BUSINESS

Industrialists raise alarm over JVP instigation

Industrialists are voicing concern over JVP propaganda units entering the industries sector, promising workers a better deal if the newly formed alliance - United People's Freedom Alliance (UPFA) - is voted into power on April 2.

Questions have been raised as to how the JVP could promise such a deal given its past track record, which has resulted in the closure of many industries as well as creating losses amounting to millions of rupees. These same reasons prompted many foreign investors to pull out from local investments as well.

As a result of JVP instigated labour problems, 65-70 companies have been forced to close down in the past few years leaving thousands unemployed.

A large-scale local manufacturer explained that the JVP has adopted a new strategy to visit well-established industrial and related organisations, which are engaged in relatively peaceful industrial operations.

Their promise is, that if voted into power, the mixed economic policy that would be adopted by the regime would have direct control over the activities of organisations, thereby benefiting the working force directly. This, according to the manufacturer, would be considered as a satisfactory point by the workers.

The JVP goes on to highlight the luxury lives led by the top managements and the economic disparities of the staff in a bid to create friction among the workers and the management.

An industrialist who wished to remain anonymous doubted if the JVP genuinely has the best interest of the worker at heart as they make it out to be. According to a senior official of Bata, back in the year 2000, when the Bata factory was threatened to be set on fire by certain individuals protesting on the roof top, these same people did not hesitate to communicate to their counterparts on the roof top, not to be open for negotiations and in the event of being forced to compromise, to go ahead and set the factory on fire and thereafter to commit suicide.

The official stressed that it was only after the problem creating workers were terminated, that Bata began to realise its full potential and made a 20% to 30% increase in sales. Prior to this, sales had been low due to the poor performance of the sales workers.

The management of Bata expressed sadness that a situation of this nature had to take place, stating that although more than 140 workers were terminated, only around 25 of them, who were hard core members of the JVP, were really responsible for the damage caused. As a result of this conflict, Bata at the time lost around 10% to 20% of their business.

Another instance is where the Mortein production line, an offshoot of the main line productions of Reckitt Benckiser, had to be closed down due to problems caused by JVP infiltration into the workers union. The factory operations terminated in mid 2002 and nearly 80 employees lost employment as a result. Other multinational companies operating in the country have also endured JVP trade union action, leading to strained managment-worker relations.

This type of situation is particularly not healthy for the country at this juncture, because investors have the choice of employing much cheaper labour in other South Asian countries, such as China, Indonesia and Vietnam with relatively less labour unrest and instability.

With the country's economy gaining momentum, the question now is whether the JVP, which has caused the closure/losses in many industries in the past, will actually give a better deal to the workers if voted into power come April 2.

First on-line lottery game begins tomorrow 

On-line National Lotteries (Pvt.) Ltd. (ONL), which is fully owned by the National Lotteries Board will launch 'Rapido', the first ever on-line lottery game in Sri Lanka, tomorrow at selected outlets in Colombo.

Draws will commence from 11:00 a.m. and will cease at 11:00 p.m., with a draw every hour, seven days a week. Tickets will be sold from 9:00 a.m. onwards. To play this game you can use your coupon to select your own lucky numbers. Alternatively, you can ask for a 'Quick Pick' and the terminal will pick the numbers for you without having to fill in the coupon. 20 numbers out of 80 will be drawn per game every hour. To win, a player needs to match the numbers on his/her receipt with the numbers drawn. These numbers will be displayed at every agent's location. Instant prizes will also be awarded and will be randomly drawn. In addition to this, a player could also be the lucky winner of Rs. 600,000. Within a short period ONL will expand its dealer network enabling it to create more winners. This will be possible, as ONL will have more terminals available at strategic locations in and around Colombo, providing the general public with access to the game. Subsequently terminals will be installed outstation as well.

ONL is managed by a well-reputed international organisation, whose vast experience in the lottery industry will ensure that the highest standards and transparency is maintained.

Proceeds from the lottery will be directed to the Parliamentary Scholarship Fund.

HNB Chief Cooray passes away

Distinguished business head, Chrisantha Cooray passed away at the age of 60, after a brief illness, last Thursday morning.

Cooray was the chairman, Browns Group of Companies and Hatton National Bank. He was associated with the bank since its inception and took over as its chairman in 1989. He recorded over 30 years of experience in trade, commerce, industry and finance.

He was a product of St. Joseph's College and then was also a student of the Aquinas University College. He then continued his studies in accountancy in UK. He was a fellow member of the Chartered Institute of Management Accountants (CIMA) and a member of the British Institute of Management. He is survived by his wife and three children.

Malaysian government eyes Hambantota

"The Malaysian government has expressed interest in the impending development projects in the Hambantota District and has decided to deploy 20 potential investors to appraise investment opportunities," said Director General, Hambantota District Chamber of Commerce (HDCC), Azmi Thassim. Malaysia has expressed its desire to partake in the large development projects, such as the harbour, oil refinery and airport.

Earlier, Malaysian diplomats had approached HDCC to request the Chamber to initiate a forum to educate them on the investment potential in the area. Accordingly HDCC will host such a forum scheduled to be held on March 26 at the Peacock Hotel in Hambantota. Here, the Chamber will showcase a presentation on the planned large scale development projects. The proposed oil refinery project is estimated at US$ 1.8 billion, while a 700 MW power plant is also on the cards, while the investment on the proposed airport, for cargo and aircraft repair, would be US$ 100 million. A Free Trade Zone (FTZ) and a hotel city have been slated in as future Hambantota development projects.

The myth that is the Mixed Economy 

By Dinesh Weerakkody 

The advantage of professing market capitalism or for that matter leftist ideologies, is that they are clear as black and white. Black is dramatic while white is stark. They draw immediate attention to themselves. It is also a fact that both models of economic development steadfastly and persistently try to impose their solutions on all of our problems.

The question then arises what is a mixed economy? Unbridled capitalism without social responsibility, unencumbered in the pursuance of profit at all costs, unconcerned with the misery of the poor tends to construct unjust structures in society. It even gives the picture of victimisation of the common man.

On the other hand the Karl Marx doctrine is an ideology, which promotes community ownership of the tools of production and questions the right of private ownership of land. In the final analysis in a market economy the nation is best served when the government leaves the production of goods and services which meet market demand, in the hands of the private enterprise. Why? Because the entrepreneurs and the capitalists have a right to the profits that their enterprises generate. In this scenario the more innovative the initiative the larger are the resources required, more hazards and risk, the higher are the profits.

However, the right to private property is not an absolute right. It should contain the responsibility to use private property not only to enhance wealth but also to meet the social obligations of the community.

Middle Path

What then of the middle path? As one writer in a recent weekend column explained a mixed economic model calls for social justice, fairness, equity and an avoidance of extremes of economic policy.

In this sense even in the most advanced capitalist countries such as the USA, regulatory regimes control agriculture, education, defense and the police functions.

On the other hand even a communist state such as China, collectivisation is not applied to all economic activities. There are some degrees of privatised enterprises and industries in operation. This largely has been responsible for the economic wealth created in key cities such as Shanghai and similar industrial areas in China. The question which arises foremost in one's mind, when the UPFA claims that its policies are for the establishment of a mixed economy are- whether plantations and estates be nationalised? Will the small farm agriculturist have a place to own private property? Will private health and education be discontinued? Will the state take over key industries and manage them? How would they manage the Export Processing Zones? Are they going to adopt two systems under a single regime of control?

Foreign Direct Investment (FDI)

One for the foreign investor the other managed by the state. Is it practical to manage such a mixed strategy efficiently? Where is the level playing field, which will be available for any form of enterprise? If you take our recent history, direct foreign investment was US$ 171 million in year 2001 as compared to US$ 230 million in 2002. An almost US$ 60 million jump or 33% increase in FDI. GDP growth was negative in 2001. The decline was minus 1.5% to a positive growth of 4.0% in 2002 and 5.5% in 2003. How was this possible? What were the reasons? Simply, Free Market Capitalism motivates not only the mega entrepreneur, but also the small holder, the small and medium enterprises in the country, particularly the growth in the apparel industry and increase in investment in the leisure and the tourist industry. This approach to development leverages powerful forces to increase capital efficiency. However, there is a short term down side to this success story. That the working class low income groups invariably has to make sacrifices and be happy with the pittance coming their way until the wealth that accumulates trickles down to them.

Poverty

At present, the development economists advocate the alleviation of poverty and aim for total human development. Public enterprises are largely privatised. While crucial utilities such as power, water and in some instances transport are managed by the state. The model also advocates technological upgrading and the training of human resources. It sees the private sector as an engine of growth.

Is this the Mixed Economic Model which the UPFA is talking about? Or is it the out dated and dysfunctional models, which was followed by the Government that was in power in 1970 to 77, that is to be implemented? If it is the latter, then the world trading arrangements will not permit such a radical change to the past.

The frame work of policies of the international and multilateral agencies as well as the trading blocs such as ASEAN, NAFTA, the Asia Pacific as well as SAARC will compel that they conform to an economic model which is far from economic isolation. In actual fact more than 50% of the national debt is foreign. 70% of the GDP and capital expenditure are from foreign funding. This distortion is due to inadequate domestic savings, much worse low efficiency of capital, low productivity particularly in the state sector and continued deficit financing by the Government.

Cuba

We cannot be another Cuba or North Korea in the current scenario. Incidentally these countries labour under a regime which ensures that large sections of society continue to be impoverished. Where then is poverty alleviation?

When business confidence is denied due to instability of the Government and hazy thinking of the desired economic model for development, then the out come is low efficiency of capital, poor investor confidence and continued poverty. The UNF and the PA have both tread the path to development very clearly. The 'Regaining Sri Lanka' initiative promoted by the Prime Minister aims to bridge the immediate weakness of overcoming deficit financing, rapid employment generation, increasing productivity, mainly in agriculture, tourism, manufacturing and service sectors. It also focuses on major infrastructure improvement for increasing the linkage between a predominantly rural population and the major economic and agricultural centres in our country. These strategies in many ways can be described as a mixed economic model. Even the post 1977 economic model could be described as a mixed economy.

State policies

Combining liberal state policies with control of imports commodities which are locally produced or nationalisation of plantation agriculture does not support a solution to the compelling problems faced by the country as outlined above. In such a scenario the productive capacity of the economy is reduced, continued losses in public enterprises, due to the inability to match the demanding quality standards, investment in technology and dynamic marketing strategies required in the international market place, which will force a heavy burden on an unsuspecting population. The question uppermost in the minds of the voter now is whether Sri Lanka can survive in a vacuum and come out of the current state of indebtedness and low per capita income through a system of state ownership of property and enterprise and a selective regime of controls while attempting to balance the trade pattern in the country's favour. As one writer did observe, "half baked muddled economics and capricious economic intervention" can destroy altogether even the temporary platform on which we are now standing.

NSB earns record Rs. 4.187 bn pre-tax profit 

Year 2003 has been a landmark year for the National Savings Bank (NSB). The year brought tangible evidence of the bank's capacity to deliver demonstrably better results in a more accommodating environment thereby achieving an unprecedented pre tax profit of Rs. 4.187 billion, an impressive 73 % increase over the previous year, and Rs. 26.6 billion in mobilization during the year.

Interest income increased from Rs 16.8 billion in 2002 to Rs 18.8 billion in 2003. The NSB Fund Management Co. Ltd., a wholly owned subsidiary of the Bank, made a contribution of Rs. 41 million towards the group profit of Rs. 4.18 billion.

According to the Chairman, NSB, D.M. Swaminathan, "the prudent investment decisions taken by the Bank was the main reason for our outstanding performance that enabled us to gain this profit."

The NSB earned Rs. 475 million in capital gains from share trading and derived a dividend income of Rs. 72 million, generating a total of Rs. 547 million. This is the highest profit ever earned from the Bank's equity portfolio. In addition, profits from the sale of Treasury bonds amounted to Rs. 69 million. Investment in government paper increased from Rs. 113 billion as at year-end in 2002 to Rs. 138 billion as at year-end in 2003. Housing loan portfolio increased by Rs. 1.2 billion during the year, further expanding this sector. Total assets of the Bank rose by 20 % during 2003 to Rs. 177.4 billion.

Despite the continued trend of low interest rates on deposits, the Bank was able to mobilize Rs. 26.6 billion, a remarkable 69% increase over the mobilization of 2002. The total deposit base increased from Rs. 134.5 billion at the beginning of 2003, to Rs. 161.1 billion by the end of 2003. The Postal Agency network stands at 4042 outlets island wide and the most remarkable feature in this sector is that funds mobilized through savings accounts, especially in the rural sector, have exceeded targets for the year 2003.

To add to the success for the year, the National Savings Bank achieved the coveted AAA rating by the internationally recognized Fitch Ratings.

The NSB introduced value additions to all savings account holders by offering life Insurance Cover for account holders. In addition to the existing products and services, a deposit account specifically designed for senior citizens was introduced in May 2003. This Gaurawa account offers higher interest rate than published deposit rate and during the year 2003, the Bank mobilized Rs. 7.5 billion towards this account. At present, the Bank pays two percent above the published deposit rate for "Gaurawa" account holders. The Bank also introduced the 'Alankara Home Loan', which allows a customer additional loans to enhance his house into a home.

In a bid to better serve the core customer base, eight new NSB branches and one savings shop were opened in 2003. The total number of branches now stands at 112 with branch credit facilities that include personal loans, pawning and housing loans extended to cover around 95 branches in all. The Head Office of the NSB is undergoing a face lift, in order to provide a better service to its customers, at a cost of around Rs. 75 million.

The Bank is in the process of improving and upgrading its entire banking services with high-tech facilities. Towards this, the Bank has embarked on the implementation of the proposed three-year IT strategic plan starting from the year 2003, which includes networking of branches, connection of ATM network, and the introduction of core banking solutions in a bid to improve the benefits to its customers.

Singer posts highest revenue growth  

Singer (Sri Lanka) Ltd. made the year 2003 one of outstanding achievement, earning its highest ever revenue growth in its 127 year history. The Company recorded a 23% increase in net revenue, from Rs. 5.1 billion in 2002 to Rs. 6.2 billion in 2003. Gross profit reached Rs. 2,046 million as against Rs. 1,671 million in the previous year, an increase of 22%, and net profit grew by 79% reaching Rs. 378 million compared with Rs. 211 million for 2002.

Commenting on the company's success in his annual review, Chairman, Singer (Sri Lanka), Hemaka Amarasuriya says that it was a time of strategic change with a shift in pricing policy, to price in line with the market rather than at a premium, as market leaders often want to do. He attributes the success to the availability of products, easy access to markets, choice of models and brands, in-house consumer finance, outstanding customer care and sales professionalism.

Singer's business was driven in 2003 by its Consumer Electronics segment which grew by 44% over last year. Televisions, refrigerators and sewing machines contributed to 85% of the Company's total turnover.

Singer's furniture segment made great strides during the year with the introduction of its own dedicated line of furniture stores called "Modern Homes". An immediate improvement in performance with good prospects for the future will make furniture Singer's third core business segment together with home appliances and financial services.

Another 'first' for Singer in 2003 was the obtaining of ISO 9001-2000 accreditation for After Sales Service - the first company in appliances to gain such recognition and one of the first companies to be thus rewarded for after sales service.

In terms of infrastructure, Singer signed up for a sophisticated new IT system with its business partner IFS. The new system will intranet sales and distribution into one domain. Sales will soon be on real time, enabling the management to better monitor and respond to market trends.

The Company also commissioned a 60,000 sq.ft distribution centre close to its Piliyandala factories which will considerably speed up getting merchandise to the field, whilst at the same time bringing all warehousing under one roof.

Meanwhile, in terms of strategy, Singer took a singularly important step by repositioning its brand to encompass its development over the years, that of an international brand that whilst remaining synonymous with the sewing machine, has moved into diverse product lines moving the company even closer to people and homes across the world. 'Singer- at home worldwide' has been chosen as the company's new theme globally. This realignment of the Singer brand followed research, both qualitative and quantitative, conducted in seven retail markets including Sri Lanka and five 'sewing' markets.

With the consumer durables market in Sri Lanka rebounding strongly after several years of sluggishness, the future holds great promise for Singer as consumer confidence returns.

SLPA station shows impressive growth in business 

Sri Lanka Ports Authority's Container Freight Station in Peliyagoda has shown steady growth in its business. The number of Less than Container Load (LCL) containers de-stuffed at the station had risen by 76% from 4,608 TEUs in 2000 to 8,121 TEUs in 2003. In 2001 and 2002 the number of TEUs handled were 6,690 and 6,805 respectively.

The SLPA purchased the Peliyagoda warehouse complex at a cost of Rs. 452 million from Urban Development Authority (UDA) in 1999 and modified the yard area and the warehouse in order to use it as a LCL Container Freight Station. It was commissioned in February 2000 with main operations being de-stuffing LCL containers, provide warehouse space and delivery to the respective consignees. All operational activities and delivery of cargo including billing and recovery of charges are done through a computer system, which had been installed specially for this warehouse complex.

LCL and Full container load (FCL) consignments of personnel effects cleared have also increased at this station. LCL consignments growth has increased from 322 in 2001 to 3,020 in 2003 while FCL containers handled has increased from 140 in 2001 to 658 in 2003. The average daily deliveries at the station is around 200 and during the peak seasons from 200 to 300.

Extended tax holiday for Noritake 

Noritake Lanka Porcelain (Pvt) Limited (NLPL), winner of the export award in the industry category for the second time for the creditable performance during 2002 has received a further seven year tax holiday from the Board of Investment (BOI) of Sri Lanka on successful achievement of the specified level of exports and the substantial increase of production capacity and orders within the first five years of signing the agreement with the BOI in 1999.

This includes an additional two years tax holiday for investing over Rs. 50 million for expansions and new projects during the last year.

Director, NLPL, Nimal Perera said that the company has achieved phenomenal success in every sphere of activity during last five years. In addition to beauty and quality, he added, Noritake is internationally known for is extensive selections of tableware patterns and demonstrates the level of commitment in satisfying the demand of customers. The latest additions to the prestigious range of products have already captivated a wide segment of the world market.

Noritake has taken meaningful steps to introduce new management techniques to raise the morale of workers and thereby boost the production to achieve the targeted levels. Prominent amongst these are the introduction of the much acclaimed 5 S House Keeping Concept and TPM etc. The high pressure casting machine, installed at a cost of over Rs. 10 million, has helped to produce items in any given shape, as per customer's requirement.

New GRHK fast firing kiln has reduced the firing cycle from three days to five hours and improved the quality of products.

Auto flatware making machine and auto cup making machine have immensely attributed to the improvement of quality, quantity and productivity. NLPL was awarded the ISO 9001:2000 certification, which is the latest version coming under ISO programme, in 2003.

Perera added that the company's highest turnover, Rs. 1 billion, was recorded in 2002 with a profit increase when compared with previous years.

Adding further, Perera stated that NLPL then known as Lanka Porcelain (Pvt) Limited inaugurated operations at Matale in October 1972 under the patronage of the then Prime Minister of Sri Lanka, Sirimavo Bandaranaike, as the first joint venture between Ceylon Ceramic Corporation and Noritake Company Ltd., Japan. The first shipment of the company's fine porcelain was exported on October 5, 1973. NLPL thus created a precedent for many successful joint venture companies between Japanese and other foreign companies and their counterparts in Sri Lanka.

Since 1972, the company has enjoyed phenomenal success and brought prosperity to many thousands of its employees in a rural corner of Sri Lanka. The company has expanded in four stages in the last 30 years and presently employs 1,200 personnel and exports approximately 9,000 Fine China Dinner Sets of 91 pieces to the global market per month, earning a large volume of foreign exchange to the country.

Noritake has formulated its own vision to fall in line with their parent company's vision which is aptly termed 'Total Productive Maintenance (TPM)'. The company has envisaged to increase productivity by at least 5% under this vision and has further integrated this vision with the policy formation so that every employee is responsible in making some contribution towards realising the targeted level of productivity. TPM activities were launched during 2002 with an aim of pursuing the best quality and the most efficient production system. At present, six sub committees involved in and assist the TPM main committee activities.

Deputy Chairman, NLPL, H. Hirozawa, expressing his views to the paper, stressed that creditable export performance showed by the company in the past several years is the major reason for the successful performance of NLPL. In spite of the severe competition in the world market from low priced substitutes as well as competitors, the quality of Noritake products, timely delivery and other services have provided the pathway to continue with a sustainable growth as a leading porcelain tableware producer. "We are seeking avenues of automating the factory with modern technology and methodology. We are eager to invest in large projects which will improve our product quality and productivity. The estimated cost for the intended projects would be over Rs. 200 million," he added.

Hirozawa further stated, "We are confident the benefits of the tax holiday granted by BOI will bring significant returns to our Company."

A glimpse into the future 

Dialog GSM's Future Centre, Sri Lanka's first mobile discovery centre, opened its doors to the public recently. Designed to international standards, the Future Centre sets Duplication Road alight with its futuristic neon glow, characteristic of the radiance of the high tech mobile showrooms of Singapore and Hong Kong. Located at Deal Place (facing Duplication Rd) Colombo 3, the Future Centre is a one-stop mobile experience showcasing the latest in mobile technology.

The Future Centre will showcase the most advanced GSM handsets and gadgetry available globally, some of which are prelaunch models, allowing Sri Lankan consumers an advance view of what global developments in mobile technology will offer in the near future. The Future Centre is hence designed to offer a complete mobile user experience. Which would be unrivalled even in the developed work.

Speaking at the opening of the Future Centre, Chief Executive Officer, Dialog GSM, Dr. Hans Wijayasuriya explained the unique features of the Future Centre. "Our Future Centre has been modelled on the best in class in discovery and experience centres worldwide, with a strong focus on our customers who will be free to experience the latest gadgets, devices and services at their leisure and convenience. Our promise is to have the very latest available at the Future Centre We have provided for a wide range of interests, ranging from the latest handsets, through mobile infotainment such as downloads and multimedia applications and games through to the very latest in high speed mobile and wireless technology."

The Future Center is designed on a 'Zone' concept, which enables visitors to experience a wide range of hi-tech mobile technologies and services. Technology Zones include EDGE, MMS and WiFi. Download Zones are aimed at the younger generation of consumers with a rich experience at hand in terms of Java game downloads, ring-tones, picture and photo downloads and MMS zone featuring 'picture me' services and MMS printout facilities.

The Future Center experience is topped off with the very latest in multimedia technology with running techno videos on high-resolution plasma screens creating a truly  futuristic atmosphere for customers venturing into the Future of Mobile Communications.

E-mail made easy by BellTalk 

BellTalk is a new, innovative service made available by Lanka Bell for the first time in Sri Lanka. It allows Lanka Bell's BellNet users to retrieve, listen to and reply to their e-mails from any telephone, anywhere in the world. Subscribers to the BellTalk service can listen to the e-mails received in their BellNet e-mail boxes, and send verbal replies. The received e-mails can also be read conventionally on a computer screen.

To listen to received e-mails, a user can dial 5 373 373 from any fixed line, mobile or pay phone, and enter the personal identification number (PIN). Voice-prompts then guide the user to retrieve e-mails from the server and listen to them. The last received e-mail will be played first. The user can select the e-mails to be listened to by pressing relevant keys on the phone.

The voice-prompts also help the user to make verbal replies, which can be heard by the recipients on their multimedia computer speakers. Such voice replies will be sent as attachments in the form of wave files, which can be heard by the recipient simply by double-clicking them.

"BellTalk is ideal for busy people who are often on the move," says Assistant Product Manager, Lanka Bell, Ramesh Sithambaram. "It enables them to check their e-mails from anywhere without requiring access to a computer. They can simply call in from any phone, anywhere in the world. And they can send replies immediately from the same phone to anyone who has a multimedia computer with speakers," he added.

BellTalk is designed by Atlantis One Technologies, who also designed the BellNet portal which provides Internet and e-mail facilities to Lanka Bell customers. As Phase I of the BellTalk project implementation, Lanka Bell is providing the service to 200 customers of BellNet, free of charge until 31st March 2004. Thereafter they will be charged a monthly fee of Rs. 50 for this service. Lanka Bell plans to extend the BellTalk service progressively to all the users of BellNet.

Lanka Bell is a BOI approved company owned by several global giants including Transasia Telecom (Singapore), Miel Investments (holding company of Transmarco, Singapore), AIDEC (Japan) and Nortel Networks (North America).

CIMA geared to face global challenges 

In keeping with the rapid developments in business, the Chartered Institute of Management Accountants (CIMA) has revised its qualification, making it more attractive to employers and pertinent to students.

Students will be tested on the new syllabus for the first time in May 2005. It will consist of more management content and will place greater emphasis on ethics, corporate governance, human capital and soft skills such as analysis and negotiation. An exam on risk and control strategy has also been added.

The new qualification is geared to keep students ahead of the game and to empower them with leading edge skills, skills that employers are looking for.

The rapidly changing business and regulatory environs and the new International Federation of Accountants (IFAC) International Education Standards, which will come into force on January 1, 2005, have been the driving forces behind the change introduced to the CIMA qualification.

The current structure has been divided into two elements. The Foundation level will be called the Certificate in Business Accounting and is positioned as a separate qualification. Intermediate and Final levels have been renamed Managerial and Strategic levels respectively and together will form the CIMA Professional Chartered Management Accounting qualification.

President, CIMA Sri Lanka Division, Pravir Samarasinghe said, "CIMA is an organization responding to and sensitive to changes and requirements of the business world and that once again it has renewed the qualification, making it more attractive to the employers," addressing the gathering at the launch of the new syllabus, held last Tuesday at the Ceylon Continental Hotel in Colombo.

Head of Product Development and Learning Support, CIMA UK, Paul Weymouth, presented the new qualification during the launch

SriLankan and MTI success story 

Sri Lankan Airlines and MTI Consulting came together to tell their story on how they collectively weathered the storm and are now heading towards clear skies. SriLankan came to the fore in a testimony as to how MTI's 8S process helped in its strategic planning process and engineered a complete turn around in terms of its profit and employee sentiment.

The Chief Executive Officer, SriLankan Airlines, Peter Hill stated that SriLankan was in for turbulent times when double tragedy hit the local airline industry in 2001, first in the form of the terrorist attack where four of its fleet were destroyed and then the aftermath of 9/11, resulting in a loss of Rs. 6.5 billion in that year. It was at this juncture that SriLankan embarked on a strategic planning process with a vision to become the most preferred airline in Asia, whilst also making the airline profitable. These thoughts were expressed at the evening meeting organized by MTI with the view of presenting the SriLankan Airlines experience in strategic planning in conjunction with MTI.

Developed by a cross-functional team of SriLankan Airline Management, based on MTI's 8S process and facilitated by MTI Consulting the process culminated with the launch of SriLankan's new mission, vision and values.

Chief Executive Officer, MTI Consulting, Hilmy Cader made a presentation on MTI's 8S model and how it addressed each of the problem areas encountered by SriLankan. The presentation was followed by an expert panel discussion, where those present were able to put forward their questions and clarify matters pertaining to the presentation. 

Speaking on the profitability achieved by SriLankan, Hill stated that the company has been able to record a revenue-per-employee figure of over Rs. 9 million for the year 2003, which is nearly a threefold increase in comparison to that of 1998/1999 when it was only Rs. 3.6 million. SriLankan has now set its sights on a profit of US$ 48 million for the year 2005.

CBL acquires controlling interest in Cecil Food 

Ceylon Biscuits Limited (CBL), the market leader in the biscuits sector, has recently acquired a 60% stake in Cecil Food (Pvt) Ltd., - a 100% export based company which manufacturers organic and natural fruit juices, cashew nuts and dehydrated produces for a very exclusive export market.

This company has been in existence for over 10 years and has been exporting a unique range of dehydrate fruit and vegetable products to over 20 countries.

The Chairman of Cecil Food, M. P. Wickramasingha, is also the Chairman of the Southern Region Economic Development Commission of BOI. In keeping with his vision of developing agriculture and adding value to farm produce a grass root levels, Cecil Food has ventured into the rural areas and has recently installed a third processing plant in the Monaragala district of Athimale. The farmers sell their products directly to the Semi-processing unit in Monaragala. The fair price and buy back guarantee has simulated cultivators in the district. A similar processing unit for fruits is in the pipeline of expansion in Embilipitiya.

Cecil Food's fully owned subsidiary under the name of Cecil Fruit Canneries (Pvt) Ltd, compliments the product range, manufacturing natural fruit juices for the domestic and export market.

After the amalgamation with Ceylon Biscuits, Cecil Food has already made inroads in the domestic and export market. Ceylon Biscuits has already infused over Rs. 40 million for new equipment and working capital requirements and is looking actively of relocating or starting a new BOI export oriented factory to meet the export orders exceeding US$ 1 million in hand.

Angsana Spa opens at Deer Park 

Award-winning deluxe resort and spa chain Angsana Resorts & Spa has opened a spa in Deer Park Hotel in Polonnaruwa. The hotel, which was recently renovated and opened under the 'Colours of Angsana' banner, is managed by Angsana Resorts & Spa as well.

Designed and built by Architrave Design Pte. Ltd., the architectural arm of Singapore-based parent company Banyan Tree Holdings, the spa complex is adjacent to the hotel and occupies a sprawling 4,350 square meter land area. It comes with four indoor air-conditioned treatment rooms and five outdoor spa pavilions. Angsana Spa at Deer Park Hotel has a complete range of spa equipment and specially created Angsana spa products.

The facilities are designed to offer treatments that have been researched and developed by the Banyan Tree Spa Academy based in Phuket, Thailand, which also trains therapists for Angsana Resorts and Spas. They include "Essence of Angsana" spa packages, the signature Angsana Massage and a combination of traditional, Thai, Indonesian and Hawaiian massages. Traditional Ayurvedic therapy, which is a must for a visitor to Sri Lanka, will also be offered with the fine touch and fitness in the true Angsana style.

The Angsana Spa at Deer Park Hotel will bring to locals and visitors the international standards of a world-renowned spa group. Angsana Spa Double Bay Sydney (Australia) was recently voted number six in the "Overseas Urban Day Spa" category of Conde Nast Traveller's Readers' Spa Awards 2004. Readers voted for spas around the world based on their satisfaction with the ambience, d‚cor, amenities, body and facial treatments, cuisine exercise programmers and service quality. Angsana Spa Double Bay scored 93.33 points out of a possible 100.

NTB chief retires  

Professional engineer, versatile manager and respected banker, Moksevi Prelis, who took over the helm of Nations Trust Bank (NTB) as its CEO in March 2001, retires on March 31. He will be succeeded by Zulfiqar Zavahir, the Bank's Deputy CEO .

After a long and distinguished career as the CEO of DFCC Bank, Prelis joined NTB when the bank was still in its infancy .

In Prelis' own words "the main reason for my acceptance of the request to take the helm of what at the time was a young and relatively small commercial bank was its potential and looking back over the past three years, I am very pleased that my judgement was proved correct."

Prelis' successor, Zulfiqar Zavahir, was appointed Deputy CEO in February 2003 and has been progressively taking on greater responsibility during the last year.

Indian cottons on show 

The Cotton Textiles Export Promotion Council of India in association with the High Commission of India will be organising an exclusive 'Indian Cotton Textile Show 2004' at Lower Crystal Hall Hotel Taj Samudra between March 16 and 18.

Several big Indian companies, Mafatlal Industries, Raymond Ltd, Malwa Industries, Soma Textiles & Industries, K G Denim, JCT Ltd, Ginni International, Nareeka Exports, Gujarat Ambuja Exports, Richa Knits, Bathija International, Amar Embroidery, Singhania Fabexports, Parmeshwari Fabrics, Goyal Associates, Jayshree International etc., will be exhibiting wide ranges of cotton and blended textiles, namely woven fabrics of twill, drill, denim, dobby, satin, poplin, fine cotton shirting, Madras Checks, prints, canvas, furnishing fabric, dress materials for ladies and children, home textiles, knit fabrics, besides cotton yarn of various counts in open end and ring spun.

Considering the emerging opportunities for apparel manufacturers due to the removal of quotas in 2005 ,which is expected to bring back buoyancy of apparel exports from Sri Lanka, and the inherent advantages of Sri Lanka being an efficient conversion center because of several contributing factors ranging from managerial skill, good infrastructure, minimum lead time, modern technology etc the forthcoming show will be an well timed event for the apparel makers here to plan for their rising needs of raw material for future and will provide great opportunity for the local apparel and textile manufacturers to source their raw material requirements, primarily fabric and yarn, from India.

The Indian cotton textile industry has certain unique advantages, which have made India a major player in the world trade of cotton textiles. Availability of wide Indian Cottons - Global Reach varieties of raw cotton along with low cost of production has enabled Indian to emerge as an extremely competitive supplier in cotton dominated products. With operating experience of more than 150 years coupled with vast pool of skilled manpower have positioned Indian as a force to reckon with for supply of products, which combined traditional art and contemporary designs and thus catering to the needs of global apparel and textile industry. Due to the diversified structure and operational flexibility Indian cotton, textile Industry is well equipped to handle the supply of small and big quantity simultaneously.

India is today the second largest supplier of cotton textiles with share of 14% of the world market. India has emerged as one of top ten suppliers of processed and grey fabric, besides being number one and two in cotton yarn and cotton made-ups suppliers respectively in the global market. The impressive export figure of four billion dollar is an indicator of the inherent strength and capability of the industry in terms of quality and consistency.

The geographical proximity and the existence of strong textile industry in India can be an added advantage for the booming Sri lanka apparel industry to look towards India as a first and natural choice for sourcing. The dismantling of trade quotas will bring about significant and wide spread changes in global textile and apparel trading system.

The 'Indian Cotton Textile Show-2004' will be a one stop source for all type of cotton textile requirements of Sri Lankan apparel industry which will facilitate the establishment of strategic linkages between the Indian manufacturers and Sri Lankan converters.  The Show will remain open on March 16, 17 and 18 from to 10 a.m. to 6 p.m. and admission is free.

Coca-cola bottling changes hands

Coca-Cola Sabco (Pty) Ltd (CCS) has reached agreement with The Coca-Cola Company to purchase its company owned bottling operation in Sri Lanka as soon as all regulatory and other consents are received. The acquisition has been approved by the boards of both organisations, and the formal deal closings are expected in the near future.

CCS, a Coca-Cola bottling partner currently based in Southern and East Africa, will take ownership of the bottling operation in Sri Lanka on formal closings. The Coca-Cola Company, through its subsidiaries, will continue to run this plant until the formal closings occur.

Coca-Cola Sabco has been The Coca-Cola Company's bottling partner in Africa for more than 60 years and, during this time, has established itself as a business that can grow successfully in challenging environments. The company currently operates in seven Southern and East African countries, and employs more than 7,000 people. It currently operates 21 bottling plants and aims to fulfil the refreshment needs of the more than 156 million consumers who live in its markets. It is the only Africa-based 'Anchor Bottler' in the global Coca-Cola system.

The organisation has been able to produce sustainable growth in volume, operating profit and Return on Capital Employed over the last five years. These results are significant in that they have been achieved in markets with very low GDP per capita.

Sri Lanka represents a considerable opportunity with a young population and low per capita consumption rates for Carbonated Soft Drinks. The Coca-Cola Company has invested over US$ 5 million in Sri Lanka in the last five years. The operation directly employs over 430 employees.

US$ 150 million FDIs lost - BOI 

By Shehan Moses 

The political instability in the country has resulted in a negative impact on the economy. The latest casualty is where investment in housing construction and road development by a Chinese delegation from Chonging Province, has been cancelled even after requesting the Board of Investment (BOI) of Sri Lanka to send in the documents for pre-qualification. In another incident a group of leading business personalities from CESMA Singapore cancelled their visit due to the political impasse in Sri Lanka.

Speaking to The Sunday Leader, Chairman, BOI, Arjunna Mahendran said, "The country is losing large-scale investment opportunities since the political instability created in the country after the takeover of the ministries. The country has lost over US$ 150 million (approximately Rs. 1,500 million) of foreign investments and over 15,000 job opportunities during this period." Mahendran said that these proposed projects have been indefinitely postponed. He added "Any investor, irrespective of being local or foreign, wants a stable government without political instability. Having four elections over a period of three years is doing the country and the economy no good. Investors will not have an idea under which government to invest their funds and it creates confusion among investors and therefore we need a stable government."

Commerce Minister, Ravi Karunanayake told The Sunday Leader that "The Sri Lankan economy is taking beating due to the regular elections in the country and it is becoming like a cricket match and this is not at all suitable for our country. The people are confused with the regular elections and the political instability in the country after November is causing foreign investors to suspend their investments in Sri Lanka, making large scale job losses and cancelled projects."

Former trade minister under the PA regime, Kingsley Wickramaratne said "When the economy is down the foreign investors get better bargaining opportunities and they invest in the market since the prices would be low and the businessmen would get better opportunities in the market."

Dubai reward for Ceylinco Life personnel 

Ceylinco Life has rewarded a record 104 personnel with a holiday in Dubai to celebrate its milestone achievement of Rs 3.042 billion in premium income in 2003.

The group, comprising senior managers, regional sales managers and sales executives, is believed to be the single largest from the local insurance industry to go overseas.

The three-day tour comprised of sight-seeing, shopping and excursions including an exciting desert safari, a member of the contingent said.

Ceylinco Life ended fiscal year 2003 with premium income growth of 29 % becoming one of the first life insurers to cross Rs 3 billion in premium income. The company's Life Fund stood at Rs 8.783 billion at the year's end.

"Rewarding those whose hard work contributed to our performance motivates the team to continue to strive for sector-leading performances," Director, Ceylinco Life, Thushara Ranasinghe said. Overseas trips to reward performance are now an annual feature at Ceylinco Life. In the past two years the company has sent large contingents to Kuala Lumpur and Bangalore.