BUSINESS

Pharmaceutical prices revised

The Fair Trading Commission has requested all pharmaceutical importers to reduce the retail prices of pharmaceuticals by 5.6 per cent from next month. The new revised prices will be monitored by the Commissioner of Internal Trade, and stringent action would be taken against any violations, Finance Ministry sources said.

Prior to the implementation of Value Added Tax (VAT), all pharmaceutical products were subjected to the National Security Levy. The government decided to exempt pharmaceuticals from VAT with effect from August 1, 2002. However, pharmaceuticals imported or manufactured before this date for which National Security Levy has already been paid were released to the market at prices fixed by the Fair Trading Commission after considering the levy already paid.

The recent decision by the Fair Trading Commission to revise all existing price orders issued by the commission fixing maximum retail prices of pharmaceuticals was taken at a discussion held at the Finance Ministry chaired by Minister of Finance K.N. Choksy. Minister of Commerce and Consumer Affairs, Ravi Karunanayake and Deputy Minister of Finance Bandula Gunawardene were also present at this meeting.

According to informed sources, this decision was arrived at with the concurrence of the Chamber of Pharmaceuticals Industry,  which was represented at the meeting

They also said the State Pharmaceuticals Corporation (SPC) is exploring avenues of further reducing its retail price structures.

 The private sector has not objected to the price revision of pharmaceuticals. Chairman of Citihealth Imports (Pvt) Ltd., Chandra Jayaratne said two months would lapse since the exemption from VAT and the price revision, which was sufficient time for importers to clear their stocks.

He however added that it is a misconception to believe that all prices of drugs would come down, because prices of drugs imported after VAT was exempted have already been reduced.

"When pharmaceuticals received exemption from VAT, the pharmaceutical trade and consumers expected importers to reduce prices instantly. This couldn't be done because importers had incurred higher costs by way of NSL and stamp duty", he stated.

The pricing formula earlier imposed by the Fair Trading Commission was a maximum of 73.25% over the CIF rate.

Jayaratne felt the authorities had taken a fair decision in giving importers two months to clear their stocks. He added that if good management practices are followed, the stocks should be rotated at least six times a year.

He however said it is not unusual for stocks to be held for as much as one year by certain importers. This happens because they are compelled to buy a specified minimum quantity (which is high for a small country like Sri Lanka) by suppliers who are used to dealing with buyers who give very large orders.

The normal shelf-life of pharmaceuticals is 3 years, so stocking a product even for a year will not cause problems.

Jayaratne is of the opinion that there is no need to impose price controls, because stiff competition has already brought prices down. He said prices of drugs in Sri Lanka are generally lower than in India.

Pointing out that pharmaceuticals are the only products which are still price-controlled, he called for further liberalisation of the industry. "Consumers stand to gain over the long-term if price controls are removed," he said.

Jayaratne also said it is fortunate that the dollar rate has stabilised. He noted that if and when the dollar rises, importers suffer a loss because pharmaceuticals are imported on credit terms from principals overseas.

Meanwhile, the government is also taking other steps to reduce the cost of living. Ministers K.N. Choksy and Ravi Karunanayake recently held a meeting with representatives of the Pettah Traders' Association and representatives of traders of Manning Market.

At this meeting, the ministers had stressed the need to reduce prices of vegetables and fruits in view of the steps taken by the government to reduce the customs duty surcharge, the removal of stamp duty, and reduction of bank interest rates, and the removal of the loss recovery charge on petrol and diesel. They said these concessions were made despite the adverse effect on government revenue, in order to bring down the cost of living.

China keen on free trade agreement with SL

Chinese Ambassador Qingheng Jiang said that China is keen on coming to a free trade agreement with Sri Lanka soon.

The ambassador made this comment when he paid a courtesy call on Commerce and Consumer Affairs Minister Ravi Karunanayake recently at the ministry.

Karunanayake invited Chinese entrepreneurs to visit Sri Lanka and explore the possibilities of forming joint business ventures. "We are keen on getting Chinese investments in several areas specially in the textile mill industry," the minister said.

The ambassador said that tourism is one of the thrust industries China had identified for further exploration. Sri Lankan exports to China at present are mostly raw materials, such as rubber and coconut fibers.

Karunanayake emphasised the importance of tapping the Chinese market for other export commodities as well. Importing tractors and electronic devices from China was also discussed at the meeting.

Pictured is Karunanayake having a discussion with the ambassador on exploring bilateral trade prospects.

Tea industry signs R&D agreement with University of Moratuwa

The tea industry together with the University of Moratuwa is taking steps to promote private sector funded research and development. An agreement was signed recently to begin work on an industry -funded project at the university's Engineering Design Centre. Vice Chancellor Prof. Dayantha Wijeysekera signed on behalf of the university and Vice Chairman of The Planters Association of Ceylon Rohan Fernando signed on behalf of the industry. The project is being funded through a Memorandum of Understanding between two industry bodies - The Planters' Association of Ceylon and a Trust under the aegis of the Colombo Tea Traders' Association.

Speaking at the signing ceremony, Rohan Fernando said, "This is the first time in the tea industry's recent history that such an agreement has been signed. Upgrading technology application within the industry is imperative if we are to sustain our position as the leading exporter of quality teas to the world in an increasingly competitive environment.

This project, if successful, will help that process by making technology affordable". Vice Chancellor Prof. Wijeysekera said the project was another step forward in strengthening the university-industry participation and groundbreaking in helping the university form close ties with the tea industry. "If this is successful, it will open the door for similar projects in the future. We want to work closely with the tea industry. We already have many projects in the pipeline and with the help of the industry, I believe that they can get off the ground and become commercially successful." This project emerged from discussions between the Tea Cluster and the Engineering Design Centre of the University of Moratuwa.

Legal setback for Institute of Valuers

The District Court of Colombo has dismissed the application for an interim injunction sought by the Institute of Valuers of Sri Lanka against the defendant, Institute of Real Estate. The court has also awarded costs to the defendant.

The court order is based on the grounds that the plaintiff had not established a prima facie  case; the balance of convenience is in favour of the defendant; and that there are no reasonable grounds to issue an interim injunction.

The Institute of Valuers had filed a case against the Institute of Real Estate seeking an enjoining order, an interim injunction and a permanent injunction against the defendant.

It was however argued that the plaintiff does not have special authority or monopoly to control all the valuers or valuation in Sri Lanka.

The defendant had stated that the plaintiff is responsible for the management of its affairs and for the control of the maintenance of professional standard and discipline by members of the institute and matters connected therewith and it is not a body with powers to control all valuers of Sri Lanka.

It was also stated that the legal authority granted to the Institute of Real Estate by its incorporation to conduct training classes and exams on real estate matters including valuation, offer diplomas and other certificates and grant professional designations such as 'Chartered Valuer' to qualified members has been further strengthened by the court decision.

Attorney-at-law Palitha Kumarasinghe instructed by Attorney-at-Law Mahinda Wickramaratne appeared on behalf of the defendant.

Attorney-at-Law Hugo Anthony instructed by Mallawarachchi Associates appeared for the plaintiff.

The Institute of Real Estate was established in January 2001, to fulfill the requirement of providing professional services in real estate activities in Sri Lanka.

Broadly, they cover the activities related to real estate marketing, development and management aspects.

The special degree course in estate management and valuation was started at the University of Colombo in 1972 and is presently continuing at Sri Jayawardenepura University.

This four year special degree is a professional degree established to create real estate professionals.

There are about 1000 degree holders without any opportunity to undergo professional training and obtain professional license to provide their services to the country.

About 100 of these graduates who joined the valuation department have got the membership of the Institute of Valuers of Sri Lanka.

However, the majority of the members of the Valuation Institute are those who obtained the Diploma in Valuation Certificate of the Maradana Technical College.

The activities of the Institute of Valuers is confined only to property valuation which is only a part of real estate profession.

Services of real estate professionals is a long felt need of the country and their services are required for provincial councils, town councils, municipalities and ministries such as land, finance, banks and other financial institutions and property holding public and private institutions.

Non-availability of an organisation to fulfil the task of producing real estate professionals to provide their services in real estate matters both in public and private sectors is the main factor for the present inefficient state of real estate activities in Sri Lanka.

The Institute of Real Estate was established in January 2001 to fill the gap. The institute has been duly incorporated under the Companies Act No. 17 of 1982.

Connaissance chairman counters allegations

Chairman, Connaissance de Ceylan, Chandra Wickremasinghe,  has filed his reply to a petition brought against him.

In the reply Wickremasinghe's lawyers have argued that the petition was motivated by malice and the petitioner was instigated by business rivals. It further states that the petitioner  is guilty of misrepresentation of facts.

The reply further states that the petitioner at one time had tried to take control of the company in Wickremesinghe's absence. There were also moves to separate the travel business into a separate company.

Referring to allegations of sexual harassment of staff, the reply states that one of the alleged victims had submitted an affidavit that the petitioner had spoken to him and offered better employment, and requested him to give an affidavit with allegations of sexual harassment.

Two other such victims have submitted letters stating that they  left the company not due to sexual harassment but in pursuit of better prospects. The respondents have stated that the allegations of sexual harassment have been brought to tarnish the respondent's character.

The reply also states that the petitioner had incorporated a new travel company and that the new company had entered into an agreement with a foreign firm which had defaulted Connaissance.

Janashakthi team sharpens business skills in the jungle with 'Outward Bound'

WITH the tremendous improvements brought to communications technology over the past decade, the pace the business world is compelled to move is bewildering.

Add to that the increased business opportunities brought about by globalisation - and life in the corporate world is anything but a picnic these days.

Ask anyone, from executives to directors, and they'll tell you that it's a jungle out there - so wildly hectic that the corporate sector admits that conventional methods, such as professional qualifications, courses and seminars, alone are not enough to cope with the increasing challenges.

Fast-paced commercial cities like New York, Tokyo, Hong Kong and Singapore virtually have thrown their management level personnel into the jungles. They believe that lessons in the philosophy of survival of the fittest are learnt best when grappling with nature. It has been proved that survival  skills inherited in raw nature have a positive influence on their work attitude.

The new concept to training methods in the corporate sector was introduced only recently in Sri Lanka. Quite a few enterprising minded people have set up training centres on commercial lines.

One of them is Wild Holidays Pvt. Ltd's 'Outward Bound' programme, whose training ground is the Ella National Park, a 30-minute drive from Bandarawela and 240 kms from Colombo. Ella Adventure Park is set in 1,500 acres of virgin jungle on the banks of the Kirindi Oya. The wooded mountains, the waters and the smothering foliage of the jungle pose quite a formidable challenge to the corporate adventurers.

A local private sector organisation that recently experimented with the 'Outward Bound' training course was Janashakthi Insurance Co., set up in 1995, and with a current annual tumover of over a billion rupees.

"We initially sent out 40 of our senior managers and assistant managers and their reports of the course were so good that we decided to send a 50 member team of our executives. All of them returned with a better attitude to work and a new understanding of the virtues of team spirit," said Director/General Manager, Prakash Schaffter, himself a participant.

Schaffter added that because of the vigorous nature of the training course, the participants must have a fair level of physical fitness and need to exercise caution in attempting some of the more demanding exercises.

"There in no place for false bravado when doing manoeuvers such as the aerial rope slide. Here participants hang on to a pulley as they slide down from about 1000 feet," explained Schaffter. Among the other disciplines the participants were put though were night line orienteering, canoeing, raft building, rock climbing, abseiling, etc.

Human Resources Development Manager, Genie Gunawardana explained the 'Outward Bound' training course impact on the staff. "Spending two days together in the wilds and helping each other in every situation has clearly brought the Janashakthi team closer together. There are also signs of an improvement in leadership skills and self confidence, all of which no doubt, will help in better decision-making," she said.

"The additional bonus accruing from the experience was that our participants become more appreciative of nature and are now more sensitive to environmental concerns."

AGM Marketing, Mohan Perera added, "The new mood created by the outdoor training course, I am sure will reflect in our interactions with our customers. The company's overall productivity will certainly improve."

SriLankan shifts airport offices

SriLankan Airlines recently moved its airport ticket office and passenger service unit, which was located in the departure terminal of the airport, to a more accessible location at the entrance of the Bandaranaike International Airport.

"The new location of these two offices at the airport entrance makes it far easier for customers and the general public to visit them," says Senior Manager (Sri Lanka and Maldives), SriLankan Airlines, Chandana De Silva.

Both offices are open round-the-clock. The passenger service unit attends to customers who need special handling such as passengers needing wheelchair assistance and unaccompanied minors.

"In relocating the passenger service unit at the entrance of the airport, all passengers needing special handling have easy access to the services provided for them by airport service. This adds to the efficiency of our operations," says Manager (Airport Service Delivery), SriLankan Airlines, Ingrid Guruge.

The airport ticket office attends to inquiries, reconfirmation, and last-minute ticketing. "Now, arriving passengers who wish to reconfirm their flights need not go to the departure terminal to do so," said De Silva.

Apart from the ticket office at the airport, Sri Lankan has two tickets offices in Colombo and one each in Kandy, Galle, Ratnapura, Badulla, Kurunegala and Dambulla and plans to open offices in Jaffna, Vavuniya and Batticaloa.

Study in University of Sydney

You get the good. And the really good. And then you get the best. And when it comes to a crucial thing like education, especially higher education, it is always wise to go for the best.

If you're thinking of studying abroad, and if it's the land of kangaroos and boomerangs that has grabbed your attention, then the University of Sydney is definitely an option worth considering.

Ranked as one of the top eight universities in Australia, it has a history of over 150 years. It is in fact considered one of the oldest and largest universities in Australia. What begun in 1852 with three professors and 24 students on a single degree course in the Faculty of Arts has today 160 professors and 37 000 students, 10% of whom are from overseas. It is world renowned for research, scholarship and for producing graduates who are leaders in their respective fields.

The University of Sydney offers undergraduate and post graduate courses in 10 broad fields including agriculture and animal husbandry, architecture and building, arts, humanities, social sciences, business administration, and economics, education, engineering and surveying, health, law and legal studies and science and veterinary science.

Thushara Fernando, undergraduate coordinator for the University of Sydney, speaking to The Sunday Leader said the university boasted a student: teacher ratio of 15:1 whereas the national average was 18:1. She also said that the number of applications numbered at over 20,000 per year.

The Sydney University has a well-established reputation both locally and internationally for the quality of its teaching and research. It has a rich diversity of courses, but especially in demand are the wide variety of own disciplinary degrees and combinations of degrees. The university also offers a foundation program for the smart folks out there who seek an accelerated pathway to a degree after one year's studies at GCE advanced levels.

A recent survey of first year undergraduate and postgraduate students highlighted strong satisfaction with courses at the university. More than nine out of 10 respondents said they found their courses intellectually stimulating and 86% agreed that their experiences at the university were satisfying. The range of helpful student services together with the cultural diversity of campus life with many venues for socialising, numerous clubs and societies makes student life all the more interesting.

Sydney graduates have established distinguished careers in all sectors of society in Australia and all over the world. Thushara said the university has produced several Nobel Prize winners. She added that more than half of Australia's prime ministers are also graduates of the university.

The University of Sydney recently appointed Edlocate (Pvt) Ltd. as the official representative in Sri Lanka. The new appointment is in recognition of the outstanding contribution that Edlocate has made in promoting Sri Lankan students to Australian universities. With this new appointment Edlocate represents four of the eight top Australian universities.

Students can now enter top universities in the states of New South Wales, Victoria, Australian national territory or South Australia through Edlocate. So for those of you lucky enough and smart enough to enter the prestigious University of Sydney, or one of the top eight for that matter, Bon Voyage - a great life ahead is almost a guarantee!

Tender controversy

Attempts are allegedly being made by interested parties to award a tender under the Coastal Resources Management Project (coastal stabilisation works - part A) to non-responsive tenderers.

The tender closed on July 4, this year. It is alleged that offers made by Hojgard A/S and E. Pihl & Son A/S have major deviations.

The offer from Hojgard A/S is non responsive as they have not even received minimum marks for any of the major listed categories such as major construction equipment, key personnel, method statement, etc.

This clearly shows that the bidder has no understanding of the magnitude of this project and has made a non-responsive offer.

The bidder has not shown any technical capability to carry out this project with the given information and it is even very clear in the Danish consultant's report that this bidder's offer is non responsive and should not be considered.

The offer from Pihl & Son A/S also has a major deviation with respect to their work programme, where they have not even received the minimum marks. There is also a major deviation with respect to their proposal to carry out the dredging and beach nourishment (this is also applicable to Hojgard A/S), where they have proposed to use a Danish sub contractor where the capacity of the suggested dredger is only 2600 M3, which is less than half the capacity when compared to the proposed dredgers by the other bidders.

In order to complete the project within the required time period, they have also proposed for the dredger to work during the south west monsoon.

It is a known fact that during the south west monsoon period dominated by rough seas, no dredging can take place with even larger dredgers.

All reputed dredging contractors including all who have had previous experience in dredging in Sri Lanka have stated that they will not dredge during the monsoon period in their offers, as it is a well known fact that it is impossible to dredge during the monsoon.

There is obviously a large cost difference between mobilising a large dredger and a small dredger and it seems that these bidders have only nominated a dredger and suggested dredging during the monsoon period, to overcome and try and comply with the bidding documents and specified time schedules without any understanding of carrying out work during the monsoon and experience of same in Sri Lanka.

Furthermore, they propose to use a sub contract for dredging. The dredging sub contract is almost 50% of the project value and a critical component of the work and the proposed sub contractor also has no previous experience in working in Sri Lanka.

This puts huge risks on the implementation and completion of the project. Even the Denmark consultant has made reservations with respect to the reliability of the dredgers aspect of this tenderer.

It is also a known fact and as repeatedly reported in local newspapers and other media, the coastal lines within the project area is heavily eroding and gets washed away day by day and trees, houses and buildings damaged and the life of local fishermen being threatened.

Any delay in completing this project will be a severe burden to these affected people. Therefore, the reliability of the dredging method is critical in this aspect.

Although the first report made by the consultants have turned the bids received by Hojgard A/S and Pihl & Son A/S is non responsive, due to the above given facts, it is reliably understood that interested parties have sought clarifications from these two tenderers for them to now try and comply with the tender and project requirements.

It is important to note that according to Government Guidelines and Government Tender Procedures Revised Edition December 2000, the project director is only authorised to clarify from bidders on behalf of the TEC, as being consulted in these instances. It is also clearly stated that requests for clarifications from tenderers shall not permit or facilitate changing the substance of the tender. The same subject is addressed in ADB Procedurement Guidelines, clause 2.41.

It must be stated that this is totally unjust and unfair by the other tenderers who have offered the correct method to execute the project using correct equipment with a proper understanding of the project and scope of work and it is also very irregular to get clarifications from non responsive tenderers. It is hoped these matters would be considered when the bids are evaluated.

Four A's launches education programme

The Accredited Advertising Agencies Association, the professional association of the advertising industry, is launching a varied educational programme aimed at fulfilling its role in attracting new blood to the industry and keeping ad people primed with enhanced skills and new thinking.

The Four A's is now engaging in a number of activities for the benefit of the industry and its members," says President, Four A's, Kenneth Honter.

"Our own education and continuing professional development programmes this year will take pride of place with a number of formats ranging from seminars and residential workshops to evening meetings, debates, and panel discussions in addition to joint programmes with SLIM"

The first of a series of programmes to be worked out over the next  few months, is aimed at providing school-leavers with an insight to the various careers in advertising and the aptitudes required. "The advertising  industry has always been a high profile industry due to the ubiquitous nature of advertising and its power in fuelling economic growth. The increasing shift towards a knowledge economy makes communications a very challenging and rewarding field for young talented people," says Nimal Gunewardena, who chairs the Four A's education committee. "The ad industry has had an insufficient pool of fresh talent, and we are keen, as the industry body, to enlarge that pool by showing young people interested in marketing, communications and creative careers the kind of jobs that are in advertising."

A number of hands-on professionals from leading advertisement agencies will speak on careers in brand communications and client relations handling, media planning, art direction and copy writing, audio visual and print production, pubic relations, and event and promotions management.

The half day seminar will be held on September 28, at the BMICH and will start at 9:00 a.m. The seminar is sponsored by the Synergy School of Marketing. Tickets, nominally priced at Rs. 200, are available from the Four A's agencies and the Synergy School.

J.L. Morisons markets yet another international product - Lexi pens

J.L. Morison Son & Jones (Ceylon) Limited, established in 1929, is today a 100% Sri Lankan owned company and is in the forefront of the commercial sector as one of the leading distributors in Sri Lanka of both FMCG & pharmaceutical products.

They have many international brands in their portfolio with 4 channels of distribution. J.L. Morisons also have their own production facility for pharmaceuticals and some propriety consumer products. The company is proud to be associated with the renowned 'Lexi' writing instruments from India, which is a leading brand in this category said Sales Director, J.L. Morison Son & Jones (Ceylon) Limited, Sunil Deheragoda, speaking to The Sunday Leader.

Explaining further, he said the latest 'Lexi' ball point pen manufactured by Lexi Pens (India) Pvt. Ltd and branded as Lexi5, was recently launched in Sri Lanka.

National Sales Manager, J.L. Morison Son & Jones (Ceylon) Limited, Andrew Dawson, stated that the company first introduced 'Lexi' pens to the Sri Lankan market in November 2001, and added that the product has placed itself as one of the leading brands in the market, with an objective of gaining the No. 1 slot in the near future.

The Lexi5 pen, which comes in a grip-friendly design is available in blue, black and red colours. It is considered a technical breakthrough as it is designed with a special 'instaflow' technology and possesses a special nickel-silver tungsten carbide balltip with high quality water proof ink that ensures smooth and smudge free writing. All Lexi products are manufactured on sophisticated, state of the art, micro processor controlled molding machines from USA, Japan and Austria, which guarantees high quality and consistency.

He went on to say that a distribution network that is moving towards a 25,000 to 30,000 sales outlets mark guarantees the availability of 'Lexi' pens island wide.

Brand Manager, J.L. Morison Son & Jones (Ceylon) Limited, Mangala Perera explained that one of the unique selling points of Lexi5 apart from those already mentioned, is its price of Rs. 10, which is absolute value for money.

Explaining further, Perera stated that 'Lexi,' which is an internationally recognised brand, has been conveniently priced for easy affordability. He also stated that they hope to consolidate on the 'Lexi' product range with a prime objective to make 'Lexi' the No. 1 brand among pens in Sri Lanka and then to introduce the whole range of 'Lexi' writing instruments to Sri Lanka.

Deheragoda said that J.L. Morisons are also the agents and distributors for leading international brands such as the Sustagen nutritional product range of Mead Johnsons, Kiwi shoe, floor and general care products, Brylcreem hair care products, Good Knight mosquito coils, mats, liquidators, household insecticides, Nivea creams and lotions, Canderel low calorie sweetener, Super Max razors and blades, Wintogeno analgaesic cream, Evion vitamin E cream, Axe pain reliever oil, Doctor Baby range of baby care products, Hansaplast medicated plaster and also Morisons Grip mixture, Valmelix herbal cough syrup and drops, Lacto Calamine powder and lotion in addition to 'Lexi' writing instruments. J.L. Morisons is also involved in agro chemicals, orthopaedic products, pharmaceuticals and diagnostics.

Transport solutions from OMCL

Orient Motor Company Ltd (OMCL), a fully owned subsidiary of United Motors Lanka Limited, opened their first showroom at No. 100, Hyde Park Corner, Colombo 2, in September 2001.

This showroom now offers a variety of transport solutions that would meet customers' requirements. You can now walk into OMCL and talk to their staff who will assist you to resolve any of your transport needs.

You could also trade-in your used vehicle for a brand new Mitsubishi. They will trade-in any brand so all you have to do is 'drive-in' in your old vehicle and 'drive-out' in your new Mitsubishi vehicle.

Apart from sale of vehicles, OMCL offers hiring - which is a part of its core business in providing transport solutions to corporate clients. OMCL ventured into this business as there is a growing demand for outsourcing of vehicles in the corporate sector. You now don't have to worry about blocking millions on a fleet of vehicles, all you have to do is contact OMCL and they will tell you how you could drive a company maintained vehicle without your company maintaining it.

OMCL also markets pre-owned vehicles imported directly from MMC International (the trade-in arm of Mitsubishi Motor Corporation, Japan) that have been hand-picked by its own management personnel. Most of the current vehicles on display are the new introductions to Sri Lanka, which are of genuine low mileages. These vehicles are also covered by a six month (or 10,000 kms, whichever occurs first) warranty. United Motors Lanka Ltd., assures spare parts availability for all pre-owned vehicles imported by OMCL.

The other service that is becoming very popular is the brokerage. All vehicles displayed at the showroom have gone through a strict quality assessment test and the prices of the vehicles are determined on their condition, having undergone an independent valuation by a professional. Thus OMCL is not merely a place to buy vehicles, but is your transport solution provider.

150 million return from Touchwood corporate package

Touchwood Investments Ltd (TIL) commenced operations in Sri Lanka three years ago with the mission to help stop the destruction of rainforests by growing commercially valuable and environmentally sensitive trees while providing financial stability to people for their retirement or children's future needs.

Successful commercial operations over the last three years have resulted in Rs. 90 million being invested by the public in Touchwood mahogany retail investment plans. The company has now decided to offer an opportunity to the corporate and high net worth customers 800 trees (5 acre) and 160 trees (1 acre) investments plans, which give a return of Rs. 150 million and Rs. 40 million respectively in 17.5 years. This is a perfect investment opportunity for corporate and high net worth customers that can now set off long term liabilities.

Touchwood currently offers the best investment option for the long term, as the rate of return does not change over the investment period of 17.5 years, at an average rate of return is over 23.5% per annum compounded. This type of return tops any other investment instrument in the market today.

TIL's goal is to plant and harvest 2000 acres of mahogany on a 17.5 years cycle, establishing 120 acres per annum. The type of mahogany grown is Swietenia Macrophyla, commonly known as big leaf mahogany, and is in high demand internationally. Sri Lankan grown mahogany is now recognised as among the world's best quality and easily marketable internationally.

When a customer decides to invest in TIL Mahogany Plantations, a legally binding agreement is signed between the customer and the company, outlining both parties' obligations from the onset.

Then the customer receives an investment certificate which is tradable and transferable and the certificate gives the right of ownership to the trees detailing the lot number, tree numbers, location of the trees and ownership of the land thereof during the investment period. Deed of transfer to the land is given to the customer as a collateral. To meet any contingency, an additional 20% of total acreage is planted as buffer stock plus 100% extra trees within the customer's lot. As an additional precautionary measure, trees are insured against agricultural and political risk.

At present, TIL manages four plantation sites in Ayagama, Eheliyagoda and Matugama areas totaling 300 acres and have planted over 60,000 trees. All trees in these sites are given professional care by young forestry and agricultural graduates, who are trained by our local and international forestry experts.

Unemployment, whose problem?

By Dinesh Weerakkody

Like peace, unemployment has been the dominant economic issue in Sri Lanka over the last decade and certainly one of the most critical problems facing our country. But, so far neither party has been successful in dealing with it effectively.

Over the years high inflation, weak reserves, heavy government expenditure on defence and poor economic growth has made the situation worse. It is scary, if the economy putters along at its current rate of 3% growth, the ranks of the unemployed could swell. The UNF should focus on the unemployment problem and create new jobs for those unemployed with a sense of urgency.

The unemployed will not wait hoping that the promised economic growth at some future date would take care of their unemployment problem. While we all agree that economic growth is the effective long term strategy for reducing unemployment, the problem however of eliminating unemployment through growth takes time. Furthermore, the unemployed and those suffering from malnourishment do not have time. To deal with such situations some countries initially got their construction industry moving.

They realised that the easiest way to create jobs was to promote economic infrastructure and that would in turn attract top foreign investors and that would create more jobs for their people. People will no longer wait in silence till the nation's coffers fill up or accept that development is retarded due to lack of funds. Neither will they wait in patience till the development process starts.

Mindful

The two main political parties generally become mindful of the jobless during an election and wake up to the plight of the unemployed by promising the moon and the sun. Our politicians forget that unemployment is a ticking time bomb. The economy is growing at less than 4%, hardly adding any new jobs.

If this continues, we'll add at least another few millions unemployed in 10 years. No government so far has shown the courage to bite this bullet. To eradicate it, we need rapid economic growth and tough reforms. Over and over again, all major political parties have vowed to deal with the unemployment issue.

However, so far, neither the PA or the UNP in the past have dealt with this issue effectively, despite the fact that there are certain characteristics in our unemployment which is socially destabilising and explosive. According to statistics, the unemployment rate for the age group 15-24 years is between 32% and 38%, and it seems to be getting worse.

However, today the prospects for the long term unemployed looks bright under Ranil Wickremesinghe. By all accounts Wickremesinghe is thinking clearly, therefore he needs to get his team to implement the plans he has developed in the last six months.

Economic Growth

The only answer lies in rapid economic growth with employment oriented management training and labour reforms. However, economic growth of 8% to 10% sustained over seven to eight years is needed to absorb both the backlog of the unemployed as well as those entering the labour market.

But even rapid growth of this type will take time to absorb the unemployed, therefore, the crying need of the hour is a plan of action which can be set in motion within the shortest possible time to provide employment for the unemployed youth to mitigate some of the social and human costs of high youth unemployment.

Employment generation

In this context, despite there appearing to be some focus in discussions and debates in relation to development strategies on the question of employment generation, attention so far has been sharply directed to the need for peace. While we all understand the intersections and synergy between peace and development and also as a way to eliminate the barriers that inhibit rapid productivity and investment flows, what about unemployment and poverty alleviation in the short-term?

It is estimated that  over 1 million people are unemployed and under-employed. The ministers and the president must realise that a stable society cannot be sustained where  such a high level of unemployment and underemployment persists.

Today everyone agrees that unrest is fuelled by unemployment. As I said before, today the unemployed youth due to social pressures will not wait with patience hoping that the benefits of the development process will eventually reach them and they will get gainful employment.

Solution

No measure so far proposed can produce jobs for those unemployed overnight. A solution in the short term may be for the work and wages created by buyers be shared between employed and unemployed. In application this means a reduction in working hours and wages in every place of work so as to make 'space' for the absorption of those who are unemployed in a national extension of a normal industrial procedure.

The overriding fact is that a few millions have jobs and over million people have no jobs. It is the size and relative performance of the work shortfall that itself indicates where the solution lies and the imperative need to apply.

The essential test of any proposed solution is the number of 'permanent jobs' that would be created in weeks rather than years. The fact remains that work and wages come from one source only namely the customers and from nowhere else. There is no prospect of an increase in purchase by customers (including government) within the foreseeable future sufficient to provide jobs for those unemployed. A job would mean a share of the total work load created by customers.

It is the amount allocated to an individual through a variety of influences. The number of hours worked and the wages attached to those hours constitute a recognised job. So in this context should we need see substantial changes in response to changing conditions? That is working hours being reduced in order to respond to the work load from time to time.

Provide

The reality is that our agricultural sector has no room for the unemployed. Part of the manufacturing sector has discovered the advantages of automation.

Small industries are in no shape to create jobs. And the services sector will not, as is widely expected, create all the jobs the country needs. Therefore, the only way to provide quick jobs for those unemployed is to share the available volume of work and wages between the employed and the unemployed.

So for example, a 40 hour week reduced to about 30 hours a week. The reduction can be in stages. The cure for unemployment will be by the employed sharing the work now available and accepting a reduction in their present standard of material living.

But the question posed by many people is "for how long?" Research studies on absorption as a cure for unemployment indicate that there are no insurmountable practical difficulties in absorbing into full time employment those now unemployed during an adjustment period up to three years or so, no other solution can assure this result in a short space of time.

Research also suggests that subsequent to the first stage of absorbing the unemployed and in response to a reduced work load a reduction of hours instead of numbers employed would result. Such a policy of varying hours therefore becomes a safeguard for all employees.

Difficulties

There are no doubt practical difficulties in this concept. For one thing, many jobs cannot be shared with one another. The proper person for the job may only be you. Most people rarely make ends meet with their present salaries.

However, while our knowledge in this area is far from complete recent research suggests a number of remedies. Most would have some form of success and are not to be disregarded. However, it should be tested by the following five questions for its practical reality.

a. What is the cost and source of funds?

b. How many permanent jobs will be created?

c. What degree of certainly are the claimed results in practice?

d. When will the jobs start?

e. Where will the jobs be located?

Perhaps the most critical issue of all is that there will be a need for objectivity in the decision making process where many sources of opinion are being combined to generate plans. Hence there is no place for unsupported prejudice, challenges to the assumptions and prejudices are bound to arise. Settlement of these disputes will necessarily call for unbiased evidence.

A remedy proposed by economists is to increase sales worldwide. However, with prevailing political instability around the globe no rapid increase on work load is likely in the short term.

Economic Strategies

A few development strategies on the question of employment generation that can be pursued in the short term, would be to,

a. Improve efficiency, reduce cost, match foreign competition with price and quality and thereby increase sales and jobs. This is the most urgent task for both managers and work force.

b. Change government policies to create work. A government is a huge customer for both goods and services. However, one must not believe that a government can increase the demand for work so as to reduce significantly the level of unemployment. But a government can certainly take measures which will have an indirect effect ie such as reducing bank rate, providing cheap loans and subsidised credit for development programs.

c. Increase government expenditure on public enterprises. A government can have a direct effect by increasing its own purchases particularly through project investment. However, funding these projects require years than months.

d. Lower retirement ages. Early retirement must not however, be made compulsory but it can be made financially attractive.

e. Reduce the number of married women in employment. Any proposals would no doubt attract immense opposition.

f. Reduce overtime. This reduction could make jobs available. However, such reduction would be effective only in the spirit of the whole program.

g. Relocate business industries and services. Very necessary in very high unemployment areas.

h. Provide flexibility to employers to use seasonal staff and to deal with unproductive staff.

j. Promote labour friendly policies.

k. Promote the private sector to undertake massive infrastructure projects by giving generous concessions.

Implementing

A problem of implementing an Unemployed Absorption Program (UAP) will no doubt lead us on to believe that everyone should make a sacrifice to create conditions in which work can be shared. But, in reality an UAP would be seen as a practical application of the principal of personal sharing what we have with others in need.

Today, there is unemployment in the south of Sri Lanka which needs the attention of the affluent in our society. The uprising in the south of Sri Lanka in the late 80s was no doubt a direct result of desperate human needs, fear arising through a lack of jobs in the country and above all the increased economic inequalities accompanied by its vulgar display.

If the intentions of the government are clear, perhaps the much needed response for sharing will flow from the majority of the population and from them will come the pressure on trade unions and employers to support the government. Finally, the private sector has, of course, a crucial role to play in promoting employment. It will indeed do so only if it finds the investment climate is right.

Therefore, it is the government's duty to remove the shackles which prevent the business community from creating more jobs. Furthermore, if the private sector is the engine of growth, the government agencies must be asked to come up with strategies for supporting the private sector development initiative.

•  Ron Kaufman and Omar Khan come together for the first time in SL

Catch the unbelievable duo on the same platform

It's going to be one unbelievable day of inspirational insights and tons of fun, when two of the world's most beloved teachers of corporate and personal transformation, Ron Kaufman and Omar Khan come together for the very first time in Sri Lanka.

When it comes to re-inventing organisational value and provoking new levels of achievement and possibility, no one does it quite like Omar Khan, the mind, heart and spirit possibility wizard. He returns to Sri Lanka in a 2002 breakthrough manifesto for leading edge organisations.

Together, Omar and Ron have drawn on their combined quarter century plus worth of experience in catalysing and coaching to bring together a presentation on identifying and shifting the personal paradigms that make us who we are and can pave the way to what we wish to become..... An unbelievable success!

Don't miss out on your chance to be a part of this unprecedented service leadership and personal opportunity on November 2, at the Lanka Oberoi.

For more information, contact Sensei Lanka (Pvt) Ltd., on 075 551 554 or 075 378013.

JKI announces start of third full BTEC HND batch for 2002

The John Keells Institute has announced the start of the third full BTEC HND batch for this year. The BTEC Higher National Diploma (HND) in Computing from Edexcel, UK offered by the John Keells Institute (JKI) has gained an overwhelming response by the Sri Lankan public. The batches launched in June, July and September were full well before the commencement of the program.

The HND students passing out from the John Keells Institute, with the required merits, are guaranteed of direct entry into the final year of the BSc (Hons) Applied Computing Programme conducted by Northumbria University in the UK, through the articulation agreement that JKI has entered into with this British university.