BUSINESS

Okanda Finance signs Rs. 650 mn agreement with BOI

On behalf of the Board of Investment (BOI) Sri Lanka, Deshamanya Dr. Lalith Kotelawala, also the Chairman, North Western Province Economic Development Commission and on behalf of Okanda Finance (Pvt.) Ltd. Chairman, M.B. Okanda Silva signed a BOI approved milk production agreement on August 22 at the Vayamba Economic Development Commission office in the presence of Enterprise Development Industrial Policy and Investment Promotion Minister, Prof. G.L. Peiris.

The total cost of this project is Rs. 650 million. The first stage of this project involving Rs. 50 million will be started under the name of Vayamba Development Farming Corporation Ltd., at Manaweriya in Puttalam. Director General, Vayamba Economic Development Commission, Suraj Dandeniya and Director/General Manager, Okanda Finance (Pvt) Ltd., Theja Dilhani Saundage and Managing Director, M.B.D. Silva also participated in the ceremony.

Tourist Board incentives for development of manor houses

By Ranee Mohamed

Working on a brainchild of Prime Minister Ranil Wickremesinghe, the Sri Lanka Tourist Board will soon work steadfastly towards restoring Sri Lankan old walawwas and manor houses.

This unique move will open the doors wide to a centuries old civilisation that this nation can boast of. Director, Tourist Board, Asoka Perera said that this move is expected to benefit tourists for the coming season.

In this new and unique move, the Tourist Board invites all potential proprietors of manor houses and walawwas to apply for this project. It is described as an opportunity not to be missed as the owners will be given attractive concessions of to renovate and refurbish attractive historic proprieties.

“The programme will enhance accommodation facilities in Sri Lanka without commencing any new construction,” pointed out Perera who went on to say that Sri Lanka is now clearly perceived as a totally safe and amazingly diverse destination, providing the international corporate and leisure traveller with multifaceted attractions available at close proximity.

Perera went on to say that the objective behind this unique promotion is to attract more upmarket FIT tourists to Sri Lanka.

Perera said that it has been observed that the FIT market is eager to spend their annual vacations in some exclusively and privacy and these manor houses can provide this to perfection, he said.

“Imagine living in a manor that is about 200 years old,” said Perera who went on to speak of Sri Lanka’s rich cultural heritage despite being a small island nature. “Few other nations can boast of a rich heritage as ours,” he said.

Owners of these manor houses who start on this project are also given a three year tax shelters from the date they start operation and export requirements are being considered to meet refurbishment needs.

“This more will benefit not merely the owners of manor houses. It will generate employment in the vicinity and increase focus on handicraft and self employment,” pointed out Perera.

The Tourist Board also plans to put out a catalogue picturing these manor houses rising out from the shadows of the past in a new light.

ITI — only accredited laboratory for pesticide analysis

The laboratory services group of the chemical and environmental technology laboratory of the Industrial Technology Institute (ITI) is the only accredited laboratory in Sri Lanka for pesticide analysis with international accreditation from the Swedish accrediting body SWEDAC for 12 pesticides that include Dieldrin, DDT, aldrin and lindane as per ISO/IEC 17025 standards since June 2002.

This international accreditation allows the ITI laboratory to use the SWEDAC logo along with the institution logo in the relevant test reports issued, signifying that the ITI laboratory has the necessary quality system in place and the test results generated are scientifically valid and legally defensible.

Further, as SWEDAC is a full member of the International Laboratory Accreditation Cooperation (ILAC) and a signatory to the ILAC agreement, more than 36 countries accept the ITI report that are a signatory to this agreement. At present the laboratory carries out analysis for regulatory as well as quality control purposes for the Registrar of Pesticides as well as for industry that manufactures pesticides formulations, mosquito coils and mats. The laboratory is also used by the Health Department for analysis of all pesticides imported for the anti malaria campaign.

With facilities for carrying out pesticide residue analysis for over 30 pesticides in water soil and agricultural commodities, many exporters including shrimp, fish exporters and tea exporters obtain analytical reports for their products with respect to banned organochlorine pesticides such as DDT, dieldrin and lindane and other commonly used pesticides in Sri Lanka from the ITI lab.

Emerging role of the private sector

By Dinesh Weerakkody

Prime Minister Ranil Wickre-mesinghe this week met with private sector representatives and with some of the top business people who matter, to discuss the way forward to usher in prosperity to all Sri Lankans, and also to find out about their expansion plans for 2003 and beyond. This business like move by the PM was to very clearly to tell the private sector to get on with it, if not society and the government would lose confidence in the private sector and that would be death to pro private sector policies.

His advice to the captains of the private sector was, make use of the generous incentives to expand, grow and create jobs. He asserted that it was now, or perhaps never. The problem with the Lankan private sector is that it lacks the maturity of a developed market. As a result to many companies giving something back to society is alien to their corporate culture.

If you approach chief executives of some of these large companies for a donation to support a worthy cause he or she would have no hesitation in saying they are not in business to do charity. In fact, companies in Sri Lanka should embrace the role of good corporate governance not only because it is the right thing to do, but also because giving something back to the communities it serves would ensure its own survival in the long term.

Furthermore, employees of companies that participate in social work, also tends to work harder to invest in the communities they operate. Not only is this good for business, it is also good stewardship. Often good corporate citizenship is discussed in terms of doing what’s right, but as educated business managers we should believe that doing the right thing, keeping to the moral code, is a natural by product of acting out of compassion.

Therefore, compassion uses power to serve and wealth to expand its capacity to serve. In fact Henry Ford the father of the auto industry once said, “A business that makes nothing but money is a poor kind of business.” In fact, in the USA in the early 1900s, Andrew Carnegie and John D. Rockefeller led the way for the establishment of benevolent foundations for the distribution of private wealth for public benefit. Though this money was relatively small, when it was targeted creatively, its leadership value was tremendous. The need for such initiatives in Sri Lanka cannot be more urgent than today.

Prosper

Many private sector companies don’t realise that can only prosper in a society that is permeated by social equity and a basic sense of fulfillment. No company operates in a vacuum and that its success is dependent on the fulfillment of certain obligations to society. I strongly believe that if the private sector is to become the engine of growth in the country, they should take on more of the community activities that the state provides.

The community’s needs are what they are ultimately servicing through their various enterprises, and apart from anything else it makes perfect business sense to do more for the community. Therefore, companies that want to make itself economically superior should also be environmentally sound and socially responsible. In fact, many people have slammed the private industrial sector for what they discerned as showing arrogance towards the country’s environment and energy needs.

It goes without saying that the private sector cannot function effectively when social tensions are riding high, also if one thinks of the social obligations of the private sector, that it creates an image of itself which is on the right side of the moral values, if it fails to do so it can contribute towards it own downfall and invite state regulation. 

National affairs

The private sector involvement in national affairs has become necessary because our political leaders have failed to build confidence, are sending the wrong signals and resting their hopes of political power on policies that will be harmful for the country.

Today, Sri Lanka needs effective leadership more than ever before and it is therefore necessary for the private sector to come forward strongly to pull our nation together to cope with the challenges of the future. In this context we should remember the positive impact the private sector made to promote a peaceful resolution of the ethnic conflict.

Obsessed

In a corporate world obsessed with maximising returns, the question of private sector taking a lead role in social betterment projects are rarely on corporate agendas. However research suggests that investing in the well being of their communities are good for their business.

Furthermore, today it is becoming increasingly difficult for the private sector to exist and function in isolation. Our society at last has recognised the need for our private sector to take on greater responsibility in matters affecting our society. It make sense for the private sector to take an intense interest and continuing interest in public issues, because, when society disintegrates, the private sector will find it increasingly difficult to reap the benefits of their investment.

Criticised

Our private sector has in the recent past been criticised by its own leaders for not acting responsibly as corporate citizens and that its activities has little social relevance, even though the purpose of any business is to satisfy customers continuously at a profit to itself. Large corporates in Asia have struck partnerships with governments and community leaders to strengthen their communities with which they do business. They have realised that their investment is not just charity and that investing in the well being of their communities is becoming necessary for their long-term survival. They also know that it could benefit them by way of brand loyalty, enhancing the long term sustainability of their investment, better potential employees and above all that it helps create a stable society.

Profits

When a business is looking for an opportunity to generate huge profits by over-pricing its products and services, then it is not meeting its social and community responsibilities. The arbitrary price increase prices by companies are a good example of irresponsible corporate governance.

On the other hand if an organisation is exploiting its employees and vendors then it is guilty of unfair practices. We are accustomed to thinking of the west as a materialistic society. Yet this is what Albert Einstein had to say about the USA: “The social conscience of the well to do is so highly developed that he considers himself obliged as a matter of fact to place a major portion of the wealth and often energies at the disposal of the community.”

Expectations

In Sri Lanka the public’s expectations of the private sector has changed dramatically over the past two decades. Today, more and more Sri Lankan people seem to support regulatory reforms which reduce government intervention in the affairs of the private sector as long as businesses are willing to demonstrate commitment to social objectives.

Our private sector is generally branded as being only profit oriented. There are certain sections of the private sector that support political parties and thereby, obtaining necessary approvals with no apparent regard for the social costs associated with a project or a government tender. These sections of the private sector have tarnished the good image of the larger private sector, which is conscious of its social obligations.

From a business point of view the argument that is most often heard in favour of a firm’s involvement in social activities is that such activities can improve a company’s public image and help to attract new customers, investors and better employees. It is also argued that such activities may reduce the enactment of government regulations, which are costly and restrictive to the management decision-making process.

However, it is maintained that involvement in social activities undermines the efficiency of the corporation and misdirects limited resources, serving only to increase costs and the price to the customers. Another argument against it is that there is frequently a measurement problem.

That is to say most firms, which provide voluntary social information in their annual reports, describe their actions in qualitative rather than quantitative terms. Further more the private sector has to take risks in order to give a reasonable return to the shareholders.

They also have to repay the loans borrowed from banks and also retain a portion for expansion, failure to understand this also have led to the criticism of the private sector.

Employees

From the employer’s view a business enterprise provides its employees with salaries and wages, so the employees are concerned with the ability of the enterprise to generate favourable cash flows. Nevertheless, they may be concerned with plant and product safety, training programmes and fair business practices.

On the other hand, as a member of the community, the employees may also be interested in the firm’s community involvement. However, employees may see these activities as increasing expenditure and affecting their wages and jobs. It has been pointed out that managers have social concern but, unlike other employees, management is in the unique position of being able to initiate social programmes and activities.

It is generally felt that it is the role of the state to provide welfare facilities, as the private sector contributes more effectively to economic development. The private sector employs 60% of the 7 million labour force and also is the biggest direct tax payer. Therefore the revenue collected from the private sector should be targeted more creatively for social welfare and national security, thereby reducing the strain on the private sector.

Future

It is time for the private sector to move away from the age old philosophy of turning to the government for support in a crisis and condemning the government at every opportunity for not solving their problems, but work unitedly for the betterment of our society.

We should not forget that we have already gone through two class-based insurgencies that virtually paralyzed the private sector. Therefore, there is a definite need for our private sector to respond to the call of the government to invest and grow, but equally, the public servants, the politicians, who are responsible to the public (who are paid from the revenue collected from the private sector and the NGOs) and also unions to display a social conscience and join hands for the betterment of our country.

In the final analysis, the survival of private sector firms in the future will depend on their social and economic relevance and if firms within the free enterprise system wish to have the free enterprise system accepted by society and by the government, they would have to demonstrate their social relevance in addition to the obvious one of making profit.

Dialog launches ‘The Buzz’

Foremost in innovation, driven by technological superiority and geared with a futuristic vision, Dialog GSM once again exceeds the expectations of its customers through the launch of the country’s first ever customer service contact point on wheels — The Buzz.

The Buzz is 40-foot long luxurious Mercedes coach. It offers customers the convenience of paying their monthly bills, settling accounts and checking account balances, purchasing phone units and accessories, obtaining new connections, transferring accounts and mailing addresses, gathering information on the latest technological advancements and special offers from Dialog GSM and so much more under one mobile roof.

The Buzz team comprises of a committed, dynamic, proactive and efficient team of young professionals who are more than willing to offer subscribers the best service possible.

The Buzz will travel the island and tour interior villages and towns. In this journey, it will also conduct workshops for customers in a bid to educate them further on the uses and benefits of mobile telephony. It will not doubt get closer to the hearts and minds of people and give them the opportunity of getting connected through Dialog GSM.

General Manager, Marketing and Sales, Nushad Perera stated, “The Buzz is a valuable asset to Dialog GSM in connecting deeper with the customer. Now we can not only cater to their needs more effectively, but also understand firsthand their communication needs and solve them speedily. Best of all, the customer suffers no hassle as it is done virtually at his doorstep. The Buzz will be testimony to true customer connectivity.”

Dialog GSM is operated by MTN Networks (Pvt) Ltd. It is a fully owned subsidiary of Telekom Malaysia. The company has spearheaded the mobile industry in Sri Lanka since the late 90s, propelling it to a technology level on par with the developed world.

The company operates a 2.5 GSM network supporting the very latest in multimedia and mobile internet services and also provides international roaming in 130 countries.

SMB reports healthy profit growth

Seylan Merchant Bank Limited (SMB) has reported satisfactory growth in its financial results for the first half of 2003.

In results released this week, SMB reported a consolidated pre-tax profit of Rs. 16.7 million, a growth of 148% over the Rs. 6.7 million profits reported in the corresponding period of 2002.

SMB also reported a consolidated net income growth of 32% to Rs. 335.6 million while net interest income grew 70% to Rs. 56.8 million. The bank’s pre-tax profit rose to Rs. 3.1 million from Rs. 826,487, reflecting a growth of 271% compared to the first half of 2002.

The bank has also recorded healthy growth in net income, up 35% to Rs. 280.9 million. Net interest income of the bank grew 81% to Rs. 36.7 million during the period under review.

SMB’s Director/General Manager, Rohan Senanayake said the significant factors that influenced growth in this period were the capital gains on Treasury bond investments, improvements in IT infrastructure with the linking of four main branches to the head office by computer and improvements in employee productivity.

He said that SMB would be focusing mainly on developing its leasing portfolio in the future. The bank introduced a leasing product branded ‘SMB Quick Lease’ which grants a lease within 24 hours, without the need for guarantors.

Snippets

Ceylinco Seylan Developments improves performance

For the first six months this year Ceylinco Seylan Developments recorded an after tax profit of Rs. 10.86 million compared with a loss of Rs. 24.39 million during the corresponding period last year. This achievement is mainly due to an improved revenue of Rs. 85.49 million, which is a 46% increase compared with the same period last year. Due to the improved business climate prevailing at present made it possible for the company to successfully negotiate with tenants a higher rent which helped improve performance. The company also managed the operational expenses prudently to maintain the same level as the previous year. The reduction in interest rates has had a positive impact on the good results achieved. The company forecast better results during the latter half of this year with the diversification into property development projects.

New shipping service at Colombo port

CMA-CGM line will commence its West Bound caller Bosphourus Express Service through the Colombo port with effect from September 26. The first vessel out of seven of the new service to call over at the Colombo port is MV Cordonia. This is a weekly caller which is scheduled to call every Friday. The port rotation is Colombo/Suez/Port Said/Piraeus/Istanbul/Constantza/Odessa. The other vessels coming under the new service are MV Carpathia, MV Douce Fiance, MV Fort Royal, MV Fort Dasax, MV ER Brisbane and MV ER Albany. In a bid to boost its image as the preeminent load center (hub) of South Asia, on the advice of Ports Development and Shipping Minister, Rauf Hakeem, Chairman, Sri Lanka Ports Authority, Parakrama Dissanayake has been spearheading a programme to boost service delivery to clients.

Book on post-Iraq global economy

A book titled Why Should I Give A Damn For The Global Economy? A Pre-And Post September 11 Perspective by Gerard Dilhan Muttukumaru will be launched at 5 p.m. on September 8 at the Galle Face Hotel in Colombo. This book is on how the post-September 11 and post-Iraq global economy affect every aspect of one’s life whether it be a student, educator, parent or a CEO of a national or an international organisation. The author also examines the increasingly dominant role played by teenagers and women in the borderless economy. The author is of the view that the USA, the west and all advanced economies, the UN and multilateral agencies can and must be a tremendous force for good. The book is published by Vijitha Yapa Publications. Muttukumaru’s professional expertise includes serving as the Asia Programme Manager in the Philippines at World Vision International and with two global financial services organisations and as a principal with a California based international healthcare consulting firm. In 1998 he founded the US based Centre for Global Leadership Inc. The author has served on the faculty of universities in the USA, having taught leadership, global management, strategy and global marketing to managers in the MBA and professional education programmes.

Free oral health checks from Ceylinco

Oral health will be the theme of a month-long campaign in September by the Ceylinco Cancer Detection Centre, the only private stand-alone facility in the country for cancer screening. Starting September 1, the centre will offer free oral health checks to the public who call in requesting the service. These free examinations will be by appointment and all persons who undergo the checks would receive special discounts on any follow up oral screening that may be required, the centre said. “Poor oral health can lead to cancer, which is why the Cancer Detection Centre has chosen oral health as its theme for September,” Deputy Chairman, Ceylinco Healthcare Services Ltd., R. Renganathan said. “Our objective is to create greater awareness of the need for regular oral health checks.” “Betel and tobacco chewing, smoking, heavy alcohol consumption, broken teeth, ill-fitting dentures, poor nutrition, anemia and poor oral hygiene are among the chief causes of poor oral health in Sri Lanka and therefore an average individual should get an oral check done one every six months,” Senior Medical Officer, Ceylinco Cancer Detection Centre, Dr. Shyama Fernando said.

Lanka Bell launches new corporate logo

Lanka Bell unveiled a new corporate logo and theme — ‘Connecting You to Limitless Possibilities’ — that represent Lanka Bell’s new vision at a staff convention held at the Galle Face Hotel. The event also marked the launch of an employee empowerment programme that will harness the intellectual and emotional capital represented by the entire staff to achieve Lanka Bell’s ambitious programme of growth. “Underlying the new logo and theme is a company-wide programme to upgrade all the operational aspects of our business. Our vision is to offer all our customers limitless possibilities through the superior features of our network and services,” said Managing Director and CEO, Joey V. Mendoza addressing the Lanka Bell staff. “As the only debt-free telecommunications operator in the local market, we are now ready to make the investment needed to bring the quality and reach of our network to the highest possible level. Every element of our new logo reflects a vital element of our corporate vision. The red ring represents our passionate commitment to customer service. The blue ring represents our technological expertise. By combining these two vitally important elements to form the mathematical symbol for infinity, we affirm our commitment to offer all our customers infinite possibilities to enhance their business, professionals and personal lives.”

Hewlett Packard mega promotion

Hewlett Packard has recently launched a mega promotion, ‘Travel the World with HP’ Grand Lucky Draw 2003. The three month promotion is from August 15 to November 30. Shoppers who buy any selected HP products will stand a chance to win air tickets to dream destinations round the world. The suite of products for this promotion is the desktops, notebooks handhelds, laserjets, deskjets, scanjets, the all-in-ones multifunction printers as well as the inkjet and laserjet print cartridges.

Wider selection on SIA inflight entertainment system

Singapore Airlines’ (SIA) inflight entertainment system, KrisWorld, now features a wider selection of Chinese and Indian movies, as well as new music channels. Movie titles for August include mandarin hits like Honesty starring Hong Kong heart-throb Richie Ren, Hindi blockbuster Khushi with rising stars Kareena Kapoor and Fardeen Khan in the lead roles, and Tamil movie Yee Nee Romba Azaga Irukey. In addition, music lovers can also enjoy an exciting array of contemporary sounds and evergreens with an enhanced audio selection. SIA, in a first-ever exclusive tie-up with United Kingdom’s Ministry of Sound, introduces a new dance music channel called Adrenalin, hosted by renowned disc jockeys like Jakatta and Sandy Rivera, and showcasing cutting-edge dance club beats.

LMS tank farm at Kotahena a time bomb

Environmentalists have been making representations to the Colombo Municipal Council (CMC) for a long time that the huge fuel storage tanks of Lanka Marine Services Ltd. (LMS) at Kotahena and over one kilometre of leaky pipe lines that carry fuel oil for sale to ships in the Colombo harbour are not only 50 years old, but some were considered bad at the time PERC called for bids for the sale of the shares.

Attempts are being made to hide behind the environmental protection licence which is issued for this installation. This should not be considered as an approval for carrying out this activity/process at this location.

It is stipulated in the licence that “the licence is only a permit for the discharge of effluent/emissions and emitting of noise levels according to stipulated standards. The written approval of the relevant local authority (Pradeshiya Sabha, Urban Council, and Municipal Council) should be obtained for the operation of the installation/activity at this location.”

These annual licences are issued with a validity of one year only.

LMS was the wholly owned subsidiary of Ceylon Petroleum Corporation (CPC) that took over these tanks that were built by the Shell Company in 1948.

The location of the tanks in a highly populated area like Wall Street, Kotahena, has angered not only environmentalists but also people who value other people’s life. The photographs and the survey map show the extent to which the area immediately next to the tanks is densely populated.

The survey map shows the congested housing situation surrounding the 30,000 tonnes of fuel tanks as it stood in 1982. The congestion now is even worse. The close proximity of the tanks to the adjacent housing is shown in the photographs.

While John Keels (JK) was the only company willing to pay Rs. 1.2 billion for 90% of LMS, 16 others who were pre-qualified by PERC to bid withdrew from the sale due to the dangerous location of the tanks, the environmental problems faced due to the leaking pipes, the corroded tanks and the high floor price asked for by the seller.

A previous CPC chairman when questioned about why the tanks and pipes were not repaired during their ownership when LMS was making good profits, said that they did not want to put any money into the tank farm at Kotahena as it was not considered prudent to continue developing a fuel storage facility in a highly populated area like Kotahena — the construction of the fuel tank farm at in the isolated area of Muthurajawela was considered the safest.

Over the past 50 years since the tanks and the pipelines were built, the Kotahena population has increased to such an extent that there are now thousands living within a few feet of the facility. Perhaps it is the CMC that should not have given permission for the houses to be built so close to an inflammable storage facility.

However, it is a fact that the houses and the people are there for good, and will continue to live next to a possible towering inferno.

Relocating the tanks is the only option for a responsible blue chip company like John Keels to do. However LMS was the biggest earner in the JK group during the last two quarters and as such, public interest is likely fade into the background in the midst of these huge earnings.

LMS was granted BOI concessions in March this year even though no new business was generated there. Believe it or not, this 10-year-old company was given BOI concessions only because JK bought shares of the company for a large sum of money.

The only effect on the national economy due to these BOI approvals is the depletion of taxes collected previously from the same enterprise — the Rs. 1, 200 million collected on the sale of LMS being lost on the non payment of taxes by LMS in about four years.

The precedent to this is quoted as being the sale of the Steel Corporation to the Koreans, which was also given BOI concessions many years ago. That of course entailed the inflow of new dollars to the country.

If this is taken to its logical end there could be financial institutions or individual heavy weights like Dhammika Perera who could go round purchasing shares of any and all the companies in Sri Lanka for large sums of money and bestowing on all these companies all the BOI concessions and selling them off after the conversion.

This is in spite of the clarification that PERC gave to the other bidders at the time of the sale of LMS shares as follows:

“Purchase of shares of an existing company is not considered new investment by the BOI for concessions,” stated a PERC document dated May 8, 2002 minutes of pre-bid conference on April 30, 2002.

In obtaining these concessions LMS even obtained clearance/approval for the Kotahena site from the BOI whose engineers are normally very strict about the fire gaps, surroundings and precautions regardless of the traditional authorities being lax due to “one reason or other.” Perhaps the BOI is also taking the “one reason or other” route in its approvals.

As the next board chairman of JK is expected to be the one who pulls in the biggest profits for the group, those leading LMS may not be losing sleep over the safety of the Kotahena population.

The area where the pipeline runs is so congested that LMS was unable to repair the leaky pipes that were laid over 50 years ago as there are now a large number of shanties built over the pipelines leading from Kotahena to the Colombo harbour.

The situation remains unchanged with oil leaking from the pipes finding its way underground water-table every day.

It’s about time that the CMC or the Environmental Authority took action to relocate the fuel oil tank farm in a more appropriate area in which the fire gaps can be maintained and located in a remote unpopulated area.

The CMC that is not expected to know about the preset safety standards in the petroleum industry should employ consultants to ensure that industry safety standards are maintained for the sake of the thousands of rate-payers who live around these fuel tanks.

The design and precautions to take in the running of fuel oil tank farms is clearly spelt out in the codes of the American Petroleum Institute (API) and the codes of the National Fire Prevention Authority, that all those in the petroleum industry adhere to.

Persons familiar with the API and NFPA codes say not only are very the basic codes not complied with but that even the municipality laws are not complied within and outside the premises of LMS.

One does not have to be an expert in petroleum codes to be able to visualise the tragedy that would result in this highly populated area if and when an incident like the 1996 Kolonnawa oil installation should take place here.

It is about time that the honest officers of the municipality started acting with some responsibility.  The chairman of the BOI too should visit this site and see for himself the potential tragedy that his officers have approved.

What is more appropriate in a populated area such as this with no open spaces would be a play ground and community centre and not a life threatening fuel storage facility.

— Duminda Perera

NDB brings hope for women in the north

A team of National Development Bank (NDB) and Seva Lanka Foundation officials visited the northern part of Sri Lanka recently to conduct a needs assessment study prior to implementation of project which the NDB will manage on behalf of the World Bank and government of Sri Lanka.

The team from NDB comprised of Senior Manager, SME Development, Ranjith Abeywardena, Senior Executive, SME Development, M.R. Sarath Doranegoda and Manager, Anuradapura Branch, Manjula Goonatilake while Kaushalya Navaratne, V.K. Illanko and A.E. Anandarajah represented Seva Lanka.

The visiting team stopped at Sinnamadu in Kytes, Colombuturai in Jaffna, Wallipuram in Vadamarachchi and Attaria in Thenmarachchi. They were warmly welcomed in all these villages by the women development associations that are in initial stages of operation.

The Seva Lanka Foundation, a non governmental organisation engaged in resettlement and women empowerment in the northern and eastern parts of the island, coordinated these visits.

The NDB has signed a MoU with the Seva Lanka Foundation operating in the north and east, who will carry out the grassroot level implementation. The three districts identified in the north and east will receive Rs. 42.0 mn under this grant.

The project is titled ‘Empowering the Poorest of the Poor Women and Girls in Sri Lanka’ and is to be funded through a grant of US$ 900,000 made available to the government of Sri Lanka from the Japan Social Development Fund.

The World Bank in its administration capacity of the fund selected the NDB as the project consultant as NDB has been the apex organisation for the implementation of several projects dealing with small, medium and micro financing enterprises.

One of the key objectives of the project is to assist the most vulnerable groups of women and girls in the Vavuniya, Jaffna and Trincomalee districts of the north and east to strengthen their income generating capacities and enhance female participation in economic activities.

Balvin Dispensers in Sri Lanka

One of the newest industries to reach Sri Lanka has become the manufacturer of Fourcourt dispensing pumps for petrol and auto diesel. Balvin Dispensers (Pvt) Limited, a joint venture company between Balvin Inc., UK and Serendib Engineering and Agencies (Pvt) Limited, Sri Lanka, has been set up as a BOI company for the manufacture of Fourcourt fuel dispensers.

Trial production has already commenced in Sri Lanka and in excess of 10 dispensers have been manufactured locally and supplied to the UK. Balvin Inc. are a well known international player in the market for dispensing equipment along with other well known brands such as Wayne, Tokhaim, Gilbarco etc.

This is the first time a precision electronic mechanical unit of this nature has been manufactured in Sri Lanka for the export market. The Balvin dispensers manufactured locally are to the highest international standards thereby being able to break into the sophisticated European and North American market sectors.

The dispensers manufactured in Sri Lanka range from the units with an electronic display of units incorporating PC control, incorporating sales software which are now universally used in all developed countries.

The local value addition consists of not only assembly the units, also manufacture of components.

The local company expects over a period of time to gradually expand the volume of locally manufactured input to 70% of the components required for the dispensers.

Balvin is a well established name worldwide and during a recent journey in Sri Lanka approx. 150 miles out of Colombo a Balvin dispensing pump was seen operating in a remote petrol station in Sri Lanka.

Balvin Dispensers (Pvt) Limited together with their joint venture partner Balvin Inc., are also consistently pursuing new developments in the search of excellence and accuracy in its products and will shortly be bringing out new variations of dispensing equipment which are tailor made to suit specific requirements in various territories.

Ceylinco Insurance achieves record revenue

Ceylinco Insurance Co. Ltd. has reported a record Rs. 3 billion in total revenue in its first half yearly financial statement, indicating a growth of 35% or Rs. 771 million.

This is the highest turnover for a first half-year in the history of the company.  This figure represents the premium income of both the life and general divisions.

The company’s profits before taxation in the consolidated financial statement stood at Rs. 30.9 million as per published accounts, reflecting a growth of 12% over the corresponding period last year, while its life fund grew to Rs. 8 billion at the end of June 2003.

The growth of the life fund from Rs. 6 billion at the end of June 2002 to Rs. 8 billion at the end of June 2003, a 33% increase underlines the strength and stability of Ceylinco Insurance, the company’s Director/General Manager (Life), R. Renganathan said.

He said the company sold more than 42,000 new life policies in the half year under review, at a healthy average of 7000 a month, which is a tribute to the professionalism and motivation of its sales staff. In 2002, Ceylinco Life recorded the highest volume of new business in the life insurance industry.

Ceylinco Insurance Company Limited has maintained its reputation for excellence in providing service to policyholders of both life and general divisions.

Ceylinco Insurance recently launched ‘On the Spot’ claim settlement for its ‘VIP Motor Insurance’ customers, which created a major impact in the market. This is the first time that such a scheme was launched in Sri Lanka.

Ceylinco Insurance Co. Limited was ranked the number one insurer in 2002 and was ranked 17 amongst the top 50 companies in Sri Lanka by the Lanka Monthly Digest magazine.

“If there are no givers, there can’t be takers” 

— BoC Chairperson

“Let us stop for a moment and think who is responsible for corruption. It is the giver. Without a giver, there cannot be a taker. Therefore the Bribery Commission must go after the givers and not the takers. The takers will gradually disappear when open and transparent procedures are adopted and every bit of information is made available to the tenderers on the worldwide web,” said Chairperson, People’s Bank, Sumi Senanayake Moonesinghe in a speech at the Rotary Club of Colombo West luncheon meeting. Following are excerpts: 

It is 10 years since I last addressed this august assembly on the development of Trincomalee to be the gate way to South Asia, to access the 1.5 billion people across the Palk Straits. I am sure all of you realise the viability of a six lane super highway from Colombo to Trinco and hope someone from the private sector will start this project soon.

Today I want to share my views on my pet subject — Knowledge economy.

All of you have read Alvin Toffler, the futurist author’s books, where he spoke of the third wave, future shock.

Third wave nations sell information, innovation, management, culture, advanced technology software, education ,training, medical care, and financial services and military protection.

This very complex new system requires more and more information exchange among its unit companies, government agencies, hospitals, associations and even individuals. This creates a ravenous need for computers, digital telecommunications networks and new media.

Even though the initial cost of computers, software, information and telecommunications may be high, the capital needed to do the same job is less. Human capital has replaced dollar capital. Knowledge becomes the ultimate substitute. Let us catch up on this revolution.

What have we as responsible people in society done to meet these challenges?

When the World Bank and the IMF give us any assistance, it is tied up to us meeting certain goals specified by them. Liberalise, open the economy, level the playing field with no protectionism, down size and retrench staff, etc, etc.

The reason for the recent power failure in the east coast of the US and Canada, is still being investigated. Imagine when the electricity grids of south Asia are all connected which has to happen during the next 10 years. While we are in this first wave world without the knowledge to handle such a complex matter, how will we cope? Has the ADB who is handling the unbundling of the CEB sent our young engineers to the west for training to acquire this knowledge?

There is so much debate about developing our stock market. Have we been able to come up with anything new, such as mortgage backed securities, real estate investment trusts, capital guaranteed notes swap deposits? We are waiting for the foreign banks, who possess the knowledge of these money market instruments globally, to launch these new products or train our local staff in the knowledge they lack, in return for the market share they have accessed without much effort.

We need expertise in the preparation of bankable documents on the priority projects identified by the government to attract foreign funds. At a time when word stock markets are under performing and interest rates are so low for deposits, any fund manager will look at long term investments, if only we have bankable documents.

We hear complaints from every sector of society how the bureaucracy is blocking and deliberately delaying and placing obstacles in the way of progress. Having been exposed to government service in the last eight months, I can defend them because they are governed by a set of rules and regulations which have not been amended for decades.

Every time I want to do something in the bank the way I was used to in the private sector, I am told I have to obtain approvals under the Finance Act, Banking Act, BOC Ordinance, etc., etc., and these take a long time. The chambers must come forward and help the government to revamp this red book. Government officials must be sent to Harvard’s Kennedy School of Government, Wharton and Oxbridge, etc. to learn the latest management techniques and negotiating skills.

When the private sector is investing in technology, in supply chain management for just in time delivery, all that is of no use if you are dependent on a decision from the government which may take even a year. I know that tenders have gone on for as much as two years. By this time technology has changed, prices have come down and you have missed an opportunity that may never come back.

Why can’t tender evaluations be transparent, display the entire proceedings on the web and ask the tenderers to point out if you have made any mistakes in your evaluation? If you adopt this open transparent method, there is no need to bribe from the peon upwards to find out what’s going on.

Politicians and government officials are awfully afraid of the newspapers and readers are waiting for the next bit of sensational news about a government tender. As a result, everything is delayed because no one is willing to take a decision. What’s the solution to this?

Let us stop for a moment and think who is responsible for corruption. It is the giver. Without a giver, there cannot be a taker. Therefore the Bribery Commission must go after the givers and not the takers. The takers will gradually disappear when open and transparent procedures are adopted and every bit of information is made available to the tenderers on the worldwide web.

This government has appointed private sector managers to key institutions and we see very positive reports. Let us not kill their enthusiasm and instead make a concerted effort to assist them to install private sector management techniques by redrafting the rules and regulations to suit the new millennium. We are a very clever people excelling in every field internationally but collectively failed. Have we pondered to think why?

The river cannot flow back. We are in a global village and we cannot control this momentum of globalisation. But who is studying the shadows of globalisation and taking action to minimise them? What has WTO done to the third world?

We are impressed when the privatised state owned entities are turned around by the foreign managers because of the knowledge they brought in with them and the human resources needed. I am sure if we give the same autonomy to our people coupled with the freedom to access the knowledge by paying market salaries, we will be able to achieve the same result.

 Why are we unwilling to invest in our most valuable asset, the educated youth, who will grasp the third wave effortlessly? Human resource development must first begin with the public sector and sector reforms must be installed on priority basis.

Performance related reward systems must be in place and we must give all the incentives for our young executives who have experience in the knowledge economy to return, to help our nation to embrace this third wave without much conflict.

We need to invest a very large sum of money to access this knowledge if we are to survive. But we are not allowed to spend because of the outdated rules and regulations we are burdened with. If we calculate the total sum of money spent as management fees and consultancy fees, I am sure if that money is invested in exposing our clever youth to access this knowledge, we can at least expect a return on that investment within the next five years.

New skills of knowledge workers should be publicised and promoted extensively. In these activities it is possible for a knowledge worker to be based in SL but undertake the relevant activity in another part of the global cyber village while even serving a customer from another part of the world. We need to retrain our work force.

I was happy to see the government allocating Rs. 1 billion for English education. Why do we wait for the state to do all this? The private sector must lead. Even though we are very late in linking ourselves to this knowledge economy, it is now possible to leap frog to the resource.

To solve our immediate problem we must lobby with the government to recruit Sri Lankans working overseas to return to our country and pay them the market salaries and incentivise them by assuring empowerment so that they do not get frustrated in trying to beat the system that is so hierarchical and old fashioned. We must first create the proper environment to entice them.

I am sure if we recruit these skilled people as middle managers in the public sector after installing the administrative service reforms and empower them fully with accountability, these people can be the change agents. We hear of many Sri Lankan achievers all over the world. Have we stopped to think why they can’t achieve their full potential here?

I personally do not agree that privatisation is the only answer. Who is the owner of HSBC or CITI bank or GE? Ownership changes daily on the stock exchange. It’s the management team that matters. When you select a stock to purchase, you are buying the CEO and his team, who are capable of enhancing shareholder value.

The public sector can be made to compete with private like in Singapore if the administrative reforms create the proper environment. Why should we sell our assets at a depressed price? Why can’t we enhance the value through professional management and then broadbase ownership by listing? Let us emulate the Singapore government Temasek holdings concept by transferring the shares of all the revenue generating SOE’s to a holding company with a mandate to maximise shareholder value and then list them.

Freedom must be given for skills input where ever necessary until we train our people. We must invest in our youth. Never have so many been able to travel, to communicate and to learn so much from other cultures. We must as a first step launch the widest possible public debate over the need for a new administrative and political system attuned to the needs of the third wave.

We need conferences, TV programmes, contests and simulation exercises to generate the broadest array of imaginative proposals for restructuring our educational system and to unleash an outpouring of fresh ideas. The responsibility for change therefore lies with us. This means fighting off the idea-assassins who rush forward to kill any new suggestion on grounds of its impracticality, while defending the current status quo. We have a destiny to create.

I am leaving you with all these thoughts, which I am sure all of you have had before, but now it is time for action and can we all pool our resources and begin the change at least now for our children to inhabit a better country than what we live in.

Dabral — a guru in advertising

By Ranee Mohamed

 If good things need no advertisement, so it is with Sonal Dabral, Ogilvy and Mathers’ Managing Director and Executive Creative Director from O&M in Kuala Lumpur, Malaysia.

Dynamic, spontaneous and soft spoken, Dabral’s keen eye for soft detail is portrayed in the way he speaks and even in the way he appreciates and lives his daily life.

“A product must come out in a certain light. People have to be told about the benefits of the product and what to expect,” said Dabral, the man behind strong creative messages such as Milo, Ponds, etc.

Sonal Dabral has not only reached out and touched the world with his creativity, but has reached a peak of appreciation at Ogilvy and Mather. His ability has touched where it matters and unexpectedly in his own career too. Today he is considered a guru in the international advertising arena.

Attending the first ever conference of the region’s advertising heavy weights, Sonal Dabral’s visit to Sri Lanka and his appreciation of the beauty of this land makes Sri Lankans aware of the wonder of their own motherland.

“I like the setting run and the palm trees and the water in Sri Lanka. It is not that I have not seen this scene elsewhere in the world. It is just that in Sri Lanka it is so different and so tranquil,” said Dabral.

‘When one is in Sri Lanka there is a feeling that there is a lot of water around,” pointed out Dabral. Dabral’s recent Milo commercial too starts out with school girls and dolphins.

Sonal Dabral is an extension of nature — he wants to create, to touch people to tell them the benefits — he likes water, he likes colour, and it is no wonder that a born creater as Dabral has made his mark at Ogilvy and Mather.

There were various speakers from many planners in the region too, including three visitors from New York —Ogilvy and Mather’s Worldwide Head of Planning, Tony Wright, Emma Gilding who runs the Discovery Unit and Richard Welch who recently started Crystal, an Ogilvy company leading edge trends are a few other names that were associated with this conference.

Said Chairman, Phoenix Ogilvy Pvt. Ltd., Irvin Weerakody, “Sri Lanka is proud to host conference of this scale and magnitude. This event is of huge significance for a number of reason. Firstly, from a national perspective it means that people around the world are willing to put behind the negative perspectives brought about by decades of insurgency.”

“They now recognise the potential of the Sri Lankan market and are giving it due importance as a market of reckoning in the future. For advertising here, it could not have been better. The exposure our professionals will receive on account of this conference is tremendous.”

Creative directors, planners and regional business directors numbering over 100 attended this conference described as the “biggest and first ever.” There delegates from 20 countries across the region converged for this five day conference to evaluate strategies, creative concepts and share the latest trends in advertising and brand building in the various markets across Asia.

Facets 2003 — focus on Sapphires

Facets 2003 is the gem and jewellery show of Sri Lanka. Promoted by the Sri Lanka Gem and Jewellery Association (SLGJA) in association with the National Gem and Jewellery Authority (NGJA) this exhibition is scheduled to be held from September 8 to 10 at the Hilton Colombo.

Facets 2003 is the 13th in the continuous series of exhibitions that has been held to promote Sri Lanka as a prime source of gem stones in the world. The theme of Facets 2003 will be ‘Blue and More — direct from the source.’

Sri Lanka will pay special emphasis on promoting the Sapphire family of gem stones for Facets 2003 as they are the only source known in the world for the best natural untreated Blue Sapphire stone.

Sri Lanka is also known for supplying blue sapphire stones to royalty around the world during the past centuries. Facets 2003 is now established in the international calendar of events of the gem and jewellery trade.

Among the range of stones on display at Facets 2003 will be rubies, padparadschas, alexandrite, cats eyes, star sapphires, star rubies garnets, spinels, topaz, aquamarine and moon stones among others, while the blue, pink, yellow and orange sapphires are expected to add extra glamour to this memorable event. According to Chairman, Facets 2003, Macky Hashim, this year there are approximately 80 stall holders of which nearly 25% are foreign participants.

“For the first time we have the participation from a Colombian emerald company besides participation from countries such as Australia, Britain, France, Germany, Italy, Japan, Korea, Malaysia, Taiwan, Thailand, Hong Kong, India and Europe among others. We have also received bookings of delegations from India, Japan, Bangkok, Hong Kong, Europe and the US to visit Facets 2003,” said Hashim.

Visitors to Facets 2003 will be treated to a wide selection of modern jewellery designed especially for the international market.

Commenting on Facets 2003, Carlos Suarez of Carib Emerald Ltd., Bogota, South America, said he is delighted to participate in this event. He is sure his visit will interest many other dealers from the American continent to take part in the future events.

Another significant step forward of Facets 2003 will be the availability of a web portal for the Sri Lankan gem and jewellery industry.

MiniBell centres at Sathosa outlets bring internet to the people 

“By opening MiniBell Centres at Sathosa outlets, Lanka Bell is making a very valuable contribution to the ‘e-Sri Lanka’ initiative. Lanka Bell’s very low call charges combined with affordable IT and internet access rates are enabling people in outstation areas to reap the educational and vocational benefits that connectivity can bring to their daily lives,” said Commerce and Consumer Affairs Minister, Ravi Karunanayake at the opening of the MiniBell Centre at the Sathosa outlet in Batticaloa.

‘E-Sri Lanka’ is the Information and Communication Technologies (ICT) initiative within the ‘Regaining Sri Lanka’ programme, set up to enable people all over the country to reap full benefits of the new digital economy.

MiniBell Centres has been opened at 10 Sathosa outlets so far in Colombo and outstations. People in Batticaloa, Buttala and Kandy are the most recent beneficiaries of the MiniBell Centre services, which include internet access, local and IDD calls and faxes, computer games, printouts, BellKards for IDD calls from any telephone, new Lanka Bell connections, bill payments, etc. Both the MiniBell Centre and the Sathosa outlet in Batticaloa are served through a Lanka Bell VSAT satellite connection — the first of its kind outside the Jaffna peninsula, after Jaffna, point Pedro, and Neliady. “We are very proud to play a pioneering role in reducing the ‘digital divide’ between people in Colombo and the outstations,” says Managing Director and CEO, Lanka Bell, Joey V. Mendoza.