Lankan private sector research taking shape
By Chaturi Dissanayake
Many years ago Sri Lanka’s private sector would have thought twice before deciding to spend on research and development. Not anymore. Slowly but surely, local companies – especially Hemas and CIC – are investing in R & D and getting a head start over the others.

Local companies are offering Sri Lankan scientists working in the US, UK and the West a chance to work in their homeland at a reasonable wage – not in line with world wage standards - but close enough.

Dr. Ishan Dias, a Cambridge graduate and R & D manager at CIC, says that if local scientists are given the opportunity they will most definitely stay in the country without seeking greener pastures overseas.

The Hemas Group, which also has a research facility, agrees saying they have received several inquiries from Sri Lankans abroad after they advertised for scientists for their new Innovation Centre.

In the past few years some companies have deviated from the general trend of reluctance to invest in R & D and borrow from the West, and begun investing money in developing new products that would give them an edge over their competitors in the market.

However despite remarkable changes in the way the private sector perceives R & D, the trend for scientists to go chasing that pot of gold in the west continues. As Dr. M. G. M. U. Ismail, Deputy Director Research and Development of the Industrial Technology Institute (ITI) points out there is a lack of middle level scientists in the country as most of them go abroad searching for better prospects. “They get the initial training here but leave looking for better opportunities. Almost four to five people who come to ITI actually leave the country after getting the initial exposure and training with us.”

Still local scientists and those yearning to return like Dharshan de Silva, a research fellow based in the United States, can be comforted by the fact that some local companies are moving into research and development department on their own. Salaries however could be the problem.

“One can’t expect local companies or government to pay the salaries we get overseas but we need something decent and comfortable. For example a wage in the region of Rs 100,000 with a company-maintained car and fuel (a package currently enjoyed by top marketers) could be an attractive proposition to induce Sri Lankan specialists to return,” said de Silva, who has a PhD in Immunology and does research in TB, molecular biology and protein chemistry.

Attached to the Albert Einstein College of Medicine, de Silva who has lived in the US for the past 16 years was in Colombo last week scouting around for a good opportunity. Dr Dias says that most of the local companies in the country get the technology and the method from the developed countries. “We have realised that depending on imported technology is not profitable to the company,” he said.

The CIC group is one of the few companies to set up its own R & D sector two years ago and now is in the process of creating a separate department and moving into a separate building complete with the required infrastructure.
The Richard Peiris Group is another company in the research mode starting a facility a few months ago, according to a company official.

“I don’t consider spending on research and development a cost. For our company it is an investment,” notes D. Bhatnagar, director at Hemas Holdings Ltd. The group has restructured its research and development department by bringing together existing research units based at the factory premises to the Innovation Centre.

They are investing close to Rs 8 million in the new facility to focus on new product formulation and innovations. ITI’s Dr Ismail says that Sri Lanka has a lot of natural resources that could be used for product development which “local companies should make use of to their advantage over the others.”
For example Hemas developed the natural hair oil “Kumarika” which has now moved up to the No. 1 position in its product range.

CIC’s Dr. Dias says that the future for fertilizer is organism and the product the company has developed called “Saru fertilizer” is a move in that direction. Dr. Ismail says that Sri Lankan companies should move away from exporting products in the form of raw materials and work towards value addition and new product development.

This is the exact sentiments of the CIC group as well who are now involved in researching on raw material such as cinnamon. Dr. Dias noted that their efforts in this area have been fruitful as they have been successful in some research on pineapple waste.

However with all these positive moves in the right direction there are still a lot of hurdles. One is the lack of infrastructure. “Most of our research results don’t go beyond the lab level as we are unable to conduct research on a pilot level to ascertain whether the product is commercially viable. The private sector is reluctant to invest in such product development,” says Dr. Ismail.
Companies still depend on developed countries for machinery. “Even though we are trying not to be dependent on developed countries in the product development phase we still need them for the technology.

At CIC we are trying to develop our own machinery on a commercial scale once we are familiar with the pilot scale version and we know what we need,” said Dr. Dias.

This is not the only problem -- lack of exposure and experience for local scientists is another concern. The only option available is on the job training, notes Dr. Dias saying that “it’s a learning process for the company as well”. Dr. Dias, having worked with many in the field overseas, added that academics and other scientists in the field are up to date and capable of producing results.

“Our people are not lacking in knowledge but they face setbacks as they don’t have a productive working environment, opportunity and the infrastructure facilities.

For instance if there is a power failure or a university strike, the entire research will be wasted. These are some of the problems the few academics and scientists who do research are faced with.”

ITI’s Dr. Ismail believes the government should also pay more attention to the R & D sector and believes more funds should be allocated to this sector in the budget.

He also says the government should encourage small and medium enterprises to get involved in research and development through directly linked funding for such purposes.

“Businesses should think ahead and think of how their product could be improved in the future or their business won’t last in the competitive market,” Dr Ismail added.

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