Establishing a business in Sri Lanka presents a challenge, with entrepreneurs comprising less than 2% of the population. Samantha Weerasinghe, Managing Director of Serendib Global Trading, has a wealth of expertise and experience building a successful company in a challenging economy.
With a finance background, the CIMA-UK affiliate and MBA alumni of the University of Sri Jayewardenapura’s Postgraduate Institute of Management, Weerasinghe launched Serendib Global Trading in 2016 to export fresh produce to the Middle East. Additionally, he introduced Tropical Fresh, a local outlet specializing in fresh fruit juices and snacks in Colombo 07. In this interview, he shares insights into the company’s successes, sector challenges, and strategies for unlocking new opportunities.
What inspired you to start Tropical Fresh?
In 2014, I extensively studied Dubai’s largest fruits and vegetables market, analyzing market segments, value addition, and branding strategies employed by global brands. I also explored opportunities for Sri Lankan produce. Inspired by my findings, in 2016, I launched a retail outlet in Colombo 07 featuring fresh fruit juices and snacks akin to those popular in the Middle East. This venture quickly expanded, with initial air shipments of fresh fruits and vegetables to Dubai and Bahrain. Within a year, our reach extended to Maldives, Qatar, Sharjah, and beyond, including container shipments of king coconuts, papaya, and more.
Additionally, we began supplying premium packaged fruits, vegetables, juices, and snacks to Colombo and its suburbs via online delivery partners. However, the landscape drastically changed with the onset of the Covid-19 pandemic in 2020. Lockdowns shuttered global markets, and our exports dwindled. Adapting swiftly, we pivoted to online sales, leveraging the surge in demand as traditional outlets closed. Despite challenges in accessing wholesale markets and managing health risks, our rigorous hygiene protocols kept our team safe.
Subsequent hurdles, such as the 2022 USD crisis and fuel shortages in Sri Lanka, further tested our resilience. Yet, through unwavering dedication and hard work, we navigated these obstacles, reaffirming our commitment to our business and its growth.
How did you expand your business amidst various crises and challenges that engulfed the economy?
In my MBA I learned that business strategy parallels war strategy. To thrive in your industry’s early stages, you must possess passion, dedication, commitment, a relentless attitude, and lead by example. Delegation alone won’t suffice; you must actively engage. As your supplier networks, customer base, and team solidify, you can ease up, but ongoing monitoring remains crucial.
Moreover, we adopted a blue ocean strategy, eschewing traditional container exports to Dubai. This approach not only boosted margins but also minimized competition, offering a strategic advantage over conventional fruit and vegetable exporters.
What are the challenges faced by fresh produce exporters?
In this industry, challenges are mounting, known for its ease of entry but difficulty in sustainability. Intense price competition from India, volatile fluctuations in Sri Lanka’s produce market, and reliance on credit-based transactions pose significant hurdles. Moreover, inexperienced exporters flooding Dubai exacerbate the issue, leading many newcomers to collapse within six months due to financial losses and unpaid debts.
Additionally, Sri Lanka faces two key challenges in its agricultural export sector. Firstly, there’s a notable absence of export-grade fruits and vegetables, as farmers are reluctant to adopt grading practices for supply to exporters and wholesale markets. In contrast, countries like India, Pakistan, Thailand, and Vietnam have established export pack houses, ensuring access to high-quality produce for export orders.
Secondly, the lack of cold storage facilities in farming regions and economic hubs significantly reduces the shelf life of many Sri Lankan fruits and vegetables compared to their Asian counterparts. To mitigate this, exporters should have access to cold storage facilities at Katunayake’s cargo village, maintaining the necessary temperature for produce from unloading to loading onto aircraft—a process typically lasting 4-5 hours. Many buyers have expressed concerns about the diminished shelf life and freshness of Sri Lankan leafy vegetables and fruits, such as Rambutan, trailing behind produce from Thailand and Vietnam by 3-4 days.
What are your suggestions for elevating the fresh produce export industry in Sri Lanka?
To maintain competitive pricing stability for at least a month, it’s imperative to minimize fluctuations in fruit and vegetable prices. Establishing export farmer societies and pack houses equipped with cold storage, along with cold storage facilities in cargo villages and economic centres, would greatly benefit exporters. This infrastructure would streamline operations, allowing exporters to focus on exploring new markets and increasing volumes rather than diverting resources to economic centres.
Additionally, strict monitoring of adherence to foreign exchange regulations is essential for fresh produce exporters, as the majority of exports occur on an open account basis. Failure to comply puts genuine exporters at a disadvantage compared to violators of foreign exchange remittance laws, underscoring the importance of regulatory compliance in maintaining a level playing field.
What are your plans to grow the business?
Our goal is to expand Tropical Fresh outlets to additional major cities across Sri Lanka. Since mid-2023, we’ve begun supplying select star-class hotels in Colombo, as well as airline catering and ship chandlers. We aim to enhance this aspect of our business by providing top-quality fresh produce that meets global food standards, including sorted, cleaned, and minimally processed fruits and vegetables, aligning with the growing demand in the hospitality industry.
Furthermore, we’re planning to extend our operations to Dubai, United Arab Emirates, by 2025. This move will allow us to tap into the Middle East market by leveraging re-exports from Dubai to other countries in the region. Additionally, accessing retail chains in the UAE will offer us new opportunities with fewer logistical challenges.