Confectionery industry ...

“You have to term out your working capital facilities. If you are in stress, talk to your bank and negotiate early on, because everyone will rush. We can see banks restructuring like crazy. Banks will also not have lot of funding in terms of long-term funding.

So, my advice is that you should reach out to your banks early and reduce your working capital facilities, so your monthly commitment is small. Your net working capital (NWC) should come down similar to the multinationals. They all sell on cash. It’s either buy on cash or out. It’s very harsh, otherwise you will also lose. You can’t run large receivable books in a scenario like this. You have to move into a cash cycle,” he said.

As the economy is projected to contract in the coming year as well, Thewarathanthri pointed out that the confectionery industry must seize this opportunity to look outside for growth through possible partnerships.

“You have a huge opportunity to go out. You don’t generally think about it when you are comfortably in an Island with a 20 million population. When the country is not growing, you won’t grow. That’s the reality. You have really good brands with good quality. So, you have to partner and expand. I’m not trying to take the capital away from Sri Lanka,” he added. Specially, Thewarathanthri highlighted that there are ample opportunities for local confectionery players in India and Africa if they are willing to move out of their comfort zones and island mindset.

“Many Indian and OECD multinationals are out there predominantly through agents. Some of our companies are already out there, but it’s not enough. Sri Lankans are generally in a comfort zone; once you build your business and make couple of million dollars, then you are happy.

Then, you don’t want to expand, you think what for, why should I do it. My kids have a good life. My second and third generations already happy. But, do it for the larger purpose. Do it for the country. That’s how all the multinationals have grown,” he said.