BUSINESS

CEB master plan mum on cheaper electricity

By Ann Nicholas

The price of electricity in Sri Lanka continues to be one of the highest in the South Asian region. The Ceylon Electricity Board (CEB) which rolled out its long-term generation expansion plan for the period 2003-2017 last week has failed to address the issue of providing cheaper electricity.

The CEB's current plans do not include any significant plans for coal power plants, although this is accepted as the most economical source of generating power.

According to the Institution of Engineers of Sri Lanka (IESL), Sri Lanka's electricity prices in the commercial sector are the highest in the region at Rs. 12.30/kWhr. In the industrial sector Sri Lanka's prices at Rs. 8.06/kWhr are only lower than those of Pakistan and Kerala and significantly higher than those in Malaysia, Singapore, Thailand and Bangladesh and as a result investors are shying away from the country on account of the high costs of electricity.

With the demand for electricity expected to increase in 2010 to 10,270 GWh from a demand of 6,175 GWh at present, the CEB has forecasted generation of 12,212 GWh in 2010, provided all projects are implemented according to plan.

While work on the 70 MW Kukule hydro plant and the 163 MW AES combined cycle plant is going on, the 200 MW medium-term diesel, 300 MW Kerawalapitiya combined cycle and the 150 MW upper Kotmale hydro plants are intended to start in 2005, 2006 and 2009 respectively.

One of the objectives of the CEB with regard to power generation as per the plan is that 'the generating system should meet the demand with adequate reliability at least cost.'

IESL commenting on the country's grave power situation states, "The absence of power cuts today has led to a false sense of confidence and complacency, conveniently forgetting the looming problems ahead to be solved by somebody else.Everybody appears to have forgotten that the power crises in the recent past were due to the delays in implementing the recommendations of the CEB made as far back as the late '80s.

"Further the IESL views with much concern the sprouting of diesel plants in various capacities and at various locations in the absence of a coherent and concerted plan to meet this crisis. The continued addition of these diesel plants on an ad hoc basis could lead to a situation where we may in time have so many diesel installations. If this trend continues it could be claimed that installation of more diesel plants, a little at a time, would be preferable to installing coal plants."

Power generated using diesel generators are unlikely to come cheap - being at the mercy of steadily rising world crude oil prices, thereby leading to a situation of sky rocketing electricity prices.

Deputy Power and Energy Minister, Sagala Ratnayake said that although it will not be possible to bring down the price of electricity, efforts will be made to prevent prices from increasing any further at least in the short term.

He stated that at the moment what the country needs in generation expansion is, first, an affordable option such as a coal plant and secondly the need for a stable system. He agreed that the emerging of several small scale diesel plants does not contribute to the regularity aspect of power generation and does not contribute to maintain stability.

He also agreed that the high costs of electricity in Sri Lanka is a disincentive for foreign investors especially in the industrial sector. Ratnayake attributed the current power crisis situation to the initial delay in the implementation of power generation plans in the early 1990s.

However, he stated that to overcome this growing problem, discussions are being held on a government-to-government basis with India to build a coal power plant either in Hambantota or Trincomalee. The pre-qualification procedures are being carried out at the moment.

An added burden to the already high cost of electricity will be the application of the revised VAT charge of 15%. Deputy Finance Minister, Bandula Gunawardena said that discussions are underway to provide relief and these plans are to be finalised and made known to the public before January 1, 2004.

This relief will be in the form of a reduction in duty which in turn is expected to compensate for the increase in the VAT charge.

Change at the top at Seylan Bank

The board of directors of Seylan Bank at its board meeting held on December 17 has appointed Ajith Pasqual as the bank's new general manager/chief executive officer with effect from January 1, 2004. "With due recognition of the need to have a proper succession plan in place, he was identified for this position and functioned as additional general manager since January 1 this year," the bank stated.

Pasqual will take over duties from Rohini Nanayakkara, who will be relinquishing her duties as general manager/chief executive officer on December 31. She will however continue to remain a director of the bank.

Nanayakkara, former general manager/ chief executive officer of Bank of Ceylon joined Seylan Bank as director/general manager /chief executive officer in October 1998 and during her five-year period of office, made a substantial contribution to the growth and development of Seylan Bank.

"Consequently Seylan Bank has earned a justifiable reputation as a customer oriented innovative bank, being also ranked among the top 10 companies of Business Today and LMD magazines."

Pasqual joined Seylan Bank after a career of over 22 years at HSBC Colombo. At HSBC he had wide-ranging experience in all aspects of banking, particularly treasury management and corporate credit.

'Bad times bring out the best'

Chief Guest at the  Entrepreneur of the Year 2003 awards, Resident Representative, International Monetary Fund (IMF), Jeremy Carter said that most successful entrepreneurs are born during the "bad times" and encouraged all entrepreneurs to work hard despite the situation prevailing in the country.

He further said that a successful entrepreneur is not one who makes money for himself but one who creates wealth to the country as a whole.

Managing Director, Royal Fernwood Porcelain Limited, Jagath Peiris won the 'Sri Lankan Entrepreneur of the Year 2002' platinum award, at the annual event organised for the eighth time by the Federation of Chambers of Commerce and Industry of Sri Lanka (FCCISL).

The Chairman, Organising Committee, Tissa Jayaweera identified entrepreneurship as one of the most enterprising opportunities that mankind can bestow upon themselves. He stated that while other countries are involved in exporting human knowledge, Sri Lanka is still at a stage where it only exports products and human power.

He expressed disappointment in the fact that small businessmen in Sri Lanka are rarely supported when it comes to borrowing, whereas in India, small businessmen can borrow at a rate of 6% interest.

He further said that the success of business at present largely depends on the actions of the government and while the nation chooses sit and watch, the country gets poorer by the day.

He stated that the government should not be involved in business and should instead work towards providing businessmen with a conducive political environment to successfully conduct their businesses.

The awards ceremony was held at the BMICH on December 18.

We need an apolitical public service

By Dinesh Weerakkody

With political rivalry reaching a critical stage and animosities holding out, a foreign journalist asked me a few days ago, "How independent, effective and politically sensitive is your public service?" My answer was, the question should never be even raised.

After all, the public service is presumed to be apolitical, neutrally organised, ipso facto, being called upon to serve the elected government of the day regardless of its political complexion.

While some argue the public service is an extension of the party in power, others argue the public service is a neutral setup carrying out the orders of the political leadership within the rule of law.

An interesting example was when late D.S. Senanayake directed a civil servant to hand over a file of an opposition member. His reply was "I cannot give you the file in private, but if the cabinet orders me to do so I will table the file." The Prime Minister then said, "Then I will not ask for it."

In this instance, both Prime Minister D.S. Senanayake and the civil servant demonstrated admirable qualities, which are, unfortunately not often demonstrated today. The prime minister respected the integrity of his secretary while the secretary respected the integrity of the laws he had sworn to uphold.

As is well known, these high traditions became seriously eroded for the first time during the United National Front government's period in office 1970-1977. Since then, the respect for persons and the respect for law have steadily deteriorated.

In this context, much hope revolves around the Independent Public Service Commission the UNF government set up to bring some semblance of sanity to this country.

Sensitive

A well-known prime minister of an Asian country once told his administrative service that civil servants must be politically sensitive. Some eyebrows, it seems, were raised among those who saw it as an indication of the service drawing closer to the government, and the line between public servants and the political masters becoming blurred even more.

Those who say the public service should be politically sensitive fail to understand how the public service operates. Theoretically speaking, yes, public servants are politically neutral even they cast their votes during election time, voting on policies and offering rather than political allegiance.

Although the reality is different, once a government is formed, they have to put aside their political allegiances, and serve the government of the day. That means carrying out the government's programme efficiently and effectively, as well as formulating and refining policies.

Professional approach

Realistically speaking, if they happen to have also personally voted for the victorious party, well and good; if not, they must be professional enough to put aside their differences and disappointments and do the jobs they have been paid to do by the taxpayers. If they cannot bring themselves to do so, then they ought to look for jobs out side the service.

There are also those who would argue that there is a very clear line dividing the job of public servants and their political masters. Cross the line, they say, and you compromise the integrity of the civil service, making it an extension of the party in power.

However, in reality such a fine line rarely exists. Public policies are not neatly packaged into little compartments, some meant for politicians, others for civil servants. For example, when the government decided to reintroduce capital gains tax, civil servants get closely involved as the political leaders in devising the various intricacies of the tax scheme. Part of the work is to make the scheme more acceptable to the public. In short, make the scheme politically more palatable to the people.

Should public servants refrain from even thinking about these so-called political matters? Now, I do not know who first thought of that. However, I am positive a politically sensitive public servant would have been just as proud to lay claim to it as his minister. So, is there any real difference in the work of ministers and senior public servants?

There is at least one, and it is that ministers are likely to spend a great deal more time thinking about what they want to achieve, while public servants devote greater attention to predicting the outcome of various alternative policies and perhaps support some of his minister's political activities.

Take health policies for example. Ministers must settle basic questions such as, how much of the cost of health care ought to be subsidised by the state. Needless to say, this involves fundamental questions about 'values'- whether a heavily subsidised system such as that in welfare states is preferable to one that is largely financed by the private sector.

Realistically speaking, public servants rarely think about these matters, taking them as given and set by the politicians. They would ideally devote their attention to calculating what different subsidy level might cost the government and how each of these levels would affect health cost for the general public.

Now when ministers discuss questions of values, they invariably have to think about what sort of society they want, taking into account the existing values of the population.

Values

If there is broad agreement or consensus among the population on basic values that affect a particular policy, then ministers know they will have relatively easy time selling them. Of course, this does not mean there will be no disagreement because those who even agree on basic values may differ over how these values get translated into, objectives, and ultimately, programmes.

However, the really tricky problems arise when there is no such consensus on fundamental issues. The population is divided and the government is stymied into bargaining to sell these policies to the people.

Policies

What are the policies that commonly fall into this category? This is how I would classify some of the more controversial issues in a democratic country. Viz those involved in a clash of fundamental values.

(a) Language: for example the 'Sinhala only policy' of S.W.R.D. Bandaranaike.

(b) Culture: question such as whether the different races/ethnic groups should go out of their way to develop their own cultures or submerge them in an attempt to develop a common Sri Lankan identity.

(c) Religion: the need to maintain religious harmony, there is still a sharp disagreement over how active religious groups ought to be when reacting to pressing socioeconomic issues of the day.

Of course, these are also the main problems, which have proved to be insoluble for the past three or more decades. It is a very unfortunate fact that people who have been trying without success to solve these problems count among them the very persons who were partners in creating the problems in the first place.

Others who are trying to solve those problems are persons who, for a long time now, have tried and failed to solve those problems. They should admit their failure and fade out of the scene for good. People, of maturity and dynamism, without a long track record of failure, and with a vision for the future should now be given the chance.

In addition, the government should recruit or develop a competent, commercially oriented technocratic cadre, and insulate it from day-to-day political interference and political animosities to devise a credible economic strategy and to establish a business friendly environment. That is the only way to the future.

Banyan Tree optimistic - will go ahead

Following The Sunday Leader article on December 7 to the effect that hotel chain Banyan Tree had suspended its investments in Sri Lanka, Chairman, Banyan Tree Holdings, Ho Kwon Ping has sent in the following response.

"We remain optimistic about the peace process in Sri Lanka and believe that the current political issues within the government will be resolved. We will carefully modulate and calibrate our investments in Sri Lanka by actively proceeding with the refurbishment and opening of Deer Park Hotel and its Angsana Spa complex in early 2004, and the refurbishment and opening of Hotel Swanee by late 2004. By that time we hope the political climate will be conducive for us to proceed with further projects. Moreover, the Angsana City Club and Spa at Crescat City with its management and operations under Angsana Spa, will open in mid 2004, as announced.

"We are committed to managing and operating Deer Park Hotel which is one of our three initial properties spearheading the 'Colours of Angsana' launch, our planned foray into the soft adventure and cultural tourism market segment. Deer Park Hotel is fully supported by our extensive worldwide sales and marketing network, and our travel partners in London share our positive sentiment for both the Deer Park and Swanee projects. At the World Travel Mart held during November, leading UK tour operators Kuoni Travel, LastMinute.com and Barefoot Traveller signed contracts to feature Deer Park Hotel in their programmes. Leading tour operators in Europe have also shown considerable interest.

"In October this year, Banyan Tree Holdings purchased 69.9% of Beruwala Walk Inn Limited (Hotel Swanee) from John Keels Holdings Limited (JKH), the first step in a strategic relationship. Banyan Tree Holdings has planned for significant ongoing expansion in several countries, and Sri Lanka has been identified as one destination where our company sees much potential for investments. We are looking at possible projects and the introduction of the signature Banyan Tree and the Angsana brands here through the development of hotels and resorts."

Premier Pacific No. 3

Premier Pacific unveiled plans for its latest property development venture, a mixed development complex titled Premier Pacific Topaz in Colombo last week.

The project, which is expected to cost approximately Rs. 3.5 billion (US $ 35 million) will be situated on Galle Road, Colombo 3, on Colombo's 'Golden Mile' and is the third venture undertaken by Premier Pacific.

The developer of the complex is Premier Pacific Topaz (Pvt) Ltd., a BOI-approved company backed by Premier Pacific International (Pvt) Ltd., of Sri Lanka, and Sunshine (Far East) Ltd., of Hong Kong.

Speaking at the prelaunch briefing, Chairman of the Company, Nimal Perera remarked that from its inception six years ago, Premier Pacific was growing in "leaps and bounds" from Premier Pacific 2001 to Premier Pacific Pinnacle and now Premier Pacific Topaz.

Chairman of Sunshine (Far East) Ltd., Sonu Vaswani reiterated his company's commitment for future projects of Premier Pacific; "We are contributing not only in terms of actual finances but also assisting in obtaining technology know-how and market trends internationally."

The building will consist of 23 levels comprising two basements, ground and 20 upper floors including a rooftop with service facilities. Following the success of Premier Pacific Pinnacle, a super luxury mixed development complex this complex will consist of a shopping mall up to the second floor, studio apartments from seventh floor to 12th floor and two, three and four bedroom apartments from 14th floor to 20th floor. A clubhouse, gymnasium, business centre and min health spa would be located on the 13th floor while a swimming pool and a 'water bar' will be located on the ground floor.

Nimal Perera said that the complex would provide the "ultimate investment opportunity" as the hotel section of the complex will comprise fully furnished studio type apartments complemented with room service, housekeeping service and butler service backed by attractive guaranteed rental returns and buy-back guarantees.

The prepaid prices of apartments range from Rs. 3.68 million to Rs. 15.04 million and penthouses from Rs. 19.2 million to Rs. 36.56 million. The company offers seven payment options including a flexible installment payment option.

EXi restructured

EXi Lanka (Pvt) Ltd. has been restructured to undertake turnkey telecommunication services including inside plant switching and radio implementation as well as civil works and third party product supply such as shelters, antennas and towers. The new structure and management was put in place effective from November 21. As part of this expansion process, Sierra Global Network (Pvt) Ltd. has acquired EXi Lanka (Pvt) Ltd.

President, EXi Asia, Edward Cheah said, "Since being established in 1995 EXi Lanka has developed a broad spread of telecom customers on a global basis. Whether directly or indirectly EXi has worked for almost all the major telecom companies in Sri Lanka. New partnership with Sierra Global Network has brought a number of strategic values to both EXi Lanka as well as to its customer base." CEO, EXi Lanka, Arosha Fernando said, "With our ISO 9002 accredited quality, fast response and cost effective solutions can be provided to all telecom vendors and operators in Sri Lanka on a truly multinational basis."

Plastic cash boosts seasonal spending

By Ann Nicholas

With the onset of the festive season, there is an evident increase in the personal spending levels. It was interesting to find that in spite of the uncertainty concerning the peace process and the prolonged discussions between the President and the Prime Minister, consumers are continuing with their plans for the season and are geared up to celebrate in style, even more so this year than last.

Public Relations Manager, Galadari Hotel, Nilukshi Rupasinghe said that more spending is seen during this season with advance bookings for Christmas and new year celebrations. So far 50% of the 31st night dinner dance tickets have been reserved. Rupasinghe said that going by the inquiries made this year it is going to be better than last year.

Also a fast trend that is catching on is the use of credit cards among individuals, which definitely comes in handy during this season and is a much safer method than carrying cash around. Even the financial institutions that issue credit cards have introduced various reward systems and benefits to cardholders that encourage the frequent use of credit cards.

Marketing Manager, Hong Kong and Shanghai Banking Corporation (HSBC), Kushantha Jeerasinghe said at the time credit cards were first introduced, people took time to get used to the concept of plastic money with the term 'credit' causing some skepticism. Now people are beginning to realise that it is a tool that provides a safer way to carry around cash with banks now beginning to go into segments in the market that weren't explored earlier.

Also spurring sales this season are the various discount promotions and benefits being offered to card holders. Jeerasinghe was of the opinion that the market has reached a point of saturation because when one credit card company introduces a certain benefit, all the other companies tend to follow suit by introducing similar deals. He went on to say that the objective of these promotions are to mainly retain the existing customers. He also said that the number of new cards issued by the bank has increased compared with last year.

An official at Standard Chartered Bank confirmed that there had been an increase in their number of new cards issued and in the outstanding amount when compared with last year.

General Manager, German Restaurants, Carlo Murcott said that bookings made in advance for Christmas and new year amount to around 50%. Speaking of credit card sales, in comparison to last year, he said there has been a significant increase of about 20 to 30 % in total sales.

Director, Keells Restaurants, Roshan Bandara said that the number of customers who make use of the various discounts offered by credit card companies at their restaurants amount to about 5% to 10% of their total number of customers. He said that these discounts alone do not induce people to dine at their restaurants, but they are advantageous in blocking customers from going to a competitor.

Manager, Keells Supermarket at Liberty Plaza, Dissanayake said that there is a definite increase in sales this season and stated that credit card sales have increased in comparison to last year.

Reckitts shuts down manufacturing,  logistics operations

Reckitt Benckiser (Lanka) Limited (RBSL) last week announced the closure of its in house manufacturing and logistics operations in Sri Lanka. This move is in line with cost cutting procedures deployed to halt continued losses and productivity issues experienced over recent years and a stringent refocusing of strategy to garner a better long-term status for Reckitt Benckiser in Sri Lanka.

RBSL decided to downsize its consistently haemorrhaging manufacturing and logistics units by offering a Voluntary Retirement Scheme (VRS) to its employees in specific divisions, which was initiated on November 4 and concluded on November 21 with hardly any takers.

Following this RBSL engaged in an exhaustive three to four weeks of negotiation spearheaded by RBSL management which encompassed the Labour Department, union and staff representatives failing to come to any compromise leading to the final decision to shut down.

Mega Colombo conclave

The Colombo Conclave, a mega event of insolvency experts and turnaround professionals, will be held at Hotel Colombo Plaza from February 13-15, 2004. The theme of the event is 'Balancing Recovery, Restructuring and Liquidation.'

This conference is organised jointly by INSOL India and Business Recovery and Insolvency Professionals Association of Sri Lanka (BRIPASL).

President, BRIPASL, Ajith Nivard Cabraal said the three issues of balancing recovery, restructuring and liquidation are different to each other but at the same time pose the greatest challenge to any person attempting to move troubled companies forward. Hence, these three issues together with the pressures they exert upon one another must be considered by any professional who is trying to turnaround troubled businesses.

Themes

He said they have been able "to attract the best possible speakers from all over the world" for this conference. It is structured as seven business sessions featuring the following themes:

Balancing recovery, restructuring and liquidation - the emerging challenges in Asia

Turnarounds - formal versus informal restructuring

The role of regulators in insolvency regimes

Value maximising from non-performing loans - reconstruction vs. enforcement of security interest

The Asian insolvency regimes - an overview

Principles and guidelines for effective insolvency and creditor rights systems

Cross border issues and the role of UNCITRAL

As could be seen, the conference would provide an excellent insight into the issues that are today significant and timely. Cabraal, who is also co-chairman of the organising committee, said, "It would perhaps be for the first time in the history of our nation that far-reaching topics are to be discussed at one conclave and I am sure it will attract the attention of government officials, bankers, accountancy and legal professionals and businesspeople who are involved in promoting business recovery."

He added that they have already received commitments from about 100 delegates from India, around 75 delegates from Sri Lanka and 53 delegates from other parts of the world. It is likely that finally there would be a minimum of 400 delegates, and that this would be excellent from their point of view because it would mean they have been able to provide a huge body of knowledge to those interested in the subject at a marginal cost.

Business recovery as a professional course of study is yet new, and evolving. It is like corporate governance in the early nineties. Today, corporate governance has become a buzzword and is seen as a vital tool and instrument in the development of business.

In Cabraal's view, business recovery would probably be a major area of study and development in the next few years. He felt that Sri Lanka is fortunate to get involved in this vital aspect of business at an early stage of its development. "We have a lot to learn and a lot to offer as a business and professional community. This conference would provide us with a wonderful opportunity to do both," he said.

He also stated that people are interested in forming businesses, but later problems arise, and the issues that confront the business then are different from those experienced at the start. He added that to respond to business difficulties and failures, there needs to be specific skills, specific assistance programs, new mindsets, innovative attitudes and the necessary laws. "In most of these conditions Sri Lanka lags behind. So we set up this association to provide some guidance as well as the background to develop skills and lobby for reforms," he added.

According to Cabraal, one of the state banks has about Rs. 25 billion in non-performing loans, and most banks have about 10-15 % of their loan portfolios in the non-performing category. "If we can help to make those non-performing loans performing loans by doing something, even one percent will make a huge impact," he stressed.

Benefit to the economy

He stated that if we can make businesses recover and restructure them to become viable again, we would materially reduce the non-performing loan percentage and that would be a huge benefit to the economy.

More jobs would be created, the cost of credit would decline, and entrepreneurs would be able to devote their time to businesses instead of running behind bank managers. Overall, it would spur economic growth and enhance wealth.

Says Cabraal, "For too long we have neglected the aspect of business recovery. Like any person, a business could also fall ill. So there must be physicians, hospitals, drugs and lifestyle changes in order to nurture these businesses back to good health. Otherwise, the businesses would die. Therefore, we have a huge obligation to bring this new dimension to the business field."

He noted that over the past few years, the World Bank has been particularly interested in this area because they realised that a country's entrepreneurs and the business sector need to be protected, assisted, sustained and encouraged. One cannot say that the private sector is the engine of growth unless it is assisted to perform its functions through turbulent times.

Cabraal said BRIPASL was formed to help stimulate thinking and promote discussion and study in the subject. Business recovery is a multidisciplinary skill. In order to carry out a recovery process successfully, the efforts of businesspeople, accountants, lawyers, bankers and other professionals in business are needed. That is why a multidiscip-linary approach is always recommended as a response to resurrect businesses.

Integrated approach

Cabraal noted that their association comprises of professionals in the fields of accountancy, legal, banking, and chartered secretaries as well as the Department of Commerce in order to bring in the integrated approach.

"Already we have made in-depth studies about the processes, laws and practices followed by more advanced countries and this major body of knowledge we have acquired is now helpful for us to respond to Sri Lankan business failures as well as develop and lobby for legal reform in Sri Lanka. We have been greatly encouraged by the response of the Commerce Minister Ravi Karunanayake, who has assisted us from the inception to play a leading role. Through him we have received the government's blessings to develop this process and we are greatly encouraged by that reaction," he added.

He further stated that in a very short period of time they also gained admission to INSOL International (headquartered in London), which is the global body comprising of 33 national business recovery and insolvency associations from all over the world.

He said their very early admission to INSOL International has been a source of inspiration and has given them immense reach into international developments taking place worldwide. At the same time, they have developed a very stable partnership with INSOL India and together decided to host The Colombo Conclave.

New direction for  Trans Asia

With a new general manager appointed a few months ago, Trans Asia Hotel is all set to become the most sought after five star city hotel. Speaking to The Sunday Leader, General Manager Andre Kretschmann described plans to build the image of the hotel to that of an international five star hotel. As a step in that direction, the hotel will begin renovations next year where guest rooms and several public areas in the hotel would get a new lease of life.

Kretschmann stated that the hotel would also upgrade its IT system simultaneously in order to be on par with international IT standards - that would not be outdated for at least another five years. Kretschmann brings with him 20 years of experience in the hospitality industry. Known as a hands-on achiever, especially in setting high service standards, Kretschmann's most recent appointment was at The Chedi Hotel in Muscat, Oman, where he overlooked the pre and post opening of the five star hotel.

Joining General Hotel Management (Singapore) in 1995, Kretschmann was put in charge of the Financial Club in Jakarta, which is an exclusive property of restaurants, bars and meeting rooms where membership is offered to a niche segment including company CEOs, bankers and members of parliament. Thereafter, he moved to The Chedi Hotel, Phuket, Thailand, which is a luxury resort with 108 villas. Kretschmann spent five years as general manager.

Kretschmann stated that he had worked in the Asian region for over decade, adding that Sri Lanka is his fourth Asian country. He went on to say that apart from the renovations, he plans to develop the hotel staff by providing them with proper training, which he felt was held back for many years due to the poor performance of the tourism industry in the past.

As for the present situation of the tourism industry, Kretschmann explained that 2003 has so far been a better year than the previous ones where the hotel's performance was concerned. He went on to say that 2004 has the potential of being a good year for the industry provided that there would be political stability in the country. However, with Christmas and new year just round the corner, Trans Asia Hotel has once again organised several events for its customers.

Kretschmann stated that the hotel has organised approximately seven new year's eve functions, adding that the hotel is also booked to full capacity during peak days. He also stated that, performance wise, this December is expected to be the best since the hotel's inception.

Christmas activities include a Christmas eve buffet and a Christmas lunch. The Christmas eve dinner will feature a sumptious feast of traditional festive dishes from around the world. The buffet spread will include traditional roast turkey with all the trimmings to crispy cool salads and a fine selection of desserts at the Summerfields Cafe. The Christmas day lunch would give your taste buds a rare treat as the Summerfields Cafe would present customers with a spread of seasonal delicacies. As for the new year's eve functions, the hotel has planned special events at the pool terrace, Summerfields Cafe, The Library, Beira Lounge/Lobby and at Royal Thai, La Terrace and Long Feng.

An open air dance by the poolside with Entertainment Unlimited DJs will keep you on your heels at the pool terrace while Summerfields Cafe will offer a grand dinner with two sittings on 31st night. DJs Stephen and Dallas at The Library will herald in the new year at Colombo's most exclusive venue. You could also dance to the grooves of Rex Fernando and Voyages at the Beira Lounge/Lobby. A unique dining experience bringing together food from both the east and the west would create a carnival of cuisine at Royal Thai, La Terrasse and Long Feng.

For this festive season, the hotel also has on offer a Christmas/holiday package valid from December 22 to 30 for Sri Lankan and expatriates. Under this package, a customer could receive a minimum two nights stay at Rs. 8,000, single or double (US$ 40.80+ per night). The package includes complimentary buffet breakfast, complimentary voucher for Rs. 500 at Goodies, 20% discount at Summerfields Cafe, 20% discount on beverages, 25% discount at the Au Veda wellness center and a 10% discount at the Nail Spa. Children below the age of 12 sharing parents' rooms will receive free breakfast and an extra bed would cost Rs. 750.

It's all happening at Crescat this season

By Ranee Mohamed

General Manager  Harpo Gooneratne of the Boulevard at Crescat City has always ensured that there is a festive spirit in there, but come Christmas time this natural entertainer and spinner of happiness has used Santa's candy wand on those who shop at the Boulevard.

 Go to the Boulevard today and shop for Rs.2,500 or more and be a winner of their daily draws that will give you Rs.10,000 in cash, weekend packages at Keells resort hotels, and Rs.5,000 credit free from American Express credit cards. The best offer is good enough to scream - an offer of free ice cream for one year - a cooling and refreshing reminder of the season that was, all throughout the year.

Seated in his impressive office, Gooneratne himself is cool. Unruffled by the Christmas rush at the Boulevard, Gooneratne speaks of the special draws and the special Christmas at the Boulevard. He shows the Christmas tree, lit up, reaching out to the skies and says "We are celebrating a really big Christmas here at the Crescat City. It is bigger, better and brighter than ever before," says this DJ who made people happy for over two decades.

Being just the kind of person to be in charge of this happy house, Gooneratne seems to be psychologically geared to complement the beauty of this very happening place called the Boulevard, with his background in the world of entertainment.

With the Delicatessen offering seasonal goodies at a happy price, there are cable TV connections, airtickets and a diamond pendant on offer. The cable TV connections are from Comet Cable and the mobile phones with connections are from Dialog GSM. "There are gift vouchers for Rs.7,500 from Hameedias and gift packs from Exclusive Lines and Adidas," said Gooneratne

Harpo Gooneratne also went on to reveal the many seasonal secrets of the Boulevard. "There are special draws of Nokia mobile phones from Nokia and Softlogic, and diamond pendants from Colombo Jewellery Stores and for shopping for Rs.500 you can win Rs.5,000 in cash daily," he said.

From December 10 the Kids Corner came alive and here there are just more than toys - there is free ice cream, free chocolate, free face painting, pop corn, candy floss, magic shows, the P. G. Martin Wonderworld with bouncer, and as if this is not enough Santa will be present at the Boulevard, not surprising though, with the kind of gifts they are offering.

Today will also feature a magic show from 1 p.m. onwards and a jazz afternoon with Three Coins There will also be a best dressed Santa competition for kids from 4 p.m to 6 p.m. and a live band with Three Coins from 7 p.m. onwards and carols with Adlib from 7 p.m. to 8.30 p.m.

On Monday 22nd will be carols with the Strings by the Sea Orchestra from 1 p.m onwards followed by a live band with Three Coins from 7 p.m. onwards with carols with Adlib from 7.p.m. to 8.30 p.m. This will continue on Tuesday too and there will be carols on Wednesday too.

 So, if you want to get into the true festive spirit and feel the glory of the season, get into the Boulevard and discover that you are streets ahead in your festive mood.

British School to build state-of the-art school complex

The foundation stone was laid recently for the construction of a state-of-the-art, purpose built school campus for the British School in Colombo.

The foundation stone was laid by Chairman of the School, Mohamed Uma Maniku. The ceremony took place amidst a gathering of staff, students, parents and well-wishers of the school.

The project is estimated to cost Rs. 600 million and is expected to take approximately 14 months to complete. This is a major investment undertaken in the form of private sector participation in the education sector and is fulfilling a long felt need in the country. The two main investors in this project are Mohamed Uma Maniku and Francis Chokatte. Both are financiers of several major projects in Sri Lanka.

In terms of provision of a first class primary and secondary education the contribution that the school is making towards the improvement of the education sector is not only valuable but a much needed one at a time when primary and secondary education of the quality provided by the British School is rare.

The new school complex would comprise of large airy classrooms for students to learn in comfort, adequate space for departments, large well stocked libraries for both junior and senior school children, six fully equipped science laboratories with inbuilt safety precautions, a well equipped performing arts department with sound proof dance and music studios with full length mirrors for dance and drama practice, an auditorium equipped with latest sound and lighting facilities for public performances by the students, spacious canteen facilities providing a nutritious and balanced diet with on site cooking facilities, a 25 metre swimming pool which can be used for inter school swimming meets and with a facility for scuba diving practice and capsizing practice, a second shallow pool for the younger students, a 100 metre running track, basketball courts, cricket practice nets at the ground level, adequate play space for all students, roof top hard surface covered tennis courts for playing tennis year round, and an indoor sports department, gymnasium and more.

The site is in an area which is one of the most convenient and uncongested in Colombo and is easily accessible from anywhere in Colombo and the suburbs.

The complex has been designed by J & I Architects of Kochi, India. The local architect for the project is Rukshan Widyalankara Pvt Ltd., and the Project Managers are Messrs. Perigon Lanka (Pvt) Ltd.

Hot air ballooning in the Cultural Triangle

Sri Lanka is blessed with an abundance of archaeological sites, landscapes, nature and history. However small the land may be, one might find it a tedious task to visit these important places within a short span of time. Save no trouble, it is time for something new, something adventurous, and something that Sri Lanka has never experienced before. Hot air ballooning in the Cultural Triangle, for the first time in Sri Lanka.

Hot air ballooning is unique from all other forms of flight, in that there is little sensation of motion or perception of height - 'sensational tranquility'. many describe it as "surreal, peaceful and quiet." This new concept was introduced to the country by Adventure Centre Asia (ACA), driven by an experienced team specialised in adventure tourism. This activity is associated with the Kandalama Hotel. Those who wish to experience the beauty and grandeur of the country from a balloon can do so from the scenic environs of Kandalama. The panoramic view of the Kandalama Hotel and its surroundings is breathtaking.

Floating at heights of 500 to 2000 feet on average, passengers will be in awe of the lofty spectacle while they effortlessly drift over the treetops, wildlife, the Kandalama tank, local urban homesteads and the Sri Lankan countryside. An experienced pilot then guides the balloon closer to the renowned rock fortress of Sigiriya - called the eighth wonder of the world, today a UNESCO World Heritage Site.

A hot air balloon flight is made up of a total travel experience of four hours duration starting with the preparation and inflation of the balloon, flight briefing, takeoff, flight, landing and retrieval, and return to base for breakfast. On the morning of the flight passengers will receive a wake up call one hour prior to the meeting time. This call is put through only if the weather is suitable for a flight. The balloon can hold upto 16 people. To keep remembering this memorable experience, passengers will receive an ACA balloon flight certificate with an in-flight photo from the balloon canopy.

 Zippo - a way of life

One night in 1933 above a garage in Bradford, Pennsylvania, George Blaisdell pushed the first case of what would be the first Zippo lighter. That was more than 400 million Zippo lighters ago. Blaisdell would be amazed to know that today there are thousands of Zippo lighter collectors all over the world, communicating through newsletters and faxes, e-mail and web pages, as well as getting together at shows, conventions, and the biennial Zippo-Case International Swap Meet.

Collecting Zippo lighters has become a hobby, and for some, it has even become a business.

Every Zippo lighter tells a story and some of those stories - and some of the Zippo lighters - are priceless. Collecting Zippo lighters is truly an enlightening experience. Yes, there are Zippo lighters that have brought quite a bit of money to the finder. But let this also be a word of caution. Collecting Zippo lighters is about, fun, about history, about people.

Trade Winds, the sole authorised importer (direct from the Zippo factory in Bradford, USA) and distributor, says that fluid and flints are available in leading supermarkets and that the Zippo guarantee (function only and not the finish) applies only to genuine Zippo lighters regardless of age, condition, where purchased and does not require a guarantee card.

Zippo has played vital roles in such films as Die Hard, Black Rain, Indiana Jones, The Last Crusade, and Bridge Over River Kwai. In Terminator 2, Arnold Schwarzenegger terminated the T2000 with a "Hasta la vista baby" and a Zippo lighter, and in X-Men 2, one of the X-Men's newest cohorts, Pyro, whose mutation allows him to manipulate fire, uses a custome-designed Zippo lighter as his flame source of choice. Frank Sinatra was buried with his favourite things, among them a Zippo lighter.

Several books have been published about Zippo lighters and lighter collecting. For a current list, and the latest information about Zippo lighter collecting, visit zippoclick.com or www.zippo.com

Premium herbal personal care range launched in Sri Lanka

The Himalaya Drug Company, global leaders in herbal healthcare since 1930, announced the launch of its premium personal care range, Himalaya Herbals in Sri Lanka recently.

Himalaya Herbals is being introduced in Sri Lanka by Herbotech (Pvt.) Ltd., which has been marketing Himalaya's pharmaceutical range in the island for over seven years.

Himalaya Herbals, the umbrella brand name for a range of premium herbal personal care products, competes with international brands in India, USA, South America, Europe, Middle East, Africa and Asia Pacific. 

The Himalaya Drug Company has used its wealth of knowledge and research on natural herbal remedies, to formulate a range of personal care products - Himalaya Herbals - which cater to daily personal and health care needs. Himalaya Herbals offers the goodness of natural remedies for daily use - 100% herbal actives, with no side effects. Himalaya Herbals will be made available through leading supermarkets and salons.

The launch also coincided with the opening of the Himalaya Beauty Clinic, which will offer herbal beauty treatment.

Equipped with the latest equipment and offering a wide range of beauty treatment, experienced and qualified beauticians will attend to the personal care needs of consumers. The clinic will also market the entire Himalaya Herbals range.

Speaking at the launch,  President and CEO, Himalaya Drug Company, Ravi Prasad said, "The Himalaya brand name enjoys a strong equity both with doctors and consumers across the world, built up since 1930 with the help of safe and efficacious products. In our association with Herbotech, we see a synergy of vision to provide the best in herbal wellness to the consumers in Sri Lanka."

Enumerating,  Herbotech Head Shirantha Peries said, "Himalaya as a company has always been committed to providing world-class products to meet the needs and daily requirements of consumers.  The recent initiative is in sync with our expansion plans and we will continue to direct our efforts to bring 100% herbal premium products to the people of Sri Lanka."

Since its inception in 1930, the Himalaya Drug Company has pioneered the use of modern science to rediscover and validate ayurveda's secrets. Today Himalaya products serve the health and personal care needs of consumers in over 50 countries.

All Himalaya formulations are subject to primary research of up to 10 years before the final product reaches the consumer.

It is this emphasis on research and stringent quality standards that has led over 200, 000 doctors worldwide to endorse Himalaya products

SLS certification for AquaFresh bottled water

Access Natural Water (Pvt) Ltd. (brand name AquaFresh), an organisation committed to supplying quality drinking water in five gallon bottles, has been awarded Sri Lanka Standards certification for bottled drinking water (SLS 894). This certification is the first to be awarded to an organisation manufacturing five gallon bottles in Sri Lanka.

With the market being flooded with uncertified and poor quality bottled water, the government and the respective bodies such as the Health Ministry and the Sri Lanka Standards Institute have numerous problems in dealing with unscrupulous manufacturers.

Towards this end AquaFresh has been making the general public aware through their clientele and the media that they should not be misguided by cheep quality products and products with international names that do not carry any Sri Lankan standards certification and are only labels and marketing tactics.

AquaFresh states that their main strategy is "a quality product at a reasonable price" and not "a poor quality product at a cheap price." This strategy has paid off and the company enjoys over 25% market share within a short period of just over two years in operation and caters to most of the major corporates, hotels and restaurants, diplomatic missions, hospitals, and households that are keen on quality.

The organisation further says that product development planning is underway and are planning expansion to different types of packaging.