BUSINESS

Ceylon Chamber of Commerce
urges constitutional reform

The Ceylon Chamber of Commerce (CCC) has called for the introduction of a process of judicial review of legislation into the constitution of Sri Lanka. It said this should be in keeping with the current trends of constitutional making of progressive developing countries.

The chamber has informed the government and President Chandrika Kumaratunga that in introducing such provisions for reform, constitutional reform proposals should be published in the form of a white paper. This would give interested parties the opportunity of participating through written submissions or other means. "That the process is put in place as a matter of priority is underscored in consideration of the imminent need to restore the rule of law in this country and reinstate a system of constitutional governance," the CCC said.

Earlier, the CCC in its paper "Strategies for  Growth Leveraging the Private Sector" proposed that the Government as a part of its policy on constitutional reform make provision for the judicial review of legislation in order to ensure the consistency of all laws with the constitution notwithstanding the earlier enactment of such laws. The recent submission was made with the objective of restoring a system of constitutional governance in Sri Lanka and ensuring the supremacy of the constitution over ordinary legislation. The Government was reminded that the need to establish the mechanism of judicial review of legislation has been well articulated to successive governments by eminent commentators, legal scholars and civil society organisations and by itself is neither a new nor intricate proposition.

The rationale behind judicial review of legislation is one rooted in the principle of the supremacy of the constitution. In a country which possesses a written constitution, the supremacy of the constitution at its simplest means that while a democratically elected government rules by the force of compulsory law, it cannot exceed its own power and is subject to a higher order, a supreme law which both sets out the extent and the limits on the exercise of power by the organs of government. It is an integral part of the essential guarantee of the higher legal order established by the Constitution that the institutions of governance, themselves creatures of the constitution and whose powers are determined and limited by the constitution do not exercise those powers so as to ultimately confer upon themselves a power greater than that bestowed.

It is not only the presence of Article 16 of the constitution that undermines the supremacy of the constitution. Laws can only be challenged on constitutional grounds in the pre-enactment stage and it is constitutionally provided that no review is permitted on any ground once such legislation has been duly passed by Parliament. Citizens can only challenge an ordinary bill before the Supreme Court within one week of the Bill being placed on the Order Paper of Parliament and in the case of urgent bills within 24 hours. The emphasis on pragmatic considerations of time and legislative efficiency rather than on the principle of the supremacy of the constitution places the legislature in the unsatisfactory position where the risk or temptation of making laws which may be deemed unconstitutional remains dangerously open. It is this ambiguity, the eccentric and often exploited manifestation of a tension between two opposing principles, one of the supremacy of Parliament, and the other, the supremacy of the constitution, that has allowed the weaknesses inherent in the present constitution to be exploited by successive government and individuals eager to extend their powers in contravention of the supreme law of the land.

The proposals of the draft constitution of 2000 concerning judicial review of legislation resolves this ambiguity to a limited extent in terms of extended time periods, within which a citizen may challenge a bill before the Supreme Court and provision for the judicial review of legislation within two years of the enactment of an Act. However, similar to the present constitution, the draft constitution retains a clause validating all existing laws notwithstanding their inconsistency with the provisions of the proposed fundamental rights chapter of the draft constitution. While there is provision for the establishment of a commission to examine all existing written or unwritten law with an obligation to report to the President as to the inconsistency of any such laws with the fundamental rights provisions of the (draft) constitution, it is unclear as to what steps Parliament, before which the report must be ultimately placed, is obliged to take.

The CCC said, it is of absolute necessity, if the terms constitutional democracy and the rule of law are to mean much in our society, that the supremacy of the constitution is upheld and that not only the institutions of Government are obliged to obey the fundamental provisions and principles of the constitution but that the courts are vested with the power of judicial review, to invalidate laws that are inconsistent with the constitution. The latter proposition assumes an even greater significance when examined from the perspective of the citizen; it is access to the courts, itself a basic postulate of the rule of law, that guarantees and protects the fundamental rights and freedoms of citizens against denial or infringement by any of the institutions of government including the legislature.

Enjoining order vacated

Harcourts (Pvt) Limited recently succeeded in moving the Commercial High Court of Colombo to vacate an enjoining order filed by Dr. Reddy's Laboratories - Hyderabad against than marketing of GLA-100 imported from Australia and marketed by Harcourts.

Harcourts was the first company to introduce GLA in Sri Lanka. However, Dr. Reddy's Laboratories, presently the owners of American Remedies which manufactured GLA-100 on a contract basis for Harcourts have also introduced GAL-120 to Sri Lanka.

In this case, the instructing attorneys were M/s Samararatne Associates of Colombo and the counsel for Harcourt's were Faiszer Mustapha and his junior Roshan Hettiarachchi. Dinal Phillips and junior counsel Nishantha Sirimanne appeared for the plaintiff. The case has been put off for March 8, 2002.

Death of Aslam Malik

Muhammad Aslam Malik, a prominent Pakistani businessman and founder of Malik News agency died of a heart attack last week. He was 77.

Aslam Malik was a self-made man. He came to Dubai and joined the customs department. After a few years he decided to do his own business and started importing magazines and newspapers nearly thirty years ago. Due to his hard work, Malik News Agency became a household name with all readers of Asian publications. Malik News Agency have been importing magazines and newspapers from Asian countries like India, Pakistan, Sri Lanka, Bangladesh and Philippines. Apart from other outlets Malik News Agency has its own branches in various emirates of UAE.

DPMC to market MRF tyres in Sri Lanka

David Pieris Motor Company (DPMC) last week launched the Indian MRF two wheeler and three wheeler tyres at a function at the Galadari Hotel in Colombo.

This is the first time that DPMC is marketing imported tyres in Sri Lanka. The new Bajaj three wheelers are fitted with MRF tyres and now customers get the opportunity of buying MRF tyres for the subsequent replacements as well. A David Pieris Motor Company Ltd. spokesman said that competitive prices, coupled with distinctly higher mileage, safety and comfort they offer, give the MRF two wheeler and three wheeler tyres a leading edge over competitors in the local market. MRF Ltd., India's largest tyre company is a multi plant operation and produces world class products in six manufacturing units.

It has today acquired global recognition with a premium range of tyres that meet quality standards across the world.

MRF's position of leadership has been achieved through its commitment to quality, which has been accepted in India and the 75 countries to which the products are exported.

Introductory offer by Asha Central Hospitals

Asha Central Hospitals Ltd. last week obtained a listing on the second board of the Colombo Stock Exchange. The company is offering 2 million shares at Rs. 13 each (par value of Rs. 10).

Chairman, Asha Hospitals, Dr. Neville Fernando said the objectives behind this move were to make the share marketable and broadbase the shareholding to include the public with the aim of going for an IPO in the future. He said they intend going for an IPO to upgrade the facilities of the hospital and refurbish it.

The shares on offer comprise 10% of the stake held by Euroam Management Services (Pvt) Ltd., which has a 92.2% stakeholding.

Asha Hospital is expecting to achieve a turnover of Rs. 330 million and a net profit of Rs. 33.9 million for the current financial year ending March 31, 2002. This BOI - approved company recorded a turnover of around Rs. 290 million last year.

Dr. Fernando expects a good response for the introductory offer, considering the greater interest in the share market and the optimism that has been generated due to the ceasefire between the government and LTTE.

Asha Hospital has been providing private medical care since 1945, offering a comprehensive range of modern facilities including those for all surgical operations, maternity, neurosurgery and eye surgery. A state-of-the-art laboratory for investigation, spiral CT scanner, gastroendoscopic and colonoscopic systems and laproscopes for diagnosis and pinhole surgery are also included. The hospital also comprises a fully. equipped intensive care unit, a special psychiatric ward and a bed strength of 100. It has 17 full-time medical officers and 220 consultants engaged in channeling practice.

Fernando described the turnaround of the company as a story in management success and a good case study. He said that when he took over as chairman in March 1998, the losses carried forward amounted to Rs. 158 million. Thereafter, they obtained a capital reduction under the Companies Act by going before the District court of Colombo, and have been recording profits since.

BOI signs 12 agreements in January

The BOI has signed 12 agreements during the month of January 2002, amounting to an estimated total investment of Rs. 1055 mn of which Rs. 780 Mn. consists of foreign investment and the projected employment is around 1900.

In the apparel sector, growth and dominance still prevail with an agreement signed by Sirio (Pvt) Ltd. With an investment of Rs. 521 mn. and employing 1200 people, this BOI venture will establish a project to manufacture nonquota garments for the export market. Dott Oandro Veronesi, the president of Calzedonia Luxembourg opened 3 years ago its first factory Omega line Ltd., a state-of-the-art factory at Sandalankawa. Dott Veronesi decided to open another factory to expand their presence in Sri Lanka. The parent company of Sirio Ltd will sell their products through a network of over 1250 shops in Europe. They also have their own labels namely "Intimissimi" for underwear and "Calzedonia" for swimwear.

Colombo Copper (Pvt) Ltd has signed an agreement to set up a project to manufacture copper wire rods in coil forms and stripes for the export market. This project falls under the light engineering industry category and the main collaborators of this project are from the USA and India. The total investment of this project is estimated at Rs. 126 mn with an employment capacity of 100.

Allied Metals (Pvt) Ltd will establish a project to manufacturer aluminium alloy ingots and automobile components for the export market. The investment of this project to be located at Horana Export Processing Zone is Rs. 126 mn while its employment potential is at 30. The main collaborators of this project are from India.

Lanka Timber Plantations and Industries Ltd, has signed an agreement to set up a project to manufacture wooden furniture for the export market investing Rs. 110 mn and employing 185 local personnel. This new project is a joint venture between Woodman Export (Pvt) Ltd., Tri Star (Pvt) Ltd and the State Timber Corporation. The BOI concessions have been granted to this new project, which is restructured by collaboration with an existing BOI company.

Mogami Lanka (Pvt) Ltd is a Japanese investment which will establish a project to manufacture and assemble electrical goods and allied product for the export and domestic market. This project will be established at Bandaragama investing Rs. 39 mn and creating 20 jobs.

Vatters Garden (Pvt) Ltd has signed an agreement to set up a 24 roomed tourist hotel at Matara. Total investment of this German project is estimated at Rs. 22 mn with an employment capacity of 41.

Agriforce (Pvt Ltd, will establish a project to cultivate perennial crops such as mango, cashew, rambutan, avocado, cocoa and pepper in a 125 hectares land in Kurunegala district. The estimated local investment of this project  is around Rs. 30.4 mn and employment generation will be around 82.

Copier Company (Pvt) Ltd, has signed an agreement to set up a company for refurbishing imported used photocopiers, laminating machines, paper shredders and accessories for re-export. The main collaborators of this project are from Australia and India. This project will generate 102 new employment opportunities while investing a total of Rs. 20 mn.

In the IT sector, two companies Mackwoods IT (Pvt) Ltd and Spectrum Traning Centre (Pvt) Ltd have signed agreements with investment totaling Rs. 16.6 mn and will provide 67 job opportunities. Mackwoods IT (Pvt) Ltd will establish a project to develop software for  export. Spectrum Training Centre will set up an information technology-training institute to provide an education and do research on Bluetooth Technology and Bio-Informatics in computer science, computer programming and programming languages.

Omega Tapes (Pvt) Ltd has signed to set up a project to manufacture adhesive and other tapes for direct and indirect exporters with an investment of Rs. 34.5 mn generating 34 jobs.

Jinasena Industrial Appliance (Pvt) Ltd has signed an agreement to manufacture and assemble industrial and domestic appliances and components such as electric motors, motor parts, water pumps and accessories for the export market investing Rs. 12.5 mn and employing 57 local personnel.

The BOI web site www.boisrilanka.org will carry details of approvals given in the last nine months as well as a comprehensive database with search capabilities for details on BOI companies under commercial operation.

NCE/Huejay facilitate participation at 
international trade fair

The National Chamber of Exporters of Sri Lanka (NCE) in collaboration with Huejay International have organised Sri Lankan exporter participation at the International Trade Fair/Global Village in Dubai from March 1 to 31.

Several Sri Lankan exporters particularly small and medium exporters have been given the opportunity to market their products at this shopping festival in which 45 countries would be taking part. This festival is expected to attract approximately two million people this year. More than 60 Sri Lankan companies will participate in this event which includes over 30 members of NCE.

This Dubai Shopping Festival/Global Village will be a unique platform for Sri Lankan exporters and service providers to arrange exposure of their products and services thus enabling them to penetrate into global markets successfully.

Should we emulate the Singapore Model?

By Dinesh Weerakkody

The success of many of the economies in East Asia in achieving rapid and equitable growth have occupied our leaders since the study of developing economies began in earnest in the hope of identifying a formula that their economies could implement to emulate the East Asian economic development experience. However, consequent to the economic meltdown in the 1990s in Asia, analysts began to say that East Asia's extraordinary growth was only a fluke and that there was nothing exceptional about East Asia. But, to their astonishment, East Asia miraculously recovered from near terminal economic sickness.

This issue is now baffling many western economists as they desperately try to interpret the factors that helped the Asian recovery in a very confused world scene. However, those who understand the limited relevance of economic theory to the prosperity and wealth of nations will not be surprised by Asia's swift recovery.

Prosperity

Today, prosperity and confidence are plainly returning to most of the Asian nations. It seems even for a giant like Japan the outlook does not look that pessimistic, despite the fact that the recovery mood in Asia may not go very deep as yet. The Asian Tigers may be upbeat with the turn of events, but many of these economies still have huge overcapacity and limited bank credit, but it seems the examples shown by South Korea and Japan, where at every level of society people have been prepared to accept pay cuts in order to get back on track, demonstrates that the most important point of development are the inner qualities and resilience of a society and its citizens.

The economies in East Asia that grew rapidly in the '80s and early '90s used the same policy instruments as other developing economies, but with a greater success. Economists however conclude by saying that East Asia's extraordinary growth was due to superior accumulation of physical and human capital and that these economies were also better able than most to allocate physical and human resources to highly productive investment.

In this sense there was nothing miraculous about these East Asian economies' success - each have performed the essential functions of growth better than most other economies. This indicates that sound economic policies and well ordered markets help, but much more is also required.

Fortunes

The striking internationalisation of competition in the 1990s has been accomplished by major shifts in the economic fortunes of nations. Governments and firms have inevitably been drawn into a heated debate about what to do. Due to our consistent failure to adopt a development model to suit Sri Lanka's physical and human resources, much discussion over the last 20 years has been centered around the eight economies in East Asia. Interestingly, the two common factors that helped East Asia to grow faster than any other region of the world has been the "national environment" and a strong government.

Leadership

Singapore's boom was identified with just one person; Lee Kuan Yew. Kuan in his farewell speech to his party just before he relinquished office said "Your generation has to grapple with the problems of relative success, with a future no longer primarily concerned with overcoming poverty, ignorance, disease, and unemployment. That the baton has been passed on to a vigorous group with high ideals and principles is the most important single achievement in the last 10 years." Realistically speaking, the crux of the difference between "success" and "failure" lies in the basic philosophy. If the basic philosophy is wrong, then however strong, determined and able party leaders and members can be, the end result will still be defeat and disaster, as has happened in the communist countries.

On the other hand, is socialism as flawed as communism? The reality is, communists often call themselves socialists and confuse everyone. So whether socialism is flawed depends on how we define socialism. If by socialism we mean state control of all the factors of production, then socialism will no doubt fail like communism. But if by socialism we mean a philosophy which tries to equalise opportunities in each generation, after inequalities have resulted because of different endowments and efforts in a previous generation - that of their parents, then such socialism need not fail. However, if in the name of socialism, redistribution of wealth goes too far, it will stifle motivation to compete and do one's best. Then socialism will cause failure.

Opportunities

The Singapore government improved the lives of people by increasing the equality of opportunities. This was done by making health, education, housing, jobs more easily accessible to all. Had the government attempted a policy as equality of rewards which was what many countries attempted, they would have failed. Equality of rewards would have met the "iron rice bowl". This must mean minimal effort by everyone and low productivity all around, resulting in poverty. Many people in Singapore complain that whilst income and bonuses have increased and taxes have been reduced, the government at the same time has increased medical charges, university fees, road fares, fines and foreign mail levies.

The government explanation has been that, with each year's wage increases, labour costs increase. So, health services, university fees and cost of services go up. According to government sources they have two options; increase taxes and pay for these increased labour costs. But by increasing taxes and paying for the increased subsidies, the end result would slow down the economy and become uncompetitive in the world market, or the best way to get money's worth for goods or services - to give the consumer the money and let them choose what and where to buy it.

In fact, in the '80s the absence of subsidies made Hong Kong's economy more efficient than Singapore. As Lee Kuan Yew says, "whenever we can, we give money to people either in reduced taxes or through vouchers like the education vouchers for independent schools. Let people choose where to spend."

Education

The schools in Singapore have to compete for students by offering the best education, for that education voucher. It is obvious that the balance, government and people must strike is a practical one, a question of judgement. Furthermore, the ideal balance will vary from time to time, and from situation to situation.

Lee Kuan Yew suggests that "we must do enough to improve social cohesion and national unity; winners must be well rewarded but non-winners must also share in the gains, though not to the same extent." It is very much like a tennis or swimming tournament. If a few top winners take all and there are a few consolation prizes for other participants, then those who are unlikely to win the top prizes will automatically give up coming to the tournament to participate.

Balance

This illustration pinpoints the need to maintain a balance between competition and cooperation. Singapore would not have achieved the best her people are capable of without cooperation. Singapore would have lacked the social cohesion and national unity without which the society would have been vulnerable and ineffective as a nation.

The reality is, there is a price for every policy option. For example, those who recommend that Singapore reduce the stress in education by reducing the importance of examinations, forget that whilst a stress free education system leads to a relaxed society, it also leads to a low achieving society; i.e. low growth economy. Societies that have stress free schools and universities have intractable economic problems simply because their workers are not productive. They cannot compete with the Japanese or the Koreans or the Taiwanese. As Lee Kuan Yew says "It is up to you to decide whether you want to stay on track in pursuit of excellence, or to go for a more relaxed system, which means accepting lower standards of achievement and less rewards."

Conclusion

Prosperity and confidence has very clearly returned to Singapore and it seems that the deeper values were the ones that have helped Singapore and most other Asian nations to get back on track. The learning of the last economic crisis is that the Asia Tigers have now mastered the essential qualities needed to sustain growth and would as a result become one of the most advanced nations in this millennium. It also shows that normally prudent, ordinary calculations can be overturned by extraordinary personalities like Lee Kuan Yew, the father of Singapore, who demonstrated this in the '80s and '90s by moving Singapore from a Third World country to a first.

eBXL and Golden Key in strategic partnership

E-Business Exchange Lanka (Private) Ltd., the information technology and communications solutions arm of KPMG Ford, Rhodes, Thornton & Co., involved in providing IT solutions in e-outsourcing, e-integration and e-business services, and The Golden Key Co. Ltd., which took over the rights to market and support IMAS Corporate Software worldwide - a comprehensive software package developed by IBM, entered into a strategic partnership recently.

According to Manager, Information Systems, eBXL, M. Ismail, IMAS Corporate Software was selected as the application software for ASP assistance, due to its cost-effective reliability, backed by a skilled technical division to run it.

e-BXL offers an impressive product and service range including solutions in ASP assistance, bank office solutions, implementation, information technology solutions and consulting and e-commerce applications to any trade or industry, mainly targeting integrated financials, Supply Chain Management (SCM) and Customer Relationships Management (CRM). eBXL is dedicated to identify business needs, related control environment and implement total IT solutions for their clients.

The Golden Key Co Ltd, has already committed a substantial investment to develop and expand the scope of IMAS. This is expected to lead to providing fast, flexible and state of the art corporate software.

Golden Key Co. Ltd., President, Suramya Karunaratne says that the company will focus strongly on customer needs and by working in synergy with business partners, ensure that it lives up to the promises made. The company's commitment to its business partners further extends to marketing and promotional efforts as well. The setting up of IMAS Support Centres in key geographic locations is also on the cards.

Ceylinco Life clears Rs 2 billion mark

Ceylinco Life has become the first private sector life insurer in Sri Lanka to cross the Rs. 2 billion threshold in life premium income, ending 2001 with the achievement of what the company has designated a "Decade of Leadership."

Releasing details of its performance for the year, the company said premium income had grown a healthy 30 per cent to Rs. 2.157 billion, enabling Ceylinco Life to remain the unchallenged leader among private sector insurers, outperforming its closest rival by nearly Rs. 500 million.

This record-breaking feat also enabled Ceylinco Insurance to reach Rs. 4 billion in its total insurance portfolio, which includes the General Division's premium income, the company said.

The company's Life Fund grew by a massive Rs. 1.5 billion in the year under review, and stood at Rs. 5.2 billion on December 31, 2001, recording an increase of more than 40 per cent. This is the biggest Life fund in Sri Lanka's private sector.

Maturity benefits and advance payments during the year amounted to Rs. 261 million, while a total of Rs. 53 million was paid out in claims. Ceylinco Life also disbursed Rs. 292 million as bonuses to policyholders in the final quarter of the year on the basis of the company's performance in 2000.

New products introduced included the Ceylinco Investment Plan, a short term investment product with in-built life cover, "Ahinsa" a comprehensive protection scheme for women and Ceylinco Major Medical 500, a revolutionary benefit that covers policyholders against 500 types of surgery -the only medical benefit of its kind in Sri Lanka to date.

One of the biggest highlights of the year, the company's Marketing Manager Ravi Liyanage said, was the launch of the Ceylinco Pranama Scholarship scheme to reward academic performance and achievements in other fields by children of policyholders. The company made an initial allocation of Rs. 16 million to award four categories of scholarships.

Ceylinco Life also commissioned a state-of-the-art Cancer Detection Centre through the company's subsidiary, Ceylinco Healthcare Services Ltd. (CHSL). This centre is affiliated to the Washington Cancer Institute, one of the most reputed organisations in the world in the field of cancer and treatment. The centre is part of a major initiative to promote the prevention of cancer through screening and education, and will also specialise in risk management and cancer education, he said.

Attributing Ceylinco Life's success to the high standard of professionalism of its staff, Director/GM, R. Renganathan explained that this has been achieved through diligent training, incentives and encouragement, and through a commitment to harness all the benefits that developments in information technology have to offer. In May 2001, the company launched "e-future," a pioneering project to promote the use of IT among its sales force by providing regional sales managers and sales executives with laptop computers and mobile phones, creating an electronically assisted sales force.

Employees Trust Fund and public enterprise reform  

The lead editorial of a prominent newspaper in late 2000 carried the headline "Why is South Asia stagnant?" And raises the question "Why has long term growth not taken place in Sri Lanka?" In many ways the answer to the question lies in developing a new work ethic not second to the Asian Tigers of the last two decades of the 20 century. The editorial also spoke of good governance, good institutions, openness, and human capital development.

What transpires soon after was one where government spending which was aimed at securing its political popularity, resulting in not only the depletion of the resources in the Treasury but running huge expenditure from other funds and borrowings including the EPF and ETF, instead of the much wanted efficient macro economic management and encouragement of prudence and economy.

The Employees Trust Fund which is one of the premier employees funds in the country was started in the early eighties with a view to not only providing terminal benefits to retiring corporation and private sector employees but also to motivate employees to participate in management of enterprises through equity participation and reap other benefits while being a member of the fund.

These objectives have not been realised as yet due to weak communications with the target beneficiary - employees of firms, resulting in poor member buy in. The collection from most of the employers is concentrated in the Colombo District with over 75% of the potential annual collection of 3 and 4 billion. The board, leave alone improving the awareness of its existing benefits such as permanent disability insurance cover, financial assistance for heart surgery, Intro ocular lens transplants, year five scholarships for members children and hospital medical insurance (Shramasuwa Rekewarana), has not been able to update employer records and hopelessly behind time in processing member claim payments. Though the standards set for processing a claim is four weeks, this has not been achieved so far.

When one raises the question "why" the finger is pointed at the dysfunctional computer system which still runs on an AS400 environment. The software developed by a vendor with Indian collaboration, runs on a db2 platform using ILE RPG language. For whatever its worth neither the then head of IT nor the vendor nor the management team has been able to put right the various flaws which still seem to trouble the efficiency of the board's operation.

The author also recalls reading in late 2000 the document put out by the Ceylon Chamber of Commerce addressed to the president. In it the chamber had mooted the idea of a private pension, provident and gratuity fund. This is the level playing field every one of the employers want.

Therefore any delay in getting the ETF back on its feet will mean the demise of the public enterprise led Employees Benefit Fund. The new chairman on his assumption of duties has set in motion a series of initiatives which we hope will make the ETF customer friendly and will deliver the goods within these critical 100 days and beyond.

The new management has called in expert advice and intervention from a leading IT consultancy firm to redress the "The computer system is not working" syndrome. In the meantime many initiatives have been developed.

On life registration of employers which is bound to be operational during March 2002 would be a boon to many firms in particular. The board is also making headway in collaboration with  a leading bank to facilitate payment of ETF member dues through the bank's network, with the possibility of accessing the bank through the employers computer system if they are banking with the partnering bank. This arrangement will save a large slice of the time spent in remittances and form filling.

The ETF's website will be launched on  March 1, which will signal the opening of its portals to access member and firm's information relating to their account and verification of balances. It is also targeted to post daily balances of members on the internet. The customer service hotline will be henceforth fast and frequent feedback on the efficiency or short falls would be welcome from the public. Customer services would be handled by a dedicated member of the staff who will be able to process all inquiries during most of the day. Customers will also be able to address their queries on e-mail, which too will be available by the 1st March.

The new management has also launched a review of the investment portfolio so as to deploy more funds into the stock market and in commercial papers, while professional fund managers will be enlisted to manage at least 6-8% of the available funds to increase the return on the board's investments. The management is also looking at new products like unemployment pay and low cost housing in an attempt to make the ETF more value adding to its members.

People development is paramount to securing higher performance and continuous improvement in time saved, cost reduced, less material used, and greater collection achieved. This is possible only when the employer invests in his employees. The new chairman intends to extend staff development to areas such as quality and work improvement through innovation. With a view to this end the ETF has commenced a Five "S" programme starting  February 23 and intends to progress towards securing ISO 9000 certification for its services to customers.

Rs. 110 million for promotion of Ceylon Tea
overseas in 2002

Sri Lanka Tea Board (SLTB) has allocated over Rs. 110 million for Ceylon tea promotional work abroad during the year 2002. The Tea Board promotional work is conducted under three main categories i.e. trade fair participation, uni-national promotion of Ceylon tea and brand promotion.

Under trade fair participation, SLTB together with some selected tea exporting companies will participate at 20 international food & beverage fairs in 2002. A sum of Rs. 20 million has been allocated for this purpose. Media advertising such as TV, radio and newspaper, and outdoor advertising are conducted to promote Ceylon tea in selected markets under the uni-national promotion for which a budget of Rs. 25 million has been allocated.

Tea Board has granted Rs. 65 million to tea exporters for 35 brand promotion projects covering around 25 Ceylon tea brands in international markets in year 2002. The Ceylon tea brands identified with the lion logo have been selected for promotional assistance by the Tea Board. Out of this amount Rs. 6 million has been allocated for promotion of Ceylon tea brands in India under the Indo-Lanka Free Trade Agreement. The financial grants given to tea exporters to India also cover market research in India.

In selection of brand promotion projects, Tea Board has given priority for high valued speciality tea products, tea bags and other prepackage brands. Pure Ceylon tea brands owned by Sri Lankan companies were placed above tea brands jointly owned by the exporters and importers. The brands fully owned by the Sri Lankan companies are funded by the board on 50:50 basis while the other projects are funded either on 1/3 rd basis or 25:75 basis depending on the priority product and market categories.

The prominent Ceylon tea brands such as Dilmah, Imperial, Batik, Mlesna, Akbar, Heladiv, Alwazah, Al Gazalean, Layalina and Mabroc were the main beneficiaries of the SLTB brand promotion scheme. The projects have been approved in respect of Russian, Poland, Central Asia, UK, Middle East and some new markets in South East Asia.

Sri Lanka exported 97 million kgs of tea packets and 13 million kgs of tea bags in 2001. The value added tea exports account for 40% of the total tea exports in 2001, compared to 34% in 2000. It is believed that SLTB promotional grants will help exporters to further increase the volume of value added tea exports from Sri Lanka.

The trade fairs selected by the Tea Board are considered as most important and popular food and beverage fairs in the world. It is interesting to note that new and virgin markets in Far East Asia i.e. South Korea, China, Malaysia, and Singapore have been identified as potential markets for value added Ceylon tea in the coming years. The board is also participating at fairs in Latvia, Kazakhstan and Uzbekistan to help exporters to consolidate the position of Ceylon tea in these potential markets.

Tea Board will sponsor around 70-75 Sri Lankan tea exporting companies to participate at the Ceylon Tea Pavilions at these fairs. Only exporters of pure Ceylon tea brands which are identified with the Ceylon Tea "Lion Logo" will be selected for participation under the Tea Board sponsorship. As per the Tea Board sponsorship package, 50% of the stand rental and construction charges are paid by the board while the other expenses are to be borne by the selected tea exporting company. In addition to the financial support, Tea Board also helps the tea exporting companies with other logistics such as to obtain visas, reserve hotel accommodation and also dispatch of exhibits etc.

Sri Lanka exported 294 million kgs of tea in 2001 and maintained her position as the largest exporter of tea in the world. About 40% of this volume was in value added form. The country earned Rs. 61 billion from the tea exports, about 15% increase over the earnings of  the previous year. SLTB participation at international fairs has brought some positive results and Sri Lanka has been able to find new markets for Ceylon tea in South Korea, China, Malaysia, Latvia, Moldova while consolidating strengths in target markets such as Russia/CIS, Middle East, USA, Japan, Poland etc.

The Board also conducts seminars, workshops and tasting sessions at these trade fairs to educate trade members and consumers about Ceylon Tea. SLTB has already participated at the International Spring Fair in Dubai and Prodexpo fair in Moscow. The tea companies who participated at the two trade fairs have received a number of inquiries for supply of tea from Sri Lanka. It is now making arrangements for its participation at Foodex, Japan to be held in Tokyo from 12-15 March, which will coincide with the 50th anniversary celebration of Sri Lanka and Japan diplomatic relations. A group about 10 Sri Lankan tea companies together with the Tea Board will represent the "Ceylon Tea" sector at Foodex Fair, Japan.

People's Leasing - participating credit 
institute under Indian Line of Credit

Under the credit agreement entered into between the government of India and government of Sri Lanka, a participation credit agreement for Indian Line of Credit (ILOC) for the import of Ashok Leyland trucks were entered into by People's Leasing Company as a Participating Credit Institute (PCI), recently. People's Leasing Company now popularly known as PLC, was incorporated on 22nd August 1995, as a private limited liability company and commenced commercial operations in May 1996.

PLC is a specialised and dedicated leasing company and the initial objective of forming the company was to act as a facilitator to the parent company, the People's Bank, by way of extending lease facilities to their customers as well as for implementing the Indian Line of Credit for omni-buses. The company changed its corporate status to a public company on 15th November 2000 and re-launched its logo and entire outlook has been changed with many new marketing and operational strategies in order to break into the competitive market.

PLC now has an island-wide network of eight branches covering key towns. Among the 42 specialised leasing/finance companies registered and operating in Sri Lanka, PLC presently stands at No. 3, beating long established giants in the trade.

PLC is presently leading in the transport sector. Now it has diversified its operations in many other spheres. "In 1996, under India Line of Credit, we facilitated 800 buses. With the government's commitment to build up infrastructure, we will play a major role in using this facility in importing Ashok Leyland trucks to improve transportation. Whilst these new vehicles will be environmentally friendly, it will help to reduce the prices of agricultural produce which is transported to Colombo and will help poor farmers in far areas to sell their produce," said PLC's CEO, D.P. Kumarage. 50 new route permits from Jaffna and Vavuniya will be given for transportation which will be dominated by Tata and Ashok Leyland vehicles facilitated by PLC.

PLC has already built up a strong relationship with route permit holders. PLC's 10 year Indian Line of Credit will offer upto six years' pay-back period to the customer, reducing its monthly instalment to affordable amounts with a grace period of one year.

Last year PLC facilitated the purchase of 1600 buses, mainly Tata and Ashok Leyland.

PLC is expected to achieve Rs. 170 million in budgeted turnover monthly this year. It has branches located in Kandy, Ratnapura, Kurunegala, Matara, Badulla, Anuradhapura, Polonnaruwa and Galle.

Expo Lanka acquires iOnosphere Lanka

Expolanka Group announced the acquisition of iOnosphere Lanka, the US based Internet Service Provider last week.

Hanif Yusoof, Expolanka's CEO, who now takes iOnosphere Lanka under his wing as its managing director stated that the acquisition of iOnosphere Lanka in association with strategic US partners is another important milestone in the context of the Expolanka Group's venture into the IT industry.

Hanif already heads the group's IT related ventures: Ubizport (www.UbizPort.com) a high end software development company and HelloCorp (www.Hellocorp.com), a recent BOI approved joint venture call center operation contracted to service prestigious US clients including Microsoft and AOL.

Expolanka believes that moving into IT industry is a natural progression in its evolution as a globally focused Sri Lankan player in the services and logistics sector and sees iOnosphere as a great opportunity to provide premium service to the top end of Sri Lanka's business sector for whom total communication solutions backed by reliable connectivity and prime service is an acutely felt need.

Hanif not only views iOnosphere as a company which will fuel Expolanka's journey on the information super-highway, but also as an outfit which is ideally positioned - thanks mainly to its state of the art infrastructure, to provide target customers with the quality of service and reliability with which Expolanka is associated. Hanif, who stresses that the success of Sri Lankan companies in the fiercely competitive global market will revolve around the quality and effectiveness of internet services at their command, sees in iOnosphere an opportunity to satisfy the demand that exists for premium quality connectivity.

The Expolanka Group is globally focused and has developed strong international connections. At present it is directly represented by associate or subsidiary companies in Bangladesh, Maldives, Dubai, India, Pakistan, Mauritius and Madagascar. New ventures are continuously under consideration whilst some are in the pipeline.

The group is also constantly on the lookout globally for new opportunities complementary to its existing lines of business to be developed on its own steam or in collaboration with reputable partners.

Forty five years of diplomatic relations
between Russia and Sri Lanka

February 19, 2002, is a significant date in the history of Russian - Sri Lankan ties. Forty five years ago on this very day both countries (the then USSR and Ceylon) decided to establish diplomatic relations that boosted the speedy development of mutually beneficial bilateral contacts in various spheres.

The first ambassador of our country in Sri Lanka was V. Yakovlev, well-known Russian diplomat. His book regarding the years he has spent in Colombo, is still of much interest up to our days. The ambassador of Ceylon in Moscow at the same time was Professor Z. Malalasekera, prominent scientist, specialist in Buddhism. He was not only political representative of his country but also became well-known among intellectuals in Moscow as a Sinhala language teacher to a first group of Russian students at the Moscow State University.

But the history of Russia - Sri Lanka relations started much earlier. Russian Consulate was established in Galle in 1891. And first Russians appeared in Ceylon even in mid 19th century. One of them, Count Saltykov, visited this island twice - in 1841 and in 1845-46. This well-known traveller and non-professional artist had summoned his observations in a book published in Russia and in France and illustrated with his unique pencil-paintings. Professor Minaev, world-known Russian expert on Buddhism, "discovered" Ceylon for Russian oriental studies. His books are still unique because of their wide range of historical and ethnographical data about Sri Lanka.

In late 19th century, well-known Russian writers Anton Chekov and Ivan Bunin visited Ceylon at the end of the century. The latter having been so impressed by Anuradhapura, compared the ancient capital of Lanka with the fascination and magnificence of present Paris. One of the first notices about the Tooth Relic in Kandy was given to Russians by Countess Mescherskaya: having travelled in India she had the chance to tour Ceylon too. The island was also visited incongito by Russian Crown Prince ("tzesarrevich") during his round-the-world travel. Those visiting the Peradeniya Botanical Gardens today can easily find the tree planted there in 1891 by the future Russian Emperor, Nickolas II.

The solid base for mutual business interests was laid down in the 60s and 70s of 20th century by the package of bilateral agreements worked out and signed by our countries in spheres of trade and economy, science, technology and culture. Simultaneously, Moscow and Colombo reached the agreement on opening of air and sea travel routes and on training of Lankan specialists in the USSR.

In those years the Soviet Union assisted Sri Lanka in constructing  the metallurgical plant in Oruwella, the tire-producing enterprise in Kelaniya, milling and house-constructing plants. Since mid 70s Soviet experts began drilling for crude oil in the island. At the same time large shipments of refined oil and oil products were delivered to Sri Lanka. During the years of our bilateral relations, thousands of Lankan students have graduated from universities of my country in medicine, engineering, education, etc. In 1959 the Friendship Society with Sri Lanka was established in Moscow. The powerful impetus to the further expansion of mutual relations had been given by the visits to the USSR by the then Prime Minister of Sri Lanka Mrs. S. Bandaranaike in 1963 and in 1974.

The Russian Federation, being the successor of the USSR, has actively developed the positive interstate relations with Sri Lanka. This attitude gave the possibility to provide the continuity of Russian - Sri Lankan ties. The basis of diverse cooperation which was laid down in previous years opens vast possibilities for its further development and implementation of new forms, though there was a certain decline in it during 90s. We witness the significant productivity of our interaction on the international arena. Our countries have identical or similar approaches to solving a majority of pressing international or regional issues. Moscow highly values the Sri Lankan support for the disarmament process, preservation of the ABM Treaty, prevention of space militarisation, earlier completion of drafts of anti-terrorist treaties such as the Comprehensive UN Convention on the fight against terrorism and the International Convention on the Fight Against Acts of Nuclear Terrorism.

Good impetus to the expansion of political contacts was given by the protocol on consultations between the two foreign ministries signed in 2000 and by the meeting of foreign ministers of our countries in Moscow in January, 2001. A wide range of international and bilateral issues were discussed and a joint statement on the fight against international terrorism was adopted. In this sphere which became one of the most outstanding international issues, Russia and Sri Lanka effectively coordinated its actions on the UN and other international fora.

The sum and substance of terrorism and separatism is well-known by the own experience of both countries. The fight against this evil determines the attitude of Russia towards the solution of the long-lasting ethnic conflict in Sri Lanka. With indignation towards terrorists and with deep sympathy to the Lankan people, we in Russia got the news of the terrorist act in Katunayake SLAF base and the Bandaranaike International Airport on July 24 last year. Thus with satisfaction Moscow notes the positive changes of the situation in Sri Lanka, attentively witnesses the renewal of the peace process and welcomes the efforts of the Lankan government to halt the internal military conflict and to provide a peaceful solution on the basis of securing the sovereignty and territorial integrity of Sri Lanka.

Both countries enjoy the gradual growth of bilateral trade after its decline in recent years caused by the financial and economic crisis in Russia after the disintegration of the Soviet Union. In 2001 its volume was estimated at $ 130 million (with huge profit to Sri Lanka). Russia holds the stable position of leading importer of Lankan tea (over 48,000 tones).

Russian group of enterprises "Tyazpromexport" has supplied electrical equipment for the metallurgical plant in Oruwella and modern machinery for the tire-producing enterprise in Kelaniya. Sri Lankan businessmen are showing growing interest for the expansion of cooperation with Russian partners in investment, establishment of joint ventures, and broadening of imports from Russia. In order to expand trade and "geography" of economic cooperation as well as to lay down a good new ground for its dynamic and long-term development the Ceylon Chamber of Commerce with the assistance of the Embassy of Russia initiated the Sri Lanka - Russia Business Council.

Having been set up in August 2001, it includes more than 40 large Lankan companies and business associations. In this year a delegation of the council is expected to visit Moscow and Russian businessmen and will take part in several industrial and trade exhibitions and seminars in Sri Lanka. On the other hand a large group of businessmen from Moscow region are due to visit Sri Lanka shortly to discuss with their Lankan partners specific forms and projects of bilateral cooperation. Business seminars and the exhibition of samples of their production will also be launched. Russian tour operators are frequent guests in Sri Lanka. According to their estimation, the island can be one of the most popular places for Russian tourists in the near future.

Significant efforts are underway to update the legal basis of Russian - Sri Lankan relations. The agreement on cooperation between the Federal Security Service of the Russian Federation and the Sri Lanka Police was signed in 2001. In accordance with its provisions a group of Russian experts visited Colombo last year to assist their Lankan colleagues in establishing of a higher security system for the BIA and Colombo port facilities. A new bilateral trade and economic agreement, treaties on mutual legal assistance in criminal cases, on extradition, on transmission of prisoners, on air transportation and ratification procedure of the Agreement on Avoidance of Double Taxation are in their final stage. Draft agreement on tourist cooperation will be discussed shortly.

We witness positive trends in contacts between parliaments of our two countries. In 1997 the delegation of the State Duma of Russia (lower chamber of parliament) visited Colombo, and during this year a delegation of Lankan parliamentarians are expected in Moscow.

Russian - Sri Lankan ties in cultural and educational spheres are also expanding. Last year an exhibition of Russian artists was successfully held in Colombo. Now we are working on a new Program of Cultural and Educational Cooperation for 2002-2003. In the frames of this program it is planned to hold a vast range of cultural events including performances of Russian and Lankan cultural groups both in Moscow and Colombo. 19 Lankan students were awarded Russian state scholarships in 2001and over 200 students went to study in Russian universities on-commercial basis. The total number of Lankan students studying in Russia is more than 2000 at present.

This year we continue awarding state scholarships in coordination with the Ministry of Education of Sri Lanka. Russian Cultural Centre is successfully operating in Colombo providing Lankan children with Russian ballet and chess training, art and musical education. The first group of 30 students passed their studies at the Center of Russian language and nine of them successfully passed examinations in Russian universities.

There is no doubt that Russian - Sri Lankan relations have vast potential for further development and expansion. Strengthening of friendly ties on the basis of equality, mutual respect and partnership which is the permanent aim of both our countries, not only serve the core interests and mutual goals of our peoples but also fulfills the significant task of ensuring peace, stability and security in the South Asian region and in the whole world.

Soon my mission as Ambassador of Russia to Sri Lanka will be completed. Though I stayed here for quite a short period of time, I could sincerely fall in love with this charming island of Lanka, feel the depth and global meaning of the multinational cultural and historic heritage of its people, whom I cordially wish peace and prosperity. Availing myself of this opportunity, I also express my warm wishes to Chandrika Kumaratunga, President of the Democratic Socialist Republic of Sri Lanka and to Ranil Wickremasinghe, Prime-Minister.

- Mickhail Konarovskiy

Ambassador of the Russian Federation to the Democratic 
Socialist Republic of Sri Lanka

Eagle ends 14th year with strong financial results

Eagle Insurance has recorded outstanding results for 2001, maintaining its strong position in the insurance industry with revenues increasing to Rs. 2.7 billion, a 21% growth over the previous year in spite of challenging market conditions. There was also significant growth in profits compared to the previous year, with operating profit before restructure charges and intangible items increasing to Rs. 233 million, a 19% increase over the previous year. This year too the company returned a commendable performance with a return on net assets of 31.3%. The proposed dividend per share increased to Rs. 6.00 and earnings per share increased by 20% over the corresponding period last year.

Life business which contributed significantly to overall company performance, recorded a growth of 14% with gross written premiums increasing to Rs. 1.67 billion, compared to Rs. 1.47 billion in the corresponding period of the previous year. This achievement was due to continued emphasis on professional training of field staff and strategies adopted. Eagle created history by launching a retirement fund for the benefit of long serving, value adding members of the 'Eagle Team With Wings', with the objective of ensuring the long term financial stability of Eagle sales associates. The company believes that this would encourage further professionals, and long term commitment of the sales persons.

The company also launched another successful phase of the Eagle Investment Plan in February 2001, which recorded a premium income of Rs. 130 million. A new Life product "Eagle Sunrise Child Plan" was launched in August.

Eagle also increased the company's Life Fund by one billion rupees bringing it to Rs. 4.6 billion as at end 2001 - a 27% growth over the previous year, following the annual independent actuarial evaluation. This demonstrates the company's commitment to provide higher security to its Life policyholders. In evaluating the Life Fund, Eagle maintains internationally accepted solvency margin standards, ensuring that the company has reserves in excess of required levels.

Eagle "Insurance For Living" Life policyholders dividend declared for 2001 is 11%, a 0.5% increase over the previous year. Eagle introduced this unique concept of living benefits to Life policyholders at the inception of the company, turning a new page in the life insurance industry of Sri Lanka. Under this system a separate investment account is maintained for every single Life policyholder, enabling the fund to accumulate on a compounding basis with the annual dividends declared. Since commencement of this system, the company has consistently delivered higher dividends than the minimum rate guaranteed by the company.

Non Life business premium increased to Rs. 730 million, recording 6% growth despite a fiercely competitive market through a focus on business that adds value to all stakeholders. Three risk management products were introduced during the year - Total Risk Solutions for tea factories, the Property Business Interruption Risk Engineering Service and the Health and Safety Management Consultancy Service, offering for the first time risk management services on a commercial basis through the companies Risk Engineering Unit which has received ISO 9001 certification.

Investment income in Life and non Life business increased to Rs. 771 million, a 48% increase over the corresponding period in the previous year due to the creditable performance of Eagle's asset management subsidiary - Eagle NDB Fund Management, who were able to minimise the volatility of Eagle's customer portfolios to the adverse conditions prevailing in the capital market.

Eagle NDB Fund Management Company, a fully owned subsidiary of Eagle retained its strong position as market leader in the sector by recording Rs. 9.8 billion as funds under management as at end 2001 and recorded a profit of Rs. 9 million, a 89% growth over the previous year, overcoming a challenging year for the asset management sector.

The company invested heavily in technology during the year, installing the SAP accounting system, the "Prophet" system for advanced and efficient actuarial analysis and the "Insure 90" system for non life business, in order to adhere to and bring service to international standards. The objective of providing a speedier and cost effective service to customers was further expanded when Eagle provided lap top computers to the top sales people for use in the sales process. Eagle is also continuously upgrading its website to be one of the most interactive in the sector and it is now used increasingly by Eagle customers both here and abroad.

In another unique service offering, Eagle also enabled customers to check their policy status through the Premium Position update facility in the site.

During this period the company also successfully completed the restructure process of separating the business into two strategic business units to serve the personal and corporate customer segments. Thus, from a year of dramatic change, Eagle moved over to a year of consolidation in 2001.

As a member of the Zurich Financial Services Group, Eagle benefits from the stability and international exposure gained in the area of products and services, training and technology and systems from the parent company. Eagle Chairman Warwick Churche says, "Eagle has contributed to the global vision of the Zurich Group in transforming itself into a collaborative and empowered entity within the group's global business framework". Eagle's stability is further strengthened by the local partner, National Development Bank.

Warwick Churche, Nihal Welikala, Hermann Lischer and Eran Wickremaratne joined the board of Eagle during the year while Ranjith Fernando, Frank Schnewlin and Alan Parsonson resigned from their positions as directors.

Standard Chartered Bank opens new
'Priority Banking Center'

Standard Chartered Bank opened a new Priority Banking Centre on February 15. This latest exclusive and elegant office situated on the second floor of the Bambalapitiya branch meets the international guidelines set down by the group for Priority Banking Centres. Each customer relationship officer who handles a portfolio of clients has a private office and private telephone line so that customers can speak in confidence. In addition there is a large lounge area and a computer which can be used by clients in addition to a meeting room. Tea and coffee is also provided for all customers.

In Standard Chartered Group, Priority Banking is a personal service that recognises a customer's status and provides them with special privileges and high standards of service locally and internationally.

Customers qualify for this service when they maintain a combined balance of LKR 5 million or USD 50,000 (or equivalent in any currency) in any one or more types of accounts (current/savings/time deposits, overdrafts, loans) with the bank. Services include the personalised attention of a dedicated customer relationship officer, the exclusive Priority Banking Centre at the Bambalapitiya Branch, the Priority Card providing instant access to all Priority Centres across the Standard Chartered Group worldwide, the specially printed Priority Cheque book, in addition to special privileges on banking services.

ABE (UK) in search of 'Best General Manager/CEO
of the Year'

"We are very pleased about the launch of the 'Sri Lanka General Manager Of The Year' competition by the Association of Business Executives (UK), giving the opportunity for general managers of all public and private sector organisations to be nominated for this prestigious award," said ABE (UK), Sri Lanka Branch President and Chairman, Organising Committee, Ramesh Dassanayake at the official launch held recently at their Sri Lanka branch office.

Associated with him at the launch were ABE (UK) Founder Chairman Lyndon Jones, CEO Christine Gill, Sri Lanka representative, Preethiraj Weeraratne, Branch Council Vice Presidents and Organising Committee Members: Dammika Kalapuge (ex-vice president, marketing, DFCC Bank and presently Managing Director, Power to Change), Rumindra Ranasinghe (managing director, Marketing Services), Branch Council Treasurer and Organising Committee Member, Victor Abeysekera (manager corporate communications, SriLankan Airlines) and Secretary to the Committee, Farzan Khan Benjamin (product manager, Benson & Hedges).

Speaking at the launch, Dassanayake said that MBA (UK) Sri Lanka Branch is playing a major role in producing professional managers and providing management education leading to the MBA programme for Sri Lankans.

ABE is the only British based professional body for general management in Sri Lanka. The association, which has a global membership of well over 50,000 members was founded nearly 25 years ago in the UK and has spread its wings over the globe educating and turning young professionals into resourceful instruments of business management in two main streams: Diploma/Advanced Diploma in Business Information Systems that could build a bridge between information technology and business administration and Diploma/ Advanced Diploma in travel, tourism and hospitality to enhance strategic management leadership in all the main business areas of the tourism industry which is the most pervasive sector within the global economy.

Since the Advance Diploma is equivalent to a honours British degree in business administration, it attributes an excellent stepping stone for students planning the MBA program worldwide. Passed students of ABE (UK) are granted exemptions in many recognised professional bodies on a subject by subject basis (vice versa) and examinations are held half yearly in June and December, just as any other UK exam.

The first Millennium Honours Award was won by Ranjith Fernando who was the then GM, NDB and presently secretary to Ministry of Industries and Enterprises Development, Industrial Policy, Investment Promotion and Constitutional Affairs. He was recognised for his contribution in transforming the bank from a government owned entity to a universal bank and adopting many of the internationally accepted human resources policies.

The association also conferred honorary fellowships to four eminent business leaders in the country: Mahendra Amarasuriya (chairman, Commercial Bank of Ceylon and United Motors, deputy chairman Hayleys Group), Deshamanya Lalith Kotelawala (chairman, Ceylinco Consolidated), Ranjith Fernando (the then director/general manager, NDB) and Tilan Wijesinghe (the then chairman, BOI) in recognition of their immense contribution towards industry, commerce and economic development in Sri Lanka. The objective of this award is to recognise and honour the best business managers in the country and to boost the moral of the modern entrepreneurs towards professional management.

All public and private sector general managers/CEOs, from small scale business enterprises to multinational corporations in all industries and commerce are eligible to be nominated for the 'Best General Manager/CEO of the Year' award. The coupon for nomination will be published in The Sunday Leader, the official newspaper, in the coming weeks.

Duly filled coupons, preliminarily, should be sent to The Chairman, 'General Manager of the Year' Organising Committee, C/o ABE (UK) Sri Lanka Representative Office, No. 65 Jawatte Road, Colombo 5 by the respective personal secretaries along with a covering letter giving details such as the name, address and contact numbers of the boss as well as the secretary. A self addressed stamped envelope with 'Best General Manager/CEO of the Year' written on the top left corner should also be forwarded along with the coupon.

Upon receiving nomination ABE (UK) Sri Lanka branch will forward the official application form to be filled and forwarded for evaluation. The official closing date for receiving of applications for the nomination of the award will be 30th of April 2002. A secretary could nominate only one person for this award.

The application forms will first be short-listed by a panel of judges and thereafter the short-listed applications will be carefully evaluated by a second panel of judges. Both panels consist of well balanced and eminent team of professional industrialists, economists and academics. However, the final short listed applications will be evaluated and endorsed by UK.

University of Southern Queensland BIT 
course launched in Sri Lanka

Singapore Informatics Computer Institute launched the Bachelor of Information Technology (BIT) course from the University of Southern Queensland Australia on 19th February. The programme was launched by the Chief Guest David Binns, High Commissioner for Australia and Guest of Honour, David Fuss, International Programme Director, University of Southern Queensland.

Singapore Informatics Computer Institute (SICI) was set up in 1994, with the approval of the Board of Investment of Sri Lanka to provide computer education and training for students and corporate customers. SICI is a subsidiary company of Informatics Holdings Ltd., of Singapore, a company listed on the main board of the Stock Exchange of Singapore.

Informatics Holdings Singapore presently operates in 35 countries in Asia, Africa, Middle East and Europe and has over 400 centres worldwide and trains over 450,000 students annually.

SICI conducts the Certificate, Diploma and Advanced Diploma courses certified by University of Cambridge Local Examinations Syndicate and NCC UK, and provides students with two qualifications by sitting one exam. These courses are also recognised by over 40 leading universities in Australia, UK, USA, Canada and New Zealand for completing the final year of the degree programme overseas.

To meet the growing demand from local students who want to complete their degree programmes in Sri Lanka, Singapore Informatics City Campus launched the University of Southern Queensland (USQ) Bachelor of Information Technology (BIT) final year degree program, which will enable Advanced Diploma students to complete their degree within a period of one year in Sri Lanka. The study material will be provided by USQ specially designed for distance mode learning, supported by lectures and tutorials which will be conducted locally for the students. The students will sit the examinations conducted by USQ and will be awarded the same degree that they will receive if they studied at USQ Australia.

University of Southern Queensland is a member of the Association of Commonwealth Universities (ACU). This membership is highly regarded as a testimony to the standing of the university.

Established in 1967, the University of Southern Queensland is a fully-funded Australian University located in South East Queensland and is Australia's 12th largest university. The university is located in the city of Toowomba, some 120 kilometers west of the capital of Brisbane.

The university's focus on distance and international education has received worldwide acclaim, with over 20,000 international students enrolling with the university around the world. Students can choose to study on campus or via distance learning. Whichever mode of delivery is chosen, the curriculum, textbooks, method of assessment and degree certification are identical.

The university won the "Australia's University of the Year 2000-2001" awarded by the Good Universities Guide for Developing the e-University. It was also awarded "Best Global University for Distance Education" by International Council for Open & Distance Education (ICDE), Norway in 1999.

Annual CIMA Students' Conference

People Powered Management - The Way Forward was the theme of the Annual CIMA Students' Conference which was held last Saturday amidst a full house of more than 250 participants at the Crystal Ballroom of the Taj Samudra. The Student Conference is organised annually to provide CIMA Students with the opportunity of listening to and interacting with senior professionals from the corporate sector.

Keeping in line with the theme "People Powered Management, the way forward", four leading and prominent members from the private sector and academic spheres presented papers at this year's conference.

The Chief Guest, Dian Gomes, the President of the CIMA Sri Lanka Division presented the first paper, on how to 'Align an Organisation to Achieve World Class Standards'. This powerful presentation was centred on the successes of Slimline (Pvt) Ltd of which he is CEO and was very well received by the participants.

The next paper was by Dr. Travis Perera, Consultant in Human Resource Management at the PIM, University of Sri Jayewardenepura on Strategies through a Human Resources Development Climate. Dr. Perera explained to the audience the theoretical foundations of the previous presentation and was most informative and educative. 

Dian Gunetillake, the Group Human Resource Director, John Keells Holdings presented the next paper on Setting the Organisational Culture Right where he spoke of the need to provide practical leadership to organisations by empowering its people. He also spoke of many of his experiences in people management and the need for humanness and productiveness in the workplace. 

Sunil Dissanayake, Head of Human Resources, SriLankan Airlines who spoke on "Managing People" identified 30 competencies and practices for people management. He pointed out that these competencies represent goals for excellence to which we should commit ourselves as part of the pursuit for excellence in people management.

An interactive and absorbing open forum was conducted by the Chairman of the Panel Niranjan De Silva, the CEO of Metropolitan Computers. The welcome address was given by Rajeev Amarasuriya, the President of the CIMA Students' Society.  Gowri Shanker, the Chairperson of the Student Development Committee of the CIMA Sri Lanka Division spoke on CIMA's Role  in Sri Lanka and Janek Jayasekara the Project Chairman gave the vote of thanks at the end of the proceedings.

The Conference was sponsored by Dialog GSM and co-sponsored by ZILLIONe Systems Solutions (Pvt) Ltd. and the National Development Bank. The media sponsors were Lanka Business Report and Lanka Business Online. The Official newspaper was The Sunday Leader. The official radio station was Yes FM and the Official Advertising Agency was Grants Advertising.

LG's new Plasma Digital Display Panel Television
to be introduced shortly

A leader in innovative new products that make life easier, LG's cutting edge technology has provided yet another innovative product that provides an answer to the future of television.

LG's latest achievement is an ultra-slim, superfast digital television that provides sharp graphic images displayed on a mega size Plazma Display Panel (PDP) 60-inch screen incorporating the world's largest flat screen that outperforms all its other competitors. LG is recognised as the undisputed world leader in plasma display technology.

LG's new PDP has several amazing features that none can match. It has a 60-inch flat screen, the largest in the world. It is 78 mm thin, the first of its kind (42" & 60" models), has the lowest electrical consumption of 320 watts, and provides crystal clear images with a brightness and picture quality that no other TV can match. It is also compatible with all digital broadcasting, is multimedia entertainment friendly and has digital audio surround sound system, with 6 detachable speakers that enable convenient setup according to individual needs.

The PDP can be thought of as a descendant of the neon lamp. The term "plasma" refers to a gas that consists of electrons, positively charged particles known as anions, and neutral particles. The PDP has sometimes been referred to as a gas discharge display because it operates bypassing electricity through neon gas, causing it to become "charged" temporarily and light is produced when the gas spontaneously discharges.

Inside the plasma panel, a series of red, green and blue cells are grouped in a precise matrix. These cells are activated individually, unlike standard cathode ray tubes or liquid crystal displays. This means that they emit light individually, creating a precise pixel on the viewing area.

The main advantage of LG's Plasma Display Panels over nearly all other display devices is that it can be used as large display panels to project clear and accurate high-tech information in full colour for advertising purposes, presentations and promotions, or be used as a television.

Abans, the exclusive importers and marketers of LG Televisions in Sri Lanka will be launching their Mega Screen PDP Televisions shortly. Dialog GSM were the first in Sri Lanka to purchase Mega Screen PDP's on a special order, for the Dialog Centre at Union Place.

Alpha Furniture ISO 9002 certified

ALPHA Furniture X'clusive with the collaboration of Scandinavian and Canadian consultants established a wood working division in the year 1995 to undertake interior work and other furniture for both offices, as well as homes.

Being the largest local manufacturer of furniture to cater to the local and off shore markets, Alpha Furniture X'culsive was one of the first to obtain ISO 9002 accreditation from DNV of Netherlands. "As a result we emphasise the stringent quality assurance procedures that are in force, both on line and in the final finishes, which ensure that the products conform to the highest international standards," said company CEO, Jayampathy Arambapola.

The Alpha furniture factory situated at Mattegoda is fully equipped with state of the art machinery. The well trained and youthful workforce at the factory is geared to respond promptly to all customer requirements, while the skilled workforce with a full complement of the latest technology is capable of producing high quality furniture in the latest designs and finishes. They would convert ideas into reality with speed and commitment with world standards in mind.

Alpha's product range for interiors for both office and apartment buildings include open office range of furniture, specialised designs required by professional architects/consultants which are manufactured on Completely Knock Down (CKD) basis, while the company also offers duty free prices on the items manufactured.

With their wide experience and quality, Alpha Furniture X'clusive won the major part of the contract to do the interior office of eight floors of the BOI. The company has also won many interior contracts, which include Central Finance, Stafford Motors, Associated Motorways Ltd., Union Bank Ltd., YSR Line, and Colombo Consultants (Pvt) Ltd.

In addition to interior work, Alpha also undertakes any turnkey project in areas such as carpeting, ceiling, fabricating aluminium doors and windows etc., for new office buildings and as well for refurbishing office buildings.

HNB introduces 'Ranaviru MasterCard

As a leading private sector commercial bank, Hatton National Bank has placed strong emphasis on socio - economic development.

There is a need today to take banking to a new level that does not confine it to traditional lending products. In this context, Hatton National Bank recently joined with the Sri Lanka Army Seva Vanitha Unit in launching the Ranaviru Affinity MasterCard. This international credit card is available to the general public like any other credit card.

However, unlike any other credit card in the market the purpose of the Ranaviru MasterCard is to provide the Army Seva Vanitha Unit with a means to generate a steady income for its welfare projects at no extra cost to the donor.

A simple ceremony on the 13th of February at Army Headquarters hosted by the Army Commander marked the presenting of the first proceeds to the Seva Vanitha Unit by the bank's officials. A special donation by the bank of Rs. 100,000 - to the Seva vanitha Unit was also made on this occasion.

During the presentation, the audience was informed that on every approved credit card the Seva vanitha Unit would earn Rs. 350 - per year from the annual fee. On usage of the card, 0.1% of every transaction will be donated to the Seva Vanitha Unit. This is at no additional cost to the cardholder. So, by the simple act of purchasing your day to day needs with the Ranaviru Credit Card the cardholder contributes to a worthy cause.

In addition, the Ranaviru MasterCard holder is also entitled to the same benefits that any other HNB credit card holder would receive. These benefits include 55 days maximum interest free credit (depending on the date of purchase), competitive interest rates on outstanding balances, 107 branches at which you can make payment and special discounts and promotions.

CellSMS Valantine's Day promotion

For three young Sri Lankans, Valentines Day 2002 will be a memorable day for many years to come. Travis, Nimesha and Uditha now know first hand, what it must be like to be celebrities. The three Celltel subscribers wined and dined in style at the Hilton Colombo hosted by their dream dates.

All they had to do was to use Celltel's SMS (short Messaging Service) facility to send romantic and witty messages to the dazzling Sushma Reddy, a VJ from India's Channel V, the exquisite television star Kanchana Mendis and musician Azlan Batusha.

The stars of Celltel's Valentine's Day Promotion: (from left) Celltel Commercial Director Aniljit Singh, Nimesha and Azlan Batusha, Kanchana Mendis and Uditha, and Sushma Reddy and Travis.