BUSINESS

SLSPC-JEDB unveil plans to achieve profits

By Asgar Hussein

The loss - making Sri Lanka State Plantations Corporation (SLSPC) and Janatha Estates Development Board (JEDB) have unveiled plans to achieve profits in the near future.

An important proposal in this regard involves leasing their worst - performing estates to the private sector. Eight estates have been blamed for the losses suffered by the SLSPC and JEDB in the past. The accumulated loss of these estates since 1995 is as high as Rs. 345 million.

Chairman of SLSPC and JEDB Dharshan Jayanetti said that if the estates had not performed so poorly, they would have recorded profits in the past.

Since 1995, the two institutions had suffered losses amounting to Rs. 115 million - Rs. 72 million by the JEDB and Rs. 43 million by the SLSPC. However, their eight worst - performing estates alone had recorded a much higher accumulated loss of Rs. 345 million during this period. This clearly indicates that the two state bodies would have achieved profits amounting to Rs. 230 million had it not been for the eight estates.

These include the three SLSPC estates of Opalgalla-Gammaduwa, Harepark and Waitalawa-Woodside and the five JEDB estates of Monte Cristo, Mount Jean, Gallebodde, Deltota and Galaha.

The accumulated loss of the three SLSPC estates since 1995 is around Rs. 223 million. The breakdown is as follows: Opalgalla-Gammaduwa (Rs. 76 million), Harepark (Rs. 61 million) and Waitalawa-Woodside (Rs. 86 million).

The accumulated loss of the five JEDB estates since 1995 stands at around Rs. 122 million. The breakdown is as follows: Monte Cristo (Rs. 23 million), Mount Jean (Rs. 17 million), Gallebodde (Rs. 31 million), Deltota (Rs. 30 million) and Galaha (Rs. 21 million).

Jayanetti said local investors have pledged over Rs. 12 million as lease payments per year for six of these 'C class' estates. These will be given on a 50-year lease, and the annual payment will be revised every five years based on the production costs, net sales average and wage rates.

The Mount Jean estate has already been leased out, while the Galaha estate is the subject of a legal wrangle.

The 12 'B class' estates will also be available for leasing or joint ventures. The SLSPC and JEDB shortly intend calling for expressions of interest from the private sector, which will be required to inject the necessary investment.

The well - performing 'A class' estates will be upgraded with the monies generated from the other two categories. "We will upgrade them to be on par with those run by the private sector," said Jayanetti.

He also predicted that both the SLSPC and JEDB will start making profits by March next year.

Jayanetti claimed that they have initiated measures to eliminate mismanagement, fraud and corruption as part of their efforts to be transformed into profit-making institutions. Disciplinary and legal action has already been taken against senior officers found engaging in such activities. Audits are now conducted and regular inspection by directors and senior managers takes place. Jayanetti, who was sworn in early this year, alleged that proper accounting and auditing had not been undertaken for the past four years.

The rampant felling of trees in lands owned by the SLSPC and JEDB has also been controlled. The two institutions possess vast reserves of timber valued at around Rs. 800 million.

In mid-October, the JEDB will launch a new brand of tea - Jana Tea - at an economical price. A notable feature in this regard is that an arrangement had been entered into with the National Lotteries Board whereby scratch lotteries will be inserted into packs as a means of promotion.

Jayanetti said they also intend signing an agreement with an American buyer who has offered a guaranteed price of two US Dollars per kilo for their tea. This buyer - who has connections with a prominent U.S. chain of supermarkets - will be required to invest three million US Dollars in a state-of-the-art tea bagging facility in Sri Lanka.

Company registration on-line 

Registering a company, which was a tedious process in the past, has now been made easier.

The Department of the Registrar of Companies has facilitated the entire registration process via their new web site- www.drc.gov.lk. Dubbed the Company Registration System (CRS), the process is designed to provide all the necessary information on a single site, along with the capability to carry out the registration process itself on-line. The registration process is simplified in that every form available on-line comes with a comprehensive guide on the format in which it should be filled out and a clear set of guidelines on the registration process itself.

This project was undertaken as part of the 100-day programme initiated by Minister Ravi Karunanayake. It has resulted in Sri Lanka becoming one of the first countries in South Asia to implement the process for the incorporation of companies on-line.

The Department of the Registrar of Companies is the first government organisation to opt for an on-line payment gateway which enables those visiting the site to make all necessary payments by using their credit cards - a facility provided for them by Sampath Bank.

The project was spearheaded on the IT front by E-W Information Systems. CEO, E-WIS, Sanjeewa Wickramanayake said the site itself contains 11 main items on the home page. They are home, purview, search, all companies, act, registration procedure, download forms, request name, pending approval, about DRC and contact us.

The home page provides a list of related links as well as a quick guide to using the facilities offered through the site in the form of searching for and reservation of company names.

The purview page contains information on the objectives and main functions of the Department of the Registrar of Companies along with a listing and description of the legislative enactments, which are its duty to enforce and implement.

From the search page onwards comes the real operational, interactive part of the site which will benefit requestors. These pages deal directly with operational procedures governing the registration of a company as well as the types of requests that can be made through the CRS.

There are three types of requests you can make online;

1. Name approval.

2. Name approval and incorporation by members

3. Name approval and incorporation by capitol.

Wickramanayake said that under normal circumstances, a person wishing to register a company has to go to the department and fill out a form requesting a name search, which takes about a week. "With the online process, you can search the available database of names yourself to find out if the name of your choice is already taken. You can search for company names beginning with a given word, containing any one given word or containing all given words. The comprehensive database for this search contains all registered company names, approved company names as well as names pending approval. If you have any doubt as to the legality of using a particular word in a company name, you can go to the 'act' page of the site and check up on it as applicable under Section 19 of the Companies Act No.17 of 1982," he added.

The request for a name can then be filled out on the form provided on the site itself and you can pay your name approval fee using the payment gateway provided by Sampath Bank. The request company name form (A 16) requires some mandatory information such as presented by, address, e-mail and telephone. There is a special addition to this form. You can get your request processed with 24 hours simply by filling out the relevant section of the form. You can even submit a draft copy of the memorandum and articles of association at the same time as the request for a name. This could of course be done at a later date when the name has been approved. If there are any discrepancies or issues about the way in which the forms have been filled (for example the inclusion of initials in the name might cause them to ask what it stands for), the public information counter of the department can make a request via e-mail and settle the matter speedily.

The true value of the system lies in the fact that it greatly reduces the processing time of application forms and requests, thereby saving the valuable time of requestors as well as streamlining the entire registration process and making it easier for even a layman to accomplish his task with relative ease, thanks to the guidelines provided on the site itself.

Ambitious plans to enhance national image

The new Head of Corporate Communication, SriLankan Airlines, Chandana de Silva has ambitious plans to promote the image of the country as well as the airline.

He is now in charge of the important areas of public relations, media, advertising, promotions and crisis management.

De Silva assumed duties in his new position on October 1. He was previously manager (Sri Lanka and Maldives) for SriLankan Airlines.

According to him, their PR and promotions will pertain to promoting the island as a tourist destination. He praised ministers Tilak Marapone and Gamini Lokuge for having a good understanding of their respective spheres of aviation and tourism.

He added that these two ministers have been very cooperative and they enjoy a very cordial relationship.

He also stated that they have discussed with Minister Marapone about improving the facilities at the Katunayake airport, and to streamline the processes so as to facilitate the arrival of visitors into the country. It is hoped to base these improvements on the Singapore model.

"SriLankan Airlines will work hand-in-glove with the government to uplift the image of our country," said de Silva.

He pledged that the airline and particularly its corporate communication division will provide assistance in the form of travel arrangements whenever required.

De Silva also intends establishing a closer rapport with the travel trade. He hopes to work closely with the Travel Agent's Association, Hoteliers Association and the IATA Agents' Association. This would not be a difficult task, considering the fact that he has been associated with the travel industry for around 20 years.

He said that together with the Ceylon Tourist Board, they are going to synergise and strategise. He added that they are looking at how SriLankan Airlines "is going to be the preferred carrier to travel to our paradise island."

Four years ago, when de Silva assumed duties as the manager for Sri Lanka and Maldives, he said the airline will win many awards. His prediction has come true.

In 2001 and 2002, they were presented the award for 'Best Airline of the Year in Central Asia.'

"Our airline will reach greater heights in the future," asserted de Silva.

According to him, this year has been a very critical year for Sri Lankan Airlines. In fact, for the first time since 1985, the airline made a small profit on a stand-alone basis in July and August, and achieved a record seat factor. "This shows the ability and commitment of our commercial team headed by G.T. Jayaseelan," he said.

The airline is also planning to inaugurate flights to Germany (Frankfurt) somewhere in December. They are also considering inaugurating flights to Italy and China in the not-too-distant future.

De Silva said his job has been made easier due to the efforts of Prime Minister Ranil Wickremesinghe in ushering peace into the country.

He however noted that the future performance of SriLankan Airlines is dependent on how the peace process progresses and the volatile situation in the Gulf.

He pointed out that following the September 11 attacks in the US, the number of Japanese visitors to Sri Lanka and the Maldives declined. Such is the sensitivity to incidents of violence in certain markets.

"Our forward bookings are looking good. This paints a positive picture where tourism is concerned," said de Silva.

He added that this year, more emphasis will be placed on attracting high-spending tourists.

In fact, discussions have been held with Minister Gamini Lokuge and Chairman of the Ceylon Tourist Board, Paddy Vithana as to how they can cater to up-market tourists and how to sustain quality service if their numbers increase.

De Silva also noted that the export and movement of cargo has risen over the last three months. Until then, cargo (both locally and globally) had suffered a slump.

He said they have decided to conduct a joint PR campaign with their partner Emirates in order to promote the peace process in the country, and consequently promote tourism in a significant manner.

SriLankan Airlines will also be involved in major sports events such as golf, surfing, rugby and cricket.

De Silva said the International Rugby Sevens held in Kandy was a great success, with around 15 foreign teams participating. He added that next year's event is scheduled to be held in September 2003.

This event will be promoted by Malik Samarawickrema and Priyantha Ekanayake. Teams from Australia, New Zealand, Japan and Wales are among those invited to participate. SriLankan Airlines will sponsor the participating teams.

"All this has been possible because of the untiring efforts of our Chairman Daya Pelpola and our CEO Peter Hill who have worked together to uplift the airline," said De Silva.

Commenting on the advertising aspect, he said they now need to focus on prestigious international magazines and journals such as Time, Newsweek and probably Harvard Business Review.

He added that they also intend promoting the country in major trade fairs and events around the world.