F.d.i. down 78% if concessions
B.o.I has warned the I.M.F. that
the disallowance of B.o.I incentives to foreign
investors would result in foreign direct investment (f.d.i.)
falling from a record U.S.$ 889 million made last year
to U.S.$ 200 million (annual average f.d.i.), a 78%
In a report presented to I.M.F.
representatives at the Central Bank office in Colombo
last Thursday, B.o.I officers claimed that when the then
Government withdrew B.o.I. tax holidays in 1995, f.d.i.
plummetted from U.S.170 million recorded the previous
year, i.e. in 1994, to U.S. $ 13 million in 1995, a 92%
drop, forcing the Government of the day to reintroduce
B.o.I. incentives in order to attract f.d.i. into the
country the following year, i.e. in 1996.
These incentives have largely
remained unchanged since.
B.o.I in that report also
highlighted that the World Bank in its “Ease of Doing
Business Index” released last month has ranked Sri Lanka
105th out of 184 countries, and in the “Paying Taxes”
sub category under the same index, has ranked the island
B.o.I. incentives come in the
form of tax holidays and the allowance for such
investors to import capital goods duty free.
President Mahinda Rajapaksa
recently appointed a Tax Commission to find ways and
means to boost tax revenue, which, year on year (y.o.y.)
has fallen by 3.5% in the first seven months of the year
to Rs. 344.3 billion.
However, the Government has
given a pledge to the I.M.F. that it will increase
revenue by 2% of G.D.P. (Rs. 100 billion) by 2011,
thereby clinching a U.S.$ 2.6 billion standby
arrangement from the Fund recently.
Sources said that I.M.F.
officers were non-committal at that presentation. Among
the others who had been present at the presentation were
Central Bank, Inland Revenue Department and members of
the Tax Commission, they said.
Meanwhile, the Tax Commission is
expected to present their interim report to the
President this month, which recommendations are due to
be incorporated in Budget 2010 scheduled to be presented
in Parliament next month. Their final report is expected
to be ready next year.
In order to boost tax income the
B.o.I. has recommended the lowering of the corporate tax
bracket from the current 35% to 25% thereby to encourage
investments, and by so doing being able to widen the tax
base on the basis that that would encourage more
investors into the island, which then would translate to
increasing the numbers of employed, therewith providing
further conduits for the Government to enhance tax
B.o.I. is expected to make a
presentation to the President in this connection
Central Bank of Sri Lanka’s (C,B.S,L.’s)
erraticism was witnessed in both the foreign exchange (forex)
market and interest rate (money) market in the past few
Last Thursday C.B.S.L. imposed a
ban on foreign investments in outstanding Treasury (T)
Bills and Bonds (see The Sunday Leader issue of
September 27), only to see this ban lifted three working
days later, on Tuesday.
Then for a brief one hour on
Monday’s trading, C.B.S.L. stopped intervening in the
forex market which saw the U.S. dollar depreciate from
the Rs. 114.80 levels per unit (at which level C.B.S.L.
has been defending the greenback in the past few weeks)
to the Rs. 114.50 levels, before once again intervening
in the market, and buying dollars at a premium price of
Rs. 114.80 per unit, thereby again artificially
inflating the dollar.
Meanwhile C.B.S.L.’s brief ban
on foreign investments in outstanding T Bills and T
Bonds virtually forced it to reject the offers received
at Tuesday’s T Bond primary auction.
Market speculation was that
tenderers offered higher bids than that which the
C.B.S.L. was prepared to pay, hence the rejection of
“Foreigners were responsible
for the earlier rate decline, but with the ban imposed
on foreign investments on outstanding T Bills and Bonds,
yields may have had hit a nadir,” market sources told
this reporter soon after Tuesday’s T Bond auction.
However, immediately after the
rejection of those bids, C.B.S.L. lifted the ban on
foreign investments on T Bills and T Bonds on the same
day, which once again saw foreigners, through foreign
banks, participate in the T Bill primary auction that
was held the following day, causing yields to fall due
to increased foreign demand.
As a result, T Bills of 91, 182
and 364 day maturities fell by 22, 9 and 8 basis points
to 9.48%, 10.63% and 11.09% respectively at Wednesday’s
Sources earlier speculated that
the reason why C.B.S.L imposed a temporary ban on
foreign investments in outstanding T Bills and Bonds was
to get a better rate on its U.S. $ 500 million Sovereign
Bond issue due to be launched to the international
market this month.
Its inaugural U.S.$ 500 million
Sovereign Bond issue of a five year tenure launched in
October 2007 fetched a tenure of 8¼%. These Bonds are
currently being traded in the secondary market at the
Sources expected the second
issue due to be launched this month to fetch a yield of
7% due to increased demand.
not out of the woods
Depositors of a troubled finance
company will have to wait a year to get their money
back, an official said on Tuesday.
Gamini Karunathilake, Chief
Executive Officer Merchant Bank of Sri Lanka PLC (M.B.S.L.),
addressing a seminar said that The Finance Company PLC (T.F.C.)
is not yet rehabilitated.
M.B.S.L. has taken over the
management of T.F.C., a troubled Ceylinco Group company.
M.B.S.L. Chairman Janaka
Ratnayake said that in “special” cases they will allow
depositors to withdraw their maturity proceeds. He
however assured that interest proceeds will be allowed
to be withdrawn. In a cost cutting measure, T.F.C.
employees whose salaries are above Rs. 20,000 will be
subject to pay cuts ranging from 1-15%, resulting in a
monthly saving of Rs. 2.3 million. T.F.C. has some 1,250
employees; down from the 1,500 employees it had before
the Golden Key crisis in November.
In a further cost cutting
measure, staff vehicles will be withdrawn and will be
replaced with travelling allowances, resulting in and
additional Rs. seven million monthly saving to the
T.F.C. has a Rs. 25 billion
deposit base from 100,000 depositors.
Kamal Yatawara, C.E.O. T.F.C.
told The Sunday Leader that before the run on the
company’s deposits set in, T.F.C. had a Rs.29 billion
The company suffered a Rs. 4.5
billion loss in its deposit base when panic set in.
Another reform was allowing
employees to rise up the ladder.
When Lalith Kotelawala was
chairman, he believed in the philosophy “employment for
life,” which prevented younger employees from going up
the ladder. That has now been removed, said Yatawara.
Kotelawala is currently under
remand custody over the Golden Key fraud.
Meanwhile Ratnayake said that
T.F.C. has obtained Rs. 400 million in new deposits and
an equivalent sum in recoveries.
No projects to lend
Two financial institutions have
stopped accepting deposits because “there is no one to
lend,” an official said on Tuesday.
Janaka Ratnayake, Chairman
Merchant Bank of Sri Lanka PLC (M.B.S.L.), whose company
operates Merchant Credit Ltd., and M.B.S.L. Savings Bank
(former Ceylinco Savings Bank) said at a seminar, “we
have a problem, there are no projects to lend, as such
we are not accepting any new deposits.”
Yields down 55 b.p.s.
The more popular Treasury (T)
Bonds of 1.2.13 maturity slipped by around 55 basis
points (b.p.s.) after Central Bank of Sri Lanka (C.B.S.L.)
lifted the ban on foreign investments in outstanding T
Bonds and Bills on Tuesday, to close the week at “10.75%
‘buy’ demand offers” in otherwise slack secondary market
trading, market sources told The Sunday Leader.
Meanwhile the U.S. dollar was
continuing to be defended at the Rs. 114/80 levels.
With the market experiencing
surplus liquidity, coupled with C.B.S.L.’s rejection of
primary auction bids from time to time, sources expected
these actions to bring down yields further in the new
week beginning tomorrow. (See also connected story found
elsewhere on this page)
To greater heights
The new records established by
the Colombo Stock Exchange (C.S.E.) on Friday, will soar
it to even greater heights in the week beginning
tomorrow, market sources told The Sunday Leader.
C.S.E.’s main price index, the
All Share Price Index (A.S.P.I.) reached its highest
ever point on Friday, closing the day at 3,018.01
points, surpassing its previous record of 3,016.4 points
recorded on February 13, 2007, the C.S.E. said.
The A.S.P.I. measures the
movement of share prices in all the listed
companies. The ASPI opened on
Friday at 2,997.6 The Milanka Price Index opened at
3,352.8 and closed at 3,394.8 moving up by 41.7 points
At the close of trading, the
total value of the C.S.E. (market capitalization)
surpassed all previous levels to reach an all time high
of Rs. 966.9 bn. A total turnover of Rs 89.2 bn. has
been recorded so far this year, with an average daily
turnover of Rs 495.6 mn.
The ASPI has recorded a 100.8%
growth this year and the MPI recorded a 108.1% growth,
making CSE the best performing stock market in Asia and
the 4th best performing stock market in the world
according to Bloomberg Newswire.
1.2 mn. illegal mobile phones
Some 1.2 million cellular phones
were imported illegally into the country last year,
causing a loss in government revenue, the B.o.I.
In a presentation made to I.M.F.
officers in Colombo last Thursday, the B.o.I. said that
the number of new cellular mobile phone subscribers
reported in 2008 were 3.1 million, of which number, the
figure of new cellular phones imported amounted to 1.9
million. “Hence the difference of 1.2 million is imputed
to be articles that have been imported through illegal
channels,” the B.o.I. said.
“This figure can be more as a
number of existing subscribers replace their old phones
with new phones which are not reflected in the above
equation,” the B.o.I. in a report made at this occasion
“If the seven million phones
currently in use are replaced by a new phone within a
period of five years, that would be equivalent to the
inclusion of an additional 1.4 million phones annually.
With an effective duty rate of 10% of C.I.F., the loss
of tax revenue estimated for 2.6 million (1.2 million +
1.4 million) illegal phones imported is estimated at Rs.
631 million,” the B.o.I. further said.
Capex down 3%
Government’s “Capital & Lending
minus Repayments” in the first seven months of the year
declined by 2.5% year on year (y.o.y.) to Rs. 142.6
billion and revenue by 3.5% y.o.y to Rs. 344.3 billion.
Current expenditure in the
period under review however increased by 24.7 % y.o.y.
to Rs. 498.9 billion, leading to a current account
deficit of Rs. 154.6 billion (3% of G.D.P.). When the
“Capital & Lending minus Repayments” expense is added
on, then the deficit widens to Rs. 297. 2 billion (6% of
The revenue target for the year
is Rs. 855 billion, of which 40.3% has been met by the
end of seven months. The “Capital & Lending minus
Repayments” target for the year is Rs. 368.2 billion, of
which target 38.7% has been met at the end of seven
Current expenditure target for
the year is Rs. 823.5 billion of which target 60.6% has
been met by the end of seven months, while the total
“Expenditure & Lending minus Repayments” target for the
year is Rs. 1,191.7 billion, of which target 53.8% has
already been met. (Source: Central Bank)
Debt up 20%
Total outstanding Government
debt year on year (Y.o.y.) increased by 20.4% to Rs.
3,947.6 billion as at end July 2009. This comprised a
domestic debt component of Rs. 2,442 million; a y.o.y.
increase of 29.5% and a foreign debt component of Rs.
1,505.7 billion, a y.o.y. increase of 8%.
Government’s debt ratio, i.e.
foreign vis-à-vis domestic as at end July 2009 stood at
38.1: 61.9.; same as at end June 2009. This ratio as at
end July 2008 was however 42.5: 57.5. Meanwhile total
outstanding Government debt month on month (m.o.m.)
increased by 1.1% as at end July 2009. This comprised a
1% increase in the domestic debt component and a 1.3%
increase in the foreign debt component, m.o.m. (Source:
Sri Lanka’s total tax rate as a
percentage of profit is 63.7%.
B.o.I. in a presentation made to
the I.M.F. last Thursday, quoting a recently released
World Bank (W.B.) report (“Ease of Doing Business 2009”)
said that in contrast countries like Singapore,
Malaysia, Thailand, Bangladesh, Indonesia and Vietnam,
their respective percentages were 27.9%, 34.5%, 37.8%,
39.5%, 37.3% and 40.1% respectively.
B.o.I. in a report submitted at
that occasion claimed that reducing corporate income tax
rates have been the most popular reform feature in
several tax regimes.
The report further said that
more than 60 economies have done this. Countries can
increase tax revenues by lowering rates and permitting
more businesses to comply with the more favourable
It also said that 60-70% of
foreign direct investment (F.D.I.) into the island are
chanelled into infrastructure development projects such
as power, telecoms, ports, hospitals and education. “The
value of these projects is Rs. 294,359 million; which
could be translated into a saving in government
expenditure,” it said.
The report further said that
though B.o.I. companies may import capital goods and
machinery duty free, they are subject to other levies.
Those levies such as P.A.L. and
N.B.T. in effect add upto an effective weighted duty
rate of 13.5%, said the B.o.I.
However in peer
countries/regions, these rates range from 0-8.5%, with
the exception of Mumbai, where it goes upto 19.44%.
It also said that the number of
B.o.I. companies currently in operation is 1,543.
Of those companies 601 at
present enjoy tax holidays.
Those organizations provide
employment to 450,000; of whom 300,000 are employed in
the manufacturing sector.
B.o.I. companies made U.S.$ 5.8
billion worth of exports last year of which 85%
comprised industrial exports.
Cumulative value of f.d.i. made
by B.o.I. companies since the establishment of that
regime in 1978 to date amount to U.S.$ 5,002 million of
which number, 60-70% are related to infrastructure
Prevailing disincentives for
f.d.i. investments according to that report were poor
country rankings, e.g., the W.B.’s recently released
“ease of doing business” report.
Other disincentives included the
unavailability of raw materials, particularly in the
case of the garment sector; high cost of electricity;
the requirement of 300 working days to obtain a permit
for mega projects; 214 working days required to receive
a construction permit; difficulty in getting credit;
high interest rates; delay in getting V.A.T. refunds;
high duties on cars which impact adversely in developing
executive grade positions resulting in a decline in
revenue from P.A.Y.E. taxes and Sri Lanka being a small
market comprising a population of 20 million.
“A country like Sri Lanka with
so many disincentives is compelled to give attractive
tax holidays to be competitive,” the report further
An unfinished hotel and an
abandoned golf course are that which greets the
inquiring visitor to Waters Edge Battaramulla, now being
promoted as a banquet destination.
A court order made a year ago
compelled the developer to hand over the property back
to the Government from which he had obtained the estate
for such development work, with the order extended to
the banning of playing golf in this over 200 acres of
land, on the grounds that it’s a water retention area.
Only the piling works had been
done on the proposed 502 room hotel to complement its
banquet hall and other facilities to make it attractive
for M.I.C.E. (Meetings, Incentives, Conventions and
Exhibitions) tourism when the developer was forced to
vacate the premises on that court order last October.
The present owner, the State
owned U.D.A., which is hard pressed for funds to
continue development work on this project, is also
finding it difficult to source an investor, either local
or foreign, to get on with the job, because of the
private sector’s latent fear of doing business with the
Also as a result of these
changes, the company’s earnings, which hit a peak of Rs.
58 million a month under private management, has now
declined by half to Rs. 27 million.
The initial court order directed
the developer to abandon the property altogether, but
after an appeal made by its employees, court in
December, restituted the clubhouse and banqueting
facility, but sans the golfing facility.
On the initial order, the
company had already refunded some Rs. nine million worth
of advanced bookings received for future wedding
receptions, prior to the receipt of the second court
order two months later.
The company, at its peak wedding
season, which has now turned out to be the December and
January months, as opposed to the traditional May-June
period, used to host some 35 weddings a month, which has
since declined by more than half to a mere 15, due to a
loss of confidence by the market, coupled with an
aversion to enter into the wedding market business with
a government run entity, despite the fact that the
facility is still operated like a private sector
organization, backed by a professional and autonomous
Whither fresh milk?
The open economy introduced by
the then J.R. Jayewardene Government in 1977 delivered a
kidney punch to Sri Lanka’s liquid milk production.
As a result, 80% of Sri Lanka’s
milk requirements, mainly in the form of powdered milk
are now imported, while only the balance 20% requirement
is met locally.
Director/C.E.O. C.I.C. Seeds (Pvt.) Ltd., told The
Sunday Leader that the reason for the ascent in milk
imports and descent in local milk production, post ’77
were due to the Government considering milk an essential
commodity and thereby reducing import duties and taxes
levied on it to encourage milk imports, which mainly
come in the form of powdered milk, and the other,
This action naturally had a
price, not least its impact on local milk production and
the attendant social and economic ramifications that
went with it.
But 32 years later, the
Government’s taxation policy, at least in the case of
milk imports appeared to have had changed, with this
imported commodity now being subjected to heavy taxes,
according to Jagath Bopege, Director Administration &
But this has not deterred the
stranglehold that powdered milk has over the country’s
In comparing and contrasting
India’s success in promoting liquid milk consumption and
that of Sri Lanka’s failure, though the present
Government is trying to rectify this anomaly,
Madawanarachchi said that the difference was that India
had or has a policy in promoting liquid milk, a policy
that was continuous, even if governments changed, which
sort of continuity Sri Lanka obviously lacks, with
policies changing, with the change of governments.
How be it, C.I.C.
Agribusinesses, C.I.C. Seeds’ parent company, has
recently invested in two Government dairy farms in
Batticaloa District, encompassing an area of 4,000 acres
for the promotion of value added dairy products, but not
necessarily liquid or fresh milk consumption, which,
according to Bopege is uneconomical due to the
availability of cheap milk imports, cheaper than locally
produced milk, hence the reason to promote the
consumption of value added dairy products as opposed to
liquid milk consumption.
In fact C.I.C. also has plans
to go in for powdered milk production, he said.
Bopege contended that as a
result of falling world market prices of powdered milk,
locally produced milk could not compete in the price
game, hence the reason for apparently throwing in the
towel in regard to the idea of retailing liquid milk.
One of the reasons for falling
commodity prices, not least powdered milk, is the global
recession, the worst since the Great Depression of 1929,
where supply has outstripped demand, due to the decline
in the latter, resulting in the contraction of prices.
But, in as much as the saying
goes, “all good things must come to an end,” the reverse
is also true, in that all bad things too should come to
And signs are that the world,
slowly but surely, is now seemingly coming out of the
Getting out of the recession
means that “supply” would once more call in the shots,
because it’s increased demand that would drive away an
economic depression or recession, and drive-up prices
In such a scenario it would once
again push-up international commodity prices, not least
imported powdered milk, thereby making investments in
local liquid milk consumption once more viable.
This reporter believes that the
thrust that companies like C.I.C. is giving for the
promotion of dairy development in the island, though at
present it’s focused on providing the market value added
dairy products (because that is where a better return is
currently), would result in a double boon to the
company, by it being in a position to capitalize on a
situation when world powdered milk prices once more
start to go up, to supply liquid milk to the market at a
more reasonable price, because of the infrastructure, by
then being seemingly ready.
This would also benefit the
dairy farmer outgrower system that C.I.C. has in mind to
develop, with a plan to net in some 4,000 of them from
The North and East (N&E) of this
country have been badly scarred by Sri Lanka’s 26 year
old terrorist war which only ended in May of this year.
Those two provinces, together
with Uva in the “south,” are the three most impoverished
provinces in the island, out of the country’s total nine
Governmental support therefore
is essential to encourage private sector companies to
invest in the N&E. In this regard, it may be considered
as a good move, Government’s decision to grant tax
holidays to companies investing in the N&E despite
yawning budget deficits, 7.7% of G.D.P. last year and in
the backdrop of a pledge made to the I.M.F. to reduce it
to 5% by 2011, a promise that helped the Government to
win a U.S.$ 2.6 billion standby arrangement from the
There are apparently several
other neglected Government dairy farms in the East. The
state must move rapidly to form public-private
partnerships similar to that which it has done with
C.I.C. to boost milk production in the country in regard
to the other farms as well, and also to provide job
openings in this mainly agrarian province. The
government lacks the capital and management skills to do
these things on its own, therefore it must not fight shy
in inveigling the private sector for such projects.
Another good thing is a
Government direction that 10% of bank credit should be
made available to the agriculture sector from this year,
though no punitive action has been imposed thus far on
those banks which don’t toe the line.
A welcome sign is the U.S.A.
coming forward to provide assistance to those indigenous
companies that want to provide jobs to the people in the
N&E with companies involved in dairy and agriculture
development as well as tourism (the East especially has
some of the country’s best beaches-ideal to promote the
island’s top market in the leisure sector, the “sun and
sand” tourist) standing a good chance of benefiting from
In the dairy sector, such
facilities should be made use of to import good milch
cows and technology, and inculcate good management
practices among farmers and companies alike, a point
stressed by Madawanarachchi, referring to the
agriculture sector as a whole, as being the need of the
Eastern Province Chief Minister
S. Chandrakanthan speaking at a function in Colombo
recently said that at one time the East met 30% of the
country’s milk requirements, which has since been
reduced to 11%. He however expected the province to
double its milk collection, now that peace has dawned in
the country, in another two years time.
So, despite Bopege’s seeming
cautiousness in regard to the future of liquid milk
consumption, good times are apparently once more ahead
for promoters of fresh milk consumption, not least the
Government, provided it plays its cards right and which
made the promotion of local fresh milk one of its
election promises in the 2005 presidential election.
Inspite of the temporary pall
caused by the current recession, which took everyone by
surprise, not lease the pundits, triggered by the
collapse of U.S. based Lehman Brothers, a financial
services provider with a global outreach, a little over
a year ago, good times are ahead for the local dairy
sector, once the dark clouds blow away.
Subsidised green credit
HSBC this month announced the
launch of Green Financing, the first product in Hong
Kong that finances the purchase of environmentally
friendly equipment for businesses and related
installation and renovation costs, at the HSBC Climate
Change Corporate Partnership Programme business forum.
Under Green Financing, customers
are encouraged to undertake capital investment in
projects that have a positive environmental impact. They
are able to enjoy the benefits of up to three months
interest rebate and an optional initial six-month
principal repayment moratorium for the loans.
Commercial Banking Head Albert
Chan said: “Through Green Financing, we are making an
effort to help our customers conduct their businesses in
a more responsible, sustainable manner.” In 2007 HSBC
launched Green Equipment Financing and has received
overwhelming response of more than H.K.$573 million in
loans approved to date.
AAI in Jaffna
With the new era of opportunity
that has dawned after concluding the war, Asian Alliance
Insurance PLC (AAI) successfully marked the entrance to
Jaffna by opening their Distribution Office in Stanley
AAI’s strategic expansion has
resulted in 20 branch offices in its Regional
Distribution Network. Jaffna, which was opened on
Tuesday (September 28) is the 21st addition to their
AAI has resourced this
Distribution Office with experienced staff supported by
well equipped I.C.T. to service their clientele.
Social Services Minister Douglas
Devananda was present at the opening ceremony along with
Jaffna Mayoress Mrs. Yogeeswary Patkunarajah.
Director/CEO Ramal G. Jasinghe and the Company’s senior
management were also present at the opening ceremony.
Devananda welcomed AAI to Jaffna.
He expressed his gratitude to the Company for the
support rendered to uplift the living standards of
citizens and also for creating employment
opportunities. He believed that AAI will be a benchmark
Jasinghe in his address said;
“We are proud to realize the promise we made to our
shareholders back in 2008 that AAI will seek and exploit
opportunities that peace brings by expanding AAI’s Credo
of Professionalism to the North and East of our
country. I’m optimistic about our move to Jaffna and
most importantly that AAI is one of the first companies
to contribute towards the rebuilding efforts of commerce
and improving the quality of life of the Jaffna people.”
Taxing income hits revenue
Increasing tax rates on income
(such as corporate and personal tax) has a negative
impact on government revenue, the B.o.I. said.
In a presentation made to I.M.F.
authorities in Colombo last Thursday, B.o.I. pointed out
that taxes on production and expenditure (such as V.A.T.,
excise tax and import duties) however play a vital role
in government revenue.
It said that last year’s Rs. 585
billion tax revenue comprised Rs. 126 billion from tax
income and Rs. 459 billion from taxes on production and
B.o.I. officers told I.M.F.
representatives that the estimated impact of increasing
the number of tax files from 400,000 to one million
would result in only Rs. 4-5 billion of additional
income to the Government.
Last year such files generated a
revenue of Rs. six billion. Total government revenue
last year was Rs. 655 billion.
“When taxes are high and
commensurate gains seem low, many businesses simply
choose to stay informal,” the report further said.
A recent study found that higher
tax rates are associated with less private investment
and fewer businesses. The analysis says that a 10%
increase in the effective corporate tax rate reduces the
investment to G.D.P. ratio by 2%.
In regard to the applicability
of corporate tax on the B.o.I. regime, the report said
that 450 B.o.I. projects have had completed the tax
holiday period (ranging upto a maximum of 15 years),
while 320 projects pay tax at a concessionary rate.
B.o.I. officers had further said
that 20% of the output from B.o.I. companies could be
sold to the domestic market subject to the payment of
all applicable levies and duties.
Significant number of workers,
especially those in the I.T. sector, middle and senior
management staff and expatriate workers are subjected to
They also said that 450,000
workers from their monthly earnings pay V.A.T. on
expenditure, realizing a revenue of 2.5-3.5% of G.D.P.
C.M.A. seminar on “Business
Strategies to Compete & Survive” will be held on
Thursday and Friday in Colombo.
The theme of the seminar is
“Business Strategies to Compete & Survive” conducted by
Dr Nachiket M. Vechalekar, Associate Dean P.G.P.,
IndSearch. Pune, India. Vechalekar is a Master of
Commerce, PhD and a Fellow Member of the Institute of
Cost & Work Accountants of India.
Residential training centre
Life insurance leader Ceylinco
Life has become the first company in its sector in Sri
Lanka to invest in a fully-equipped residential training
centre for company personnel.
Built at Uswetakeiyawa, the
55,000 square foot facility on 4.79 acres has three
conference halls with a seating capacity of 100, 40 and
25 respectively, 42 fully furnished bedrooms, a dining
area that can accommodate up to 80 people at a time, a
recreation area, swimming pool and an up-to-date
Originally intended to be a
retirement resort, the centre, ‘La Serena’ will be used
for the training of Ceylinco Life’s sales staff and
“Regular training and continuous
improvement programmes are of paramount importance in
the financial services sector, and a facility of this
nature will be a valuable asset to the company,”
Ceylinco Life Director Devaan Cooray said.
Ceylinco Life currently has a
nearly 5,000 sales force working out of 175 islandwide
branches. The company recently announced plans to
recruit upto another 1,700 people to its sales team by
The opening of the Residential
Training Centre was supported with the introduction of a
code of ethics and a grooming video for company staff
and sales personnel, Cooray said.
The life insurance market leader
for the past five years, Ceylinco Life recorded a 20.6 %
growth in the year ended December 31, 2008, 6.7
percentage points higher than the industry average and
increased its market share to nearly 35%. In contrast,
the second largest life insurer in the country witnessed
a 2.56% decline in its market share which fell to 19.05%
at end 2008, giving Ceylinco Life a lead of nearly 16
percentage points in market share over its closest
Some foreign market forces may
have not liked Raigam entering the local salt market,
said a press release.
Also, local businesses like
Harischandra, M.D.K. and Raigam encouraged people to eat
rice flour products such as string hoppers and pittu by
introducing user friendly rice flour products.
When rice is consumed that money
goes to the local producer. “The money we spend to buy
bread from imported flour derives no benefit to the
local market.” Raigam as a local company is trying to
put in to the minds of “our people the importance of
local businesses, especially when facing an economic
The existence of local
companies is the need of the day. In this regard the
role played by Maubima Lanka is praiseworthy.
Under the concept Raigam-The
“Real” Sri Lankan, it is this responsibility that is
being carried out for which The Kingdom of Raigam, as a
Sri Lankan Corporate entity, has an obligation and a
“We also pioneered the
manufacture of table salt that was “second to none” in
quality and saving the ignominy of having to import salt
despite having the sea right round us.
Sanitary towels that were sold
under so many foreign names were manufactured here under
the Aarya label to cater to the local market.
Raigam has so far won numerous
accolades and awards in its colourful journey. In 2006,
it was awarded the Entrpreneur of the year and won the
National Productivity Award.
All products are ISO 22000
certified. A press conference in this connection was
held recently with the participation of Dr. Ravi
Liyanage (Chairman/C.E.O.), Deputy Chairman Kishan
Theodore, Director Finance Prashantha Nanayakkara and
G.M. Finance Chaminda Perera.
Institute of Chartered
Accountants of Sri Lanka (I.C.A.S.L.) Annual Convocation
was held recently at the BMICH under the patronage of
Trade Minister Bandula Gunawardena Minister.
Guest of honour was Sri Lanka
Telecom Chairperson Ms. Leisha de Silva Chandrasena. At
this occasion I.C.A.S.L. recognized and awarded those
who achieved the notable qualifications of Associated
Chartered Accountant (A.C.A.), Fellowship Chartered
Accountant (F.C.A.) and Master of Business
Administration (M.B.A.) along with other Post Graduate
Addressing this occasion,
I.C.A.S.L. President Nishan Fernando lauded the tireless
efforts of those who have achieved the reputed I.C.A.S.L.
Speaking further he emphasized
on the responsibility one should carry with him along
with the qualification and articulated accountants’
obligations towards the public.
Two hundred and thirty three
scholars achieved the A.C.A. qualification at this event
which entails both academic and practical training
period that nurtures the capabilities and competency of
The duration one has to undergo
to gain this qualification is almost three to four
years, including the practical training period. Fifty
five of those who had qualified for F.C.A., also
received their awards.
The F.C.A. qualification is
considered as the pinnacle of accountancy education and
accountants with an A.C.A. qualification have to first
undergo nearly five years of public practice along with
the completion of 120 C.P.D. hours to receive this
qualification. Apart from the above main qualifications,
55 scholars who met the successful completion of the
M.B.A. conducted by I.C.A.S.L. were also recognized and
I.C.A.S.L. Vice President
Sujeewa Mudalige in his vote of thanks congratulated
those who received awards for their performance.
Best schools’ accounts
D.S. Senanayake College Colombo
won the Best Annual Report and Accounts Competition of
National Schools for 2009 organized by the Association
of Accounting Technicians of Sri Lanka (A.A.T.S.L.) in
collaboration with the Education Ministry. One hundred
and thirty six national schools participated in this
Sri Lankan head
Dr. Mahesha Ranasoma has taken
over as Managing Director/Country Chairman Shell Gas
Lanka Ltd from this month.
This is the first time that
Shell’s LPG business in Sri Lanka will be steered by a
Sri Lankan, thus making the company a 100% locally
managed outfit. Ranasoma returned ‘home’ after
completing his assignment as General Manager Shell’s LPG
Business in Vietnam.He succeeds Hassan Madani, the last
expatriate to serve as Managing Director & Country
Chairman for five years.
Allianz Lanka opened yet another
branch, this time at Kirusa Road, Gampaha.
The new branch is the fourth
Allianz branch to be opened within the short span of a
few months. Gampaha Mayor Eranga Senanayake was Guest
of Honour and Allianz C.E.O. Mrs Surekha Alles, the
Chief Guest at the inauguration.
“The opening of our fourth
branch within such a short time shows our growth and
progress. Since beginning operations in Sri Lanka in
2005, Allianz has set many benchmarks in the insurance
industry. Even without any captive insurance we have
become the fastest growing insurance company in Sri
Lanka today, with not only substantial growth in our
topline but also in our bottom line,” Alles in her
welcome address said.
She outlined Allianz global’s
financial strength, saying that the financial services
conglomerate’s primary mission is to build the world’s
strongest financial community. Allianz is on the way to
achieving this mission. Despite the difficult global
economic situation, the company continues to maintain
its AA rating from rating agency, Standard &Poor’s.
The advent of Allianz to Sri
Lanka has brought with it the multinational insurer’s
global knowledge, expertise, technology and knowhow, in
addition to its reinsurance capacity. Allianz’s presence
in Gampaha enables customers in the region to enjoy the
same benefits, facilities and financial security
provided to customers in Colombo.
Senanayake said he was pleased
that a multinational insurer had chosen Gampaha to set
up business. He said he would provide his support to
ensure that the people of his township and its environs
benefited from Allianz’s presence.
Allianz Gampaha operates under
the aegis of Brand Manager Niroshan Jayasinghe and is
serviced by an experienced sales team, front office and
underwriting professionals trained to Allianz standards
of customer service and underwriting.
Royal Park Residence Hotel (R.P.R.H.),
a boutique styled, Sri Lankan managed hotel in Banani, a
12 minute drive from Dhaka International Airport, is the
only I.S.O. & H.A.C.C.P. certified hotel in
Business travellers will be
provided with complimentary airport transfers. For those
travelling with laptops, the property has made available
high speed wi-fi Internet connectivity in the entire
hotel, be it rooms, dining spaces, terraces or lounges.
R.P.R.H. is also equipped with a high capacity,
automatic prime generator to ensure uninterrupted stream
of power supply.
Dining facilities ence include a
choice of International cuisine with a complimentary
daily breakfast buffet. These are in addition to a host
of other menus ranging from vegetarian, a la carte,
snacks and in-room dining. The kitchen is headed by
Rajeeva Mendis, an award winning, gold medalist.
Recreational facilities include
a swimming pool and gym equipped with a variety of
exercise machines fitted with individual L.C.D. T.V.
screens for personalized entertainment whilst
exercising. A host of treatments at the property’s
Balinese style Spa with steam bath & Sauna are also on
Janashakthi Insurance PLC which
announced the highest P.A.T. among the top five quoted
insurance companies in 2009 first half, celebrated its
15th anniversary recently with major expansion in the
North and East (N&E), providing employment to over 1,000
In line with President Mahinda
Rajapakse’s “Uthuru Wasanthaya” vision to bring the N&E
into mainstream economic activity, Janashakthi recently
opened two offices in Chavakachcheri and Chunnakam.
The new offices will generate
employment to nearly 200 persons and thus total about
1,000 in the entire N&E with further expansion.
These branches are geared to
take Janashakthi’s products and services to the people
of the N&E.
Janashakthi Managing Director
Prakash Schaffter said, “We are happy
with the prospect of expanding
in the N&E to celebrate our 15th
anniversary. This is, in fact,
part of a long term plan to leverage from our existing
branches in the future and venture even further.
Insurance benefits are something which should touch the
lives of everyone, irrespective of caste and creed and
this is precisely what we are doing”.
Janashakthi currently enjoys a
reputation as being a fast growing network with over 100
branches islandwide. With existing offices in Batticaloa,
Kalmunai, Akkaraipattu, Jaffna, Nelliyadi, Kantalai,
Trincomalee, Mannar, Vavuniya, Kilinochchi and more in
“We are proud and happy to have
been of service to the nation during these past 15
years. With our strong foundation and commitment, our
performance has enabled us to build confidence among the
public and thus consolidate our position as a leading
player in the insurance industry”, he added.
As part of the celebrations to
mark its 15th anniversary, Janashakthi held a Mid-Year
Awards Ceremony recently in the Maldives. Hailed
as a first in Sri Lanka’s
insurance industry, over 60 staff members were flown to
Malé to attend the awards ceremony and gala dinner on
what has been described as an all-expenses-paid “gala
weekend of reward and recognition”.
Sampath Bank began operations of
their 121st branch at “Sellam” Building, Main Road,
A record crowd that gathered at
the premises to make deposits at the new branch
heralding the era of peace, prosperity and harmony along
with new age banking technology.
Electronically linked with the
islandwide branch network, the new branch is equipped
with all modern-day banking technologies to serve the
community in the Chenkalady and surrounding areas of
Karadiyanaru, Unichchi, Sittandy, Kommathurai,
Kaluwankerni and such like.
Even the savings/ deposits,
pawning and loan services are tailor made to ensure the
“best deal” for the customer. Higher interest rates,
double interest schemes, interest payment at the time of
deposit-without having to wait till the end of the fixed
term, are some of the highlights of the flexible and
value added financial solutions offered by Sampath Bank.
The trade and foreign remittance
services proffered by the bank too are designed to offer
“better” customer convenience and satisfaction to their
The Sampath team is there to
provide financial advice on the products and services
“best” suited for each customer’s individual needs, may
it be a personal or trade financial requirement.
Sampath Bank is keen to be an
active partner in the community development of the area,
as the bank believes in investing in their customers,
who have stood by them. The bank hopes to undertake
suitable projects to help develop the agricultural,
fisheries and other industries in the locality, which
are the main livelihoods of the people. Special
attention would be given to uplift the cottage
industries and develop them into profitable businesses.
15 year vision
3M Lanka (Pvt.) Ltd, the Sri
Lankan subsidiary of the USD 25.3 billion 3M Company,
recently celebrated 15 years of operation in Sri Lanka
and announced that its focus on innovation will continue
to drive growth for its operations in Sri Lanka. The
company also said that sharing market-focused solutions
with customers would be the key to accelerating growth
and increasing local market penetration.
The ‘market focus’ approach has
long been a major priority of 3M’s operations in Sri
Lanka over the past 15 years, bringing alive the ‘Big
3M’ vision to customers.
Speaking to The Sunday Leader
about their 15th year of operation in Sri Lanka and to
announce future plans, 3M Lanka (Pvt.) Ltd., Managing
Director Ajay Nanavati said that 3M Lanka has reached a
major milestone in its history.
Nanavati said, “I have had the
privilege of being involved in 3M Lanka right from its
early days and am delighted to see the progress we have
made thus far. Though the last few years have been
challenging to both the country and the company, the
clouds have now cleared and the future looks bright. 3M
will continue its commitment to participating in and
contributing towards the country’s economic growth and
is looking forward to the next 15 years.”
A recognised leader in research
and development, 3M produces thousands of innovative
products for dozens of diverse markets. 3M’s core
strengths is applying its more than 40 distinct
technology platforms-often in combination to a wide
array of customer needs. The company boasts of USD 25
billion in global sales and employs 79,000 in over 60
3M Lanka General Manager Suren
R. Rajanathan said, “We have envisioned our way through
innovation and creativity towards giving opportunities
to our customers to experience the ‘3M Magic’ which has
helped them to remain competitive in the business world.
With the recent development in the country’s economy, we
continue to see ample business opportunities for 3M in
every single industry we are represented in. We plan on
accelerating our efforts to reach out to these markets
with the support of our business partners.” He added
that 3M Lanka’s endeavour has been on meeting local
market needs and towards this, the company has leveraged
its 45 technology platforms to cater to the needs of
various sectors and businesses.
Speaking about the ‘Big 3M’
vision, Nanavati said that 3M Lanka plans to focus on a
market centric approach for bringing alive the ‘Big 3M’
vision to the customer. He said, “This initiative is in
keeping with an expressed need by customers to reduce
and consolidate its supplier base. 3M is positioned to
respond to this need as a result of its product depth
and multitude of solutions. Through this approach we aim
to bring together the various
divisions/products/technologies that can benefit a
singular customer market.”
Central Finance Company PLC
(C.F.) opened their third Micro Finance Field Office in
Nugathalawa village, Keppitipola. The Field Office was
opened by C.F.’s Senior Manager (Micro Finance) Gamini
Yapa, together with Regional Manager Gamini Wijeratna
and Bandarawela Branch Manager W.S.P. Chandimal.
An awareness programme for the
villagers started soon after at the village temple. The
Company plans to grant loans for Agriculture, Livestock
and other cottage industries under “Navodya” Micro
Finance loan scheme and also promote the savings habit
In addition group loans will be
granted exclusively for women. The Company also plans to
launch an Environmental Protection scheme at grassroots
level through the loan recipients and a sapling was
planted to mark the occasion.
The Grama Sewakas of adjoining
villages and about 100 villagers attended the programme.
Savings pass books were also distributed to the
respective accountholders during the programme.
Brown & Company PLC established
its first Regional Centre in Ampara recently.
Group Managing Director/CEO
Murali Prakash said, “The Centre will cater to sectors
such as Agriculture, Construction & Office equipment
which we see as potential growth segments in the East.”
Browns Retail General Manager
Panduka Weerasinghe said, “There will be a maintenance &
repair centre for tractors & harvesters together with a
“Power Mart” for battery operation, which markets Exide
brand automotive motorcycle batteries and other battery
accessories available at the same location.” A
“Battmobile” operation would also be servicing customers
whose vehicles need to be mobilized & batteries
replaced. Browns has an over 70% market share in
tractors through its 2 & 4 wheel brands such as Massey
Ferguson, TAFE, Sifang & Yongtuo. Browns also markets
the Lovol combined harvester.The Company plans to
establish five more regional centres covering the North,
East and Central Provinces in the future.
Arpitec has introduced a new
100% food-grade stainless steel water pumps manufactured
The new Arpitec water pump is
built from ‘Number 306’ stainless steel, approved by the
US Food and Drug Administration for uses related to
human consumption, instead of the brass that is
allegedly commonly used in water pumps currently on the
After some use, brass impellers,
which can contain lead, may undergo a chemical reaction
and lead may leach into the water, possibly leading to
alleged lead poisoning.
Arpitec pump also allegedly uses
the lowest amount of electricity, leading to cheaper
energy bills and less strain on the environment.
Harcourts (Pvt) Ltd, a leading
pharmaceutical group hosted 170 doctors of the
Independent Medical Practitioners Association (I.M.P.A.)
for a C.M.E. programme in Colombo recently.
Endocrinologist Dr. Uditha
Bulugahapitiya made a presentation on “Management of
Diabetic Complications” at this event.
I.M.P.A. Colombo and Western
Chapter President Dr. Sydney Jayasooriya welcomed the
gathering and introduced the speaker.
Harcourts group Chairman Ahamed
Rheyas recalled the long association of I.M.P.A. members
A commemorative plaque as a
token of appreciation was presented to Bulugahapitiya by
World Vision Senior Accountant
Angelino Kulendran was the winner of the CIMA Technical
Paper Competition 2009.
His paper was on ‘Commitment to
sustainable business in Sri Lanka’.
Stax Inc. Colombo Senior HR
Officer Lavannie Selvanayagam was adjudged the first
runner-up for her paper on ‘Generating Value through
Human Capital in Times of Turbulence’ and Millennium IT
Business Analyst Sabrina Sourjah was adjudged the second
runner-up for her paper on ‘The Impact of Global
Financial Crisis on Sri Lankan Economy.’
CIMA Technical Paper Competition
is an annual event organized by the Sri Lanka Division
to promote CIMA Graduates professional development,
equipping them with cutting edge knowledge to keep
abreast with changing dynamics of the corporate.
The competition provides an
opportunity to local members and passed finalists to
display their analytical capability, technical skills
and ability to apply various principles and techniques
in practice by researching and submitting a paper on a
cutting edge topic relevant to business.
The 2009 competition ran from
February to May providing the contributors a three month
window to submit a “quality” paper on a selected topic.
This year’s topics focused on areas of sustainability,
fair value accounting, corporate governance, global
financial crisis, human capital, risks and shareholder
Kulendran sharing his views on
participating in the competition said, “I would rate the
Technical Paper Competition among the best of its
service offered to members. This competition has helped
me discover my talent in analytical writing. Selecting
the most suitable topic among the given options -
Sustainability of Sri Lankan Businesses, gives me
satisfaction of being able to research on an emerging
issue in Sri Lanka.
Preparing for this competition
provided me the opportunity to read widely, interview
academics and practitioners. Preparing a winning article
was a challenge and at one point I even had to
reconsider whether I should continue. I am glad I
completed the paper, for all what I learned in the whole
” The papers were assessed and
the winners adjudged by a judges panel moderated by Dr
G.C.B. Wijeyesinghe and comprised Dr. Arul
Sivagananathan, Manil Jayesinghe, Sutheash
Balasubramaniam and Dr Uditha Liyanage.
Wijeyesinghe said, “I was
privileged to be the moderator of the panel of judges.
The standard achieved by the participants especially in
research and analytical skills was high.
This augurs well for the
professional development in the future. I trust this
competition will be continued and it is useful for the
development of the profession.”
At Point Pedro
Hatton National Bank (H.N.B.),
the premier private sector commercial bank opened its
180th customer centre in Point Pedro recently. This is
the 6th HNB customer centre in the Jaffna peninsula.
It was opened by H.N.B. Managing
Director/C.E.O. Rajendra Theagarajah (Chief Guest),
Marketing & Retail Banking Deputy General Manager (D.G.M.)
Chandula Abeywickrema, Network Management D.G.M. Mrs
Crysanthi Thambiah and Northern Region Senior Regional
Manager A. V. Beadle, in the presence of government
officials, local businessmen and a large number of
customers. H.N.B. Point Pedro Customer Centre offers a
range of facilities from savings and current accounts,
import/export loans, Singithi (minor savings accounts),
Shanthi home loans, financing under Gami Pubuduwa
scheme, credit cards, N.R.F.C./R.F.C. accounts, leasing
facilities, pawning and such like. H.N.B. drives on the
cutting-edge of technology with an islandwide A.T.M.
network, online banking and tele-banking facilities.
Diamonds are for ever
Unimo Enterprises Ltd., a United
Motors Lanka PLC subsidiary, rewarded its top-performing
dealers with diamonds at a gala ceremony held in Colombo
The recognitions were made at
Unimo’s annual dealer convention for 2008/09. The
following dealers were the recipients of the diamonds: N
& N Enterprises. Universal Tyre Services (Pvt) Ltd., U &
H Wheel Service (Pvt) Ltd. and Jayantha Traders.
While Unimo’s last dealer
convention saw the top dealers awarded with gold, this
time the diamond rewards were accompanied by tokens of
appreciation for the dealership managers as well. They
were: Chandranath Perera (U&H Wheel Service), Ranjith
Ratnasooriya (Universal Tyre Service), Paul Joseph (Tyre
Zone), Aslam Jeffrey (N & N Enterprises) and Prasanna
Fernando (Jayantha Traders).
The company also rewarded their
spouses with diamonds.
In addition, this dealer
convention also saw the introduction of consolation
prizes to three more dealers which included spilt type
air conditioning system and desktop computers.
This function was attended by
Yokohama Japan General Manager (Asia Representative
Office) Soichiro Yamaji.
Women to the fore
Two women won the top prizes in
the Caltex Good Driving contest in Gampaha and were
rewarded with insurance policies worth Rs. one million
and Rs. 500,000 each recently.
They were Nilanthi Rajakaruna
and Sunethra Udayangani respectively. Y L Isupali who
came third won an insurance policy worth Rs. 250,000.
The winners were also presented with hotel discount
vouchers by Chevron Lubricants Lanka PLC Regional Sales
Manager Sarath Gunasekara.
Can do without I.M.F.
We have shown that it is
possible for us to do without the IMF loan.
And in a way, the fact that it
was delayed was an eye-opener for everyone. So I think
it was a good thing that it happened that way, because
within a period of one and a half months our reserves
went up by 50%,” Central Bank of Sri Lanka (C.B.S.L.)
Governor Nivard Cabraal told Benchmark recently.
Commenting on how the Government
and C.B.S.L. propose to pay back the loan, he told the
show’s Special Correspondent Ms. Savithri Rodrigo that
“with that strength and with the new inflows coming in
I.M.F., we will have new
reserves built up. But over a period of time, what we
will be doing is building up our reserves further. Then
thismoney will actually be not necessary at all and we
will just repay it.
Repayment is due over a period
of four years, starting from 2012 and it is coming out
of the bank’s reserves which would have built up to a
large amount by then.”
Discussing the I.M.F.’s recent
comment that the Government has ambitious plans to
restructure fiscal and external liquidity Cabraal said:
“Government’s ambitious plan was not described as such.
If you look at the President’s budget speech in November
2008 you will see that all these figures are there; this
is nothing new. It is not that the IMF has given it to
us or that we have adjusted it to suit the IMF-everything
is there in the budget.”
Cabraal added: “So, if the
budget was passed and nobody had qualms about these
figures, why are they having any now? This is an
ambitious programme and shows that there is some
discipline being brought into the economy which was
actually there for a long time. We will give that
strength as well as confidence to the business community
and others that we are moving towards a good path. And
that is the message that the I.M.F. is also giving.”
Asked what is being implemented,
Cabraal said that the bank was now in the process of
relaxing its tight monetary policy. He noted: “ I.M.F.
is also quite comfortable with that. They had a plan
which they suggested to us in 2008. According to that
plan, they said inflation would come down to 20% by
2011. We have brought it down to 1% by 2009. So,
obviously, they think that we have got something right.”
Touching on policies and
measures that are being considered in the near term to
curb wasteful public expenditure, he pointed out that
C.B.S.L. was concentrating on the overall macro picture.
“If we get into every detail, I don’t think we can do
our job right. We are looking at a 7% budget deficit. In
so doing there are certain adjustments that the
Government’s other agencies and organisations will have
to make. We will advise the Government if we see any
risk of that not being achieved,” he asserted.
Cyber Concepts (Pvt.) Ltd., was
recently awarded the I.S.O. 9001:2008 Quality Management
Certification by Det Norske Veritas (D.N.V.) B.V,
Netherlands, thus becoming the first Sri Lankan software
and web solutions company to obtain this certification.
Technology Agency of Sri Lanka (.IC.T.A.) selected Cyber
Concepts from several other competing companies and
funded 75% of the certification cost under the ST13-
World Bank funded Company Quality Certification
Cyber Concepts C.E.O. chartered
engineer Ravi Rajapathirane said that the company will
urther focus on developing quality software for the
local industry where the customisation of the product
will have an advantage over imported software.
“We will help save foreign
exchange (forex) by winning the confidence of the local
industrialists, encouraging them to use Sri Lankan
software over the more expensive foreign imports”.
The Company’s development team
is led by Chief Software Architect Ms. Krishnajina
Rajapathiarne who has worked over 20 years in the IT
industry for multinational companies including UniLever
and PriceWaterHouseCoopers. The team consists of young
software professionals mostly graduates from Sri Lankan
As past of its corporate social
responsibility to the local community, Cyber Concepts
affords opportunities to young local undergraduates to
work in its development facility and thus gain industry
experience. Cyber Concepts is registered under the
Export Development Board as a Software and Web Solutions
Provider for overseas markets earning forex for the
country from overseas networks such as U.S.A., Canada,
U.K. and Germany.