HOW MANY SRI LANKANS DOES IT TAKE TO CUT DOWN A TREE?

In the process of getting small businesses off the ground, I see various businesses that are profitable in ways that would not be possible in Australia. Because labour is so cheap here, there are many jobs that would not even be available in Australia.

Sarath has started a business selling firewood to the roof tile factory. They, in turn, use this fuel in the kilns to fire the clay tiles. When I was first given the application it looked like a simple enough concept, or so I thought.

As part of our procedure, Priantha or I conduct an interview to find out more about the family and the business. Now that Priantha has been working with me for six months, I usually send him alone or allow him to lead the interview. He is able to assess the business and he can communicate much more easily.

Once we have all the details I sit down with Hayley, Priantha, Kanchana and sometimes Ronald, our driver, as he was previously a manager for a large business here in Sri Lanka. We discuss the details of the business, if they fall within our criteria and where any problems may lie in the business or their ability to repay the loan.

Sometimes cultural differences and practices become obvious and we need to assess whether the practices make for bad business or if they are just a different way of doing things. To make this judgment, I like to make sure I have a clear understanding of how the business works. In this particular instance, my preconceptions were making it difficult for me to see precisely how the business would work.

I started asking questions to try and work around this impasse. To start off on the right foot, I began with something that I was sure I understood, like the fact that Sarath goes and chops down the tree. I assumed Sarath must want the money to buy a chainsaw. Confidently I put the question out there, and prepared to write down the yes and move on to other details.

"No" was the answer from all the Sri Lankans at the table.

This was going to be a tough day. Wanting to put this behind me, I thought the best way forward was to find out who did cut down the tree.

"The man with the chainsaw," they replied, looking at me as if I really didn't know anything about business.

So I moved on to what I thought was the next obvious idea, getting the wood to the factory.

"Does he want the money to buy a landmaster to take the wood to the factory" I asked undetered.

Once again, the Sri Lankans look at each other, have a quick chat in Sinhala and then reply, "No."

Naturally I wanted to know who does take the wood to the factory. Once again the obvious reply, "The man with the lorry. A landmaster is too small"

Strike two. Wanting to sound like I understood the scenario so far, I gave them a rundown of what I had learnt. So the Chainsaw Man rings Sarath and tells him that he has a tree to cut down. Sarath pays him to chop it down and rings the Lorry Man to come and collect the wood and he pays him. So thats what he wants the money for?"

"No"

"What?! So what does he want the money for?"

At this point everybody is laughing and convinced that I am in no position to be giving out loans.

Once again they try to explain it

"Tree person calls Sarath and tells him they have a tree they need removed. Sarath calls the Chainsaw Man and the Guy With The Lorry"

At this point, Hayley, passing through on her way to the biscuit jar, interjects. "Why don't you call the Tree Man, Greg, Chainsaw Man, Bob, and Lorry Guy, Steve." She is an invaluable part of this process, given her skills in giving characters names.

Trying to salvage the situation, I thought that finding out the cost of things would be an easy way to distract them from my previous inability to grasp simple Sri Lankan business.

"First Greg calls Sarath and tells him that he has a tree that needs removing?"

"Yes"

"Wohoo! Great! Now I am getting somewhere. So, how much does Sarath get for chopping down the tree?"

Now I had them looking confused and there was quite a bit of Sinhala discussion going back and forth. Finally they aswered, "Sorry? We don't understand. Sarath has to pay for the tree. That's why he needs the money."

"He pays to chop someone's tree down?"

"Yes."

At this stage we all are laughing. We are amused that the Sri Lankan tree removalist would pay to do his job. The Sri Lankans are amused that Australians would pay to give their tree to someone else. It's all so weird.

Pushing on, I continue in my attempt to clarify the situation. "Sarath pays Greg to remove his tree. Sarath pays Bob to chop down the tree. Sarath loads the wood into Steve's lorry and takes it to the factory, where they pay Sarath and he pays Steve.

"Yes!"

However I was still perplexed. "So why doesn't Sarath cut the tree down himself?" I asked.

More incredulous looks and laughter. "Bob only charges a little money and Sarath does not have the time!"

An hour after we started I decided to leave it there and ask the most important question. "Is it a good business?"

"Yes, it is very good" came the quick reply.