G.o.S.L’s vacillation on C.E.P.A. blamed

Fall in Sri Lanka’s exports to India in the first six months of the year was attributed to the non signing of the Comprehensive Economic Partnership Agreement (C.E.P.A.) by the Government of Sri Lanka (G.o.S.L.) and not due to the global recession, alleged an official speaking on the grounds of anonymity to The Sunday Leader.

He made these comments in the backdrop of Indian High Commission’s Counsellor (Economic & Commercial) Santosh Jha’s claim that the steep drop in trade between the two countries was not due to the global recession, but due to other reasons, the causes of which are currently being examined,said Jha.

President Mahinda Rajapaksa was about to sign the C.E.P.A. with Indian Premier Manmohan Singh at the S.A.A.R.C. summit held in Colombo in August 2008, but backed down at the 11th hour due to pressure from certain local business quarters who alleged that C.E.P.A. favoured India.

Jha, speaking at a seminar in Colombo on Wednesday   said that trade between the two countries in the first six months of the year fell by 35% year on year (y.o.y.) in U.S. dollar terms, exports from India to Sri Lanka by between 35-36% and exports from Sri Lanka to India at a much higher rate, the percentage of which he was however unable to quantify.

Jha said that since the signing of the Indo-Lanka Free Trade Agreement (I.L.F.T.A.) in 2000, trade between the two countries had grown by 6-7 times, till this year’s aberration. Meanwhile the source said that the reason for the drop in Sri Lanka’s exports to India was allegedly due to G.o.S.L.’s reluctance to broaden the scope of the I.L.F.T.A. to a C.E.P.A., that would have had, other than the trade in goods, also encompassed Investments and Services as well.

C.E.P.A. would also have had relaxed the local value added requirement needed in regard to certain exports to India, enabling some 400 additional items to access the Indian market, he said. It would have had brought down the 35% local value added requirement needed for those items to enjoy duty concessions under the present I.L.F.T.A., to 30% under the proposed C.E.P.A., thus enabling entry into the vast Indian market.

C.E.P.A. also has laboratory recognition, meaning that certain items that required to be passed for testing could have had got such testing certificates from locally accredited labs rather than from Indian labs as the case now is, thereby being able to enter the Indian market without any hassle.

There was also room in C.E.P.A. to broaden the Customs classification favouring Sri Lankan exports, the source alleged.

India is Sri Lanka’s biggest trading partner, with exports from India to Sri Lanka amounting to U.S.$ 2.8 billion last year, while the balance, in a trading portfolio valued at U.S.$ 3.26 billion, being exports from Sri Lanka to India.

India is also Sri Lanka’s largest import market and its 6th largest export market.

Sri Lanka’ exports to India reached its zenith in 2005, when the island exported U.S.$ 588 million worth of goods to India.

Much of Sri Lanka’s export growth at that time was lead by Vanaspathi and scrap metal-mainly copper related, which products now are out of the equation mainly because as far as the former is concerned, India’s import duty on vegetable oils, a key ingredient required for the manufacture of Vanaspathi has since come down to zero, thereby making Vanaspathi exports from Sri Lanka uncompetitive, while copper related metal exports has been virtually banned from Sri Lanka as such products were in need by certain local industries, especially those related to brassware.

Most of India’s exports to Sri Lanka are made on a non preferential basis, meaning that they don’t qualify for duty concessions under the I.L.F.T.A.  Sri Lanka’s high import tariff structure is blamed for the fall in imports from India in the period under review.

reluctant lenders

With market focus on the outcome of Tuesday’s Monetary Policy review and expectations of a further rate cut, Friday’s secondary market trading saw Treasury (T) Bond yields marginally move up by six basis points due to profit taking, market sources told The Sunday Leader.

Meanwhile last week’s T Bill primary auction saw yields fall by 22, 53 and 61 basis points to 9.26%, 10.10% and 10.48% for Bills of 91, 182 and 364 day maturities respectively compared with the previous week’s average yields.

However banks are still reluctant to lend, the sources said, adding that there is no one to lend.

But others said that banks are concentrating more on recoveries than on lending. They further said that though prime lending rates have gone down, i.e. the lending rates to banks’ top customers, lending rates to others have however had hardly changed.

Outdated facts

The main speaker at a function organized by an accountancy body had some outdated economic data on Sri Lanka.

J.D. Agarwal, Professor of Finance and Founder Chairman Indian Institute of Finance, New Delhi, speaking at the inauguration of the CIMA Business Forum in Colombo on Monday said that Sri Lanka’s economy grew by 7% and unemployment was on the decline.

Sri Lanka’s economy grew by 7.4% in 2006, 6.8% in 2007 and 6% in 2008. Central Bank of Sri Lanka forecasts that the economy will grow by between 3.5-4.5% this year.

The country’s unemployment which was on the descent last year has however been creeping up this year due to the global recession.

This has hit the export sector leading to thousands being made redundant, coupled with the crash of the Golden Key Credit Card Company which also resulted in the loss of a few thousand jobs.

1,000 internet accounts go dead

Friday’s “mystery” power outage had a negative effect on the stock market which saw 1,000 internet accounts not being able to log in as a result, market sources told The Sunday Leader.

Amidst slack foreign activity, the benchmark A.S.P.I. fell by 5.39 points over that of Thursday’s close to finish the week at 3,115.34; while the more sensitive M.P.I. fell by 23.46 points to end the week at 3,504.24 points.

Turnover was Rs. 491.3 million compared to the previous day’s Rs. 1.6 billion mark.

Market sources were divided in regard to the bourse’s direction in the week beginning tomorrow.

While some said that due to prices being dearer, the ascent of the bourse would be much slower, others however said that the bourse is well on the way to hit the 4,000 mark.

Case for competition

A case in point for the privatization or to allow competition among utility providers is Friday’s all island power failure coupled with the suspension of water services to several areas, also on the same day.

These suspensions, made virtually unannounced, apart from the inconvenience caused to households, also caused disruption to work in several offices, which did not have recourse to power generators, resulting in productivity and economic losses.

In the bad old days, when telecoms was a monopoly of the State, citizens had to grin and bear with the attendant inefficiencies and evils that came with a government monopoly. But this changed with at least the semi privatization of the telecoms sector, coupled with competition being allowed to enter this vital sector of the economy.

These are paid services and not services provided free to the consumer.

As such is it not a fundamental right for a consumer of this country to have recourse to this service anytime and anywhere?

Is it right for him to suffer for the sins of the State because of its inefficiencies and be deprived of such services?

Cannot the success of the telecoms sector be replicated in the power and water sectors, if such sectors are also opened-up for semi privatization or competition?

City at war 

Road closures that the city is still subjected to when V.I.P.s and their escort vehicles move around, give the impression that the country is still at war.

On Monday, close to 3 p.m., when yours truly was walking to catch a bus back to office, to the bus stand opposite the Regal theatre after an assignment at Cinnamon Lakeside, he witnessed such a spectacle.

A C.T.B. bus was parked across the road near the Regal theatre, preventing traffic moving from Sir Chittampalam A. Gardiner Mawatha to Fort. Scores of vehicles were stranded as a result, forming a long line.

Though this reporter was allowed to walk to the bus stand unhindered there were no buses, because traffic moving in from the opposite direction was also seemingly obstructed. Commuters were there in their numbers at the bus halt.

A little while later the V.I.P. motorcade drove in, down D.R.Wijewardene Mawatha, after which the free flow of traffic, to and fro, was allowed.

Flushed with dollars 

Banks are compelled to sell their U.S. dollars to the Central Bank at Rs. 114.80 per unit because there are no buyers in the market, sources told The Sunday Leader.

Exporters are causing pressure on the rupee to appreciate by encashing their dollars, they said. Further, foreign purchases of government securities have had also made the market flushed  with dollars, with the Central Bank being the sole buyer of foreign exchange from the market, they said.

Exporting computers 

A Dubai based computer hardware manufacturing company plans to make Sri Lanka the gateway to South Asia, other than India.

Shafraz Hamzadeen,  Group Chief Executive EZY Holdings Sri Lanka told reporters on Monday that they have a separate manufacturing plant in India to handle that country’s requirement of computers.

The company which has invested U.S.$ four million in Sri Lanka began operations in August, with computers manufactured in their plant in Ratmalana, some 600 of them, shipped to Pakistan last month, and a similar number due to be shipped this month as well, with the value of each of those shipments being U.S.$ 150,000.

Hamzadeen plans to up this regular order to 5,000 by May 2010.

Additionally he plans to export computers to Bangladesh as well.

The company supplies the local market with between 1,300-1,400 computers a month. He said that Sri Lanka’s annual requirement of computers, including those bought second hand, numbered 250,000.

EZY which was formerly based in Singapore, relocated to Dubai for tax purposes, said Hamzadeen.

E.C. may not act on Panel’s report 

The European Commission (E.C.) will not necessarily base their recommendations on the findings made by an expert panel on the G.S.P. + issue, a diplomat told The Sunday Leader on Monday.

Bernard Savage, E.C.’s Head of Delegation to Sri Lanka and the Maldives however said that it would have had been made easier if the Government had cooperated with that panel on their investigations in connection with Sri Lanka’s eligibility to continue to enjoy the G.S.P. + concession.  The Government did not work with that panel on the grounds that they did not want the military investigated on alleged war crimes.

The G.S.P. + facility that provides an opening for 14 beneficiary countries, including that of Sri Lanka, to export several thousands of goods to the E.U. region on a duty free basis, is intrinsically linked to the beneficiary countries’ observance of U.N. conventions governing human rights (h.r.) and labour laws. The E.U. panel has faulted the Government of the former.

Much of the alleged h.r. abuse levelled against the Government is linked to its prosecution of the war against the L.T.T.E. which it successfully fought to a finish in May. Savage however said that there is no way of the E.C./  E.U. member states giving Sri Lanka a second chance of “putting its house in order” like what happened last year, in the event they are unhappy over the island’s performance on the h.r. issue this time.

“If E.C.’s recommendations are that Sri Lanka should not enjoy the G.S.P. + concession then that’s final,” he said.

 Savage further said that the E.C.’s review process on the G.S.P. + issue will be completed this month, after which it will be referred to the 27 member states for a vote based on those recommendations.

 The member states will make known their positions by a vote by December.

 Savage said that in general member states don’t go against the recommendations made by the E.C.

In the event their recommendations are that the island should forfeit the G.S.P. + facility, Sri Lanka will however be given time till June 2010 to export those goods on a duty free basis, after which the ban will finally become law, said Savage.

The country was given the opportunity of continuing to enjoy the G.S.P. + concession for a three year period beginning from this year on the grounds that it be investigated by the aforesaid panel on the country’s alleged h.r. abuse issue.

 “We want Sri Lanka to continue to enjoy the G.S.P. + facility,” Savage, addressing a CIMA function on Monday said.

“Our objective is to increase cooperation and engagement in Sri Lanka in the future as we have done in the past,” he told CIMA invitees.

E.U. will continue to fund development works in the North and East, added Savage.

E.C. is Sri Lanka’s single biggest market, with garments, Sri Lanka’s highest foreign exchange earner, enjoying duty free access to the E.U. The garment industry provides employment to 300,000.

Among the other industries which have penetrated the E.U. market because of the G.S.P. + facility are fish and ceramic exports. Sri Lanka has been enjoying the G.S.P. + concession since the middle of 2005, on sympathy generated after the December 2004 tsunami.

G. S. P. +

The future of G.S.P. + that allows Sri Lanka to export several thousands of products to the E.U. region duty free is one of the popular talks/discussions doing the rounds among political, diplomatic, business and academic cum economic circles nowadays.

G.S.P. + impacts positively on local businessmen who export such products that come under the aegis of this facility, thereby profiting from this concession, as well as the Government of the day because of the socio-economic stability that this advantage gives in terms of job creation and job provision, coupled with the export competitiveness that G.S.P. + naturally provides, which also helps to build the island’s foreign reserves as a result.

But a premature termination of this facility would largely go against the government of the day at a future election because of the possible job loss that such an action would create, coupled with the hit that the island’s foreign reserves will have to take due to the withdrawal of this facility.

The continuation of this concession however impacts negatively on the anti Sri Lanka/anti Government lobby within and without, whose opposition against the sustenance of this facility stems from political reasons or otherwise.

E.U.’s double standards in dealing with the G.S.P. + issue were told to this reporter recently by no less a person than a Western European diplomat whose country is among the 27 European states that constitutes the E.U. (See The Sunday Leader issue of September 20, 2009)

He said that like Sri Lanka, Colombia is one of 14 countries which enjoy the G.S.P. + facility that enables it to export goods to the E.U. region on a duty free basis.

The source who did not want to be named said that Colombia has however been engaged in a 40 year war with the F.A.R.C Marxist guerillas which yet continues.  In that war, several civilians sometime get killed when the Colombian army conducts military operations against that rebel movement.

But there is no threat of the E.U. withdrawing the G.S.P. + concession because of such civilian deaths, he said. This is allegedly due to U.S. pressure on the European Commission (E.C.), the administrator of the E.U. The U.S.A. is also one of the largest markets for the E.U.

There lies the crunch.

In contrast to Colombia, both the E.U. and U.S.A. have been crying foul over Sri Lanka military’s recent successful prosecution of the war against the L.T.T.E. on the grounds of alleged human rights violations associated with that conflict.

The E.C. has even threatened to prematurely terminate the G.S.P. + concession to Sri Lanka on account of this, prior to its due date of expiry, which is December 31, 2011.

In such a scenario what should the Government do?

It has vehemently opposed pressure to open a war crimes investigation on this issue.

And citing examples like the Colombian issue on grounds of inequity by adopting a “dog eat dog” posture in defence, is not diplomatic etiquette either.

As such Colombo is now resorting to “last minute” lobbying of the E.C., an action that it should have had taken earlier, that diplomat told The Sunday Leader.

E.C. is expected to take a decision in regard to the future of the G.S.P. + concession on a negative report filed against Sri Lanka on the human rights issue either this month, or, if what Minister G.L. Peiris said is true, in December, which is just two months away.

Under these circumstances, one thing that the Government can do to try to mitigate this situation even at this late hour is to expedite the resettlement of I.D.P.s.

Nearly 300,000 I.D.P.s have been held in internment camps since the end of the L.T.T.E. war in May 2009.

President Mahinda Rajapaksa gave a promise to the international community soon after the war end that those civilians would once more be re-settled in their homes in the Wanni after screening and demining works are completed.

He assured that those civilians would be resettled before the year end. But after a near five months lapse since the war end and hardly two months remaining before the year end, only a handful of those refugees have since been re-settled.

There is a belief held by some that the alleged reason for the slowness in re-settling these refugees is for political reasons. With elections drawing nigh, such as the general election due next year, sources allege that it’s easier to manipulate those refugee voters when they are in refugee camps, rather than when they are re-settled in their own homes.

In general, the minorities of this country vote for the opposition U.N.P., or parties aligned to it.

The G.S.P. + facility officially terminates on December 31, 2011., after which it may be renewed for a further period. To date it has been renewed once, from 2009 to end of 2011.

The G.S.P. + duty free concession has been given to only 14 developing countries (including that of Sri Lanka) to help them get out of poverty. Countries like Colombia have been enjoying this facility because of its war against drugs.

This concession is linked to Sri Lanka observing universal labour and human rights laws. It’s on the latter, connected to the island’s prosecution of the L.T.T.E. war that the U.S.A. and the E.C. are finding fault with the Sri Lanka Government, with the E.C. holding the G.S.P. + facility as a ransom, to try to force the island to open investigations on alleged war crimes.

Sri Lanka has been enjoying the G.S.P. + concession since the middle of 2005 on account of the sympathy generated after the December 2004 tsunami. Though several thousands of items may be exported to the E.U. region duty free under this concession, for various reasons, only a few such exports from the island have in reality exploited this concession. Those are garments, fish and ceramic exports.

Garments are Sri Lanka’s single biggest foreign exchange earner, with fish and ceramic exports paling into insignificance when compared with the former. But still those sectors provide jobs to the people of this country.

E.U. is Sri Lanka’s single biggest export destination, followed by the U.S.A. E.U. is also the island’s single biggest tourism market.

Despite the G.S.P. + concession, exports to the E.U. have been falling in value terms year on year because of the current recession. But signs are that the “beginning of the end” of the recession has now started.

Nevertheless, recession or no recession, the G.S.P. + concession is vital for a developing country such as Sri Lanka, to give it that vital socio-economic stability that it now desperately needs.

Some academics and local exporters feel that the E.C. is using the G.S.P. + facility as a “carrot and stick” method to bring Colombo to heel. They cite the example that if the E.C. had really wanted to kick out the island from enjoying this concession, they could have had expunged its name when this facility came up for renewal this year.

However living in hope alone is not enough. The Government must take tangible steps to show that it’s toeing the line, not necessarily by opening up war crimes investigations, but by making a start to re-settle those refugees in their thousands back in their homes.

Hutch offers discounts

Mobile operator Hutchison Telecommunications Lanka (Pvt.) Ltd. (Hutch) recently launched its “Rate Cutter” to the Sri Lankan market.

The Hutch rate cutter offers customers the opportunity to make outgoing calls to other networks at a low rate of Rs.1.50 a minute for a period of 30 days once purchased and activated.

The Hutch rate cutter is priced at Rs.58 (inclusive of tax) and is available widely.

“Customers will respond positively to our innovations,” says Hutch C.E.O. Shankar Bali.

This is the first time that the concept of “cutting” the tariff has been used creatively in promoting a company’s offering, said Hutch General Manager Marketing Sanjaya Senarath.

“We have always believed in adding value to our clients’ lives in refreshingly novel ways and are proud to have done so once again with the introduction of the rate cutter,” he added.

“Our passion is to bring in simplicity and openness to communication which in turn will provide unlimited freedom to our clients,” said Bali.  

“For instance with the rate cutter someone does not have to spend time agonizing over what numbers he calls often or who his best friends are, all he has to do is activate it and talk.”

“In order to provide convenience and continuous connectivity to its subscribers, Hutch already connects incoming calls to subscribers who even have a zero balance in their accounts.”  

This cost effective gesture has attracted a positive response from its subscriber base. “You can be assured that as we go forward we will come up with more creative solutions to make communication non restrictive;  empowering our customers with ‘true’ freedom of choice wherever they maybe,” said Bali.

Skills training in N.E.

The Light to Life project is endorsed by the Vocational Training Authority of Sri Lanka (V.T.A.) and aims to initially collect Rs. 25 million or US$ 215,000 to build a vocational training school in war torn areas of Sri Lanka.

It’s organised by Rotary International District 3220 Sri Lanka and JWT Colombo. Towards the overall success of this project, over 60 JWT partners have committed their support by offering media, production and a host of other services free of charge, which would otherwise have collectively amounted to Rs. 65 million. Speaking at a press conference held in this connection, JWT Colombo Chief Executive Officer Thayalan Bartlett said that the Government has played its role in bringing about a final conclusion to the war. The private sector should not wait for more dividends from the Government, but should now come together and create the dividends for its citizens by turning Sri Lanka into a vibrant and thriving entity.  To do so, the private sector has to first ensure that those left in the wake of a 30 year war are brought up to speed with the rest of the country. A modern vocational training institute is a timely investment towards the future of Sri Lanka.

“We hope that once this institute is set up, it will help youth to help themselves and the society they live in.”

Light to Life Project Chairman and Past Governor Thariq Thulba said: “Rotary District 3220 is delighted to partner V.T.A., JWT & Mindshare Colombo to make an investment in Sri Lanka’s future through a sustainable project that will give youth the opportunity and security of a good future.”

Prime Athurugiriya land

Prime Lands (Pvt.) Ltd has now ventured into Athurugiriya with their latest real estate project “Prime City” which consists of nearly 100 plots of developed land in a fast developing part of the country. 

Although Prime Lands has been in real estate business for the last 10 years, it has bypassed all its competitors during the recent economic meltdown due to its versatile and unique experience gained continuously as an honest organization “where our customers found a stable and sincere partner in all there ventures.”

Based on the vision “Committed to create a better place on earth,” customers have now found out that “we mean business, and not commercial gimmicks employed by some unscrupulous entrepreneurs.

Prime Group Director/CEO Ms. Sandamini Perera, told The Sunday Leader, “Being the flagship of the Prime Group of companies enjoying the highest level of trust amongst its clients, company has thought its timely to introduce another exciting project with unprecedented pride,”

Introduction of this land at a price like Rs. 147,500 upwards per perch may look unbelievable for a land so close to the metropolis with all the facilities that one can think of. Perera explained how they have been able to withstand such stormy economic weather that prevailed during the recent past and how they are still in a position to find this better place on earth for you, now at Athurugiriya.

“Our lands are personally chosen by the Chairman and the Director/CEO, leaving no room for go-betweens, thus offering a realistic price, a blessing for the client.

“Our development cost has not got impregnated as we possess all the necessary earth moving equipment operated by ourstaff and the works supervised and monitored by engineers, technical staff and quantity surveyors of our own, thereby bypassing contractors and others seeking such opportune works.

We don’t charge administrative costs as those are absorbed by our system itself as a competent organization.

 Our marketing and advertising costs come to more or less zero as the group is having an advertising arm called Masterminds which is responsible for this area. Since we’re a self supported organization it has not become necessary for us to go looking for funds from banks and outside deposits.”

With all these benefits accruing to the customer, Perera said that she has no hesitation to say that this is the project of the century, where no other competitor can think of matching.

The reasons given above and the staff trained in their particular area of operation have been the success story of this company, with continuously increasing customer trust we’re also mindful of the fact that the most invaluable treasure of ours is the unswerving clientele. “

The plots of land which face Athurugirya/Malabe “route no. 344 road” and is equipped with many amenities, including tarred roads, pipe borne water and three phase electricity as well as excellent drainage facilities.

According to Perera the area now has many schools, banks, supermarkets and hospitals which are located in proximity to each other, plus the public transport in the area makes living in Athurugirya that much more convenient. 

She said that this latest project offer buyers a chance of a lifetime, with easy payment schemes that Prime Lands have on offer as well as the arrangement of bank loans or loans from Prime Lands itself.

Prime Lands also have a scheme where customers can opt to make a down payment of 30% and the balance payments over a period of 15 years if they so wish. The plot prices start from Rs. 147,000 upwards, an unbelievable starting price for this location.

As a market leader, Prime Lands has consistently come up with innovative ideas in developing and selling lands, coupling this with customer care.

The latest in this regard is Designer Roofs (Pvt) Ltd, a Prime Group subsidiary, which tends to all roofing needs and provides customers with roofing solutions which “manufacture colour roofing tiles for you.”

Wayamba Salterns to list 

Wayamba Salterns (Pvt.) Ltd. (W.S.P.L.) plans to raise Rs. 300 million through a listing in the Colombo Stock Exchange next month.

Dr. Ravi Liyanage, Chairman/C.E.O. of W.S.P.L. told The Sunday Leader that the listing would result in 30% of the company’s stake being offered to the public. W.S.P.L. is a 100% subsidiary of Raigam Marketing Services (Pvt.) Ltd.

He said that he would plough back the money so raised on his salt business.

The company has salterns in Puludivayal, Wanathavilluwa and Tangalle, and a salt refining plant in Palaviya.

W.S.P.L. in the financial year ended March 31, 2009 saw turnover increase by 142% year on year (y.o.y.) to Rs. 382.6 million and net profits by 1,220% y.o.y. to Rs. 172.9 million. Liyanage said that Sri Lanka imports 25% of its table salt requirement, a situation which was not there when the Elephant Pass saltern was in operation.

 “In the past, The Elephant Pass saltern and Kurunchativu, a saltern adjacent to it, supplied the now defunct Paranthan Chemicals Corporation the salt required to produce salt base industrial products such as caustic soda, soda ash and chlorine as well,” said Liyanage.

But now Sri Lanka annually imports Rs. 1.5 billion worth of Caustic Soda, a salt byproduct, in to the country. Additionally, other salt byproducts such as Chlorine and Soda Ash are also imported into the island, he added.

 The Raigam Group also has plans to start a virginal saltern in government property at Kuchchaveli, Trincomalee, in which connection surveys are now being conducted.

“Some 18 approvals have to be got from various government agencies before work could begin,” said Liyanage who had made an unsolicited proposal for this land early last year.

The company wants to take the Kuchchaveli land on a 30 year lease.

Liyanage has plans to invest a total of Rs. 750 million on his various salt projects over a five year period.

Liyanage who has a controlling stake in the Raigam Group of companies, apart from the manufacture of table salts, also plans to go in for the manufacture of industrial salts.

Liyanage through his various salt expansion projects plans to meet this need.

He said that Sri Lanka annually consumes around 100,000 metric tons of salt worth Rs. one billion, of which requirement W.S.P.L. meets 50% of it.

W.S.P.L. has also clinched an order to export 35 twenty foot equivalent units of containers of salt annually to Japan. “Each container carries 20 metric tons of salt valued at U.S.$ 6,000 each,” said Liyanage.

The Group which is a Rs. two billion annual turnover company derives 35% of its revenue from the sale of its soya meat products which brings it an annual income of Rs. 600 million. This is followed by its salt business which brings it another Rs. 400 million while its other business units provides for the remainder.

Liyanage, whose Group is also into sanitary towels production says of Sri Lanka’s five million women who are in the menses cycle, only one million use sanitary towels. This shows the potential that exists for this market, he said. Liyanage said that he controls 20% (Rs. 70 million) of this market.

The Group which began in Horana in 1997/98 with only eight employees, now has 2,500; Liyanage, a former Customs officer said.

Money lenders dominate 

Fifty five per cent of the total credit requirement in India is met by local money lenders.

Credit take-off (among banks) in India is low. As a result there is too much of liquidity, whereas a year ago they were tight on liquidity-Excerpts from the speech made by J.D. Agarwal, Professor of Finance and Founder Chairman Indian Institute of Finance, New Delhi,  at the inauguration of the CIMA Business Forum in Colombo on Monday.