Business

 Tax amnesty 

Changing positions affecting business confidence 

By  Jamila Najmuddin 

The business community is fast losing confidence in successive governments given the constantly changing positions with regard to the tax amnesty bill.

The Inland Revenue (Special Provisions) Act No. 10 of 2003 was introduced by the UNF government during its term in office and was then abolished by the UPFA government last month.

The business sector believes there are certain sections of the business community that should benefit through the abolition of this bill while others, who they say do not deserve to benefit, should be made to pay their taxes accordingly.

Speaking about the abolition of the bill, former Finance Minister, K.N. Choksy told The Sunday Leader this move in annulling an amnesty given would have a serious negative impact on local private sector investment and the development of the industry and export trade.

Justice Minister, John Seneviratne told The Sunday Leader the Finance Ministry and the Treasury have the power to make taxpayers pay the taxes they have not been paying due to the tax amnesty bill, but declined to comment further saying he was not in a position to do so.

Choksy stated that local private sector investment and the development of the industry and export trade are essential in order to increase employment in the country.

"Consistency in fiscal policy is essential in order to ensure well-planned and sustained economic development. Continuity also brings with it the necessary confidence that has to be built up in both local and foreign investors," he asserted.

According to him, the UNF government pursued such a policy, the success of which resulted in the turnaround of a negative growth in 2001 under the PA government into a positive growth of 5.9% by the end of 2003 while the UNF was in power, and inflation was also reduced from 14% to 6%.

Choksy further said a new government is entitled to change its political and budgetary policies, but in doing so, it has to ensure there are no harmful effects on the economy as a whole.

Tax amnesties have been granted in Sri Lanka from time to time by various governments. This included two foreign exchange amnesties by the SLFP. None of these previous amnesties were repealed by a succeeding government, Choksy further explained, adding the broad-based amnesty in 2002 by the UNF was to ensure the success of such a manoeuvre, he said.

"Previous amnesties were limited to one particular tax. A declarant  found himself running into trouble in regard to other taxes. It was therefore decided to give a wide-based amnesty. This was successful in that it brought in a large number of declarations. Every person making a declaration was subject to taxation from April 1, this year, unless he was already a taxpayer. In this way the tax net was enlarged and public revenue was increased," Choksy explained.

The former finance minister asserted that in addition to the very probably decline in private investment as a result of this unprecedented withdrawal of an amnesty, the government itself will lack revenue for investment in the public sector to create a modern, competitive society with adequate infrastructure facilities.

Secretary General, Federation of Chamber of Commerce in Sri Lanka (FCCISL), Amantha Abeywickrema describing the abolition as "important,"  told The Sunday Leader it would have a far-reaching impact on business and investor confidence.

"Both the government and the opposition should be truthful before they introduce bills of this kind. A lot of people have been affected due to the abolition of this bill," he said.

He further added there are genuine people who should have been considered in this regard and in the case of defaulters, the government should have worked out a grace period and introduced another mechanism to deal with them.

According to Abeywickrema, the legislation could have been rationalised in order to safeguard investor and business confidence.

He asserted that the changing positions would result in taxpayers' losing confidence in the governments, and would also prevent business people and investors from responding positively in the future.

"In the event that happens, we would face serious repercussions," he warned.

Chairman, National Chamber of Industries, Nimal Perera told The Sunday Leader through this move, people would lose confidence.

However, he added there were defaulters who were purposely evading taxes and if one visited the Inland Revenue Department, it would confirm that the number of files of people paying taxes was "extremely" low.

"You cannot introduce or abolish a bill whenever you like because there are a lot of people who would be affected by it either way," he said.

Amunugama in US for high level consultations 

Finance Minister Sarath Amunugama left for Washington last week to attend the 2004 G-24 Ministers Meeting, and annual meetings of the boards of governors of the IMF and World Bank. The Minister is scheduled to address the 2004 annual meetings of the boards of governors of the IMF and the World Bank today (3).

Amunugama is expected back in the island tomorrow. He was accompanied by Governor, Central Bank of Sri Lanka, Sunil Mendis, Deputy Secretary to the Treasury, Sumith Abeysinghe, Deputy Governor, Central Bank, Dr. Ranee Jayamaha, Appointed Member, Monetary Board, P.D. Rodrigo, Assistant to the Governor, Central Bank, R.A. Jayatissa, Alternate Executive Director, International Monetary Fund, Dr. Uthum Herat and Director (Economic Research), Central Bank, Dr. H.N. Thenuwara.

Sri Lanka's Ambassador to the United States, Ambassador Devinda R. Subasinghe was expected to join the Minister in the bilateral and multilateral discussions.

During the visit Amunugama was scheduled to meet with the Treasury Department and the Millennium Challenge Corporation to discuss bilateral cooperation in the areas of economic development and development financing, and also to meet the United States Trade Representative (USTR) and the Deputy USTR to apprise them of the economic policies of the government and to discuss matters related to further broadening and deepening the US-Sri Lanka bilateral economic relationship.

The Minister's meeting follows the Trade, Commerce and Consumer Affairs Minister, Jeyaraj Fernandopulle's meeting with the USTR in June and also precedes the fourth ministerial meeting of the Joint Council under the Trade and Investment Agreement (TIFA ) scheduled for later this month.

The Finance Minister's discussions with Deputy Secretary of the Treasury were to be within the framework of the ongoing US Treasury technical assistance programmes in Sri Lanka. These include programmes on budget formulation and debt management.

Cable TV over phone line from Millennium IT

A new breakthrough by Millennium Information Technologies and a group of overseas technical partners may soon enable customers to receive movies, news, sports, documentary and entertainment channels through the home telephone.

A test broadcast of multi-channel video on a section of Sri Lanka's telephone network was successfully concluded recently, using technology supplied and set up by Millennium IT together with a group of technical partners in Denmark, Hong Kong and Israel. The broadcast made use of a technology called IP (Internet Protocol) - the same technology that allows internet users and big businesses to transfer vast amounts of electronic data down phone lines originally designed to carry only voice signals.

"Using IP to transmit video by phone is many times cheaper than conventional cable TV," says Damith Hettihewa of Millennium IT. "There's no need to lay fresh cables or invest in expensive transmitting equipment - you just use the national telephone grid. And the best part is, it's islandwide"

A spokesperson from the telecommunications company points out that the new technology is also a potential boon to independent film and TV producers. Subscribers will receive the multicast video signals through a decoder connected to the phone line. The decoder relays signals to the viewer's TV set, just like a cable TV decoder. The consumer's telephone, fax and internet connections will continue to work as normal.

Asked whether the vast amounts of data associated with video images will clog up the nation's telephone network, Hettihewa replied in the negative. The telecom service provider hopes to offer the new video technology to cable TV operators and its private and business telephone subscribers shortly.

GDP growth dips in second quarter

By Mandana Ismail Abeywickrema 

The 5.2% growth recorded in the second quarter of this year is lower than the growth recorded in the corresponding quarter of the previous year, 5.6%, and in the first quarter of this year, 6.2%.

While 5.2% growth in GDP has been recorded for the second quarter according to the statistics released by the Central Bank last week, there has been a 7.1% increase in the services sector, 3.3% in the agriculture sector and 2.6% in the industry sector this year.

However, for the eighth consecutive quarter, the country has recorded a growth rate of over 5%, which according to Deputy Governor, Central Bank, W.A. Wijewardena has been a good performance.

The 5.2% growth, the report explains, is a continuation of the growth momentum that began in the second half of 2002.

It was pointed out that the growth in the second quarter of this year was lower than the growth recorded in the corresponding quarter of the previous year and in the first quarter of this year, mostly due to the deceleration in factory industry, particularly for the export market, in this quarter and the negative impact of the drought in certain districts that affected the 2003/2004 Maha season agricultural production as well as hydro power generation.

Nevertheless, the growth in the first half of this year, at 5.7%, just exceeded the first half growth in 2003 at 5.6%. Based on the first half performance, and taking account of the impact of the drought on Yala agricultural production, as well as the increase in fuel prices on all economic sectors in the second half of the year, GDP growth for the year as a whole is projected in the range of 5 to 5.5%, down from the earlier figure of 6%.

However, according to Director, Statistics Department, Dr. Anila Dias Bandaranayake, implementation delays in infrastructure projects, economic policy uncertainties and political instability could hamper the expected growth momentum.

Dr. Bandaranayake further said that although inflation is on an upward trend, by the end of 2004, it would be maintained at around 6-7%.

According to the Central Bank report, the economic performance in 2002 and 2003 was driven in no small measure by consumer confidence, also supported by recovery in exports.

The cessation of hostilities since February 2002 and the resultant peaceful environment that prevailed in the country paved the way for growth driven by consumer demand. The investors' response was not as rapid and it was evident that investors preferred to follow a wait-and-see policy during 2002 and most of 2003.

An improvement in investor confidence was first seen during the latter half of 2003. During the first half of this year, investment expenditure grew, indicating that investment, rather than consumption, would provide the impetus for economic growth this year.

This was clearly observed in the first half of this year as indicated by a sustained expansion in private sector credit and a noticeable increase in imports of investment goods during the period.

The prevailing lower interest rates also stimulated investment expansion. This is heartening, as consumer driven growth is unlikely to be sustainable in the long run without a corresponding rise in investment.

The performance of the Colombo Stock Exchange also reflected positive investor sentiment. This increase in investment is reflected in the projected growth for this year and, if it continues in the second half of this year, will augur well towards capacity expansion for achieving a higher growth in 2005 and beyond.

In the sectoral analysis, the report states that the services sector, which has continuously recorded over 6 % growth during the last eight quarters, continued to record the highest growth (7.1%) and contributed 76% to the overall economic growth in the second quarter of this year.

The agriculture sector, where growth rates have been most volatile over time, grew by 3.3% and contributed 11% to the overall growth. The industry sector, where growth has been less smooth over time in certain sectors, grew by 2.6% and contributed 13% to the overall economic expansion.

No quick fix for business confidence

There's no quick fix for the doldrums in which business confidence is in, says business magazine LMD in its October edition, or so it would seem from the latest update on business confidence. The LMD-ACNielsen Business Confidence Index (BCI) dropped by one basis point, to 97, in September - a 32-month low.

The BCI has, in fact, continued to spiral downwards since November last year, LMD reveals. This was when parliament was prorogued sans any warning. The exception was in April, when the business community expressed its relief about the absence of the kind of disruption that is commonplace during elections in this country.

As for the economy in the medium term, there is little confidence that it will take off in coming months, the BCI surmises. In September, a meagre eight percent of those surveyed expected "the economy, in general, to improve in the coming 12 months" - down from 44 percent at the start of the year.

The investment climate is also being viewed with pessimism, the BCI notes, with two-thirds of those who were spoken to saying that "the current investment climate is poor or very poor." Only four percent feel that our investment prospects are "good" - and for the third month in succession, none say that they are "very good." The ray of hope comes in the form of those who now view prospects as being "fair" - up 13 percentage points, to 40 percent of respondents, last month.

LMD also says in its latest issue, that with the government's maiden fiscal budget due to be presented in November, "there is little doubt that confidence will continue to suffer in the near term."

The Finance Ministry, it says, will have to ask Sri Lankans to tighten their belts, following the chain of events that has resulted in the present economic meltdown. And more mixed signals on the political front are only making matters worse.

Habib Bank to expand

With an emphasis on providing specialised trade and financial services, Habib Bank's Sri Lanka operation has been in existence for over 50 years now, with expansion and more efficiency of services on the cards in the near future, according to Country Manager, M. Yousuf Saudagar.

Habib Bank is the banking giant in Pakistan, having been established in undivided India in 1941 and moving its headquarters to Pakistan following the partition in 1947. The Sri Lanka operation was the bank's first overseas base, while Habib Bank has 55 overseas branches in 26 countries around the world today. In Sri Lanka, Habib Bank has three branches for domestic banking and one more dealing with offshore banking needs, with an operation consisting of 57 employees in all, Saudagar said.

Saudagar also said Habib Bank was currently making efforts to increase its customer base and that the company had recently added several high profile names to its current list of clients. In a bid to further enhance their client servicing, Habib Bank has also recently added some highly qualified banking personnel to its staff.

Following restructuring of Habib Bank in Pakistan in 1997, the Sri Lanka Operations of HBL put in place a functional organisational structure, including marketing, operations, finance, treasury, IT and internal control, to replace the more traditional branch model. Every unit is headed by fully fledged managers, specific to each sector who are then responsible to the country manager who looks after the overall operation.

ADB in US$ 5 million trade deal with NTB

Asian Development Bank (ADB) has arranged a US$ 5 million line for Nations Trust Bank (NTB) to enable it to expand its trade finance capability. This is part of ADB's trade finance facilitation initiative across Asia, in order to promote trade and to enable Asian banks to fund global trade business in partnership with major banks across the globe.

The facility offered to NTB comprises both a funding line as well as a stand-by guarantee line to enable easy confirmation of letters of credit from its correspondents across the world. ADB has already come to an agreement with 53 major banks to accept their stand-by guarantees and more names are being added to the list on a need-to basis. The facility was arranged for NTB after a due diligence was undertaken by the ADB in the second quarter of this year and recommendations made to include NTB under the programme.

CSFSL records impressive profit growth

In the backdrop of an active year in the property and financial markets, Ceylinco Securities and Financial Services Ltd. (CSFSL), spearheading the investment banking activities of Ceylinco Consolidated, has performed well to post a turnover of Rs. 2.96 bn and Rs. 104 mn after tax profit for the financial year ended March 31.

A growth of more than 40% in profit after tax compared with an increase of 22% in total assets is the result of renewed vigour and redefined strategic focus adopted by the company in the previous year. Having broad-based the activities of the company to focus on real estate and leasing, CSFSL has been able to increase its market share considerably.

The increase in net profit and revenue is mainly due to the impressive performance in the property development and land trading businesses and the boost in net interest income. The drop in interest expense by 5.5% and rise in interest income by 18.8% was a result of the fall in market interest rates.

While non-interest income accounted for 80.6% of total group income, service income showed the largest increase: a 114.7% increase year on year. The gross income saw a healthy increase of 57% to Rs. 922.60 mn from 586.03 mn in the previous year and a consequent increase in net income before provisions and taxation by 38% from Rs. 139.02 mn to Rs. 193.40 mn.

During the year the asset base grew by 22%, whilst funds under management increased by 25% from Rs. 3.4 bn to Rs. 4.2 bn. The company will concentrate primarily on property development, leasing and capital market activities.

Hutchison Telecom IPO

Hutchison Telecommunications International, Hutchison Whampoa's telecom unit, expects to raise as much as US$ 1.13 billion from a public offering in the US and Hong Kong.

Hutchison Whampoa said it will offer 1.155 billion shares or 25 percent of the unit's 4.5 billion shares, at an indicative price range of hkd 6.59-7.63 a share.

The price range, which is for institutional clients and excludes brokerage fees, values Hutchison Telecom at between US$ 3.8 billion and US$ 4.4 billion.

Hutchison Telecom holds Hutchison Whampoa's mobile-telecom businesses in India, Thailand, Israel, Macau, Sri Lanka, Ghana and Paraguay, as well as its Hong Kong telecom operations.

The final IPO price will be fixed on October 7, ahead of the listing debuts on the Hong Kong main board on October 15 and American depositary receipts on October 14. The ADRs will be offered at US$ 12.67 to US$ 14.67.

Information security of companies inadequate - E&Y survey 

Organisations around the world are failing to safeguard against increasingly more potent threats to the security of their information, a recent survey by global professional services provider, Ernst & Young has found.

The 2004 Ernst & Young Global Information Security Survey found that, although company leaders are increasingly aware of the risks posed to their information security by people within their organisations, they are not acting on this knowledge. More than 70 percent of the 1,233 organisations - representing some of the leading companies in 51 countries - failed to list training and raising employee awareness of information security issues as a top initiative.

As organisations move toward increasingly decentralised business models through outsourcing and other external partnerships, it becomes ever more difficult for them to retain control over the security of their information and for senior management to comprehend the level of risk to which they are exposed.

"Companies can outsource their work, but they can't outsource responsibility for its security," Global Director (Technology and Security Risk Services), Ernst & Young, Edwin Bennett said. "Fewer than one-third of those companies conduct a regular assessment of their IT providers to monitor compliance with information security policies - they are simply relying on trust. Organisations have to demand higher levels of security from their business partners."

The Ernst & Young survey indicates that organisations remain focused on external threats such as viruses, while internal threats are consistently under-emphasised. Companies will readily commit to technology purchases such as firewalls and virus protection, but are hesitant to assign priority to human capital.

"While the public's attention remains focused upon the external threats," Bennett said, "companies face far greater damage from insiders' misconduct, omissions, oversights, or an organisational culture that violates existing standards. Because many insider incidents are based on concealment, organisations often are unaware they're being victimised. Too many organisations feel that information security has no value when there is no visible attack. This is a perception that has remained unchanged over the decade that Ernst & Young has been conducting this survey."

Companies should instead place more emphasis on creating a security-conscious culture that includes setting the right "tone at the top" - this is vital in changing the way organisations approach information security, Bennett believes. "Companies can transform their view of information security, and approach it as a way to gain competitive advantage and preserve shareholder value, rather than merely consider it a necessary cost of doing business," he said.

"However, this transformation must be led by a visible shift in attitude from the CEO and the board. At present, only 20 percent of organisations view information security as a CEO-level priority. More could and should be done to transform the skills and awareness of their people, who often present the greatest opportunity for vulnerabilities - and convert them into its strongest layer of defense."

Most Sri Lankans are gullible 

By Dinesh Weerakkody 

According to a survey carried out by a PhD student recently, majority of our Sri Lankans are gullible, don't like to take issues head on, and also have very short memories.

This is very true; in fact the UPFA's 'Rata Perata' programme promised the earth and the moon for the poor and the public servants. For example, within three months they promised a 70% wage increase to the public servants. Six months have gone, what wage increase or Rata Perata, all indicators point to one grim fact: we are all set for a rough ride.

Today inflation is up, our foreign reserves are down by over US$ 700 million, government borrowings are up and the cost of living has hit record levels. The opposition has done next to nothing to give ear to public discontent and point it in the right way.

Opposition

On the other hand Mahinda Rajapakse and the JVP for reasons best known to them have already told the UNP what they would have done if they were in opposition.

However, since they are not in opposition, it is best they use their time more productively and provide some relief to the poor without worrying too much about the opposition and playing to the gallery.

On the other hand, the JVP is now part of government and they are responsible for Kumaratunga's actions. If they are not happy with the way the government is progressing, they should quit without criticising the government and disagreeing on just about everything.

Making noises to retain their vote base, while supporting government policy is an insult to our people. But the pathetic irony in sunny Sri Lanka is that the majority is gullible and many have very short memories.

In fact, most people in April believed everything the JVP said about Ranil Wickremesinghe's government and showed Wickremesinghe the door. However, on his part, he too failed to acknowledge the ground realities that confronted his government and his ministers as a result of this misinformation.

As a result, the people turned to the JVP to usher in the new political culture they promised, i.e. discipline in governance and delivering the list of promises. Now, six months into its term, it is becoming abundantly clear that like the two major parties, the JVP too is learning fast that the truth is a moving target.

Manifesto pledges

The UPFA has already cast aside some of the manifesto pledges they solemnly made to the nation. The public perception of the JVP is fast changing simply because they are doing very little to stop the government's deviations from the manifesto pledges.

It seems the JVP's high flowing values and principles were only for the election campaign. In fact, it was the late Ronald Reagan who once said "politics is supposed to be the second-oldest profession. I have come to realise that it bears a very close resemblance to the first."

In fact, in Sri Lanka today our politicians are one group for which the public has more contempt than any other segment in our society, because they have collectively done very little to bring about national consensus and obstructed economic development.

Unless the public becomes assertive, our politicians will never realise or accept that they are elected to serve the people and not to be served by them. Many of them still go on the wrong side of the road, horns blaring, causing enormous incontinence to the public forgetting very conveniently that it is the tax payers they harass on the roads who fund their security and pay for their luxury vehicles.

Therefore, only when our political leaders on both sides learn that political differences should not outweigh national interest and that all political parties put the country ahead of their political agendas and work for the greater good of our nation, will our country prosper and grow.

The investor

The debt-burdened economy and the effect of the ever rising cost of living are only supposed to be felt by the business community and the average citizen of this country.

The politicians, regardless of the situation, drive around in the most expensive cars, travel first class and dine and stay at top five star hotels but expect the people who pay taxes to keep the government alive to make all the sacrifices.

After languishing in the doldrums from 1999 and a recession in 2001, the economy recovered with economic growth being as high as 6% in 2003. We cannot afford to lose this momentum this year.

The majority of the people of Sri Lanka do not care who enables the economy, as long as it is effectively enabled. Without watching in silence while the politicians do what they desire on an on going basis, it is high time the people of this country hold political leaders accountable and responsible for their actions.

In this context, the chambers should exert pressure on both sides to at least work together to resolve some of the key national issues. The UNF leadership on the other hand will have to rise from its slumber and do the job it is paid to do by the tax payers.

To make any impact on the electorate, the UNF will have to give ear to public discontent and point it in a way to ensure the government delivers in the shortest possible time. Therefore, the UNF needs to wake up fast and meet the challenge thrown at it by the President.

On the other hand, the UPFA must realise that in 2002-2003, due to peace, there was a resurgence of the economy, endorsement from the international community and optimism. The business community took the risk and began to invest and create employment.

Therefore, it would be tragic for the country if, having come so far, all the gains in the past are lost because the President is preoccupied in trying to cut a deal to remain in power post 2005 and is not focused on consolidating the gains made in the last few years.

Way forward

Kumaratunga and the JVP, unlike Wickremesinghe and the UNP have got a mandate so they should stop gambling with the country and fulfill the many promises they so solemnly gave the people. The UNP on the other hand must shed its passive and defeatist attitude if it hopes to make any impact.

Also, the two main parties should shed their political differences and unite behind a common vision to get the peace process off the ground.

In the final analysis, the ground reality is such today that the country will be confronted with a prolonged crisis on the economic and political fronts unless Kumaratunga and the JVP firstly see eye to eye on policy and the UNP cohabits on the peace front.

Now that will only happen when Kumaratunga, Weerawansa and Wickremesinghe realise that whether they think their blood to be blue, red, or green, they are above all and before everything else Sri Lankans. If not, they will all make Sri Lanka a sadder place for all of us to live.

Red tape hampering infrastructure development 

By Marianne David 

There is a vital necessity for a one-stop shop concept with regard to obtaining clearance for any type of investment in order to boost the economy and encourage investment in the country.

With bureaucracy getting in the way, infrastructure development is particularly hindered, with the relevant parties having to go through a number of channels in order to obtain clearance for construction projects.

"One-stop shop approval is important for investment so that time is not wasted. We should have a clear-cut picture. If a project is approved in principle, all relevant approval under the laws of the land must be under BOI purview," said Deputy Chairman (Ceylinco Securities and Financial Services Group), Bandula Ranaweera, speaking to The Sunday Leader.

Ranaweera said that if such a system is not adopted, there is a waste of time and energy, which results in delaying investment.

"It is important to put investment on the fast track. It is a disincentive for investment when projects take time. That gap has to be filled by the BOI," he asserted.

BOI officials speaking to The Sunday Leader said this issue has been discussed and is under consideration, but no final decision has been reached so far.

Adopting such a system would result in speedier infrastructure development, encourage investment, and cut out a lot of the hassle involved in obtaining approval, confirmed officials from property development companies.

According to Assistant General Manager (Sales and Marketing), TFC Homes (Pvt) Limited, Rajitha Jayasuriya, property developing companies go through a lot of hassle and have to go to the pradeshiya sabha many times before obtaining approval for building, telephone lines, electricity, etc.

"To get all the necessary work done, we have to go to the Pradeshiya Sabha a minimum of 25 times. A one-stop shop is the best solution for people in the housing development business. The authorities should make obtaining the necessary approval easier. As it is, we have to employ a separate person to go to the respective Pradeshiya Sabhas and get the work done," she said.

Jayasuriya further said property development companies are also doing a service to the nation and while they do make money and are doing a business, such companies are also giving people the opportunity to own a house minus the hassle.

"Most of our customers are from overseas and we are also bringing in a lot of foreign exchange," she added.

Director / General Manager, Ceylinco Land Exchange, Bandula De Silva told The Sunday Leader a one-stop shop solution is very important for real estate or property developers since obtaining approval is a major problem the industry is facing right now.

"All property developing companies face a lot of problems and sometimes it takes years to get the necessary approvals. There is a lot of obstruction and the same things are asked repeatedly in different ways by various authorities. This is a major problem we face as developers. A one-stop shop is vital now and it's the duty of the government to take action in this regard. Property development contributes a huge percentage to the economy and also generates employment in various ways," he said.

He further stated that up to now, developers have had no support from the government and one place that provides all facilities is vital.

"The final benefit is for the people. Even an individual who is building a house has to go through a lot of hassle and the developers go through a whole lot more."

Having a one-stop shop solution would give a better opportunity for the people in construction, asserted Director (Roads and Bridges), International Construction Consortium, Lalitha K. Jayasinghe.

First ICASL Financial Reporting Faculty technical evening 

The recently formed ICASL Financial Reporting Faculty had its first technical evening at the ICASL Business School hall recently. A large number of faculty members were present.

The event was arranged as an experimental interactive discussion between the participants and the panelists. Finance Director, Ceylon Tobacco Co. Ltd., Maurice Tsangaris, Finance Director, Nestle Lanka Ltd., Rasakanth Rasiah, Group Financial Director, John Keells Holdings Ltd., Ronnie Peiris, Group Financial Controller, Aitken Spence Co. Ltd., Nilanthi Sivapragasam and Partner, Ernst & Young, Lakmali Nanayakkara served on the discussion panel.

Partner, KPMG Ford, Rhodes, Thornton & Co. and Chairman of the faculty, Reyaz Mihular and Finance Director, Hayleys Ltd., and Alternate Chairman of the faculty, Richard Ebell proposed the vote of thanks. The theme for the session was "Future Of Financial Reporting In Sri Lanka - From Black And White to Colour."

Seminar on business forecasting 

CIMA Sri Lanka Division in association with the Institute of Chartered Accountants of Sri Lanka (ICASL) is organising a master course on business forecasting for profit on October 13 at the Trans Asia Hotel. Dr. Paul Goodwin of the Management School, University of Bath, United Kingdom will lead this one-day seminar.

Dr. Goodwin is an experienced speaker on forecasting and is also an associate editor of the International Journal Of Forecasting and the Journal Of Behavioral Decision Making. The third edition of his co-authored book, Decision Analysis For Management Judgment, has just been published by Wiley.

After giving an overview of forecasting methods and concepts, this seminar will identify some of the major problems that are associated with forecasting in organisations. It will show how the forecasting process within a company can be audited so that areas for improvement can be identified.

Surveys suggest that management judgement is the predominant basis for most forecasts produced in companies and the seminar will demonstrate the biases that are commonly associated with judgmental forecasts. It will then show how these biases can be reduced. The second part of the seminar will outline some basic statistical forecasting methods and explain why these are often more effective than more complex methods.

Snippets 

International symposium on reservoir fisheries management

A number of foreign and local experts on inland fisheries will participate in a first-of-its-kind international symposium in Sri Lanka on reservoir fisheries management, from today, October 3 to 7 in Dambulla. Titled 'The Symposium On Participatory Approaches To Reservoir Fisheries Management: Issues, Challenges And Policies,' the symposium will be a platform to highlight the experiences gained thus far in this sector, with the objective of formulating policy guidelines for reservoir fisheries management in Sri Lanka. The German Technical Cooperation (GTZ), the National Aquaculture Development Authority (NAQDA), UN Food and Agriculture Organisation (FAO), Sri Lanka Association of Fisheries and Aquatic Resources and the Aquatic Resource Development and Quality Improvement Project will jointly organise the symposium. Based in Tangalle, the Fisheries Community Development and Resources Management Project (FCDRMP) was established in 1988 as a pilot project of the Fisheries and Aquatic Resource Development Ministry to promote community-based fisheries management.  FCDRMP is implemented with funding from the German Federal Economic Cooperation and Development Ministry with technical assistance of the GTZ. The National Aquaculture Development Authority (NAQDA) is the project's main partner.

Asiri introduces stereotactic technology to perform brain surgery

Asiri Surgical Hospital has introduced stereotactic technology to perform brain surgery for the first time in Sri Lanka. This type of surgery is minimally invasive and very precise as the surgeon is guided by computer-based technology, using a neuro navigator (medtronic stealthstation treon). With this technology the need to open the brain to the fullest in order to perform a surgery is no longer required. The neuro navigator provides an option to open surgery, by allowing the surgeons to reach inner parts of the brain with fine probes and remove tumours with minimum incision. This state-of-the-art unit uses images of MRI/CT scans of the patient to guide the surgical instruments precisely to the tumour and other lesions, thus minimising any trauma to the brain.

Training programme for Bangladesh Central Bank officials

The Bangladesh branch of Commercial Bank of Ceylon organised a two day training programme on 'Foreign Exchange and Money Market' for Central Bank officials in Dhaka earlier this month. Eighteen senior officials with the rank of joint director, deputy director and assistant director from the Foreign Exchange Reserve and Treasury Management Department, Banking Regulatory and Policy Department, Foreign Exchange Policy Department, Department of Banking Inspection and Department of Off-site Supervision of Bangladesh Bank (the Central Bank of Bangladesh) attended the training programme. Manager (Foreign Exchange and Money Market), Commercial Bank in Colombo, Prins Perera was one of the key facilitators of the course and discussed various aspects of foreign exchange, money market and fixed income products. He highlighted various fundamental and advanced aspects of foreign exchange and money market products and explained key success factors to launch a full fledged fixed income market in Bangladesh.

Seminar on investigations

Industrial Security Foundation (Sri Lanka) Inc., the corporate body for commercial and industrial security will hold a seminar on 'Investigations' on October 9 at the Learning Centre, YWCA, Rotunda Gardens. The seminar will cover; commencement of an investigation, court proceedings and disciplinary inquiries, recording of statements from witnesses and suspects, identification, taking charge of, care and custody of production and report writing. The target group of this seminar are those who conduct investigations and or domestic inquiries, security supervisors, HR and administration, line and office managers, industrial relations and law enforcement officers. The resource personnel are former Director, Police College, Consultant and Security Management Trainer, S.B.W. de Silva, Attorney-at-Law and DIG (rtd), Micheal Attygalla and former Director, CID, SSP, Asoka Wijetilleke. Participation is by prior registration only.

MEX and Linehaul office opened in Colombo

MEX Logistics L.L.C. of Dubai and Linehaul Express (HKG) Ltd. jointly opened an office in Colombo to expand their wholesale courier network to this region. Pictured from left are CEO, Linehaul Express, Stuart Russell and Managing Director, MEX Logistics, Rohan Sivanathan.

KPMG retains MTI to develop and deliver on B2B strategies

KPMG has retained the services of MTI Consulting in the Gulf to develop and deliver an initiative on B2B strategies, based on MTI's nine step B2B customer conversion model, which has been extensively used by the likes of Standard Chartered, DHL, Amex, Bahrain Telecom and Citibank. At the launch of the initiative held at SAS Radission in Bahrain signing the agreement are Partner, KPMG, Doug Tait (right) and CEO, MTI, Hilmy Cader (left), watched by Hina Sarwat of MTI Middle East operations and Husnia Kareemi of KPMG.

Correction

In the article titled "Sinhaputhra among top 10 finance companies," which appeared in The Sunday Leader Business Section last week, the captions for the pictures should be AGM, Business Development, Sinhaputhra Finance Limited, Saliya De Alwis and AGM (IT/Risk), Sinhaputhra Finance Limited, Pandula Aluwihare. 

Suntel to connect masses with cost effective technology

In line with Post and Telecommunication Minister, D.M. Jayaratne's vision of providing over one million phone lines to clear the current backlog for telephone lines in the country, Suntel has come up with a low-cost solution which will benefit a large segment of subscribers. Still on the way to being approved by the TRC, this solution is a new technology to be introduced to Sri Lanka. Successfully launched worldwide inclusive of China, India and South Korea, which fall under the Asian region, the solution Suntel will offer rural telecom in Sri Lanka will provide a high-tech system of connecting people at extremely cost effective rates. The new technology, which is in the pipeline for launching, will enable Suntel to meet Sri Lanka's crying need for cost effective telecommunications especially in the rural sector. The launch proposal for the new technology is lodged with the TRC since 2002, and is awaiting government approval after which Suntel will immediately implement its plans.

World Bank support for e-Sri Lanka

The World Bank recently approved US$ 53 million credit for its first integrated e-development  project, the e-Sri Lanka project - a comprehensive programme of leveraging Information Communication Technologies (ICT) to improve public service delivery, increase private sector competitiveness, promote new sources of growth, accelerate social development, bridge the digital divide and support peace. "This is an exciting programme and we are delighted to be able to provide support for it," says World Bank Country Director for Sri Lanka, Peter Harrold. "It supports the three key aims of our country strategy: it underpins peace by connecting the north and the south; it enhances the prospects for growth, not only in the IT sector itself, but also by raising productivity growth in other sectors; and it advances the cause of equity, by improving the access of the poor to a range of public services."

Skywards donates one million miles each to CARE and UNICEF

Skywards, the award-winning frequent flyer programme of Emirates and SriLankan Airlines, recently welcomed its one millionth member, and is marking the occasion by donating one million Skywards miles each to two charities. Members can also get involved and make a difference by making their own donation of miles through the Skywards website. CARE International and UNICEF were chosen by Skywards from among a number of goodwill organisations which operate on a global scale for the donations. Vice President, Skywards, Brian LaBelle said, "We are celebrating the fact that the Skywards programme has attracted one million members across the globe in such a relatively short time since its launch in 2000. What better way to mark the occasion than by giving back to the international community? On behalf of our one million members across the world, we are pleased to donate one million Skywards miles each to CARE International and Unicef."

Workshop on computer forensics

Associate Professor, Computer Security and Forensics, Information Science Dept. University of Otago, Dunedin, New Zealand, Dr. Henry Wolfe, a world renowned expert in the area of computer security and forensics, will conduct a workshop on computer forensics in Sri Lanka on October 19. Dr. Wolfe's visit to Sri Lanka is part of the visiting expert programme of the South East Asia Regional Computer Confederation. Prior to arriving in Sri Lanka, Dr. Wolfe will also be conducting programmes in Malaysia and in Hong Kong as part of this initiative. The workshop will include topics such as electronic investigation, forensic evidence, preservation of evidence, surveillance techniques, encountering encryption, encountering steganography, etc. Complexities of investigation connected to devices such as PDAs, photocopiers, fax machines, telecommunication devices, cellular phones and pagers will also be discussed.