BUSINESS

Lanka Cement set to achieve turnaround

Lanka Cement Ltd., for long a loss-making state organisation, is set to achieve a turnaround in the near future. The company expects to capture a market share of 10 per cent next year and record a turnover of Rs. 1 billion, achieving profits for the first time in its 19-year history.

The company's trading activities have witnessed a huge boost since its relaunch of the Lanka Cement brand in June last year. So far this year, their total sales volume has exceeded 56,000 metric tonnes, and is estimated to reach over 95,000 metric tonnes by the end of this year. This is a notable increase over the 2002 figure of 33,000 metric tonnes and the 2001 figure of under 13,000 metric tonnes.

Chairman of Lanka Cement Ltd.,(LCL) Anil Koswatte attributed the increase in sales to their innovative marketing approach including aggressive advertisement campaigns.

He expects the organisation will record turnover of Rs. 750 million this year, but there will be a net loss of Rs.38 million due to interest on long outstanding loans. He says that next year, turnover can be increased to Rs.1 billion and confidently predicts profits.

Last year, the company made a turnover of Rs. 202 million and a net loss of Rs. 53 million. This compares with the Rs. 95 million turnover and Rs. 38 million net loss recorded the year before.

Koswatte noted that they have always achieved operational profits in trading activities, but due to provisioning for heavy interest on bank loans (obtained for the now-defunct plant in Kankasanthurai) they constantly recorded net losses.

Koswatte, who assumed duties as Chairman of LCL in March last year, claimed their innovative marketing strategy for their relaunched brand had enabled them to capture 5% of the island's cement market, where 17 brands and four major international players compete. He expects the figure to increase to 7.5% by the end of the year and to 10% in 2004. Even the major player in the market has not captured a market share of 30% for a single brand.

 The share price of LCL has also risen significantly in the recent past. When Koswatte took over in March 2002, the share price was only Rs. 1.25 but today stands at Rs. 8.50

His decision to relaunch the original Lanka Cement brand name, which had been unused for 12 years, has certainly paid off.

He noted that with the relaunch they saw a steady growth in sales due to a positive consumer response, SLS certification, the fact that many government institutions are opting to buy their cement, and the ready availability in most locations including Jaffna.

They have 50 distributors and 5 depots which will be shortly networked to the head office at WAD Ramanayake Mw., Col-2.

According to Koswatte, several foreign investors have expressed interest in reopening their Kankasanthurai factory. He added that the Public Enterprise Reforms Commission (PERC) has commenced negotiations with potential investors. The discussions may prove fruitful if the peace process progresses positively.

The company also intends introducing pozolanic portland cement in the near future for the first time in Sri Lanka. Testing is presently being conducted for SLS certification. This form of cement is very popular worldwide, it was noted.

 LCL traces its roots to the third development stage of the Sri Lanka Cement Corporation's Kankasanthurai project in 1980. The proposed capacity was 1 million metric tonnes per annum, but the installed capacity was 500,000 metric tonnes. The venture however suffered losses because it couldn't function to full capacity due to various constraints beyond management control.

Lanka Cement Ltd., was incorporated to commence commercial production. The company was listed on the CSE in 1983 with an authorised share capital of Rs. 180 million. The worsening ethnic crisis from 1983 onwards aggravated the company's predicament but they continued production on a small scale before finally halting production in June 1990.

LCL's accumulated losses during the period 1983-1990 amounted to almost Rs. 1.37 billion. Following the closure of the plant in 1990, trading of cement took place on a small scale, under different brand names. Turnover for the period 1991 to 2001 amounted to Rs. 1.7 billion, while net losses amounted to Rs. 465 million.

The 19th annual general meeting of LCL was held last week, when the report and accounts for the year ended December 31, 2002 were unanimously passed in the shareholders meeting.

Copedec-PIANC merger

AT the conclusion of the 6th International Conference of Coastal and Port Engineering in Developing Countries (COPEDEC) held in Colombo this month, an agreement was signed between COPEDEC and The International Association of Navigational Congresses (PIANC) to merge the two professional associations.

This agreement was signed by Summa Amarasinghe, Chairman, COPEDEC Permanent Secretariat, Eric Van den Eede, President, PIANC and Frans Kapp, Chairman, International Cooperation Committee (CoCom) of PIANC.

PIANC will now organise and hold CoCom/COPEDEC conferences in the future, and will attract funding support for the conference and continue to ensure that the conference will reach out to those coastal and port engineers on a global basis.

The conference held in Colombo had 250 participants from 44 countries. 180 papers were presented and a short course on coastal stabilization was also held. One third of the papers were research based, one third applied research and the balance were case studies. The participants also visited the Port of Colombo, Mahaoya - Lansigama coastal stretch on the north west and the Beruwela Fishery Harbour and the coastal stretch on the south west of Colombo.

The evolution of hydraulics was evident by the deviation in the content of the conference from physical modeling in 1983 to more and more IT based numerical modeling in research and problem solving in the 2003 conference. Coastal and port engineering is now more transparent, with public participation in planning. It now has a holistic analysis including impact assessment and a multi-disciplinary approach.

It is envisaged that the next conference will be held in 2005, probably in Dubai.

JKH private placement and rights issue

John Keells Holdings Limited (JKH) has announced measures aimed at raising equity capital, which will enable it to reduce its current debt component and facilitate the requisite gearing flexibility in financing new investment opportunities.

The board of directors have recommended to the shareholders a private placement of up to 24 million ordinary shares, each ranking pari passu with existing ordinary shares, at the closing market price of an ordinary share of JKH in the Colombo Stock Exchange as at the closure date of the private placement as determined by the board of directors of JKH and an increase of its authorised share capital from Rs. 3  billion to Rs. 10 billion in order to accommodate share issues in the future. The board also announced a rights issue of one (1) ordinary share for every seven (7) ordinary shares, existing after the private placement, at Rs. 75 per share.

An application made to the Colombo Stock Exchange for a quotation of up to 24mn new ordinary shares, raised through the private placement, has been provisionally approved. Once the shareholders have passed the requisite resolutions, the Board will place the shares with identified Investors. Based on recent investor and analyst feedback, the directors of JKH are confident of the placement being a success.

As mentioned earlier, the board has also approved a subsequent rights issue. These rights will be available on the increased share capital that includes the capital raised via the private placement.

JKH is actively pursuing other investment opportunities, which have a strong strategic fit with its existing core business sectors. Therefore, the company believes it to be prudent, and opportune, to increase its share capital, both authorised and issued, in increasing its gearing flexibility when financing future investments.

Benefits of listing with the CSE

Sri Lankan companies are emerging out of a relatively inactive period into one that has been predicted to show economic growth and political stability and with it a resultant increase of more investment and business opportunities. However, securing capital for expansion, research and development, advertising, packaging, etc, for most companies is an issue. Thus the opportunity to raise public funds is one option which is increasingly being taken advantage of by progressive Sri Lankan companies hoping to make an impact in their respective marketplaces.

More companies are taking to listing with the Colombo Stock Exchange (CSE) as suggested by the recent surge of high profile Initial Public Offerings (IPOs) such as the Sri Lanka Telecom IPO - the largest in Sri Lanka's history to date.

There have also been other listings such as the IPO of Lanka Hospitals Corporation (Apollo), the listing of Hayleys - MGT Knitting Mills Limited and Land and Building Limited, the IPO of Tess Agro Limited, the preference share issue and the debenture issue of Commercial Bank, the debenture issue of Hatton National Bank and more recently the Seylan Bank IPO of non-voting shares.

The increasing popularity of listings whether they are big or small can be attributed to certain key benefits that companies can access once they conquer today's essential issues of transparency and due diligence which criteria have to be continuously adhered to become and remain a listed company. Advantages are considered to easily outweigh the perceived minor inconveniences such as the continuing listing obligations such as furnishing quarterly statements and other shareholder related activity.

Advantages such as access to a potentially large pool of capital available through both individual and institutional investors both foreign and domestic which also continues beyond the initial listing to all later stages, even with companies who have already been listed. Companies can issue equity and debt securities as well as other securities continuously throughout their tenure on the CSE.

This ability to continue raising capital is of great benefit as long as a company has the shareholder goodwill required to issue different types of securities. A further benefit from raising capital from the stock market is the lower cost of capital that companies could access.

Then there are also the indirect benefits of becoming a listed company such as the tax reduction in the corporate tax that has to be paid annually. Being a listed company also allows for enhanced brand awareness and a level of prestige that few unlisted companies share as most listed companies get their listing amidst a media blitz which is partly due to the significant news distribution with local and foreign media on the stock market.

An added advantage derived from the need for listed companies to maintain strict transparency protocols - usually perceived as a downside of listing - is that the added prestige in conjunction with greater transparency enhances the listed company's ability to borrow from other sources as well. The stock market also offers an opportunity for companies to obtain a valuation for their shares. Given the growth and momentum in the market many companies are now considering a listing for this reason.

The process for listing which has been made fairly simple, straightforward and cheaper in recent times is set out briefly for the benefit of companies that are aspiring to go public.

There are three methods of listing that a company could opt to take depending on its requirements. The methods are an offer for subscription, offer for sale and introduction. While the first two options involve the public issue of new securities or the sale of existing securities, the introduction method allows for a company to maintain its exiting ownership structure while being listed as there is no public issue of securities which also makes the process much cheaper than the other two options.

An important step of the listing process is the appointment of a sponsor who must be registered with the CSE to sponsor new applications for listing. The sponsor firm is required to advise the new company throughout the listing process. The prospectus document which complies with the provisions of the Companies Act and with the prospectus requirements set out in the CSE listing rules is then prepared. Meanwhile a company seeking to list through an introduction is only required to issue an introductory document which is more basic that a prospectus.

Among a list of requirements that have to be adhered to under the listing rules of the CSE is the requirement to submit the initial listing application. This is where a company is required to submit an application for a listing which has to include a set of documents which are specified in the CSE listing rules and which includes a copy of the company's memorandum and articles, a draft of the proposed prospectus document and audited and financial statements.

Once approval is obtained from the CSE there is then a public issue procedure which follows the CSE listing rules, which outlines an issuing company's duties with regard to distributing the prospectus and application forms. The company can then begin accepting subscriptions for the securities to be issued.

In the event of an oversubscription, the company has to decide on the basis of allotment as to how they wish to allot the shares to subscribers. This process has a degree of flexibility that is given to companies by giving them the opportunity to decide the extent of their public issue so that the company in turn has the flexibility to decide the pace at which they wish to proceed. For example, the company can decide if they wish to have the share issue underwritten by an underwriter.

The listing rules of the CSE have been formulated to secure the confidence of investors by ensuring that companies will place sufficient information about their company to enable investors to form a reliable basis for evaluating the company. The rules also seek to ensure that the trading of securities is conducted in a fair, open and transparent manner.

Thus there are specific disclosure requirements with regard to the immediate public disclosure of price sensitive and material information, submission of audited annual accounts, half-yearly accounts and quarterly accounts, additional listing of securities, purchases and sales made by directors of their own companies and mergers and takeovers. These events have to be disclosed.

Even though the process of listing may cast certain obligations on the company, its benefits are much greater than any minor inconveniences - a heightened public persona, the veneer of respectability that people associate with listed companies, with the level of accountability and transparency, the enhanced access to a widespread investor base and better relationships to sources of funds.

Commercial Bank is 'Bank of the Year'
for the third time

The Commercial Bank of Ceylon has once again been named 'The Bank of the Year' in Sri Lanka for 2003, by The Banker magazine, a reputed publication serving the international banking community. The bank has been selected for the third consecutive year by the magazine which is published by Financial Times Business Ltd., of UK. The magazine is primarily circulated among CEOs and senior managers, but also has a large worldwide general readership.

In the citation on Commercial Bank, The Banker magazine states that "yet another solid allround performance in 2002, which led to a recent upgrade of its long term debt to AA+, has enabled the Commercial Bank of Ceylon (CBC) to take home the award again this year." Commenting on the financial performance of the bank, the magazine goes on to say, "While its competitors in Sri Lanka stumbled, CBC had a good 2002, raising net profit by almost 20% and maintaining its ROE at around 17%. There were significant gains in assets and Tier 1 capital as well, while efficiency, as measured by a cost-to-income ratio of around 55%, remained high."

Other criteria for selection included investments made to upgrade its main IBM server, which enabled the bank to increase the speed and efficiency of all transactions. The bank also extended its internet banking service for retail customers, enabling them to make payments of insurance premiums, public works bills and credit card bills online, and launched an online funds transfer facility. Editor-in-Chief of the magazine, Stephen Timewell has stated that "this achievement is all the more rewarding considering the incredible number and calibre of each of the entries we received as well as the difficult market conditions the industry has faced over the past year."

Commenting on the honour bestowed upon the bank, Commercial Bank's Managing Director, Amitha Gooneratne said, "All of us at Commercial Bank were elated by our nomination as 'The Bank of the Year 2003' for the third successive year. If reaching the top was difficult, staying there has tested each and every one of our staff even more and all credit should go to them."

The bank was also nominated the 'Best Bank in Sri Lanka' for the fifth consecutive year in 2003 by the New York based financial publication Global Finance and as the No. 1 corporate in the country by the Business Today magazine.

IT initiatives by Commercial Bank

As a result of the major IT related investments made by Commercial Bank during recent years, they have been able to significantly improve the time taken for realisation of outstation cheques deposited throughout the wide branch network. In any case, Commercial Bank cheques without a crossing have always been encashable over the counter of any branch, irrespective of the branch on which it was drawn. Commercial Bank is now in a position to extend a similar expeditious clearing facility even for cheques deposited to an account held with them.

Speaking to The Sunday Leader, Assistant General Manager (Operations), Commercial Bank of Ceylon Limited, S.D. Bandaranayake explained that having the country's largest computer linked branch network has enabled Commercial Bank to provide a quicker service to its customers both when encashing and collecting cheques. Explaining further, he said that with a Commercial Bank cheque, a customer could withdraw cash over the counter, while crossed cheques would be cleared much faster than other banks.

Bandaranayake asserted that even cheques drawn at Commercial branches in the north and east and deposited at any other bank are cleared within three days, as opposed to the seven days taken by most other banks. Once again this has been made possible because of the COMNET computer linked network linking up all the branches. As a result, more and more businessmen now prefer to be paid in Commercial Bank cheques for their transactions. Bandaranayake further stated that by using Commercial Bank cheques, customers are more likely to receive bigger discounts from business institutions as the money is received faster than usual. The Central Bank of Sri Lanka is also in the process of requesting banks to find means of reducing the time taken on cheque realisation. It is now a national objective to minimise the time taken to realise cheques, Bandaranayake said.

Considered near cash payments, a Commercial Bank cheque plays a vital role in the business sector of the country. According to Chief Manager (Marketing), Commercial Bank, Richard Rodrigo, customers should keep in mind that a chequebook is not a means to do business without money. Therefore, the bank does not take any return cheques lightly, as it also harms the credibility of the bank. "We screen accounts which have returned cheques in order to ensure that customers do not misuse a Commercial Bank current account," said Manager (Operations), S.Y. Ramsay who also participated in the discussion.

According to Bandar- anayake, Commercial Bank has recently begun promoting Commercial Bank current accounts, highlighting some of the unique benefits and this campaign has been well received. "When you offer a good product, the market gets to know about it even if the product is not intensely promoted," he said.

As for future plans, Bandaranayake stated that Commercial Bank has plans to introduce a method of settling utility bills through ATMs for the convenience of the bank's valued customers. The bank has also just been honoured with the 'Best Bank in Sri Lanka' award by the New York based Global Finance magazine for the fifth consecutive time and the London based The Banker magazine for the third time. So the next time you sign or receive a Commercial Bank cheque, you have the honour of belonging to Sri Lanka's No.1 company and its best bank.

Harcourts opens store

Harcourts opened its fifth Super Drugs and Family Store in Rajagiriya on September 6. The chief guest for the function was the well-known industrialist and philanthropist Al Haj Iliyas Careem. Notable among the other guests were Messrs Neizer Carder, Chairman, Sinwa Group of Industries, Ranjith Abeysooriya, Chairman Police Service Commission, Muslim Salahudeen and Ashraf Khan, General Manager Bosch Pharmaceuticals Pakistan. Situated on the ground floor of Nawala Road mosque premises, the sprawling drugs cum family store provides a relaxed ambience with all modern conveniences like air-conditioned comfort, credit card facilities, door delivery, and parking space. Speaking on the occasion, Chairman, Harcourts, Ahamed Rheyas elaborated on the concept of super drugs stores, the professional approach to drug retailing and the emphasis that the company places on offering fully personalised service to each and every customer who steps into Harcourts Super Drug Stores.

Khaitan fans gaining popularity

Ampex Commercial Agencies Private Ltd., is the sole agent in Sri Lanka for the entire range of Khaitan fans manufactured in India. Khaitan exhaust fans have become the number one choice for quality-conscious consumers in Sri Lanka.

Ampex operates a showroom at Prince Street, Col-11.

Khaitan's products include fans of every description - ceiling fans, table fans, pedestal fans, freshair fans and heavy-duty industrial fans.

Khaitan is today one of the largest fan manufacturers in India. With 19 offices located across India, they have established themselves as the undisputed leader in air-management technology.

Since 1971, the Khaitan name has become a legend for quality as well as innovations which are reflected in the design of pioneering product concepts such as freshair fans and models in the mini category.

The Khaitan factories in Kolkata, Hyderabad and Faridabad give them the capability to produce a wide range of domestic and industrial fans in many designs, sizes and colours. Their three state-of-the-art manufacturing facilities produce more than 100,000 units monthly, with an installed capacity to produce over 200,000 units monthly.

Each product is a result of a systematically documented quality assurance manual. This manual ensures rigid implementation of the quality policy for consistent customer satisfaction.

While the Faridabad factory is the company's R&D hub and earned the recognition of the CSIR (Government of India), the Kolkata and Hyderabad factories have earned the ISO 9001 certificate.

Khaitan has a network of over 3500 dedicated distributors and dealers. This highly efficient and motivated network goes a long way to create goodwill for the Khaitan brand among their many customers, besides creating availability and after sales service. Company sources stated they recognise the value of their distributors and dealers and the role they play in serving customers, while growing and sustaining markets.

Chairman, Khaitan Group of Companies, S.K. Khaitan said, "As a young entrepreneur in the early 60's, I was possessed by a burning desire to push the limits and create new goals for myself. Men like Henry Ford, Thomas Bata, Soichairo Honda and J.N. Tata who had the guts to build great brands with their own names, deeply moved me. And I was all set to turn 'Khaitan,' my family name, into a household word as well. In my mind's eye I saw Khaitan fans in homes, offices, shops, factories and godowns.

Today, Khaitan is already a household name and a leading brand throughout the country. But my vision continues to grow. Because everyday there is a new horizon to conquer, a new goal to reach."

Key services fail poor  people - WB report

A new World Bank report warns that broad improvements in human welfare will not occur unless poor people receive wider access to affordable, better quality services in health, education, water, sanitation, and electricity.

Without such improvements in services, freedom from illness and freedom from illiteracy - two of the most important ways poor people can escape poverty - will remain elusive to many.

The report, World Development Report 2004: Making Services Work for Poor People, says that too often key services fail poor people - in access, in quantity, in quality. This imperils a set of development targets known as the Millennium Development Goals (MDGs) which call for a halving of the global incidence of poverty, and broad improvements in human development by 2015, such as to cut child mortality by two thirds by 2015. Without major improvements in policy, most states in India, for example, will not be able to accomplish this MDG. Pakistan has not translated its respectable growth of income into better outcomes - enrollment in schools has been stagnant for almost a decade.

However, the report also provides powerful examples of where services do work, showing how governments and citizens can do better. The report says there have been spectacular successes and miserable failures in the efforts by developing countries to make services work.

The main difference between success and failure is the degree to which poor people themselves are involved in determining the quality and the quantity of the services, which they receive.

"Too often, services fail poor people. These failures may be less spectacular than financial crises, but their effects are continuing and deep nonetheless," says World Bank President, James D. Wolfensohn.

"Services work when they include all people, when girls are encouraged to go to school, when pupils and parents participate in the schooling process, when communities take charge of their own sanitation. They work when we take a comprehensive view of development - recognising that a mother's education will help her body's health, that building a road or a bridge will enable children to go to school."

The report comes at a time when rich countries have pledged to increase foreign aid, and poor countries have pledged to improve their policies and institutions, to try to reach the MDGs. "To accelerate progress in human development, economic growth is of course necessary, but it is not enough," says World Bank Chief Economist and Senior Vice- President for Development Economics, Nicholas Stern. "Mobilising to reach the 2015 development goals will require both a substantial increase in external resources and more effective use of all resources, internal and external. The report offers a practical framework for using resources more effectively."

"The challenge is formidable," says Shekhar Shah, World Bank Sector Manager and a member of the WDR team. "Making services work for poor people involves changing public sector institutions - those that govern the budget, the relations between central and local governments, the civil service, and others. It also involves changing the way much foreign aid is transferred. But the report suggests that there are strong examples of services working, and by learning from these examples, governments and citizens can do better."

The report documents three ways in which services can be improved:

1. By increasing poor clients' choice and participation in service delivery, so they can monitor and discipline providers. School voucher schemes - such as a programme for poor families in Colombia or a girls' scholarship program in Bangladesh - increase clients' power over providers and substantially increased enrolment rates. Community-managed schools in El Salvador, where parents visited schools regularly, lowered teacher absenteeism and raised student test scores.

2. By raising poor citizens' voices, through the ballot box and making information widely available. Service delivery surveys in Bangalore, India, that showed poor people the quality of the water, health, education, and transport services they were receiving compared to neighboring districts, increased demand for better public services and forced politicians to act.

3. By rewarding the effective and penalizing the ineffective delivery of services to poor people. In the aftermath of a civil war, Cambodia paid primary health providers in two districts based on the health of the households (as measured by independent surveys) in their district. Health indicators, as well as use by the poor, in those districts improved relative to other districts.

Corporate leaders gather to
launch project SHILPA

By Pat Manix

Corporate leaders from Colombo's leading firms gathered at the National Council of YMCAs of Sri Lanka (NCYSL) to launch project SHILPA, a finance campaign to support youth activity islandwide.

Present were President of NCYSL and Chairman, Colombo Stock Exchange and Chairman, Bartleet & Co, Eraj Wijesinghe along with Chairman, CIC (Ltd.) and Managing Director B.R.L. Fernando who chaired the meeting and other leaders.

The power point presentation highlighted the activities of the 38 YMCAs throughout the country.

The impactful presentation emphatically brought to the notice of all those present the work the YMCA's were doing for social upliftment particularly among the poor and the deprived.

Being an international organisation there is a lot of exchange support from other countries.

Norway sends two youths annually for youth work at university level.

There is another tri-continental programme involving South Africa, Norway and Sri Lanka. Boginkosi Johnny Ntusi from the Republic of South Africa was here working as a peace consultant.

YMCA's contribution to Sri Lankan society is well known. They are determined to continue their good work. They deserve to be congratulated for harnessing the best corporate talent in the country.

They are an approved charity and headquartered at 143, St. Michael's Rd., Colombo 3.

They also wish to capitalise on the ceasefire agreement and contribute.

At Wadulla-watha, a Colombo slum, 90% of children of school going age were not accepted by the schools. The YMCA started a pre-school and 80% of these children are attending schools now.

Likewise the YMCA's have been conducting programmes to improve the social and educational levels of the underprivileged in addition to their regular children and youth programmes.

Camps, seminars and group activities in games and music promoting fellowship among the alienated is a characteristic activity of the YMCAs now. The corporate leaders present recognizing the commendable programmes pledged to raise Rs. 6,000,000.

It shows the confidence they have in the direction the country is heading. The YMCAs also have taken the ceasefire as a spring board to jump start activities all over the country on the basis of SHILPA, which is an acronym for:

Stimulation

Head start

Interaction

Life skills

Peace education

Aesthetics

The YMCAs are poised to optimise their services to the children so that they can gain their humanity and shape a future for themselves where equality and human dignity will prevail ensuring peace and prosperity for all.

Need for responsible leadership

By Dinesh Weerakkody

Some time ago, Time magazine asked in a cover story "Who's in charge?" and answered its own question saying, "the nation calls for leadership and there is no one home." This quote made me remember some of the utterances of our leaders both in the JVP and our so-called trade union leaders about the recent health workers strike.

Today while our economy is regaining the confidence of the international community, some of our leaders are attempting to disunite our people to pull our country apart again. The recent clashes between two student factions in the Jayowardenapura University which is believed to have been orchestrated by the JVP backed student union is a case in point.

Take South Korea, their leaders in 1998 had the credibility and courage to inform and bring people together to pull the country out of near bankruptcy, the rest is history. But most of our national leaders only blame each other.

Look at the number of luxury vehicles that are being used by the so called people representatives and the resources used during election time by all political parties to sling mud at each other. For a change how about using some of those resources to build roads or even start a factory to provide employment to the unemployed?

Like other great leaders our leaders must first deliver and give people a sense of purpose and direction before enjoying the benefits of high office. However, most of our leaders have clearly shown us that they did not have the capacity to create a compelling vision that takes people to a new place or on the other hand even understand the awesome challenges and responsibilities of holding high political positions of leadership.

Political leaders have a significant role to play in creating the state of mind that is the society and they can serve as symbols of the moral unity of society. Our country needs leaders at all levels who can conceive and articulate goals that lift people out of their sense of helplessness, carry them above the conflicts that tear a society apart and unite them in pursuit of peace and prosperity for all sections of the community.

Politicians around and those who take responsibility for the future destiny of our nation must build confidence in the government without sending the wrong signals and resting hopes on shaky politics.

Reality

But the reality is that in most developing countries in South Asia where people are finding it hard to live due to escalating world prices their leaders continue to muscle their way about the country in BMWs and Benzes followed by a huge contingent of security personnel. There is something radically wrong with this social system. More than ever before millions of South Asians are crying out for leadership as their countries continue to slide due to reforms being backpedaled and shaky politics being practiced by all political parties.

It is very clear in Sri Lanka that public demonstration of the type of leadership the nation is looking for is scarce and that the nation as a whole do not want to support politicians who spend millions of rupees to create superficial images or have lavish extravaganzas, when it is crunch time for the common man.

Our leaders even at this late stage must make every effort to generate and sustain trust and provide meaning and common purpose to every individual in this country. If this means the two main political parties working together, so be it. Otherwise at some point the tolerance of people will give way causing undue hardships to all communities.

Private sector

Whether one is in government or in business, effective leadership is what is needed to steer a country or a business, especially in difficult times. In fact the Prime Minister recently reminded some of the top CEOs in the private sector that they have a moral obligation to join hands with the government to solve the graduate unemployment problem. The private sector must realise that if the unemployment problem is not resolved soon it could very well give rise to social unrest and turmoil, making it difficult for the private sector to operate freely.

Therefore as the new economy unfolds across Asia and the world becomes one market Sri Lanka needs a new breed of business leaders and managers, who can articulate a clear vision, display an exemplary commitment to the law and deliver sound politics.

They must be businessmen and professionals who can react swiftly to and exploit the series of economic disturbances and opportunities that are sweeping the region.

These men and women who will direct our private sector and be responsible for our economic fortunes in the next millennium must embrace the fundamental change in business philosophy required to deal with these challenges.

Our future business leaders will be the people responsible for reshaping out private sector, our economic fortunes in the next century and even pull our nation together to cope with future challenges, in the absence of sound political leadership. But for this transition to take place our business leaders need to project themselves beyond their customers. They must reach out to communicate and participate in public affairs.

In the final analysis, it seems the challenge of the future for our political parties would be to develop a core of leaders who can manage the region's explosive growth and the challenges thrown up as a result.

Then our business leaders in Sri Lanka must realise that the protective walls are tumbling down fast and companies in the region would seek to invade our territories looking for new business opportunities and people within these companies are looking to their leaders to inspire and excite their organisations to bring out the best in their people.

Suriya - unique products
made out of natural materials

Products made out of rattan, reed, bamboo and other natural material is what makes Suriya a popular name among households and those interested in something unique for their home.

Searching for furniture for their new home was what inspired Ruwanmali Jayasinghe to set up a shop of her own. While travelling to remote areas in the country Jayasinghe came across many people engaged in craft making.

"I noticed that most of these people had the talent to turn out beautiful handicrafts. However, their products lacked quality," she says. According to her, these villagers most often had no market for their products, which is why they were compelled to sell their produce to nearby shops or anyone willing to purchase them.

Jayasinghe went on to say that she realised the potential these products would have in the local and foreign market. "I thought to myself, if I purchase these products made out of raw materials this would solve the unemployment problem in the rural areas of the country."

But before the purchasing of the products Jayasinghe had to train the villagers on how to turn out good quality items fit for a local or foreign market. Many were the days when Jayasinghe had to painstakingly sit by the side of some villagers and show them how to improve the quality of their products.

Around 72 families from Kandy, Anuradhapura, Matale and other areas are now providing high quality products on a regular basis to Suriya.  "Today the standard of living for these families has improved," says Jayasinghe who believes it is important to encourage rural folk to earn a living by doing something useful for themselves and the country.

Suriya has a wide range of products that include wrought iron furniture, wooden, rattan, reed and out door furniture, sofas, handloom fabric, aluminium articles, lamp bases and shades, handmade cutlery, hand painted crockery, reed and rattan baskets, ferro cement pots and candle stands.

At Suriya most of the products are made out of raw and natural material found in the local market. "There's so much we can do with the use of nature's wonders. But many people are not aware of the vast array of products that can be turned out of natural materials," says Jayasinghe.

"We pay the villagers in full once the goods are delivered and this encourages them to work harder and produce the type of goods we need," she says. According to her,  competition is very important. Customers should always have a choice in the market," she said.

According to Jayasinghe, a special feature at Suriya is the number of catalogues available where customers can pick the design of furniture of their choice. "We believe in our customers and therefore strive to give them the best at all times."

HSBC launches Concierge Service

HSBC launched its Concierge Service to offer HSBC Premier credit cardholders and gold credit cardholders in Sri Lanka greater convenience in their day to day lives.

The bank offers VIP customers this service as an alternative to having their own personal butler or assistant on call to handle the little time-consuming chores that can slow down an already busy lifestyle.

"The Concierge Service is another example of how a combination of our extensive international experience and local knowledge can work well to add value to our customers' lifestyles," said HSBC's Manager, Card Centre, Sarit Wijeyekoon. Value additions, including discounts and free special delivery of items such as fruits baskets, flowers, perfumes, chocolates, cakes, wines and champagne are some of the services that will benefit these customers.

"An exclusive delivery service is not all we offer. For example, with HSBC's Concierge Service at hand our HSBC Premier credit cardholders and gold credit cardholders need only pick up the phone and dial 2502407 and give in the dates and the hotel they wish to stay in, anywhere in Sri Lanka. Our staff do the rest, making sure that the customer's accommodation is seen to - even up to the tiniest pampering detail, such as ensuring that a complimentary basket of fruit or tray of chocolates is placed in the hotel room," Wijeyekoon said. The range of hotels includes Aitken Spence Hotels, Jetwing Hotels, and John Keells Hotels.

HSBC's Concierge Service also allows this customer segment the chance to reduce the hassle of making utility bill payments. "We handle payments of these customers' utility bills (including mobile phone, telephone, water and electricity) and insurance premiums, in an effort to make life a little more convenient for them," Wijeyekoon said.

"From ordering gift hampers on premium liquor and food items, to party equipment for a child's birthday party, we have dedicated staff ready to take over these chores - from purchase to doorstep delivery - so that our customers save time and energy, giving them the chance to relax and enjoy leisure time. What is more, we will continue to add value to this service by including convalescent hampers, baby hampers, limousine airport drops and pick-ups, in addition to a host of other exclusive services," Wijeyekoon added.

Seylan conducts second
programme for importers and exporters

Seylan Bank conducted the second in a series of programmes to create customer awareness on 'Import / Export Documentation and Foreign Exchange.'

The purpose of the progranmme was to deal with the intricate issues faced by importers and exporters in the course of their day to day business activities. The much welcomed seminar was held at the Taj Samudra Hotel in Colombo on  September 13 with around 75 customers of the bank participating.

The welcome address was delivered by the Director/General Manager/Chief Executive Officer, Rohini Nanayakkara with the presentations being made by an eminent panel of speakers selected from the management of Seylan Bank.

In her speech Nanayakkara touched on key aspects and the need for understanding the risks associated with the foreign exchange market in turbulent and volatile times such as at present, as exporters as well as importers have to know the art of taking advantage of the volatility in the area of foreign exchange in order to make their businesses profitable. They need to know not only the trade they are engaged in but also to make use of the opportunities available in the foreign exchange market which can bring about increased value addition.

Even at the previous seminar held a year ago Nanayakkara reminded the audience of the importance of knowing the technicalities in the area of exchange risk management. In less than a year after the seminar, the foreign exchange market turned out to be more volatile than ever before with the Euro increasing to historic highs whilst the dollar took a slide. Other areas of increasing volatility were evident throughout the beginning of this year and included currencies such as the Japanese Yen and Sterling Pound.

The technicalities involved in the foreign exchange market cannot be grasped by customers immediately. Instead it must be acquired through seminars of this nature as well as by consulting the specialised staff of the bank in the international and treasury divisions, it was noted.

Among those present were Senior Deputy General Manager - Metropolitan Banking, Leonie Seneviratne, Deputy General Manager - International, Samuel Jebaratnam, Consultant Treasury and Overseas Operations, Freddie Jayarajah, Deputy General Manager - Corporate Banking and Foreign Currency, Ajantha Maddurapperuma and other heads of the international division.

The panel of speakers at the seminar included Assistant General Manager - Chief Dealer, S. Palihawadana, Assistant General Manager - International, Shafeek Samad, Chief Manager - International, Damayanthi Tillekeratne, Chief Manager - Foreign Currency Unit, T. Ethiraj, Manager Exports, Priyantha De Zilva, and Manager Imports, Thilak Samarasinghe. The open forum discussion was chaired by  Consultant, Treasury and Overseas Operations, Freddie Jeyarajah.

 This is a clear indication of how Seylan Bank is not only providing a service but also expanding one's knowledge and skills in order to maximise profits bringing about value addition through skillful handling of international transactions in the import and export trade. This seminar also provided a platform for customers to meet their bankers face to face enabling them to tell the bank what they expected and in turn the bank was able to tell them what it can offer.

With focus on learning and specialising in key areas such as international trade, Seylan Bank targets a customer base that will support the bank's growth strategies. It already enjoys a strong presence in trade financing activities and has been of service to many small and medium sized businesses, especially indigenous Sri Lankan entrepreneurs.

UML pollution control campaign in Kurunegala

United Motors Lanka Limited (UMLL) recently teamed up with the Ministry of Environment and Natural Resources on their third special environment drive. It was a success story with a massive turnout of vehicles of all brands.

The chief guests at the event were Deputy Minister of Environment and Natural Resources, Indika Bandaranayake and Environmental Scientist and Founder, National Programme on Recycling, Dr. Ajantha Perera.

The benefits offered to customers of any brand of vehicle were:

Free emission control report

Free inspection

Free condition report

Free minor adjustments

Special discounts.

Being in the automobile trade, maintaining a healthy physical environment is considered vital to the long term sustainability of UMLL. Hence throughout the years the company has been striving to work in harmony with the environment and seek to minimise all forms of pollution. The company has taken the following steps to safeguard the environment.

So far UMLL has invested approximately Rs. 1.5 million in pollution control equipment. Engine analysers and exhaust  emission testing equipment are used in the workshop to fine tune vehicle engines in order to minimise damage to the environment. The use of a refrigerant gas recovery and recycling machine enables to purify and reuse the harmful refrigerant gases discharged from vehicle air conditioning systems that would otherwise cause depletion of the ozone layer.

The effluent discharge from the day to day activity of servicing vehicles is treated in a skimmer to separate the oil and grease. The oil/water separation process is further enhanced by the flow of all affluent through an oil/water tank that ensures only water of a quality conforming to relevant environmental standards is discharged.

With a view to making a contribution towards the country's drive for a greener environment, special service campaigns were carried out at central locations for the testing of vehicle emission levels. Two programmes have been completed and more are planned for next year.

World class cardiac care at Durdans Hospital

Durdans Hospital initiated setting up its Durdans-Escorts Heart Centre in 1997 and it became operational from January 1999. Durdans Heart Centre was established through a strategic alliance with India's No 1 cardiac care hospital, Escorts Heart Institute & Research Centre (EHICR). The Escorts Heart Institute is one of the largest cardiac care providers in the world and since its inception in 1988, it has offered high standards of heart care to patients from all over India, as well as other countries.

This institute provides comprehensive cardiac care, spanning from basic facilities in preventive cardiology to the more sophisticated curative technology. It has established high standards in primary research, medical training and delivery of healthcare. The institute specialises in offering surgery to high-risk patients and has introduced innovative techniques of minimally invasive and robotic surgery, making it an advanced tertiary referral centre.

The single centre concept of a cardiac centre was initiated in consequence to the negotiations entered into with its strategic partner, EHIRC. The Heart Centre was established in two phases. Phase 1 is the non-invasive Cardiac Centre which was setup under the flagship hospital, Durdans Hospital and it comprises the following:

Heart Command Centre (Super Coronary Care Unit)

The 10 bedded state-of-the-art Heart Command Centre (HCC) was setup to provide care to critically ill patients suffering from heart attacks, heart failure and arrhythmia. The HCC is well equipped with advanced electronic bedside monitors linked to a central console and is monitored by doctors specifically trained in coronary care techniques. The centre is supplemented with modern life support devices.

Heart Station

The Heart Station provides comprehensive advanced cardiac services such as ECG, Exercise ECG, 2D Colour Doppler Echocardiograms, Stress Echocardiograms, Holter Monitoring (24 hour ambulatory ECG and remote transtelphonic arrhythmia), Ambulatory Blood Pressure Monitoring and Pulmonary Function Test (Lung Function Test). The Morgan lung function equipment with transfer factors, which is regarded as the gold standard in cardiac lung function testing equipment which can assess severe heart conditions, also takes pride of place at the unit.

It provides patients with the finest cardiac services in the country. The Heart Station also houses the consultation chambers, where one can consult the best of cardiologists and cardiac surgeons available in Sri Lanka. The Heart Station has performed over 200,000 cardiac investigations since its establishment in January 1999.

Heart Surgical Centre

Phase 2 of the cardiac project was initiated in 1998 and it became operational in November 2000. Durdans Heart Surgical Centre (Pvt) Limited was established by creating a separate legal entity approved by the Board of Investment of Sri Lanka under Section 17 of the BOI law of 1978.

The centre is focused on cardiac surgery and offers all aspects of interventional cardiology. Treatment is provided by a resident team of renowned cardiac surgeons seconded from strategic partner Escorts Heart Institute and renowned Sri Lankan visiting cardiac surgeons and international cardiologists.

Sri Lankan is world's number
one in computer science

Jerastin Dubash has done Sri Lanka proud. At the recently conducted London A- Level 2002 examination, young Jerastin achieved the best results in the world in computer science. This is indeed an immense honour for the country as well as for her school, Colombo International School.

At a glittering awards ceremony held at Colombo Plaza, she was given a trophy and medal to commemorate her unique achievement by  wife of the British High Commissioner in Sri Lanka, Sharon Evans, as an audience of over 500 gave her a standing ovation. Jerastin is presently following a degree programme in computer science at the University of Stanford, California, USA. That in itself is an achievement since she is the only student from Sri Lanka to have entered this prestigious university in the past four years.

According to the Principal, Colombo International School, David Sanders, Jerastin was a very able and disciplined student who always gave her best when she was in school. He said it was evident that computing was her forte although she has achieved very good results in other subjects as well.

Breast cancer awareness campaign

Ceylinco Cancer Detection Center will distribute over 100,000 pink ribbons in Colombo and the suburbs next month as part of a massive awareness campaign on breast cancer.

The campaign in October, designated globally as the breast cancer awareness month, seeks to convey the message that timely detection can cure breast cancer. The campaign will be backed by a demonstration of the  centre's commitment to the cause of breast cancer with a special offer on mammograms.

Pink ribbons are worn by people all over the world during the month of October to show they care about breast cancer and its victims. This year, all metropolitan branches of Seylan Bank as well as branch offices of Ceylinco Life, leading beauty salons, hotels and dress boutiques will support this effort in Colombo by the Ceylinco Cancer Detection Center, by making available the pink ribbons to their customers.

Browns and Standard Trading form alliance

Brown & Company Ltd. and Standard Trading Company (Pvt.) Ltd. have formed an alliance and set up two joint venture companies, Motor Marvels (Pvt.) Ltd. and Frontier Automotive (Pvt.) Ltd. These new corporate entities aim at being leaders in the Sri Lankan automotive industry.

Motor Marvels (Pvt.) Ltd. (MML) is the sole agent for Suzuki and Citroen vehicles in Sri Lanka. Suzuki has increased its presence in the local market significantly with the launch of the Grand Vitara XL 7. The Suzuki Liana and the Suzuki Ignis have also sold very well. In the Citroen range the Citroen C5 and the Xsara have been very well received by the Sri Lankan market. Frontier Automotive (Pvt.) Ltd. has just been appointed the sole agent for Land Rover, Rover and MG in Sri Lanka. This company will initially market and service Land Rover and thereafter move on to Rover and MG.

The vision of the new companies are to be significant players in the Sri Lankan motor sector. The strategy chosen by the company to achieve this is unique. The management of the two companies are very focused on after sales service, as they feel that by providing quality after sales service at reasonable prices, they will enhance the marketability of their product range which is inherently strong. The companies are also highly focused on creating a dynamic and stimulating environment for their employees. Training for all levels of staff in a wide array of fields is a priority.

As the agent for Land Rover in Sri Lanka, Frontier Automotive will take a lead in doing all it can to help environmental conservation. Land Rover International is strongly committed to protecting the environment and assisting conservation. Recently, Land Rover International donated a Land Rover Defender 130 to the Elephant Transit Home (ETH) at Udawalawe. This vehicle will be maintained by Frontier Automotive which will also assist the ETH in its fund raising efforts.