Business

Bata back to business but strike continues

By Jamila Najmuddin 

Due to the continuing dispute between the trade unions and the management of the Bata Shoe Company, Bata's parent company in Singapore has shown serious concern over Bata's business operations in Sri Lanka despite the resumption of limited operations.

Managing Director, Bata Shoe Company, Kym Bradley who left for Singapore to discuss the management's current dispute with the parent company told The Sunday Leader on his return, that he had updated the executives of the parent company about the current dispute and informed them local operations were now coming back on track since the police had removed the strikers from the premises of the Ratmalana factory.

"Although the strike continues, it is now outside the factory premises and many of our non-striking workers have been able to gain access to the stocks inside the factory," Bradley said.

Bata's parent company had shown serious concern due to rumours that had escalated in Singapore stating the Ratmalana factory had been burnt instead of the Katubedda warehouse, resulting in thousands of stocks being completely destroyed.

"They were under the impression that the company would have to close its local operations due to all the stocks inside the factory being destroyed," Bradley said.

The Singapore Company had also expressed concern about the safety of the management after a bus carrying many non-striking workers was damaged by the trade unions a few weeks ago.

Due to the strikers now protesting outside the factory, Bata has been able to provide supplies to all its retail outlets in the country and has also been able to dispatch 70,000 shoes to all its outlets.

According to him, the company has also been able to increase local online suppliers, resulting in the company becoming stronger.

"Although we have been able to supply to all our outlets, we are yet to reach a compromise with leaders of the trade unions. The trade unions have to understand we have to terminate the services of 146 workers as the company is overstaffed. We pay our workers a salary ranging from Rs.18,000 to Rs. 20,000, which is a very big amount compared to what other companies pay. It is costly to pay so many workers," Bradley said.

The strike, according to Bradley, was initiated due to the management of Bata reaching a decision to terminate the services of these employees and offer them attractive compensation packages instead.

"Our priority is to save as many jobs as possible but it is sad that the trade union leaders do not understand this and are not accepting our formulas," Bradley said.

Stock market wakes up to reality

By Marianne David 

The Colombo stock market was on a downward spiral last week with both indices depreciating considerably and market capitalisation dropping by a whopping Rs. 15.5 billion.

The All Share Price Index (ASPI), which opened last Monday at 1,441.9 declined by 63.6 points and closed at the end of the week at 1,378.3 points.

The Milanka Price Index (MPI), which opened last week at 2,150.3 recorded a decline of 82.5 points and closed at 2,067.8 points.

The downward trend was mainly attributed to the deteriorating political situation in the country, profit taking by domestic retail investors and the Nawaloka IPO.

An average daily turnover of Rs. 204.2 million was recorded for the five trading days and a total of 39 trades in the beneficial interest of government securities amounting to Rs. 37.2 million took place during the week.

Domestic investors accounted for 84.8% of total turnover and foreign investors were nett buyers with purchases of Rs. 251.1 million and sales of Rs. 57.6 million.

Speaking to The Sunday Leader, Research Manager, HNB Stockbrokers, H. Premaratne said the market has come down week on week and selling has taken place due to some form of uncertainty in the macro position.

According to Premaratne, the rupee depreciation and upward pressure on the interest rates has had a negative impact as well, with the market being up marginally only on Tuesday during the entire week.

"The doubtful situation in Trincomalee and the questionable backdrop also caused panic selling. All these factors have an impact on the macro economy. The indices have been volatile but the overall trend has been on the negative side," he further said.

Meanwhile, a source from a leading stock broking company attributed the drop in the stock market to the rise in oil prices and the stalled peace process.

"Several issues are at hand and the two main issues are the increase in oil prices, which affects company profitability, and the peace process being under strain. Oil prices are moving up globally and further pressure will be brought on the government to revise prices and by the looks of it, the government does not seem to have the peace process under control either. As a result, I don't think the stock market is likely to rise in the near future," the source said.

HSBC introduces 0% interest scheme

HSBC last week announced a 0% interest monthly instalment purchase scheme for HSBC credit cardholders. HSBC was the first to introduce this innovative scheme to Sri Lanka.

With the launch of the 0% scheme, credit cardholders who purchase goods and services such as jewellery, household goods and travel packages from selected outlets could pay in easy monthly instalments at 0% interest.

"With this scheme we are revolutionising the concept of the credit card while providing customers with better purchasing options in a world where costs are constantly soaring," said Manager (Card Centre), HSBC, Sarit Wijeyekoon.

Explaining the scheme and how it works, Wijeyekoon said the scheme was open to all HSBC credit card customers, allowing them to pay the total cost of an item in equal monthly instalments at zero per cent interest.

"We have all heard of easy payment schemes, but usually you have to pay the instalment as well as interest on each instalment. But now, our customers can use the HSBC credit card and choose to pay the showroom price in monthly instalments at zero per cent interest.  Customers can choose between paying for goods and services in either three, six or 12 equal monthly instalments, absolutely interest free."

HSBC credit cardholders would keep earning rewards points for these payments.

Abans, Singer Mega, Vogue and Jetwing Holidays are some of the merchant outlets from which HSBC's credit cardholders can make use of the 0% interest monthly instalment scheme, while more merchants would soon be joining this programme shortly.

Professional Bankers convention

The Association of Professional Bankers (APB) will conduct its 16th anni-

versary convention on August 27

and 28 at the HNB auditorium, HNB Towers.

Finance Minister, Dr. Sarath Amunugama will deliver the inaugural address at the convention while Governor, Central Bank of Pakistan, Dr. Ishart Hussain will deliver the keynote address. Governor, Central Bank of Sri Lanka, Sunil Mendis will also attend the convention

The theme for this year's convention is 'Challenges And Opportunities In A Globalised Financial Market.'

Government determined to proceed with transfer tax

By Mandana Ismail Abeywickrema 

Despite the reservations expressed by the business community over the reintroduction of the 100% transfer tax, the government is determined to go ahead with the legislation.

Finance Minister, Dr. Sarath Amunugama on Wednesday presented to parliament the bill to amend Section 4 of the Finance Act of 1963 to reintroduce the 100% transfer tax on lands with regard to non-citizens.

The tax, which was in place since 1963, was amended in 2002 when non-citizens were exempted from the land transfer tax.

The reintroduction of the 100% transfer tax has been met with much criticism by the business community who state that it could seriously hamper the growth momentum of the country, as it might send negative signals to foreign investors.

The tax is also applied to companies where non-citizens possess more than 25% of the shares. This is expected to affect about 60 blue chip companies with non-citizen stakeholders.

Dr. Amunugama pointed out that after reviewing the issue, the government has decided on the reintroduction of the law to impose the tax on land. Explaining further, Dr. Amunugama stated that the reintroduction was not an attempt to prohibit or ban investors from coming in to the country.

Dr. Amunugama reiterated that there should not be any problem in the implementation of the law as it is only a case of "going back to the old law which was in existence." He went on to say however, that the law will provide for regulations to be introduced.

However, Dr. Amunugama observed that there will be instances when some would be exempted from the law on special projects, which would be determined by the finance minister.

Dr. Amunugama pointed out that in Sri Lanka, non-citizens used to get land for residential purposes more than business, adding that it has resulted in valuable coastal lands being bought over by them.

However, he noted that the government is not against foreign settlers, bringing in the example when N. M. Perera gave exemptions to Dr. Arthur C. Clarke.

Another reason for the reintroduction of the law according to Dr. Amunugama was the fact that a distinction between citizens and non-citizens needed to be made.

"This is not a penal amendment. It is to give a chance to Sri Lankans who want the ability to acquire land at reasonable prices," he said, adding that this would provide everyone with an equal chance.

Dr. Amunugama also said that if the law is reintroduced, locals would also be encouraged to own more shares in companies. "It would be an incentive to give more shares to locals," he said.

However, Dr. Amunugama reiterated that the government hopes to attract foreign investors, but be very selective, adding that there will be instances when special exemptions would be granted.

Voicing disapproval, opposition parliamentarians said that the reintroduction of the 100% transfer tax on lands would drive away investors from the country, adding that the 60 odd companies listed in the Colombo Stock Exchange with 25% stakeholders being foreign investors would be adversely affected.

According to Dr. Amunugama, the law would pave way for regulations to be introduced to look into bona fides situations of companies engaged in fraudulent activities.

Last week, a delegation of the Ceylon Chamber of Commerce (CCC) met with Treasury Secretary Dr. P. B. Jayasundera to voice their concern over the issue.

Dr. Jayasundera had then requested the CCC to put forward their proposals, which would be considered before reaching a final consensus.

The Chamber of Construction Industry in Sri Lanka has said that "If the government wants to impose a 100% tax on the sale of land to foreigners, it is a political decision. However, if this condition is to be applied for the sale of condominium apartments, it is a huge mistake. There should be no restriction on foreigners purchasing condominium units, whether it be in Colombo or in other parts of the country.

"At present the real estate market is buoyant due to foreigners having no restrictions to purchase condominiums."

According to Dr. Amunugama condominiums could get exemptions as they are considered economic projects.

He went on to say that through regulations, genuine companies could get exemptions, adding that the law will pose to be disadvantageous to those not involved in proper economic activites.

AAA rating for Telecom 

Fitch Ratings Lanka Ltd (FRL) assigned AAA (sri) (Triple A) national rating to Sri Lanka Telecom Limited (SLT).  At the same time, FRL upgraded SLT's 2000/2005 Unsecured Redeemable Debenture to AAA (sri) from AA+ (sri). The Rating Outlook is Stable.

AAA (sri) credit ratings denote the lowest expectation of credit risk. This rating is assigned only in case of exceptionally strong capacity for timely payment of financial commitments. This capacity is highly unlikely to be adversely affected by foreseeable events. The rating takes into account SLT's position as the only fully integrated telecommunications service provider in the country, its dominant market share in the Direct Exchange Line (DEL) market, capacity to offer data and other network services and the promising growth prospects in the wireless telecommunications sector, particularly mobile telephony.

SLT's credit profile has improved in the last few years. This was partially due to repayment of debt and low additional borrowings owing to reduced discretionary capital expenditure. The group maintained healthy EBITDA margins and a sound financial profile despite facing a deregulated operating environment. Total Debt/ EBITDA at March 2004 was 1.4x, down from 3x three years ago, while EBITDA/ Interest improved to 6x.

Credit metrics are likely to be pressured over the medium term. Additional borrowings to finance Mobitel's expansion, together with debt repayments would result in the group's free cash flow being negative over the next couple of years. While favourably considering Mobitel's expansion plans and prospects, FRL also recognises the intensifying competition in the wireless telecommunications market.  In addition the evolving regulatory framework of the country and future regulatory determinations may affect SLT. Other concerns include the fragile political climate, which may hamper the long-term growth prospects of the industry.

Noritake opens showroom in India 

Noritake Lanka Porcelain in collaboration with Inter Asia of India, announced the opening of its first showroom 'The Legend' at the Defense Colony opposite Kotla in Delhi. Noritake is regarded as one of the leading manufacturers in the tableware industry around the globe for both its quality, style and value.

In the year 1876, a young former diplomat named Baron Ichizaemon Morimura established Morimura Brothers, Japan's first fine china trading company with a head office in Tokyo and retail and wholesale office in New York city. In doing so, he began to realise his personal vision of bringing to the North American continent the unique beauty and elegance of Japan's distinctive fine china, gifts and decorative products so widely adrnired and avidly collected by discerning Europeans since the time of Marco Polo.

In 1904, Morimura established his own manufacturing company named Nippon Toki Goumei Kaisha (now Noritake Co., Limited). Determined to ensure the quality and integrity of his distinctive products, he dedicated six years of his life to refining the manufacturing process in the factory he located in a little village named Noritake.

Now 100 years later, Noritake sets the table for millions of loyal customers providing fine china manufactured in Noritake factories and exported to more than 100 countries. Today the company concentrates its efforts on five areas: tableware, industrial products, electronics, ceramic materials and environmental engineering. Noritake Europe, Oceania and other countries in Asia. With considerable R&D capability supported by a number of factories and network of distribution centers around the world. Noritake has laid a strong foundation for continued growth.

Noritake Lanka Porcelain (Pvt) Ltd., was incorporated under the companies act in 1972, as a joint venture with Ceylon Ceramic Corporation of Sri Lanka and Noritake Co., Limited of Japan. The availability of high quality raw materials such as feldspar, quartz, dolomite and various other materials found in abundance made Noritake Japan, to open its first factory in Asia and shores of Sri Lanka.

Since its incorporation the company launched several expansion programmes. As a result of the high demand for its products in the international market, Noritake Lanka Porcelain produces an average 5,000 metric tons of porcelain tableware and approximately one million pieces of tableware per month. These items comprise standard airline tableware, hotel tableware and domestic tableware.

Richard Pieris chooses hSenid for its HRIS needs 

Richard Pieris & Co. Ltd., one of Sri Lanka's leading diversified companies, with 28 subsidiaries and associate companies, has selected hSenid Software International (Pvt) Ltd, the premier human resource information system solution provider in Sri Lanka to automate and centralise certain HR related functions of the company.

The agreement between Richard Pieris and hSenid was signed in July this year. Once the implementation and training process is completed, the entire Richard Pieris Group will be able to fully utilise the system. This should significantly streamline, HR related processes and further increase efficiency and productivity of the Group.

"The HRIS solution provided by hSenid will enable us to manage our employee time and attendance from a centralised location in a more efficient manner," said Chief Operating Officer, Richard Pieris & Co Ltd., Pravir Samarasinghe.

The time and attendance solution provided by hSenid includes several unique features such as allowing users to schedule shifts and rosters easily, handle complex calculations, accommodate multiple attendance patterns and other related requirements.

This allows accurate monitoring of staff movement, including over-time management and other attendance based calculations. The hSenid solution has the capability of gathering information from any electronic attendance device including magnetic readers, proximity scanners, bar codes, finger / palm / hand scanners, etc.

This system has the capacity to store all relevant information about employees and to perform a large variety of HR functions. All modules are closely interlinked, thus providing management with a powerful tool to streamline any HR related activity.

For example, the leave module addresses all leave management and administration needs. Processing of leave applications and approvals, checking leave entitlements for different categories of employees, ascertaining leave balances, maintaining employee history records and many other functions are handled with ease and in the most efficient manner.

"We strongly believe that our HRIS solution will bring significant benefits to Richard Pieris Group and its employees in carrying out day to day HR functions" says CEO, hSenid Software International, Dinesh Saparamadu.

hSenid Software International is the premier HRIS solution provider in Sri Lanka, specializing in HRM solutions, mobile applications, eCommerce and Communications solutions. The company has offices in the United States, Singapore and its R&D centre located in Colombo, Sri Lanka.

hSenid service a large customer base in Sri Lanka and overseas and have provided customised solutions to its clients, addressing their wide, varied and specific requirements.

Due to the multiple interests of their clientele and to serve them better, the company has diversified to provide various products and services to address different customer requirements, including HTA (Human Technology Alliance, specialised unit for HR / payroll / time attendance and analytical tools), BeyondM (specialised unit for mobile applications), Webitpro (specialised unit for e-business applications) and SI (Systems Integration, handling all security, communications and network solutions).

AAIC achieves 32% growth in revenue 

Exceeding its projected targets Asian Alliance Insurance Company (AAIC) achieved a 32% growth in revenue, a 260% growth in profitability and 45% growth in investments in the first half of 2004. During this period the company generated revenue of Rs. 355 million and paid out Rs. 120 million as benefits, losses and expenses to report an operating income of Rs. 130 million.

In the area of life insurance the company achieved a growth of 62% over the pervious period, recording revenue of Rs. 190 million. This was made possible with the existing branch network, by increasing the annualised new business, a growth of 27% and improving the retention level to 70%. The company average policy value during this period was Rs. 28,500 which ranked the highest in the market. Due to operating efficiencies in the life insurance, the company managed to increase its surplus to Rs. 31 million for the first half year, 10 times more than what was achieved last year during this same period. The company was also successful in maintaining the fifth position in the market among the 13 players, for production of new business.

Non-life insurance recorded a revenue of Rs. 165 million, despite the stiff competition in the market. The focus on new market segments and improved client relationship delivered this unprecedented results. The fire portfolio recorded a 67% growth. As a result of the selective underwriting and effective claim management method adopted, the operating income in non-life insurance was Rs. 33 million for this period. Further, the higher reinsurance commission received plus the improved claim ration contributed to the above operating income.

The company managed to increase its total investment portfolio to Rs. 248 million and this was handed over to a fund management company within the group at the beginning of this year. The portfolio is mainly invested in government securities and the growth in investment income and other income was 30% despite most of the securities being long dated at yields that are lower than market rates during the period.

Due to the quality of business offered, management effectiveness and cost control mechanisms introduced, AAIC has secured a profitability of Rs. 6.2 million in the first half of the year even after providing for the economic service charge. The above facts demonstrate the financial strength and stability of the company and its potential to further enhance its financial position.

Lekha School of Commerce relaunched 

Lekha School of Commerce, a household name since the 1950s and one of the very few training institutions of that era was relaunched recently. The school has produced over 50,000 qualified secretaries who are now with leading corporate companies in Sri Lanka. Lekha, a family owned training business that started operations at the same facility in 1956, now stands taller with two additional floors to cater to a greater number of students who will benefit from the new methodologies the company plans to introduce.

Lekha has taken further steps to offer modernised techniques in the secretarial studies combined with IT and management courses in its refurbished modern building complex in the heart of Nugegoda.

Through its affiliation to Spectrum Institute of Science and Technology the task of delivering cutting edge technologies from IT to management becomes available and the best of all courses will be made available to the students of the immediate suburbs. A variety of courses on offer target school leavers to professionals.

Director, Lekha, Nisitha Samarasekera said, "We are indeed proud to relaunch the company with all modern facilities and courses and are looking forward to serving the community for another 50 successful years. With years of teaching and management experience combined with a professionally qualified and trained staff, we are sure that the academy will be able to produce competent and confident young persons who can handle the demands of today's corporate world. Our affiliation to Spectrum compliments this goal and would make it easy to deliver the best to the students of the area."

Spectrum Institute of Science & Technology, a BOI approved training venture, is a leading training company that introduced many modern technology courses in Sri Lanka and have produced a large number of students with internationally recognised certifications.

Spectrum, one of the most successful training companies in the field of Microsoft Systems Engineering, Cisco Certified Network Engineers, also has a large number of students in their biotechnolgy degree programmes offered in Sri Lanka through the Chandrashekar Azad University of Agriculture & Technology of Kanpur, India.

Lanka's competitiveness on the decline, warns CNCI Chief 

By Marianne David 

The biggest problem Sri Lanka is facing right now is decreasing competitiveness, according to Chairman, Ceylon National Chamber of Industries (CNCI), Ranjith Hettiarachchy.

"Sri Lanka is in a situation where competitiveness is eroding. The main reason for this was the war. The ceasefire showed what a difference the stopping of war creates in industry. That alone shows the importance of peace," he said.

A doubtful situation with regard to peace is a dangerous situation, warns Hettiarachchy.

According to him, no business can survive without taking long-term decisions, however, businesses cannot take long-term decisions or make plans when there is a doubtful situation and the most important thing to improve competitiveness is to create a stable situation.

Speaking about power generation and the problems the country has faced in this aspect, he said none of the successive governments have taken clear decisions and while the decisions may be unpopular, they have to be made.

"There are certain things the private sector cannot do and the government must act as a facilitator. Up to date, successive governments have failed to do this, while other countries are moving fast in this aspect. We are not moving forward, but going backward because the higher power costs also decrease competitiveness," he charged.

"We have to go for the most economical option such as Liquid Natural Gas (LNG) or coal power. It is up to the government to decide on what to do after consulting experts but that decision too has to be taken."

In order to overcome the impact of increasing energy costs, Sri Lanka has other alternatives without depending on diesel so much, he said, adding that Sri Lanka has the alternative of developing mini hydro power plants and using dendro power generation.

Another method of saving energy would be a dual tariff system for domestic use, which is being practised in other countries and can be introduced to Sri Lanka, he said.

What has happened now says Hettiarachchy, is no decision has been taken about peace, no decision has been taken about power costs and no decision has been taken about improving productivity.

He further said the government must take a decision about adjusting holidays and the CNCI has given a proposal to the government to follow the other developing countries in the Asian region and have a long vacation or two.

"In countries such as China, Malaysia and Thailand for example they take their entitled holidays in about two long holidays a year when all the companies and factories are closed and no economic activity takes place, which is economical. That decision too has not been made by the government," he said.

Hettiarachchy also highlighted the importance of improving the highways in order to improve productivity - "People take three to four times longer to travel to work here than other countries in the Asian region and as a result they are not productive when they get to work. While the southern highway is being developed, we are not aware as to whether the work is going on as per the target."

When the country is in a situation where important decisions are not taken, when fuel prices go up or something negative happens like a thunderbolt, it creates a difficult situation he said, adding, "all the other areas are negative and on top of it all, the increasing of fuel prices worsens the situation. Topping that, the rupee has depreciated and we are affected by imported inflation, which erodes into the buying power of the population."

Hettiarachchy said imported inflation has a dual effect: it affects the cost of raw material since Sri Lanka imports most of the industrial raw material and also affects the buying power of customers and buying is limited to essential items. As a result, business activities are affected.

He says while the answer to this problem may be to export, Sri Lanka is affected due to the cost of power and output. The cost of labour may be cheaper here but the other negative factors erode competitiveness.

If the other negative factors did not exist, the increasing energy costs would not have had such an effect and industries where more energy is consumed could be affected very badly by the increasing energy costs, he said.

"Sri Lanka as a small nation cannot have a very big impact or get a favourable price on fuel but if we can turn around our other negative factors, we can create a competitive situation. These negative factors should be adjusted as fast as possible, "Hettiarachchy asserted.

In order to do this, he says, the government should develop an attitude among leaders of putting the country first. If this attitude change is not brought about, we will not be able to prosper.

"Singapore and Malaysia have achieved a lot by changing attitudes. For that, the leaders are mainly responsible and instrumental in changing attitudes. That is what is lacking in Sri Lanka. Sri Lanka has been identified as a country where millennium funding will be done. Therefore we have to immediately identify priorities for this funding. As a developing country, we could ask for economic support from OPEC due to the cost of fuel going up. The government has to immediately give priority to seeking help to overcome this problem," he added.

IMF and World Bank: Is reform underway? 

Originally created to provide stability in a global post-war economy where exchange rates were fixed, though adjustable, the IMF and the World Bank (WB) were born with outstanding survival instincts that have kept them going after exchange rates were floated in the early 1970s.

Having morphed from technocrats to firefighters, they have often been praised for their ability to prevent or at least deal with economic crisis in the world's poorest countries, then move on to lend money that helps them modernise and instigate reforms. But the reason why their names so readily slip off the tip of the tongue of lay people is a widely-held belief that they are arrogant, incompetent and ineffective, and that at times they actually make matters worse.

There have been several instances where following the institutions' involvement, output and growth rates have fallen, unemployment has risen and the differences between rich and poor have grown.

The IMF and the WB acknowledge that their projects sometimes fail to achieve the desired results or have unintended negative consequences, but insist that this is often because governments ignore their prescriptions. Indeed, at times countries might say they will carry out reforms, but soon after they get the money they back away from their promises.

For every case presented by their critics as proof that their methods are mad, the IMF and the WB are able to come up with a case that shows the opposite, that illustrates that their efforts often bear fruit. Rightly or wrongly, when lending money to troubled economies, the IMF and the WB attach conditions. After all, it is their job to make sure the money injected by their shareholders is not squandered by corrupt or incompetent governments.

So as the IMF and the WB turn 60, the institutions' shareholders, namely rich nations that pay for their operations, have begun talking about reform.  "So many things have changed in the world economy over the last 60 years and more changes will take place in the near future," said Director (International Financial Relations), Treasury Department, Italy, Lorenzo Bini Smaghi.

New ideas are penetrating the IMF headquarters in Washington DC. "The key question is whether the Bretton Woods institutions have been able to adapt so as to continue to pursue efficiently their primary objectives, which are the stability of the international financial system and the fight against poverty." A strategic review of institutions' roles began in 2002 as part of the search for a "new international financial architecture". Some changes are already underway.

The UK has proposed that all debts owed by poor countries should be written off, and although the leaders of the G8 rich countries have not agreed, they decided in June to extend a debt relief scheme. Demands for the IMF and the World Bank to both lend and meddle less are also being heard. Are the Bretton Woods institutions able to fight poverty?

There is serious consideration by shareholders of proposals to give grants instead of loans to very poor countries and to limit conditions to macro-economic targets.  Moreover, both institutions have been working for several years to become more transparent, more accountable and more participatory. Formerly secret information about their decision making, their financial disclosure rules and their staff codes of conduct is now public.

There is also growing acceptance among shareholders that national governments should be the judges of their social and political priorities, though the institutions continue to push for stronger laws and institutions, that is legal and financial reform, to ensure that borrowing governments are in control of their own countries. Of course, there are those who insist that focusing on macro-economics would ignore real - but difficult to measure - problems that are the true reasons why development is held back, such as corruption, political instability or culture clashes between ethnic groups.

Other critics insist that the institutions' obsession with measuring progress in terms of inflation rates or exchange rates is merely a neat way of controlling the aid recipients, indeed a method that actually distorts the way their national economies are run.  Then there are those who say the institutions simply cannot be trusted, not least because they sometimes continue to insist that the economic steps they called for were the right ones - even after things have gone sour.

Beyond such attacks, a more probing one is often made by free market thinkers: To their shareholders, the IMF and the WB have become political tools which they often use to further their own ends. And as long as there is confusion about the institutions' true purpose, any changes in their behaviour or structures, however sensible or well-meaning, will continue to be viewed with suspicion.         - BBC News

SriLankan Catering signs agreement with
Jathika Sevaka Sangamaya  

SriLankan Catering Services signed a three year collective bargaining agreement with its main employee union, the Jathika Sevaka Sangamaya last week.

"This is an extremely progressive agreement as the company has looked after the needs of our employees for  the next three years in a manner that satisfies the aspirations of all our staff," said CEO, SriLankan Catering Services, Dilip Nijhawan.

The agreement covers many areas including increments over a three-year period and adjustments in minimum and maximum points of salary scales of various grades of staff. A variety of allowances and benefits such as personal accident insurance, funeral expenses have also been increased.

SriLankan Catering Services is the catering arm of the SriLankan Airlines Group, and provides catering services for flights of all airlines that use the Bandaranaike International Airport.

The Jathika Sevaka Sanagamaya counts amongst its members 306 of the company's 389 permanent employees. The company also offered the terms of the agreement, which will be effective from April 1 to March 31, 2007, to all employees who are not members of the JSS, and all of them have signed up to share its facilities and benefits.

Metropolitan launches Office Works 

Metropolitan has established a specialised division to support and cater to the office supplies needs of its large customer base. Office Works was evolved as a concept primarily to meet the fast paced activity in the business environment and save valuable time and other resources.

Office Works is best described as the 'one stop shop' for office requisites since it stocks the complete range of toner cartridges for copiers and laser printers, BJ printer cartridges, ribbons for the range of dot-matrix printers, electronic typewriters, cash registers and general stationery items, and floppy disks to an array of IT related items. The division is perhaps the single largest paper vendor in terms of 'paper related' items that include perforated computer forms, specialty paper and boards, paper rolls for machines with printing devices and brilliant white plain paper for photocopying, printing, faxing and other office applications as well.

Office Works provide a unique level of service to customers by assessing the 'total office supplies' requirement of the customer account and provides a single solution. The best news is that you have one contact point, quality products from a single source, just in time deliveries, and the expert staff of Office Works providing a professional service. The constant assessing and monitoring of your stationery needs and delivery on time by the experts has benefited the customer in finding additional time to enhance core business.

For customers who may still want a shopping experience, Office Works has 16 outlets around the island, which include the main CWE outlets as well, which are a great source of convenience to the professionals and the entrepreneur who operates from home.

 General Manager, Office Works, Ainsley de Silva stated that several leading corporates have standardised on the 'package offers' and regular monthly deliveries are made, thus the customer has virtually entrusted his company to manage their office supplies' needs. He said in the 'just in time' delivery concept an outsourced warehouse is used to stock customer requirements thereby freeing valuable office space of the customer. Deliveries are planned on regular intervals and the cost of storage is not borne by the customer. "Their trust and confidence in our ability to keep their office working smoothly is the result of our experience and knowledge in this field," added de Silva.