Pillayan wants tourism land

Sri Lanka Tourism Development Authority Chairman Bernard Goonetileke (extreme left) explaining a point to Eastern Province Chief Minister S. Chandrakanthan alias Pillayan at cocktails at Club Oceanic, Trincomalee last Saturday on account of the Sri Lanka Association of Inbound Tour Operators’ (S.L.A.I.T.O.’) A.G.M. that was held the following day. S.L.A.I.T.O. President Chandra Wickramasinghe (extreme right) and Club Oceanic Manager V. Prem Kumar (second from right) are also in the picture.

A provincial council wants to take-over tourism ministry land allocated to prospective investors as those allottees are yet to develop such lands.

Eastern Province Chief Minister S. Chandrakanthan alias Pillayan, a former L.T.T.E. terrorist told this reporter that he would be meeting President Mahinda Rajapaksa in this regard today.

Citing an example, he said that a Maldivian investor who had been allocated 20 acres at Pasikudah for hotel development, had done nothing in this regard so far.

Speaking at a function at Club Oceanic last Saturday, Chandrakanthan however said that the bulk of the state land in the Eastern Province belonged to the Eastern Provincial Council.

Only a few hundred acres belonged to the Tourism Ministry.

Sri Lanka Tourism Development Authority (S.L.T.D.A.) Chairman Bernard Goonetileke referring to the aforesaid Maldivian investment project that was yet to take-off said that the delay was because the investor had to first get over 20 approvals before she could start on this project.

Typically such approvals take over a year, he said. Those matters were beyond the control of S.L.T.D.A., said Goonetileke. There needs that will to get things done expeditiously, he said.

Chandrakanthan said that he welcomed private sector investment in the leisure sector in the East as such investments would create employment opportunities to his people.

The occasion was the Sri Lanka Association of Inbound Tour Operators (S.L.A.I.T.O.) hosting their A.G.M. for the first time outside Colombo, with a number of those local inbound operators making their first visit to Trincomalee after the July 1983 riots.

This coastal town was full of local tourists over the last week-end when we there, with the two well known hotels in the area, namely the 40 room Nilaveli and the 56 room Club Oceanic witnessing full bookings, with the former being fully booked till this week-end and the latter having plans to add 20 more rooms to its portfolio.

 P. Thilak Weerasinghe, Managing Director Lanka Sportreizen said that he has plans to invest in three hotel properties in the East at a total cost of Rs. 450 million.

Roads were being done up, including the road leading to Trincomalee from Habarana, and partying last Saturday, organized by S.L.A.I.T.O. at Club Oceanic went past 12 midnight, when we reporters decided to break-up, and were then driven to the hotel where we were lodged in the vicinity of Trincomalee town, in a night drive that took five minutes.

10% bank credit to agriculture becomes law

A “2006 budget proposal” that 10% of bank lending should be directed to the agriculture sector has become law from this year.

Industry sources said that most local banks have had complied with this regulation with some of those even exceeding the minimum 10% cut off point.

However foreign banks are lagging behind, mainly because they have no branches in the outstation to direct such lending, they said.

Central Bank of Sri Lanka (C.B.S.L.) which is implementing this scheme on behalf of the Government is using the art of persuasion in their monthly meetings with bank c.e.o.s to meet this limit, the sources said. However no penalties have been prescribed for those who will not be able to meet this deadline, they added.

  But India has such a penalty system in operation, the sources said.

“In India, it’s mandated that banks expose between 20-25% of their credit portfolio to the agriculture sector, with penalties imposed on those banks that have not met the target,” they further said.

C.B.S.L. has directed those foreign banks not meeting this requirement to make available such lending through local banks which have branches in the outstation, the sources said.

Total bank credit outstanding in the domestic banking sector is over a trillion rupees.

“With Sri Lanka being an agriculture economy, most banks welcomed this direction when it was brought to their notice by C.B.S.L. in 2006,” the sources said.

 Such directed lending to the agriculture sector is a good thing, because, otherwise it were only the state banks that used to actively participate in giving such credit, they said.

The sources however said that this law does not give banks direction in regard to the lending rates that should be charged on such credit. Nor does C.B.S.L. provide any subsidies or relief to banks conforming to this requirement, they said.

“The market is allowed to determine such rates,” the sources said.  But in general, agriculture lending rates are lower than normal market lending rates, the sources said. And the economy is operating in a scenario where rates are coming down, they said.

Sources further said that this lending is not confined only to cultivation loans, but covers a whole gamut related to agriculture lending, including loans for processed and other forms of commercial agriculture and procurement of land, building, plant and machinery related to agriculture, they said.

Misuse & Abuse 

A number of state owned C.T.B. buses bearing name boards such as “Tissa” and Kataragama, parked near Bishop’s College, Colombo, were witnessed by this reporter around 1.45 p.m. on Tuesday, coinciding with the schools’ closure time, creating a traffic jam.

Those buses were parked on the pavement bordering Sir James Peiris Mawatha that now takes traffic to Slave-Island and beyond, as Duplication Road, the other major road bordering Temple Trees, other than Galle Road, is now closed to traffic.

A number of men and women, some inside those buses and others on the pavement, probably numbering in the hundreds, standing on the road bordering Lake Road and Bishop’s College which leads to Temple Trees, were also witnessed by this reporter.

With the Southern Provincial Council elections round the corner, were those voters from the Hambantota District brought down to Colombo at tax payers’ expense on state buses to pay homage to a V.I.P., and thus gain their vote? a wag asked.

Request to soften advisory 

The French Embassy in Colombo is awaiting Paris’ response in regard to their recommendation to soften their travel advisory on the island.

This was in response to a request made by a local party, it’s learnt.

France, after the U.K. and Germany, brought in the highest number of tourists to the country at one time.

It’s said that France’s mission in Colombo wants the advisory restricted only for travel north of Vavuniya because government approval was needed for travel to that area.

France’s advisory at present even covers Yala.

An advisory warns its citizens of travel to a particular country or parts of that country, with a probable threat to life and limb is such travel is undertaken. Advisories also make travel insurance premiums to go up.

It’s alleged that the Embassy’s efforts to soften the advisory in January met with no response from Paris. In general, the West’s advisories for the South Asian region currently, also warn its citizens of the possibilities of contracting swine flue or dengue when visiting this region, industry sources said.

Colombo, Columbia & G.S.P. + 

Some industrialists believe that the European Commission (E.C.) is using the “carrot and stick” approach on Sri Lanka in dealing with the G.S.P. + issue, and in reality that this facility will not be withdrawn despite all the threatening noises made to the contrary.

Sunil Wijesinha, chairman Dankotuwa Porcelain Plc told reporters on Tuesday (September 15), considering the job losses that the withdrawal of this facility would cause, and the attendant social problems which therewith would follow, he was of the opinion that this concession would not be withdrawn despite signals given to the contrary.

Dankotuwa Porcelain exports over 50% of its products to the European Union (E.U.).

A Western European diplomat, whose country is a member of the E.U., speaking to this reporter on the G.S.P. + issue, said that another country that enjoys this concession in its exports to the E.U. is Columbia, on account of its war against drugs.

One of the primary guerilla movements Columbia is fighting in this regard is the Marxist F.A.R.C. guerilla movement, in a war that has been going on for over 30 years, he said.

“In this war, a number of civilians also meet with their deaths, when Bogota conducts military operations against F.A.R.C., but Columbia still continues to enjoy the G.S.P. + duty free concession in its exports to the E.U.,” the diplomat said. 

E.C., in a recent report, has allegedly castigated Colombo for its human rights record, and has recommended withdrawal of the G.S.P. + concession in lieu, a final decision of which the E.C. is expected to take next month.

Among the local industries that are enjoying this concession are garments, Sri Lanka’s biggest source of foreign exchange, as well as ceramics and fish exports to the E.U.

Good, Bad & Ugly

Central Bank of Sri Lanka (C.B.S.L.) has again begun disseminating banking statistics to the industry following the article that appeared on these pages under the heading “C.B.S.L. censors banking data” (The Sunday Leader issue of August 30, 2009).

But on the flip side, the industry as a whole has decided not to disseminate such info rmation to the media after the publication of that article.

Tourism vs. Bureaucracy

The dawn of peace in the island has also brought in a new political player to the Eastern Province (E.P.) in the form of S. Chandrakanthan, its Chief Minister, and his party, Thamila Makkal Vidu Thalai Puligal which controls the Eastern Provincial Council (E.P.C.).

At a reception hosted by the Sri Lanka Association of Inbound Tour Operators (S.L.A.I.T.O.) at Trincomalee last Saturday, in a seemingly muscle flexing move, Chandrakanthan speaking at this occasion said that he wants Tourism Ministry land allocated to prospective investors, but yet remaining undeveloped, to be given over to the E.P.C., seemingly to expedite such development works.

Trincomalee with its beaches and tranquil seas is a natural tourist attraction.

The vast bulk of state land in the E.P. comes under the E.P.C., with that which comes under the Tourism Ministry, numbering only a few hundred acres.

Chandrakanthan, a former terrorist, better known by his L.T.T.E. nom de guerre Pillayan, told this newspaper that he would be meeting the President in this regard today.

With peace once more restored in the country after the elimination of terrorism in a bloody conflict that lasted 26 years, tourism, which has vast potential in the island is again looking up.

Sri Lanka Tourism Development Authority (S.L.T.D.A.) Chairman Bernard Goonetileke explaining the reasons for the delay in kicking of these tourism related development projects in the East told this newspaper that this was because of tedious approval processes where the investor has to get more than 20 approvals before he could start on his project.

Therefore the time taken to obtain all of those approvals takes about a year, he said.

After more than 30 years of practising an open economy, this time delaying approval process that investors have to go through, is indeed a sad indictment on the country.

It may be judicious for the Government to identify tourism as a thrust industry in the present context and have a “one stop” shop either in the B.o.I. or in the S.L.T.D.A. to cut across this red-tape and at least reduce the current approval process from the present one year, down to at least three months.

But with B.o.I identified as the “one stop shop” for investors, it may sound ironic the creation of another “one stop shop,” but this may be the reality. If necessary legislation is needed to mimimise bureaucracy, then let those be brought before parliament as an emergency measure and passed.

Trincomalee town and Nilaveli, where we reporters were taken by S.L.A.I.T.O. in this whistle stop tour last week-end to cover their A.G.M. held at Club Oceanic last Sunday, were full of local tourists, who had made this journey by the busloads from the South to visit this Eastern Coastal Capital.

With tourism taking a beating due to the near three decade long terrorist war that concluded just four months ago, the only two major hotels in Trincomalee, Nilaveli which overlooks the beach and Club Oceanic, the other beach resort, with a combined room strength of less than a 100 were fully booked for the week-end.

Trincomalee with its placid seas and white beaches appears to have the ideal setting to promote “sun and sand” tourism in the country.

Hotels like Club Oceanic are on an expansion drive, taking advantage of this situation, though, foreign tourists in their numbers were not quite visible, maybe because this time of the year is the off-season period for tourism.

The global recession may also act as a stumbling block to deprive the industry and the country the tourism numbers that they would like to have, though now the world appears to be coming out of the recession.

This was also the first time that S.L.A.I.T.O. which coordinates with overseas tour operators to get down tourists to the country had their A.G.M. outside Colombo.

Some S.L.A.I.T.O. representatives told this reporter that this was also the first time that they were visiting Trincomalee after the July ’83 riots.

A banker told this reporter while local investors have had already begun, or are making arrangements to begin their investments in tourism, prospective foreign investors in the same sector have also started making inquiries, such as land acquisitions for such investments.

But let not bureaucratic red tape and nonchalance kill this industry.

In this 21st century, Sri Lanka is not the only tourism destination available for tourists and investors alike.

Closer home there are the Maldives, India and even Nepal, not forgetting other developing markets such as Indo-China (Vietnam, Cambodia and Laos), and established markets in the region such as Malaysia and Thailand.

With the variety that this island has to offer the tourist, tourism can easily become Sri Lanka’s single biggest source of foreign exchange, climbing to the top from its current 4th place.

However there needs that political will to do things expeditiously, to make this change a reality.

An example of this is the Kandalama hotel in Dambulla, where Ranasinghe Premadasa, the President of that day, left no stone unturned to help the investor to put up this hotel, despite political and religious protests.

He had capable public servants to help him in that task, in the likes of the then Treasury Secretary K.Paskaralingam, Secretary to the President K.H.J. Wijedasa and Wijedasa’s predecessor Bradman Weerakoon.

It is hoped that President Mahinda Rajapaksa will emulate that example by pushing the bureaucracy to expedite such investor applications and have capable people at the top to take this industry forward.

Pillayan told this reporter that he wants such investments.

But in the existing bureaucratic environment in which the industry has to operate, whether the periphery taking over such investment decisions would make that change is the question.

There first needs to be a structural change, otherwise it may be a case of changing the pillow to cure the headache.

 E.P. is one of the poorest provinces in the country. This agro and fisheries based economy requires that thrust provided by the tourism industry to take it forward. This opportunity may not come again. The island cannot afford another insurrection.

The Government must create that enabling environment, the market will do the rest. It has the full backing of Pillayan, but whether the market has the same backing from the Government is the question.

M.I.G.A. has cover for hedging 

World Bank’s (W.B.’s) M.I.G.A. guarantee fund may have provisions to cover sovereign defaults on price hedgings, a promoter said.

 Sri Lanka is a signatory to the M.I.G.A. convention.

Srilal M. Perera, Chief Counsel/Adviser, Multilateral Investment Guarantee Agency (M.I.G.A.), a W.B. subsidiary, addressing a conference at the B.o.I. on Monday (September 14) said that M.I.G.A. political insurance covers encapsulates foreign direct investment, foreign management contracts and foreign debt for investments.

He said that under the “foreign debt for investments” portfolio, i.e. bank credit, such as in relation to the government owned Ceylon Petroleum Corporation’s (C.P.C.’s) hedging imbroglio, where C.P.C. is refusing to honour claims estimated at some U.S.$ 800 million, mainly dues to foreign banks, those financial institutions, if they had got M.I.G.A. cover, that would have had saved them the trouble of having to go to international arbitration to recover their dues as the case now is.

 Perera said that because M.I.G.A. is a W.B. adjunct, it has the clout to negotiate against such “defaults” unlike private insurers and make recoveries, after paying their liabilities to the aggrieved investor.

C.P.C. which hedged against the upside risk against rising oil prices, before the oil price bubble burst in July of last year, took a hit because of its sudden downturn, but refused to pay its liabilities on the grounds that those contracts were flawed, a view upheld by the local courts.

M.I.G.A. covers hedging against interest rate risks in relation to bank debt.

He said that Lanka Indian Oil Company Ltd. (L.I.O.C.) at one time was interested in getting M.I.G.A. insurance cover, but then backed out. Perera said that if L.I.O. C. had been covered by M.I.G.A., it could have had avoided the losses it made when the Government of Sri Lanka (G.o.S.L.) refused to accede to its request for a price increase at the pump, when oil prices were going up.

The value of M.I.G.A. insurance, which mainly covers infrastructure projects, may vary from U.S.$ 100,000 and upwards, where, in the case of equity, upto 90% of it may be covered, whilst in the case of debt, it goes upto 95%.

M.I.G.A., which like the W.B. is based in Washington D.C., has, under the broad gamut of political risks, political insurance covers against “war and civil disturbances,” “nationalization and expropriation,” “transfer and conversion risk,” which includes issues dealing with the repatriation of foreign exchange and “breaches of contract” where the defaulter is a government.

An insuree may buy only one M.I.G.A. policy if it so wishes.

“M.I.G.A., since its inception in 1988 has had only two foreign investors in Sri Lanka seeking its cover, namely Societe Generale, a French financial institution which has since exited from the country and a Japanese independent power producer,” said Perera.

He said that M.I.G.A.’s worldwide portfolio at present was valued at U.S.$ 21 billion, constituting only 2% of such covers, with the rest of the business grabbed by private insurers.

Upto April of this year, the annual premium payable varied from 0.34% to 1.5%, but since then this range has been removed, with premia decided on a case by case basis. Perera said that with Sri Lanka emerging into a post conflict scenario, it was a potential market for M.I.G.A.

He also said that as is the usual case, the cost of the M.I.G.A. insurance premium would ultimately have to be borne by the end user, the consumer. There is no cover against “corruption,” added Perera. M.I.G.A. since its 21 years in existence, has made only five payouts, including in relation to projects in Nepal, Kenya and Madagascar.

Garments, investment goods decline in July 

Textiles and garments export earnings declined by 18.4% in July, contributing 34.6% for the total decline in export earnings to U.S.$ 652 million, a 23.1% year on year (y.o.y.) decline.

However, food, beverages and tobacco category registered a 1.6% y.o.y. growth in July mainly due to substantial growth in fishery products exports.  Fish and garments exports to the European Union enjoy duty free access under the G.S.P. + concession.

Further, investment goods expenditure declined by 24.3% to U.S.$ 205 million in July 2009 reflecting declines in all sub categories

 Meanwhile, the U.S.$ 652 million export earnings  is the highest figure during the first seven months of the year, while July 2008 recorded the highest ever export earning for a month. 

The largest contribution to the July 2009 decline was from industrial exports (71.7%), followed by agricultural exports (28.2%).

 Exports of all sub categories of agriculture sector declined in July 2009, resulting in a 26.4% decline in total agricultural exports.  Contraction in tea exports volumes by 21.2% led tea export earning to drop by 21.9%.

 Export earnings from rubber, coconut and other agricultural exports also declined due to lower prices. Industrial exports declined by 22.4% in July 2009 mainly due to the decline in export earnings of textile and garments, rubber products, machinery and equipment and other industrial exports owing to lower demand, while rubber products declined by 41%.  Cumulative exports during the first seven months of 2009 declined by 18.9% to U.S. $ 3,841 million  y.o.y.

 However, there is a sign of recovery in many export sectors such as rubber based product, animal fodder and mineral export since April 2009.

Consumer goods declined by 24.6% to U.S.$ 172 million led by substantially lower import expenditure on of wheat grain, motor cars and cycles.

Electrical items import expenditure also reduced in July 2009. However sugar import expenditure significantly increased due to higher import volumes and higher prices.  Intermediate goods imports declined by 29.6% to U.S.$ 526 million mainly due to the lower expenditure incurred on petroleum and fertilizer imports.

  The average price of crude oil imports declined by 49.2% to U.S.$ 68.29 per barrel y.o.y. in July 2009.  As a result of lower import volumes, fertilizer expenditure declined significantly. Investment goods expenditure declined by 24.3% to U.S.$ 205 million in July 2009 reflecting declines in all sub categories. Cumulative import expenditure during the first seven months of 2009 declined by 35.3% to U.S.$ 5,353 million y.o.y.

Gross official reserves with and without Asian Clearing Union (ACU) funds recorded U.S.$ 2,278.1 million and U.S.$ 2,189.3 million respectively, by end July 2009.

Based on the previous 12 month average imports (U.S.$ 924 million per month), these reserve values were equivalent to 2.5 and 2.4 months of imports respectively. 

Foreign exchange (Forex) inflows have also “responded favourably” to the positive outlook brought about by the end to the three decades of conflict and approval of a Stand-by Arrangement (S.B.A.) facility by the International Monetary Fund (I.M.F.).  Total net foreign inflows to the government T-bills and T-bonds since mid May 2009 to September 11, 2009 amounted to U.S.$ 1,214 million.

 In the meantime Central Bank of Sri Lanka (C.B.S.L.) is in the process of building up its official reserves to a more comfortable level by absorbing excess forex from the market.  Since end March 2009, upto September 9, it has absorbed U.S.$ 1,955.9 million from the market. In addition, with the approval of the new general and special  allocations of Special Drawing Rights (S.D.R.) by I.M.F. on August 28 and  September 9, 2009 respectively, Sri Lanka has received S.D.R. 324.6 million (U.S.$ 508 million) and thereby C.B.S.L.’s foreign reserves have improved significantly. Accordingly, gross official reserves (without ACU) has been estimated to exceed U.S.$ four billion by September 10, 2009

Meanwhile the trade deficit contracted for the seventh consecutive month in July 2009 by 37.3% to U.S.$ 260 million y.o.y. led by lower trade volumes.

Cumulative trade deficit decreased by 57.2% to U.S.$ 1,512 million during the first seven months of 2009. Private remittances increased by 6.5% to U.S.$ 1,884 million during this period.  As a result, private remittances during the first seven months of 2009 were U.S. $ 372 million (about 25%) in excess of the trade deficit.

Health policy with wealth

Union Assurance notched up another first in the insurance industry with the launch of Union Health Deposit, the first and only health insurance policy in the market that pays interest on premiums paid, while providing coverage for surgical and hospitalization expenses.

“Union Health Deposit is the ideal product for individuals who want insurance to meet unexpected surgical and hospitalization expenses,” said CEO Mrs. Marina Tharmaratnam. The policy covers an individual for a 10 year period, and is available in three options to suit the lifestyle needs and financial capacity of all segments of the market.

Union Health Deposit covers more than 200 surgeries. Policyholders will also receive a fixed sum on a daily basis in case of hospitalization. In addition, a component of the premium paid is accumulated in a Medical Assistance Account which earns dividends monthly.

Part of the funds in the Medical Assistance Account could be withdrawn to meet additional medical expenses soon after completing the first year. If the funds are not utilized or only partially used, monies lying in the account can be withdrawn at the end of the policy period.

Each policyholder will have his or her own account maintained separately.

“One of the key features of the product is that the money lying to the credit of an individual Medical Assistance Account will earn dividends on a compounding basis,” said General Manager Actuarial Pushpakumar Gunasekera. “In addition to health related benefits, the product provides a financial safety net in case of total and permanent disability or death, including an inbuilt facility for premiums to be waived in case of disability, without limiting medical assistance benefits for the rest of the policy period.”

Union Health Deposit which combines the benefits of health insurance with the features of fund accumulation, makes it an attractive proposition for individuals who have no medical insurance coverage or for persons who require an additional coverage to meet the escalating health and hospitalization costs in Sri Lanka.

“At a time most companies are reluctant to offer health insurance benefits to individuals, Union Health Deposit is a unique product which meets an urgent need in the market. And premium rates will remain unchanged for the entire term of the policy irrespective of policyholder’s claims experience,” said Marketing & Distribution General Manager Rukman  Weeraratne.

So invest healthily in Union Health Deposit. Health makes wealth!

Exporting to India if G.S.P. + is lost

A tableware exporter is planning to make inroads into the Indian market, now that the G.S.P. + duty free concession in exports to the European Union (E.U.) is under threat due to Colombo’s alleged human rights abuse in its successful prosecution of the recently concluded war against L.T.T.E. terrorism.

 “We earlier had India as a back-up arrangement, but now we want to exploit that market,” Sunil Wijesinha, Chairman Dankotuwa Porcelain, told reporters on Tuesday.

Dankotuwa which provides employment to 1,000; makes over 50% of its exports in value terms, by exporting to the E.U. on a duty free basis under the G.S.P. + scheme, which concession however is now under threat.

Tableware exports to the Indian market are duty free under the Indo-Lanka Free Trade Agreement.

Wijesinha said that though Sri Lanka also has a free trade agreement with Pakistan, porcelain exports to that market is however subjected to normal duties on account of protectionism afforded to one major Pakistani porcelain manufacturer.

“We are working on this matter,” said Wijesinha.

The industry said that the withdrawal of the G.S.P. + facility would make Sri Lanka’s ceramic exports to the E.U. uncompetitive.

The bulk of the country’s ceramic exports, valued at U.S.$ 42 million, goes to the E.U.

The industry employs some 5,500.

 Wijesinha said that their main competitors were Bangladesh which also enjoys duty free exports to the E.U. by being classified as a least developed country; as well as China, Indonesia, Vietnam and Thailand, though not enjoying duty concessions, yet having a plus over Sri Lanka because of low energy prices compared to prices prevailing in the island,  he said.

Sri Lanka’s main ceramicware exports to the E.U. region are tableware/kitchenware and “ornamental and other article” for which under the normal G.S.P. scheme would be subjected to duties of 8.5% and 2.5% respectively.

G.S.P. is a duty concessionary scheme introduced by the European Commission (E.C.) to enable developing and least developing countries to export their products to the E.U. Whilst G.S.P. + enables such exports to be made duty free. under the normal G.S.P. concession, the buyer will have to pay a duty, which, however would be less than the normal duty he would otherwise have had to pay.

But Wijesinha said that his industry would not be able to survive if his buyers are subjected to an 8.5% duty on such imports under the normal G.S.P. scheme. Sales of such products to the local market however are nominal compared to their export values.

The company’s exports to the E.U. region in the first eight months of this year raked in Rs. 300 million.

A strong rupee is another problem facing exporters, he added.

 Dankotuwa’s exports to the U.S.A. are however falling due to the recession.

E.C. is threatening to withdraw the G.S.P. + duty free concession to the island on the grounds of alleged human rights abuse in its prosecution of the recently concluded war against the L.T.T.E. terrorists. E.C. is expected to take a decision in this regard next month.

Rs. 4.3 mn. in two months

Central Finance’s (CF’s) “Viru Diri Leasing” begins a successful journey in rebuilding the livelihoods of war heroes with a donation of Rs.4,272,500 made to the ‘Api Wenuwen Api’ fund for July/August alone to Defence Secretary Gotabaya Rajapaksa recently.

They risked their lives for us for over 30 years and were successful in regaining peace throughout the nation. We at CF believe that it is now time for us to do our part as citizens of Sri Lanka to help rebuild the livelihood of our war heroes.

CF introduced the “CF Viru Diri Leasing” scheme, which currently offers the lowest down payment in the island-Rs.61 000 and the lowest monthly rental for a brand new or registered three wheeler. There are no additional costs or hidden charges in this scheme. All you need to do is pay the  initial down payment and the insurance premium to lease a three wheeler from CF. CF will then donate Rs.2,500, to the “Api Wenuwen Api’ fund for every three wheeler leased on this scheme. What’s more, your three wheeler will be delivered free of charge to any part of the island.

CF is happy with the positive response to this scheme so far and are also proud to mention that it donated Rs.4,272,500 for the months of July and August alone.

This is just the beginning and we expect to raise and donate more money through the ‘Viru Diri Leasing’ scheme in the near future and continue to support the ‘Api Wenuwen Api’ fund that ensures a bright future for our war heroes, the Company announced.

Yields fall by 100 b.p.s 

Secondary market yields of the more popular Treasury (T) Bonds of 2013 maturities and beyond fell by 100 basis points (b.p.s) week on week (w.o.w.) to 11.50% on Friday, coinciding with Central Bank of Sri Lanka’s (C.B.S.L.’s) 50 b.p.s rate cut of its overnight prime lending rates to banks to 10.50% last Friday.

Market rates have come along way from the 19-20% levels they were commanding at the beginning of the year to these low levels currently because of the war end, sources said. This is now being buttressed by the fact that the world is coming out of the recession, they said.

Foreign inflows after the war end four months ago has boosted market confidence that Government of Sri Lanka (G.o.S.L.) will not have to go to the domestic market to meet its borrowing needs, hence the reason for the easing of pressure on rates, sources said.

Another plus factor is foreign reserves rising to a record U.S.$ four billion.

 “Whilst oil bill payments are deferred, even if G.o.S.L. has to pay a U.S.$ 600 million oil bill, honouring such a commitment on a U.S.$  four billion reserve position is different from having to meet this liability from a U.S.$ 1.2 billion reserve situation,” they said.

Sources alleged that a pre-condition for the I.M.F.’s U.S.$ 2.6 billion standby arrangement was that G.o.S.L. has to maintain reserves equivalent to three months of imports which works out to U.S.$ three billion.

C.B.S.L. with U.S.$ four billion in reserves is well within those parameters, they said.

Sources further said that the foreign exchange market last week was dull, with C.B.S.L. continuing to defend the U.S. dollar at Rs. 114/80 per unit.

Rs. 17 bn. from spices

Spice exports in the financial year 2008/09 raked in Rs. 16.8 billion, with volumes growing from 29,122 metric tons (m.t.s.) to 33,026 m.t.s year on year.

Daily av. turnover tops a bn. 

The bourse driven by high networth individuals and corporate interest in stocks such as J.K.H., P.A.B.C. Bank and Browns saw turnover top the Rs. one billion mark for the third consecutive day at Friday’s trading, though the benchmark A.S.P.I slipped by 4.61 points over that of Thursday’s close, however the more sensitive M.P.I. gained by 3.46 points during this 24 hour period.

The week under review saw a net foreign inflow of Rs. 387 million, as opposed to a net foreign outflow of Rs.108.7 million the previous week.

The A.S.P.I. gained by 3.49% week on week (w.o.w.) to close at 2,939.44 points while the M.P.I. gained by 9.88% to close the week at 3,293.48 points. Daily average turnover at Rs. 1.2 billion was a w.o.w. increase of 9.1%. Market capitalization in the period under review increased by 3.5% to Rs.941.2 billion.

Tourism, agriculture, to spur credit

Tourism and Agriculture investments are two sectors that investors are now looking at for credit, market sources told The Sunday Leader.

They expected such investments to take-off next year. Feasibility studies are currently being undertaken, they said.

“Those investments are mainly driven by locals, with foreigners also making inquiries on land purchases and such like,” the sources said. 

Foreign funds moving into the country is another show of confidence, they said. In the agriculture sector it’s mainly plantations, cinnamon and cash crops that investors are looking at, spurred by Central Bank of Sri Lanka’s (C.B.S.L’s.) requirement that 10% of bank lending should be exposed to the agriculture sector, the sources said.

Meanwhile weighted average yields (w.a.y.s) of Government debt at Wednesday’s Primary Treasury  (T) Bill auction fell sharply, in line with C.B.S.L.’s last Friday’s 50 basis points (b.p.s) cut in its policy rate. 

W.a.y.s of 91 day bills fell by 40 b.p.s week on week (w.o.w.) to 10.04%, 182 day bills by 43 b.p.s to 10.96% and that of 364 day bills by 47 b.p.s to 11.50 at Wednesday’s primary T Bill auction.

Sources expected market lending rates to also go down accordingly, whilst cautioning that there was a lag effect before the decreasing cost of Government debt could be passed on to market lending rates.

This lag effect may  last 6-12 months, the sources said.

They said that the reason for this lag effect was because of the higher interest rate paid on bank deposits not so long ago when inflation was 30%, with bank deposit rates touching 17-19%.

Private sector credit in the first six months of the year shrank by 3%, mainly compounded by high lending rates and falling prices due to the recession.

High lending rates also resulted in bank non performing loans rising to a near 9%.  Interest rates on credit cards, which come under the consumer banking sector however has not come down, with those interest rates on an annualized basis working out to some 40-50% still.

Meanwhile inflation  as measured by the point to point change in the Colombo Consumers’ Price Index (C.C.P.I.) was 0.9% last month, while the annual average change was 8.5%.

Sources however expected that the point to point change in the C.C.P.I. to have had bottomed-out, while the moving annual average change was expected to dip some more by the month end.

“Deflation may be good for a developed economy, but not to a developing economy like that of Sri Lanka, “  they said. Even the U.S. economy is suffering because of deflationary pressure brought about by consumer reluctance to spend, the sources added.

Concept that is Rocell

Royal Ceramic Lanka Plc (Rocell) unveiled the Rocell Bathware Concept Centre, Sri Lanka’s “best and only bathware boutique.”

Showcasing the finest in designer bath and sanitary ware in unique living spaces, Concept Centre invites consumers to “immerse” themselves in an exclusive shopping experience.

Conveying every facet of the Rocell brand world, the 8,000 square foot luxury concept centre is the creation of award-winning Italian interior designer Simone Cagnazzo.  Combining design and interior decoration with design solutions for modern architecture, Cognazzo created the elegant and stylish living spaces with the object of stimulating and inspiring visitors to the concept centre.  By locating each piece in context, the designer has fashioned authentic bathroom settings-from the water flow to tiled surfaces.

The concept centre presents complete bathroom designs and environments that are cosmopolitan, contemporary, and complete with running water.  Displaying Rocell’s extensive range of designer tiles, bathware and accessories, the living spaces ensure customers are able to make individual choices after experiencing the finished setting.  The addition of a spacious lounging room ensures that customers receive a superlative experience in shopping and service. 

Rocell Bathware CEO/Director Tharana Thoradeniya said, “We are proud to unveil this unique and innovative accomplishment in the Sri Lankan bathware industry.  The Rocell Bathware Concept Centre is a live experience in contemporary bathroom design, bringing a new ‘sensuousness’ to the bathroom as a living space.  The concept centre reflects our values of design, innovation, quality, and strong commitment to ensuring the highest standards in terms of functionality, while also creating a place for interaction with our valued customers.”

The internationally accepted, aesthetically pleasing, premium quality Rocell bathware and tiles featured at the concept centre are manufactured at the company’s state of the art production plants while faucets and accessories are imported from Europe.

Complying with British Standard Specification BS EN 3402-1969, all Rocell Bathware products are manufactured to the highest international standards and carry the internationally accepted Watermark Certification for efficiencies in flushing and water saving capabilities. Cognizant of the need for high quality across every aspect of its product, the Rocell Bathware portfolio utilises duraplex-an antibacterial cellulose derived material for its seat covers, guaranteeing total sterility throughout usage. Soft closing or controlled seat fall mechanisms have been introduced to select Rocell Bathware models to allow for seat and covers to close with no intervention by the user. Unique to the bathware market in Sri Lanka, is Rocell’s offer of a 25 year written warranty for its entire bathware portfolio.

Top mnc 

Unilever Sri Lanka continued its successful trend in advancing its rank position in the fifth annual compilation of LMD’s Most Respected entities in Sri Lanka.

The company moved up two notches to secure the 5th position in the rankings thereby maintaining Unilever’s position as the highest ranked multinational on the list.

The annul survey, conceptualized and commissioned by LMD, Sri Lanka’s leading business magazine, covered a sample of 800 senior business executives and is designed to rank the ‘Most Respected’ entities in Sri Lanka and determine the reasons why they are perceived as such by Colombo’s business community.

As in previous years, the ranking is based on an evaluation of companies’ performance on 10 criteria-financial performance, quality consciousness, management profile, honesty, innovation, dynamism, work environment, CSR, vision and national mindedness. The all-star analysis of various key performance indicators used in the survey showed that Unilever continued to score high on business performance, quality consciousness, work environment, vision, innovation, honesty and dynamism.

Unilever Sri Lanka Chairman Amal Cabraal, commenting on Unilever’s continuous progress on the LMD’s Most Respected list, said it was a reflection of the company’s commitment to its core values. “I am delighted that Unilever Sri Lanka has not only improved its ranking on the list, but also maintained its position as the highest ranked multinational once again”.

Choosing foreign degree 

Private tertiary education in Sri Lanka has been transformed into being vultures by certain institutions which are onlyl out to make money.

 Particular organizations are harping on the fact that they enable parents/students to save 70% of their expenditure to earn a quality British degree. How is this possible when you spend Rs. 600,000 in Sri Lanka just to earn a diploma offered by a local body with almost no quality assurance and then spend Rs. 1.5 million annually in UK, just for tuition fees?

 You will be spending Rs. 7.5 million to obtain British degree, taking in to account the cost of living expenditure.

Private tertiary education is not just representing a foreign University in Sri Lanka. Does the institution take responsibility for your child’s education, qualification and quality of life promised in the advertisements? There are some institutions which have long standing associations with recognized & prestigious foreign universities. These institutions will not be able to function for so long unless they have been responsible in their actions.  But there are some who have ventured into the industry in the recent past, who are in it for the short run to make a quick buck. These are the organizations offering ‘carrots’ to parents & students in the form of 70% savings.

Most of the private tertiary education institutions in Sri Lanka are reluctant to adopt a policy of allowing students to pay the total fees upfront. Nor are they willing to take a policy of not revising fees once students register for a particular programme. Is it not fair that parents should know exactly how much they would be spending on their child’s education from beginning to end?

Institutions are boasting of having ‘foreign’ lecturers in their panels. But are these foreigners actually university appointees?

Lecturers in an undergraduate & post-graduate programme should be representing the standards, quality & benchmarks set by the foreign universities. Whether they are local or foreign, they should be adequately qualified & should have extensive industry experience to be able to maintain quality classroom time. They need to be appointed by the university the institution represents & constantly assessed by the same university.

Some popular institutions even resort to using their own students soon after they graduate from their own programmes as lecturers. These lecturers has at most instances, not even seen the light of a real corporate environment. So what will they pass on to your child? It is a huge cost saving to the institution, as these ‘lecturers’ come much cheaper.

Credit to govt. 

HSBC’s deposit growth witnessed in the first six months of the year is being rechannelled for investments in government securities and to private credit.

While the industry as a whole witnessed a negative 3% credit growth to the private sector in the period under review, HSBC’s lending to this sector however was a positive 3%. The bank which is the leader in the credit card business in the island commands 27% of those numbers and 40% of its spend.

HSBC’s non performing loan portfolio is lower than the industry average which is closer to 9%. (Excerpts from HSBC Sri Lanka and Maldives Chief Executive Officer Nick A. Nicolaou’s speech to reporters on Monday as well as from another HSBC source)

Exercise books manufacturer 

Education Minister Susil Premajayanth was the chief guest at the NSP Exercise Books sales convention which was held in Colombo recently.

NSP was founded by late Ariyadasa Ranasinghe in 1942. Ranasinghe was president of the Union of all Island Exercise Books Manufacturers until his death. The company uses German machines in its book manufacture. Managing Director Parakrama Ranasinghe addressed the gathering.

Rs.1.2 mn. donation 

Sri Lankan Army Commander Lt. General Jagath Jayasuriya accepting the donation from Chevron Lubricants Lanka PLC Managing Director Kishu Gomes.  Also in the photo is Finance Director Anura Perera. Chevron Lubricants Lanka PLC recently  donated relief items to the value of over Rs. 1.2 million to the IDPs in the North. The donation included baby shirts, vests, nappies, towels and feeding bottles; and clothing, bed sheets and footwear for men, women and children of all ages.

Grooming top managers 

Time is precious and for many people time is a constant concern.

 Are you at a point in your life where your qualifications need a boost? Does your career need a kick start? So many of us are striving for better things; better employment opportunities, better salaries and all round better prospects either at home or abroad.

To enhance your present qualifications and boost your career, Northwood University, Michigan, U.S.A. have introduced a Bachelor of Business Administration (B.B.A.) degree specializing in Management.

This unique programme can be completed entirely in Sri Lanka in as little as one year. The B.B.A. Management degree comes under the Executive Education suite of programmes offered at the Northwood University International Programme Centre, Sri Lanka. The Executive Education programme is aimed at students who have professional qualifications coupled with at least 2 to 3 years work experience.

Northwood University has been providing specialist business education and the resulting career growth opportunities to current and aspiring managers and executives in the U.S.A. for 50 years. Northwood University’s management and entrepreneurship focus prepares students to become future leaders of a global and free enterprise society.

The University has three residential campuses in America, over 29 extension centres across the USA and international programme centres in Europe, Middle East, South East Asia, China and Sri Lanka. Northwood University is truly global.

What are the benefits you can expect from a Northwood University specialized management degree? Direct entry to the final year of a specialized management degree for those who hold qualifications in CIMA Managerial Level, ABE Diploma and BTEC Edexcel HND. Professionally qualified students are able to consolidate their past education and receive credit for relevant studies completed.

All students receive an internal B.B.A. Management degree direct from Northwood University, USA..

This international degree can be completed in as little as one year. Simple course structure: Twelve taught course units are required to complete the degree with one course being studied per month. All classes are held on Sundays.

You will be learning from the best. Unlike distance learning programmes, students receive individual learning support from industry specialized faculty who hold masters and doctoral degrees.

Exemptions for work experience: Northwood University recognizes the wealth of experience as a result of your career so far. For this reason it awards exemptions for some courses based on work life learning experience.

You will have the opportunity to take part in local and overseas field trips along with having the chance to listen and interact with highly regarded guest speakers from industry.

You will be able to enhance your learning through having access to Northwood University’s online library facilities. Nought per cent interest instalment payment plan: Affordable tuition fees are combined with a 12 instalment interest free payment plan.

If you see yourself in management, as an industry leader, as the creator of your own company, as a prime example of success, Northwood University is the place for you.

Always No. 1 

Tigo is the 1st in per second billing, 1st in life time bonus with every reload, 1st in total incoming free and the 1st in Call Collector. The innovator in mobile communication has once again launched another 1st, Call Collector 2 with one month of phone calls free to one selected Tigo number.

“At Tigo we believe that customer is king and satisfying them is our main focus in all our innovations. We strive to provide our customers with the best products and services to suit their life style,” said CEO Dumindra Ratnayake.

 “There are different kinds of products offered by all networks in the market today. But at Tigo we make sure that our products offer maximum value to our customers. Therefore every product innovation is designed to benefit our customers,” he said.

“Call collector 2 is an extension of Call Collector and specifically targets customers that call one specific number all the time,” added Ratnayake.

With Call Collect 2, all chargeable outgoing seconds collected during one calendar month can be used on one selected Tigo number through the following month free. All what the customer needs to do is to dial from his/her Tigo phone and activate the Call Collector 2 facility.

Once the one number feature is activated, from that point onwards till the month end, the customer can use all collected seconds to take free calls to the selected Tigo number. If the customer’s previous month’s usage exceeds Rs. 200 or more from the point he finishes the free seconds, all outgoing calls made to this specific Tigo number will be at two cents per second. SMS to this selected number will be charged at 75 cents.

“Call Collector 2 gives our customer more freedom to call one specific number all the time. They can now freely express themselves as the feature can be used 24 hours a day 365 days of the year,” said Ratnayake.

“We are confident that our customers would enjoy our new Call Collect 2 service and assure them that Tigo will continue to give them the best in affordability, accessibility and availability,” he further said.

From pinnacle to pinnacle..

By Kshanika Argent 

Elephant House Ice Cream’s dominance has spread beyond the local market, having gone on to capture 50% of the Maldivian ice cream market.

This new development has placed the brand in the same league as international ice cream giants Walls, Nestle and Haagen Dasz, said Ceylon Cold Stores’ Frozen Confectionary Head Neil Samarasinghe.

Speaking to The Sunday Leader, Samarasinghe said that Elephant House Ice Cream owes its popularity to constant innovation, trusted quality and a heritage that dates back half a century coupled with a serious approach to research which has followed local consumer tastes closely for decades.

But the good news for Elephant House Ice Cream doesn’t end there. The company is now basking in the glory of a successful launch of a new ice cream variant, Hakuru Mix, launched on September 2 and is available at all supermarkets and 20,000 retail outlets.

According to Samarasinghe, Hakuru Mix is a vanilla based ice cream blended with the finest local kithul jaggery sauce and was introduced to the local market after months of research which went into perfecting the product. 

He said, “Our research found that Kiri Pani, another one of our products launched sometime ago was a hit, but had its niche. One thing we’ve noticed over the years however is that Sri Lankans have a long tradition of mixing treacle into their deserts, curd, yoghurt and even vanilla ice cream-which is a habitual and historical consumption pattern. It’s with this insight that we created Hakuru Mix, reinventing a purely local habit and giving it a new dimension.”

In keeping with the ‘local’ flavour, Samarasinghe added that Elephant House Ice Cream combined a CSR project in the making of Hakuru Mix.

Only the finest local vanilla from the Kandy Vanilla Farming Association was used in the production of Hakuru Mix, boosting the local industry and saving millions of rupees that would have had otherwise gone out of the country.

Samarasinghe added, “Over the past eight years the local vanilla farming industry has grown and developed in ways that can only be described as remarkable. A lot of companies throw big money around on projects that they don’t see through. But we’re proud to say that this is one project that has worked well for us and we’re glad to be apart of something so important to the country and the people. We’ve seen an entire society, over 25,000 vanilla farmers, improve their way of life through hard work, commitment and teamwork. Their income levels have leaped and now we’re self sufficient in vanilla to the extent that we’re looking for an international market for our vanilla. We’re happy to play a part in further boosting them and hope that others will follow our example.”

On the topic of further product expansion and the company’s reach in the island, Samarasinghe said that many more variants are in the pipeline, “but will take a slow and steady path in being released.”

 “We’ve never believed in ‘testing’ out products on our consumers. We have researchers and a highly qualified, dedicated team and we never release a product into the market if we’re not 100% confident of it. I think this formula has worked well for us and we’ll stick to it.”

 He also added that distribution would be expanded to many parts of the country that were once out of reach, including the North and East. He said, “We’ve always had a presence in Jaffna but with the A9 opening again, we’re rapidly expanding. What’s more, we can finally sell at MRP, which is great news for consumers. Jaffna is definitely our next target market and we’re looking to invest heavily in this area.”

On the topic of market share, Samarasinghe said that he’s delighted with the company’s place as market leader at home and how the trend is spreading overseas as well. “The 50% market share in Male is a great achievement. It’s good to see a Sri Lankan product in the same league as giants like Nestle, Walls and Haagen Dasz.”

Elephant House currently commands more than 60 % of Sri Lanka’s ice cream market and looks set to continue delighting its rapidly expanding clientele both at home and abroad with new ideas, flavours and variants. He said, “Almost every family in Sri Lanka has experienced the uncompromising quality delivery and value throughout generations. We’re an established household name and are now fairly confident that we can take this to greater heights, and foreign markets.” It’s a slow and steady climb to the top, but a brand as indomitable as Elephant House Ice Cream, the journey promises to be a prosperous one.

CIMA Summit

Building a nation’s future in times of recession and global dis-equilibriums will be the focus of the keynote address to be delivered by Prof. J.D.Agarwal, founder Chairman & Director of the Indian Institute of Finance (I.I.F.) & Editor-in-Chief of Finance India at the inauguration of the CIMA Business Leaders’  summit that kicks off on October 5 at the Cinnamon Grand Colombo on the theme “the Challenge-Now and Ahead”.

Agarwal is a leading economist, financial expert, lecturer and media personality.

One of his most important contributions is to found the prestigious I.I.F. in 1987.

The Business leaders’ Summit is CIMA’s flagship event designed to address matters of corporate, national and social interest across the Asia Pacific region. During the two day summit, paper presenters are expected to bring forth the challenges and possible recovery strategies, particularly in relation to South Asian region for discussion.

New ICASL syllabus 

The most decisive Advanced Level exam has now concluded. It is a time to relax and be happy of the hard labour you invested and the sweat and tears you shed to make a new opening for your future career.

But bear in mind that passing you’re A’ Levels may not be an adequate qualification. Today we find many high sounding qualifications which, however has little recognition. It is also common to find cheap qualifications with no recognition at all.

 What is important to youngsters is to choose a qualification which has both affordability and recognition. Institute of Chartered Accountants of Sri Lanka (ICASL), Sri Lanka’s national accounting body provides just that.

 ICASL has now opened a clear path, especially for school leavers offering them a wide range of opportunities through its revised new curriculum for 2010.

The new syllabus change is in par with international trends. Under the New curriculum, the study course has been structured into three levels as Certificate in Accounting & Business (CAB) which consist of  four modules based on Semester end  Examination & Top CA Case study, IT Skills development module & Practical training module and a Communication module based on a workshop and finally a presentation on skills module.

Diploma in Accounting & Business (DAB) which covers five modules based on semester end exams, Communication module based on CAT and a IT skills development module along with a practical training module. And finally comes the Associate Chartered Accountant (ACA) qualification which contains seven modules based on Semester end Exams,  two communication modules based on semester end examinations, an IT skill development module and a practical training module. All these levels are well recognized both locally and overseas and gives the student a thorough understanding on key subjects related to accounting such as Accounting and Finance, Assurance and Related Services, Performance Measurement and Reporting, Strategic Business Management and  Taxation and Legal Se

rvices.

Stay connected in Sri Lanka

SriLankan Holidays has teamed up with the country’s flagship mobile services provider Dialog Telekom to offer a free local mobile connection to all passengers flying into Colombo on its inbound holiday packages.

On arrival at the Bandaranaike International Airport, the passenger will be provided a local number on his foreign SIM or a Dialog pre-paid connection together with some start-up talk-time. Thereafter, the account can be topped up depending on the passenger’s requirement.

SriLankan Holidays General Manager Amith Sumanapala said: “We are excited about this service that we are offering to the thousands of passengers arriving in Sri Lanka from the world over through SriLankan Holidays. This initiative will assure our clientele a memorable stay in paradise isle.”

This is also a boon to MICE groups and for passengers on tour-holidays who need to be in regular contact with their tour guides and ground operators. The Dialog pre-paid connection is an economical and convenient option for tourists to keep in touch with friends and family back home whenever they are on the go.

Dialog Mobile Chief Executive Officer Supun Weerasinghe said: “As Sri Lanka’s leading mobile telecom services provider with the best in value, coverage, clarity and service, we are pleased to join hands with SriLankan Holidays to deliver cutting-edge telecoms services to international travellers visiting Sri Lanka. Dialog’s superior network infrastructure together with an ever-expanding partnerships portfolio with global telecoms service providers enable us to provide seamless and customised communications solutions to both local and international subscribers. We will leverage on this advantage to provide travellers a local number to connect with friends and family in the most convenient and affordable manner.”

Next gen. plant 

India’s leading car manufacturer Maruti Suzuki India Ltd inaugurated its next- generation KB-series engine plant. The new series engine is another significant initiative undertaken by the Company towards offering customers’ the latest technology.Maruti Suzuki Managing Director Shinzo Nakanishi said, “We are happy to introduce a brand new family of petrol engines to our customers. Maruti Suzuki is the first company to introduce fuel-efficient vehicles in India way back in 1983 and have continuously improved the technologies over the years. Like all Maruti Suzuki technology, this new engine is highly fuel efficient, while offering the best in refinement and performance. It will take engine technology to the next level in India’’.

The KB series engine will be mounted on the forthcoming model, A Star from Maruti Suzuki. The 998-cc engine has been designed to be environment friendly and fuel efficient with its light weight construction and “innovative” technologies to improve combustion and minimize friction.

The Smart Distributor Less Ignition system with dedicated plug top coils, high pressure semi-return fuel system and advanced injectors for superior atomization provide uniform and optimized combustion for better performance. The KB-series engine is ready to meet the future emission norms, especially the Euro V norms for the A Star export model.The KB engine plant has an installed annual capacity of 240,000 engines. The new engine will be manufactured in the state-of the-art, fully integrated manufacturing facility inside the Gurgaon Plant. Spread over an area of 20,300 m2. The new engine plant is part of the Indian Rs. 9,000 Crore (1 Crore = 10 million Indian rupees) plan drawn by Maruti Suzuki and Suzuki Motor Corporation announced earlier. The company has committed to set up an R&D centre and testing ground at par with Suzuki Motor Corporation, Japan as per schedule. Besides building capability in designing cars, Maruti Suzuki is also focusing on enhancing R & D in engine technology. Maruti Engineers worked as part of the Suzuki Engine Design team for the design, calibration & testing of the engine at India & Japan. This is a step forward in building the engine development capability.The new KB series engine is a result of R&D efforts and hours of design, validation and testing. The engine realizes the spirit of the global design trend of optimizing engine performance through “innovative” design techniques.

Also associated at this event were M.M.Singh, S.Oishi and I.V.Rao.

Int’l broadband conference 

The 2nd South Asia Broadband Communications Conference and Expo will be in Sri Lanka in the first week of next month (October 2009).

 The  Conference is scheduled to be held at a Colombo hotel from October 6-7 and will once again bring together under one roof the world’s leading vendors, regional operators, service providers, regulatory agencies, channel partners and the corporate customer sector in South Asia’s telecoms industry transition in the internet area.

The conference will cover broadband deployment in Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka.

Broadband is becoming critical infrastructure component. For Sri Lanka, improving telecoms infrastructure in the North and East with WiMAX and LTE (both broadband wireless technologies), one can be faster and cheaper than using wired technologies which require digging canals.

For the island, thes Broadband conference will be an opportunity for all the players in this sector to discuss various alternatives and find solutions for their needs. Also on the exhibition side of this conference there will be a display of products for users to take their pick.

Following its success with the first event, this year too, the broadband conference will continue its coverage of the latest technology and regulatory developments while focusing on business case studies and development plans of the main operators and internet service providers in the region.

 TNI Head and Princeton, USA Computer Networking Consultant Dr. Zoran who will conduct the conference said, “Telecoms operators in the region are challenged by fierce competition among themselves and cost sensitivity of their residential and business customer bases. For them it is important to make informed decisions about the technology choices for infrastructure and to differentiate themselves with the types and quality of services and business models that will benefit their customers.

The main objective of the conference is to provide them the forum to help out in that process by exchanging the best practices across the borders of the region, and bringing the potential of their services to business customers through these informative conference sessions. “

Enhanced Pranama scholarships 

Ceylinco Life has increased the value of its Pranama scholarships for students who excelled at the Year 5 scholarship examination by 50%, students who excelled at the G.C.E. Ordinary Level by 100%, G.C.E. Advanced Level by 75% and scholarships for Merit award winners by 40%.

 Consequently, selected Year 5 scholarship winners will each receive Rs. 90,000, G.C.E. (O/L) winners Rs.72,000; and students placed 1st in their districts at the G.C.E. Advanced Level Rs.126,000. The scholarships for national merit award recipients have been increased to Rs.35,000.

These scholarships will be on offer to the company’s policyholders’ children who obtained their policies on or before December 31, 2008 from all districts of Sri Lanka. The total value of the new scholarships that will be on offer is Rs. 3.58 million.

Additionally, special cash awards of Rs 25,000 will be presented to each of the students who achieved the highest marks islandwide in mathematics, biology, commerce and arts at the GCE (A/L) exams in 2008, irrespective of whether or not they are the children of policyholders. If, however, a policyholder’s child has achieved this distinction, he or she will qualify to receive both awards, the district-wise scholarship and the special cash award.

 The company will award 160 such scholarships in January 2010.

Ceylinco Life’s flagship policyholder rewards initiative in the field of education, The Pranama programme has benefited more than 1000 ‘future leaders’ since the first awards ceremony in January 2002. The total value of scholarships awarded to date exceeds Rs. 33 million.

Besides the Pranama scholarships scheme, Ceylinco Life has also established the Ceylinco Aloka Fund for education which pays up to Rs 54,000 in 36 equal monthly instalments on the death of an active policyholder in the low income segment whose children are undergoing primary, secondary or tertiary education.

P.a.t. up 30% 

SriLankan Catering (Pvt) Ltd. reported a Rs. 1.26 billion after tax net profit in the 2008/09 financial year, a 30% year on year increase. However the SriLankan Airlines Group per se made a Rs. 9.9 billion loss in the year under review.

SriLankan Catering and SriLankan Airlines Chairman Nishanta Wickremasinghe said: “ SriLankan Catering continues to be a tower of strength to our nation and the SriLankan Airlines Group with yet another stellar performance. The company has crossed the Rs. one billion profit mark for the third time in the last four years.”

SriLankan Catering, a fully owned SriLankan Airlines subsidiary, providing inflight meals for airlines that operate in and out of Bandaranaike International Airport. These include Emirates Airlines, Qatar Airways, Malaysian Airlines, Royal Jordanian Airlines, Kuwait Airways, China Airlines, Singapore Airlines, Saudi Arabian Airlines, Mihin Lanka and SriLankan.

Executive pens 

Jupiter Group has been appointed the sole agent for Waterman Pens in Sri Lanka.

Their brands include Parker and Waterman.

Waterman, headquartered in Paris, manufactures gift fountain pens, ball pens, markers and highlighters and such like.

Their range of brands includes nibs made out of either gold or silver.