Sri Lanka's Dr Lalith Kotelawala's business
card is actually six cards printed on either side with five
folds, listing all the companies that are part of his
company, Ceylinco Consolidated.
As a Sinhala Christian, Kotelawala is part
of a minority group, but as the head of 256 companies that
employ more than 30,000 people, he is also acknowledged as
one of the country's leading business personalities.
He reveals for the first time how he entered
a Tamil Tiger's home, was welcomed, and how he believes that
the chances for peace in the nation have never been better.
Kotelawala's uncle was the third prime
minister of Sri Lanka and his father fought for economic
freedom, so he is not new to serving his country.
He is the recipient of Sri Lanka's highest
civilian honour, Deshmanya, and has also set up the Ceylinco
Sarana Fund, which helps the poor.
As a result, the businessman has in recent
years, become better known for his philanthropic efforts.
On a short trip to Dubai, Kotelawala talked
exclusively to Weekend Review on a range of topics, from his
tsunami relief efforts and corporate social responsibility,
to peace on the island nation and poor people's right to
credit.
Is it true that you have an unofficial
mandate that requires all Ceylinco employees to set aside
money for charity?
Each employee is encouraged to contribute to
the fund. It is purely voluntary and the directive is
recommended depending on the salary scale. The higher up you
go, the more you give. Today, the Ceylinco Sarana Fund has
Rs128 million. It has been decentralised and we give the
money to the 400 branches and every month Rs. 10 million is
distributed. The money is given out to areas other than
Colombo as we don't want to restrict charity to the urban
poor, but focus on the rural poor.
Does the money go to the northern and
eastern parts as well?
Yes, it does.
Has charity always figured in Ceylinco's
business plan?
In 1996, the LTTE exploded a bomb in the
Central Bank and I was there. Both my eyes were seriously
damaged and it was only after many operations that I
regained sight in one eye. When I was convalescing, Mohammad
Yunus [2006 Nobel Peace Prize winner] gave me a book about
Grameen Bank and access to credit. I was moved by it and
invited him to be the chairman of Ceylinco Grameen. Today,
300,000 women are members. A large number has risen above
the poverty line and we have given out more than Rs1 billion
in loans. What kind of interest rates does Grameen charge?
Well [pauses], it is high. It is about 20
per cent per year. But when you compare it to what the poor
are paying to the loan sharks, it is a blessing from heaven.
The loan sharks charge them almost 10 per cent per day.
Grameen gives $50 to the poorest of the poor to start with,
and they have the opportunity to get a shop-house in 20
years that takes care of their workspace and housing problem
in one shot. Finally, where Grameen succeeds is that it
provides access to credit to the poor that they would have
never been able to get from other agencies.
Do you think Mohammad Yunus should have won
the Nobel for Economics as opposed to the Peace Prize?
Well, I don't know about that. I just know
that he should be recognised, which he was and that's all
that matters [laughs].
Did Ceylinco's charity work have to shift
its focus a great deal after the 2004 tsunami hit Sri Lanka?
At the time, we were the leading insurance
company in Colombo. I saw that insurance companies across
the country - including mine - were turning away people and
said that they can't pay because the tsunami was an act of
God and was therefore not covered.
I felt horrible and it just didn't feel
right to say no. So, on the spur of the moment, I just said
‘we have to pay'. My staff was horrified and said it would
cost us billions. But so many people had lost so much. They
had nothing left. The Sri Lankan people trusted a
Sri Lankan company and when they needed us I
said we cannot desert them.
So we paid up and I personally led it. We
went from town to town - even the North and the East. I went
to the Tamil Tigers and was invited into their homes. I've
never told this to anyone but I was allowed, or I should
say, welcomed into their homes. We sat. We
talked. And they were delighted to know that
we cared.
Is it true that the Sri Lankan government
has set aside a 100-metre buffer zone that forbids the
fishing folk from rebuilding their homes and settling within
that radius, but has given that land to larger hotels?
[Nods] Yes, it is true. I have objected
strongly to that rule, but there is no change in the law.
Most of the Grameen women are fishing folk. We rebuilt their
homes even though the government took over the land and gave
it to large hotels. But we rebuilt some of the homes.
So you broke the law?
Yes, we did. But I'm not afraid of that when
it is for a good cause.
Most would say that it doesn't help to have
a conscience in business ...
That's true. And I believed that too until
the bomb blast in 1996. It made me realise we all have a
purpose in life and this is all the more true of people
blessed with money. I have been given a lot of money, but I
can't take it with me when I die.
Today, I have many homes, bungalows and
holiday homes. Some I haven't even seen. I have almost 20
cars, but I can only drive one at a time. I can afford to
eat the best food at the best hotels, but I am a diabetic.
So I cannot. Money is a tool that can be used to
improve lives and I believe that those with
money must use it to help others help themselves. It can
really help alleviate poverty.
Do you think the world has become more
materialistic over the years?
[Nods] Yes. Definitely. Especially after
this whole globalisation thing.
You're not a fan of globalisation?
I am against it. I don't believe in inviting
foreign giants. I prefer the micro alternative of small
businesses and encouraging these instead of allowing larger
outfits taking the country over and benefiting people who
are not even in the country.
They would argue that they provide jobs and
an infrastructure ...
Jobs for how many? A few thousand? We are a
completely home-grown company and employ 32,000 people. I
think other countries should encourage us by opening up
their markets further and allow developing economies such as
ours to work towards selfsufficiency.
What are the chances for peace in Sri Lanka?
I think this memorandum of understanding
between the two parties - the president and the leader of
the opposition - is very good. It is a coming together of 80
per cent of the voters, the people of Sri Lanka. I also
believe that there should be a change in the attitude of the
LTTE leadership.
If you ask the Tamils living under them if
they want democracy or the militia, they will choose
democracy. The LTTE leadership has to join the democratic
process and must have the vision to do so. When I visited
the regions after the tsunami, I learnt that the people were
fed up with the war. They wanted freedom for their children
to go to school in peace, without the fear of conscription
into the cadres. The tsunami tragedy was a perfect
opportunity for the government to talk peace. I was appalled
at the way the aid was handled. The world responded with
great compassion but the government, under Chandrika
Kumaratunga, would not give it to the LTTE. We could have
clinched peace at that time, especially because the
north-east was the worst off.
Does the LTTE, in your opinion, have the
vision that you talk about? Are they ready to relinquish the
control they wield over their people?