Features
David Pieris has earned ‘unshakable’ trust of Sri Lankans over 30 years, says its Group Chair
by Sanath Nanayakkare
The Sri Lankan automotive market is saturated with a number of established players. But one company stands out from the mix: David Pieris Motor Company (DPMC) – the indisputable game changer of passenger transportation in Sri Lanka.
In the late 1970s, the entire country woke up to the sound of Bajaj three wheeler produced by Bajaj Auto India which is designed and built to carry three passengers plus a load. The entry of this wonder vehicle marked the turning point in Sri Lanka’s mobility history.
Easy to manoeuvre, easy to move from point A to point B, and being reasonable in price, it opened the floodgates for equity and social justice by offering mobility for all, leaving no one stranded on the road or in their last mile journey.
Those who could never buy a decent mode of transportation rallied round the Bajaj three wheeler while those who rode on high-end vehicles also began to realise the value of taking the tuk-tuk to get things done without any hassle.
Today no one is judging the economic and social parameters of three-wheeler-users because it is not only used by humble passengers on the road but also by families, self-employed people, offices, government institutions and even corporates. The Bajaj three-wheeler has undoubtedly become a pleasant interruption rather than a disruption.
Although cars have been a display of wealth, success, and social status, three-wheelers do its basic function beyond expectations to the envy of everyone.
As a result, DPMC, the sole agent for Bajaj three-wheeler in Sri Lanka, has become the catalyst in breaking down the mobility barrier as well as the society’s traditional perceptions about passenger transportation.
“When we presented the three-wheeler as a family vehicle, it touched the lives of thousands of Sri Lankans making it possible for the first time for them to own an affordable, economical and convenient vehicle. It made them mobile while opening up a source of revenue through self-employment. It was this groundbreaking concept that led to DPMC becoming the largest automotive company in the country,” Rohana Dissanayake, Group Chairman/Managing Director of David Pieris Group of Companies told The Island during a recent interview.
“DPMC’s Manufacturing Complex in Ranna, Tangalle is Sri Lanka’s largest and very first conveyorised vehicle assembly plant. It is situated on a 23-acre land where motorcycles are assembled with 25%- 30% value additions through locally produced accessories in line with the government’s Standard Operating Procedure (SOP) at present,” he said.
“Although we are the clear market leader in Sri Lanka for both three wheelers and motorcycles, we have diversified the Group to reduce its dependency on a single market or product. In fact, we did so in the wake of the Covid-19 health crisis, the economic crisis as well as the ban imposed by the government on importation of vehicles,” he noted.
“Today, Assetline Finance Ltd., our own finance company provides financing solutions to many customers. These solutions are aimed at supporting SMEs, leasing of machinery and equipment and empowering women entrepreneurs who are not in a position to obtain financial services from banks because they can’t meet with the formal banking criteria,”
“We have commenced the conversion of three wheelers to EVs. Meanwhile, David Pieris (DP) Solar Energy, DP Racing and Leisure and DP City Development are other key areas we have entered into. We have deployed the best minds of each industry in this exercise. As a result, the diversification strategy has helped us weather the challenges faced by the automotive industry and continue our growth momentum without any interruption,” he said.
When asked how he felt about wearing the mantle of David Pieris Group Chairman/MD at a time like this, he said,” I find it challenging as the economy is running through difficulties, but any challenge would bring opportunities with it, and we should be able to identify them and harness them. Even at the peak of the challenging times, we were able to navigate through it to a great extent. When motorcycle and three-wheeler imports were restricted, we started assembling them in Sri Lanka. Today we assemble about 1,500-2,000 motorcycles under the local value addition programme which was introduced by the government. So, you see, we have been able to tap the opportunities arising from unprecedented conditions on the ground.”
“In 1994, we became independent from Richard Pieris Ltd when David Pieris bought this company through a management buyout. At the time, we had a workforce of about 194 people. Today we are happy to say that our Group employs about 1,700 people. We have sold almost three million two-wheelers and three wheelers to happy customers. We have provided four million direct and indirect jobs through this industry. Quietly yet unshakably, David Pieris Group has earned the trust of the people of this country over its 30- year journey.”
“To ensure customer satisfaction in our auto business, we have established about 1,400 Bajaj dealerships across the country. Bajaj is marketed in 72 countries and we are the only country where we have positioned this vehicle as a family vehicle. In rural areas, where transportation system is weak after the dusk falls , what’s available is a three-wheeler to commute or in any emergency where mobility is crucial. That’s the reality.”
When asked about the possible lifting of the ban on vehicle imports, he said,” If the ban is lifted, there will be a great pent-up demand for three wheelers and motorcycles. We are also working on getting down an electric three-wheelers from India. Our plan is to market electric three-wheelers coupled with a solar solution. That way, our products won’t be a burden on the national grid. We will be using our existing network to set up electric charging stations by selecting 300-500 points island wide for this purpose. We are also working on getting down an entry-level electric four-wheeler. It’s too early to divulge more details about it because the idea is still in the planning phase.”
“Our strength is our human resource. We always train our staff to be honest and straightforward in their dealings. We inculcate in them the full knowledge of the company they represent. We ensure that they have perfect knowledge of the products they sell. Only then they will be able to educate the buyers on the nature of the product, its utility, the materials used in production, and how and when servicing should be carried out, to make the best use of the vehicles and accessories they buy from us. Training our service dealers to be par excellence is also at the top of our mind. For instance, the female technicians from Jaffna that we trained free-of-charge are doing a great job in the northern part of the country, and today some of them have become technopreneurs.”
“Our spare-parts market share is in the range of 60%-70%. We have retained this market share for 40 years now and it’s no easy feat. Our customers are well aware that if they use inferior spare parts, their vehicles would be at the risk of unreliable performance. That many customers wouldn’t buy our spare parts if our prices were not affordable. More than we talk about our spare parts prices, just look at our market share. It speaks volumes. You can talk the talk about your great products or services or prices, but building customer trust means walking the walk.”
“Another reason we have become the industry leader is the efficient communication strategy we maintain with our sales dealers, spare parts dealers and service dealers. We make it a point to listen to them and take their suggestions and concerns on board. That way, we are all on the same page on what we do as a team.”
When asked if new competitors could enter the market in the future, he said,” It may happen because technology is evolving. Today we have gasoline engines. Next is electric. So there is a lot of space for many disruptions to happen. But as we see it, those disruptive trends will transform the industry, which is really good. The bottom line is; DPMC and our principles will also be keeping abreast of such breakthroughs to give the best to our customers,” Rohana Dissanayake said.
ONE THING STOOD OUT throughout this interview; David Pieris Group was not the complaining type though vehicle import restrictions are still in place. Their business is a labour of love for them. Instead of paying lip service to the idea of exploring new ventures for continued operational success and growth, they have actually embraced and implemented it against multiple uncertainties. What’s the end result? David Pieris has strategically picked up the slack on the balance sheet to go from strength to strength.
by Dr Gotabhya Ranasinghe
Senior Consultant Cardiologist
National Hospital Sri Lanka
When we sought a meeting with Hon Dr. Ramesh Pathirana, Minister of Health, he graciously cleared his busy schedule to accommodate us. Renowned for his attentive listening and deep understanding, Minister Pathirana is dedicated to advancing the health sector. His openness and transparency exemplify the qualities of an exemplary politician and minister.
Dr. Palitha Mahipala, the current Health Secretary, demonstrates both commendable enthusiasm and unwavering support. This combination of attributes makes him a highly compatible colleague for the esteemed Minister of Health.
Our discussion centered on a project that has been in the works for the past 30 years, one that no other minister had managed to advance.
Minister Pathirana, however, recognized the project’s significance and its potential to revolutionize care for heart patients.
The project involves the construction of a state-of-the-art facility at the premises of the National Hospital Colombo. The project’s location within the premises of the National Hospital underscores its importance and relevance to the healthcare infrastructure of the nation.
This facility will include a cardiology building and a tertiary care center, equipped with the latest technology to handle and treat all types of heart-related conditions and surgeries.
Securing funding was a major milestone for this initiative. Minister Pathirana successfully obtained approval for a $40 billion loan from the Asian Development Bank. With the funding in place, the foundation stone is scheduled to be laid in September this year, and construction will begin in January 2025.
This project guarantees a consistent and uninterrupted supply of stents and related medications for heart patients. As a result, patients will have timely access to essential medical supplies during their treatment and recovery. By securing these critical resources, the project aims to enhance patient outcomes, minimize treatment delays, and maintain the highest standards of cardiac care.
Upon its fruition, this monumental building will serve as a beacon of hope and healing, symbolizing the unwavering dedication to improving patient outcomes and fostering a healthier society.We anticipate a future marked by significant progress and positive outcomes in Sri Lanka’s cardiovascular treatment landscape within the foreseeable timeframe.
by Fr. Emmanuel Fernando, OMI
Jesuit Fr. Aloysius Pieris (affectionately called Fr. Aloy) celebrated his 90th birthday on April 9, 2024 and I, as the editor of our Oblate Journal, THE MISSIONARY OBLATE had gone to press by that time. Immediately I decided to publish an article, appreciating the untiring selfless services he continues to offer for inter-Faith dialogue, the renewal of the Catholic Church, his concern for the poor and the suffering Sri Lankan masses and to me, the present writer.
It was in 1988, when I was appointed Director of the Oblate Scholastics at Ampitiya by the then Oblate Provincial Fr. Anselm Silva, that I came to know Fr. Aloy more closely. Knowing well his expertise in matters spiritual, theological, Indological and pastoral, and with the collaborative spirit of my companion-formators, our Oblate Scholastics were sent to Tulana, the Research and Encounter Centre, Kelaniya, of which he is the Founder-Director, for ‘exposure-programmes’ on matters spiritual, biblical, theological and pastoral. Some of these dimensions according to my view and that of my companion-formators, were not available at the National Seminary, Ampitiya.
Ever since that time, our Oblate formators/ accompaniers at the Oblate Scholasticate, Ampitiya , have continued to send our Oblate Scholastics to Tulana Centre for deepening their insights and convictions regarding matters needed to serve the people in today’s context. Fr. Aloy also had tried very enthusiastically with the Oblate team headed by Frs. Oswald Firth and Clement Waidyasekara to begin a Theologate, directed by the Religious Congregations in Sri Lanka, for the contextual formation/ accompaniment of their members. It should very well be a desired goal of the Leaders / Provincials of the Religious Congregations.
Besides being a formator/accompanier at the Oblate Scholasticate, I was entrusted also with the task of editing and publishing our Oblate journal, ‘The Missionary Oblate’. To maintain the quality of the journal I continue to depend on Fr. Aloy for his thought-provoking and stimulating articles on Biblical Spirituality, Biblical Theology and Ecclesiology. I am very grateful to him for his generous assistance. Of late, his writings on renewal of the Church, initiated by Pope St. John XX111 and continued by Pope Francis through the Synodal path, published in our Oblate journal, enable our readers to focus their attention also on the needed renewal in the Catholic Church in Sri Lanka. Fr. Aloy appreciated very much the Synodal path adopted by the Jesuit Pope Francis for the renewal of the Church, rooted very much on prayerful discernment. In my Religious and presbyteral life, Fr.Aloy continues to be my spiritual animator / guide and ongoing formator / acccompanier.
Fr. Aloysius Pieris, BA Hons (Lond), LPh (SHC, India), STL (PFT, Naples), PhD (SLU/VC), ThD (Tilburg), D.Ltt (KU), has been one of the eminent Asian theologians well recognized internationally and one who has lectured and held visiting chairs in many universities both in the West and in the East. Many members of Religious Congregations from Asian countries have benefited from his lectures and guidance in the East Asian Pastoral Institute (EAPI) in Manila, Philippines. He had been a Theologian consulted by the Federation of Asian Bishops’ Conferences for many years. During his professorship at the Gregorian University in Rome, he was called to be a member of a special group of advisers on other religions consulted by Pope Paul VI.
Fr. Aloy is the author of more than 30 books and well over 500 Research Papers. Some of his books and articles have been translated and published in several countries. Among those books, one can find the following: 1) The Genesis of an Asian Theology of Liberation (An Autobiographical Excursus on the Art of Theologising in Asia, 2) An Asian Theology of Liberation, 3) Providential Timeliness of Vatican 11 (a long-overdue halt to a scandalous millennium, 4) Give Vatican 11 a chance, 5) Leadership in the Church, 6) Relishing our faith in working for justice (Themes for study and discussion), 7) A Message meant mainly, not exclusively for Jesuits (Background information necessary for helping Francis renew the Church), 8) Lent in Lanka (Reflections and Resolutions, 9) Love meets wisdom (A Christian Experience of Buddhism, 10) Fire and Water 11) God’s Reign for God’s poor, 12) Our Unhiddden Agenda (How we Jesuits work, pray and form our men). He is also the Editor of two journals, Vagdevi, Journal of Religious Reflection and Dialogue, New Series.
Fr. Aloy has a BA in Pali and Sanskrit from the University of London and a Ph.D in Buddhist Philosophy from the University of Sri Lankan, Vidyodaya Campus. On Nov. 23, 2019, he was awarded the prestigious honorary Doctorate of Literature (D.Litt) by the Chancellor of the University of Kelaniya, the Most Venerable Welamitiyawe Dharmakirthi Sri Kusala Dhamma Thera.
Fr. Aloy continues to be a promoter of Gospel values and virtues. Justice as a constitutive dimension of love and social concern for the downtrodden masses are very much noted in his life and work. He had very much appreciated the commitment of the late Fr. Joseph (Joe) Fernando, the National Director of the Social and Economic Centre (SEDEC) for the poor.
In Sri Lanka, a few religious Congregations – the Good Shepherd Sisters, the Christian Brothers, the Marist Brothers and the Oblates – have invited him to animate their members especially during their Provincial Congresses, Chapters and International Conferences. The mainline Christian Churches also have sought his advice and followed his seminars. I, for one, regret very much, that the Sri Lankan authorities of the Catholic Church –today’s Hierarchy—- have not sought Fr.
Aloy’s expertise for the renewal of the Catholic Church in Sri Lanka and thus have not benefited from the immense store of wisdom and insight that he can offer to our local Church while the Sri Lankan bishops who governed the Catholic church in the immediate aftermath of the Second Vatican Council (Edmund Fernando OMI, Anthony de Saram, Leo Nanayakkara OSB, Frank Marcus Fernando, Paul Perera,) visited him and consulted him on many matters. Among the Tamil Bishops, Bishop Rayappu Joseph was keeping close contact with him and Bishop J. Deogupillai hosted him and his team visiting him after the horrible Black July massacre of Tamils.
Sri Lanka-Singapore Free Trade Agreement
By Gomi Senadhira
senadhiragomi@gmail.com
“You might tell fairy tales, but the progress of a country cannot be achieved through such narratives. A country cannot be developed by making false promises. The country moved backward because of the electoral promises made by political parties throughout time. We have witnessed that the ultimate result of this is the country becoming bankrupt. Unfortunately, many segments of the population have not come to realize this yet.” – President Ranil Wickremesinghe, 2024 Budget speech
Any Sri Lankan would agree with the above words of President Wickremesinghe on the false promises our politicians and officials make and the fairy tales they narrate which bankrupted this country. So, to understand this, let’s look at one such fairy tale with lots of false promises; Ranil Wickremesinghe’s greatest achievement in the area of international trade and investment promotion during the Yahapalana period, Sri Lanka-Singapore Free Trade Agreement (SLSFTA).
It is appropriate and timely to do it now as Finance Minister Wickremesinghe has just presented to parliament a bill on the National Policy on Economic Transformation which includes the establishment of an Office for International Trade and the Sri Lanka Institute of Economics and International Trade.
Was SLSFTA a “Cleverly negotiated Free Trade Agreement” as stated by the (former) Minister of Development Strategies and International Trade Malik Samarawickrama during the Parliamentary Debate on the SLSFTA in July 2018, or a colossal blunder covered up with lies, false promises, and fairy tales? After SLSFTA was signed there were a number of fairy tales published on this agreement by the Ministry of Development Strategies and International, Institute of Policy Studies, and others.
However, for this article, I would like to limit my comments to the speech by Minister Samarawickrama during the Parliamentary Debate, and the two most important areas in the agreement which were covered up with lies, fairy tales, and false promises, namely: revenue loss for Sri Lanka and Investment from Singapore. On the other important area, “Waste products dumping” I do not want to comment here as I have written extensively on the issue.
1. The revenue loss
During the Parliamentary Debate in July 2018, Minister Samarawickrama stated “…. let me reiterate that this FTA with Singapore has been very cleverly negotiated by us…. The liberalisation programme under this FTA has been carefully designed to have the least impact on domestic industry and revenue collection. We have included all revenue sensitive items in the negative list of items which will not be subject to removal of tariff. Therefore, 97.8% revenue from Customs duty is protected. Our tariff liberalisation will take place over a period of 12-15 years! In fact, the revenue earned through tariffs on goods imported from Singapore last year was Rs. 35 billion.
The revenue loss for over the next 15 years due to the FTA is only Rs. 733 million– which when annualised, on average, is just Rs. 51 million. That is just 0.14% per year! So anyone who claims the Singapore FTA causes revenue loss to the Government cannot do basic arithmetic! Mr. Speaker, in conclusion, I call on my fellow members of this House – don’t mislead the public with baseless criticism that is not grounded in facts. Don’t look at petty politics and use these issues for your own political survival.”
I was surprised to read the minister’s speech because an article published in January 2018 in “The Straits Times“, based on information released by the Singaporean Negotiators stated, “…. With the FTA, tariff savings for Singapore exports are estimated to hit $10 million annually“.
As the annual tariff savings (that is the revenue loss for Sri Lanka) calculated by the Singaporean Negotiators, Singaporean $ 10 million (Sri Lankan rupees 1,200 million in 2018) was way above the rupees’ 733 million revenue loss for 15 years estimated by the Sri Lankan negotiators, it was clear to any observer that one of the parties to the agreement had not done the basic arithmetic!
Six years later, according to a report published by “The Morning” newspaper, speaking at the Committee on Public Finance (COPF) on 7th May 2024, Mr Samarawickrama’s chief trade negotiator K.J. Weerasinghehad had admitted “…. that forecasted revenue loss for the Government of Sri Lanka through the Singapore FTA is Rs. 450 million in 2023 and Rs. 1.3 billion in 2024.”
If these numbers are correct, as tariff liberalisation under the SLSFTA has just started, we will pass Rs 2 billion very soon. Then, the question is how Sri Lanka’s trade negotiators made such a colossal blunder. Didn’t they do their basic arithmetic? If they didn’t know how to do basic arithmetic they should have at least done their basic readings. For example, the headline of the article published in The Straits Times in January 2018 was “Singapore, Sri Lanka sign FTA, annual savings of $10m expected”.
Anyway, as Sri Lanka’s chief negotiator reiterated at the COPF meeting that “…. since 99% of the tariffs in Singapore have zero rates of duty, Sri Lanka has agreed on 80% tariff liberalisation over a period of 15 years while expecting Singapore investments to address the imbalance in trade,” let’s turn towards investment.
Investment from Singapore
In July 2018, speaking during the Parliamentary Debate on the FTA this is what Minister Malik Samarawickrama stated on investment from Singapore, “Already, thanks to this FTA, in just the past two-and-a-half months since the agreement came into effect we have received a proposal from Singapore for investment amounting to $ 14.8 billion in an oil refinery for export of petroleum products. In addition, we have proposals for a steel manufacturing plant for exports ($ 1 billion investment), flour milling plant ($ 50 million), sugar refinery ($ 200 million). This adds up to more than $ 16.05 billion in the pipeline on these projects alone.
And all of these projects will create thousands of more jobs for our people. In principle approval has already been granted by the BOI and the investors are awaiting the release of land the environmental approvals to commence the project.
I request the Opposition and those with vested interests to change their narrow-minded thinking and join us to develop our country. We must always look at what is best for the whole community, not just the few who may oppose. We owe it to our people to courageously take decisions that will change their lives for the better.”
According to the media report I quoted earlier, speaking at the Committee on Public Finance (COPF) Chief Negotiator Weerasinghe has admitted that Sri Lanka was not happy with overall Singapore investments that have come in the past few years in return for the trade liberalisation under the Singapore-Sri Lanka Free Trade Agreement. He has added that between 2021 and 2023 the total investment from Singapore had been around $162 million!
What happened to those projects worth $16 billion negotiated, thanks to the SLSFTA, in just the two-and-a-half months after the agreement came into effect and approved by the BOI? I do not know about the steel manufacturing plant for exports ($ 1 billion investment), flour milling plant ($ 50 million) and sugar refinery ($ 200 million).
However, story of the multibillion-dollar investment in the Petroleum Refinery unfolded in a manner that would qualify it as the best fairy tale with false promises presented by our politicians and the officials, prior to 2019 elections.
Though many Sri Lankans got to know, through the media which repeatedly highlighted a plethora of issues surrounding the project and the questionable credentials of the Singaporean investor, the construction work on the Mirrijiwela Oil Refinery along with the cement factory began on the24th of March 2019 with a bang and Minister Ranil Wickremesinghe and his ministers along with the foreign and local dignitaries laid the foundation stones.
That was few months before the 2019 Presidential elections. Inaugurating the construction work Prime Minister Ranil Wickremesinghe said the projects will create thousands of job opportunities in the area and surrounding districts.
The oil refinery, which was to be built over 200 acres of land, with the capacity to refine 200,000 barrels of crude oil per day, was to generate US$7 billion of exports and create 1,500 direct and 3,000 indirect jobs. The construction of the refinery was to be completed in 44 months. Four years later, in August 2023 the Cabinet of Ministers approved the proposal presented by President Ranil Wickremesinghe to cancel the agreement with the investors of the refinery as the project has not been implemented! Can they explain to the country how much money was wasted to produce that fairy tale?
It is obvious that the President, ministers, and officials had made huge blunders and had deliberately misled the public and the parliament on the revenue loss and potential investment from SLSFTA with fairy tales and false promises.
As the president himself said, a country cannot be developed by making false promises or with fairy tales and these false promises and fairy tales had bankrupted the country. “Unfortunately, many segments of the population have not come to realize this yet”.
(The writer, a specialist and an activist on trade and development issues . )
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