PESTEL on Sri Lanka...
The other day we were at a strategic planning session in a company I work for which is having a global foot print. The others in the forum were all business leaders from the South Asian region.
The first task we had to do was to do a PESTEL analysis of our home country that we were in charge of- I did it on Sri Lanka. Let me capture the essence: Political- No confidence motion against the government in progress. Economy- Country announces bankruptcy. Socialupheaval with 1000 trade unions on strike wanting the President/ Prime Minister to resign. Technology- fallout as limited power. Environmentdue to poor policy implementation forest cover declining from 53% to 29% in three decades, Legal- policitised hence no consistency on decision making.
President accepts that he made a mistake on the ‘ Organic Fertilizer’ policy Strategy
If we mirror this PESTEL analysis on a country like Somalia, Afghanistan or Iraq the countries will come out stronger. Sad but this is the reality we are in and the only person who is responsible for this situation is the Chief Executive of Sri Lanka the President Gotabaya Rajapaksa. Just like a company the buck stops at the top in success and failure.
Private sector
In this backdrop, we analyses each of country businesses and we have achieved an above the budgeted numbers. We see this not in the technology business that I am in but also in the FMCG sector or service industry due to the sharp talent that Sri Lanka business leaders have skilled them self with. However, a point to note is that this performance is NOT sustainable in an environment like that one sketched out- PESTEL. We will have many a companies crumbling unless we venture out to more stable markets and cushion the shock experiencing in Sri Lanka.
Consumer lesson to Private sector
Whilst the private sector and business chambers have gone to slumber due to selfish reasons that is tough to 4) comprehend, we see that the consumer has revolted with absolute anger that Sri Lanka as never seen before. The public sector walking out yesterday was the epitome of ‘ Agitation’ that the Rajapakse administration must move out. What is unique is that all walks of life has come to the streets with absolute passion and straightforwardness that is a lesson to corporate Sri Lanka( it has never happened before in Sri Lanka). Sadly, there is yet no response from the business Chambers which is very sad for Sri Lanka.
10 point plan
We have no option but all policy makers must exit the system and we have rebuild from scratch. We have to reshape the PESTEL so that we can say that the environment is conducive to a consumer to live and business to survive. May be some of the next steps to do is as follows:
1) De- brief the Cabinet on the meeting with IMF and agree the next steps towards restructuring the debt. Do not engage in cutting a deal with bilateral countries for taking loans on loans. The Chinese option must not be pursued.
2) Develop an aggressive ‘ economic develop’ agenda and a driver for each industry.
The objective is job creation.
3) Cut all costs be it small or bigthere is no need opening of International airports like we saw in the case of Ratmalana or flower shows in Nuwara Eliya. To my mind these were indications of absolute arrogance and not been sensitive to the middle and lower middle income segments and the dilemma faced. Direct all public expenditure for household relief.
It’s important to revisit the past IMF programmes and lessons learned from the earlier programmes. Follow the advise of IMF. Let’s make sure that we do not abandon their programme like in the last 14 occasions.
5) A new leadership must take ground so that the PESTEL can be addressed. The next six months is going to be very rough as food inflation is already at 30% plus.
6) Address the issue of the ‘ Easter Sunday attacks’ and demonstrate action. This is now
On the International arena. A global announcement was made from the Vatican. Sri Lanka deserves the hit on brand Sri Lankan.
We must get back the looted money out of Sri Lanka. This must be done with the help of all global actors be it INTERPOL or the engagements of the governments of the world.
Bring back the 19th amendment. This is the only time that this effort can work, if not Sri Lanka will have to face a repeat in the next fifty years.. Professionals must own up again and be prepared to work for the public sector. There is no option but we have to connect Sri Lanka to the world logistics framework. Drive the focussed industries of Tourism, Tea and BPO Industries. There must be money allocated to the development of brands like what South Korea did than just pushing categories.
( The author can be contracted on rohantha.athukorala1@
gmail.com)