BUSINESS

VAT Act challenged by Conpro

A consumer watchdog has sought the intervention of the president and cabinet of ministers in amending the Value Added Tax Act so that consumers will know the tax they are paying.

The Consumer Protection Society of Sri Lanka (Conpro) believes suppliers should be compelled to disclose the VAT component in the invoice issued.

Conpro President Mahohara de Silva said they will shortly write to the leaders of political parties requesting them to take up this matter. He also said they are considering appraising the Supreme Court about the issue.

 The VAT Bill was passed by Parliament in July this year without incorporating an amendment given in a Supreme Court determination which states - "...where a registered person makes a taxable supply and the recipient of such supply is not a registered person such supplier shall issue an invoice giving the consideration of such supply and the tax charged..."

The determination arose from a case initiated by Conpro challenging the constitutional validity of the VAT Bill. At the hearing before the Supreme Court, Additional Solicitor General, Saleem Marsoof, P.C. (appearing for the Attorney General) had agreed to amend clause 20 (6) of the VAT Bill in accordance with the Supreme Court determination.

However, the Bill was passed by Parliament without the amendment. "We were misled by the state not to pursue the matter," said Mahohara de Silva. He said the legislation now cannot be challenged before the Supreme Court because the constitution makes no provision for post-judicial review of legislation.

Informed sources said that in most countries, suppliers are required to disclose the VAT component in invoices.

Conpro said that had it not been for the undertaking by the Additional Solicitor General, they would have further pursued this matter of public importance in court.

They pointed out that the amendment suggested by the Supreme Court recognised the right of consumers to know the actual tax component paid by them.

The Supreme Court stated in their determination, inter alia; " The learned Counsel for the Petitioner pointed out that this provision would entail the non disclosure of the actual tax component which was to be paid by the consumer, who would now be prevented from knowing what tax he in fact paid; which of course, he has a right to know . It would also open the door to an unscrupulous supplier unconscionably and arbitrarily increasing his profits for goods and services and blaming such increases on the undisclosed value added tax, which in turn would result in an increase in the cost of living, thus nullifying the actual purpose of the Bill."

Conpro also criticised the statement by Finance Minister K.N. Choksy that the suggestion made by the Additional Solicitor General is related merely to a matter of policy and not of constitutionality.

Choksy's position was that Parliament was not bound to make the amendment suggested by Mr. Marsoof inasmuch as it was not part of the court's determination.

He stated that the Supreme Court identified only clause 2(1) of the Bill as requiring amendment on the ground of inconsistency with the constitution. He pointed out that the court had stated that since clause 2 (1) was suitably amended, the unconstitutionality has been removed.

"The above was the one and only item in the bill which the court required to be amended so as to make it consistent with the constitution. This amendment was made by Parliament prior to the passing of the Bill," Choksy informed Conpro.

Conpro however believes that it is too important a matter to take cover on the ground of technicalities but is a much deeper problem with needs immediate rectification.

They say the minister's position is unacceptable, stating that what is important is the desirability of the amendment and not whether it formed part of the court's determination.

They had also informed Choksy that the Supreme Court recognised the right of the consumer to know the tax component he is required to pay.

Conpro also queried whether the failure on the part of the government to honour an undertaking given by a senior law officer of the state to the Supreme Court would erode public confidence in the due administration of justice.

Secretary, Conpro, Lilanthi de Silva informed the minister that "the public is entitled to know as to why the government is against the consumer knowing the amount of tax he has to pay."

MMS service receives
good response

The Multi Media Messaging (MMS) service recently launched by Dialog GSM on a pre-commercial trial basis has received a very good response, said the company's CEO Dr. Hans Wijayasuriya. The facility will be launched commercially after client acceptance is assessed and improvements are undertaken

According to him, Dialog is the 42nd operator in the world  ( and Sri Lanka one of the first 25 countries) to have introduced the MMS Service.

MMS is a 3GPP standard that enables all types of content to be distributed via telephony networks, enriching the user's experience by allowing virtually any type of multi media messages to be transmitted.

This facility is said to be the ultimate evolution of messaging and enables full multi media message delivery, pictures, animations and eventually video.

In partnership with OmniMMSC, the Dialog network presently supports phone-to-phone messaging, messaging to applications and messaging via internet to phones. The very new technology also enables the company to tap into traditional markets like sending picture postcards and taking pictures, as well as new communication techniques such as internet, e-mail and instant messaging

Dr. Wijayasuriya noted that a large amount of MMS content is available on the web-this includes audio-visual clips, short cartoon clips and animations.

He said Dialog was able to launch the MMS service so quickly because they had the Global Packet Radio System (GPRS) in place. The company has an islandwide GPRS network.

He noted that MMS is such a new technology that phones with the facility are still not freely available even in developed countries, and are expensive. He added that Singapore and some European countries have launched it on a trial basis. He however believed that prices will decline once the service gains wider popularity.

He also said the availability of MMS handsets in Sri Lanka is higher that they expected.

MMS handsets are available at Dialog and dealers. The cost per handset (without camera attachment) is Rs. 30,000-40,000. With an in-built camera, the handset would cost Rs. 50,000.

Ericcson and Nokia were the first manufacturers of the MMS handset, but now almost all manufacturers support the facility.

Dr. Wijayasuriya said they will expand their MMS service throughout their roaming network covering 106 countries. He felt that the new facility will grow because it has a youth and entertainment element. It is also practical, and will reach different market segments.

It is pertinent to mention that the MMS platform being used for the trial was engineered by Dialog's software development partner in Sri Lanka - WaveNet.

He also said the Dialog network is growing very rapidy, with a dual focus on expanding capacity to meet the growing demand for services, whist extending coverage.

At present, Dialog GSM has 250 base stations, with an average 20-30 base stations being commissioned every month.

The company is today the country's leading mobile communications network, claiming a subscriber base exceeding 400,000.

Dialog GSM commenced operations as the first digital network in Sri Lanka in 1995. This fully-owned subsidiary of Telekom Malaysia involved an investment of US Dollars 100 million.

The next Singapore of Asia?

By Dinesh Weerakkody

Given the country profile and geographic location of Sri Lanka and the fact that it boasts a highly educated literate workforce, becoming the next Hong Kong or Singapore of Asia was the dream of J.R. Jayawardene in the 70s, R. Premadasa in the 80s and now Ranil Wickremesinghe in this decade.

However, as to what we must do to get there was never really worked out and the north east war buried any hopes of getting there in the short term. So the simplistic answer that was given by our gurus to achieve NIC status was peace.

While we all agree that durable peace is very important it is not the panacea for all our economic ills. We have to focus on removing the structural, political factors and bureaucracy that have impeded our growth process since independence.

Therefore, the process of economic and political reform itself needs to be reformed and speeded up and in addition anti-bureaucracy must become the mantra and the mission of the government.

Success

The success of many of the economies in east Asia in achieving rapid and equitable growth has occupied our leaders since the study of developing economies began in earnest, in the hope of identifying a development model for Sri Lanka that would reflect the East Asian development experience.

However, consequent to the economic meltdown in the 1990s in Asia, our analysts began to say that East Asia's extraordinary growth was only a fluke and that there was nothing exceptional about East Asia and we should look west.

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 have returned 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.

Policy

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 Asian 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, 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.

Strong government

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, 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 the 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 and jobs more easily accessible to all.

Had the government attempted a policy like 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.

In Singapore, whilst income and bonuses have increased and taxes have been reduced, the government at the same time increased medical charges, university fees, road fares, fines and foreign mail levies. The government explanation has been that with each year's wage increase, pension costs increase. So health services, university fees and cost of services go up in cost. According to government sources they have two options; increase taxes and pay for these increased labour costs.

But by increasing taxes to pay for increased subsidies, the end result would slow down the economy and become uncompetitive in the world market, so the best way to get money's worth for goods or services is to give the consumer the money and let them choose whether, what and where to buy it. This is what Sri Lanka should be doing in the current context to stimulate the economy in the short term.

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 the 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."

In the final analysis if we want to catch up with countries like Singapore and Hong Kong, we have to get our act together and to do that we will need disciplined and progressive leaders. Half hearted attempts will get us nowhere.

St. Peter's Residencies

WITH development taking the forefront in many fields in Sri Lanka, urbanisation too has occured concurrently. As a result, the main cities in the country, (particularly  Colombo) have to gear up to accommodate the large population drawn to them in the process.

Speaking of accommodation, the needs of each individual varies, and their high expectations combined with value for money cannot be forgotten as well. Apartments or residencies, which have been a globally accepted concept, were introduced to Sri Lanka some time back, but have never been so sought after as now.

But, owning that perfect apartment to suit your needs, which satisfies ones every expectation is no easy task.  Setting standards for perfect living is what R.E. Weerakoon of R.E. Weerakoon Constructions, builders of St. Peter's Residencies in Bambalapitiya, promises its customers.

Speaking to The Sunday Leader, the project initiator and promoter, Muaazi Thahir said that the unique features of St. Peter's Residencies include close proximity to the only beach in Colombo and many other locations.

He went on to say that these luxury apartments are a crow's call away from the city's main upmarket shopping malls, leading schools, banks and places of religious worship for all denominations. In addition, St. Peter's Residencies is also in close proximity to many supermarkets, cinemas, hospitals and entertainment venues that light up Colombo's skyline. These factors are unique in the sense that you enjoy the serenity of comfort and convenience right in the middle of the country's commercial capital.

He went on to explain that most often, prospective clients are shown pictures and brochures prior to apartments being built.  However, upon completion, the clients seem to be disappointed as the end product differs totally from the original concept viewed by them.

The apartment complex will house 16 apartments with four to a floor.  There are three categories of apartments which are three-roomed apartments with three toilets, two-roomed apartments with two toilets and two-roomed apartments sharing one toilet. All apartments will also have a servant's toilet as well.

Toilets in every apartment are completed with British standard sanitary fittings and homogenous floor tiles are used within the entire complex.

The 16 completed apartments will also be fitted with imported light fittings. Other facilities include provision for telephone connection, individual balconies for all rooms, kitchen with complete pantry, in-built intercom facility and round-the-clock security. A 24-hour backup generator plus hot and cold water supply to toilets are some of the other facilities.

A tube well facility is available in addition to a 32,000 litre sump and overhead tanks which can store approximately 16,000 litres of water to ensure a constant and uninterrupted supply.

Elevators with main and service stairways and a roof garden cum pavilion with a panoramic view of the ocean, provides unique ambience and exclusivity for a more scenic setting or for any entertainment purpose.

Thahir stressed further that when completing the apartments, quality has not been compromised as they have taken every step to provide the maximum benefit to customers. R.E. Weerakoon Constructions offer six months free maintenance for the apartments and have also included free cable TV connection, AC unit and curtaining for customers who make bookings early.

Speaking of the response, he confirmed that many apartments have already been taken and positive inquiries continue to pour in. The apartments are targeted at the upper and middle class segments of society. He went on to specify that the company encourages selected family sizes to occupy these residences in order that over crowding of the apartments, which may create unpleasantness to the other residents, would be avoided.

He went on to say that they have received encouraging inquiries from Sri Lankans living overseas.

When asked why people opt for apartments in preference to houses, he stated that security plays a major role while easy maintenance too adds to the advantages. Security, he said is the main reason as many who opt for apartments find the 24-hour security aspect a great help.

Speaking of prices, he said that the three-bedroomed apartments are priced at Rs. 6.5 milllion, the two-bedroomed (large) at Rs. 6 million and the two-bedroomed (normal) at Rs. 5.25 million. These apartments, which are architecturally designed and built by R. E. Weerakoon Constructions, are built to last a lifetime. As for future plans, the company plans to venture further in to the apartment building category, providing solutions and finesse to those desirous and in search of such attractions.

Emphasis shift for standardisation

The Sri Lanka Standards Institution (SLSI) was established in 1965 mainly to protect the local consumer from hazardous and inferior quality products manufactured and sold in the country during the early part of industrialisation.

Due to the protection given to the local industry, the industries could produce anything and sell anything in the local market. The industries did not have the capability and the know-how to improve the quality of products. In this background, the main purpose of SLSI was to set minimum standards for products manufactured in Sri Lanka within the constraints faced by the industry.

Considerable attention was paid to import substitution of raw materials, components and even packaging materials when formulating of standards as the industry was facing severe restrictions in the import of such items. The Sri Lanka Standards were mainly used for large-scale purchasing by the state institutions and for certification of few items exported from Sri Lanka under the compulsory export inspection scheme.

With the liberalisation of the economy in 1977, the role of the Standards Institution changed significantly. The consumer faced numerous quality problems from the products imported to the country freely. The industries could not compete with the dumping of foreign goods in the local market and some of the local industries had to be closed down.

The government decided to protect the local industry and the consumer by enforcing compulsory standards for a limited number of items based on Sri Lanka Standards.

This decision of the government posed new challenges to the SLSI. The institution had to redefine its role to meet the expectations of the consumer in the new economic environment and at the same time to protect the local industry from unfair competition from foreign goods.

SLSI also took timely action in building up the local industry capability by educating and training industrial staff in quality management and by providing third party certification for products and systems, which made the local industry instill confidence in the consumer as far as the quality of their product is concerned.

SLSI undertook an expansion programme of its own organisation and provided training necessary to its staff to meet the new challenge. During the period 1990-2000, SLSI increased its professional staff from 50 to 100 and provided over 150 foreign training programmes in quality related activities to its staff.

SLSI also completed its own building programme (both administration and laboratory complex) and received laboratory equipment to the value of over Rs. 300 million from foreign donor agencies. The outcome of the development programme from 1980-2000 is seen from the results achieved so far.

Establishment of 1236 Sri Lanka standards, grant of 154 ISO 9000 certificates, grant of 500 products certification marks (SLS marks), training of over 20,000 industry personnel on standardisation and quality management, issue of over 22,000 test reports on quality of products, issue of 8,000 calibration reports for industrial machines and equipment and certification of over 50,000 consignments imported to the country under the import inspection scheme are some of the achievements made by the institution.

Looking back at this achievement one gets a sense of satisfaction for the contribution made by the SLSI to the national economic development. However, the future looks very uncertain due to the changing global situation, particularly after the establishment of the World Trade Organisation (WTO) which plays a pivotal role for the new world order for trade and development.

Standardisation has the potential to impede or facilitate trade. It can impede trade by acting as non tariff Technical Barriers to Trade (TBT). Such technical barriers to trade can be in the form of deferring voluntary standards between different countries. When embodied in the national regulations (such as the import inspection scheme of Sri Lanka) standards could be crafted to impede import access.

Recognising the limiting effects of standardisation, the WTO agreement on TBT was concluded in 1994 to address this issue. It specifies that member countries which includes Sri Lanka are obliged to adopt international standards as a basis for the technical regulations whenever possible. Further, standards should not be used to discriminate against foreign producers.

In the light of the above development the whole approach to standardisation in Sri Lanka has to change from one of local consumer protection to facilitating international trade. The Sri Lanka Standards have limited scope in the international trade. Even between two countries there could be disagreements with respect to the national standards.  One way out would be to supply goods according to the requirements of the buying country. This will lead to manufacturing goods according to multiplicity of standards catering to the needs of several countries which is once again a non-viable option.

The only option available to most countries would be to produce goods according to international standards, which could be marketed in any part of the world. What about the local consumer? With the tariff barrier coming down from 25% to almost 05% or less, the foreign goods will be more competitive in the local market. Hence the local consumer will have greater access to foreign goods.

The next problem for the Sri Lanka government is to protect the local producer from unfair competition offered by the foreign goods. This is where non tariff barriers such as standards and conformity assessment become valuable. Non tariff barrier against foreign goods should equally apply to local goods. Local manufacturers too should conform to the same standard. If not, Sri Lanka will be violating WTO rules by imposing standards for foreign goods only.

What should be the future strategies for standardisation in Sri Lanka? The writer anticipates that more and more Sri Lanka Standards will be aligned with the international standards published by ISO/IEC and other international standards development organisations (ISDOs).

The time taken to produce an international standard may very from three to five years. Hence the countries who participate in the preparation of international standards are always ahead of countries who merely copy them after they are published. It is necessary for the business community in Sri Lanka to actively participate in selected international standards development projects.

This could happen if the business sector takes the ownership of the standards development projects at international level. Modern technology has provided cost-effective methods of participation in the standards development programme with minimum attendance at international meetings and the business sector should exploit such facilities.

The SLSI could play a role of a facilitator to promote the business sector participation in standardisation activities. As far as the trade between Sri Lanka and her major trading partners is concerned, particularly in the regulated areas, SLSI should enter into a Mutual Recognition Agreement (MRA) with similar organisations in other countries.

MRAs have been very effective tools in reducing barriers related to conformity assessment procedures such as testing and certification thus facilitating market access.

On the domestic front it is important to actively communicate the value of standardisation to decision makers in public and private sector organisations in order to encourage these organisations to invest resources in standardisation activities.

Giving due recognition and honor to individuals and organisations will help to motivate them.

SLSI should also improve the market relevance of standards by using a set of stringent criteria for selecting projects for standardisation and by engaging stakeholders commitment in developing standards through a co-funding mechanism.

To improve timeliness of standards, SLSI will introduce a business plan to each committee activity by setting targets for standard work and by requesting each committee to submit an implementation and promotion plan. Outdated standards will be withdrawn and a systematic programme for reviewing existing standards will be undertaken.

Marketing of standards will also be undertaken on a greater scale than at present by promoting standardisation projects proactively and by increasing distribution channels. Use of IT will be stepped up to market standards on line. E-commerce will be used for sale of standards to any customer from any part of the country.

The above ambitious programme could be undertaken successfully if the staff of the organisation is motivated through better terms of incentives and other benefits. Staff of standards bodies in most countries in the world are paid a premium salary when compared to the salaries of other sectors, as the skills required to operate a standards body are not found elsewhere in the country'

Further, such skills are always in demand from the business community resulting in a high rate of staff turn over. The Sri Lanka Standards Institution should change its course followed up to now to meet the challenges of the future. The question is when?

Director General, SLSI, C. D. R. A. Jayawardene
(ISO Regional Liaison Officer for South and Central Asia)

12 member Netherlands delegation visits Galle

A delegation of 12 members from Velsen City of the Netherlands led by the Mayor, Fons Hertog visited their sister city chapter, the Galle Municipal Council. They were received by the Mayor of Galle, Lionel Premasiri, and council members.

A dinner was hosted by the Governor, Southern Province, Kingsley T. Wickramaratne to felicitate the delegation at the governor's residence. The occasion was graced by Susan Blankhart, the ambassador of the Netherlands, parliamentarians, council members and other dignitaries.

Pictured is Governor Kingsley T. Wickramaratne in conversation with Susan Blankhart, the ambassador of the Netherlands. Also in the picture are Member of Parliament, Hema Nanayakkara, the mayor of Velsen City, the Mayor of Galle, Lionel Premasiri and some of the members of the delegation at the governor's residence in Galle.

Three Coins beer supplier for Oktoberfest

The Hilton Colombo Oktoberfest, probably the most authentic Munich-style festival of beer and merrymaking in the country, will be supplied exclusively by Three Coins this year, in another demonstration of the growing potential for world-class specialty beers.

Announcing its appointment as exclusive beer supplier to the Oktoberfest (November 7-16) for the second successive year, Sri Lanka's only specialty brewer said the company plans to produce an unprecedented 12 specialty beers for the festival this year, giving connoisseurs the widest choice ever seen in this country.

"We take our commitment to cater to the gourmet-savvy consumers very seriously, and our offering at the Oktoberfest this year will include some beers that have not been brewed in Asia before," Head (Brewing), Three Coins, Janaka Jayasinghe said.

Besides beer, Three Coins will also provide a marquee purpose-engineered by Head (Engineering), Three Coins, Rohitha Perera, to host the festivities. The elegant marquee will be set up at the Hilton's sports centre car park for the Oktoberfest to ensure that merrymaking takes place in a style typified by taste preferences and sensibilities of the Three Coins Company.

The Hilton Colombo Oktoberfest, probably the most authentic Munich-style festival of beer and merrymaking in the country, will be supplied exclusively by Three Coins this year, in another demonstration of the growing potential for world-class specialty beers.

Announcing its appointment as exclusive beer supplier to the Oktoberfest (November 7-16) for the second successive year, Sri Lanka's only specialty brewer said the company plans to produce an unprecedented 12 specialty beers for the festival this year, giving connoisseurs the widest choice ever seen in this country.

"We take our commitment to cater to the gourmet-savvy consumers very seriously, and our offering at the Oktoberfest this year will include some beers that have not been brewed in Asia before," Head (Brewing), Three Coins, Janaka Jayasinghe said.

Besides beer, Three Coins will also provide a marquee purpose-engineered by Head (Engineering), Three Coins, Rohitha Perera, to host the festivities. The elegant marquee will be set up at the Hilton's sports centre car park for the Oktoberfest to ensure that merrymaking takes place in a style typified by taste preferences and sensibilities of the Three Coins Company.

Headlines PR celebrates
seventh anniversary

Headlines PR, a public relations firm, celebrated its seventh anniversary recently.

The firm's Managing Director, Anusha David said, "Our winning brand of PR lends credibility to product, brand or corporate claims, lobbies against statutory constraints, is highly proactive and aggressive, and sells in the long run."

To coincide with its seventh anniversary, the firm has launched its new logo and identity. "The market has changed dramatically. There are new dynamics at play and changing with the times is important," said David.

However, new-look Headlines continues to be result-oriented. "This does explain the strength of our corporate relationships." The firm's client portfolio includes leading blue chip companies, government institutions, and non-governmental organisations, which have come to rely on Headlines' ability to publicise, organise and plan their events.

The services offered by the firm also include community relations, where it specialises in projecting corporate entities with a human face, and crisis management, an increasingly important activity within the context of increasingly aggressive world competition and challenges.

Lanka Bell - a total solutions provider

Lanka Bell has had quite a successful first six months this current financial year both in terms of introduction of new services that have helped shape the telecommunication industry in Sri Lanka as well as achieving positive growth in their revenues and cash position.

During this period, the company has consolidated its position as one of the leading players in the local telecommunications industry and has evolved into a total solutions provider with its new range of services and strategic investments in the most up-to-date global technology.

Lanka Bell with 'BellSat' was the first wireless loop operator to provide digital telecommunication services to the northern parts of Sri Lanka. This was through their strategic partnership with leading global telecommunication equipment providers, NEC Corporation and JCsat of Japan. The population in this region now have access to basis telephone facilities which they were deprived of upto this point due to the unsettled situation in the area. "We should be able to go to the east very soon," company sources stated.

Another highlight was Lanka Bell's partnership with Harris Corporation of USA for the installation of a high-end wireless broadband network which has already begun to show results, meeting the demands created by the internet and other digital services for high speed, high capacity data communications through 'BellBurst.' During the last two months, Lanka Bell installed over 40 'BellBurst' data links and hope to bring this to 100 by the end of this year.

Lanka Bell's latest product 'BellNet,' which is their very own internet service, has changed the way in which the internet is accessed in Sri Lanka. BellNet offers 100 hours free surfing with no rentals, bill and deposits. This allows Lanka Bell customers to surf the web at just the cost of a local telephone call which only amounts to a sum of Rs. 6 per hour and this too more than 50% of the time. BellNet in its short period of operation, from September 25 to date, has received more than 5,000 inquiries from interested users and has connected more than 50 users per day. This is very encouraging and proves that this service  is getting to be well accepted within their customer base.

It is hoped that 'BellNet' will help to address the low penetration level of the internet in the country, which has been mainly attributed to affordablility. Lanka Bell hopes in the months ahead to expand on this by launching the first truly broadband cyber cafe which offers a dedicated bandwidth speed from 512 Kbps to 4Mbps, which would enable hitherto unmatched surfing speeds and faster downloads, to the general public at rates which will be very affordable. This would be the first time that the general public will have an opportunity to experience such speeds at a cyber cafe.

The launch of 'BellNet' also coincided with the launch of Lanka Bell's web portal, www.lankabellnet. com, which offers a host of facilities and services including Lanka Bell bill payment, purchase of books via the web and tele-channelling to name a few. "We hope to build on to this portal and bring it upto a full-fledged E-commerce site," company sources stated.

Freedom of speech at zero cost was another special customised solution that Lanka Bell introduced to the corporate sector. This solution offers free inter branch communications. The solution, which is already very popular, was launched with the aim of reducing heavy operational costs that most organisations have to incur, calling their branch offices. The company is the first fixed operator to introduce a corporate solution of this nature.

Lanka Bell is also the only fixed telecom service provider with a fully CLI (Caller Line Identification) compatible network in Sri Lanka. All Lanka Bell customers in any part of the country could have access to this facility on their Lanka Bell telephone lines.

Lanka Bell's 37% increase in gross revenues and 36% increase in net revenues during the first five months of the current fiscal year have also been very encouraging. This has been mainly due to the restructuring of their sales, marketing and customer services at the beginning of the current fiscal year in order to increase the focus on their target market and establish their position as the most effective telecommunication niche player. "This move, as well as effective cost management practice, has resulted in significant improvements in our cash flow. This will help us in our future plans for further infrastructure expansion and improvement in our services offerings," Lanka Bell sources stated.

SLT links up with Bharti Telesonic of India

Sri Lanka Telecom (SLT) and Bharti Telesonic, India's emerging telecommunications company, announced the first steps of a fruitful partnership to channel overseas traffic between the two countries.

Bharti Telesonic Limited is the long distance service subsidiary of Bharti Televenturs, which is India's leading private sector telecommunications service provider.

Bharti has been at the forefront of technology and has revolutionised telecommunications with its excellent products and services. The tie-up with Bharti Telesonic gives SLT customers improved accessibility and alternate connectivity between the two countries.

Bharti has emerged as a strong contender since India opened up its telecom market in April this year.

Commenting on this successful deal, CEO, SLT, Shuhei Anan says, "The Bharti Telesonic link is ideal since India is Sri Lanka's largest destination for overseas calls. This will be the first of many ventures, we hope to work with Bharti, and offer a series of excellent telecommunications services in the country."

The link between SLT and Bharti via SEA-ME WE 3 and i2i cable will provide direct connectivity from Colombo to Chennai.

"The buzzword in the telecommunications industry today is bandwidth. This agreement with Bharti will not only meet the needs of customers in both countries for higher bandwidth, but provide the stimulus to drive the internet and e-commerce activities between India and Sri Lanka, and between these two countries and the rest of the Asia Pacific region," Anan said.

This bandwidth will also benefit the software industry - call centres, dotcom companies and internet protocol-based industries for applications such as web hosting.

The added bandwidth will make available an enhanced array of voice, data and business and consumer broadband services between India and Sri Lanka.

Bharti in turn will have access to SLT's existing global connectivity both in traffic and bandwidth, thus making this relationship a mutually beneficial one.

Affordable condominium
housing from CDL

The newest housing concept to be launched by Ceylinco Developers Ltd., (CDL), the developers of the Millennium City mega township, is condominium style housing aptly named Horizon, indicating a bright future.

Aimed at middle management and people, namely the modern average working family, Horizon housing is not only affordable but offers the added attraction of both comfort and security.

Constructed in two wings, there will be just eight units in each wing, making a total of 16 units. Each condominium is 960 square feet with both an upstair as well as downstair accommodation. Each unit has an individual garden with the units having a front garden being called Horizon Harmony and those with a rear garden being termed Horizon Melody.

According to Deputy Chairman, CDL, Bandula Ranaweera, there is the added advantage for Horizon home owners in that they could avail themselves of all the facilities of Millennium City such as the eco-friendly neighbourhood, the shopping complex, recreational facilities, theme parks, on premise professional advice from doctors, lawyers etc., (occupants of the shop houses) as well as 24-hour security.

Initially the Horizon homes will be available at a special introductory rate of Rs. 1,935 million, while financing too could be arranged.

Architects for the project are Forest Pvt. Ltd., while the contractors are ICTAD pre-qualified contractors. The project is managed with consultancies provided by Promec Pvt Ltd.

ETF publicity campaign

The Employees' Trust Fund (ETF) in the last six months has launched a publicity campaign to educate its members of the benefits it offers and also to bring the institution closer to its members. The ETF offers attractive schemes like the 'Viyana' low interest housing loans, medical insurance, Life Cover, etc.  At the recent Sarasavi Mela exhibition held at the Colombo university grounds, ETF set up a stall to create awareness of the services and benefits the ETF provides to their members. Pictured is an ETF customer relations assistant talking to a visitor.

CIMA in Kurunegala

The CIMA Sri Lanka Division recently re-launched the CIMA information desk in Kurunegala in association with Wayamba Chamber of Commerce and Industry. President, CIMA Sri Lanka Division, Sudarshan Senaratne said that the CIMA desk in Kurunegala would now disseminate information regarding CIMA and will accept completed registration forms from new CIMA students in Kurunegala.

Senaratne also said, "CIMA is an alternate route to higher education and CIMA is represented in 135 countries and its examinations are held throughout the world. The CIMA course of study encompasses many areas of business and management related fields. Therefore, our graduates can easily fit into many roles in an organisation; namely marketing, general management, production, information technology and human resources management. The CIMA qualification is also recognised by other professional bodies as an entry to higher education, such as masters degree programmes. These attributes have given our students the advantage of ready employability."

President, Wayamba Chamber of Commerce and Industry, A.S.M.C. Abeyawickrema thanked CIMA for setting up an information desk.

He said that it would be very useful to many school leavers and he stressed the importance of gaining a professional qualification such as CIMA.

Pictured is Sudarshan Senaratne and A.S.M.C. Abeyawickrema exchanging the MoU after signing.