BUSINESS

 LAUGFS Lanka Gas (Pvt) Limited, which will release its LPG cylinders into the market tomorrow (22), has pledged to invest around Rs. 1.4 billion in Sri Lanka within the next two years.

The second stage will include a LPG import terminal and decentralized distribution and bottling facilities to serve the outstations.

 The LPG import terminal estimated to cost around US Dollars 10 million, is expected to be completed by the end of next year. Construction work on this facility, which will have a capacity of 4000 MT of LPG, will begin in four months. It is to be built within the Galle Harbour. The finance aspect has already been dealt with, and a foreign engineering firm is designing the terminal.

 The decentralized distribution and bottling facilities- which will be established after the terminal becomes operational - are expected to cost US Dollars 3 million.

 Chairman, LAUGFS Lanka Gas (Pvt) Limited, W.K.H. Wegapitiya told The Sunday Leader that they will initially supply 10% of the national demand for LPG. He however added that they have given a commitment to the government to increase their market share to 20% in their second year of operations. Towards this end, the company has entered into an agreement with National Gas Company of Oman for the supply of LPG. They are also negotiating with other suppliers in the Arabian Gulf and Malaysia, and agreements are expected to be signed shortly.

 At present, LAUGFS Lanka is totally dependent on the output from the CPC refinery at Sapugaskande. It was early last month that the company signed an agreement with the government and the Ceylon Petroleum Corporation to purchase the CPC output. The arrangement will last three years. It has been agreed that the pricing policy in the second and third years would be linked to the world market rates. 

Wegapitiya said they will purchase the CPC output at a higher price than what Shell was paying. The multinational was supplied the refinery output for six years at only Rs. 12,000 per metric ton- well below half of the then prevailing average world market price. 

Wegapitiya also said they intend entering the industrial and auto gas markets somewhere next year. He added that they would supply these products at a lower price than Shell. 

LAUGFS Lanka is offering domestic consumers a 12.5 kg cylinder at only Rs. 409, compared to Rs. 509 by Shell. Their deposit on a cylinder would be Rs. 1950, much less than Shell's Rs. 2950. Within the next three weeks, the company is planning to release 125,000 cylinders into the market. These will be sold through 330 distributors in the western province. The company will probably supply to the other provinces within a year, when they have sufficient supplies. 

"It is unlikely that our entry will compel Shell to reduce prices, simply because of their higher production costs and market realities," Wegapitiya said. 

He claimed that the comparative advantages enjoyed by his company include lower infrastructure costs, the absence of expatriate staff, and better management. "We know the true feelings of Sri Lankans," he added. 

Wegapitiya doubted that any other party will enter the LPG business in Sri Lanka at this juncture because of the prevailing political and economic situation in Sri Lanka and the volatile global scenario. He noted that investors are now very wary. 

He also strongly criticised Shell for crying foul over the facilities extended to them upon signing the agreement with the government and CPC. 

Wegapitiya pointed out that they are purchasing the Sapugaskande refinery LPG output at a higher price than Shell, and offering it at a lower price to consumers. He also said that though LPG prices worldwide dropped by over US Dollars 100 per ton between January to September 2001, Shell continued to sell at the same price to both industrial bulk customers and domestic consumers. 

Wegapitiya also accused Shell of making huge profits in Sri Lanka while claiming losses to mislead the government and general public. It was pointed out, for example, that the audited accounts of Shell Gas Lanka reveal a net profit of Rs. 210 million in 1998 and Rs. 264 million in 1999.

 South Asia's largest logistics centreopens
in Sri Lanka

 With Sri Lanka's highly developed apparel industry and other export oriented industries making inroads into expanding the regional economy, GTL Global Park, the first and largest logistics center in South Asia, opened its doors in Seeduwa on October 18. Inaugurated by Guests of Honour British Member of Parliament, Nirjan Deva Adittiya, British High Commissioner, Linda Duffield and Leader of the Opposition, Ranil Wickre- masinghe, this BOI approved US $9 million joint venture between WT Air Cargo of UK and Roton Vander Freighting of Sri Lanka, will house 365,000 square feet of warehousing space on a 13 acre site.

"Proud to be a part of a pioneering event such as this," Nirjan Deva Additiya said that Sri Lanka is definitely on her way to becoming a very strong economic force in the region. "With visions such as GTL Global Park, it is more than apparent that European and US trading partners will continue the excellent working relationship that have ensued in the past." He added that the good business relationship with UK too will no doubt be strengthened, with Sri Lanka's focus on developing the service sector in order to aid exporting countries. 

CEO of GTL, Ravi Karunanayake said that having been in the freight and logistics industry for many decades, Roton Vander Freighting is proud to place Sri Lanka on the map as one of the best and largest logistics centers in South Asia. "When we heard that the UK required a logistics warehouse in Sri Lanka, we were among 25 other bidders who had tied up with foreign partners. After an evaluation of about 4-5 months, the offer made by Roton Vander and WT Air Cargo was shortlisted and ultimately, we clinched the award. We are determined to work towards an innovative approach to the fast changing phenomena of global sourcing. Our mission is to be the pivoting force for logistics solutions locally and globally, providing end-to-end solutions and ensuring superior service with total customer satisfaction." 

Managing Director, Neil McGlynn, Vice-President, Julian Wheeler and Director, GTL, Srinivas Venkatesh, all based in the UK, are of the view that the facilities provided by GTL Global Park would be an appealing factor for other countries too to begin looking towards using Sri Lanka as a possible logistics solutions provider. "With all other countries in this region being more or less export oriented, it makes sense for them to avail themselves of a comprehensive logistics solutions package such as this, which ensures that their product gets to the retailer on time, every time." 

GTL Global Park, constructed by Industrial and Commercial Development (Pvt) Limited (ICDL) is equipped to surpass internationally recognised standards and provides a 'one stop shop' logistics solutions concept under a single canopy. 

ICDL taken on as GTL's strategic partner in this project, constructed an average of 35,000 square feet of space per month, within a ten month timeframe, which though taken on as a challenge by ICDL, was nevertheless developed with total building solutions to maximise the land utilisation, ensuring that the workflow was planned to service multi-user needs on a 24 hour basis.

British trade mission due tomorrow 

Chamber Management Services (Leeds, Bradford, York and North Yorkshire Chambers of Commerce) will visit Sri Lanka from October 22-26. This is their first visit to Sri Lanka and is a strong signal of Britain's continuing commitment to trade with Sri Lanka. 

Six companies will come to Colombo, they include: 

CQ Systems Ltd - providers of administrative and accounting software solutions and services to the leasing, asset finance and instalment credit industry together with operational and e-commerce consultancy services. 

Eastman Staples Ltd - manufacturers and exporters of paper and polythene for plotters, cutters and garment presentation, cutting and sewing machines, accessories, shoulder pads and design aids. 

International Apparel Training & Consultancies - offer innovative and practical factory based development programmes for production managers, supervisors and trainers focussed on improving performance. 

North West London College - leading school in e-commerce, computer technology and many other areas. 

The British Computer Society - a chartered professional body for information systems practitioners. Also promoting BCS professional examinations (honours degree level) to both course providers and students. 

Chamber Management Services - provides the international trading activities of the Leeds, Bradford, and York and North Yorkshire Chambers of Commerce. The combined membership is 3,500 companies. The mission will be based at the Lanka Oberoi Hotel, Colombo. The mission is led by Malcolm Sewell who will assist local companies wanting to make contact with individual mission members. General assistance may be sought from the Commercial and Economic Section at the British High Commission.

Business upbeat over snap poll

By Dinesh Weerakkody

While all over the world many stock markets were registering big falls, our stock market was upbeat and Sri Lanka's business community was hopeful of a recovery after Chandrika was forced to dissolve parliament and call a snap poll to avoid a defeat in parliament.

The Colombo Stock Exchange saw a major rally with many investors, who have stayed in the sidelines for over a year due to PA bungling, coming back in hordes. According to analysts the market is on a roller coaster ride because investors are pinning their hopes on a UNP-lead coalition victory. The market is expected to gain further expecting the UNP to pull off a win at least this time.

Economic downfall

Economic growth has dipped to almost zero, according to analysts. The growth slow down is not a sudden thing, it has been there for some time and the government did very little to address the policy lapses and institutional inefficiencies. The policy lapses, corruption and political instability has adversely affected our exports and economic growth. We all know political stability is a must for economic growth.

The PA - JVP alliance could not provide that stability. The MOU was purely for political survival. The millions of farmer loans that were written off at the request of the JVP will only cripple the economy further. All political parties should realise that there is no free lunch - it is the tax payers who finally bear the burden of subsidies and public sector debt. Chandrika and the PA will have no chance of winning the December 5th election unless appropriate action is taken to address structural reforms, ailing infrastructure and macro economic instability on a urgent basis. 

However, now that the government has decided to increase salaries in the public sector the economy will suffer further serious setbacks in the medium and long term. In fact it is short sighted policies like this that led to the collapse of the PA government within one year. Also, the arrogance of some of Chandrika's ministers and her government being deaf to public opinion resulted in the government and the economy collapsing. 

Opportunity for UNP 

Many people in the private sector feel that the UNP has now got a golden opportunity to show their capabilities to the country. In fact, I have said many times that Ranil is one of the most competent politicians this country has. Despite being continuously ridiculed by the PA as being weak and having faced a revolt from within his party, Ranil has shown the electorate that he has the capability and skill of his uncle, J.R. Jayewardene to outsmart the government of the day. The most important thing for Ranil and the UNP now is not to compromise on principles but to pressure the government to hold a free and fair election. 

The UNP alliance has a good opportunity to get in and implement a common programme with the support of the PA if necessary, to pull this country out of this current rut. This maybe the last opportunity the UNP has to redeem itself and the country and secure the future of this country. 

PA's downfall 

We all know that in the post independence history of our country, there has been no other era so hopeless and so desperate than the present time and burden after burden was heaped on the people and the economy was pushed into the doldrums. It was on that basis the joint opposition led by the UNP moved a no-confidence motion against the government. The PA government from April this year was like a patient gasping for breath, but refusing to die. Chandrika up to now had always been ahead of the opposition when it came to strategy and showed remarkable resilience to snatch victory from the jaws of defeat. 

The government's downfall was because of the incompetence and arrogance of some of her ministers and the way they responded to criticism. In addition, Chandrika's inexperience, ad- hoc, impulsive and irrepressible style of governance led to her government's undoing. Furthermore, many of her ministers were only interested in enjoying the privileges of power for as long as possible. Only a few ministers were able to accomplish anything worthwhile for the voter. If the PA is to make any impact at this election, Chandrika will have to do some soul searching and repackage her party. On the other hand, to save her presidency she may also have to learn to co-exist with Ranil. Publicly saying she can't work with Ranil at this moment could lead to her own downfall. 

Private sector 

However, one thing is clear. The private sector, the engine of economic growth is oozing with confidence after Chandrika dissolved parliament. They are confident that the UNP can find a way to tackle the current impasse. Many business groups are urging both the government and the UNP to get back to the negotiating table after the election and to stop the war that is bleeding the economy dry. 

Our private sector will have to be mindful that our economy is already hit by a world recession, the war against terror and the US recession will hit us further. Growth for '01 will be less than 1% and if the government undertakes vote catching measures, the economy would be further affected and that will also seriously jeopardise the IMF pact. 

Therefore, our private sector will have to do something more than holding hands to protect their business interests if they are to put any pressure on the UNP or PA to act decisively to resolve the North-East conflict. 

We all know the taxes paid by the business community are a major source of state revenue, which in turn is used to fund the war. Therefore, it is the government's duty to consult the private sector and also provide for private sector representation in the administration. 

People's responsibility 

The people have got another opportunity to elect a group of people to manage the affairs of this country. Therefore, it is the people's responsibility to elect a coalition preferred not only as local representatives but also as a vehicle to deliver results. The voters of this country without blaming the political leaders should exercise their vote responsibly and elect a team that has the competence to manage the economy effectively, restart the peace process and find a lasting solution, and thereby secure a future for the children of this country. This may be the last chance we have to do this. 

Political parties 

All political parties must realise that what they need to do at this moment to win the confidence of the people would be to conduct an election that is free of coercion, corruption and fear. The police, the press and NGOs have to come out strongly to ensure that at least this time a government of the people is elected. The American tragedy and how the nation reacted to that tragedy should be a lesson for our country.

Standard Chartered arranges US$ 80 million
facility for BoC 

Standard Chartered Bank has successfully closed a short term trade related facility for Bank of Ceylon. The facility was signed in Colombo on October 12 and marks the conclusion of a third successful fund raising in the syndicated loan market by Bank of Ceylon. 

The facility was launched at USD 75 million and was oversubscribed. Bank of Ceylon have elected not to take the entire amount pledged and agreed to an increase in the facility amounting to USD 80 million. Twelve banks from eight countries around the world participated in the facility. The facility achieved oversubscription despite the difficult market conditions in the wake of the September 11 incident and reflects the investors' confidence in credit strength of not only the borrower, but also in Sri Lanka in general. 

Proceeds of the facility will be used to finance the import of oil and petroleum products. Prior to signing, the first facility arranged for Bank of Ceylon by Standard Chartered Bank was repaid fully on its maturity date, October 5, 2001. The borrower will provide a 10 working day window before drawing the new facility. 

Standard Chartered Bank has been in Sri Lanka since 1892. Through its recent purchase of the Grindlays network in the Middle East and South Asia for a total consideration of USD 1.34bn, the bank has now been positioned as the leading bank in India, Pakistan, Bangladesh and Sri Lanka based on total assets. 

It is also very much present in Asia, the Middle ast, Africa and Latin America. It has significant operations in Hong Kong, Singapore, Malaysia, Thailand, the Indian subcontinent, Bangladesh, the United Arab Emirates and in sub-Saharan Africa. The group has a network of over 600 offices in more than 56 countries and a presence in Asia and Africa that goes back nearly 150 years. 

The parent company, Standard Chartered is a London based international bank. Its key businesses are consumer banking - primarily credit cards, mortgages, personal loans, and wealth management - and wholesale banking, where the bank specialises in the provision of cash management, trade finance, treasury and custody services. 

The bank is totally committed to the emerging markets and has specialist expertise in this area. It is also committed to Sri Lanka which has been proven by its recent investments to grow the business. 

The year 2000/2001 has been a year of integration and consolidation for the bank. This has not been easy and there have been many changes. This has included shifting both head offices into one building, relocating staff, establishing a common integrating platform, amongst many other plans. 

Clients now have the benefit of being able to access the full range of products and services of the bank, such as the ability to use any ATM at any branch to carry out transactions, a bank news release states. 

The great jobs drought

by Dinesh Weerakkody 

Unemployment has been the dominant economic issue in Sri Lanka over the last decade and certainly one of the most critical problems facing our country. But, so far neither party has been successful in dealing with it. High inflation, weak reserves, heavy government expenditure on defense and poor economic growth has made the situation worse. 

It is scary, if the economy putters along at its current rate of 0-1% growth, the ranks of the unemployed will swell. Now that Chandrika has taken the election route to hang on to power, both Chandrika and Ranil will focus on the unemployment problem and promise the voter to create new jobs for the millions unemployed. The two main political parties generally become mindful of it during an election and wake up to the plight of the unemployed by promising the moon and the sun. 

Our politicians forget that unemployment is a ticking time bomb, with the economy growing at less than 1%, hardly adding any new jobs. If this continues, we'll add at least another few millions unemployed in 10 years. No government so far has shown the courage to bite the bullet. To eradicate it, we need rapid economic growth and tough reforms. 

Vowed 

Over and over gain all major political parties have vowed to deal with the unemployment issue. However, so far, neither the PA or UNP have dealt with this issue effectively, despite the fact that there are certain characteristics in our unemployment which is socially destabilising and explosive. According to statistics the unemployment rate for the age group 15-24 year is between 32% and 38% and it seems to be getting worse and prospects for the long term unemployed look bleak under the present economic conditions. 

The only answer lies in rapid economic growth with employment oriented management training and labour reforms. However, economic growth of 8% to 10% sustained over 7 to 8 years is needed, to absorb both the backlog of the unemployed as well as those entering the labour market. But even rapid growth of this type will take time to absorb the unemployed, therefore, the crying need of the hour is a plan of action which can be set in motion within the shortest possible time to provide employment for the unemployed youth to mitigate some of the social and human costs of high youth unemployment.

Employment generation 

In this context, there appears to be little focus in discussions and debates in relation to development strategies on the question of employment generation. Attention has been sharply directed to the need for enhanced investment, both domestic and foreign, export development, infrastructure development and poverty alleviation. But what about unemployment? It is estimated that about one million people are unemployed and under-employed. 

The government must realise that it is not the time for false promises. The life of the nation is shifting behind the facts of unemployment. A stable society cannot be sustained where such a high level of unemployment persists. If this trend is not arrested personal lives will steadily drift towards disaster. Today, everyone including our self centered politicians agree that unrest is fuelled by unemployment. Today, unemployed youth due to social pressures will not wait with patience hoping that the benefits of the development process will eventually reach them and they will get gainful employment. 

Solution 

No measure so far proposed can produce jobs for the one million unemployed overnight. A solution in the short term may be for the exsisting work and wages to be shared between the employed and unemployed. In application this means a reduction in working hours and wages in every place of work so as to make "space" for the absorption of those who are unemployed in a national extension of a normal industrial procedure. The overriding fact is that over a million have jobs and over a million have no jobs. It is the size and relative performance of the work shortfall that itself indicates where the solution lies and the imperative need to apply. 

The essential test of any proposed solution is the number of 'permanent jobs' that would be created in weeks rather than years. The fact remains that work and wages come from one source only, namely customers and from nowhere else. There is no prospect of an increase in purchase by customers (including government) within the foreseeable future, sufficient to provide jobs for the one million unemployed. 

A job would mean a share of the total workload created by customers. It is the amount allocated to an individual through a variety of influences. The number of hours worked and the wages attached to those hours constitute a recognised job. So in this context should we need substantial changes in response to changing conditions? That is working hours being reduced in order to respond to the work load from time to time? 

Provide 

The reality is that our agricultural sector has no room for the unemployed; part of the manufacturing sector has discovered the advantages of automation. Small industries are in no shape to create jobs. And the services sector will not, as is widely expected, create all the jobs the country needs. Therefore, the only way to provide quick jobs for those unemployed is to share the available volume of work and wages between the employed and the unemployed.  

So for example a 40 hour week will be reduced to about 30 hours a week. The reduction which can be in stages, will be the cure for unemployment - by the employed sharing the work. 

But the question posed by many people is "for how long?" Research studies on absorption as a cure for unemployment indicate that there are no insurmountable practical difficulties in absorbing into full time employment those now unemployed during an adjustment period up to three years or so. No other solution can assure this result in a short space of time. 

Research also suggest that subsequent to the first stage of absorbing the unemployed and in response to a reduced work load a reduction of hours instead of numbers employed, therefore becomes a safeguard for all employees. 

Difficulties 

There are no doubt practical difficulties in this concept. For one thing, many jobs cannot be shared with one another. The proper person for the job may only be you. Most people rarely make ends meet with their present salaries. However, while our knowledge in this area is far from complete, recent research suggests a number of remedies. Most would have some form of success and are not to be disregarded. However, it should be tested by the following five questions for its practical reality. 

a. What is the cost and source of funds? 

b. How many permanent jobs will be created? 

c. What degree of certainty are the claimed results in practice? 

d. When will the jobs start? 

e. Where will the jobs be located? 

Perhaps the most critical issue of all is that there will be a need for objectivity in the decision making process where many sources of opinion are being combined to generate plans, hence there is no place for unsupported prejudice. A remedy proposed by economists is to increase sales worldwide. However, with prevailing political instability around the globe, no rapid increase on work load is likely in the short term. 

Economic strategies 

A few development strategies on the question of employment generation that can be pursued in the short term, would be to;

a. Improve efficiency: reduce costs, match foreign competition with price and quality, and thereby increase sales and jobs. This is the most urgent task for both managers and work force. 

b. Change government policies to create work. A government is a huge customer for both goods and services. However, one must not believe that a government can increase the demand for work so as to reduce significantly the level of unemployment. But a government can certainly take measures which will have a direct effect, i.e. such as reducing bank rates, providing cheap loans and subsidised credit for development programs. 

c. Increase government expenditure on public enterprises. A government can have direct effect by increasing its own purchases, particularly through project investment. However, funding these projects require years than months. 

d. Lower retirement ages. Early retirement must however be not made compulsory but it can be made financially attractive. 

e. Reduce the number of married women in employment. Any proposals would no doubt attract immense opposition. 

f. Reduce overtime. The reduction could make jobs available. However, such reduction would be effective only in the spirit of the whole program. 

g. Relocate business industries and services - very necessary in very high unemployment areas. 

h. Provide flexibility to employers to use seasonal staff and to deal with unproductive staff. 

j. Promote labour friendly policies. 

Implementing 

A problem of implementing an Unemployed Absorption Program (UAP) will no doubt lead us on to believe that every one should make a sacrifice to create conditions in which work can be shared. But, in reality an UAP would be seen as a practical application of the principal of sharing what we have with others in need. 

Today, there is unemployment in the south of Sri Lanka which needs the attention of the affluent in our society. The uprising in the south of Sri Lanka in the late '80s was no doubt a direct result of desperate human needs - fear arising through a lack of jobs in the country and above all, the increased economic inequalities accompanied by its vulgar display. 

Today, if our unemployment is presented truthfully, factually and with honest intentions free from politics and pressure groups, it maybe solvable. However, it may involve some personal sacrifices and a program that is obviously effective and economically sound from the outset. 

If the intentions of the government is clear, perhaps the much needed response for sharing will flow from the majority of the population and from them will come the pressure on trade unions and employers to support the government. 

Finally, the private sector has, of course, a crucial role to play in promoting employment. It will, indeed do so only if it finds the investment climate is right. Therefore. It is the government's duty to remove the shackles which prevent the business community from creating more jobs. Furthermore, if the private sector is the engine of growth, government agencies must be asked to come up with strategies for supporting the private sector development initiative.

The Global Competitiveness Report: Implications for Sri Lanka 

Each year the World Economic Forum and Harvard University's Center for International Development publishes a fascinating document called the Global Competitiveness Report. This report represents an effort to measure the relative international competitiveness of participating countries. The report allows its reader to gain an estimate of the likely success of these countries in developing their economies through increased international trade. 

For the first time, the report will this year include Sri Lanka among the roughly 60 nations rated in the Global Competitiveness Report (GCR). Sri Lanka's participation reflects a growing international recognition that it has, indeed, arrived on the global economic scene and has to be taken seriously. 

This cooperative effort between the World Economic Forum (WEF) of Geneva and Harvard University's Center for International Development has been published annually since 1979 and is prepared under the supervision of Professors Michael Porter and Jeffrey Sachs, two of the world's leading authorities on modern competitiveness theory. 

To gather information on Sri Lanka, the WEF and Harvard entered into a partnership with Sri Lanka's Institute of Policy Studies (IPS) and ORG-MARG-SMART. 

Last year's report, GCR 2000, included 25 developed nations, 26 developing nations, as well as eight so-called "transnational" economies, for a total of 59. 

The GCR defines national competitiveness as "the set of institutions and economic policies supportive of high rates of economic growth in the medium term." Competitiveness might more broadly be thought of as the measure of the results of the interaction of all factors, domestic and international, that go into determine how productively capital will be allocated within a country, and how successfully that country can compete in global markets. 

As an x-ray is used by doctors to diagnose a patient's condition, the results found in the Global Competitiveness Report can be used as a tool to diagnose problems of a country's domestic economy, its legal and regulatory regime, and macro-economic policies that affect its competitiveness. The scores and ranking are not themselves reality, rather they reflect effects of reality. The real utility of the GCR is that it provides a framework for productive private-public sector dialogue that can identify problems suggested by the results of the GCR and, through that dialogue, to consider solutions that may help to resolve problems. 

The methodology of the World Economic Forum includes statistical and survey results. The surveys include a representative sample of individuals. Most respondents are from within the private sector, but a few are from the public sector. It should be recognised that survey results are based each year on respondents' perceptions and attitudes. Business perceptions may change dramatically from season to season or even month to month. As a result, the scores and rankings for a given country frequently change from year to year. 

In 2000 the Global Competitiveness Report provided two basic bottom-line measures of competitiveness, e.g. the Current Competitiveness Index and the Growth Competitiveness Index. The Current index identifies factors that underlie current productivity and economic performance as measured by GDP per capita. Until 2000 that was the major product of the GCR. But the new Growth index also measures factors that contribute to the rate of growth in a nation's GDP per capita. This Growth Index can measure variables that, separately or in combination with others, contribute to increased innovation and productivity, and, thereby, to higher rates of return on investment, new jobs, and economic growth and development. 

The GCR arrives at basic measurements of national competitiveness through processes that involves both basic statistical data gathering and surveys of impressions and opinions of key individuals in each nation's private and public sectors. From the statistical data, the authors of the report develop country performance indicators. The surveys ask respondents to rate the country's performance or situation in 180 or more individual categories. The GCR puts together the results of these surveys and scores them in ten basic "factor" groups. These basic factor groups include: (1) government/fiscal policies; (2) institutions; (3) infrastructure; (4) human resources/labour-management relations; (5) technology; (6) finance; (7) openness; (8) domestic competition; (9) company operations/strategies; and (10) environmental policy. 

Naturally, using surveys leaves room for the possibility for debate about a country's score in a particular factor group. In this regard, the GCR presents scores and rankings - not conclusions. 

The question remains - who exactly will find the GCR of use? The government of Sri Lanka, its ministries and agencies, may find it useful in monitoring the success of its policies - a form on internal quality control for government. The private sector will find it of interest in terms of what it suggests with regard to: (a) the efficiency of the economy, optimal allocation of capital, and opportunities for greater return on investment; (b) the distributive effects of increased exports, e.g., economic growth and an enhanced standard of living; and (c) the attractiveness of Sri Lanka for new foreign investment, which brings with it new technology, improved management, and new jobs. 

In this regard, it must be assumed that most people in the private and public sectors are dedicated to the greater good of Sri Lanka, though their points of view may differ. Some may view the state of the country in terms of economic growth or public order while others will see conditions from the standpoint of "profit" and "return on investment". Yet both are interested in and committed in and committed to "economic growth" and the Global Competitiveness Report provides a bridge for dialogue between them and the establishment of innovative solutions that may resolve such problems to the mutual interests of all Sri Lankans.