SPECTRIFYAI: THE STARTUP THAT'S SHAKING UP THE AGRICULTURE INDUSTRY

Lakshan De Silva, Co-founder and CFO at SpectrifyAI, shares insights into how the startup is revolutionizing Sri Lanka’s agriculture sector, plans to expand in the region, and what the country can do to position itself as a startup nation.

In this interview with Echelon, De Silva begins by sharing his perspective on the unfolding economic crisis and how tech companies can play a role in the revival. Excerpts of the interview are as follows:

Sri Lanka’s economic crisis is, in my view, an accumulation of policy inconsistencies. Despite this, there are opportunities within the country’s startup and technology sectors. Sri Lanka has significant potential, including a highly educated population, with a literacy rate of 95%. To progress, we must adopt a more commercially minded approach, with policies that govern governance, technology, education, and science. This is essential if we want to attract investors, create a market, and encourage knowledge exchange. Sri Lanka’s adaptability is a strength, but our bureaucratic approach is a hindrance. We aim to make tech the largest export component for Sri Lanka within the next decade. To achieve this, we plan to infuse technology into the country, fully comprehending the nation’s issues and needs.

The recent brain drain within Sri Lanka’s tech sector is a concern, but the current burst of the global tech bubble in developed countries, due to tighter fiscal and monetary policies, has opened up opportunities. Sri Lanka must establish its value proposition in the market, with a focus on market access and product IP. Sri Lanka’s tech industry has been service-oriented, but entering the market with IP will provide better margins, attract clients and position Sri Lankan technology as world-class and competitive. By taking a more global and regional approach to challenges, we can shift our mindset and attract the right stakeholders in the form of clients, partners, and investors.

What does Repositioning Sri Lanka mean to you?

Sri Lanka has not made the most of its unique strengths and advantages but must do so if it is to attract investors. While some countries boast large markets or efficient economic systems, Sri Lanka has a strong human resource aspect, with 95% literacy. Geographically, it is well-positioned along a key maritime route and in a region that will drive global growth in the coming decades. However, repositioning will require a shift away from traditional bureaucratic procedures and a greater focus on being tech-savvy.

Unfortunately, Sri Lanka’s decision-making processes have been characterized by indecision and a preference for the easiest route. Post Covid-19 economic crisis showed the importance of a data-driven approach to problem-solving, the fuel crisis, concerns of food scarcity etc, which would have been easily detected early on to make necessary arrangements to avoid them or at least to reduce the negative impact.

However, a negative attitude towards failure is holding the country back from making decisions and taking risks.

To truly leverage its strengths and take advantage of its position, Sri Lanka must adopt a new mentality that embraces the possibility of failure and prioritizes decision-making. The country’s size and population make it well-suited to establish itself as a digital nation, but success will require a shift in mindset and approach.

What are the necessary reforms the country needs to tackle to reposition itself as a startup hub and digital economy?

Sri Lanka doesn’t have national policies, and the lack of national policies along with the lack of a market-oriented or market-reflected approach has hindered our growth potential since independence. Compliance for the sake of compliance often takes priority, leading to bureaucratic lag. To address this issue, the country needs national policies on education, research and development, and institutions with clear mandates. The government needs to infuse more intragovernmental bodies for national policy implementation through private-sector partnerships.

Sri Lanka is a heavily subsidized nation, and it invests in uncompetitive businesses, resulting in lost expenses. To encourage research and development, subsidies and preferential treatment should be given to industries that have the potential to become competitive globally at an export level in the future, and back startups that would drive the innovation and disruption of the country, this might help Sri Lanka leapfrog from its archaic ways of doing business.

Political and cultural factors lead to subsidies being given to industries where Sri Lanka will never have a comparative advantage. Instead, the country should develop a stronger system to ensure food security and let those sectors fade away. Similar to Singapore’s DDB and SGInnovate, Sri Lanka needs budgets and institutions that focus on specific aspects of technology since technology has its cycles. The country lacks the institutional setting, legal framework, infrastructure, and other necessary elements to function as a startup or digital nation.

To create a society where returns are recognized, the government needs to address tech issues such as erratic computers and internet access. We need policy frameworks that are holistic and not ad hoc, as ad hoc is reactionary and is too short-term focused to yield any long-term benefits for the country.

How can companies like SpectrifyAI contribute to helping businesses and the economy at this time?

SpectrifyAI is shaking up the agricultural supply chain. Starting with tea, the company recognized the need to prioritize quality over quantity. Despite producing an impressive 300,000 metric tons per year, Sri Lanka has no comparative advantage over larger countries such as Kenya, Vietnam, India, Bangladesh, and Indonesia, which all have more space to cultivate tea. However, Sri Lanka does have a strong brand name in “Ceylon Tea” and a reputation for producing excellent quality premium tea.

SpectrifyAI’s spectral device is a game-changer in the tea industry. It can monitor a range of quality parameters, including crucial factors like moisture, sugar, caffeine, MCPA, and other parameters. These elements are essential to ensure quality, in addition, we are building our AI model for flavour profiling and the overall quality of the tea.

Traditionally, tea tasters would evaluate the quality and source of the tea, but SpectrifyAI’s AI model provides chemical compound breakdowns that go beyond the human touch. The device allows for a sampling rate that is 90 times faster than the industry standard, and its accuracy ensures that quality is implemented at a strict level that appeals to customers who are focused on quality.

European and other high-end markets are focused on strict quality parameters. SpectrifyAI’s quality assurance and quality control methods enable the company to differentiate its products based on quality and concentrate on high-end markets. The company’s goal is to ensure that anyone who wishes to purchase tea from Sri Lanka with a quality-focused mindset would be able to do so without having to think twice.

SpectrifyAI’s AI-based flavour profiling allows individuals to mix and match to create their own unique grades of tea, further differentiating its products. The company is not limiting its approach to tea but also applying it to spices, coconut, rubber, and looking at coffee, where there has been a resurgence of interest in Sri Lanka. Coffee is a higher-margin commodity in terms of sales, offering opportunities for growth and development.

SpectrifyAI’s innovative approach to quality control and quality assurance through artificial intelligence and machine learning is not only advancing the tea industry but also helping to grow Sri Lanka’s economy. With a focus on quality, the company is enabling farmers and other stakeholders to climb up the value chain and get paid more for their effort. SpectrifyAI is not just making a difference in Sri Lanka but also has global market potential across Asia and Africa.

SpectrifyAI shaking up the agricultural supply chain. Starting with tea, the company recognized the need to prioritize quality over quantity”

What advice do you have for startups trying to navigate through these difficult times?

If you’re a startup looking to expand, we’ve got some advice for you: start in Sri Lanka. It’s the perfect beta market to test your product and get a feel for the market. That’s what we’re doing, and we’re doing it in the tea industry. Sri Lanka is a major player in the global tea game, and we’re using it as our testing ground before we move on to larger markets.

But we’re not stopping there. We’ve got our sights set on South and Southeast Asia, and then we’re heading to Africa. And who knows? Maybe we’ll make our way to South America someday since moisture is a key element in both wine and coffee. And we’ve even got some interest from Australia, so who knows what the future holds?

For now, though, we’re focusing on tea, spices, and coffee. We’re taking it one step at a time, building our brand and expanding our reach. So if you’re looking to grow your startup, take a page from our book and start small. Who knows where it might take you?