Retailers call for regulatory and policy overhauls to support industry

Against a backdrop of economic turbulence, Sri Lanka’s retailers are calling for urgent regulatory and policy overhauls, to support the industry in the current context, which would also provide more visibility on overall strategy at a macro level. 

“Such a framework, which facilitates enhanced access to finance, focuses on entrepreneurship and support infrastructure and technology building efforts, is vital for the retail industry, which in turn can aid in the country’s growth,” Sri Lanka Retailers Association (SLRA) President Murali Prakash said.

“In doing so, the legal framework associated with, including various acts such as consumer protection to shop and office, can be revisited,” he added. 

With indirect taxes and related costs directly impacting the industry, Prakash also called for better understanding and whetting of such taxes, with a view to a gradual easing out, citing their detrimental impact on the industry. 
He further stressed the need for speedier action on the state-owned enterprises and related entities to ensure that the inefficiencies of these organisations do not spill over and impact the retail industry and business at large, negatively. 

With higher costs and volume challenges putting pressure on margins and cash flows, while inflation and added taxes causing alterations in consumer spending, along with dollar supply and related supply chain issues, Prakash emphasised that re-enacting the supply chain to be leaner, meaner and perhaps more locally focused, could be one strategy to leverage for cost advantages in selected areas. 

New market spaces, both locally and on the export front, due to the changing customer perceptions and a greater focus on dollar earnings, technology-driven future-centric applications for efficiency, speed and to fulfil the aspirations of the younger consumer segments, are among other strategies the industry now needs to explore and leverage, he pointed out. 

The SLRA’s flagship annual event Sri Lanka Retail Forum (SLRF), which is scheduled for March 1, will address many of the pressing challenges currently faced by the industry and explore the proven strategies and vital avenues to explore to ensure stability and sustainability for the industry, Prakash said.