Abans is proud to be associated with Haier, China’s largest and the world’s fourth largest manufacturer of electronic home appliances and the official sponsor of the 2008 Olympic Games being held in China.

To mark this great international event, Abans is having a special Olympic Offer of upto 30% discount on selected high quality Haier products on each day that Sri Lankan athletes win a Gold or Silver medal.

So, on your marks and get set to grab fabulous discounts on a range of selected Haier products from Freezers, Bottle Coolers, Dish Washers, Televisions, Computers, Air Conditioners, Microwave Ovens, Vacuum Cleaners and more.

Haier is the world’s 4th largest whitegoods manufacturer and one of China’s Top 100 IT Companies. Haier has 240 subsidiary companies and 30 design centres, plants and trade companies and more than 50,000 employees worldwide. Haier specializes in technology research, manufacture industry, trading and financial services.

Haier 2006 global revenue was RMB107.5 billion. Haier has consecutively been ranked first in the row of China’s most valuable brands for manufacture of 18 products, including refrigerators, air conditioners, washing machines, televisions, water heaters, personal computers, mobile phones and kitchen appliances.

Haier is also a world leader in the technology domains of intelligent integrated home furniture, networked home appliances, digitalization and large scale integrated circuits. Haier was ranked 1st of China’s Top 10 Global Brands by the Financial Times.

In addition to high quality home appliances, Haier is also focused on offering best-of-breed service solutions to its customers. Haier’s service system runs throughout the production process from product design, production, manufacturing, to pre-sale, "under sales" and after sales service. Since 2002, Haier has successfully established a network of over 5,000 domestic professional service suppliers to deliver timely customized service.

Abans is a household name in Sri Lanka that has introduced innovative products to reduce the housewife’s burdens and give her more time for family and leisure.

With showrooms islandwide, Abans is renowned for guaranteed quality products, affordability, value for money and efficient and quick after-sales-service. Abans has always imported and marketed only trusted quality products from the world’s best brands. With high electricity costs, Abans give high priority to import only energy saving appliances that reduces your electricity bill and conserves the earth’s resources.

Ceylinco Insurance, leader, for 4th year

Ceylinco Insurance PLC has been confirmed the market leader in both life and general insurance for the fourth consecutive year by the Insurance Board of Sri Lanka (IBSL), Sri Lanka’s insurance industry’s regulatory body.

According to the IBSL’s 2007Annual Report, Ceylinco Insurance’s Life and General Divisions accounted for market shares of 33.03% and 33.22% respectively on the basis of Gross Written Premium in the year under review.

Ceylinco Life’s Rs 6.8 billion premium income was Rs 2.3 billion or 53% more than the second largest life insurance business in the market, and the company’s market share was 11.43% higher, the IBSL report reveals.

In the General Insurance segment, Ceylinco Insurance’s Rs 10.3 billion premium income represented a Rs 1.5 billion lead over the next insurer.

Commenting on the published figures, Ceylinco Insurance’s Chief Executive Director (Life) R. Renganathan said: "As an authoritative public document, the IBSL report is a credible source of information and authenticates our claim to be the market leader in Sri Lanka’s insurance sector."

"Ceylinco Life’s consistency over four years in terms of industry leadership shows that the company has won people’s hearts and minds by strengthening trust in life insurance and by educating the community and delivering on promises," Renganathan added.

Chief Executive Director of Ceylinco Insurance-General Ajith Gunawardena said that the company is on an expansion programme to explore the untapped potential. "This would further consolidate our position as the market leader," he said.

"For the second consecutive year we were recognized with a ‘Power of People’ (POP) Award as the People’s Insurance Company of the Year and we were also awarded an AA- rating which is the highest in the financial sector by Brand Finance Sri Lanka and speaks volumes," added Gunawardena.

Ceylinco Life has achieved market leadership in life insurance in 2004 and sustained it in 2005 and 2006 reporting market shares of 31.65%, 32.36% and 33.43% respectively. Similarly in General Insurance too the company continues its market leadership since 2004.

Ceylinco’s Life Division had sold 165,796 new policies in 2007, achieving an average of more than 13,800 new policies a month. Its Life Fund grew by 21% to reach Rs 16.83 billion as at December 31, 2007, following a transfer of more than Rs 2.9 billion in the year. Investments increased by 14% to Rs. 14.8 billion, while assets grew by 19% to Rs 19.38 billion.

Sri Lanka’s largest and most successful insurer, Ceylinco Insurance is the "benchmark" for innovation in the local insurance industry including product development, customer service and professional development.

The company’s islandwide branch network represents the widest presence in the industry. Ceylinco Insurance is internationally recognised for corporate citizenship, innovation and brand building.

Women Only banking unit

The 111th branch of Sampath Bank was opened in Akkaraipattu recently.

This new branch boasts of a novel facility–An exclusive banking Unit for women–where the banking services are provided entirely by female staff.

The Women Only unit will cater to the financial and banking needs of the women in the area, especially the Muslim women who will be able to carry out their banking activities without any undue inconvenience.

Sampath Bank Chairman Edgar Gunatunge was the chief guest at the opening. Addressing the gathering he expressed his pleasure in having opened the new branch in a locality where they could serve a developing community where agriculture, fishery and small enterprises support the economy.

"People who experienced natural calamities and war have now settled down peacefully, waiting for development and prosperity in their day to day life.

At this juncture what they want is development process in agriculture, fishing and business. Sampath Bank fulfils the banking needs of all categories in achieving their aspirations," he said.

Commenting on the Women Only unit he said, "This paves the way for women, especially Muslim women to walk in here and to do their transaction in a free manner without any inconvenience.

This is first of its kind in Sri Lanka and Sampath Bank is proud to have initiated it," said Gunatunge.

Housing loan in 10 days

The demand for housing is rising rapidly with population growth; however in today’s high inflationary and high interest rate scenario, buying a house seems to be out of reach for many.

In order to make this a reality, and as envisaged by Founder Chairman, Deshamanya Dr. Lalith Kotelawala, Seylan Bank recently launched a novel housing loan scheme branded Seylan Hadha Medura.

The feature of Hadha Medura is that Seylan Bank promises its housing loan applicants disbursements of the loan within 10 days of completion of the required documentation.

In addition, the first 100 approved applicants were offered an attractive interest rate of 19% pa.

Speaking to The Sunday Leader, Seylan Bank Asst. General Manager Mrs. Yasanthie Udurawane said that if a prospective applicant has all his or her documents in order, then the reality of buying, constructing, renovating or extending their dream home can be made a reality within just 10 days, the fastest that any bank offers.

Udurawane said that the hassle of having to submit various documents from time to time in order to complete documentation has been a regular irritant for those who apply for housing loans.

According to her the Hadha Medura Housing Loan promises to overcome such problems and to disburse the loan within 10 days once such documentation is complete.

Udurawane said, "Speedy processing and an affordable interest rate gives Hadha Medura an advantage over run-of-the-mill housing schemes available in the market."

The minimum loan is Rs. 500,000 while the maximum is Rs. 10 million and the bank offers attractive interest rates which can be fixed or floating depending on the requirements of customers.

Udurawane also said that this offer is ideal for those who are employed or self employed as there is a 20 year plan that comes with the housing loan and a 10 year plan for extensions, remodelling and renovation of homes. These loans can also be obtained for a repayment period of five years by those who are abroad.

Additionally all successful applicants will be given a free Seylan Credit card which can be used to pay the premium for the Mortgage Protection Policy from Ceylinco Insurance PLC at zero interest.

The Hadha Medura home loan is handled by a special unit based at Ceylinco Seylan Towers.

Asiri Hospital Group expands

"The Central," a USD 40 million hospital project of the Asiri Group, is its biggest venture so far. This state of the art hospital being built at Norris Canal Road, Colombo will have more than 270 beds and will be completed by end September 2009.

This will be the most modern hospital in the country with state of the art machines and technology that will provide the general public all the facilities required in modern health care keeping with western standards.

The building complex will comprise 14 levels in addition to the basement and ground floor covering a total floor area of 435,000 square feet. Among the amenities, parking spaces for over 400 vehicles as well as a large Central atrium surrounded by food courts and malls.

Other amenities include fully equipped state of the art kitchen and laundry; banking facilities and staff accommodation for 100 nurses, 40 junior staff and 20 doctors. This new hospital boasts of a Nurses Training School as well, offering international standard training for 100 student nurses at one intake

"The Central", will also cater to international communities from UK, USA, Maldives and other countries promoting "Health Tourism" in Sri Lanka. This will be in keeping with the healthy demand for specialist care facilities of the standards of countries such as Malaysia, India, Singapore and Thailand. There will be self contained apartments within the same complex to cater to those visitors with cafeterias and recreational facilities.

"The Central " is easily accessible, both by public and private transport. With its completion, Asiri management will be able to overcome capacity constraints and cater to the growing demand for healthcare service in the country. Specialised services will be on offer in line with global standards in the areas of Coronary Care, Oncology, Neurology and Geriatric Care. as well as enhanced channelling services, and supplementary diagnostic services.

Among the most up-to-date equipment and facilities of the "the Central" are: Coronary Care Unit–with the latest technology for By-pass procedures, Angiography and Angioplasty. Neurology Unit capable of handling advanced neurology surgery as well as a stroke unit; an Oncology Unit for treatment of cancer patients; fully equipped Radiology Department equipped with state of the art MRI scanners, 64 slice CT scanners, Mammograms and Digital X’ Ray facilities; Specialised Surgical Units for Paediatric Surgery, Orthopaedic Surgery, ENT Surgery and Eye Surgery; A Theatre Complex comprising two Cardiac operating theatre suites with a modern Cardiac Catheterization Laboratory, six General operating theatre suites, three Gynaecology and Obstetrical theatres complete with Neo-natal ICU and a Paediatric ICU; Generic Care Unit with Day Care Centre facilities; Kidney Unit with Dialysis facilities comprising six modern Haemodialysis, Water Treatment Unit and Pneumatic Lithotripsy System and a 24 hour OPD Service including Laboratory, Pharmacy, X’ Ray and CT Scanning facilities.

The Asiri Group of Hospitals currently consists of three hospitals situated in Colombo, close to each other– Asiri Hospital, Asiri Surgical Hospital and Asiri Central Hospital, and the latest addition in Matara.

Asiri Surgical Hospital is currently completing a state of the art Heart Centre which will be opened to the public next month (September). The Asiri Heart Centre will comprise a Cardiology Unit and a Cardiac Surgery Unit equipped with state of the art facilities on par with international standards.

It boasts of the latest in Cardiac Diagnostics such as a Flat Panel Cardiac Catheterization Laboratory to enable Angiography & Angioplasty procedures as well as two state of the art Cardiac Operating Suites with Laminar Air-flow systems.

Among the facilities of the Asiri Heart Centre, there is a "10 bed Coronary Care Unit, 40 rooms and a Surgical ICU" utilising advanced monitoring systems and Telemetry which will be another first in Sri Lanka.

Asha Central Hospital formerly known as Central Hospital was incorporated in 1945. It is now a 100 bed hospital with high-tech equipment and highly trained and experienced staff. There are more than 200 specialist consultant doctors visiting the hospital on a regular basis.

Chutneys, for South Indian cuisine

The promise of indulgence takes on a South Indian hue as Cinnamon Grand opens Chutneys on Thursday.

Exuding an infusion of South Indian culture and cuisine, Chutneys presents a powerful amalgamation of class and delicacy into the ultimate South Indian culinary experience. Adding originality to the time tested classics prevalent in South Indian cuisine, Chutneys traverses to the next realm of that region’s epicurean delights, breaking new ground with the unique Grand Dosa Thali, a first even for South Indian restaurants. Into this is added the traditional specialties of Idly and Dosai and wide and varied vegetarian and non vegetarian fare.

Having handpicked a team of leading chefs from South India to ensure the authenticity of the culinary fare offered by Chutneys, General Manager Rohan Karr says of this first fully fledged South Indian restaurant in Sri Lanka: "Cinnamon Grand is proud to infuse the flavours, tastes and even a cultural essence of the uniqueness of South India into Colombo. While this cuisine remains popular in many parts of the world, real South Indian cuisine has distinct characteristics and a personality that’s truly its own and must be experienced - an indulgence we have brought into Sri Lanka through Chutneys."

Islamic Finance

CIMA Sri Lanka Division as part of its Management Update initiative has invited Amana Investments Managing Director Faizal Salieh to make a presentation on ‘Islamic Finance & Banking: The First Principles’ for the benefit of its members on Thursday.

He will discuss the core principles underlying the practice of Islamic finance and banking, the conventional definitions and interpretations of usury and interest, the fundamental differences between conventional economic principles and Islamic economic principles and lead the audience to understand the principal differences between Islamic banking and conventional banking including the principles of deposit taking and financing.

The session will enable participants to have an understanding on the key principles that drive the practice of Islamic finance and banking today.

Salieh holds a Bachelor’s Degree in Economics with First Class Honours and a Master’s Degree in Business Administration and counts almost 30 years of banking experience including conventional commercial banking, development banking and Islamic financial services. Islamic Finance and Banking has a 40 year history since its origin as an organised practice in the ‘60s. Today it’s the fastest growing segment in the global financial industry evoking encouraging responses from a wide cross section of customers, markets, conventional banks, regulators and policymakers across the world.

It is no longer confined to the traditional boundaries of Islamic nations and is spreading in European countries including the UK and Far Eastern countries such as Thailand and Singapore. In recognition of this global trend, CIMA now offers a certificate course in Islamic Finance.

Free connections

Sri Lanka’s pioneer cable TV provider, Lanka Broadband Network is giving more people the opportunity to view quality television by knocking off its connecting fee till Friday.

LBN offers the widest selection of channels in Sri Lanka, with "unparalleled" picture quality. LBN’s packages too are cheaper in comparison to other available options in the market.

LBN’s superior picture quality is provided by a combination of fibre optics and coaxial cables to reach its consumers and this prevents pictures from getting frozen or distorted during inclement weather..

The complete HBO range along with Star movies AXN, Hallmark and Cinemax are some of the entertainment and movie channels while ESPN, Ten Sports, Neo and Star sports provide sports related material.

National Geographic, History, Animal Planet, Discovery, Travel and Living and other channels provide entertainment for the family.

LBN’s range of foreign language channels include German, Korean, Maldivian, Chinese, Arabic , Japanese, French and Hindi

Its recently launched website offers visitors information while also giving the facility to check the availability of cable to your location and to then request your connection online.

LBN’s expanding coverage now reaches most of Colombo including Rajagiriya, Nawala, Kohuwela, Dehiwela, Mt Lavinia, Ratmalana and Moratuwa. LBN also caters to its clientele in Wattala, Beruwela and Nuwara Eliya.

Backed by a 24hr call centre and technical back up is a feature in LBN’s Customer service, giving its growing customer base a superior service.

The annual general meetings of the TMC Board of Management, TMC-Galle Face, TMC-Mt Lavinia and the TMC-ETD (Enable the Disabled) will be held at Galle Face Hotel tomorrow. They will be followed by the signing of memorandums of understanding agreements with corporate and service sponsors of the club for the next three years and a press conference thereafter.

The day’s proceedings will end with fellowship among all members and representatives from the sponsor companies.

Ceylon Chamber of Commerce (CCC) welcomes the expansion of the current Free Trade Agreement (FTA) with India to a Comprehensive Economic Partnership Agreement (CEPA) taking the path of a negotiated entry with a phased out programme of extending the coverage of the agreement from trade in goods to trade in services.

Obvious sectors that stand to gain are tourism, information technology, maritime and aviation services such as passenger and cargo transport, logistics services, ship and aircraft maintenance and repair services. For example SriLankan airlines have greatly benefited by early entry into the Indian market.

The CCC believes that Sri Lanka must adjust and respond to significant global trends and practices that will benefit the country.

One such trend is the opportunity presented via the bilateral and multilateral trading arrangements. The benefits that flow are apparent when one looks at regional trading arrangements such as the European Union (EU) and the Association of South East Asian Nations (ASEAN). These arrangements are more relevant in the case of our own country in view of the limited market of the country as well as the fact that we are an island nation.

Given the recent economic resurgence of India and the opportunities that market presents, many other developed and developing countries have already started negotiations with India for preferential trading.

Some of the key countries and trading blocks that are already in negotiation with India are EU, ASEAN, Thailand, Korea, Japan, Malaysia, Indonesia, Israel and the Gulf Cooperation Council.

Sri Lanka due to its geographical location and the special relationships that prevail with this neighbouring country is in a unique position to benefit from the Indian economic boom. We will not be able to successfully compete with India in every product and every service. We need to find the niches where we have a comparative and a competitive advantage. A legally binding document such as the CEPA will enable Sri Lanka to enhance predictability when entering the Indian market. In the absence of such an agreement, even if Sri Lankan businesses face difficulties, regulatory barriers and unfair treatment in the Indian market, there will be no forum or no mechanism to address these issues. The legally binding agreement will give Sri Lanka an avenue to address these issues at meetings between the Government of India and the Government of Sri Lanka to be held every six months. A negotiated arrangement will also allow Sri Lanka to immediately open out certain sectors whilst on sensitive sector, a more phased out arrangements could be arranged.

Sri Lanka in the interests of its rapid economic development needs to address key domestic constraints that hinder our companies from competing with imported products and services. We need to build our capacity and equip ourselves to be able to utilize the opportunities that arise. The private sector and the Government need to work in partnership to make this a success. During the negotiation and the implementation of the agreements, there will undoubtedly be obstacles, and it is important that both private sector and the Government work together to resolve these difficulties. While we argue and debate about the need for change, other countries are already making substantial progress. India has become the centre of attention today in the business world after China. We as a nation need to stand up to the challenge and reap the benefits of India’s growth

HNB boosts dairy development

Hatton National Bank (HNB) continues to take keen interest in the country’s rural development and has been instrumental in providing a host of financial services to a variety activities including cultivation, animal husbandry, trading and other self-employment projects.

HNB has been introducing many unemployable people into the micro enterprise and the small industry sector which has resulted in income and employment generation for a significant sector of the society

HNB recently introduced a scheme specially designed for small scale diary farmers and large scale milk processors under the name ‘Agro Livestock Development Loan Scheme.’ This initiative was taken under a directive from the Central Bank of Sri Lanka to develop the diary industry. Under this scheme the bank granted loans in Kiriwaththuduwa, Homagama, in association with Fonterra Brands Lanka, where 25 loans were granted to small scale diary farmers.

The main objective of this scheme is to enhance milk production and utilization of milk in the country. This scheme also facilitates the purchase of equipment that is related to milk processing, milk production, construction of cattle sheds and the manufacture of other milk related products such as yoghurt and curd. In addition to this, the scheme also facilitates the storage of milk by providing the required chilling plants as well as providing proper facilities for the transportation of milk.

91 day T bills declined 419 bp

Interest rates in the government securities market have recorded a considerable reduction during the early part of 2008 and has stabilized towards the middle of the year.

The expansion of the investor base after the opening of the Treasury bill market to foreign investors up to 10%, the increase of the foreign investment cap in Treasury bonds up to 10%, the general continuation of the market in a liquid condition and the recent downward movement of inflation expectations could be cited as being the main contributory factors to lower the pressure in the domestic market.

Over the past seven months, the primary market interest rate of the 91 day Treasury bills declined by 419 basis points (bp) to 17.11%, from 21.30%. The comparable reduction in the case of 182 day Treasury bills was 155 bp, from 19.99% to 18.48%. In the case of 364 day Treasury bills, the rates dropped by 129 bp, from 19.96% to 18.67%.

In line with the rate reduction in the primary market, the secondary market yield curve that represents the interest rate structure in the market showed a downward shift during 2008.

The reduction of the interest rates in the secondary market is in the range of 130-440 bp.

REACH compliance

Bureau Veritas Consumer Products Services Lanka (Pvt) Ltd, in collaboration with Sri Lanka Apparel Exporters Association (SLAEA) recently held a seminar on REACH to create awareness among Sri Lankan Exporters to the EU about this new regulation.

REACH is an acronym for "Registration, Evaluation, Authorization and Restriction of Chemicals." It is an EU regulation which aims to protect human health and environment from hazardous chemicals and replaces over 40 EU directives. REACH requires you to trace, identify and register chemical substances present in your products before importing or placing them on EU markets. To comply they need to submit relevant documentation per importer/producer to the European Chemicals Agency (ECHA) for Pre-registration, Notification and Registration. REACH compliance covers retailers, manufacturers and EU importers. REACH applies to various industries, such as chemicals, dyeing, printing, "softline" textile & apparel, footwear, toys, consumer electronics, household products and many other consumer products.

Pre-registration is the first and most critical step. This should be completed between June 1, 2008 and December 1, 2008.

Telecoms service in Emirates flights

Emirates has again proved itself an aviation industry pioneer after becoming the

first airline to introduce inflight mobile phone services on a Boeing aircraft.

Dubai’s award-winning airline recently installed the technology, which allows passengers to make calls and send SMS text messages via their mobile phones during flights on a Boeing 777-300.

Passenger Communications & Visual Services Vice President Patrick Brannelly said the inflight mobile phone technology will offer greater services and additional communications channels to Emirates’ passengers.

Brannelly added: "Travellers booked on the Boeing 777, which carries inflight mobile phone services will now be able to continue communicating with family, friends or business associates on the ground while travelling in the skies.

The technology is another example of our dedication to always being the first airline to offer passengers groundbreaking technology and services."

The Boeing 777-300 carrying the new system is operating on several Emirates routes, including services to Europe and Australia.

Emirates first installed the technology, which was created by inflight mobile phone technology developer AeroMobile, on one of its Airbus A340-300 aircraft in March, enabling the world’s first authorised phone calls on a commercial flight.

Since then, the airline has installed the technology on 10 aircraft, including A340-300, A340-500, A330-200 and Boeing 777 planes. Emirates plans to introduce the inflight mobile phone systems to other aircraft, with the airline’s maintenance division taking less than two days to complete the work.

Most inflight calls made by Emirates’ passengers usually occur during daytime flights with minimal usage on night services. The average length of calls is around 2.5 minutes, while the text messaging capability is also proving very popular among passengers.

Emirates has guidelines for the appropriate use of phones on board including requesting passengers to have their phones switched to "silent" mode during flights. The airline’s award-winning cabin crews are also able to control and monitor use of the system, and will be in full control of it throughout flights.

Education fair starts on Aug. 12

PAC Asia Sri Lanka has scheduled its second World Education Fair for this year at the Galle Face Hotel from August 12-13.

World Education Fair 2008 organized by Pac Asia for the first time in Sri Lanka was held at Taj Samudra Hotel on March 15 &16 that brought several reputed universities from Australia, USA, UK and New Zealand.

World Education Fair is part of a series of events that happens in all the countries that PAC Asia represents, an event that takes place twice a year every year. Through educational fairs in Sri Lanka, PAC Asia hopes to make a change in the way educational opportunities and placements are presented to potential students.

PAC Asia has professionals in the field of counselling, communications and education support.. "Our counsellors guide students through maze of questions and find the best suitable educational option for their profile. Our regular follow ups with the universities result in positive and quick response."

PAC Asia Sri Lanka is official representative of institutes from Australia, UK, USA and New Zealand and hence gives the opportunity to students to meet institute reps in Sri Lanka and have face to face interactive session with them. "We give our students an opportunity to meet the delegates of various universities/colleges wherein they not only get a chance to get their doubts clarified about the university and the course but even get on-spot offer/admission letters.

We assist our students in the entire visa processing to the countries we represent, right from filling up application forms, assistance in preparing financial and other relevant documents, providing guidance and conducting mock interviews if needed. "

"We have a well equipped library containing prospectuses, CDs, video tapes and brochures of all the universities/ colleges represented by us to help students in getting information about the institution(s) of their interest. "

PAC Asia also organizes pre departure sessions / get together for its students. "We share with students about their new destination, new culture they are going to face, about the institute they are enrolling in and also making them aware of do’s and don’ts while they settles themselves in totally a new environment. "

PAC Asia-Sri Lanka’s Business Head is. M.A.C.M. Jawahir and its Asst. Manager is Sameera Jayaratna.

Unfair comment on Gunatunge

I am constrained to comment on the rather unfair insinuation in the Business Pages of your paper of August 3, 2008 under the caption "Sampath Asks CSE to defer rights issue".

The annotation under the published photograph of Edgar Gunatunge" "Sampath Bank Chairman Edgar Gunatunge throws in the towel" is grossly unfair and an unjustifiable insinuation. Gunatunge has decided to resign on his own volition and not due to any pressure or veiled threats from any group or groups of persons.

Having worked with and under Gunatunge for over a decade, I am aware of his exemplary and enviable qualities as a banker of high moral rectitude. He has manifestly and abundantly demonstrated that he never wilted under any pressure and has faced many challenges with remarkable grit and determination.

It cannot be disputed that in 1992 he was persuaded by the Central Bank and institutional investors to take over as Chief Executive and Deputy chairman of Sampath Bank.

With his enormous skill, born of vast experience he helped to remarkably turn the bank around. Customer confidence and profitability grew slowly but surely and the image of the Bank was enhanced, and so did the bank’s performance in stocks. It is indeed regrettable that his invaluable contribution seems to be forgotten so soon.

Knowing Gunatunge’s character and exemplary personal qualities I can with certainty emphatically say that he did not by an means throw in the towel due to any pressure, but has acted according to the dictates of his conscience in consideration of his unblemished banking career and the greater interest of the bank

Sqn. Ldr. J.T. Rex Fernando (SLAF-Ret),

Nawala

Business Editor’s Note: "Insinuation" may be an individual’s opinion.
However, the reality may be entirely different.

Errata

Due to a printer’s devil, John Keells Stock Brokers results on Gestetner of Ceylon’s comparative earnings for 1st quarter (1Q) 2008/09 and 1Q ‘07/08 were erroneously reported in our last week’s edition as Rs. 708 million (net profit) and Rs. 673 million (loss) respectively, whereas those should have been correctly read as Rs.0.708 million (net profit) and Rs.0.673 million (loss) respectively.

Commercial Bank in the second quarter (2Q) ended June 30, 2008 saw net profits marginally increase by 0.5% year on year (YoY) to Rs. 1,092.6 million. The Bank in the first half (1H) ended June 30, 2008 saw net profits grow by 5.5% YoY to Rs. 2,117.2 million.

Hayleys makes turnaround

Hayleys PLC in the 1Q ended June 30, 2008 made a Rs. 107.6 million net profit, compared to a Rs. 60.4 million loss in the corresponding Q the previous year.

Nestle’s PAT down 17%

Nestle Lanka PLC in the 2Q ended June 30, 2008 saw net profits dip by 16.5% YoY to Rs. 246.1 million. However, the company in the 1H ended June 30, 2008 saw net profits grow by 42.3% YoY to Rs. 910.8 million.

Union Assurance’s PAT up 63%

Union Assurance PLC in the 2Q ended June 30, 2008 saw net profits grow by 62.8% YoY to Rs. 49 million. The company in the 1H ended June 30, 2008 saw net profits grow by 77.9% YoY to Rs. 90.4 million.

Cold Stores Rs. 6 mn. in the red

Ceylon Cold Stores in the 1Q ended June 30, 2008 made a Rs. 5.5 million loss as opposed to a Rs. 464 million net profit in the corresponding period last year.

Horana’s PAT up 9%

Horana Plantations in the 1Q ended June 30, 2008 saw net profits increase by 9% YoY to Rs. 8.4 million.

Haycarb’s PAT down 3%

Haycarb PLC in the 1Q ended June 30, 2008 saw net profits decline by 2.8% YoY to Rs. 51.8 million.

Malwatte’s PAT up 134%

Malwatte Valley Plantations PLC in the 2Q ended June 30, 2008 saw net profits increase by 133.6% YoY to Rs. 298.4 million. Cumulative net profits in the 1H ended June 30, 2008 increased by 73.4% YoY to Rs. 380.7 million.

Property Development’s PAT increase 46%

Property Development PLC in the 2Q ended June 30, 2008 saw net profits increase by 45.6% YoY to Rs. 68.5 million. Cumulative net profits in the 1H ended June 30, 2008 increased by 92.4% YoY to Rs. 178.6 million.

Spence Hotels’ losses up 423%

Aitken Spence Hotel Holding PLC in the 1Q ended June 30, 2008 saw its losses increase by 422.7% YoY to Rs. 48.2 million.

Spence’s PAT up 14%

Aitken Spence & Co., PLC in the 1Q ended June 30, 2008 saw net profits up 13.6% YoY to Rs. 387.2 million.

AMW’s PAT increases 411%

Associated Motorways PLC in the 1Q ended June 30, 2008 saw net profits increase by 410.7% YoY to Rs. 231.7 million. (Source: John Keells Stock Brokers)

News LINE

Sea sand from Hungary

Sri Lanka to obtain sea sand from landlocked Hungary!

That’s what Construction Minister Dr. Rajitha Senaratne told the audience at the inauguration of "Construct 2008" exhibition that took place at the BMICH on Friday.

He said that this was to overcome the crisis facing the industry due to a lack of river sand, where sand mining has been banned on environmental grounds.

Senaratne further said that the government intends to exploit the 300 million metric tons (mts) of limestone at Kankesanthurai (KKS) for the manufacture of cement. The country’s annual cement requirement is some four million mts. The disused cement factory at KKS has the capacity to manufacture 1.5 million mts of cement, he said.

The French government is involved in the construction of the A 15 Highway linking Trincomalee to Batticaloa; a water supply project at Trincomalee; and capacity building and in a joint venture with the banking industry to provide credit to the construction sector to acquire equipment. (Excerpts from the speech made by Deputy French Ambassador Jaques Villemmain at "Construct ‘08" on Friday)

Liquidity crunch hits market

With market liquidity coming down sharply from the Rs. seven billion levels on Thursday to the Rs. 2.5 billion levels on Friday, overnight call money market rates, the rates at which commercial banks lend to each other for a day moved up slightly to the 13½-14% levels, with market sources predicting that rates would move up further, to the 14-15% levels in the new week beginning tomorrow due to this liquidity crunch.

The Central Bank (CB) has been using open market operations including the sale of "short term" CB Securities extensively in the past week in order to mop-up excess liquidity, in part caused by a Rs. 20 billion Treasury Bond that matured on August 1.

Meanwhile the US dollar which appreciated to the Rs. 107/80/85 levels at the beginning of last week, dipped to the Rs. 107/60/65 levels at the week-end due to dollar selling by commercial banks, they said, adding that there was no particular reason for this selling. Meanwhile, three million shares of John Keells Holdings PLC changing hands at Rs. 104.50 a share, in a "foreign to foreign" trade, boosted turnover to Rs. 541.3 million at Friday’s trading.

Hike not for private sector

The private sector will not be mandated to grant the Rs. 1,000 salary increase which the government announced last month that they would give public sector employees, Labour Ministry Secretary Mahinda Madihaheva told The Sunday Leader on Wednesday.

Private sector salary increases are governed by collective agreements, whilst not discounting the usual annual increments, he said.

South Port tndr. in Sept.

Ports Minister Chamal Rajapakse has assured ship operator representatives that tenders for the construction of the South Port in the Colombo Port Expansion project would be called next month.

A Ceylon Association of Ships’ Agents (CASA) source speaking to The Sunday Leader on the grounds of anonymity said that the Asian Development Bank (ADB) funded US$ 300 million contract for the building of the breakwater under this project is going at a pace, with this part of the work contracted to Hyundai, Korea.

Earlier, the government cancelled the award for the tender for the construction of the first terminal in the South Port expansion project, as it was undecided to award this contract to the Port of Singapore Authority (PSA), whose offer had been recommended by the technical evaluation committee, or, to the other front runner to this project, Hutchison Ports, Hong Kong.