a one-way threw a different challenge at me. street. It is a Company that walks the talk and I was given the challenge to set up everyone in the team honors the Company for the whole IT infrastructure for this that quality. then-Startup, including planning, designing and implementation to BUDDIKA W be done within a week. I took the challenge though it was a tough one for me because of two reasons. One; I KALINGA was well educated but not well expe- rienced in what was expected. Two; The timeline I have worked in many companies abroad and in Sri Lanka, was beyond the norms according to the theories but COLLECTIVE is at a different level. With COLLECTIVE, I moved I had learnt in books. It was a life changing to a completely new city to work for the company. It was more of an challenge for me and later, I was immensely adventure to be part of. It was a fun, friendly and flexible working proud to see my colleagues working at the IT environment which I liked from the beginning. I was pushed and infrastructure that I had setup with my own motivated to learn every process in the industry, hands on, which hands. A great quality of COLLECTIVE is that was hard at the beginning, but the leadership was patient and hand the leadership identifies your skills and places holding all throughout. I was placed in many different roles in the you at the right process to grow. COLLECTIVE is company which helped me to learn a the turning point of my life and the place where great deal regarding RCM industry. Unlike I got to show off my capacity and strength. what happens to most of us, I never had From that day, no matter what is thrown at to lie my way to get a day off because my way, I deliver. Today, while I am a happy COLLECTIVE does not want valid reasons employee at COLLECTIVE, I also have my own to approve an available leave. This com- small Racecar Automotive Workshop that I work pany gives a high priority on work/life on weekends. I know that COLLECTIVE helped balance. COLLECTIVE is amazingly caring every team member make their dreams come about the mental and physical safety of true. I am proud to say that COLLECTIVE is an its Team. My 5 years at COLLECTIVE, was empire where pawns are groomed to become a delight. knights, kings and queens.

26 ECHELON.LK APRIL 2021 BRANDED CONTENT

FAHAD

5 years ago, when I first walked in to COLLECTIVE I was nervous because I had left a stable company for a startup. My financial burden was so high at that time, and I was not ready to take any more. But what a great decision it turned out to be, and here are why. Thanks to its true work/life balance approach, in my 5-years at COLLECTIVE, I have never missed any personal occasion with my family or friends because of my job, where it was never the same in any of my previous Jobs. We are encouraged to give time for our families. End of the day, we will cherish these important moments as fond memories over the money we earned sacrificing those important moments. I also consider that I am a Good Team Member at work and A Happy Husband/Parent at home. I have so much flexibility at COLLECTIVE when it comes to working hours and workload management. When my wife delivered our second baby, we had nobody to take care of her back home, but COLLECTIVE offered me additional leaves and further facilitated me to work from home until my family matters were sorted out. COLLECTIVE truly cares about improving standard of Life of its Team members. Since joining COLLECTIVE, the standard of my life has increased significantly. COLLECTIVE helped me to buy my first car, travel outside of my country for the first time in my life, and gave me the opportunity to get the US Certification for Medical Coding.

WAKKAS Out of all the companies which I had worked My 5 years for COLLECTIVE is the best, because while most of with COLLECTIVE the companies were expecting only something from have given me the their employees, COLLECTIVE always wants to make space to grow pro- sure that its own team members are living a better life fessionally and per- every new day. I have never seen a company other than sonally with a com- COLLECTIVE where it actively pushes you on main- fortable working taining work/life balance and improving quality of life environment with YASIR of its team members. Now I drive my own car, which great people who I could learn from. I never is my first car. COLLECTIVE has removed the stringent fixed have to drag myself from bed, to go to work with work hour restrictions and allowed our team to work flexible the COLLECTIVE family, because it’s amazingly hours, since the beginning of COLLECTIVE. COLLECTIVE is exciting to be there. COLLECTIVE has always concerned about the results and responsibility, not the work encouraged me to take on different responsibil- practices they teach you in books. I would say, COLLECTIVE ities outside of my comfort zones, without com- is a Dream Company to work at, and we all are incredibly promising my personal life, which I consider as a lucky to be part of it. great opportunity to expose myself to a satisfying career. The management is always reachable in terms of both work and personal aspects. The SAYURI company environment is a peaceful, politics-free and a fun place to work. COLLECTIVE persuaded I still remember the very first day of my me to buy my first car and I believe that is the work, and even today I enjoy the same excite- most constructive decision I have made in my ment and energy when I come to office, even life for my young age. COLLECTIVE is amaz- after 5 years. Throughout the years COLLECTIVE ingly caring. Whenever I faced any personal life has given everyone a platform to share and challenges, COLLECTIVE never failed to step up implement innovative ideas, ways to improve for me in all possible ways. The core values for knowledge and skills by providing creative its people, which COLLECTIVE has been car- training programs, leadership symposiums, quiz rying out from the beginning, is Freedom and competitions and various events for enhancing teamwork. It was really Flexibility. I would say this is one of a major encouraging to see that the Company was enabling latest technologies for us reasons why COLLECTIVE delivers amazing to manage work, flexibility in working hours and work from home practices. results to its clients. COLLECTIVE knows how When I was having consecutive difficult times in my life COLLECTIVE had to take care of people as well as how to bring supported me in various ways; financially and emotionally, and mentored out the best results from people. COLLECTIVE is me to overcome sorrowful, stressful life troubles. I am forever grateful for not just my workplace, this is my second home! COLLECTIVE for being the Company it is!

APRIL 2021 ECHELON.LK 27 CELEBRATING PEOPLE

THARUKA

COLLECTIVE is a company that is hungry for innovative ideas and in the hunt for such. BUDDHIKA D Last 5 years with COLLECTIVE has made me think beyond what I thought were my limits. While all my pre- Everyone goes through ups and downs and when vious jobs had extremely that happens COLLECTIVE really takes control strict work cultures, it of you, focuses you and drives you on the right took me by surprise direction. I have worked in many RCM companies adopting into this flexible and friendly environ- and COLLECTIVE’s client statistics are unimaginably great. Imagine ment. COLLECTIVE knows the priorities very well, we accomplish that with a company that often encourages employ- and COLLECTIVE is bold enough to go out from the ees to balance the work and the personal life, and provides flexible books and to try great things. I enjoy the support and hours to work? COLLECTIVE helps its team make their dreams come guidance of my seniors, coworkers and management true, and I have bought my first car within these years. I was able that has become more like my second family to me. to achieve many other milestones of my professional and personal The company has offered me plenty of opportunities life with the support of COLLECTIVE. Even during COVID, company to develop my career, and the knowledge I have provided employees with all the facilities that needed to work from gained in this organization in this period is priceless home, and to securely manage the work deliveries. Wherever life which added a feather to my professional career. leads me, COLLECTIVE will always be my Second home. It was a joyful journey for me to work in such an amazing organization for 5 years.

THEMIYA It feels like yester- Joining COLLECTIVE 5 years ago is day, I became a part of this one of my greatest life decisions that I never wonderful family 5 years regret. It is a workplace that feels like a ago. It was amazing to second home to me. It is a workplace where start work in COLLECTIVE passionate team members are given all the in such a positive environ- opportunities to shine. All the employees ment with a leadership are treated on VIP level. with an amazing ability What I love and always appreciate about to bring out the best in all COLLECTIVE is the company culture which of us. I feel blessed to work supports the work/life balance. When COLLECTIVE says “Work-life for a company that val- balance” they truly mean it. The flexible working hours, working from HARSHANI ues employees' well-bal- home week, power week concept that offers us long weekends in anced life. I would like to express return for intense results delivery, cafeteria with unlimited snacks, my gratitude towards COLLECTIVE pool tables, foosball tables, many annual events sponsored by the for offering me invaluable support Company, definitely give employees a fun and youthful working during my difficult times. Thanks to environment. COLLECTIVE pays me well. I got professionally qual- COLLECTIVE’s immense support, ified in HRM, bought a laptop, a motorcycle, bought a land to build I have come this far as a working my dream home which now I am building my house on, and I am a mother of two kids. COLLECTIVE happy father-to-be. All these became possible because of COLLECTIVE! helped me, and many mums in the During its most difficult times during COVID, COLLECTIVE took care Company, to prove that it is possible of us to a great scale without giving any excuse, even though they to be an achiever along with moth- could. I have a lot more to write about this wonderful company, this erhood. COLLECTIVE always does is my 5th year, and I feel very lucky to work here! COLLECTIVE is considerable changes and actively recognized as a Great Place to Work and our company truly deserves provides support at an individual level it, and moreover, this company has done more than a typical Great which help the team to fulfill the dual Workplace would do for its employees. responsibilities of career and family.

28 ECHELON.LK APRIL 2021 BRANDED CONTENT

ISURANGA

Before COLLECTIVE I was just a boy who worked 12 hours a day, all 7 days, with just one goal, to pay my bills. A quality time with friends and family was a dream for me. I am thankful that I found COLLECTIVE 5 years ago. COLLECTIVE is not a typical Sri Lankan office work environment. COLLECTIVE offers super flexibility that no company has, but the way they manage the results deliv- DIANA ery is amazing. Flexible working hours and true work/life balance have changed our lives. One of my favourite things I cannot believe it has about COLLECTIVE is, it always pushes us towards our families. Whenever I had a fam- been 5 years since I joined ily emergency, or a negative situation, COLLECTIVE always let me be with my family this amazing group of peo- without any questions asked. The Leadership is extremely sensitive about our mental ple. COLLECTIVE’s client and physical safety. Been working at many places in the past, I think COLLECTIVE is focus and people focus is the number one company that makes their employees' needs a priority as much as their out of this world. Doing that clients. Moreover, COLLECTIVE is part of every significant goal I achieved in my life. I for 5 years consistently is proudly drive my first car that I bought with my own money. A big THANK YOU must honourable. I cannot thank go to COLLECTIVE, for the advices, mentoring and caring I received from COLLECTIVE COLLECTIVE enough for in the past 5 years. giving us opportunities for career developments as well as to enhance our SULOCHANA lifestyle in many ways. Being a mom, I really feel Last 5 years with COLLECTIVE have taught me a lot about Career, what a great workplace I Work and Life, in ways which you cannot learn from books. In an econ- have found 5 years ago. I omy where most of the companies are focused solely on the finances cannot express enough of the company, COLLECTIVE prioritizes its client satisfaction as well how grateful I am for how as the employee satisfaction, which has proven to be a game-changing COLLECTIVE has driven factor in our success story. Throughout an employee’s professional us in the right direction to life, they try, they fail, they learn, and they rise, and as an employer, make our clients successful, COLLECTIVE has been so understanding to support every one of us no and to make us successful matter which phase we are in. COLLECTIVE never pushes the fallen in life. further down, which I have experienced with my previous employers. COLLECTIVE is amazing in grooming people and setting them up to face challenges. With working experience from three other larger companies, which I changed within 3 years, none of them were what COLLECTIVE is. Here I am, completing 5 years in One place. Our leadership is inspiring, honest and have faith in their Team members. That makes us never want to let the Company down at any cost.

CHAMATH

The past 5 years at COLLECTIVE, is the golden era in my life yet. COLLECTIVE family is a once in a lifetime gift for me. In my toughest days in my life COLLECTIVE gave me a hand to stand up and gave me the strength to move on and COLLECTIVE gave me a shining career path. I feel that it is not just a job, but a gift for life. Before I joined COLLECTIVE my life was aimless. COLLECTIVE showed me a path, gave me life goals, the financial stability to achieve my dreams like buying my first car, buying a motorcycle, upgrading my house and helping my sister’s educational expenses. Years 2018 and 2019 were depressing as my parents passed away suddenly and I was struggling to move on. I was mentally down but COLLECTIVE woke me up and my cure was COLLECTIVE. COLLECTIVE leaders broke the traditional workplace system and introduced amazing ways of working. For me, COLLECTIVE is my home, a home where there is love, care, and unity.

APRIL 2021 ECHELON.LK 29 THE PRICE SIGNAL CENTRAL BANK SHOULD GUARD AGAINST BANKRUPTCY AS FED LIGHTS INFLATION FIRES

The loosest domestic policy in history, another round of bad policy at the Fed is converging on swaps and credit downgrades

ri Lanka's central bank is run- ning out of reserves, a part of the remaining reserves are tied up in swaps, the country already has a 'CCC' rating and modern s monetary theorists are in con- trol and if that was not enough the US Federal Reserve is firing a bubble. Sri Lanka's central bank and the rupee it produces has been swept like a tsunami by Fed actions in the past, starting from the early 1950s commodity bubble which Mercantilists call the 'Korean War Boom' to the 'food crisis' of Green- span/Bernanke: the mother of all liquidity bub- bles. This time it may be no different.

CENTRAL BANK INSOLVENCY? Sri Lanka's central bank has the worst record among South Asian central banks having depre- ciated the rupee from 4.70 to 200 to the dollar since the end of British rule. The Maldives is the best monetary authority having depreciated only to around 15 to the US dollar. If a central bank was set up by Americans in the Maldives, KOTHTHIGODA THIYASHI BY : ILLUSTRATIONS it will be like Haiti or Cuba.

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APRIL 2021 ECHELON.LK 31 rThe Philippines' central bank also set cannot be balance of payments deficits. up by Americans went bankrupt. Korea's In a gold standard central bank also the convertibility undertaking was writ- 1953 central bank and South Vietnam ten in gold in the note itself. In others it was written in the monetary law. It was fared worse. A central bank's main liability is its note issue. The note issue pays no inter- est. If the notes were issued against for- EXTER’S PARITY eign reserves, it collects all the interest and makes a profit. That is how Sri Lan- The Central Bank of Ceylon was ka's currency board, the Hong Kong cur- pegged to gold, but ended up rency board or any pegged central bank being pegged to the dollar are expected to make profits, which can also be transferred to a sovereign wealth fund every year to be used for an emer- gency. However, the domestic currency notes, while not paying interest, come up for redemption in forex markets at the exchange rate. In a currency board, the exchange rate is fixed. In a (crawling) soft- peg, this rate is periodically reduced (de- preciated) when money is printed (extra notes are issued against T-bills instead of dollars) imposing a hair cut on the hold- ers of central bank notes so that the bank Source: Exter Report gives fewer dollars back to the public than it took in the first place. DEPRECIATION HAIRCUT the same with Sri Lanka's central bank when it was set up, 70 years ago. Centuries ago the Bank of England had to seek parliamentary approval to A currency depreciation is a default on suspend gold convertibility. It was called a Bank Restriction Act. Without it the the holders of domestic notes. Through a Governor and the Bank of England would have ended up in jail, like others have smokescreen of Keynesian hocus pocus, been guillotined or hanged before and after in Europe and elsewhere. neo-Mercantilists have obscured this fact Sri Lanka's central bank, like others created by the Federal Reserve after World from an unsuspecting public who have War II - with artful pressure from the State Department - was essentially a crea- little knowledge of high finance and cen- ture of the International Monetary Fund and designed to break the Sterling Area. tral banking machinations. When central The Exter report which laid the foundation for the central bank and later to banks were private this was immediately forex shortages, balance of payments crises and import controls, is replete with recognized as a fraud and they were pun- multiple reasons why the Sterling peg should be broken in favour of a unified ished. dollar area as envisaged by Harry Dexter White, the arch-New Dealer/Keynesian However 'economists' or bureaucrats who was behind the failed Bretton Woods soft-pegs and the IMF. working for the government have en- Exter pointed out that the IMF requires all members to have par values of sured that no such backlash happens to currencies "in terms of gold as a common denominator or in terms of the United state-run central banks. States dollar of the weight and fineness in effect on July 01, 1944." In a currency board, imposing a hair cut is illegal. New currency liabilities can- not be created through the purchase of Treasury bills. That is also illegal. -There fore the currency issued by a currency board cannot be depreciated and there

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Harry White had expressed the idea in THE HARRY WHITE PEG a report in 1935. White's plan eventually defeated Many reasons were given to Keynes' plan for the post World War II break the hard peg monetary order. As it turned out with open market op- erations and output targeting, it was not possible for either the Sterling (Sterling crises) or the US dollar (Nixon suspending gold convertibility) to keep parity with the gold in the end. In 1969 the Import and Export Control Act was brought in Ceylon when foreign reserves dwindled to 40 million dollars, and when Bretton Woods collapsed in 1971, it played a key role in closing the economy under the next administration and ratchet- ing up import substitution. Source: Exter Report In 1978 Sri Lanka removed most of the remaining threads of a convertibili- Source: Exter Report ty undertaking from the central bank law and the monetary board was allowed to The rupee was therefore defined as 2.88 grains of fine gold. change the exchange rate at the will of the Monetary Board and default on the people against the exchange rate peg. In 1978, though the IMF no longer had THE WHITE PLAN any relevance after the collapse of Bretton Woods, the agency's influence towards What white envisaged what was eventually monetary instability can be seen. happened with the central ban Britain under Thatcher, however, fixed the currency on their own without an IMF program, eliminated the exchange controls which were present for 40 years through 11 IMF programs, and the Sterling became a strong currency and inflation fell. In Sri Lanka, the 1980s set the stage for unchecked depreciation and inflation and civil unrest. To make possible unchecked depreciation, without any parliamentary debate, the Monetary Law was changed. Source: Why White Not Keynes/James Boughton That doomed Sri Lanka's open market economy to severe monetary instability, which was originally also closed due to the American/Keynesian soft-pegged central bank that was created in 1950. The most successful East Asian nations did the com- plete opposite. In the 1980s as the rupee depreciated rapidly and people's living standards fell,

APRIL 2021 ECHELON.LK 33 they went on mass-strikes, and the public UNCHECKED DEPRECIATION was unable to derive the full benefits of a sound monetary system or free trade as How the Exter peg was decimated and the they did in Singapore, Malaysia or the Mal- unthinkable (suspension of convertibility) dives. became the norm Wage earners were systematically im- poverished by the depreciating currency from a central bank that had "suspended convertibility" as it were. Civil unrest fol- lowed. UNHEDGED EXPOSURE When the central bank creates domestic currency through the purchase of dollars via swaps, there is a convertibility under- taking in the agreement. That is why it is a swap and not a purchase of dollars. Article (3) of the MLA does not apply. A swap is a forward contract with a convertibility un- dertaking written into it. Furthermore, when the counterpar- ty is a bank, for which the central bank is responsible as regulator, it is not easy to mistreat them cavalierly and deny convert- ibility as a central bank does to the helpless individual members of the public who had sold dollars to the central bank in return for worthless domestic money. The central bank will have to honour the obligations at the original rate indicated in the swap. Sri Lanka's central bank now has swaps with domestic counterparties and until February it had a swap with the Reserve Bank of India as well totalling 1.3 billion US Source: Monetary Law Act (As amended) dollars. Central-bank-to-central-bank swaps were also invented by the Fed as it desper- ately tried to ward off the effects of its reck- less open market operations in the run-up to and collapse of the Bretton Woods sys- tem in 1971. Open market operations were also ac- cidentally invented by the Fed in the 1920s triggering the Great Depression. NET RESERVES In this century as of January 2021 the Cen- tral Bank of Sri Lanka had 4,841 million US dollars of gross reserves. Of that 1,320 mil-

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By 2021 January, about a third of re- RESERVE DEPLETION serves, which is about three months Remaining reserves are encumbered in worth of imports are now impaired by several ways ($ Bn) foreign exchange liabilities. NET FOREIGN LIABILITIES Gross Reserves Jan 21 4,841.9 As the economy is showing signs of gradually picking up, the central bank Less Swaps 1,320.0 will have to give out more dollars as the excess liquidity is used up in loans if it Balance 3,521.9 wants to defend the currency peg at 200 to the US dollar. The central bank earlier Less IMF loans 1340 indicated that it wanted to give a con- vertibility undertaking at 185 to the US Net Forex Reserve 2,181.9 dollar but it has settled around 200 in March. This is the classic story of Bretton Balance 0 Woods and any soft-peg. To redeem the 100 billion in excess liquidity, 500 million dollars will be needed. That will leave the central bank with around 1.5 billion US dollars to play around with. Of that, around 75 million dollars is an IMF reserve balance. lion dollars were borrowed via swaps from domestic banks or other par- But given the focus on targeting call ties. money rates, started under the last ad- Swap dollars with domestic counterparties can be used for various ministration, more money will be print- purposes, such as giving to the Treasury to pay loans. However, when they ed. Due to this reason, any economic re- mature those swaps have to be paid back at the original exchange rate in covery will worsen the run on the central dollars. bank's reserves. If there are commercial Another 1,340 million dollars from the reserves are owed to the IMF. bank or finance company failures, more Unlike swaps or other central bank forex transactions, IMF transactions money will be printed and more reserves do not give rise to rupee notes or an expansion of the monetary base when will be lost. they are taken to the central bank balance sheet. That is why IMF money However, over the past year, the run results in a net foreign reserve increase, like a sterilized purchase of dol- on the central bank basically came from lars. settling foreign liabilities of the govern- While IMF moneys can be used for various purposes, it has to be paid ment. back in dollars - the IMF actually deals in SDRs. While defending the rupee against The foregoing shows that at the end of January the central bank only excess imports or capital flight to escape has 2.1 billion US dollars to give the government by defaulting on holders from a hair cut on the rupee notes, or of rupee notes by floating (ending convertibility and not defending the assets denominated in rupees (deprecia- currency). Sri Lanka's reserves also include balances with the Asian Clear- tion) like Sri Lankan stocks or bonds,tz is ing Union. purely a run on the central bank to avoid The 100 billion or so excess liquidity will also result in a 500 million depreciation, the run on government dol- dollar loss of reserves at 200 to the dollar (or some other depreciated rate). lar obligations is something new to Sri That is baked in the cake so to speak. If the domestic swaps mature they Lanka. will take up some of the liquidity. In the 1953, or any other currency cri- A currency board has zero interest rupee liability interest bearing for- sis generated by low interest rates, there eign assets. The Central Bank of Ceylon inherited foreign assets worth 11 was no run on the government. Now the months of imports from the Ceylon Currency Board. government's dollar liabilities have been

APRIL 2021 ECHELON.LK 35 downgraded to 'CCC'. That is the reason that foreign investors did not come other swaps with private counterparties back to rupee securities even when a forward exchange guarantee (depreci- do not improve the solvency of the cen- ation hair cut eliminated) was given. tral bank as they will also contribute to In May a bunch of Sri Lanka Development Bonds are maturing. In July negative foreign assets. a billion-dollar bond has to be paid off, because we cannot roll it over not The swaps did not help the Fed, the counting other loan instalments that fall due every month, plus coupons on swaps did not help the Philippines, the sovereign bonds such as in the month of March. swaps did not help the Bank of Thailand While there is excess liquidity in money markets and stronger credit and swaps did not help the Bank of Eng- growth, the central bank will not be able to collect significant volumes of land during the ERM crisis. As a result dollars from market transactions. As can be seen, there is not much time they will not help Sri Lanka either. before the central bank will end up with negative foreign assets. Chinese or There is a new IMF Special Drawing Rights allocation due which can boost reserves and delay D-Day by a few more months. It simply buys time and is not a solution. SDR allocations can be turned into dollars through a roundabout ex- change with surplus countries. FEAR OF FLOATING Running out of reserves by itself is not a big problem if the central bank is pre- pared to free float and the IMF allows it. Even if reserves go down to zero it is pos- sible for a central bank can always float cleanly and escape liability. In fact the Federal Reserve also went bankrupt in 1971 technically, just as the Bank of England did in 1797 when it sus- pended convertibility and several times later including in 1931 when it went off the Gold Standard (the float held) to cheers from John Maynard Keynes. But soft-pegged central banks that do not know how to float get into much deeper trouble, dragging the country along with it. It is psychologically difficult for a soft-pegger to float. Or there may not be the political will do it when the cur- rency falls deeply and pressure comes to intervene. That is why there are complete melt- downs in Latin America, Africa and Asia and it did not happen in 1797 UK, 1931 or 1971 Fed. In 2012 the central bank did 'off market interventions' and the float did not take hold quickly like in 2009. This column has pointed out in the past that Sri Lanka cannot succeed in 'in- flation targeting' without a proper- float ing exchange rate which was subsequent-

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ly proved in the stagflation that followed. at any given exchange rate, leading to a continuous slide. Neither can it peg effectively with a 'flexible Reflecting on the problem with swaps the Pakistan IMF program also exchange rate'. Usually, in a central bank said: "Finally, to remove future drains on its reserves, the SBP has agreed with repeated currency crises, the adminis- to gradually scale back its short swap/forward foreign exchange position trators have a serious 'fear of floating' and to US$ 4 billion by the end of the program." have no idea of how pegs work either. As can be seen from the earlier narrative, swaps are a threat to the As a result, such central banks will end repayment of loans to the IMF. Pakistan has more reserves than Sri Lanka. up generating very high rates of interests, In Sri Lanka swaps were a third of the gross reserves by January. running up to 20 to 50 percent or more as they struggle between fixed and floating -re A STORM FROM FED gimes in a 'flexible exchange rate'. While pegs break due to domestic policy, bad domestic policy is usually The unwillingness and the 'fear of float- triggered by shifting Fed policy, which the pegged country tries to resist, ing' in the psychology of soft-peggers are as wrongly advocated by Exter in his report. The non-existent ability to reflected in their clutching at a disorder- resist the Fed was a carrot that the US State Department and Treasury ly market condition (DMC) rule in an IMF held out to convert consistent Sterling pegs to US dollars. This is how Exter backed 'flexible exchange rate regime. The explained it. IMF also goes along with it, since the cur- "If fact whenever a country voluntarily links its currency to another it rency has to be pegged eventually for the establishes a satellite-planet relationship which in effect proclaims that central bank to repay its own loan. the satellite will always move with the planet: This is tantamount to a renunciation of a basic element of monetary sovereignty." DEADLY FLEXIBLE EXCHANGE RATE This was perhaps the most famous monetary last words written in A flexible exchange rate is an extreme form Ceylon. As the Fed tightened policy from 1951, Sri Lanka ended up with of soft-peg, where instead of a step devalu- its first BOP crisis and the country's 3 month T-bill yield jumped from 0.40 ation which gives into market expectations percent immediately after abolishing the currency board to 1.40 percent. and which is then fixed with a rate hike re- In 2021 Sri Lanka is also printing money to keep rates down and having storing credibility, like in the Bretton Woods run the biggest BOP deficit in the island's history, is facing a foreign debt era, or the way Bank Negara did during the crisis. East Asian crisis, unplanned depreciation In fact, what eventually happened was convertibility was suspend- and interventions take place through a 'dis- ed forever and it was given legal effect in 1978. What was illustrated as a orderly markets rule'. distant possibility in the Exter report to the unsuspecting citizens of the In Pakistan's program, the DMC was ar- ticulated as follows. "Going forward, the SBP might inter- vene to prevent a possible overshooting or THE UNTHINKABLE EXPLAINED - disorderly market conditions (DMCs), while at the same time not suppressing an under- SUSPENSION OF CONVERTIBILITY lying trend and in a manner consistent with rebuilding reserves," the IMF program for Pakistan said in 2019. "These sales will not be sterilized, such that the stance of monetary policy will be correspondingly tightened if intervention is needed." If interventions are unsterilized a policy Source: Exter Report rate cannot be maintained. That is why in Argentina the overnight rate went up over 60 percent with the DMC and 'flexible ex- island became fact. change rate' Any peg that does not change interest rates in line with the Fed is in However since the interventions are ad danger of breaking. The 1985 Latin America debt crisis came from the sec- hoc (due to the DMC) there is no credibility ond Volcker tightening drove up the Fed overnight rate to 11 percent.

APRIL 2021 ECHELON.LK 37 Sri Lanka does not raise rates in line with it the exchange rate will also take a hit. This has happened to Sri Lanka many times, from what was misnamed 'Korean War boom' when the Fed was buying Liberty Bonds like Sri Lanka is now buying Treasury bills to inject li- Initially when quidity and the most recent incidents in 2014 and 2018 when the Fed was tightening and Sri the Fed loosens Lanka cut rates. policy and drives What is different in 2021 is that remarkably reckless modern monetary theory style liquidi- up oil and other ty injections are being made, interest rates are commodity prices at near historic lows and for the first time in Sri Lanka tends to post-independence history, Sri Lanka has bor- rowed money from capital markets and access subsidize energy has been cut off. with printed So both a recovering Sri Lankan economy money hitting the and loose Fed policy can trip the country up. exchange rate. THE OPTIONS A clean float is always a solution. A float works when reserves run out because a float also matches inflows to outflows of dollars. Sri Lanka has done this before when re- serves were at a low level and Sri Lanka did not have much commercial debt and the problem was limited to strong credit growth and weak confidence in the peg on mostly trade transac- tions. However, in 2021 a mere float does not solve the problem because in summary: East Asia in its growth phase kept interest rates in line, having mercifully escaped the Exter/White style reasoning that brought down Latin America. a) on top of the problem of trade transactions But countries like the Philippines, which did not, and following flexible ex- - which will intensify when the economic change rate and semi-independent policy collapsed, and had to be re-capi- activity picks up given Modern Monetary talized. Theory A central bank set up by Arthur Bloomfield, another Fed money doctor in b) there is a problem with central bank swaps. 1953 completely collapsed in 1960 taking Korea's First Republic along with it c) Then there is a problem with government and a new central bank was built from scratch by the military dictator. credit downgrade and the likelihood of de- Yet, after the East Asian crisis, the IMF is advocating a flexible exchange fault which needs a fiscal correction at the rate with dual anchors without any credibility which had already destroyed minimum and a debt workout many countries in Latin America. Sri Lanka's peg has been hit when the Fed loosens policy and also when There are three looming problems on the the Fed tightens. Initially when the Fed loosens policy and drives up oil and horizon: other commodity prices, Sri Lanka tends to subsidize energy with printed money hitting the exchange rate. There are already signs that the commod- a) Fed commodity which will trip up the ity super-cycle is on the way and inflation will go higher than expected by credit system due to fixed fuel prices Jerome Powell, according to economists who track Fed operations closely. b) Any Fed tightening will also trip up the The Fed's record in creating global crises from the Great Depression to the system like in 2018 due to unwillingness to Great Inflation and Great Recession is well known. raise rates and lack of will to independent- However when the Fed tightens policy later as inflation picks up, and ly float

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c) The third is bank failures. from the rupee debt market during MMT ver- It is always smart to start fixing the system before bank failures start. sion 01 involving output targeting, and the Sri Lanka is expecting growth to solve the problem. However, growth current outflow from the stock market in 2020 will not solve the problem as long as money is printed under MMT and and 2021 during MMT version 02. bill auctions fail. As was shown in last month's column the govern- Argentina's IMF program also failed due to ment's domestic debt solvency has to be restored to prevent the default a flexible exchange rate and unsterilized DMC on foreign loans. Defaults and sudden stops of financing can lead to an pushing short term rates to over 60 percent implosion of economies. Steep depreciation will add to it. even as the exchange rate fell. In Argentian Whatever the IMF's faults, and its deadly 'flexible exchange rate' Raul Prebisch's central bank is now defaulting which can drive up interest rates to 60 percent in a crisis it has the clout on its 45 billion dollar debt to the IMF. to get G20 countries and also private debtors behind a debt workout and “We can’t pay because we don’t have the a breathing space. China has also fallen in line with the G20 initiative. money to pay,” Cristina Fernandez de Kirchner In fact, if the Chinese 1.5 billion US dollar swap is drawn down and said in March 2021. used, the central bank's insolvency would get worse in the end. Indians Unlike a step devaluation which restores withdrew its swap early and also gave good advice to go to the IMF. Nei- credibility, there is no relief from a flexible ex- ther India nor the People's Bank of China has the capacity to influence change rate, where market participants are on domestic monetary policy, unlike the IMF, of which the central bank is tenterhooks permanently. The anchor conflicts a creature and has an agreement in place with Sri Lanka's government. in the 'flexible exchange rate', with a reserve Markets also have confidence in IMF programs, however misplaced it is. money target working against a loose domes- Even with an IMF programme, the road ahead is fraught with danger tic anchor (a high ceiling inflation rate) are with a non-credible Keynesian/IMF 'flexible exchange rate' with a DMC. much more violent than a conventional soft- As was seen in Sri Lanka in 2015 and 2018 and also in 2020 the 'flexible peg subject to step devaluation. exchange rate' has zero credibility and creates more problems than it In Sri Lanka this was seen in 2012 and also solves and drives out foreign investors. in 2018, where the IMF program left room for This is what Exter said of the Ceylon Currency Board though making Keynesians within the central bank to print a false claim about 'economic pressures'. No currency board has ever money and the lender gave technical support to calculate an output gap and start MMT ver- SOFT-PEGS BREAK UNDER sion 01. AN UNTAMED CENTRAL BANK WILL PRESSURE, NOT HARD PEGS LEAD TO DOLLARIZATION The only way to tame a soft-pegged central bank is to place a falling ceiling on domestic assets which is complementary to the forex reserve target as a continuous performance criterion (PC). There is no need for a reserve money target. The PC on domestic assets ceiling will take Source: Exter Report care of it as long as overnight rates are allowed to fluctuate. An untamed central bank will lead to unofficial dollarization at a great cost to succumbed to economic pressures also taking a swipe at colonialism. society. Now it is too late to officially dollarize Singapore kept this 'relic of colonialism' which was based on sound as Ecuador did with very little reserves left. monetary principles and rules that upheld the monetary sovereignty of In 2018 and 2019 it may have been possible the individual. Instead Sri Lanka went on a Keynesian discretionary pol- to exchange the entire money issue of about a icy which was also British and dated back to John Law. trillion rupees (reserve money) for US dollars Colonials had used discretionary policy and destroyed countries at around 200 to the US dollar and have some also. reserves left. It was a short jump from 180 to After 2015, the 'flexible exchange rate' led to massive capital flight 200 to the US dollar.

APRIL 2021 ECHELON.LK 39 Extending the same logic it is possible to dol- ros they have at hand. The outcome will be the same as a currency larize the current trillion rupee reserve money at board, the country will be stabilized. 500 to the US dollar with the remaining two bil- If both US dollars and Euros are used there will be currency lion US dollars in net reserves and let the chips competition. Currency competition will be good for stability and fall where they may on the foreign debt. But that growth. Zimbabwe recovered very fast under multiple currencies. is too much of a political hit for any elected gov- That is how Cambodia is growing so fast. The riel fell to 4,000 and ernment. What usually happens in such cases is has stopped because monetary policy is no longer effective. unofficial community based dollarization. Central Banks that are re-capitalized will still live to fight another day like a bad penny. But some central banks get into bigger difficul- ties, and with very steep currency falls the people RAPID RECOVERY start to use dollars after domestic currency and Zimbabwe bank deposits become worthless. That means peo- 1,463.99 USD ple will give up using domestic currency and will use dollars instead. As the value of the domestic currency dwindles to almost nothing over a few 2000 months, amid fuel and electricity shortages and people start trading in whatever dollars and Eu- 1500

1000

500

0

1960 1970 1980 1990 2000 2010

Source: World Bank

Zimbabwe's rapid recovery under multiple currency dollariza- tion. Growth has started to collapse under with the RTGS dollar of the Reserve Bank of Zimbabwe being forced on users. In Cambodia, IMF is trying to get 'monetary policy' to work again, despite the country's previous Zimbabwe like experience. It may well become a Zimbabwe again. Harry Dexter White lives on. IMF is also trying to turn Vietnam into a Sri Lanka with a 'flexible exchange rate'. In fact Sri Lanka can be dollarized and also have a currency board at the same time, which will give some seigniorage profits for the budget. Community driven dollarization or multiple currencies will finally free Sri Lanka from monetary instability. But in between now and dollarization there will be a lot of casualties and pain. None of this need to happen, if pre-emptive action is taken and decision makers learn a little monetary policy.

40 ECHELON.LK APRIL 2021 AGENDA PRICE SIGNAL

APRIL 2021 ECHELON.LK 41 FOR A GREENER AND CLEANER COLOMBO Colombo’s environment scorecard is amber, or maybe even red, in certain areas. Should the growth of the city still be negatively correlated with greening efforts?

BY CHANUKA WATTEGAMA

light rainfall taps my office win- dow. Outside I see mostly foliage. There are a few homes too. On the banks of the nearby wide stream. Egrets busy themselves looking for food. Sometimes a crocodile me- A anders in the water. Not today. It’s no dream, this is really what I see from my window. Some parts of Colombo and its suburbs ha- ven’t been overrun by urban sprawl. This is a sheer contrast to cities in India and elsewhere in the sub- continent. Densely populated Colombo still stands tall in South Asia for cleanliness and for its greenery. Colombo wasn’t like this twenty years ago. I remember, the view of Beire lake from a different workplace. What I saw was more mucky liquid of varying hues from light blue (industrial waste) to dark green (algae). There were no fish in the lake due to the high pollution. It took a multi-year effort to regain some of the Beire’s glory. This narrative suits not just the Beire. There was also a period one could not reach Kirulapana, along High-level Road, without missing the overpowering stench of the canals. Pedestrians along Pettah’s Ol- KOTHTHIGODA THIYASHI BY : ILLUSTRATIONS cott Mawatha, previously Canal Road, have to still

42 ECHELON.LK APRIL 2021 AGENDA

bear such stench, this from organic waste. Air to breathe It shouldn’t come as a surprise that the Colombo Metropolitan Region, with less than Colombo's average air quality against those 6% of the country’s total land area, is home to of selected neighbouring cities (Lower the a quarter of Sri Lanka’s population and con- tributing almost 50 percent of GDP, is also the better) most polluted region in the country. Colombo Colombo’s flood risk is elevated because Singapore the city is low-lying. Wetlands now cover only 20 square kilometres, a sharp drop from Kandy the levels in the 1980s. In some parts of the HCM City city, up to 60% of wetland extent has been since lost. Estimates suggest that wetland Jakarta loss is continuing at an annual rate in excess Katmandu of 1%. This makes the population prone to in- Kuala Lumpur undation. Is Colombo unclean? Really? Karachi This is a difficult question to answer. Let’s Lahore break the task down by considering several Kabul aspects. First Air quality. According to IQAir. com, Sri Lanka recorded a “Moderate” figure Yangon for air cleanliness in 2019 with a score of 78. Delhi Interestingly, Colombo had little to indicate Kolkata about the country’s poor air quality rating. The AQI values recorded for 2019 shows Co- Mumbai lombo’s air quality is good, it’s far better than Dhaka even Kandy’s. However, not every area ranks well. 0 20 40 60 80 100 120 140 160 180 200 Water pollution in Colombo, for example, is Source: aqicn.org widespread on surface water bodies. A 2016 report on Metro Colombo Urban Develop- ment Project finds approximately 50% of the drainage network is polluted while only less than a fifth of the surface drainage system can be considered to be in good ecological status. nesses, including factories along its shores, illegally dump waste Ammonia, Phosphorous and totally dissolved into the river. According to water tests conducted by Central solids are particularly problematic in Colom- Environmental Authority (CEA) near industrial locations, says bo surface water, particularly in the western an Asia Foundation report, basic safe water quality limits fre- part of the city. While there are some signs of quently exceed chemical oxygen demand (37% over acceptable localized improvement in water quality since standards), dissolved oxygen (27-43% over), biological oxygen 2014, says the report, the overall trend is a demand (7-13% over), and heavy metals (7% over). steady deterioration with an acceleration of A diesel leak into the river from a multinational carbonated the deterioration since 2010. drinks manufacturer a few years ago exposed the level of the The Kelani River, a substantial watershed impact industrial pollution has on the Kelani, and on those who passing through Colombo, is heavily pollut- rely on the river for their livelihoods. ed with industrial and residential waste. As Further, the lower reach of the river has been subjected to sa- the fourth-longest and second-largest river in line water intrusion from the ocean due to excessive sand min- the country, it is the main source of drinking ing and lowering of river beds. water to over 4 million people living in the At the lower reaches, where sand mining has been severe, salt greater Colombo area alone. Over 3,000 busi- wedge has extended inwards to the water supply intake point at

APRIL 2021 ECHELON.LK 43 AGENDA

Ambatale (about 14 km from its point of dis- charge) on several occasions, says CEA. Mi- crobiological contamination is another major source of water pollution. This may be due to the disposal of untreated or partially treated sewage (for example, from household latrines and hotels, etc occurring on the banks). Water Quality indexes evaluated annually by CEA indicates that the river water is gradually de- teriorating in all of its sampling locations. Then to solid waste management. Colom- bo Municipal area alone (with a population of only about 800,000) produces 10% of the total Colombo deserves national waste. If we expand this to cover the metropolitan area, the figure may increase by better city planning. at least three times. Of waste, 62% is organ- It is the economic ic, 7% paper, 6% polythene and plastic, 6% wooden, and 2% glass. One major concern is centre of the island. the 17% that cannot be categorized into any of It must be taken out the above, which cannot be recycled. It does not mean the rest of the waste is recycled of the whole to give because most waste disposal still depends it special treatment. on the traditional and most primitive meth- od of dumping. Colombo district has several That can be done garbage dumps. The mounds of garbage at only with a Colombo one of them at Meethotamulla, collapsed on specific central the surrounding residences, killing nearly 40 and directly affecting more than 1,500 people. administration. This garbage mound, which has spread over an area of 85,000 square meters had reached a 50 meter height – that of a ten storey build- ing – at its peak, before the collapse. Colombo may not, historically, have been a green and clean place too. We have no re- cords during the Portuguese and Dutch peri- od, but photos during the British occupation show the city landscape almost barren in sprawl. Colombo still uses much of the road system the British some places. built when the city was far less populated. Unauthorised build- What prevents Colombo from becoming a ings are still common in parts of the city. greener and cleaner city? Is it the population Colombo deserves better city planning. It is the economic growth or density? centre of the island. It must be taken out of the whole to give it Singapore is larger; more industrialized special treatment. That can be done only with a Colombo specif- and has a higher population density than Co- ic central administration. Responsibilities and the scope of the lombo. Yet, it is surprisingly green and clean. present CMC can be widened. The city’s borders can be expand- Many Indian cities, on the other hand, with ed to include its suburbs. The city should have a larger budget - far less industrialization than Singapore (like both capital and recurrent. Other local governing bodies should Madurai and Jaipur) are less clean. It is not come within city administration and not out. That is how cit- industrialization that leads to a filthy city, but ies are governed worldwide by concentrating the resources for poor city planning. Colombo’s environment scale. That is also the only way the administrators can focus on had and still has to do with its unplanned city planning to make it greener and cleaner.

44 ECHELON.LK APRIL 2021 economynext Ad

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For more newsnew https://economynext.ccom/om/ economynext APRIL 2021 ECHELON.LK 45 CHALLENGE

OPTIMIZE EMERGE

P.60 P.48 Daraz's Managing Director Rakhil Building Global Fernando on growth, e-commerce Solutions for Trade opportunity, and leading a young team P.52 P.64 Transforming a Legacy Sanji De Silva on demand for health logistics software, going global and segmenting the day into P.56 four sessions The Bellwether Banker

46 ECHELON.LK APRIL 2021 Beginning this April and for several months to follow, Echelon is celebrating leadership: a phenomenon that is widely studied but little understood. To prosper economically Sri Lanka will require, more than anything else, great leadership with vision to set the course for the future. Businesses will rely on leaders to build globally competitive companies that will create jobs and create economic value

P.68 The Real Estate Expert P.72 The Impact Banker

P.74 Keeping pace with technology’s rapid upheavals

P.76 CONTENTS Reimagining construction

P.80 Niranka Perera on scaling eCommerce solutions and how the business changed after the Easter Sunday attacks

P.84 The Daring Pathfinder P.86 CryptoGen: Enabling a Secure Digital Transformation

P.88 The Audacious Dynamic Duo

P.90 Living a Passion

APRIL 2021 ECHELON.LK 47 CONTRARIAN VISIONARY

BUILDING GLOBAL SOLUTIONS FOR TRADE Anton Godfrey, Executive Chairman of agxa Global, founded the company to improve how international trade worked. Two decades later, he is investing in technology for sustainability and growth.

When you founded agxa Global, you had a specific idea to build a totally unique Sri Lankan conglomerate. How has that journey ANTON GODFREY been so far? I founded AG International in my early twenties after I did a Founder/ Executive Chairman, agxa Global work assignment on international trade. I was intrigued by how global markets and supply chains worked, and how peo- ple in every corner of the world were connected in some form by this beast called international trade. However, at the very outset, it was not my intention to build a conventional cor- porate entity. I aimed to build a business that can contribute towards improving the linkages between global markets and around technology – we have significant operations international trade in a way that creates real value and benefits in data analytics and AI and exploring how crypto to businesses and end-consumers. So, the founding objective currencies will shape the future of international is harnessing global resources. trade. Fintech is another area we specialise in with Today we are a multimillion-dollar revenue company with a specific focus on insurance, and we have devel- offices in Sri Lanka, Singapore, and Australia with a network of oped capabilities around e-commerce as well. Our global principals and agencies. We specialise in offshore trading, tech solutions are rolled out through exclusive joint resources, pulp & paper, global procurement, trade financing and venture partnerships we have established in key logistics. We have covered the entire spectrum of international global markets. These global joint ventures envisage trade and recently included corporate consumer services. We are financial stability to all our business clusters, and building exclusive partnerships with digital as a shared value this is a departure from conventional methods of proposition to drive growth across business functions in relation expanding a business. to innovation, marketing and finance as a new normal initiative. Over the years we have built and solidified last- agxa Global is also focused on developing its capabilities ing relationships with some of the leading brands in

48 ECHELON.LK APRIL 2021 the resources trade, energy, pulp and paper, sugar, dis- What advice do you have for hopeful posable hygienic products, technology, and outsourcing entrepreneurs? sectors from across the world including Asia, North America, and Europe. You must have a fearless conviction Our corporate consumer cluster envisage “Fonte” in your abilities and boldly embrace as a growing brand within the technology space of challenges with positivity by understanding Fontesia.com. We are probably the only company that the environment well. can cater to the end-to-end corporate sector needs. Private labelling and packaging are another important venture within the group. Our print, publishing and A great entrepreneur must also learn packaging resources dominate within the niche in their to say 'No' to tempting opportunities respective markets. Each new venture we added to the to grow the top line and bottom line whilst group over the years was deliberate: it was my vision confining to your core values and goals by to develop end-to-end solutions in international trade, mastering the required skills. and technology is a great enabler and leveller in that regard. Moving forward, we will continue to grow the Having a unique vision is not enough. business organically and inorganically, horizontally You need to acquire the skills to put and vertically. We will continue to venture into new your vision into action. You need the skills to markets as a strategic option. manage people because, without them, you agxa Global is unique and there are few conglom- cannot hope to build a successful company. erates in Sri Lanka with our level of breadth, depth, In principle, our team is of multi business and focus. Our global efforts engage with multinational disciplines and never being from the same teams directly and indirectly at agxa and its many industry. It has been a unique culture of agxa joint-venture partners worldwide. Global Joint Ventures Global. envisage financial stability to all our business clusters surpassing the conventional investment approach. Next, you need to let go of certain things. Once you have the structures and processes in place, you need to develop a layer of leaders who share your vision so that they can scale the business. This will let you focus on the future and agenda of the company.

Building the right relationships is also Global Joint important because you need capital to start a company. If you cannot afford to boot- Ventures strap your startup then you need to partner envisage with people who share your vision. The sense financial of discipline and hard work is also essential.

stability to all our When times are hard, like now with the business clusters pandemic, stick to the fundamentals and focus on your core objectives. Motivate surpassing the your people and give them confidence first conventional before you even think of your external stake- investment holders. Say 'No' to expedient fixes that may cost your integrity and brand value. Then, approach you will find success.

APRIL 2021 ECHELON.LK 49 CONTRARIAN VISIONARY

STEADY HAND IN A STORM THE TECHNOLOGY BELLWETHER What was the impact of How do you view your role at agxa? the pandemic? I view my role as a catalyst for digital innovation for the The clusters I manage company and the industry we represent, ensuring that we have performed admi- exceed the expectations of all our stakeholders including rably despite the global our joint venture and strategic partners. My role requires economic downturn and me to introduce the latest technological innovations within they remain profitable. the organisation, and help our teams keep pace with the I believe this is a testa- rapid advancements of the digital age. ment to agxa 's culture and vision that enables How do you invest in people and align teams with the group's people to be resilient vision and objectives? and grow along with the Mentoring team members is a critical role that creates a business. platform for sustainability and growth. It is essential to The unprecedented set clear expectations by formulating KPIs. Our industry challenges caused by needs continuous innovation. Hence, we have an exten- the global Covid-19 sive training and development programme to ensure we pandemic impacted hire, retain, and align the best talent to agxa 's vision and SUBITHA MAXI businesses everywhere, objectives. including ours too. The We have positioned agxa as a technology enabler that Managing Director, Global Offshore Trade, AG International priority for me at this delivers growth to global businesses in leisure & travel, time is to instil confi- Fintech and eCommerce. While constantly honing our tech dence in our team and our business partners. skills building relationships is critical. We achieve this by Managing the expectations of our clients and delivering on enhancing the consolidation of the best talent by retention our promises is a priority for us and helps maintain solid rela- and building exclusive partnerships globally. Our digital tionships even during crises. Global trade is shifting towards Asia shared value proposition leads global market access with while Europe and North America remain important destinations. big data analytics. The South Asian region has become particularly challenging for freight forwarding but we ensure that the supply chains we What is the one leader- serve remain open despite the region's proclivity for unfavour- ship lesson you learned able trade barriers, restrictions, and inhibitive freight rates. We the hard way? made sure there were no supply chain disruptions and saga- The biggest lesson for ciously booked freight space at favourable rates, so our clients me was realising how benefited. By doing so, we have earned the trust and respect crucial it is to build a strong of our clients. culture with robust, transpar- ent processes and systems, What about your job excites and North America. AG and policy guidelines in place and challenges you? International also special- and shared with everyone in ises in trade financing & the organisation. We use a sys- I lead and drive the business logistics. There are many tem called TOM, Technology clusters in offshore trading, challenges given the com- Operations Management, PPP (print, publishing, and packaging plexity of the business I which helps us optimise resources), sugar – futures & options manage, but this is what resources, and it also contains trading. Our offshore trading desk drives me! Despite the our policies and guidelines. includes derivatives commodities. We challenges, it is important Even during the pandemic have a network of leading principal for me to be unperturbed, lockdown, we managed our sources across the globe including stay cool and get the job SASHI HETTIWATTA teams and ensured seamless Australia, India, Indonesia, Europe done. Director Technology Cluster, agxa operations.

50 ECHELON.LK APRIL 2021 MAKING A MARK IN CORPORATE BUILDING AN ENDURING LEGACY CONSUMER SERVICES What is your vision for the future post-pandemic? How do you view your role at AG International? While COVID-19 has posed I like to think of myself as an enabler. As the Corporate Consumer complex hurdles to our Cluster Lead, challenges are constant because consumer needs supply chain operations, are always shifting. We handle over 600 SKUs across six global our pool of clients in the sourcing centres and also provide services in domestic supply global offshore trade, chain management. (resources) and technology To manage operations efficiently for better returns we use space continue to grow. our advanced technology platform, fontesia.com that caters to Developing solid inter- the supply-side needs of corporates, institutions, and homes. We personal communication source some of the leading brands known for premium quality has been pivotal to main- across a wide range of segments including office sources, copy taining client relationships paper, technology, facility sources, speciality paper, promotional during these adverse cir- items, kitchen and canteen, print management supplies. cumstances. COVID-19 has What we have essentially achieved is to introduce the concept further strengthened this of Corporate Consumer Services to Sri Lanka for the very first resolve by highlighting time. Because it is a novel concept, we are currently creating ASHTON GODFREY how quickly markets can awareness and familiarizing clients with our innovation. This take a turn for the worse. Lead - agxa Australasia can be challenging at times because most people are set in their Adaptability is para- ways and introducing something new takes time. We aim to mount given these dynam- enable and shape the future of consumption with technology. ics. In the coming decade, technological innovation is likely This is also why I devote time to mentor and keep my team on to fundamentally shape the way businesses operate. agxa has their toes about honing their skills and keeping up to date with noticed these growing trends and is looking to capitalise on this shifting market and technological trends. situation by developing a strong technology cluster. We want to build an enduring legacy for ourselves in everything we do. Cryptocurrency is one such technology that has garnered What is the toughest significant promise over the past few years. Envisioning a world part of your job, and how where peer-to-peer transactions are the norm while traditional do you deal with it? financial intermediaries lose prominence is likely, but of course, not for certain. Regardless, agxa’s foresight of these develop- Being in a leadership ments will certainly benefit us and our strategic endeavours position is not an into the future. easy or comfortable task when you are responsible for delivering outcomes How do you view your pur- Our products range in part- and also taking care of the pose? nership with industry-known needs of your team. But it is brands and principal networks an exhilarating experience all As a representative for agxa’s in Europe, Asia, and North the same. Leading by exam- Australasia initiatives, we are America, provides customers ple is probably the hardest continuing to make headwinds in with a significant abundance lesson I had to learn. today’s ever-changing business of materials catered to their environment. needs. It is our mission to pre- Given the receding of the pan- serve as well as expand this demic this year, agxa is looking to outreach well into the future RUWINKA FERNANDO expand its strategic endeavours in to ensure a diverse client Australia, New Zealand, and Africa as portfolio versatile in the face Corporate Consumer Cluster Lead, AG International part of a broader expansion initiative. of changing environments.

APRIL 2021 ECHELON.LK 51 VISION BUILDER

TRANSFORMING A LEGACY

Legacy business models can often inhibit change. However, Dimantha Seneviratne is transforming NDB Bank’s development banking heritage to meet the demands of a new digital age

NDB has a legacy of contributing to Sri Lanka’s economy through devel- opment banking. As its CEO, how do you envision using this legacy to build a bank for the future? NDB was formed back in 1979 with the express intention and respon- sibility of spearheading the development of Sri Lanka. This it did admirably having partnered with some of the large development projects at that time and not so large ones which have now grown to be large businesses because of that support at the start. 15 years ago, with the country upgraded to middle-income status and the drying up of low-cost development funding allocated to the coun- try, the bank was compelled to look at a different business model and continue funding these growth objectives. Hence the move to commercial banking has quite a different set of challenges in front of it: transiting from few large ticket transactions of development banking to millions of small-ticket transactions of retail and com- mercial banking. However, our legacy of development banking left us a strong corporate and project financing expertise and customer base. We have inherited a very robust underwriting standard which today is paying dividends. This legacy has given us the luxury of building around our mainstays of corporate banking and project financing to build out SME and retail banking to the same level. My vision is to continue our legacy of supporting the country to touch and uplift the lives of the people through our SME and

52 ECHELON.LK APRIL 2021 My vision is to continue our legacy of supporting the country to touch and uplift the lives of the people through our SME and retail banking franchise and digital banking as an enabler Dimantha Seneviratne Director / Group Chief Executive Officer

APRIL 2021 ECHELON.LK 53 VISION BUILDER

retail banking franchise and digital banking as is a great achievement for NDB and the country amidst the an enabler. Digital is the future, it is no longer challenging environment and country rating downgrades. a nice-to-have option, and hence building a It could also give an impetus for future investments of robust scalable digital platform is a key imper- this nature. Excellence, transparency and keeping with ative. We will continue to be the change agent international standards went a long way in finalizing this and lead in many areas including renewable transaction. A well-coordinated effort bringing together energy, digital solutions, improving operational the various teams across the group to successfully con- efficiencies, empowering women, and holistic clude very thorough due diligence amid a pandemic was banking solutions. a job well done.

NDB has successfully raised new capital in a chal- Let us talk about the industry. Technology is transforming lenging environment. How was this achieved? banking everywhere. How will banking be different five years Our rights issue is yet to be concluded, but we from now in Sri Lanka? are confident that with a cornerstone investor, Sri Lanka is a bit behind when it comes to technological it will be a success. Partnering with a DFI such adaptation when compared to our regional counterparts. as Norfund demonstrated the confidence such However, there are several initiatives taking hold as we long term investors have in the untapped value speak. Most of us are aware of the QR code promotions that in the country and who is best poised to realize are happening across the country, this has the potential that value. This was after a very stringent credit to transform the economy, the spending habits, and the and commercial due diligence and also the first saving habits at a country level. equity investment for Norfund in Sri Lanka. This The digital KYC is another initiative that is taking hold, this will change the way we onboard clients and will increase the ease with which clients can switch banks. This ability to switch banks easily will, in my opinion, drive the change in the banking industry over the next five years. Banks or third parties which facilitate this ability will entice more clients because clients need convenience, especially the millennial who want to tap the best from across any industries. Closer interaction and exchange of data will take place especially among the financial sector player such as the insurance industry. The industry will need the support of the government, other ecosystem players and the regulator to deploy technology-based solutions more rapidly by creating the necessary interfaces for seamless data interactions. One such interface is the one developed by the CRIB which At NDB, allows banks to efficiently read the clients credit history. nurturing During the next 5 years, we will see Banks starting to use data to understand client requirements better, using talent and predictive and prescriptive AI technology to deliver that rewarding solution to the client proactively. performance Leaders need to keep an eye on the future while managing the is a key everyday challenges. How do you balance these competing demands as a CEO? element in The secret is in developing and empowering a talented and our value energetic team below you. While I rest assured that my top leadership team takes care of the day to day operational system challenges, it frees up my time to spend it on strategic aspirations. But of course, from time to time we need to

54 ECHELON.LK APRIL 2021 dig in deep to overcome underlying issues and that is where the banking experience I have in several local and overseas institutions come in handy to understand and come up with holistic solutions. At NDB, nurturing talent and rewarding performance is a key element in our value system. Apart from that, one needs to invest there My legacy will be the fruit of my own time in strategic thinking and decisions today and I hope they constantly explore growth opportu- will make a difference to nities. NDB is the only bank that was exposed to a gamut of other financial society in the future. sectors via the subsidiaries in invest- ment banking, wealth management, stockbroking, and investment funds. We need to keep abreast of all the development at the highest level, and I as the Group CEO need to make sure that potential growth opportunities are identified, and sector heads are adequately empowered and encour- aged to pursue them. To do this, investing energy and freeing up time to think is essential.

What is the one leadership lesson you As a leader, when you look back, learned the hard way? Please explain. what do you think will matter to The adage about judging a book you about the legacy? by its cover is very apt here. We assess What I do today, we might not see people by their experience, education etc. the results of within the day or even However, when it comes to delivery, they during my term as CEO. What I am can fall well short of what their pedigree doing today is sowing the seeds and would otherwise indicate. This I learnt laying the foundation. Today we live the hard way, having had to roll up my at a time when so many changes sleeves and do the heavy lifting in some are happening which will shape the cases. I think as a leader, it is important future of not only the industry but the to get a clear assessment as early as pos- country. I count my blessings that I sible of your second level who you expect am at this position where I can shape to deliver on your aspirations and vision that future and do something for soci- for the organization. Having made that ety and people. My legacy will be the assessment, taking the most appropri- fruit of my decisions today and I hope ate action in the shortest possible time they will make a difference to soci- to put the correct team together is the ety in the future. With position comes next quality one must develop so that one power and one has to be very mind- can delegate with confidence. I certainly ful of the responsibility and use it for believe in developing winning teams and the sustainable good of the country, this I learned the hard way. economy, and our people.

APRIL 2021 ECHELON.LK 55 THE BIG VISION

THE BELLWETHER BANKER The Chief Executive of SDB bank Thilak Piyadigama is breaking traditional mindsets and leading a digital transformation at the bank. With a passion for tech and innovation, he is on a journey to make SDB bank an integral part of the nation’s development agenda

Thilak Piyadigama Chief Executive Officer SDB bank

56 ECHELON.LK APRIL 2021 DB bank was founded to contribute to Sri a difference in our lives. As a leader, I had to Lanka’s economy through development make others also believe in the power of tech- banking. As its CEO how do you envision nology, and the convenience that comes with using this legacy to build a bank for the it. Yes, we had a traditional mindset then, but future? data speaks for itself. When we as a nation have S Our mission as a development bank to date 31 million mobile connections for a population remains the same. However, the scope and of 21 million, which is equivalent to 149% of the approach to achieve this mission has become much broader. We population, and a digital literacy rate of close to are driving economic development by providing financial services 50%, the need to change the way we do business to the country’s SME sector, which is the backbone of our economy and connect with our customers is quite clear if accounting for 52% of GDP. Approximately 40% of our loan portfolio we want to remain relevant and competitive. So, goes into the SME sector, amply demonstrating our commitment the journey of transformation from a hardcore as a development bank. traditional bank to a digitally-driven banking I am a firm believer in technology and my vision is to create a service provider was made easy because our future-ready bank by marrying technology with the bank’s larger entire leadership worked towards making this mission so that we not only contribute to the national agenda but digital shift possible. also help build a futuristic nation. Since taking over the driving We leveraged the power of tech and went seat at SDB bank as its Chief Executive Officer in 2019, I have made beyond that to create unique experiences for technology the core for all future development and growth. our customers with a product that is appealing and user-friendly. It was a challenge but one that How challenging was it to make digital the centre of all opera- we could overcome through persistent and clear tions in a bank that is more traditionally set? communication and leadership. Today, we have Leadership plays a major role. It means walking the talk as well. I 100,000 plus digital transactions a month with have a passion for technology and strongly believe that it can make Lanka QR being a core driver. We have also seen a growth in registrations for the use of digital transactions including Upay, internet banking, and debit card transactions, with an impressive 300,000 plus customer base as of to date.

What is the one leader- If you were to talk to ship lesson you learned yourself that was 10 the hard way? years younger, what advice Honestly, I do not think I have would you give yourself? learned anything the hard way. I always believe hard work Maybe I was lucky. I started my cannot be replaced with career at JKH, and I was made anything else, not even tech- a leader in about one and a half nology. There are no shortcuts years, so I learned to lead and to success. Hard work can manage people quite early in my be more smart work now career. I also got to meet many because we have the tools to WE LEVERAGED people who inspired me. There help us through. We cannot THE POWER were many lessons to learn from take things for granted. We OF TECH AND them. Any leader has to face have to plan for all eventu- challenges as change is always alities and if we do that, we WENT BEYOND a constant, whether it is to do can be successful. THAT TO with changing people or behav- CREATE UNIQUE iours, or attitudes. I always think EXPERIENCES that nothing is impossible and that probably helps to drive SDB FOR OUR bank. CUSTOMERS

APRIL 2021 ECHELON.LK 57 THE BIG VISION

SDB bank recently received a $40 million effectively at SDB bank is because we are extra cautious loan from the International Development in our credit evaluation process. We know the risks Finance Corporation of the US Government. associated with lending to grassroots-level organiza- Can you discuss this and other capital-rais- tions, so gathering more insight before lending and ing efforts? consistently monitoring progress is key at SDB bank. As an SME-focused development bank, SDB Managing customer relationships while monitoring bank is constantly looking for opportunities and reviewing the progress and recovery status of for funding at competitive rates, in order to every single customer in our loan portfolio helps keep stay relevant and competitive, while being NPLs low. This approach makes it possible for us to able to deliver on our promise to help build the identify the trends and challenges ahead of time and nation’s SME sector. Therefore, long before the take action to reduce the space for a loan to become Central Bank started lowering interest rates, non-performing. We have also deployed technology we wanted to look at options of raising debt to facilitate the collections process which has enabled and equity so that we could extend credit to our team to be more efficient and effective in debt help the SME grow. recovery. I believe if you manage your loan book and We approached many international fund- customers effectively, NPLs can be kept well within ing organizations for this purpose including control. The Development Finance Corporation. When we started discussions with DFC, the interest rate on rupee borrowings was quite high so it made perfect sense to get loans in US dol- lars, converting them to rupees and hedging it to lower the risk. Since our core business is SME-focused, it made more sense with our low lending rates. The DFC loan came at a very low interest rate. In addition to this, we have a $15 million loan from FMO. In all, we have raised $55 million in debt in the recent past, which has helped us offer more attractive interest rates. Of the two loans, the DFC loan is allocated for the SME sector, and 40% of this is assigned to women-led micro-enter- prises, which we are currently in the process of finalizing and disbursing. In terms of equity, we had a remarkably successful rights issue that took place during the most challenging of times, when COVID-19 I want SDB bank to be was impacting businesses across the country. recognized as a bank It was the first rights issue that took place dig- itally for the first time in Sri Lanka. We raised that helped Sri Lanka's Rs1.5 billion through this rights issue which development agenda, was oversubscribed by Rs.200 million. leveraging tech to provide In a post-COVID phase, lending has become banking services that cut much riskier. Leading a development bank, across all corners of the where do you see NPLs heading? Overall, the NPLs of our bank are at 4.5%, country, thereby creating which is one of the best in the industry. In an impact on the lives of fact, other banks of our size have an NPL of over 8%. The reason NPLs are controlled more Sri Lankans

58 ECHELON.LK APRIL 2021 What advice would you on the world, not just yourself. give to a person aspiring And it is always good to have a to be in a leadership posi- mentor. Finding a mentor can tion like you? fast-track your life as well. I have Firstly, you need to find your pas- learned a lot from my mentors. sion. Secondly, you need to have And one last thing is, you have the drive and find that one thing to love what you do. If you hate that inspires you. Those two can what you are doing, then you take you to the place you want should not pursue it. Be ready Ultimately, we are to be. Always find that passion to learn and embrace change. not the judges of and inspiration. That passion can Always remember, change is our work, but our potentially have a positive impact constant. consumers and stakeholders are. Their views, beliefs, and trust in us are Technology is rapidly transforming the banking industry. How will banking be different five years what will matter from now in Sri Lanka? I think banking has to remain what it is today to some extent. Because ultimately, you cannot have an app, and someone unknown managing your money. So, the physical infrastructure has to be in place for the next few years, as it’s an important factor for establishing trust in the mind of the cus- tomer. That said, I believe banking relationships will be different. People will come into the bank Leaders need to keep an eye on the future for more relationship building, rather than transac- while managing everyday challenges. How tions. Earlier you would visit a bank to carry out a do you balance these competing demands transaction but now most of your banking needs can as a CEO? be done through an ATM or digitally. So, the need It requires a lot of learning. And also unlearning. to visit the bank is no longer there unless you wish Sometimes you have to explore areas that you to seek advice on financial matters. Banks may also are not familiar with and have no interest in diversify into other areas such as the stock market, either. I am trying to learn new things daily, insurance, and other specific service partnerships new concepts from totally different areas, just that are relevant to customers. to understand and maybe apply it someday. I was an engineer by profession and studied What is your vision for the future of SDB bank electronics and telecommunication, and I guess and how do you hope to get there? that is why I look at things from a different I want SDB bank to be recognized as a bank that perspective. I try to stay up to date most of helped Sri Lanka's development agenda, leveraging the time and I also challenge the system to tech to provide banking services that cut across all think innovation. With tech advancing rapidly, I corners of the country, thereby creating an impact believe the way we do banking can also change. on the lives of Sri Lankans. Although our bank is not connected with Ultimately, we are not the judges of our work, but international businesses, I always stay focused our consumers and stakeholders are. Their views, on what is happening out there, as it helps to beliefs, and trust in us are what will matter. We keep an eye on the future and the ever-chang- will continue to work with people to uplift them, ing regulatory environment both locally and making it possible for them to achieve their dreams. internationally.

APRIL 2021 ECHELON.LK 59 ACCELERATING ONLINE

DARAZ'S MANAGING DIRECTOR RAKHIL FERNANDO ON GROWTH, E-COMMERCE OPPORTUNITY, AND LEADING A YOUNG TEAM

A substantial percentage of general merchandise are sold online, unleashing a golden ticket for the e-commerce giant RAKHIL FERNANDO Daraz. Rakhil Fernando discusses how he overcomes challenges while leading Sri Lanka's digital economy with a storm Managing Director, Daraz Sri Lanka

E-commerce has massive potential in Sri Lanka. But to capture that, Daraz will have to scale fast. How is that working out? Our shareholder, Alibaba Group, expects us to have triple-digit percentage growth every year. Today anything short of 100% year-on-year growth makes us look like underachievers. Momentum in Sri Lanka is accelerating. When I took over Daraz 20 months ago, we had closed $9 million in sales that year. Our run rate based on this month's sales should take us to between 100-200 million dollars in sales by the end of this financial year. When I took over the market, the company was at the end of its startup phase in Sri Lanka, with the right people getting into the right roles. My first challenge was to transition from a single point of decision-making to a decentralized model. I now focus on strategy, deciding on what growth areas to focus on and providing guidance for setting the right goals, on what we can achieve as a business against how much we want to spend, and what the market can absorb.

You make this transition sound easy. is stepping in from the outside. Was it? I tell my staff that I'm just It was a challenge for sure. On here to provide you with the the first week I joined, we lost resources you need to get the job the heads of our marketing team done. That's my job, giving people and traffic ops team. Traffic Ops the environment, the resources, is the department that essentially the funding, the technology, the drives the conversion on the site. appropriate knowledge to get the I had to build these teams as soon job done. as possible. If you don't balance the growth The second thing is building demands on your staff by giving trust. It takes a long time for them the best environment to people to get behind new leader- work in, it'll be tricky to sustain ship, especially when somebody 100% to 200% growth per year.

60 ECHELON.LK APRIL 2021 My first challenge was to transition from a single point of decision- making to a decentralized model

HOW I BUILT TRUST

Building that trust for people to follow you by empowering them. If you make them feel like they are in charge of their destiny at the company and trust them to make those deci- sions without being unjustly pressured, they will perform for you.

When you lead a young team, they will start to trust you when they feel val- ued. And that's very impor- tant in any organization.

The average age at Daraz is 26 years. Many of these guys are in their first job, and they have no benchmark of how corpo- rate environments work. So, it's crucial to have a condu- cive environment so they can believe in themselves, trust their decisions and drive their ambitions.

APRIL 2021 ECHELON.LK 61 ACCELERATING ONLINE

ON EMPOWERING

I give the employees the bandwidth to run their verticals just like they are CEOs of their verticals. I think that's the best way for me to empower everyone to achieve Sri Lankan high growth targets while building an owner- companies are ship culture. Having the right people in key usually hierarchical roles is vital though. in structure. In With the right kind of culture and right people, you can grow the business at contrast, I wanted a rapid pace. If not, everyone will be moving to create an as fast as the slowest member. evolved company People should come to me at two when it comes to points. When there's a problem they can't fix or when they fixed the problem. people's position and power.

edge, and processes with the best practices. But it's up to us to decide How did you go about creating a new culture? how we tap into the resources and deploy them efficiently. There are It's how I behave in the organization. I plenty of best practices to learn from other markets, allowing us to find want to create a company where people a model without everyone just mindlessly working with blinders on. can speak up. Every opinion is valuable; however junior you are. So, we've created You’ve been on the job for nearly two years. How has that time helped you a flat organizational structure. frame what you want to achieve? It's also informal, and anyone can In the last 20 months, things have progressed exponentially, much come and speak to me about anything. faster than we thought they would. Everyone can communicate with Because of this, we can offer our audience value added services everyone else leisurely, and that's where on top of traditional e-commerce. For example, Fintech is an area I’m the joy of working with each other lies. very keen to explore and kicking the tires to see which direction we Sri Lankan companies are usually are hoping to take it. Consumer centric financial services is a massive hierarchical in structure. In contrast, I opportunity in Sri Lanka, and we wouldn't have looked at going down wanted to create an evolved company that path had the business not been at this stage. We are growing well, when it comes to people's position and and now have well over a million people visiting daraz.lk every month. power. Status and power don't come from the length of service in the company but What do you intend to offer as financial services? from how you perform. For instance, we I can't reveal too much as we are still in the explorative phase. However, have a 24-year-old responsible for building it will be products and services that put the customer at the centre a $20 million vertical from scratch for us. of the experience. My personal experience with banks in Sri Lanka is far from customer centric, so I think there is a huge opportunity Do you consider yourself lucky to have had for any player to shift their focus and drive a customer first strategy. the freedom to define culture? The problem is most financial institutions are throttled with legacy Daraz operates in five markets, and what's technology and processes, which make them very unagile to make great is that each one has the freedom to changes. Sometimes it’s easier to start with the clean slate, and that is run as an independent business. We get what we hope to do. Our first announcement in this area will be made support on technology, funding, knowl- in a couple of months.

62 ECHELON.LK APRIL 2021 How have your priorities evolved with Daraz scaling? What advice would you have for some- The priority is always customer experience. My short-term goal or my one starting their first business? long-term goal is to make sure that Daraz always considers the customer first. That's at the heart of what we do, whether it's products or the service. For me, the first thing you must For example, to expedite refunds to customers when they make returns, understand is what the opportunity we have streamlined the process so they are refunded in a couple of days. is. If there is an opportunity, a solution is out This decision has made us absorb some losses so the refund can be done there. Now, you may be unlucky because the faster. But we are still at the stage where we must gain more customers. solution you come up with could be wrong, Ecommerce is just 1% of the market, and at this stage, it's about building or you may not have the resources to build trust. So those losses are fully justified to make the experience more pleas- the perfect product. But by not addressing a ant for the customer and in turn returning to the platform. problem/opportunity, you are a non starter. We have shareholders that align and are happy to absorb short-term losses and focus on the end game. People create startups and then ask The end game is to become the most widely used commerce-based where's the market? Where's the platform in this country, both offline or online, that people trust to buy or growth? Is it worth the effort? Some people sell or trade. If it becomes successful, the opportunity is far more signifi- don't quantify the market. Many people build cant than the short-term hit and customer experience is key to that plan. products based on their personal needs and usually, the scalability is limited. What are you most excited about, and what's most challenging to you? The company is still growing. The opportunities that my current team members get exposed to make working at Daraz very exciting. Also, take time to understand the cus- It makes me happy that my very young team in the company have very tomer. For instance, many businesses bright futures ahead of them working for us. They have big ideas and big that pitch partnerships to me say that “you” visions about their future and it’s awesome to think that Daraz provides can target high spending customers. Whereas them with a platform to achieve that. I don't want to target high spending cus- Secondly, we are just scratching the surface of the potential of tomers, I want to target everybody else. I’d e-commerce. If we maintain the same growth for the next 24 months, we rather have 20 million people spend Rs. 100 would be significantly bigger as a company, and that's very exciting: more with Daraz, than 10,000 people spending prominent in terms of the number of people who work with us and the Rs. 10,000. number of customers we address. What's daunting? Both the global and local macroeconomic situation Ensure that the people you're creating is always on our minds. There's always something looming that is out of a startup with are aligned with you your control. Many of those factors affect consumer confidence, FX rates, and contribute something to the equation. trade, etc. But sometimes you just have to forge ahead. Regardless, I think Also, don't get stuck up on the percentage the growth prospects in Sri Lanka are looking very attractive. of the company you own. You are better off with 10% of a 100 million dollar company than 100% of a million-dollar company.

Make sure you take in investors that can create long-term value. This is the biggest mistake I made when raising money for my companies in the past. You get so excited about investors coming in, We are still at the and then you don't think about what value these guys will bring down the line. Choose stage where we must investors who will stay with you through the gain more customers. journey. If not, you locked up a percentage of the company with people that don't bring Ecommerce is just 1% of value in the long term and it will hinder future the market fundraising rounds.

APRIL 2021 ECHELON.LK 63 FREEDOM TO INNOVATE

SANJI DE SILVA ON DEMAND FOR HEALTH LOGISTICS SOFTWARE, GOING GLOBAL AND SEGMENTING THE DAY INTO FOUR SESSIONS

Serial entrepreneur Sanji De Silva says the pan- demic has disrupted two things he cares about; his daily morning cycle ride, and the demand for his company Bileeta’s health logistics manage- ment software globally

64 ECHELON.LK APRIL 2021 TELL US WHAT YOUR TYPICAL DAY LOOKS LIKE? I wake up at six. I segment my day into four sessions when I’m in Sri Lanka.

SESSION ONE I used to cycle several times a week from 6 am to 7.30 am, until the pandemic dis- rupted that routine. My work segment begins when I'm at home in the morning, usually dealing with emails and commu- nicating with clients overseas.

SESSION TWO I leave home for the office after the morning rush hour. At the office, I start my second work segment going up to lunch.

SESSION THREE This starts after lunch. I usually work late say until 7 pm or so. Before the pandemic, I used to travel frequently so these sessions don’t work the same way when I’m on the road.

SESSION FOUR I complete my fourth session, which starts after dinner, past midnight. But this session isn’t one I do every day. I'm on this general schedule 70% of the time when I’m in Sri Lanka.

APRIL 2021 ECHELON.LK 65 FREEDOM TO INNOVATE

How do you build a globally competitive business out of What about entrepreneur- global, and branding are the chal- Sri Lanka? ship excites you? lenges we had to overcome being I first thought of a global business in 1997 when I was Entrepreneurship for me is an IT product company from Sri studying in the USA. I launched a web site to outsource a steering wheel to achieve what Lanka. software projects from the US to IT companies in India I want; to be an innovator and to and Sri Lanka, making it possible for these IT companies build things. Tell me about a leadership to go global. The Y2K bug scare back then had increased Innovation can be limited lesson you learned the hard demand for software outsourcing. This is also when I in a company because there way? decided to start an IT company in Sri Lanka since it was are boundaries when you are You should treat your team fairly expensive to do it in the USA. These were the early days employed. I became an entre- and be sincere about their inter- of my ICT entrepreneurship. preneur as a means to thrive as ests while following your mission What is unique about Sri Lanka is the quality of the an innovator. as a leader. When your team is tech talent. This is key for success in the IT industry. Further, innovation doesn't fully invested in the company, I got into ERP (enterprise resource planning) software pay unless you add entrepre- they will be efficient and they will by accident. We were developing various products when neurship to it. Entrepreneurship do their best work. Some of my we identified a requirement for ERP because customers makes it possible to take inno- team have been with me for 20 here were unable to adapt products from western firms vation to customers but it also years. I give them opportunities, to their unique processes and local conditions. With comes with many challenges as ensuring they grow. That’s some- standard ERP, customers get confined to a solution, often you are simultaneously taking thing I believe in strongly. something which isn’t suitable. We compete with global entrepreneurial risks. companies by offering customized ERP solutions. How do you effectively align However, our business was not scalable as we had to What is challenging about people to a vision while customize the software for each deployment. entrepreneurship? simultaneously keeping an As a solution to that, we came up with an enterprise By deciding to build our eye on performance management software development platform. The two outcomes of the own products at Bileeta we took to see if it’s all working? platform are; now all our ERP solutions run on it, and on a huge challenge. Having good We have learned over time what the second, eLMIS, a relatively new cloud-based health talent gave us confidence. But the critical KPIs are for our busi- logistics product, also runs on it. The finest feature of this building the product, taking it ness linking the output of each platform is its high configurability and customizability. As a result, we can meet customers’ unique and challenging demands with ease. Now, there is no need for code level modifications to onboard customers. We now have an array of products to tightly meet customer requirements. How do you become successful out of Sri Lanka? Talent is one of the key benefits of being in Sri Lanka. The talent here is capable of building innovative solutions. When we launched this platform in 2014, it was selected as the best software in Sri Lanka at National Best Quality ICT Awards competing against 190 other products made by Sri Lankan and foreign companies. We first tested our products and proved ourselves in Sri Lanka and then we took it global. You have to identify your niche and then build some- thing world-class. That's what we did with the eLMIS, in the health logistics vertical. Entrepreneurship for me is a The first eLMIS implementation in Nepal was done steering wheel to achieve what on a tight schedule including many customizations. As we had the platform, we implemented it in five months I want; to be an innovator and to to cater to the entire country. build things

66 ECHELON.LK APRIL 2021 employee with the output of the company. First, we measure people from the competency level, then we measure them based on their communication skills, and then measure them based on their commitment. We support them to grow in each of those areas. If their interests are not in the right place that's when we have to make a decision. Besides those rare cases, we nurture human capital because that's the core of our business. You should treat your team If you are optimistic about the future, why would fairly and be sincere about their that be? Covid-19 will change peoples’ lifestyles. There's interests while following your going to be less travel, many people will work from mission as a leader home at least some of the time and to enable that, technology will be central. We are delighted to be a part of that technology stack. We offer cloud solutions that work on mobile phones; both critical for remote working. We are facilitators for this new lifestyle. On the other hand, Covid-19 has resulted in a mon- umental health logistics challenge to deliver vaccines and medication to most people in a short time, every- where. We have the best health logistics management software in the world, that can be deployed in many Is there something you wish This technology will also be countries. We’ve decided to offer this software at a you could change about your accessible to small enterprises concessionary price. We want to offer this benefit to leadership story so far? to do their day to day business as many countries as possible. There are certain things I wish I as well. In the future, machines had stuck with. For example, the are going to watch your business, As a leader, when you look back, what will matter outsourcing website launched but and they will guide your deci- to you in terms of legacy? I gave up in 2001. Later on, such sion making. Enterprise resource What leaves me ecstatic is seeing products we work outsourcing sites began planning software are not just developed in use. Also, seeing organizations benefiting to scale. I was way ahead of the bookkeeping systems, these are from our innovations and the hard work we’ve put in, times. decision-making tools. That's that's the best feeling. Witnessing how the eLMIS solu- Back then I didn’t have a men- going to come in handy, and tion has helped countries is also extremely satisfying. tor or someone to talk to about small businesses will become I would like to see myself as a person who empow- this, hence I wasn't confident more efficient due to this. ered industries and communities with technology. about the venture. I was 25 years How do you manage work- old then but now I feel I could What is challenging about leadership and how do life balance? have managed that better. you deal with that? It relies on how supportive First, you should identify your game plan. If What do you think your your family is with the commit- you are focused on each month's profitability, then industry’s future looks like? ment and engagement required you're probably not investing enough for the future. In the next five years, ERP to run a company. It demands Tech companies in particular cannot only focus on will be something that every com- time and that's an opportu- short-term profitability. pany, even small to medium-sized nity cost. Don’t get me wrong. If your vision is to build a 10 million dollar, 100 ones widely use. To prioritize your family time million dollar, or a billion-dollar company, then you Technology like artificial intel- is important but unlike being have to keep investing instead of obtaining profits, ligence, machine learning, and employed, entrepreneurship or because your vision is bigger. It helps that ROI is higher process automation will reach leading an organization demands for IT companies. maturity in the next five years. far more of your time.

APRIL 2021 ECHELON.LK 67 GAME CHANGER

THE REAL ESTATE EXPERT Chandaka de Soysa, CEO and Founder of Acquest, is on a mission to bring transparency, visibility and accountability to Sri Lanka’s informal real estate market

ell us why you founded Acquest How has the journey been thus far, and and the objectives you had for the what sets Acquest apart? company? The company has come a long way to become I ventured into this industry mainly the undisputed market leader. The journey because I have always been passionate has been challenging at times. In terms of T building a company I have made my fair about and interested in all things real estate, from property development to share of mistakes along the way, but we architecture. I started in real estate brokerage and trans- are much better for it. I’m excited about the actions back in 2007, which still is a core part of what future and unleashing the potential that Acquest does. Acquest has to make a big impact on our I quickly realised that the real estate services space was real estate market. We have got to a position very informal, and it was certainly not client-centric or where we can scale aggressively because of service driven. This initial exposure helped me identify capabilities and expertise we have developed a massive gap in the market, an obvious opportunity to over several years. add real value to anyone transacting property, and to help The biggest factor that sets Acquest apart clients make some of the most important decisions they is our in-depth understanding of the real would make. estate landscape. Our unmatched market Acquest was established with the objective of scaling intelligence, derived from the visibility we our operations and leveraging our in-depth understanding have across the entire real estate market, is of the real estate market to help our clients make informed the foundation of the services we provide. real estate decisions. This is something that cannot be replicated easily, this expertise has been built over sev- eral years because of the approach we have taken and the passion we have for what we do. Our experience, gained over the last 14 years - completing over 1,500 transactions valued at over $250 million, handling numer- ous complex transactions and being involved

68 ECHELON.LK APRIL 2021 My vision for Acquest is to responsibly guide the real estate market, be the real estate partner of choice for all stakeholders in the industry, and constantly strive to improve the way our industry operates

Chandaka De Soysa, CEO and Founder of Acquest

APRIL 2021 ECHELON.LK 69 GAME CHANGER

in most of the large-scale real estate devel- opments in an advisory capacity - gives us an edge. The range of end-to-end services we pro- vide allows us to service varying real estate requirements our clients have and our exten- Our unmatched sive inventory of over 8,000 property listings market across every property type allows us to give our clients unbiased real estate advice. intelligence,

What is the outlook for the industry and derived from what’s your vision for Acquest? Our real estate market has the potential to the visibility we grow exponentially. The rate of growth of have across the our industry is mainly dependent on macro- economic policies that will allow for steady entire real estate single-digit interest rates making it conducive for a non-existent mortgage market to grow. market is the This, coupled with a growing middle class, will result in an exponential increase in demand foundation of for housing. Another key factor would be the services we improving opportunities in Colombo result- ing in increased urbanisation, which in turn provide will lead to an increased demand for housing in the western province as most high paying jobs will be created in Colombo. Also, as Sri Lanka further develops as a tourist destination, we will see increased As a leader, when you What are the trends shap- demand from foreigners looking at second look back, what do you ing the property market homes or investment opportunities in Sri think will matter to in Sri Lanka? Lanka. you about your legacy? Increasing land prices and the We expect improvements in infrastructure Honestly, I’m not concerned increasing cost of construction to gradually dilute value which is currently about my legacy. What matters makes ownership of landed concentrated in central Colombo. to me is constantly challenging property prohibitive because of My vision for Acquest is to responsibly ourselves and improving our affordability. This, coupled with guide the real estate market, be the real estate services to add unprecedented evolving lifestyles where con- partner of choice for all stakeholders in the value to Acquest’s clients. I want venience is important, leads us industry, and constantly strive to improve the Acquest to be the trusted real to anticipate an increasing shift way our industry operates. estate partner for investors look- towards condominium living. ing at investing in Sri Lanka by What’s the one leadership lesson you addressing the perceived risks As the founder and CEO learned the hard way? of entering a frontier market, of your business, how do In the past we have structured our expansion and facilitating FDI into the real you view your purpose? on a model where we expected our teams estate industry and hospitality I view my purpose as driving the to drive for results on their own initiative. sector. Most importantly, I want company’s strategy, expansion, This approach hasn’t proven to deliver the to be able to look back and see and vision by enabling a team of outcomes I expected. I have realised that that the real estate industry is passionate and ambitious individ- structure, processes, properly thought-out better off because of the posi- uals at Acquest to achieve their targets, and detailed executable strategies tive influence Acquest has had full potential and deliver great are essential to move an organisation forward. on our industry. outcomes for our clients.

70 ECHELON.LK APRIL 2021 14 years of industry experience I want to be able to look back and see that the real estate industry

1,500 + is better off transactions because of the positive influence Acquest has had on our industry

$250Mn + of real estate transacted

Acquest represents

8,000 + several foreign property listings institutional investors

APRIL 2021 ECHELON.LK 71 BIG VISION

THE IMPACT BANKER Before becoming Cargills Bank’s Managing Director and Chief Executive, Senarath Bandara managed the largest state bank in the country. Now, at the helm of Sri Lanka’s youngest bank, he is determined to make a big impact

I passionately believe that banking services should be accessible to all and provide equal opportunities for every citizen to improve their Senarath Bandara Managing Director and living standards Chief Executive of Cargills Bank

72 ECHELON.LK APRIL 2021 You have moved from managing the largest bank We are now playing an active role in the development in the country to taking leadership of the newest of the digital payments space in Sri Lanka, working with local entrant into the sector. What excites you many FinTech partners to facilitate their access to the people about this challenge? through our platform. We have also deployed technology to Having worked in the state sector throughout automate processes, improve our customer service expe- my career I was excited by the opportunity to rience, and reduce paperwork as we are conscious about serve in the private sector and still contribute our responsibility to the environment. to the development of the country. Cargills is a trusted household name with a legacy of over How do you intend to support the development of the 175 years, and leading a company within such Agriculture sector? a reputable group motivated me to take on the The backing of the Cargills Group is a key differentiator role. Importantly, the vision of Cargills Bank in our approach to developing the agriculture and dairy “to be the most inclusive bank” resonates with sector. The group’s field officers have established strong me. I passionately believe that banking services relationships with farmers, and provide them with market should be accessible to all and provide equal information, technical expertise, training, and a marketplace. opportunities for every citizen to improve their Cargills Bank enhances this offering by providing financial living standards. This is vital for the sustainable services and training, giving farmers a complete solution. development of our country. We provide concessionary lending facilities and financial grants through the Central Bank’s re-finance schemes and How is Cargills Bank differentiating itself in the other development agencies to enable farmers to invest banking sector? agriculture modernization and dairy development, allow- Cargills Bank is a licensed commercial bank ing them to improve their productivity and resilience to and is authorized to carry out business in any climate change. Further, we have established branches sphere of banking. Our business model focuses closer to farmer communities across the country, and plan on being a retail bank, while supporting the to launch a Mobile Branch to serve customers in interior SME and agriculture sectors to develop the areas with limited banking services. rural economy. The strong links that the Cargills Group has with the agriculture, dairy and SME sectors allows us to support farmers, entrepreneurs and people engaged across the value chain. The market provided by Cargills instills confidence Leaders need to keep an eye Can you identify in farmers and entrepreneurs to invest in their on the future while managing the one leadership les- businesses. Meanwhile, the bank provides the everyday challenges. How do you son you learned the finance to capitalize on these opportunities. balance these competing demands hard way? Technology is critical to how we differenti- as a CEO? You must believe in what ate ourselves. We became the youngest bank For an organization to thrive, it must you do and have the passion to establish an island-wide network through adapt to changes in the environment and commitment to face our agency banking operation with Cargills and collectively drive forward towards adversities knowing that Food City (CFC), reaching people in all parts a common goal with identified strategies. you are on the right track. of the country. Our ‘Cargills Cash’ solution We see tremendous growth opportunities To deliver growth for the enables all checkout counters across the CFC for Cargills Bank and understand that we benefit of all stakeholders network to function as ATMs and cash deposit must remain agile to deliver on this prom- takes hard work, determina- machines, allowing our customers to deposit ise, adapting to changes in the operating tion, and composure to face funds, withdraw cash with no fee, remit money environment. I am fortunate to have an challenges. If you believe locally, and pay for groceries and utility bills. experienced and capable team that is fully in the path you have taken, This has allowed us to expand our reach at a low aligned with the objectives of the bank you will find solutions to the cost, which is critical especially as consumer and is committed to deliver upon them. challenges coming your way preference shifts towards digital solutions and My role is to support and guide the team, and help maintain focus on physical branches become less viable. while foreseeing the journey of the bank. the organization’s goals.

APRIL 2021 ECHELON.LK 73 GROWTH CATALYST

KEEPING PACE WITH TECHNOLOGY’S RAPID UPHEAVALS

Thushera Kawdawatta, Chief Executive Officer at Axiata So, what makes your job exciting to you? Digital Labs which helps telcos, banks and fintech And what are the significant achieve- though successful digital transformations, has orches- ments of Axiata Digital labs under your trated phenomenal growth: an integral part of that leadership? strategy is giving people space to work, rest and grow. It took two years to be where we are now, and that is something! I am gen- uinely pleased about the firm's massive and rapid growth, which is something rarely seen in the industry. We achieved this growth while preserving our core values: engineering supremacy and n this age of digitization and transformation, you innovation, and the culture that we have been at the helm of Axiata Digital Labs driving have embedded in our work environ- its growth. What has been the most exciting and most ment. This was done by empowering challenging part of your job? our teams equipped with focused skills Finding and traversing a middle path between and competency development models. I growth and stability is always a challenge. A We then aligned teams with living by fast-growing company can easily stray away from its core val- our core values, strategies, and mission. ues, principles, and strengths, or what I like to call its core They not only measured performance arbitrage. Since commencing operations in January 2019, ADL but kept reminding everyone about the has been on a trajectory of rapid growth. Our team expanded company's vision. This helped everyone exponentially from 200 highly motivated professionals to over in the company focus on the core objec- 1,000 by March 2021. tives. At ADL, we focused on maintaining and even consolidating In 2020 we scored a delightful our engineering supremacy and culture of innovation. achievement when ADL and Dialog We employ some of the smartest, brightest, and most experi- Axiata clinched a coveted TM Forum enced engineers and professionals to provide services designed 2020 Excellence Award in recognition of to bring successful digital transformation and ubiquitous con- outstanding accomplishments in Digital nectivity to leading telcos, banks, and fintech in the region Transformation across Communications and globally. In a nutshell, we help our clients optimize their Service Providers (CSPs), Solutions superior customer experience, bringing the improved top line. Developers, and Innovators Globally. ADL has over 150 solutions delivered predominantly on digital As we embark on a journey on process transformation, including robust data science & engineering, maturity, ADL was assessed as the first hyperscale, IoT and middleware, FinTech, Selfcare, hyper-au- Sri Lankan company to be appraised tomation. at Level 3 for CMMI V2.0 which we While we continue to grow at a rapid pace, we are also achieved within one year. We also won mindful about securing our innovative culture and work ethic a gold award from TM Forum for a cat- without exhausting our team. This, I believe, is crucial to sus- alyst project on building a marketplace tain growth and also be consistent with what we promise to ecosystem. Winning these awards is deliver to our clients. our proudest moment yet.

74 ECHELON.LK APRIL 2021 What is the one leader- ship lesson you learned the hard way? Even as a company grows, we need to cre- ate some space for people who are taking the company forward on a growth trajectory. As we need to accelerate the growth, we ensure everyone involved is given a break and space to rest. For me, I had to learn when to push but- tons and when not to so that the entire com- pany moves seamlessly towards its goals.

What advice would you While we give to your younger self from 10 years ago? continue to Do not focus on turn- grow at a rapid ing weaknesses into strengths but have a pace, we are strong focus on consol- also mindful idating your strengths. Everyone is unique, about securing appreciate that and do our innovative what you love to do, and culture and work work on what you are good at. The strengths ethic without we have are the pillars on exhausting our which we build success as a company and indi- team. viduals working here.

APRIL 2021 ECHELON.LK 75 VISION POWER

REIMAGINING CONSTRUCTION

INSEE Cement’s Chief Executive Gustavo Navarro is excited about three things: a new country, a new challenge, and more fascinatingly, a booming con- struction industry.

ith over 25-years of industry experience under his belt, Gustavo was elated to start his new journey in Sri Lanka with the opportunity to navigate the direction of Sri Lanka’s construction W sector. His goal: to shift the industry towards more sustainable construction and responsible waste management, while also integrating digital technology and infrastructure to reimagine construction to meet the esca- lating pace of development, including AI in construction and 3D printing.

INSEE Cement operates in probably one of the most challenging and volatile industries in the country, exacerbated by the Covid-19 pandemic. In that context, what has been the most exciting and most challenging part of your job? Primarily, it is exciting to be part of this industry because we are building an integral component of society’s foundations. Not only in Sri Lanka, but all over the world, and especially where there is a need for better infrastructure. It also presents a huge responsibility because we are talking about building schools, highways, bridges, and hospitals. In terms of challenges, especially last year because of the pan- demic restrictions, it has been difficult for us to maintain supply. Often, we think about food and medicine as essential goods, but building materials also ought to be considered essentials because ultimately society depends on safe and rapidly evolving infrastructure. The construction industry was the hardest hit by the first coronavirus wave and the lockdowns to contain it. Since we are the only company to produce cement from

76 ECHELON.LK APRIL 2021 scratch in the country, we were able to meet the demand by safely restarting our production opera- tions under stringent health and safety protocols. No one at INSEE was infected by Covid-19 and this is a testament to all the measures we took and also to the dedication of our people. I took office in June 2020, and my entire first month here in Sri Lanka was under quarantine. When I finally came out it was the start of the second wave of the pan- demic. However, even though the pandemic is unprecedented, my response to crisis situations is to first and foremost ensure my teams are safe, motivated and enabled to do what they do best, and this strategy has helped us through the worst period of the pandemic.

Primarily, it is exciting to be part of this industry because we are building an integral component of society’s foundations Gustavo Navarro Chief Executive in INSEE Cement

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How do you balance the conflicting roles of managing everyday challenges while building the foundations for the future? This industry is very operations-oriented. At INSEE, production is a 24-hour operation and 60% of man- agement time is taken up with solving technical glitches and operational problems. Problem-solving can be very exciting but we are also mindful that we need to devote enough time to plan for the future. Amidst the frequent operational meetings, we force ourselves to find time to meet thrice a month to plan I am proud that and strategise. our company is Additionally, we have a steering committee that is occupied with formulating special projects that will influencing the propel the growth trajectory of the company. We also shift towards devote time every day to speak to our people and solve their problems, and I feel this is a particularly sustainable important thing to do because they are the future construction. of this company and the ones who will take us to We are where we want to be. Once a month we also evaluate performance, pioneers of identify new skills development and training needs, greener and so the level of engagement with our teams is remark- ably high at INSEE: this is something important to us. sustainable cement brands And how do you think INSEE can influence the future of the industry? Product is key. I am, and always have been, a big believer in constant innovation and enhancing pro- ductivity. We do not see ourselves competing only in the Sri Lankan market but the world! Innovative oped country is yet to be industry worldwide; sus- products and productivity are the ingredients needed built. I am happy each time tainability. I am proud that to succeed. We also need to be agile which requires I look out my window and our company is influencing us to embrace digital transformation. As I see it, the witness the infrastructure the shift towards sustain- equation is clear: digitalisation plus agility equals development taking place. able construction. We are productivity. Infrastructure is the growth pioneers of greener and sus- The company is doing well but we need to per- of the construction industry tainable cement brands, and manently engage in improving productivity and in the country, and we need we are promoting these and competencies, deploy technology so that we can to be part of it. We are also introducing the concept of produce great products with fewer resources. INSEE under obligation to be part sustainable construction to is today the market leader in Sri Lanka but five years of its journey, I believe as Sri all our clients. We also have a from now our vision is to be the market leader in Lanka’s leading cement pro- waste management division both sustainable construction solutions and waste ducer and industry leader. that is driving sustainable management. The primary objective of solutions not just for the INSEE is to meet the pres- construction sector but the What are the factors shaping the future of the ent and future demands of rest of the economy as well. industry? the construction industry. Digital technology is fast Let us talk about Sri Lanka first, the beauty of There is also what I call making inroads into con- this country is that infrastructure development has a mega-trend shaping the struction and this is another a long way to go: everything it needs to be a devel- future of the construction area that excites us. Since the

78 ECHELON.LK APRIL 2021 pandemic, the construction industry globally has adopted digital solutions including deploying AI in construction and 3D printing. Sri Lanka's nascent state in digital transformation may not allow these solutions to be deployed here as yet, but in time we can expect digital technology to elevate the country's construction sector in leaps and bounds.

Competition is intense and self- improvement is

important but a As a leader, when you look back, belief in values what do you think will matter to you about the legacy? is critical Since I have several years behind me, one because that is thing that makes me proud is the privilege I've had to mentor and coach a generation what will carry of leaders that are today succeeding by you through themselves and taking up higher posi- tions than I ever did. I worked in different countries, so these are a new generation of leaders who are spread around the world. This is also another reason I came to Sri Lanka, because there is a large pool of talent in this company, and country, that we can develop. There are many Sri Lankans within the INSEE Group in senior Can you tell us about one leadership lesson you learnt the management roles and they are top-notch hard way? and excel in what they do. I would like to quote Charles Darwin here. He said, "The most successful of the species that survives is not the one that is What advice would you give to your the strongest or the smartest, but the one that is more adaptable to younger self from 10 years ago? change". I learnt this lesson the hard way in my career. I was part I would probably tell my younger of the leadership of Holcim, one of the leading players in the global self to continue doing what I do because construction industry. The leadership at Holcim were capable and that had got me to Sri Lanka! I will also strong but they could not adapt fast enough to a changing world say be more confident and believe in and Holcim soon lost its place to a fairly new competitor. The my values. Competition is intense and lesson for me was never to be complacent about your strengths. self-improvement is important but a belief Always watch the market, monitor your customers' pulse, plan in values is critical because that is what for risks, keep getting stronger and build for the future. will carry you through.

APRIL 2021 ECHELON.LK 79 ART OF SCALING

NIRANKA PERERA ON SCALING ECOMMERCE SOLUTIONS AND HOW THE BUSINESS CHANGED AFTER THE EASTER SUNDAY ATTACKS

Antyra Solutions was co-founded by Niranka T. Perera an enterprise grade eCommerce solution at and Rohan Jayaweera, and the initial core services a fraction of the cost. I believe that it is one offerings were a personification of their skillsets. of the things that takes us a step closer to Niranka discusses how the company transformed and achieving our goal, and I’m excited to see learnt to scale in the last two years where this journey takes us.

Can you give us a scale of success for the AnCom platform? We have had an extremely positive response for AnCom, with some of the What about Antyra’s future excites you? biggest brands in the country coming on As a leader in the digital space, we have a very lofty goal of board. I think the appeal of our enterprise wanting to democratize eCommerce – to make it possible for any Sri solution is that we offer brands a risk-free Lankan brand, irrespective of size or scale, to access a global market. option to test their capacity for eCommerce. Today, digital consumption is booming and bursting with opportu- Furthermore, the platform is an extension of nity in South Asia. All indicators point to rapid adoption. In Sri Lanka our know-how and best practices in man- too, digital adoption is growing across the spectrum and local brands aging an eCommerce business, which offers are increasingly taking digital seriously. For example, an eCommerce even those just entering the market a great solution that was considered a ‘good to have’ not long ago, has now place to start. The demand for a solution become a ‘must have’. We also see that brands are demanding more like this has translated to something very from their digital partners and are willing to push boundaries to stand tangible, and now AnCom generates more out. This opens many doors for companies like Antyra, which are revenue for us than any one client in our passionate about innovating, solving problems and helping brands portfolio. engage with consumers in new and inspiring ways. We are emboldened by this, and we Since we began operations six years ago, we have worked with over are continuously investing in this solu- 100 brands, handling large volumes in terms of revenue and a diversity tion portfolio. In less than a year, we have of products. Building on this experience, during the lockdown last now launched AnCom version 4.0. We are year, we introduced an eCommerce product suite called AnCom on a constantly speaking to our customers and subscription/ commission-based model to allow any brand to launch expanding to related services based on mar-

80 ECHELON.LK APRIL 2021 As a leader in the digital space, we have a very lofty goal of wanting to democratize eCommerce – to make it possible for any Sri Lankan brand, irrespective of size or scale, to access a global market

Niranka T. Perera Co-founder, Chairman and CEO, Antyra Solutions

APRIL 2021 ECHELON.LK 81 ART OF SCALING

ket demand as well. An invoicing solution coupled How do you maintain an To this effect, I have developed with AnCom is on the way, for example, and it would edge in the market? the “7-pillar framework”, an allow any offline transaction to be converted into an The reason we were able in-house process for eCom- online payment. to grow at this pace is because we merce and Digital Marketing. In We understand it is challenging to break into a take a very consultative approach my opinion, most eCommerce foreign market, as brands need to look at the entire to what we do. We understand failures in Sri Lanka are due to ecosystem and address all the little pieces that need that in the real world, business brands thinking of it as just a to seamlessly come together. With this in mind, objectives are often quantified in website. In reality, it is an eco- we are also taking an ecosystem approach, signing Rupees and Cents. As such, we system with so many different partnerships with payment providers, looking into take a holistic approach to solve a pieces. My team is trained on warehousing options in foreign markets, offering problem. Websites, ad campaigns this framework, and as part of branding, packaging and digital marketing services and similar deliverables are always an eCommerce strategy, we help and similar as part of a bundled eCommerce solution. quantified in the context of solving clients from price and packaging a particular problem. Most clients benchmarking, to in-bound con- How have you grown since founding appreciate this approach and it has tent marketing when we discuss Antyra? Why do you think you are suc- been our primary differentiator. eCommerce. cessful? I can honestly say that leading Antyra has been a journey of learning, with plenty of triumphs as well as sleepless nights along the way! Rohan Jayaweera and I co-founded the company because we believed we both had a skill set that could be monetized. Over the years, we have added to that skill set – figuring out how to run a business, how to manage power dynamics, how to manage people, how to use our knowledge and experience to innovate and define processes for assured success. One of the key challenges we faced while expand- What is it that you learned the hard ing the company was finding the kind of talent that way? we wanted. So, we began an internship program to There is this concept of working ‘in’ the train enthusiastic youngsters from scratch. About 50% business and working ‘on’ the business. Initially, I of the current leadership at Antyra joined us as interns was heavily ‘in’ the business. So, when we would or executives and moved up through the ranks. acquire a new client, I would be involved in the Throughout this time, we have held on to one guid- entire pitch, defining the strategy and execution. ing principle – performance is key, and we are hyper For instance, we managed social media for other focused on delivering on behalf of our customers. brands but had not updated our social in months. With every client engagement, we ensure we can I found myself spending more time on a client justify the time, effort and money invested in the work brand than I did on my own brand. we do. I think that focus has helped us build trust To me, this was my biggest mistake, the com- with a portfolio of clients who have been with us for pany was growing comfortably purely on referrals almost our entire journey. During the first four years in the past. Without specifically intending to at the of our operations, the company grew almost entirely onset, we become one of the largest digital service based on referrals from existing clients. providers in the travel and hospitality space in Sri I am acutely aware that certain people and brands Lanka, working with close to a hundred hotels. trusted us and took a leap of faith working with us In the immediate aftermath of the Easter Sunday when we were just entering the market. During these attacks, we lost millions in projects and over 40% difficult times, Antyra has waived-off millions in -ser of our retainer business. I realized then that we vice fees in honour of those relationships. As a team, needed a strong awareness development and sales we are grateful to everyone who gave us an opportu- process in addition to building a diverse portfolio nity to prove ourselves over the years. across multiple industries.

82 ECHELON.LK APRIL 2021 This was a turning point for me, as we finally What do you think are the forces, beyond your invested in ourselves. Implementing a SEO control, that are impacting your business? strategy on our website led to an 800% increase Antyra has helped Sri Lankan brands generate in leads generated in one year, for example. more than 10 Billion Rupees in online sales during the Taking the concept of ‘single point of failure’ last few years. To do this, we procure digital services from the computer networking industry, we also ranging from website hosting to media buying to maybe ensured our customer acquisition strategy did even paying an influencer abroad to promote a brand. not focus on any one industry. We invested in Ultimately though, we are helping Sri Lankan businesses our processes and knowledge sharing so that we sell globally and bring in foreign revenue. armed our team with the skills and workflow to So, if there is a risk that the country’s macroeconomic ensure continued client satisfaction. Over the conditions suddenly prevent foreign party payments, for last two years, this new outlook has been show- example, that can impact us overnight. Any digital agency ing results. I am proud to note that over half of is fundamentally dependent on many such foreign ser- the new business we brought in during the last vices. several months was purely based on the portfo- We have been sensitive to these risks and have global lio of work we have done and the visibility we partnerships and a regional office strategy to ensure we created in the market. To me, that is the primary can help our clients continue to bring home the dollars. benchmark of success; that we are building a brand that people want to work with, and it is Besides macro uncertainty, what other forces no longer centred around any one individual. do you think will shape your future? I see an increasing willingness of brands to go online, especially after Covid-19. This growth in demand sees new entrants of varying skill enter the market almost weekly. This has triggered price wars, with some agencies and individuals rushing to the bottom. I am afraid that if a brand has a negative digital mar- keting experience, they would believe digital doesn’t work for them, as they may not appreciate the nuances in the actual products and services offered. However, I am also optimistic that the growth in demand is also triggering awareness of digital services, with the spectrum of available customers growing at a pace to offer everyone a playing field.

As a CEO what is that the one thing you can’t ignore? We are a knowledge-based and people-centric business. The main investments we have made are in peo- ple. From higher-than-average salary increment scales to There is this concept building a learning environment that enables upskilling of working ‘in’ the and levelling-up as soon as possible, I feel we have created an environment that fosters employee growth. business and working Currently, Antyra is structured under three verticals ‘on’ the business. – Labs (technology), Studios (design) and Digital, with Initially, I was heavily each team providing specialized services. I’m proud of the fact that the company has grown in capacity with a ‘in’ the business. structured distribution of knowledge, instead of being To me, this was my centred around one or two individuals. It may have taken several years to get to this point, but I am confident that biggest mistake the effort was worth it!

APRIL 2021 ECHELON.LK 83 BOLD MOVES

THE DARING PATHFINDER

Sri Lanka’s furniture and woodwork industry has been conventional, traditional, hardly pen- etrated with innovation, technology and new thinking says Dhanushka Fernando, the CEO of Finez Furniture & Interior, is changing all that

When I started the business in 2015, I wanted to overhaul an archaic business model and bring in people with new thinking along with setting up a fully-fledged furniture factory

DHANUSHKA FERNANDO

CEO, Finez Furniture & Interior

84 ECHELON.LK APRIL 2021 How has Finez grown under your leadership? Business has grown considerably year-on-year. Over the last five years, we have expanded our production capacity and now operate four production facilities and employ close to hundred people. Meanwhile, we have outsourced certain manufacturing processes to smallholders so we can focus on our core strengths while providing opportunities for smaller woodworking businesses.

What is the most exciting thing on the horizon for Finez? We want to develop Finez into a total home retail brand: moving beyond furniture to other home-accessory items such as home décor, lighting, electrical appliances and also office furniture. However, our core priority is growing the online arm of the business. Our initial target is to generate at least 5-10% of our future revenue from e-commerce so we are building for that. We are also looking at Tell us about Finez and what sets it apart? creating a virtual online showroom space where people can check We operate in a very traditional industry our products and see how it will fit their spaces. space: woodworking and furniture manu- Finez has over 150,000 followers on social media, which is far more facturing, has remained relatively unchanged than any one of our competitors. This base gives us enough data to for generations in the heart of furniture man- understand consumer behaviour and preferences, and this gives Finez ufacturing - Moratuwa. a definitive competitive edge. Most furniture shops in Moratuwa have We are also committed to opening new outlets in urban areas the same design and style, they have never thereby expanding our retail footprint, but for now, we are expanding looked at design or innovation as a USP, the and upgrading our concept store to be a fully-fledged experience centre. differentiation is mainly on pricing! Hence Being part of the “Go Local” initiative and as a company that designs we realized that to build a new business and crafts 100% locally, the strength of small woodwork businesses are model we needed to move out of the norm. vital. Therefore, as part of our initiative to build a skilled eco-system With experience I decided to build a brand and uplift the industry, we provide them financial aid, training, and that explained the story, craftsmanship skill development facilities. and heritage of furniture originating from On the sustainability front we are working on giving “seed pods” Moratuwa. I needed to take hard decisions as a token of appreciation to our customers, this is a small step to get and bold steps. It was not easy. the people thinking and give something back to nature. When I started the business in 2015, I wanted to overhaul an archaic business model and bring in people with new thinking along with setting up a fully-fledged furni- How do you balance the needs of the future with ture factory. We focused on introducing new those of the present such as dealing with everyday designs and creating a unique brand identity challenges? while developing a pool of talent. When we started marketing on digital In my experience, you can never go wrong with a and social media platforms it was a nov- viable strategy and a clear plan of action. There will elty, not many businesses were advertising always be challenges and sleepless nights. There will be and spending on social media back in 2015. plenty of ideating and soul searching too! I balance my I realized the opportunity we had because role by creating a pool of talent within the organization digital and especially social media marketing that shares the vision of the company and are willing to was growing rapidly. For nearly two years we take the responsibility that comes with leadership roles. tested our design-based retail market-cen- Technology is a great enabler and leveler. I am an ardent tric business model. This is what sets Finez believer in technology, so I ensure that we are up to speed apart together with our constant focus on with the latest innovations and how they can shape the designing new products. future of this company and the industry as a whole.

APRIL 2021 ECHELON.LK 85 VISIONARY FOUNDER

CRYPTOGEN: ENABLING A SECURE DIGITAL TRANSFORMATION This startup, founded by Wasantha Perera seven years ago, is today a $13 million revenue company aspiring to build the foundation for securing the nation's digital transformation journey

What inspired you to start CryptoGen? first three years focusing on building the confidence with After graduation, I worked at one of the top tech the customers to invest with our company for Cyber firms in the country. Most of my peers were interested in Security. software development, web development, or digital mar- keting. I, however, quickly realised that cybersecurity was What were the early challenges? a bigger deal than most realised. Sure, cybercrime is a Few companies understood the importance of cybersecu- global threat, hackers are becoming sophisticated by the rity beyond protection from cybercrime and unintentional day, and unintentional internal data breaches are frequent. data breaches. So, I had to build awareness about a holistic Even well-protected Fortune 500 companies are not safe. approach to cybersecurity. Building any business is all Globally, the damage caused by cybercrime is estimated to about establishing relationships based on trust. There were reach $10 trillion by 2025. To put that into context, it's nearly several large firms in this space, but I was dauntless. We equivalent to the combined GDPs of Germany and Japan! delivered best in class, fully-fledged cybersecurity services Contrary to the view that cybersecurity was all about and helped clients build the necessary processes, govern- protection, I believe it's an enabler: a company protected ance structures and security protocols without which the against cybercrime is a company that will grow and retain mere cybersecurity tech is ineffective. loyal customers. I saw the potential for cybersecurity to I bootstrapped the company for the first three years, maximise revenue for businesses. confident of success - despite revenue just trickling - and sure enough, we hit gold! It took three years, but I had What makes CryptoGen unique? the fortitude to hold fast to my convictions. Our topline Cybersecurity is the backbone on which digital transfor- has grown 40-50% annually over the last three years, mations everywhere become possible and viable. Digital and the journey was pretty impressive and challenging. technology is rapidly changing the way we live, work and We service nearly all of the country's banks, not play. Digital tech is upending business models: everywhere just helping them keep their systems secure, but also and every day. Sri Lanka's nascent digital transformation fool-proofing their digital banking products such as mobile must gather momentum to avoid lagging behind the rest apps and payment platforms. Importantly, we help our of the world. clients maximise revenue by investing in optimal cyber- I built CryptoGen to enable Sri Lanka's digital trans- security solutions that best suit their needs. Three years formation because security and identity are integral to ago, we had a team of eight. Today the team is 70-strong, building successful digital products and services. I started and comprises of the best cybersecurity professionals in the company in 2014 with just three people. We spent the the country.

86 ECHELON.LK APRIL 2021 What was the hardest lesson for you? The hardest lesson for me was how to build and retain talent. Our industry is highly skills-driven. So reten- tion, incentives, and career progression is something we had to institutionalise. You may be a visionary leader, but without people to share in your passion and vision, you may as well be the only one in your company! Skills and talent are not uniform. Every individual is unique, so I had to learn to manage my team members differently, and it is a challenge. But if done right, it can be rewarding to a company and its people.

How can Sri Lanka fast track digitalisation? While aspiring to estab- lish itself as a financial hub for the region, Sri Lanka must also transform into a digital economy sooner or later. Both these require dynamic and robust cybersecurity legislation, including personal data protec- tion laws. We also need a central cybersecurity agency to protect I built CryptoGen to our institutions from the grow- secure Sri Lanka's ing threat of cyber espionage. If we can build a holistic cyber- digital transformation security ecosystem, banks can because security and have better digital payment identity are integral platforms and services. We will elevate the entire economy to a to building successful whole new level and see more digital products and foreign investments come in and multinationals setting up Wasantha Perera services. operations here.

APRIL 2021 ECHELON.LK 87 BOLD PATHFINDERS

THE AUDACIOUS DYNAMIC DUO Kukaraj Tharmasegaram and Urmila Chandrasekeram defied the conventional wisdom of startup gurus and cofounded Mintpay, Sri Lanka’s first ‘Buy Now, Pay Later’ payment facility

Urmila Chandrasekeram and Kukaraj Tharmasegaram Co-founders, Algoredge and Mintpay

88 ECHELON.LK APRIL 2021 Tell us how you founded are coming your way! We are truly privileged to be working with some of Algoredge? the leading brands in the country that are always ready to embrace inno- We co-founded Algoredge vation. Our recent partnership with Seylan Bank has propelled Mintpay to in 2019 primarily to solve new heights. What is more, the AI-based decisioning engine helps us keep business problems by lever- the default rate below 1%: 0.8% to be exact! This is an enviable NPL ratio. T aging the potential of artificial We were able to prove our hypothesis that AI can improve decision mak- intelligence. We first focused ing more accurately at a fraction of the speed. It was a big moment for us. on how we can help financial institutions to mit- igate risk and reduce losses. This led us to develop What is the big vision you have for Mintpay and Algoredge? our proprietary risk decisioning engine using AI We are in 2021 and it still takes banks several days to approve a credit card which we launched as Mintpay: Sri Lanka's first or a small loan. Algoredge is building capabilities to achieve credit approvals 'buy now, pay later' payment facility in the fourth in a matter of seconds, and this includes the mandatory KYC and stringent quarter of 2020 - the year of the pandemic. But due diligence banks need to perform. This is what we specialise in: we are two years ago, things were quite different. When solving the problem of delivering credit to those who are creditworthy faster. we first unveiled our idea for Mintpay, most said 'Buy now, pay later' is a popular concept globally and even PayPal has a this concept won’t work in Sri Lanka given the similar option. We have shown that Sri Lanka is ready for it too! Mintpay astronomical rise in NPLs and that Sri Lanka was demonstrates that our algorithm works, and we are tapping into a growing not ready for ‘buy now, pay later’ consumer base of tech-savvy young millennials and zoomers (Gen-Z) who may not be able to apply for a credit card or small bank loans because the What is Mintpay and how does it work? traditional credit evaluation processes cannot identify their creditworthiness. Globally, the ‘buy now, pay later’ payment method is changing the way people pay. Similarly, Mintpay is a ‘buy now, pay later’ payment option we launched in Sri Lanka that allows our consum- ers to buy what they want and pay later in three interest-free instalments over two months. There are no holds on the attached debit or credit card. As for consumers, this is a great way to manage their cashflows whilst enjoying the flexibility. The Mintpay is maybe proving to be just merchants can convert more customers, increase what Sri Lanka needs basket size, and drive sales, all while reducing the burden of collecting cash on delivery. Mintpay deploys an AI-based decisioning engine developed by Algoredge to score consumers’ repayment abil- ity, thereby mitigating fraud. In the meantime, banks can discover a growing segment of credit- What were the early chal- pushback for Mintpay which was worthy consumers too. So, at this point, Mintpay lenges? considerable because Sri Lanka's is maybe proving to be just what Sri Lanka needs. We were both work- banking NPLs are among the high- ing at a leading corporate in Sri est in the world. How has Mintpay performed since the beta Lanka, so leaving to start our launch six months ago? business venture was never an What advice do you have for Dauntless, we continued to improve the tech- easy choice. Growing up and anyone aspiring to become a nology. We made mistakes fast so that we can schooling together—we even startup founder? learn quickly and move on; and that process was graduated in Electrical and A start-up is a marathon, not critical. Since the beta launch, we’ve made signif- Computer Systems Engineering a sprint. There will be times you icant progress. We now have a month-on-month from the same university—we will feel overwhelmed and would growth rate of 150% in terms of new sign-ups as understood each other's strengths even want to give up. But always well as sales. We have onboarded many leading and weaknesses which helped us remember that you will never brands; we recently announced our partnership bootstrap Algoredge and develop know the outcome unless you try with Spa Ceylon and more such announcements Mintpay. Initially, we got a lot of it.

APRIL 2021 ECHELON.LK 89 DRIVEN BY PASSION

LIVING A PASSION For Dhanushka Amarasekara, the founder of the boutique design and brand marketing agency Morpho, the journey has been exciting giving fulfillment to a deep passion within

You’re in the creative business. An industry that is As the founder of your demanding and fast-changing. How do you stay ahead business, how do you of the game? view your purpose? I think the key thing in this game is to remain open to all I view my purpose more as a pas- possibilities. Creativity comes in all shapes and sizes from sion. Rather than from a creative a myriad of different sources. To stay ahead of the game, design service that puts clients you need to have a robust business structure that main- through the standard creative tains the professional quality of your service but gives you process, I wanted to adapt the the flexibility to allow new forms of creativity to flourish. creative process to my client’s Nowadays it's not enough to simply react to a client’s needs, needs – which for niche mar- you need to future-proof their requirements by studying ket industries are usually very the trends in the industry and anticipating what will come specific and unique. I wanted to next. We need to be trend-setters, not trend-followers by provide them with a service that understanding the flow of creativity in this industry. was ‘tailor-made’ exclusively for them, rather than offering ‘off- You’ve been in this industry for over 10 years during the-rack’ services that were the which you would have seen many changes over time. same for everyone. What are some of the key milestones that have stayed with you? The two milestones that I think have been real game-chang- ers in this industry are firstly the advent of the internet and the emergence of new digital platforms on which we now have to market. Digital marketing is a whole new special- ism that has really opened up access to new markets and challenged our industry to adapt our creative skills for the virtual universe. The second milestone that has been key for our industry has been the change in public perception of the creative sector. In many developed economies, the creative sectors are the only growth industries that countries have. They bring in more money per annum than the traditional industrial sectors and as a result have become respected professions in their own right. We still have a long way to go on this front in Sri Lanka, but I am sure it will happen.

90 ECHELON.LK APRIL 2021 If you were able to sit yourself down 10 years ago, what advice would you give your younger self? I would tell myself that “There is more to life than increasing its speed.” I would also tell myself to take the time to map out a plan and tap into what I am actually feeling to create a vision for the future that is true to who I am. I would tell myself to strike a good balance between my fine art photogra- phy and the running of Morpho, so that I find artistic gratifica- tion while also making sure that the needs of the business, its cli- ents, and staff are taken care of. Dhanushka Amarasekara Sometime in that striving, we Founder and Executive Creative forget to stop and remember the Director of Morpho motivation that drove us to do what we do in the first place.

If you had to define Morpho with 3 words, At Morpho, we what would that be? I think the three words I would want to foster use to describe Morpho reflect a passionate the attributes of the Morpho Butterfly from which the com- culture of pany derives its name: Creative, creativity that Transformative, and Open. At Morpho, we want to foster a transforms, not passionate culture of creativ- just products and ity that transforms, not just products and clients, but staff, clients, but staff, suppliers, and society at large. suppliers, and To do that we must remain open and curious and interested society at large in the environments in which we work and play.

APRIL 2021 ECHELON.LK 91 I

INNOVATION IS ALL ABOUT N PEOPLE N O V 92 ECHELON.LK APRIL 2021 AND

PEOPLE

CONTENTS

P 98 EFL: A STORY OF BRAND INNOVATION IN LOGISTICS ODOC:P 94BETTER HEALTHCARE FOR ALL IS P 102 NOW A REALITY VERACITYAI: TRANSFORMING THE INSURANCE INDUSTRY WITH AI

Innovation calls to mind several things: technological upheavals, transformation, winning markets, and change. But innovation needs people. People drive innovation at companies: they set the agenda, implement strategies, make allies, and win over laggards to a single unifying vision: growth. These are their stories. A T I O N APRIL 2021 ECHELON.LK 93 INNOVATION AND PEOPLE SPECIAL FEATURE

Chief Executive, Heshan Fernando Chief Operations Officer, Ashik Bari Chief Growth Officer, Nare Bandaranayake Chief Medical Officer, Dr Janaka Wickramasinghe

ODOC: BETTER

ue to the outbreak of Covid-19 in 2020, the HEALTHCARE FOR ALL world adopted digital technology at a greater scale. As a result, we were able to tackle our daily IS NOW A REALITY D tasks more efficiently and effectively despite the challenging circumstances. From how we conduct This startup is making high-quality meetings to how we order essentials and even how we con- healthcare universally accessible, affordable, sult a doctor, most things needed to change for us to be safe and personal by unlocking the potential of amidst the pandemic. Digital alternatives became the best digital technology and sometimes the only solution that adhered to government safety guidelines and guaranteed convenience and efficiency. oDoc is one such platform that significantly assisted the

94 ECHELON.LK APRIL 2021 TELEMEDICINE

the Maldives. With nearly 1,000 registered doctors cov- ering over 60 specialisations on its platform, oDoc is truly the epitome of a convenient telemedicine service. In 2020, in response to the Covid-19 outbreak in the country, the Ministry of Health appointed oDoc as its national telemedicine partner, allowing users to consult government doctors free of charge. This development helped bridge the accessibility gap between urban and rural populations, enabling oDoc to offer convenient healthcare across the nation. oDoc's Chief Executive, Heshan Fernando; Chief Operations Officer, Ashik Bari; Chief Growth Officer, Nare Bandaranayake; and Chief Medical Officer Dr Janaka Wickramasinghe spoke to Echelon about the company's success and plans to take telemedicine mainstream.

Sri Lanka's Healthcare space has been slow to evolve despite tech disrupting other industries at a rapid pace. What do you think is the reason for this? Healthcare is a sensitive and close to heart topic because it pertains to someone's life and wellbeing. For centuries,

THE COVID-19 PANDEMIC HAS BEEN A WATERSHED fight against Covid-19 in Sri Lanka by making doc- IN THE FIELD OF tors easily accessible to patients. A pioneer in Sri Lankan telemedicine, oDoc is an innovative mobile TELEMEDICINE phone application that, when downloaded, enables BECAUSE IT WAS THE users to carry out doctor consultations through ONLY AVAILABLE video, audio, or even chat functions. In addition to doctor consultations, oDoc allows users to request OPTION FOR NON- medicine delivery and mobile lab units to their URGENT HEALTHCARE home through its app. Since its inception in 2017, oDoc has grown to DURING THE cover over 200,000 lives in Sri Lanka, India, and LOCKDOWN

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people have visited their doctor in person. They for the tech-savvy Colombo elite are inherently used to having a doctor physically became a need for the masses. examine them - checking their pulse, lungs, or The increase in adoption we’ve blood pressure. So telemedicine and online doc- seen over the last year by both tor consultations pose a challenge to long-held patients and practitioners has beliefs. Primarily, it relates to whether a doctor confirmed that we are headed can truly diagnose a patient without physically in the right direction. examining them. To which the answer is, they can! As a result of this behaviour and beliefs, Tell us how oDoc is chal- telemedicine hasn't caught on fast enough in our lenging the traditional country. However, disruptive change, like for all healthcare model with things, starts gradually and then grows suddenly! technology-driven solu- The Covid-19 pandemic has been a watershed tions and why is it important? in the field of telemedicine because it was the The American Medical only available option for non-urgent healthcare Association has found that 75% during the lockdown. Even after the lockdown of regular doctor visits can be ended, people remained reluctant to go to successfully carried out virtu- crowded healthcare facilities due to the risk of ally, and we believe the number contagion from undiagnosed Covid-19 patients. here is also pretty much the Suddenly, what seemed like a solution exclusive same. An essential aspect of vir- tual consults over oDoc is the privacy, confidentiality, and comfort you may not get in a hospital. This plays an impor- tant role when having access to mental and sexual health advice. Most people do not want to be seen seeking mental or sexual health advice due to the unfortunate stigma surround- ing these topics. With oDoc, you can access any medical health professional from the comfort of your home, where you have total control of your privacy. We aspire to be a one-stop-shop for all your healthcare needs. As the population ages, convenient access to healthcare becomes vital for those that take care of multiple family mem- bers (elderly parents to young children). We have introduced WE HAVE oPharma, an online pharmacy service, and oLabs, a mobile lab INTRODUCED service. Everything from consulting a doctor to getting your medicines delivered and getting blood tests done at home is all OPHARMA, possible without leaving the comfort of your home with oDoc. AN ONLINE How has the response to oDoc been so far and what PHARMACY has been the trend post-Covid-19? SERVICE, AND We've been in operation since 2017, and till 2020, the OLABS, A uptake was gradual with consistent month on month growth. However, the pandemic was a major catalytic event, MOBILE LAB with the company growing by 5X in 2020. SERVICE Previously, our biggest challenge was convincing someone to experience their first telemedicine consult. After the first consultation, having experienced this healthcare delivery method's convenience and effectiveness, individuals usually

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new users signing up on the platform, and the percentage that goes on to do their first consultation has been on a steady upward trend which is promising. Having said this, I do believe there is a lot more we can do as a company, as members of the healthcare fraternity, and as a nation to utilise telemedicine and its advantages better. WE ARE As always, we first need the support of our healthcare professionals if we want to BUILDING make a healthcare initiative like telemedi- THE DIGITAL cine a go-to for the public. One thing that we FRONT DOOR have seen work is when doctors explain how exactly they can diagnose without examin- TO THE ing a patient in person: for example, asking HEALTHCARE about symptoms, the severity of symptoms, AND patients’ medical history and more. Hearing this from a doctor is more comforting and INSURANCE gives the patient the confidence to turn to INDUSTRY. virtual consults. Following the pandemic, we launched the Sri Lankan National Telemedicine Platform on behalf of the Ministry of Health in Sri Lanka as a CSR project, thus enabling any Sri Lankan to obtain free medical advice from any corner of the county. This initiative has improved patient outcomes as other ailments and illnesses are not neglected due to missed or late diagnosis due to the fear of visiting become advocates themselves, spreading aware- physical healthcare hubs. It also went a long ness to their networks. With the pandemic, we way in creating trust and awareness amongst were able to grow our pool of advocates as more both patients and practitioners. and more people tried telemedicine for the first time! How do you plan to build on what Importantly, we have seen this lockdown utili- you have created? sation spike normalise into our new post pandemic We are building the digital front door to base rate. On our corporate side, we had over 20 the healthcare and insurance industry. new companies signing up with us for our cor- Having laid the foundation for the health- porate package, which gives access to unlimited care industry, we are now starting on the doctor consultations for their employees and insurance industry. To this end, we recently allows for convenient recurring PCR testing on their partnered with one of India’s largest Third staff as required by the government guidelines. Party Administrators to bring world-class TPA services to the insurance industry in What more needs to be done for it to Sri Lanka. This will enable us to create a become ingrained as a go-to? seamless customer experience across the Telemedicine is widely used in countries healthcare and insurance verticals in Sri with higher digital adoption, and I believe Lanka. Thus, bringing us closer to our vision it is a matter of time before the South-Asian region of making high-quality healthcare univer- fully embraces it. Daily we have more and more sally accessible, affordable, and personal.

APRIL 2021 ECHELON.LK 97 INNOVATION AND PEOPLE SPECIAL FEATURE

Ahamed Javed, Head of Marketing & Communications at Expolanka Holdings Plc and EFL

EFL: A STORY OF BRAND INNOVATION IN LOGISTICS In a dynamic marketplace that’s rapidly changing and highly competitive, the power of a brand determines its success

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rands remain top of the mind and retain a loyal fol- lowing as marketers and brand owners continue to invest in impactful brand initiatives. This is more so in the case of B2C. However, in B2B marketing too ,brand perceptions matter. Ahamed Javed, Head of Marketing & Communications at Expolanka Holdings Plc and EFL, discusses the importance of brand and how EFL has grown its brand presence globally, winning manyB accolades along the way. You have been a part of Expolanka Holdings for a significant part of your career in a role that involves building brands. Tell us why building brands is important to you? The recognition and success of our logistics brand EFL is one of the biggest reasons why I feel that brand building is vital for growth. In 2012, having been given the reins to rebrand Expolanka Freight to EFL, it was clear to me that this was going to be more than just a visual identity change. I didn’t want to reinvent the wheel and create a new set of values or messaging, instead harness our real strengths and create a narrative that could be amplified. We never had the budgets and reach to match the competition but we could make every interaction count and that’s the main thing we focused on in those early days. Logistics is considered part of the ‘grunt work’ industry and when you’re dealing with global fashion brands, the gaps in marketing and communication were huge. We wanted to be as attractive as the fashion brands so that they would see us differently from the competition. At the same time, we were growing and needed a uniform and consistent identity that could be scaled with every new operation. We are now among the top 50 global companies in air and ocean freight and it’s a result of years of personal selling and positioning to open up opportunities that a Sri Lankan company wouldn’t have before. Brands surpass the products and solutions you sell, the size of your oper- ations and even individuals in the organisation. It becomes the single entity that represents your entire business, its history & values and the direction its going. It gives everyone a common shield regardless of your role and position in the company. For the brands of Expolanka, the challenge is always the same, we are vying for international business against companies or countries who have better resources and/or technology; so the question is how do you compete and stand out in a non-level playing field? You have to develop and create brands which encompass your strengths in a unified manner and enable a platform where you can be heard.

EFL has a brand presence across many countries, how has it impacted the positioning of the Expolanka group? EFL’s network has been vital in our growth and one of the reasons why we have performed so well in the last year. Our footprint across more than 20 countries means that we don’t have single market dependencies. We also have a diverse mix of over 25 nationalities across our 2400+ staff and everyone is made to feel part of a family. This has been a gradual process and we continue to work on it to ensure that no team or individual feels like they are operating

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causes that we could all identify with. We operate in a people centric relationship business and employees are your best brand ambassadors and should be backed by a unified identity and common voice that can be replicated in every aspect of your communication. Early last year, I also launched EFL Life platform that drives productivity, innovation and employee engagement. Being able to access a range of tools and We are now stay connected during the pandemic ensured that remote working was an easy transition as opposed to something new. among the It goes without saying that customers will work with you when top 50 global they see similar visions and then culture and diversity can compliment how you connect with them, so it's important to develop messaging companies in that covers this whilst brand principles stay the same. air and ocean freight and Tell us about some of the most exciting and impactful brand initiatives launched over the years, and any special it’s a result accolades received by the group. of years of The global market report platform launched right before the pandemic is one of the most impactful brand assets we have created and a first personal for the supply chain industry. It has become one of the most talked selling and about and appreciated tools not only among our existing customers but potentials too as well as the competition. At first glance, it doesn’t positioning sound like something that would add value to the brand, but this is where it’s important to understand that branding strategy is beyond advertising, social media and PR campaigns. It’s about looking at all your touch points and identifying the ones which can be leveraged to position you differently. We had access to all this information that customers were using for their decision making and yet the experi- on their own and cultural differences are getting in ence we were creating while packaged well, wasn’t hitting the mark the way. One of the problems I identified earlier on of increasing brand intimacy. was a lack of belonging to a larger cause and vision I also realised that uncertainty and lack of visibility is among the and staff feeling like they were just a local operation biggest pain points for clients and with the pandemic, this only inten- who dealt with counterparts in other countries to sified with airport and port closures and lockdowns etc. Global brands move shipments. There was little understanding sourcing from multiple markets have to keep tabs on many aspects and appreciation of the fact that here is this one big and we have successfully created a dynamic user experience that team with this melting pot of cultures and diversity empowers decision makers via a birds eye view of logistics on a real who shared a common goal to become something time basis. Even now, markets have not returned to normal and our bigger. We strengthened our internal communi- platform continues to go beyond just curating and sharing informa- cations and ran multiple campaigns; highlighting tion, and instead creating a brand experience that combines the best country level achievements and sharing stories of our ground knowledge, UX technologies and data. Users are able to of individuals so that everyone realised no matter stay continuously informed of all the aspects that impact their supply where you were or your background, you are still chains as a result of our interactive and unique dashboard. one of us. I recall pushing the teams to participate In 2016, we were also the first company to launch a dedicated in social causes to commemorate the first rebrand- sustainability report when sustainability was still not a mainstream ing anniversary instead of the usual norms. When subject in the industry. My team and I work on multiple bids through- we curated the digital newsletter that quarter, we out the year and we saw the trend approaching with brands asking for had this wonderful mix of stories and images of more information. We decided to get ahead of the curve and launch a teams who went all out in their markets. It gave dedicated report covering all the work we do globally and that imme- everyone a chance to see the real faces behind the diately positioned ourselves in a different space. We followed this up operations and how they were addressing common by internalising the launch of the UN Global goals and aligning them

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with the Founder Hanif Yusoof ’s values making it everyone's respon- sibility in the company and that approach won accolades as well as increased business from brands that were conscious of the same. At Expolanka, I look beyond campaigns and short term growth activations and take a holistic view of the different businesses and Companies industry changes so that our brands can increase customer confidence and deliver on the promises we make. can no longer hold an In a post pandemic phase, does branding still matter? Yes, definitely. The world continues to be in a start stop situa- advantage tion and interactions between customers are limited to emails, based on video calls and chats. You are no longer able to garner an advantage by travelling and fostering that interpersonal relationship to close a heritage sale or having your customer walk into a store like they used to and loyalties, be wowed by the range of your products and customer service. The customer is deciding remotely in the comfort of their homes or in an infrastructure, office which doesn’t operate the way it used to; at this point, it’s the technology, brand equity you build that plays the biggest role. Companies need to have a consistent and authentic brand voice and foster that emotional or creative connection rather than just keep flushing out campaigns and become advertising cold with short term growth marketing tactics. Consumers have access to lots of information and see beyond marketing gimmicks and this is why profits alone no longer determine the success of companies. Businesses need to take a 360 view of all their operations; impact on the environment, work-life balance and equal opportunities as much as they look at margins and costs and communicate this whole same time, the gap between B2B brands and heartedly in their marketing. B2C is reducing because even if someone isn’t Over the last few years, EFL has established and communicated your direct customer, they are able to influence clearly what makes us different and in some instances better than what the consumer feels about your brand. others. Our customers know we are agile having worked in markets In a very recent paper published by the with limited infrastructure and that we leverage our relationships B2B institute, a leading think tank funded by to get things done. This is a result of consistent communication and Linkedin, global experts like Les Binet and showcasing of strengths in online and offline engagements which Peter Fields identified that B2B marketing is didn’t need to be ‘resold’ during the pandemic . In the end, it didn’t very similar to B2C; that to be effective, com- matter what the ground situation was or the restrictions were, we panies need high share of voice, broad reach have acquired confidence that we can get it done and that’s one of and high mental availability using a balance the biggest reasons for our recent success. of both emotional brand building and rational activation. It points out that in the long term Where do you see the future of brand marketing heading? emotional campaigns that focus on what a cus- We need to realise that the customer persona has changed and tomer feels are more effective than rational with the pandemic, needs are more oriented towards safety campaigns that try to communicate informa- and well-being rather than those of esteem. In a global consumer tion. marketplace, this presents a new challenge for marketers and brand Companies can no longer hold sole advan- builders and shifts the opportunities too. Whilst this is likely to change tages based on heritage loyalties, infrastructure, at some point, I think we are a long way away from returning to nor- technology or creative advertising. You have to mal. Every business and individual now has the added expenditure invest in understanding your customers and on PPE, thereby reducing the average wallet size or spending that was the variables that influence their decisions earlier available. Businesses are also equally responsible to ensure the whilst at the same time clearly defining your wellbeing of their employees, the community as well as their partners companies’ purpose and looking beyond the and customers which puts a strain on budgets and ad spend. At the numbers in order to be successful as a brand.

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VERACITYAI: TRANSFORMING THE INSURANCE INDUSTRY WITH AI VeracityAI has developed WENN CarEye that scans the exterior of a vehicle, analyses wear and tear, diagnoses problems, and more

nsurance has always been a data-driven industry. Rapid techno- logical upheavals in AI, automation, robotic-processing, machine learning, and the Internet of Things (IoT) have created an unprece- dented volume of structured and unstructured data on constantly I evolving consumer and customer demands. Jeevan Gnanam, Founder and Group CEO of VeracityAI, discusses what this means for the insurance industry and its clients. VeracityAI has developed an AI platform called WENN CarEye that scans the exterior of a vehicle and analyses wear and tear, diagnoses problems and more. Gnanam is the immediate past chairman Jeevan Gnanam, of SLASSCOM and has leadership roles in St. Anthony’s Industries Group, SAKS, Co-founder of HATCH and OrionStellar. SpectrifyAI & VeracityAI

102 ECHELON.LK APRIL 2021 ARTIFICIAL INTELLIGENCE

How can AI be used to address a particular business problem in the conventional and set in its ways. There insurance industry? is also a lack of transparency in areas One of the core preoccupations in general insurance is to understand how such as internal procurement and costs assets such as a building, a vehicle, or a piece of fixed machinery perform for parts. For whatever reason, some over a period of time, and how wear and tear can impact their valuations. A stakeholders within the business do not primitive yet effective way of doing this is to look at the asset to identify any want that kind of transparency which is wear and tear or damages. We have taken this to another level by taking over a prerequisite for enabling the kind of AI two million vehicle images at various stages of deterioration or damage to solutions that we can provide. train WENN CarEye to identify and understand with a high degree of prob- ability what damages look like and their approximate estimates as well. We also train WENN to look at individual components of a vehicle which needed us to have a cost basis of each part so we can train WENN to understand the damage estimates for each of these as well. So, a lot of work goes into build- ing an AI model to provide a solution as WENN does, and the application is not just for motor vehicles. AI can now understand 3D spaces from pictures, There is a huge so it can understand if I want to insure my house. We have a quicker way to opportunity to put the power of the AI application in the user's hands and build trust in the technology by allowing them to take an image of a room in the house and build truly world- gauge the number of square feet to understand how deterioration can take class AI products place over time. That is, one vertical of AI, which is computer vision, but many other things can also be done in terms of developing an AI model by using a and solutions limited partnership such as the one we have with WENN. out of Sri Lanka: By using a limited partnership (LP), you can maybe automate some of the requests that come from the customer from mobiles or any kind of applications. we have done Usually, 80% of customer inquiries can be handled by AI, and then LP becomes this, and we stronger to automate that part of the claims process as well. There are several things to consider when developing an AI model but an like to continue important one that most technologists tend to underestimate is security and doing so fraud prevention. Fraud detection is also critical in building an AI application and you have to think of all those aspects when you build a product.

Is AI a standalone solution? When an AI system keeps learning, because there is a constant feedback loop, especially about consumers and users, How have you gone about build- can that be fed into other processes as well, especially in insurance? ing AI solutions with WENN and Our business model is very much on a per-claim basis, and the reason for this VeracityAI? is the constant feedback when a new damage assessment comes in and we It has been a great partnership and eventually re-train the model to take into consideration the new parameters. journey with WENN and now we are This model is very much a partnership approach, where we base our pricing taking WENN CarEye into Asia. When per claim and there's constant feedback with new images coming in and we we started this journey, we had so many retrain and re-finetune the AI model. questions we could not have answered without a partner: for instance, we What are your experiences in encouraging insurance companies to wanted to do automated damage claims, take up WENN CarEye? but we did not have the data to make that We looked closely at how AI can create value for major stakeholders in the possible. All this had to be done using insurance industry: insurance companies, their policyholders and third-party partnerships and working together, and I service providers such as garages. We helped insurance companies understand am very thankful for this. There is a huge how AI can have a positive impact on profitability by reducing costs per claim. opportunity to build truly world-class AI This is a quantitative benefit, and then there are qualitative benefits too such products and solutions out of Sri Lanka: as enhancing customer experiences. Successful businesses always invest in we have done this, and we like to con- delighting their customers, but in Sri Lanka, the insurance industry is mostly tinue doing so.

APRIL 2021 ECHELON.LK 103 ADVERTORIAL

VIRTUAL PROPERTY INVENTORY A BOLD NEW FRAGRANCE LAUNCHED BY ACQUEST FOR EVERY GENERATION; CK EVERYONE The scale and scope of Acquest’s services, Sri Lanka’s premier real estate services provider, gives it A bold new fragrance for every generation, CK EVERYONE her- an unmatched understanding of alds an iconic chapter in the CK ONE story. The launch event took the real estate landscape. This, in place on the 25th of February with a few leading Key Opinion turn, allows them to provide expert advice across multiple property Leaders at the One Galle Face Mall. sectors and a range of specialist transactions, advisory and man- This brand new fragrance is inspired by the authentic and agement services. In order to enhance their customers' experience youthful-minded, who are unconstrained by boundaries, gender and decision-making process, Acquest recently launched its virtual norms and definitions. property inventory on www.acquest.lk, making it easy to access im- The brand new CK ONE fra- portant real estate market information before making a decision. grance, created by the iconic The site offers a diverse range of properties spanning across 15 Alberto Morillas, boasts of a different property segments including and not restricted to apart- gender-neutral fragrance exud- ments, new development, residential land, houses, commercial land ing clean freshness, using 79% and buildings, villas and other real estate investment opportunities. of naturally derived ingredients Users can browse through a range of property options available on and ignoring the traditional sig- their virtual property inventory and even directly schedule property nifiers of gender as reflected in viewings and request more information. the non-conformity of both the Over the last 14 years, Acquest has grown to be the only full-ser- scent and campaign. vice real estate company in Sri Lanka with experience of over 1500 transactions exceeding a value of USD 250 Million.

ALLIANZ SWEEPS THE BOARD AT THE GREAT MANAGER AWARDS 2020

Allianz Insurance Lanka Ltd was recently recognized as ‘A Company for Team Effectiveness & Collaboration. with Great Managers’ at the ‘Great Managers Awards 2020’ by the During the culture scan conducted, Allianz demonstrated an eco- Colombo Leadership Academy (CLA) for Leadership Excellence, in system of nurturing great managers where the clarity of career paths, strategic partnership with People Business. In addition to winning the succession planning, leadership accessibility, learning and develop- main award, the company emerged as the winner in five key catego- ment, challenging the status quo, etc. were observed to be built into ries, namely, Driving Results & Execution Excellence, Aligning Organ- the organization’s DNA and culture. izational Vision, Coaching Others for Growth, Team Effectiveness & Image - The team from Allianz Insurance Lanka Ltd., who were present at the award ceremony. Collaboration and Leadership Integrality & Holistic Approach. Malaka Mihindukulasuriya was awarded ex- clusive recognition in the category of Leadership Integrity & Holistic Approach, a unique award that is not awarded annually. Thimira Manamen- dra and Nirosha Perera were awarded the Great Manager for Driving Results & Execution Excel- lence while Pasindu Malinga and Kumarika Am- arasighe were awarded the Great Manager for Aligning Organizational Vision. In the category of Coaching Others for Growth, S. Sivanarenthi- ran was awarded the Great Manager and Y Ku- mareswaran was awarded the Great Manager

104 ECHELON.LK APRIL 2021 ADVERTORIAL

ALPHA INDUSTRIES RELAUNCHES TRILLIUM HAVELOCK EXCITING NEW WEBSITE RESIDENCES – AN IDEAL INVESTMENT Alpha Industries, the manufacturing business of the privately-owned FINCO OPPORTUNITY Group, recently announced the launch of their revised and improved website. For over 50 years, Alpha Industries has been a go-to leader for security equipment and light metal office furniture products, and is the No. 1 solution provider for office furniture and interior solutions. With a perfect blend re- Trillium - an owner, de- flecting their forward-thinking aspirations and their tradition of putting their veloper and operator of client’s office furniture needs first, they have now launched a website that luxury real estate in Sri grows with them. Lanka, is set to build a su- Market leadership for over half a century is a remarkable achievement per-luxury condominium for any business, and Alpha Industries believes that retaining it in an aggres- apartment complex in a sively competitive industry dictated by global demands is a testament to their highly residential area in Colombo 5 – Havelock Town. commitment. With a total project investment amounting to The new website is faster, easier to 1.2 billion rupees, the complex will be situated on navigate, and more user-friendly. The a well-positioned plot of land 40 perches in extent goal with the improved website is to and will house 30 three-bedroom apartments and provide visitors with an easier way to 10 two-bedroom apartments. The complex will also learn about the products and services feature ample parking facilities, a state-of-the-art and to browse information based on the gym, rooftop pool, and other modern facilities in- client’s choice. The website now gives cluding a pet care facility adjacent to the premises. better access to insights about Alpha Trillium plans to offer the first 10 apartments at Industries such as who they are, how a discounted rate and leading banks have signed a they work, their projects, expertise and memorandum of understanding with Trillium to help services, their people, blog and a forth- provide solutions for the financial needs of clients coming Knowledge Center about their with attractive interest rates and payment plans. products, as well as an improved ca- The project is due to be completed in 2023. reer page.

NSB FELICITATES ‘SHE’ WHO HAS CHALLENGED COVID

Highlighting women’s role in today’s world, their challenges and diffi- culties, and their collective empowerment as a whole, National Savings Bank (NSB) organized an evening of recognition and reward held at Wa- ters Edge Hotel, Battaramulla on the 08th March 2021, to coincide with the International Women’s Day. This event was held under this year’s theme for International Wom- en’s Day declared by the United Nations Organization, “Women in Lead- ership: Achieving an Equal Future in a COVID-19 World”, and 16 ladies who have rendered tremendous service during the pandemic without limiting their duty to circulars, directions or office rooms to cure the country of the disease were felicitated at the occasion. The General Manager/CEO of the Bank, Ajith Peiris stated that the majority of NSB clientele is women and he thanked them for contrib- uting to the increase of deposit mobilization of the bank, as well as the country, through their habit of saving and thrifting.

APRIL 2021 ECHELON.LK 105 ADVERTORIAL

UNION ASSURANCE RECOGNIZED DFCC TAKES A DIGITAL-FIRST INTERNATIONALLY AS THE MOST APPROACH WITH ITS ANNUAL INNOVATIVE DIGITAL INSURANCE REPORT 2020 COMPANY IN SRI LANKA

Union Assurance was recognized as the Most Innovative Digital Insurance DFCC Bank opted for a digital-first Company in Sri Lanka and the Most approach for its Annual Report Innovative Digital Initiative for 2021 2020, aptly adapting to the ‘new by the world-renowned Business and normal’ and fast-tracking the Financial Journal International Busi- bank’s goal of becoming the most ness Magazine. customer-centric and digital- The awards were attributed to the Jude Gomes, Chief Executive ly-enabled bank by the year 2025. many initiatives by Union Assurance Officer of Union Assurance “Customer centricity and a to spearhead digital adaptation in the digital-first tactic is the basis of insurance industry through a comprehensive transformation journey our Vision 2025 strategy,” Chief that focuses on the digitization of operations, building capability and Executive Officer of DFCC Bank, Lakshman Silva states. “They adopting disruptive technology. are the main contributors to our sound results and the bank’s Commenting on this special achievement, Jude Gomes, Chief Ex- ability to agilely adapt to the changing situation in 2020. We are ecutive Officer of Union Assurance stated “Our progressive invest- now ready to acquire and onboard customers remotely via our ments in cutting-edge digital technology are coming to fruition. Our digital platforms. What’s more, in terms of our environmental- transition to a digital operating model has been rapid, supporting ly-conscious outlook, we continue to be the preferred lender for over 500 employees working remotely and helping Union Assurance “green” development projects including waste-to-energy, hydro, to provide best in class online services to our customers.” wind, and solar energy projects. DFCC Bank is ready for business Union Assurance is stepping out of the norm and driving forward in 2021.” innovation, making its mission to bridge the gap between the tech- The concise integrated annual report in print PDF is also savvy consumer and the less advanced industry. By transforming available for archiving and for statutory filing purposes. In ad- itself to become a digitally enhanced, customer-centric life insurer, dition to this, the bank was the first to offer an annual report Union Assurance is leading the way for the Sri Lankan market Updater Portal and a complimentary annual report Updater App in helping its customers to achieve their financial goals and live that regularly captures important post-annual report informa- comfortable, protected lives. tion for stakeholders.

HUTCH DEMONSTRATES THE FASTEST 5G EXPERIENCE IN SRI LANKA

Ringing in the new era of 5G in Sri Lanka, Hutch recently demonstrated the fastest 5G speed ever achieved by a Sri Lankan telecom operator in its inaugural 5G trial event at Hutch One Galle Face Premier Experience Center. HUTCH teamed up with ZTE, a global leader in telecommunications and information technology for this groundbreaking 5G trial which included several demonstrations and use cases of 5G. The trial consisted of several demonstrations, among which the Ookla global broadband speed test illustrated Hutch scoring a speed of 1.8Gbps as the fastest ever 5G speed in Sri Lanka and achieving an extremely low latency (Ping) rate. The 5G trial was demonstrated in the presence of Chief Guest Oshada Senanayake, Director General Telecommunications Regulatory Commission of Sri Lanka, Thiruku- mar Nadarasa, CEO of Hutch and the Hutch Management. Commenting on the new milestone, Nadarasa said, “This is indeed a special moment for all of us at Hutch. As a company that seeks to exceed the expectations of our valued customers, the new Hutch network is 5G-ready, fostering a new era of technological HUTCH Management with the TRCSL Director transformation.” General

106 ECHELON.LK APRIL 2021 ADVERTORIAL

WINDFORCE ANNOUNCES RS 3.2B LINEARSIX EMPOWERS IPO TO BOOST RENEWABLE ENERGY WOMEN IN IT ENGINEERING CAPABILITIES LOCALLY AND For LinearSix, adding diversity to its team has been a critical INTERNATIONALLY success factor from the start of its operations. Believing in equal opportunity, LinearSix thrives by empowering wom- en like Anjanee Nimasha, Tharushika Warnakulasuriya and WindForce Limited, the Keshani Amarasena, who are successful IT Engineers con- pioneers in the growth tributing to the company’s innovative streak and successful and supply of renewa- journey. ble energy in Sri Lanka, Tharushika Warnakulasuriya, a Senior Business Analyst has announced an Initial on the team of LinearSix’s flagship brand “Lime”, plays a key Public Offering (IPO) that role in understanding the requirements and solving the pain aims to raise Rs.3.24 bil- points of the company’s key clients who are some of the lion to fund its strategic leading banks in the country. expansion and growth Anjanee Nimasha, LinearSix’s Senior Software Engineer in the renewable energy provides training and mentoring and offers technical res- sector. olutions that drive change and enable transformation by The IPO offers 202,615,341 ordinary voting shares at Rs.16 per share designing, developing, and modifying software platforms to and aims to raise Rs.3,241,845,456. The Joint Managers and Financial Ad- fit client requirements while optimizing their performance. visors to the issue are CT CLSA Capital (Pvt) Limited and Capital Alliance Handling the analysis of user requests and require- Partners Limited. ments, checking the feasibility of solutions to meet client WindForce Limited Chief Executive Officer Lasith Wimalasena stated, needs, and creating applications and software development “We are excited to officially enter the next phase of the company's journey testing is Keshani Amarasena, another engineer on the Lin- and contribute towards Sri Lanka's economic growth and development earSix team who was never afraid to challenge convention through our renewable energy plants. We are hopeful that this new IPO and got into the field of engineering because she was pas- will boost our position as the largest Independent Power Producer in Sri sionate about the subject. Lanka and set the platform for even greater growth for years to come.” They affirm that wom- en, with their unique per- (L - R) From WindForce Limited Manjula Perera - Managing Director, Lasith sonalities, bring a new Wimalasena – CEO, Ranil Pathirana – Chairman, Rizmin Razik – CFO, Asgi perspective to drive inno- Akbarally – Vice Chairman and Hussain Akbarally – Director vation and are naturally empowered to prosper in the field of engineering.

SRI LANKA INSURANCE TO CONDUCT ‘RISING TO NEW NORM” AWARENESS PROGRAMME ACROSS THE COUNTRY

The national insurer Sri Lanka Insurance conducts a series of awareness programmes across the country to educate the public on the impor- tance of following good health practices against Covid 19 during the new normal condition. The first programme, followed by a series of 15 programmes, was held in Anuradhapura town on the 06th of March 2021 with the partic- ipation of Dr Palitha Bandara, Provincial Director, Health Services of North Central Province, Dr L.C.D. Ariyarathna, Regional Director, Health Services of Anuradhapura, H.P Somadasa, Mayor of Anuradhapura Provincial Council, W.A.S. Wickramarachhci, Chief Inspector of Sri Lanka Police Anuradhapura, Mahinda Jayasena, Chairman of Chamber of Commerce Anuradhapura, Sri Lanka Insurance management and staff members. The programme comprised of several informative sessions with key personnel representing the health sector and defence sector in the Anuradhapura area on how to continue the regular day to day ac- tivities while adhering to health and safety measures. The sessions were followed by a Q & A session con- ducted through SLIC social media pages which received tremendous responses from people in the area.

APRIL 2021 ECHELON.LK 107 DIOGENES

ENTREPRENEURIAL SPIRIT?

BEST FORGET IT! A week ago, they decided that it would be ask- ing for trouble if they didn’t bring The Man, for whom Diogenes’ fleet of tuk-tuks provides a dis- When discretion is the creet 24-hour delivery service, fully up to speed on better part of valour this latest development. The late-night meeting at The Man’s palatial BY SOCRATES lakeside mansion was a salutary experience. He had listened attentively as Diogenes described the drinking session at the Caña Coño behind Avenida Casanova, the exotic rum and cokes, the bonho- mie, the delights of Oilda and Delores, Fidel’s ini- tial approach... Entrepreneurial spirit is something Diogenes Fernando has always He had then leaned forward, spread his hands flat had trouble getting his head around. Why bother? Why not let the other on the desk, looked slowly from one to the other, fellow take the risk? If he succeeds, do the same. If he fails, don’t. and in a voice both quiet and full of menace, ex- Which works pretty well most of the time. But what about when an op- plained the facts of life. portunity arises out of the blue that looks and sounds too good to miss, We know all about El Hombre, he said—as do but which no one else is doing? Then what? the DEA, CIA, FBI, FSB, ASIS, MI6, NCB, you name Such a case has now arisen and involves both himself and loan-shark it, not to mention our own PNB and CID. That Ven- Boris ‘The Bite’ Fernando. They have been asked by their newly acquired ezuelan schmuck, he said, has been looking for a Caracas connection, one Fidel Fernandez Fernando, to front a Colombo business partner patsy in Sri Lanka for the last two branch of FeDeMun (¡Fernandos Del Mundo Unidos!). years, but no one will touch him with a barge pole. However, FedDeMun is itself almost certainly being used as a front Why? Because much sooner than later he’s by the much feared Venezuelan gangster El Hombre, who is looking to going to crash and burn, with or without outside extend his ‘import-export’ business into South Asia. help, and anyone associated in any way whatso- So might it be the case, Diogenes asks himself, that no one else is ever with his ‘import-export’ business is going to doing what he and The Bite have been asked to do because the risks, in find themselves in a mega shitload of trouble, if view of what’s at stake, considerably outweigh the rewards? not dead. Capisce? But don’t let me stop you, he said. If, after care- fully weighing the pros and cons, the upsides and downsides, the risks and rewards, you decide to get into bed with El Hombre, that is entirely up to you. Good luck and good night. See yourselves out. An hour later, over a couple of sinew-stiffen- ing Cuba Libres at the Feisty Fishermen, Diogenes and The Bite arrived at an unspoken agreement. It had been fun while it lasted—but all things con- sidered, and weighing everything in the balance, discretion is undoubtedly the better part of valour. So best forget it. Meanwhile, thinks Diogenes, while it might be true that, in the end, what we regret most are the chances we never took, in this particular case it’s a KOTHTHIGODA THIYASHI BY : ILLUSTRATIONS regret he’s perfectly happy to live with.

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