BUILDING A FUTURE READY SRI LANKA
Sri Lanka’s world picture displays a mixture of challenges and promise
Bob Kundanmal
Bob Kundanmal is amongst Sri Lanka’s most quietly influential enterprise leaders – an entrepreneur whose profession displays foresight, adaptability and an instinctive understanding of how world markets evolve over time.
Because the founder and guiding power behind the Sino Lanka Group, he has constructed a diversified, non-public and fairness pushed enterprise with a powerful regional footprint, anchored not in short-term cycles however long-term worth creation.
His entrepreneurial journey started within the early Nineteen Nineties with a modest attire manufacturing and buying and selling enterprise. What adopted was fast enlargement into worldwide attire manufacturing, supplying globally recognised manufacturers and establishing abroad manufacturing operations – early alerts of a global outlook and willingness to scale past home boundaries.
A defining level got here in 2008 when Kundanmal made the deliberate determination to exit the attire trade. Anticipating shifts in world dynamics and purchaser behaviour, he repositioned Sino Lanka right into a diversified funding group spanning hospitality, schooling, healthcare, renewable vitality, electrical mobility, property growth, monetary providers and knowledge know-how.
The transfer mirrored a broader philosophy: that resilience lies in adaptability and longevity within the skill to evolve forward of disruption.
Past Sri Lanka, Kundanmal has performed a pivotal function in shaping Bangladesh’s non-public sector by way of the STS Group. Beneath his management, it has emerged as a benchmark establishment in healthcare, schooling and finance – most notably by way of partnerships with world traders reminiscent of Blackstone and TPG that led to the institution of Evercare Hospitals, which is Bangladesh’s largest non-public healthcare community at the moment.
Bob Kundanmal’s profession is outlined much less by particular person ventures than by a sustained effort to create credible future prepared platforms that strengthen cross border funding and contribute to long-term financial progress throughout South Asia.
– Compiled by Tamara Rebeira
The effectiveness of the Rebuild Sri Lanka initiative will rely upon how nicely this non-public sector momentum is aligned with a coordinated nationwide restoration effort
Q: How a lot religion do you place on the Rebuild Sri Lanka initiative, following the destruction brought on by Cyclone Ditwah in late November? And the way a lot weight will the non-public sector carry in minimising the financial fallout from the disaster?
A: The Rebuild Sri Lanka initiative represents a well timed and essential response to the widespread destruction brought on by Cyclone Ditwah and it warrants measured optimism. Within the aftermath of the catastrophe, the necessity to mobilise assets, coordinate aid efforts and description a coherent nationwide restoration framework is each pressing and complicated.
Given the nation’s present financial realities – together with fiscal constraints, debt stress and capability limitations – these duties current notable challenges for the federal government.
On this context, the Rebuild Sri Lanka initiative is an important step in direction of restoring path and confidence with its success hinging on coordination, clear priorities and broad-based assist.
Nevertheless, these challenges have been partly mitigated by the swift and spontaneous response from the non-public sector and civil society. Even in the course of the cyclone and its speedy aftermath, companies, trade teams, NGOs and people stepped in to supply emergency aid, logistics assist, medical help, meals provides and momentary shelter.
Giant Sri Lankan corporates shortly repurposed provide chains, mobilised funds and deployed groups on the bottom, typically responding sooner than formal mechanisms. This swift motion highlighted the depth of social capital, agility and operational functionality throughout the non-public sector.
Trying forward, the effectiveness of the Rebuild Sri Lanka initiative will rely upon how nicely this non-public sector momentum is aligned with a coordinated nationwide restoration effort. The non-public sector can contribute not solely by way of funding and aid but additionally by rebuilding infrastructure, restoring provide chains, supporting SMEs and producing employment.
Public-private partnerships (PPPs), transparency and clear accountability will probably be important in rebuilding Sri Lanka – and the non-public sector is more likely to play a notable function in minimising the broader financial affect of Cyclone Ditwah.
Q: How would you describe Sri Lanka’s picture on the world stage – and what elements reminiscent of financial, political or social will principally form worldwide perceptions going ahead?
A: Any nation is considered internationally by way of a lens formed by its financial, political and social developments. Sri Lanka’s world picture displays a mixture of challenges and promise.
Whereas financial and political fragilities are evident, the nation’s social cohesion, strategic significance and capability for innovation show resilience and potential. Sri Lanka stays a nation able to overcoming setbacks, and rebuilding its social and financial material.
Its strategic location alongside key maritime commerce routes positions the nation as a significant hub for regional commerce, delivery and logistics. The tourism trade, which is persistently ranked among the many world’s high locations, has proven sturdy progress, showcasing the island’s wealthy heritage, biodiversity and cultural enchantment – at the same time as pure disasters reminiscent of Cyclone Ditwah have quickly disrupted exercise.
Communities, companies and civil society have repeatedly mobilised throughout crises by offering aid, restoring important providers and supporting restoration to replicate exceptional social resilience.
Historically, Sri Lanka has been famend for its top quality Ceylon Tea, Ceylon Cinnamon and different commodities, in addition to its standing as a premium high quality attire producer.
These industries proceed to reinforce the nation’s worldwide popularity and supply a powerful basis for commerce, model recognition and engagement with world markets.
Excessive public debt, fiscal constraints, inflation and overseas trade stress have affected investor confidence, and perceptions of financial stability. By way of politics, frequent management transitions, coverage inconsistencies and episodes of public protest spotlight the necessity for clear governance and constant policy-making.
Worldwide collaboration with monetary establishments, commerce companions and healthcare organisations has strengthened Sri Lanka’s credibility and capability to handle crises, by way of technical experience, funding and strategic assist.
General, although financial and political challenges stay, Sri Lanka’s strategic benefits, social resilience and capability for innovation provide a powerful basis for restoration – and gradual progress in direction of stability.
The long-standing mind drain has weakened the island’s expertise base
Q: In your evaluation, what are the most typical misconceptions overseas traders have about Sri Lanka? And the way can the non-public sector contribute to reshaping and strengthening this narrative?
A: One widespread false impression is that Sri Lanka lacks scale. Because the home market is comparatively small, traders typically underestimate the nation’s skill to perform as a regional platform by leveraging its strategic location, commerce entry and expert workforce, to serve South Asia, the Center East and past.
There’s additionally a bent to view Sri Lanka solely by way of the lens of current financial misery.
Though the previous few years have been difficult, many sectors proceed to function effectively and competitively. Some traders underestimate the sophistication of Sri Lanka’s non-public sector, significantly in manufacturing, providers, know-how and moral enterprise practices.
Equally, doubts are sometimes raised about workforce capabilities, regardless of the nation having a extremely literate English talking expertise pool, sturdy center administration depth, superior manufacturing capability, and confirmed experience in sectors reminiscent of premium attire, IT providers, schooling, healthcare and renewable vitality.
The non-public sector has a important function to play in correcting these perceptions. By showcasing profitable, scalable enterprise fashions and export oriented operations, corporations can show Sri Lanka’s skill to function nicely past the bounds of its home market.
Internationally profitable Sri Lankan companies can function ambassadors by persistently showcasing credible success tales. That is what Sino Lanka has completed over the previous decade by increasing into Bangladesh throughout sectors reminiscent of healthcare, schooling and finance by way of the STS Group.
Personal enterprises can additional have interaction worldwide traders by way of partnerships, joint ventures and participation in world boards, sharing actual world outcomes moderately than counting on macro degree narratives. Investments in innovation, expertise growth and sustainability reinforce Sri Lanka’s positioning as a contemporary, aggressive enterprise vacation spot.
Importantly, whereas political and financial volatility exist, it doesn’t outline the enterprise surroundings as a complete. Public-private collaboration can assist clearer coverage dialogue, reform advocacy and belief constructing to assist handle investor issues.
Q: In an more and more aggressive area, how can Sri Lanka place itself extra compellingly in opposition to locations reminiscent of Vietnam, Bangladesh and Indonesia, to draw funding, expertise and alternative? And the way can we leverage or capitalise on our neighbouring regional energy India’s sprawling market?
A: Working within the world attire trade for over three a long time with direct expertise throughout Sri Lanka, Vietnam and Bangladesh has offered clear insights into how aggressive dynamics evolve throughout places.
A recurring theme all through this journey has been the necessity to adapt to political and financial volatility, which has typically dictated shifts in operational bases.
As an example, restrictive financial circumstances in Sri Lanka in the course of the Nineteen Eighties and ’90s led to a strategic transfer to Bangladesh. Later, durations of political and social instability in Bangladesh prompted diversification to Vietnam to handle threat and preserve continuity.
These shifts weren’t pushed solely by home instability; they have been equally formed by fixed purchaser stress for the bottom attainable sourcing prices.
World attire patrons relentlessly search marginal value benefits, forcing producers to maneuver between manufacturing hubs. Companies that survived have been those who embraced globalisation, flexibility and market pushed adaptation, moderately than inflexible single nation methods.
Nevertheless, it’s now evident that trying to compete straight with the dimensions and low-cost manufacturing fashions of Vietnam or Bangladesh will not be a sustainable path for Sri Lanka. Their huge labour swimming pools and deeply entrenched provide chains make worth based mostly competitors a race to the underside, which Sri Lanka can’t and shouldn’t pursue.
Due to this fact, its aggressive benefit should be redefined round worth addition.
Historically, Sri Lanka has been famend for its top quality Ceylon Tea, Ceylon Cinnamon and different commodities, in addition to its standing as a premium high quality attire producer
The way forward for the attire trade lies in transferring up the worth chain into areas that require ability, precision and class. This consists of high-performance sportswear, area of interest luxurious attire, technical textiles and specialised uniforms. Somewhat than confronting bigger neighbours head-on, Sri Lanka ought to give attention to industries that complement the dimensions pushed progress of nations reminiscent of India.
This precept of strategic complementarity ought to prolong past clothes. Given the strengths of regional economies reminiscent of India, Vietnam, Indonesia, Thailand and Malaysia in electronics, equipment and industrial gear, Sri Lanka can place itself as a provider of excessive precision elements, specialised components and value-added meeting.
Leveraging present capabilities, its strategic location and FTAs such because the Indo-Sri Lanka Free Commerce Settlement (ISFTA), Pakistan-Sri Lanka Free Commerce Settlement (PSFTA), South Asian Free Commerce Space (SAFTA), and Asia-Pacific Commerce Settlement (APTA) can speed up this transition.
Workforce technique can also be important. The long-standing mind drain has weakened the island’s expertise base. Reversing this requires focussed efforts to retain expert professionals by way of higher alternatives and appeal to global expertise by creating an open, innovation pushed ecosystem.
Emulating profitable fashions reminiscent of Singapore and Dubai may also help Sri Lanka turn out to be a hub for R&D, entrepreneurship and subsequent technology industries.
Whereas political and financial volatility exist, it doesn’t outline the enterprise surroundings as a complete
Q: Trying forward, which sectors do you imagine would be the major engines of Sri Lanka’s subsequent part of progress – and the place do you see probably the most promising alternatives rising for each native and overseas traders?
A: Sri Lanka is a nation characterised by profound aspirations and unwavering willpower, actively focussed on the continual growth of its human capital. The overarching purpose is to equip the workforce to not solely meet however exceed regional and worldwide requirements for expertise and productiveness.
This give attention to nurturing its folks has already yielded substantial success with the nation fostering globally important corporations. These enterprises thrive in superior sectors reminiscent of IT and complicated textile manufacturing. Past these excessive worth industrial sectors, Sri Lanka stays an important world exporter of key major assets – most notably world-renowned Ceylon Tea, coconut based mostly merchandise and pure rubber.
To attain the subsequent part of strong and sustainable financial progress, Sri Lanka should pivot its strategic focus in direction of the providers sector. The ambition is obvious: to transition from a conventional commerce steadiness to turning into a internet exporter of providers.
Crucially, this technique entails establishing the nation as a premier monetary and enterprise providers hub, for the whole South Asian and Indian Ocean area.
A core tactical part of this technique is the meticulous evaluation of the nation’s present excessive performing corporations throughout the providers sector. By deconstructing the operational, technological and market entry formulation of those profitable enterprises, authorities and trade leaders can set up a replicable blueprint.
This confirmed formulation can then be systematically utilized to foster and scale quite a few new service exporting companies, creating an exponential impact on the providers economic system.
Sri Lanka should strategically and assertively market itself to draw main world enterprise providers and know-how operations. This consists of actively courting enterprise course of outsourcing (BPO) companies, encouraging the institution of large-scale information centres and attracting IT corporations which might be searching for a reliable and cost-effective presence throughout the Asian time zone.
The nation possesses a compelling and distinct set of aggressive benefits that make it an exceptionally engaging location for FDI. These embrace the supply of strategic fiscal incentives reminiscent of focused tax advantages and holidays for priority industries, alongside a dedication to sustaining low and aggressive industrial vitality prices.
As well as, the nation advantages from a extremely educated English proficient and adaptable workforce – one that’s able to assembly the complicated calls for of world IT and providers sectors. Its strategic geo location strengthens its enchantment with seamless operations throughout key worldwide markets by successfully linking Europe, the Center East and East Asia.
The ultimate pillar of the financial transformation plan is to leverage the nation’s unparalleled location within the Indian Ocean because it straddles the world’s busiest East-West delivery lanes.
Sri Lanka should proactively consolidate its function as a serious regional maritime and aviation logistics hub. This requires sustained funding within the growth of world-class transshipment capabilities for each sea and air freight. The strategic growth and capability enlargement of the Port of Colombo – already a key transshipment level – and the Port of Hambantota (with its deep draft capabilities) are important.
This bold transfer won’t solely modernise logistics infrastructure but additionally appeal to the world’s largest logistics corporations to ascertain regional distribution centres. Moreover, it’s going to encourage main world delivery traces to ascertain a central secure regional residence port and operational base in Sri Lanka.
This consolidation will cement Sri Lanka’s place as the first logistics gateway for South Asia.
Q: What structural reforms or coverage modifications do you take into account most pressing to rebuild investor confidence, improve coverage stability and unlock sustainable non-public sector enlargement?
A: Rebuilding investor confidence in Sri Lanka requires a decisive shift from coverage volatility to a predictable guidelines based mostly financial framework. Probably the most pressing reforms span a number of interconnected areas, which collectively can restore credibility and unlock sustainable non-public sector enlargement.
Coverage consistency and institutional credibility should be established as a basis. Traders want clear assurance that tax regimes, commerce guidelines and regulatory frameworks gained’t change arbitrarily. This requires a medium-term fiscal and tax coverage framework, which is anchored in legislation, clear session earlier than coverage modifications and agency limits on retrospective taxation.
Strengthening the independence and technical capability of establishments such because the Central Financial institution of Sri Lanka, regulatory commissions, income authorities and the Treasury – whereas insulating them from political interference – will drastically cut back uncertainty and sign long-term dedication.
Bettering the benefit of doing enterprise is equally essential. Streamlining approvals, digitising licencing, customs and tax administration, and decreasing discretionary determination making will straight decrease transaction prices.
A scientific evaluation and elimination of outdated or overlapping laws will significantly profit SMEs and first-time traders whereas signalling that the state sees the non-public sector as a companion moderately than an impediment.
Fiscal reform stays important to restoring macroeconomic stability.
Sustainability aligned with a inexperienced blueprint ought to sit on the core of an organisation’s long-term technique
A simplified and predictable tax system with a broader base and fewer advert hoc exemptions is important. Medium-term fiscal frameworks, credible expenditure self-discipline and stronger public monetary administration would assist anchor expectations, and cut back threat premiums.
Decrease fiscal threat additionally requires higher governance of state-owned enterprises (SOEs) by way of skilled boards, clear efficiency targets, audited monetary disclosure, and a transparent separation between industrial and coverage targets.
SOE reform warrants focussed consideration. Giant state-owned enterprises proceed to empty public funds, crowd out non-public funding and deform markets. Implementing exhausting funds constraints, professionalising boards, publishing well timed audited accounts and pursuing strategic divestments or PPPs in non-strategic sectors – reminiscent of vitality distribution, transport and logistics – will ease the fiscal burden whereas opening area for personal capital and innovation.
Authorized and judicial reforms are important to guard investor rights.
Quicker contract enforcement, specialised industrial courts, predictable dispute decision mechanisms, clear land title methods, and the constant enforcement of competitors and procurement guidelines will strengthen the funding local weather.
Sustainable non-public sector progress will depend on a reputable export and productiveness led technique. Secure commerce insurance policies, commerce facilitation, focused assist for top worth sectors reminiscent of renewable vitality, logistics, IT-BPM, superior manufacturing and agribusiness, along with labour market and expertise reforms that align with non-public sector demand, are key to rebuilding long-term confidence and progress.
Extreme taxation dangers capital flight, decreased funding and slower financial progress
Q: If Sri Lanka might implement one transformational change at the moment, what do you imagine would have the best constructive affect on the nation’s worldwide picture over the subsequent 5 years?
A: One really transformational change can be to entrench coverage credibility and institutional independence by way of legislation and constant apply.
A visual and sustained dedication to predictable, guidelines based mostly governance may have the best constructive affect on the nation’s worldwide picture greater than any single infrastructure challenge or incentive scheme.
Worldwide traders, growth companions and score businesses are much less involved about short-term progress numbers; they’re extra keen on whether or not insurance policies are secure, contracts are honoured and establishments perform independently of political cycles.
Embedding medium-term fiscal and tax frameworks in legislation, defending the operational independence of the Central Financial institution and key regulators, and making certain clear session earlier than main coverage modifications will ship a strong sign that Sri Lanka has decisively moved away from advert hoc determination making.
Such a shift will shortly change perceptions. It might place Sri Lanka as a rustic that learns from crises, respects establishments and provides a predictable surroundings for long-term funding.
Over time, this credibility will cut back threat premiums, appeal to increased high quality overseas investments, strengthen commerce relationships and enhance entry to world capital markets.
In the end, a popularity for consistency and integrity in policy-making will do extra to rebuild Sri Lanka’s worldwide standing than any single reform headline. It’s going to sign that the nation will not be merely recovering but additionally maturing as a secure and dependable financial companion as nicely.
The way forward for the attire trade lies in transferring up the worth chain into areas that require ability, precision and class
Q: As a enterprise chief, what core rules information your determination making as you navigate each home challenges and worldwide expectations in an more and more complicated socioeconomic surroundings?
A: Although I as soon as relied solely on intestine intuition and instinct in determination making, the present panorama calls for a knowledge pushed, empirical strategy.
Given the multitude of funding alternatives and myriad choices, deep analysis and evaluation are important. This permits a clearer understanding of the enterprise outlook, correct threat evaluation and mitigation methods, typically requiring a cautious view on fairness and challenge financing.
Nevertheless, as worldwide complexity and uncertainty escalate, our reliance on planning and figures typically show efficient solely within the quick time period. In such moments, I inevitably revert to instinct and expertise.
Central to navigating this uncertainty is having a succesful and competent workforce, and management that may anticipate threat, handle uncertainty, suppose strategically and out of the field – and make the required robust choices to maneuver ahead.
This is the reason I strongly imagine in empowering my CEOs to make daring choices promptly. Hesitation over whether or not an thought is correct will in the end value us greater than transferring ahead, studying and resolving points as we go.
Sri Lanka should proactively consolidate its function as a serious regional maritime and aviation logistics hub
Q: How has Sino Lanka developed its enterprise technique to fulfill the expectations of a extra globally linked market? And what have been the important thing drivers of that shift?
A: Sino Lanka is deeply dedicated to being a world pacesetter, pushed by an unwavering dedication to innovation, technological sophistication and steady world attunement.
This philosophy is the cornerstone of our operations, positioning us not merely as individuals however leaders within the industries we serve.
We satisfaction ourselves on being an exceptionally agile organisation that’s structured to thrive amid fast technological change. Our operational mannequin emphasises swift and incisive determination making, and is supported by a tradition of rigorous information pushed testing.
This fast cycle strategy permits the speedy and seamless adoption of cutting-edge world applied sciences throughout our whole ecosystem, by encompassing merchandise, providers and various group corporations.
We view this capability for swift integration as a important aggressive benefit. Our strategic funding in future ahead know-how is each complete and deep, and targets transformative sectors to make sure long-term worth creation.
In healthcare, we’re revolutionising affected person care and diagnostics by way of the mixing of superior robotics for minimally invasive procedures and excessive precision imaging methods, whichdramatically enhance diagnostic accuracy and early detection capabilities at Evercare Hospitals in Dhaka and Chattogram.
By our three way partnership Evolution Auto, we have now launched cutting-edge electrical automobile (EV) applied sciences to the nation by aligning with the worldwide EV transition. Our portfolio consists of main worldwide manufacturers reminiscent of AVATR, XPENG, IM, RIDDARA, KYC, King Lengthy, Mahindra Final Mile Mobility, Revolt and Ather. Evolution Auto operates the biggest EV model portfolio in Sri Lanka.
Led by our renewable vitality arm Synogen, our dedication to sustainability is bolstered by investments in superior battery storage options that stabilise the grid, optimise renewable vitality utilisation and guarantee dependable clear energy supply. That is strengthened by our homegrown RadiantIQ platform, which delivers AI powered photo voltaic optimisation.
Throughout service oriented sectors reminiscent of hospitality and schooling, we’re leveraging the facility of synthetic intelligence and machine studying (ML).
In hospitality, this interprets into hyper personalised visitor experiences and optimised operations.
And in schooling, these applied sciences speed up and streamline onboarding and recruitment processes which might be at the moment deployed throughout our ventures – together with Common Faculty Lanka (UCL), Common Faculty Bangladesh (UCBD), Worldwide College Dhaka and Glenrich Worldwide College in Bangladesh.
This fast adaptation to exterior technological shifts, mixed with an inner dedication to encourage, prepare and empower each member of our workforce, is key to our sustained success and market resilience.
Crucially, the last word efficacy and affect of this bold technological technique depend on the whole and enthusiastic purchase in from each worker throughout the Sino Lanka Group. Every indivitwin isn’t merely an implementer however an lively agent of change – difficult the established order, championing new processes and embodying our revolutionary spirit.
Our long-term success is pushed by collective mental agility – the power to remain forward of fast technological change by figuring out significant long-term tendencies over short-lived distractions. This focus ensures Sino Lanka’s sustainability, market management and continued worth creation for stakeholders.
Q: What’s your long-term imaginative and prescient for Sino Lanka over the subsequent decade or so?
A: Our major strategic focus encompasses two key areas – i.e. steady enchancment and enlargement inside our present industrial sectors.
This dedication goes past sustaining the established order; it necessitates persistently elevating efficiency requirements and attaining excellence in our core competencies.
Moreover, we additionally intend to reinforce our regional affect. Our goal is to ascertain a considerable and enduring presence not solely inside Sri Lanka but additionally throughout the broader area. This will probably be achieved by way of the constant supply of superior high quality work and cultivation of strategic partnerships.
Crucially, we purpose to solidify our popularity as an trade chief by way of perpetual innovation. The overarching purpose is to be recognised as a pioneering innovator and a dependable, top quality developer, thereby making a legacy of tangible growth and constructive outcomes in each enterprise.
Rebuilding investor confidence in Sri Lanka requires a decisive shift from coverage volatility to a predictable guidelines based mostly financial framework
Q: If you happen to have been to convey a message to the worldwide neighborhood about Sri Lanka – vis-à-vis its potential, resilience and future – what would you select to focus on?
A: Sri Lanka represents a genuinely excellent location, providing nice potential for its residents and people searching for profitable careers.
The first catalyst for that is our citizenry: they’re clever, diligent and impressive; they usually possess a distinctly world perspective. They represent the powerhouse driving all progress and innovation.
Along with the distinctive populace, the nation is inherently stunning, that includes pristine seashores, misty mountains and historical heritage websites. This pure splendour attracts tens of millions of vacationers yearly and has confirmed Sri Lanka’s standing as a premier journey vacation spot.
We urge our residents, companions and associates to keep up unwavering religion in and assist for our nation. Whereas challenges exist – as they do in each dynamic, rising nation, we want to state unequivocally that we’re firmly dedicated not merely to confronting these points however decisively overcoming them too. We’re devoted to steady enchancment and the creation of a really progressive surroundings.
All through our historical past, Sri Lanka has persistently been a nation that champions significant, constructive change, embracing reform and renewal. That legacy fuels our present resolve and we stay dedicated to sustaining this important pursuit of a affluent future.
That is greater than a geographical location; it’s residence to all of us for profound private causes – household, tradition, historical past or future aspirations; and we’re collectively engaged in its safety and development.
