Address:
John Keells Holdings PLC, No. 117 Sir Chittampalam A. Gardiner Mawatha, Colombo 2, Sri Lanka.
Telephone:
+94 11 230 6000
Email:
jkh@keells.com
Web:
https://www.keells.com/
Q: How important will technology be in the business sphere in the future?
A: The nature of business locally and globally is changing rapidly as a result of different forms of disruption, which challenges traditional business models. As a result, businesses need to be agile and customer centric to stay abreast of new developments.
Technology and digital disruption will play a larger role in providing an unparalleled offering and product, and data analytics will be instrumental in facilitating such analyses for businesses.
In realising the future prospects of such a transformation, by leveraging the group’s comprehensive data ecosystem, John Keells Holdings (JKH) in consultation with a leading global management consulting firm embarked on the initial phase of its advanced analytics journey in June 2019.
The JKH group will leverage the diversity of the industries in which it operates and its access to a comprehensive data ecosystem. Moreover, we will pursue the roll out of a road map of well-defined advanced analytics use cases, which aims to unlock significant value and address key business challenges across value chains in these industry groups.
Q: What is your take on the state of business in Sri Lanka?
A: Prior to the Easter Sunday terrorist attacks that impacted the country in April, the operating performance of our businesses improved compared to the previous year on the back of improvements in consumer sentiment.
Sri Lanka has displayed resilience following the attacks and there have been indications of a gradual recovery in tourist arrivals. The private sector in particular has played a major role in the country’s recovery process by way of undertaking public relations communications through various social media channels and promotion of the destination in the immediate aftermath of the crisis.
Business and consumer sentiment has improved since, and JKH believes that this positive momentum will continue in the medium term given the infrastructure investment outlook for the country, as well as the expectation of political stability following the outcome of the presidential election.
Q: In the prevailing corporate environment, what are the group’s priorities?
A: JKH has remained resilient amid challenges in the corporate environment following 4/21. The group has been and will persist in being resilient, forward-looking, innovative and proactive in its business stance, while prioritising stakeholders and the sustainable growth of their returns – i.e. the core driver of JKH’s business model and value creation process.
Investments in the consumer foods, retail and leisure sector groups are expected to drive growth in the future. The recent investments in expanding capacity in many of our businesses and the availability of the full complement of hotels – inclusive of the new additions of Cinnamon Life, positioned as an iconic addition to the capital city’s skyline that will enhance Colombo living and luxury; and Cinnamon Bentota Beach and Cinnamon Velifushi Maldives – will further fuel the performance of the group.
Q: What measures can Sri Lanka implement to improve its ‘Ease of Doing Business’ ranking and global competitiveness?
A: The global Ease of Doing Business rankings were published recently and Sri Lanka moved up in 2019. However, it’s important to look beyond these ratings alone to assess the practical realities of doing business in this country.
Basic requirements such as accessibility to land, clarity and stability in all forms of taxes – direct and indirect – are important issues that require immediate attention to build investor confidence in the country.
Although economic reforms such as the introduction of the new Inland Revenue Act were enacted after January 2015 with a view to broad base tax revenues, ad hoc changes in taxation in consecutive budget proposals have continued to result in ambiguity and uncertainty.
Therefore, it is pivotal that the country develops a more proactive taxation policy that ensures a more conducive and stable tax environment for investment.
Q: How would you rate the level of social awareness in the corporate sector?
A: The private sector has displayed increasing interest and commitment to its social responsibility, and undertaken social initiatives for the betterment of the operating environment.
JKH has maintained a leading position in the development sphere, and played the role of advocate for change and adaptation in the workplace, pursuing pressing social issues ranging from environmental sustainability, plastic pollution and reducing the consumption of natural resources, to the mitigation of gender based violence and increasing the participation of women in the workforce.
Although the private sector is embarking on focussed projects to combat current social concerns, there is scope for improved collaboration with the public sector to ensure more effective programmes.
Q: Could you elaborate on some of the group’s initiatives?
A: Through our social entrepreneurship initiative Plasticcycle – which was launched in 2017 – we work with the private and public sectors to encourage the reduction and rationalisation of single use plastics, supporting responsible disposal and promoting recycling initiatives.
One such project involves collecting and recycling polyethylene terephthalate (PET) bottles along the Southern Expressway, in partnership with the Road Development Authority (RDA) and Eco Spindles.
We’re also working on a few pilot projects including a beach caretaker initiative in partnership with Cinnamon Hotels and Resorts and the Marine Environment Protection Authority (MEPA), and a project on upcycling non-recyclable plastics with the Sri Lanka Navy.
Furthermore, JKH joined the IFC SheWorks Sri Lanka partnership last year to work on gender smart solutions contributing to increasing the participation of women in the workforce.
As part of this initiative, we’re working to enhance and enrich our processes in the recruitment and retention of female talent. This also enables us to provide more opportunities for women to participate in nontraditional roles and address the unconscious bias that deters them from joining certain industries or jobs.
In addition, this partnership supports female employees and entrepreneurs, by identifying and implementing business case research for gender diversity in value chains, and promoting employment opportunities for women in the businesses from which the company sources.
Q: What are your thoughts on the group’s prospects in the medium term?
A: The country’s macroeconomic fundamentals have recovered in recent months, following a challenging environment over the last few years.
JKH expects the current growth momentum to continue into the medium term and therefore, continues to invest for growth in its key businesses – which are aligned with the growth sectors of the economy – while expanding the group’s reach through investments in data analytics and innovation.
And JKH continues to invest in its leisure, retail, consumer foods and property sector groups, furthering the reach of its portfolio through the addition of new hotel properties and retail outlets. The expected growth momentum is anticipated from the continuous growth of tourist arrivals to the city and consequently, the contribution from Cinnamon Life – which is positioned as the largest integrated resort in Sri Lanka – as well as the sustained growth in modern trade penetration and demand for housing infrastructure.
Therefore, we remain positive about the future growth potential of the JKH group especially given the prospects of individual industry groups.