Business

Tourism sector props up bourse

By Jamila Najmuddin 

In a gloomy economy, the one exception that has created positive sentiment has been the stock market.

Speaking to The Sunday Leader, Stock Market Analyst, Bartleet Mallory Stock Brokers (Pvt) Ltd, Angelo Ranasingha pointed out that the tourism and leisure stocks boosted by the ceasefire agreement were essentially the key drivers of the stock market upsurge.

With a growth of 120% recorded from January this year to December 7 in the hotels and travels sector, Ranasingha pointed out that the stock market would continue to be driven by this sector due to high tourist arrivals expected in the country within the next few months.

"As long as the government and LTTE continue with the ceasefire agreement, investor confidence is going to expand. Although there have been a few setbacks within the past two weeks in the peace process, there has been no threat by both parties indicating that the country would head for another war," Ranasingha said.

Ranasingha added that with a total of 242 non-government companies listed in the stock market, large companies such as Aitken Spence and John Keells recorded very high growth this year as these companies were exposed to the tourism sector. "Many diversified companies linked with the tourism sector have done well this year as tourist arrivals have been higher than last year," he said adding that if the company earnings were high, it made a significant impact on the shares.

Ranasingha added that investor confidence had also increased due to the initial public offer of LIOC which  had been oversubscribed 11 times.

According to Ranasingha other sectors such as the manufacturing sector, food, beverage and tobacco sectors had also recorded high growths this year, which were all responsible for the stock market to boom.

Manager Research, HNB Stockbrokers (Pvt) Ltd, Hasitha Premaratne is also of the view that due to the high tourist arrivals in the country, the hotels and travels sector had recorded a high growth which was the main reason for the market to build upwards.

He said that with the investors' belief that the long term prospects of the peace process is positive, the country had to maintain such a climate in order to develop the economy. "It is time that the government and the LTTE take the peace process a step higher," he said.

Premaratne said that the stock market moved speedily during the month of September and October due to the hotel sector recording high profits. "Last year the results were the same during these two months," he said.

However, Principal Researcher, Point Pedro Institute of Development, Dr. Muttukrishna Saravanathan told The Sunday Leader that the robust stock market performance was not an appropriate indicator of the well being of the economy of Sri Lanka, like in many other developing countries.

Dr. Sarvanathan pointed out that since less than 1% of the registered companies are listed in the stock market, the total registered companies in Sri Lanka are around 45,000 and the listed companies are less than 400, and therefore its performance did not adequately reveal the state of the economy.

"It is true that despite worsening macroeconomic indicators in the past seven months the stock market was quite upbeat. This is mainly because the government has been influencing the primary/secondary dealers in treasury bills/bonds, through the Central Bank to keep their bidding rates low. Thus, artificially interest rates were suppressed, and hence it was beneficial for prospective investors to invest in the stock market rather than in treasury bills/bonds," Dr. Sarvanathan said.

He added that the main contributors to the good stock market performance were retail players especially from Kandy and Matara during July and October. "Besides, the IPO of LIOC oversubscribed several fold, has contributed to the positive stock market performance in very recent times," he said.

However, Dr. Sarvanathan added that the overall economy was still in a precarious state which was nothing to "gloat" about.

PERC establishes monitoring and evaluation unit

The Public Enterprises Reform Commission (PERC) is in the process of re-orienting itself in keeping with its functions and powers in terms of the Public Enterprises Reform Commission of Sri Lanka Act No.1 of 1996 and work towards assisting the government to achieve the social and national economic goals.

The functions and powers of the commission, as per the act, are be to assist the government on the reform of public enterprises.

As part of the re-orientation process, PERC has established a 'Monitoring and Evaluation Unit' to carry out reviews and surveys of divestitures, to examine, evaluate and assess the impact of divestitures and also successes and failures and causes therefore. Such review and survey will also assist to establish a fund to finance any post divestiture requirements.

The various aspects of assessment include growth development and diversification, growth in employment generation, market position of products and services, financial stability, viability and profitability and divestiture proceeds and contribution to government by way of taxation and in addition the impact of the share market and market capitalisation, the impact on the consumer public and problems faced during the process of divestiture and thereafter.

FTA talks on the rise

Over the past few years, Asian countries have engaged in a spree to create bilateral and regional free trade agreements. Trade envoys are busy working on piles of documents to establish trade liberalisation and investment facilitation arrangements, which they hope, will promote the free flow of goods, services and investment across borders. Singapore and Thailand have emerged as the two Asian countries with the biggest number of completed free trade agreements (FTA), according to the Asia News Network survey.

Three of the largest Asian economies, Japan, China and India follow the top two closely, with an increasing number of FTAs signed or under negotiated.

At present, India, Singapore, Sri Lanka and Thailand are the countries which are conducting negotiations with most countries. The proliferation of FTAs comes after some government's grew impatient with snail-paced World Trade Organisation's (WTO) Doha-round negotiations. They wanted to create bilateral trade deals to open up a few markets that have a real impact on their economies such as the United States and Japan, rather than waiting for consensus from the 148 WTO members.

 Sri Lanka is currently seeking the balance between the intention of boosting its exports that have comparative advantage and protection of domestic agriculture. High import taxes are levied to protect Sri Lanka's majority rural population from surging international trade in farm products.

Sri Lanka wants its FTA partners not to require too much opening up of its agricultural market.

Sri Lanka is also hoping to open doors for other countries for its comparatively competitive textile products by FTA initiatives. At present, Sri Lanka has an FTA with neighbouring India and exchanges traditional items such as rice, tea, handicrafts, garments, industrial products and computer technology services.

The balance of trade is in favour of India, which has a much bigger economy. Sri Lanka is continuing FTA discussions with the United States, Pakistan, Egypt, Bangladesh, Nepal, Italy and France. An FTA with the United States would be significant to the nation, considering the substantial volumes of Sri Lankan garments being exported to the world's largest economy and the global textile quota regime coming to an end in January 2005.

Inaugural brand valuation exercise

The world's leading independent brand-valuation company together with the business magazine, LMD, and the Sri Lanka-based STING Consultants,  have ranked Sri Lanka's most valuable brands for the first time.

'Sri Lanka's Most Valuable Brands,' the nation's first annual brand league, is published in a special stand-alone edition of THE LMD 50, Sri Lanka's premier rankings of leading listed companies.

The Brand League 2003/04 sets out to value Sri Lanka's leading branded businesses, the primary requisite being that the brands belong to entities listed on the Colombo Stock exchange.

The first step was to identify 50 listed companies with the highest market capitalisation on 31 March 2004, the end of the 2003/04 fiscal year. 

"We excluded holding companies that own multiple businesses and brands, since branded revenue streams cannot be readily identified by scrutinising annual reports. Our valuation revolves round a master-branded entity that, in most cases, is a mono-branded business. Several companies that have multiple brands and holding groups of companies that own several branded businesses have, therefore, been excluded," a  spokesperson elaborated.

Brand Finance's brand-valuation methodology - using the intuitive 'relief from royalty' approach - was then applied to a shortlist of 17 brands, on the basis of financial and market information that is made available to the public. It is from this shortlist that Sri Lanka's 10 'most valuable brands' have emerged.

The inaugural edition of Sri Lanka's most valuable brands is published by LMD in a special stand-alone issue.

Snippets 

DPL's management staff in move to buy remaining RPC stake

Dipped Products Limited (DPL), the Hayleys Group's rubber glove manufacturing venture, last week informed the Colombo Stock Exchange that a group of management staff plans to acquire the remaining DPL shares held by Richard Pieris and Company Limited. This follows the divestiture by Richard Pieris of a tranche of 5.88 million DPL shares, representing 19.6%  of the capital of the company. These shares were purchased by Hayleys and its associates. In a letter to the CSE, Dipped Products announced that over 110 of the company's management staff are in the course of finalising an agreement between themselves and Aureos South Asia Fund 1 LLC to establish a 'special purpose vehicle' named DMH Capital Limited, to purchase 2,993,400 shares in the Company now owned by Richard Pieris & Company Limited, at a price of Rs 117/50 per share.

New C.O.O. at Masters DDB

Jerome de Silva, theatre personality, ad man and bonvivant, has joined Masters DDB as Chief Operations Officer. Managing Director, Mike Masilamani said, "Jerome worked at Masters Advertising almost 15 years ago as client servicing director and we are happy to have him back in overall charge of operations." Jerome began his advertising career at Grants BJK&E (now McCann Erickson) mainly handling the Air Lanka account on secondment to Bateys of Singapore.  His last stint was director operations and creative group head for Phoenix O & M. Prior to that he served as general manager/creative director at Minds FCB for over eight years. Stated Jerome, "It's great to be back having gathered a great deal of experience at top management level and creative and more than a bag full of styles and disciplines of international agencies." Masters Advertising is affiliated to DDB Needham of USA. DDB is USA's largest and the world's third largest advertising network. DDB was recently voted Global Agency Network of the Year by Advertising Age magazine and Global Agency of the Year by Adweek magazine.

OPEC fears push crude back above $43 a barrel

Crude oil future prices climbed back above $43 a barrel on Friday on fears that OPEC may cut production to stem a recent price drop. The rise in prices was also fueled by reports of attacks on the U.S. consulate in the Saudi city of Jeddah, ongoing production problems at Statoil's Snorre oilfield in the North Sea and a protest that shut down production on two oil platforms run by the Royal Dutch/Shell Group of Co's and ChevronTexaco Corp. in Nigeria's southern oil region. After rising as high as $43.60 a barrel, light crude for January delivery was up 36 cents to $42.90 in midday trading on the New York Mercantile Exchange. Oil prices plunged 14%  last week as data showed increasing U.S. supplies of crude and heating oil. Analysts said the markets are bracing for a possible production cut when OPEC, the production cartel that has been pumping out crude at a record 30 million barrels daily since September, met in Cairo on Friday.

Standard Trading among first to obtain HACCP Certification

Following the story published in last week's Business Section of The Sunday Leader, titled 'EU stipulates quality standards for Sri Lankan tea,' Standard Trading has informed us that the company was among the first to obtain the HACCP Certification back in October 2002. Standard Trading obtained the certification on October 24, 2002.

Workshop on'Effective Selling Skills'

Pransanna Perera, one of Sri Lanka's frontline trainers in sales will conduct another public workshop on Effective Selling Skills on December 15 2004, at the Tran Asia Hotel, Colombo. The workshop is facilitated by Future Wave Corporate Solutions (FWCS) and is targeted at sales executives, sales officers and all others engaged in the selling function.  This will be repeat program to the previous program that was held on November 05, 2004. Prasanna has conducted over 50 workshops in sales and marketing related areas, which includes both public seminars and seminars for private institutions.

Advertorial 

Old favourite sports a new look

Ceylon Cold Stores, the manufacture of Elephant House Ice Cream, a favourite amongst generations of ice cream fans, unveiled their new logo, launched three new ice cream flavours and exhibited their new packaging at a media briefing held recently at the Crescat lobby.

Despite increasing forays into the industry by both local competition as well as imported ice creams. Elephant House has an enviable market share of 65%.

"Elephant House ice cream was first manufactured in 1935 and since then we have never looked back," said Head, F & B Sector Manufacturing, John Keells Group, Jit Guneratne. "We have stood the test of time because we have been proactive, giving the customer value for money as well as new taste experience."

In fact in Male too despite multinational brands being available, Elephant House ice cream has remained the market leader.

Guneratne went on to say that in order to maintain and increase their product's market share, the single most important factor was to forecast where customer preferences lay and to be ahead of them. "The change of our logo is based on this feedback" said Guneratne, who added that the logo change was merely a part of their brand building exercise, conveying the dynamism and engaging qualities of the brand.

The recently launched Karuthakolmban and Mix Fruit Max ice cream have been an unprecedented success, far exceeding the company's sales targets.

The three new flavours, which have been developed after considerable research which was made in consultation with some of the world's largest flavour manufacturers, combined with in house expertise, are Coffee Grande, Cookie Cream and Toffee Caramel. "We are convinced that these new flavours too would fast become household favourites, increasing our total range to 13 flavours, as well as the Jumbo Jolly sticks, the Wonder Bar and the Pani Cadju cups" said Director Marketing CCS, Billy Walpola.

Walpola said these new flavours were aimed at a premium market and will be available in litre packs, priced at Rs. 200 each.

The new Elephant House Ice Cream will be available in brand new packs, which have been designed according to international standards. Known as 'In Mould', it is new European technology, and a first for not just Sri Lanka but South East Asian as well.

Hitherto 'In Mould' has not been manufactured in the region. "The new containers are rectangular in shape which make storage far more convenient for the consumer whilst giving more visibility to the product. The added advantage is that 'In Mould' labeling means that the label is embedded into the mould at the time of manufacture, thus preventing if from coming off due to dampness, etc," said Walpola.

Local plastic manufacture Phoenix Ventures is the manufacturer of the new packs for Elephant House ice creams.

UTE appointed as tier one distributor for Donaldson filters

United Tractor and Equipment Ltd., has been appointed the first tier distributor in Sri Lanka for Donaldson Engine aftermarket filtration products of USA.

Donaldson Company Inc., headquartered in Minnesota USA, is the leading worldwide provider of filtration solutions to original equipment manufacturers (OEMs). They also provide replacement filtration products and exhaust systems for a wide range of equipment used for power generation, construction, earth moving, transportation and agriculture.

Founded in 1915, Donaldson Company Inc., is technology driven and committed to satisfying customer needs for filtration solutions through innovative research and development.

Applying innovative technology, Donaldson products maximise engine performance and reduce maintenance costs for customers all over the world.

Donaldson also serves the industrial markets by providing dust, fume and mist filtration solutions, air intake filtration systems for gas turbines, compressor filtration, and special filtration for the electronic and aircraft industry.

Donaldson Company Inc., is a global company with annual sales of over 1.4 billion USD. The company has over 30 manufacturing facilities in 15 countries and over 10,000 employees working in its global manufacturing and sales offices. The company's global resources, diverse product mix, technological capabilities  and its customer care and support are able to consistently provide quality to its diverse customers.

All products manufactured by Donaldson and sold through their authorised distribution channels carry a comprehensive warranty, which is governed by their engine aftermarket warranty programme.

Incorporated in 1947, UTE has over 57 years experience in the importing and servicing of heavy machinery in Sri Lanka. Its association with Donaldson will therefore benefit customers as the two companies have generations of expertise and experience to offer. In addition to the Caterpillar franchise, UTE has over 50 other agencies with global partners who look for quality and dependability in the power, construction, environmental engineering and rental business.

The appointment of UTE as the tier one distributor for Donaldson in Sri Lanka, provides a tremendous benefit to users in terms of product quality and value added product support services.

Tourism Secretary concerned over food safety

Secretary, Ministry of Tourism, Dr.Ramanujam  voiced his concern over Sri Lanka's standards on 'Food Safety and Hygiene' when he addressed top hoteliers at a workshop on 'Food safety through HACCP methodology' at the BMICH recently. The programme was put together by the world's leader for 'out of home' detergents, JohnsonDiversey in collaboration with the Sri Lanka Standards Institute.

Dr.Ramanujam went on to say "We have to deliver the promise we have made at the World Travel Mart to the tour operators. When we say we are an attractive country it has to be hygienically safe so that they in turn will bring in the high spending tourists. The trend for the year has been very positive with a 21% growth in tourism and October demonstrating a +38% growth."  He went on to say " I am glad organisations like DIVERSEY are driving the country with SLSI expertise on quality because that's the need of hour for Sri Lanka."

The Country Head for Sri Lanka and Maldives, JohnsonDiversey said "In India we are working with the World Bank on a similar project and in Sri Lanka this is our social responsibility project." He quipped that a tourist who spends over US$200 a day is way different in lifestyle to a current tourist who spends US$68. That is the starting point in our learning.

"Once we understand this we must know that their immune system is also different. Hence if proper hygiene and sanitation procedures are not followed one single outbreak of food poisoning can destroy the confidence levels that the tour operators have that can in turn lead to Sri Lanka losing out. Rohantha Athukorala who heads the Maldives operations said  that Sri Lanka must attract the tourists that come to Maldives. "We manage one property in Maldives where the room rate per day is US$4950. Incidentally they are booked right through 2005, which demonstrates the demand by a leisure traveler" Athukorala said.

The "certification process on HACCP" was taken through by Dr. Lalith Seneweera, the certification director of SLSI. The documentation process of HACCP certification was presented by Assistant Director, Sri Lanka Standards Institute, S.L Ginege.

Top hotelier and GM of the exclusive Taj Exotica, Ranjan Stanislaus shared his leanings of "Balance Scorecard and running of a hotel for food safety" whilst the ex Shangri-La hotelier, Lakshman Perera who is the current head of the dynamic Colombo Plaza talked on the "Shangri-la Experience of HACCP and culture change required for HACCP success."   

JohnsonDiversey which is a Unilever/ SC Johnson detergent company provides not only detergents but also provides 'Hygiene and Sanitation' advice to hotels, restaurants, beverage plants and companies in the food and beverage industry. Athukorala said "Sri Lanka has become a key market for the company not because tourism is booming but because 43% of Sri Lankan household income is spent on food and beverage. Hence unless 'clean hygienic' food or drink is consumed be it in a restaurant, hospital or a hotel there can be many an outbreak of food poisoning like what we see in the Latin American countries that we operate in. An acid test is when we take the number of people who work in a kitchen operation and divide by the consumption of hand washing so we see that people washing hands ONLY once a day whilst on average we go to a toilet thrice a day."

STING Consultants launches & Brand

STING Consultants, a strategic marketing consultancy company, recently launched a subsidiary company which provides a fully integrated brand consulting service ,namely &Brand.

According to Director, &Brand , Ruchi Gunewardene, " Excluding the multinational companies operating in Sri Lanka, branding is a little understood concept. To many local companies branding is only about communication. It is a sad reflection, to see so many well recognised brands that are still so poorly branded. As a result they are not leveraging the true potential of their brands. Branding is about the entire business value chain and therefore it is about everything the brand has to do with the consumer."

Gunewardene went on to  say that having been involved in providing companies with strategic marketing solutions, it was a logical extension to provide branding solutions by linking strategic thinking to developing an expression of the brand. "The core of our proposition is understanding the context in which the brand currently operates and developing a coherent and relevant identity / personality which is then brought to life through a creative process".

Elaborating on some  of the assignments handled by them  Gunewardene said that during the course of their assignments they had been involved with various design agencies in creating brands. Examples of such work includes the  time the company used a Singapore based agency to develop the Brandix design.

Another successful brand which is being rolled out is the Healthguard pharmacy brand which was created through Blitz advertising. "As there is no such company providing the strategic thinking as well as the brand creation service, it was a unique opportunity for us to get into" said Gunewardene.  " Having created the brand we or the client would then work with advertising agencies to communicate and create awareness of the brand". Gunewardene claims this has worked well with both the Brandix as well as the Healthguard brands.

Director, &Brand, Eardley Perera, added  that what &Brand sought to provide  was a complete solution to branding which goes beyond design. "For consumer brands this would include the technical capability of packaging and printing solutions, and for brands which have interaction with customers, branding solutions within the retail environment".

For those clients who require a more advanced solution to their branding problems &Brand has partnered with a Singapore based company who can provide solutions to complex branding situations or who could be provide solutions to take brands into international markets.

"We do not expect a rush of clients for this highly specialised service" said Gunewardene. " Instead we see our role as having to first educate clients on the importance of branding and the power they can leverage through a focused branding exercise. The key challenge is to convince the decision makers in the boardroom that brands are valuable assets. And should therefore be treated as such. This is the perspective taken throughout the world and we should seriously pursue this in Sri Lanka."

In order to support this effort, &Brand has obtained the rights to circulate an Indian bi-monthly magazine The BrandReporter. This is currently being circulated to key business establishments free of charge.

Gunewardene stated that there would be significant events planned in the near future in order to raise awareness of brands, and the value brands could bring to businesses, so as to generate greater returns to the shareholder.

The board of  directors of &Brand constitute Ruchi Gunewardene, Eardley Perera and Michel Nugawela

New child insurance plan from Sri Lanka Insurance

Sri Lanka Insurance has introduced Mini Muthu, a special child insurance plan where both parents are covered under one policy. This product is introduced by the company after looking into the important role played by both parents in bringing up a child.

The new Mini Muthu plan of assurance guarantees a fund for the child at maturity. Even after the demise of a parent the fund will be available for the child. This plan provides a life cover for both parents thus making it a joint life plan. The fund for the child will be released within a four year period.

After the demise of one of the parents the surviving parent or the child will receive double the life cover immediately. If this unfortunate event is to take place the future premiums will be waived and the guaranteed fund for the child will be released when the policy completes the term.

Only a single premium will be charged to insure both parents and if one parent is not insurable (deceased, medically unfit, divorced, separated) or even if both parents are not around, the legal guardian can sign up for this plan on behalf of the child.

This plan of assurance provides greater flexibility:

Parents can choose a plan to suite their child's age. Parents who have children between one month and 15 years of age can benefit from this plan of assurance.

As an example; Parents can buy this plan for a six year term for a child aged two years and the child will receive the funds from age eight onwards.

The guaranteed fund for the child will be provided in four equal installments spreading through four years.

The child will receive 35% of the sum assured on each installment and the bonuses also will be added to the first payment. Therefore he/she is guaranteed to receive 140% of the sum assured and the bonus (35% x 4 pmts = 140% plus bonus).

On the demise of one of the parents during the benefit paying period the balance payment will be doubled thus making it a 70% payment of the sum assured.

Special covers for the child:

The child can be covered under

 Arogya hospital cash benefit

  Jeewaka critical illness cover

These are optional covers that can be taken at the inception of the policy. Even after a claim is made the surviving parent can continue the above additional benefits for the child, by paying the relevant premium.

The child can enjoy these benefits up to age 20 or the maturity of the policy whichever occurs first.

Royal award for Intervet

Intervet International BV Sri Lanka RO received the Holland Award for its 'outstanding achievement in the field of international agri/animal business in Sri Lanka' on November 29.

Chief Representative, Dr. R. C. Sikka was presented with the award by the Counsellor of Agriculture, Royal Netherlands Embassy in India, Arnold Parzer on behalf of  the Ministry of Agriculture, Nature, Food Quality, The Hauge, The Netherlands.

This occasion was attended by the Ambassador of the Royal Netherlands Embassy in Sri Lanka, Susan Blankhart Berkouwer.

Thirty-five of Intervet's leading customers/associates in Sri Lanka were present at this awards function.

The decision to create an Intervet establishment in Sri Lanka with close association with its distributor Brown & Company Ltd., was based on the objective to be involved with, and be committed to customers.

CIMA quality partner accreditation for ICBS

ICBS was awarded the 'CIMA Quality Partner' accreditation by the Chartered Institute of Management Accountants, UK (CIMA) last week, taking ICBS to a league of global business schools officially recommended by CIMA to students.

The accreditation was formally awarded to ICBS at a grand event held at the Galle Face Hotel, Colombo on December 6. Present at the occasion were Director (Education), CIMA, UK, Robert Jelly and President, CIMA Sri Lanka Division, Claude Perera.

Learning Through partnership (LTP) is recognition by CIMA UK, of the industry best practices adopted by the CIMA teaching colleges worldwide. The award was presented to ICBS after a thorough audit of the teaching methodology, coverage of syllabus and student involvement implemented at the school.

Commenting on the achievement, Chairman / CEO, ICBS, Ravi Mahendra told The Sunday Leader ICBS underwent a very strict audit process before it was awarded the 'CIMA Quality Partner' accreditation.

"It's not just a certificate, it's an acknowledgment of our commitment and dedication to quality. We at ICBS have continuously strived to improve the level of performance achieved by our students," he added.

Students at ICBS have an advantage over students at other schools due to the high emphasis on quality in terms of education and the high pass rates at ICBS, said Mahendra.

"At ICBS, we are also committed to personality and character development. We believe the students today will become business leaders in the future and inculcate values such as integrity and leadership," he explained.

ICBS organises industry visits for its students regularly, and invites CEOs, business leaders and motivational speakers to address the students as well. All this is organised free of charge. It also has a very active student society that has its own newspaper.

The school launched its latest brand, Super 16 plus recently. Super 16 plus enables students to complete their advanced level examinations while becoming a CIMA professional by the age of 18.

Super 16 plus is a flexible programme whereby students will be able to concurrently undertake CIMA while sitting for their A/L exams. The Super 16 plus programme will begin in January.

"This is a special programme, which offers students the opportunity to use the time they have just after their O/Ls to get a diploma certificate that is a qualification on its own. With Super 16 plus we are offering them the CIMA foundation, the CIMA Certificate in Business Accounting, which they can complete before their A/L classes begin. They can then decide whether to continue with CIMA along with their A/Ls," said Mahendra.

"For students who decide to do both CIMA and A/Ls at the same time, ICBS has developed a system where they can do both without complications. The knowledge gained by doing CIMA, which is a very advanced programme, will make the A/Ls much easier. We will have a special focus on this batch since it will consist of young students," he further said.

ICBS also offers a combined BBA and CIMA degree programme where students have the opportunity of obtaining a highly recognised professional qualification and an internationally recognised bachelor's degree from Warnborough University, through a single course plan.

ICBS has a history of 17 years. It underwent a name change in 2002 under the present management. The primary focus at ICBS is on CIMA, CIM, BBA degree and MBA programmes

An institution that is committed to academic and professional excellence, ICBS has been offering higher education for several years and is one of the main providers of academic and professional programmes in Sri Lanka.

The school's motto is 'Your Career Is Our Concern,' and the CIMA quality partnership is yet another step in its quest for excellence.

Workshop on 'Goal setting and performance management'

Managing employee performance is a critical element in ensuring organisational success. In companies where an effective performance management system is in place, employees work towards clearly defined goals and receive performance feedback on an ongoing basis. The best systems are directly linked to the organisation's strategic business plans and highlight the contribution each employee makes towards these. Everyone knows his or her role in the show!

Performance management is the key organisational variable. No other human resources system has as much impact on the success of an organisation. For any company to be successful in the long term, it must engender a high performance culture.

Getting your performance measurement right is important. If you can do that, the data you generate will tell you where you are. It will also tell you - when compared to standards or records - how you are doing. All of this gives you feedback. This feedback will tell you whether you are - or aren't.

But that's not all that performance measurement will give you. It will also provide the motivation that will spur you on to improve your performance. It will provide the incentive for you to 'do it better'.

In pursuit of this organisational need, McQuire Rens & Jones (Pvt) Ltd. has organised a workshop to be held on  January 28 -29, 2005 at Galadari Hotel. The workshop will be facilitated by CEO and MD, Rens Group of Companies, Nalin Jayasuriya. Jayasuriya is a highly acclaimed professional with over two decades of senior management experience and has headed both local and multinational organisations. He has provided guidance and training to several managers of top organisations in Sri Lanka as well as in Philippines, Malaysia, Indonesia, Thailand, Kenya, Dubai, India and Singapore. He was the former Regional HR Consultant and Head of Special Projects for SmithKline Beecham International, Southeast Asia and India.   

The panel member for this workshop will be  Head of Human Resources, SriLankan Airlines, Sunil Dissanayake.

This workshop will help participants ensure the method of measuring the 'right' things at the 'right' time and in the 'right' place. These measures must also - since they are going to be with you in the long run - be tuned into the 'game plan' of your organisation or business unit.

Delmege now in Akuressa

Delmege General Equipment (DGE) which has embarked on an islandwide expansion programme opened its fifth showroom in Akuressa in the Matara District recently.

" We decided to open a showroom in this area due to the fact that it borders the Galle and Matara Districts, both of which have the highest demand for power tools in the southern region due to the fact that this region is predominantly one where people's livelihood comes from woodwork and carpentry" said Managing Director Delmege Forsyth and Co. Ltd., Kosala Dissanayake speaking at the opening of the new showroom.

The main source of income for these districts comes from tea, cinnamon and woodwork , with woodwork being carried out as a cottage industry in Akuressa. "As a result there is a high demand for power tools in this area especially the Dewalt brand for which DGE are the sole agents" said Dissanayake .

The Akuressa showroom , in addition to the Black & Decker , Dewalt , Keyang , and Dolmar range of products and power tools , will also have on sale the Nikai range of products which will enable the company to enter into the consumer electronics market . The Nikai range will include DVDs , VCDs , Washing Machines and Colour TVs , while the Deltronic brand will expand its product range to include fans - both ceiling as well as pedestal, as well as gas cookers , in addition to its existing range of electric ovens.

"The Dolmar chain saws in particular are in high demand in this area" said Dissanayake who added that with DGE's entry into the white goods market , domestic electronic appliances will now be accessible at competitive prices to a wider spectrum of the general public .

DGE's General Manager, Jaminda Mendis stressed the fact that the service aspect was one that was key to DGE's operations . "Other brands in the power tool category have failed to establish market share in the outskirts due to the fact that they ignored the service aspect , however at DGE we have a fully operational Service Centre at all our showrooms which is manned by trained staff who can immediately attend to the customers requirements." Mendis said that in addition to the Service Centre they would also appoint a Service Agent so that customers would be assured of a constant service back up .

Currently DGE has a total of 250 dealers islandwide who even cover the north and east

Super offer at Long Feng

A fantastic new offer is now taking place within Long Feng at Trans Asia every Sunday evening.

A wonderful buffet featuring an array of authentic Chinese dishes, is presented to you in an original display. You will find Steamed Garouper in soy sauce, fried crab in yellow chilli, rice dumpling with lotus seed paste, live action stations, al fresco dining and not to mention almond souffle.

During this gastronomic Asian feast, the restaurant is transformed into an intimate setting, with beautiful decorations brought in especially for the occasion.

For just Rs. 1200++ you will get a feast that is excellent value for money.

Since Trans Asia started this innovative idea, Long Feng has become a popular hang out for those Sunday evening get togethers.

Make sure you book seats or you may have to join the queue.

Most glamourous event for ninth year

Bridal, Health, Beauty & Gift Fair 2005 is presented for the ninth successful year by Sri Lanka Exhibition & Convention Centre (SLECC), the only exclusively accredited Professional Exhibition Organiser (PEO), in association with Sri Lanka National Cosmetology Association (SLANCA).

As proven in previous years, Health, Beauty & Gift Fair 2005 will create a highly conducive platform for premium product and service providers such as bridal dressers, salons, beauty therapists, designers, cake decorators, caterers, gift items, beauty salon products, health products, cosmetics, printers, jewellers, photographers, hotels, housing, insurance etc. This event gathers all industry pioneers and highly reputed product/service suppliers under one roof and will comprise of over 125 stalls facilitating the exhibitors the opportunity to demonstrate to a captive audience their specific fields of expertise, e.g. nail art, body tattoos, facials, hair care, make-up techniques etc.

Daily fashion shows and demonstrations by SLANCA will be the highlight of this glamorous event. Competitions for cakes, photography, bridal wear, hairstyle, flora dcor and accessories will feature innovative creations of a significant number of participants, who will be entitled to win an array of attractive gifts, trophies and recognition in their respective industry. A Grand Championship Award awaits the most outstanding competitor.

Suntel wins 'Futuristic Stall' award

By Pelham Juriansz 

The Suntel stall at the ASOSIC ICT Exhibition and Seminar recently won the most 'Futuristic Stall' award. The stall in general focused on user applications and successfully demonstrated business and domestic applications, which can be deployed immediately.

Some of Suntel's partners were also provided space within the Suntel BMICH stall to demonstrate their solutions and applications. Suntel's Access Technology partner AirSpan Communications UK displayed the next generation solution Wi-MAX and Midas Communications, India demonstrated eGovernance applications including Telemedicine and Nuro- synoptics. ITABS Suntel's software solutions partner demonstrated cost effective IP Telephony solutions and other business applications.  

Both BMICH and SLECC exhibition halls were made Wi-Fi (wLAN) hotspots enabling delegates to access internet through their PDAs or laptop computers.

Campaign Manager - is a web interface that allows customers to broadcast a message to a large number of recipients with just a click of a button. This service can be effectively used by marketing companies etc.

Fixed Lines SMS and Corporate SMS: Suntel launched Fixed Line SMS for the first time in Sri Lanka where any phone line with CLI can subscribe for this service. Parallel to this the Corporate SMS service was also launched where business could use this service in a cost effective and efficient manner to send text messages to their customers, own employees and suppliers.

IP telephony - Suntel demonstrated IP telephony applications including soft phone applications solutions via a Wi-Fi network

FaxIT (Fax Server Solution) - Fax server solution was yet another new services launched by Suntel where business could effectively move toward a paperless office environment. This service would yet again enable businesses to reduce costs and at the same time improve efficiency and effectiveness.

Video Conferencing - Video conferencing over ISDN and IP were demonstrated in the stall. Suntel also established a v-con session during the inauguration time where a live feed between BMICH and SLECC enables delegates to experience both simultaneous opening.

SOHO (small office/home office) applications were demonstrated in this section of the stall. Video on Demand (VoD) and Music on Demand (MoD), Wireless web surveillance systems and many more futuristic solutions were demonstrated in this section.

IP VPN applications were demonstrated in this section

Different wireless access systems used by Suntel, a live "Call Manager" set up were demonstrated in this section. A video conferencing session with the Suntel OMC (Operations and Maintenance Centre) was also established from time to time from the BMICH and Suntel head office.

Suntel successfully conducted over 15 training/briefing sessions to corporate customers in the stall with the intention of updating them with the latest technology. This was the only stall that conducted this type of event during the exhibition, which was held inside the dome.

Abans to market Electrolux  products in Sri Lanka

The Abans Group entered into a partnership with Electrolux for the distribution of the best of its product range recently. Electrolux is the world's largest producer of powered appliances for kitchen, cleaning and outdoor use, such as refrigerators, washing machines, cookers, vacuum cleaners, chain saws, lawn mowers and garden tractors.

Every year customers in more than 150 countries buy more than 55 million Electrolux Group products for both consumer and professional use. The Electrolux Group includes well-known appliance brands such as AEG, Electrolux, Zanussi, Frigidaire, Eureka and Husqvama.

Abans, the trusted agent for many branded products, through this partnership will make available to Sri Lankans global expertise in home appliances that is bound to make life easier. Featured here are some of the Electrolux products that will be available at Abans.

Developing solutions to meet consumer needs has led Electrolux to developing Ultra Silencer, a vacuum cleaner, which combines cleaning with a very low noise level. This cleverly quiet vacuum cleaner is ideal for busy people who want to vacuum at anti-social times or for those who do not want to disturb the rest of the household. It also cleans the air as well as the floor through its filtration system.

To keep a healthier home, Electrolux has recently introduced a new upgraded version of its Oxygen vacuum cleaner, which includes a superior cleaning performance system with a special filter designed to reduce air pollution by vacuuming one's home. The new Oxygen is said to filtrate more than 99.95% of all pollens, spores, household dust, mite and cat allergens.

Electrolux is currently launching a new range of funky chest freezers. The series include five different models where all except one are on wheels for easy moving. All models offer ergonomic designs and safety measures and feature a dual function system, which means they can be used either as freezers or as refrigerators.

The Electrolux Visao sets new standards in microwave design, with a sophisticated look that differentiates itself from any conventional 3D design currently on the market. A narrowed control panel, integral feet, tinted window without frame, clean graphics and hidden control elements makes this microwave look just as streamlined as any modern TV. Visao is consumer friendly, with a 'pull to open' door handle and easy control access featuring international symbols.

Electrolux India has recently introduced the world's first talking washing machine known as the Washy Talky. This machine actually tells the user how to get the perfect wash and makes it all child's play. The appliance will even tell the user to 'Drop detergent, close lid and relax!' should there be specific programme errors during the wash process, it will alert the user and suggest further action vocally.

Banking and Finance 

Banks have a special responsibility towards society

"As a bank, providers of our capital are not only the shareholders, but far more importantly the depositors. Those depositors' contributions far exceed the capital provided by the shareholders. Therefore, the banks have a special responsibility towards the community," said Chairman, Commercial Bank and United Motors, Mahendra Amarasuriya in an interview with Dinesh Weerakkody. Following are excerpts; 

Q: Commercial Bank set up a fund recently to showcase Corporate Social Responsibility. The concept of social responsibility has been around for a while. Why is it that Commercial Bank took so long to set up this fund?

A: Commercial Bank has been involved over a long period in many projects to fulfill its social responsibilities. However, these projects have been in response to specific requests made by community groups and more or less ad hoc in nature. It was felt that a bank such as ours, operating in over 130 locations in Sri Lanka, has an obligation to implement a more organised, sustainable effort in fulfilling our responsibility to the community, the citizens of which are our valued customers.

The core business of the bank is to be involved in financial banking services and our staff has been specially trained for this purpose. They are target oriented and work as a team to contribute towards the development of the bank in fulfilling its vision and mission.

 As such, they have hardly any time to give thought to fulfilling the bank's obligation in serving the community. It was therefore felt that there was  a necessity to create a special vehicle for a concentrated effort for involvement in a variety of community related and sustainable projects, in order to focus the attention of the management and staff of the bank towards their obligation to fulfill our social responsibility.

It was for this purpose that we created the Commercial Bank Social Responsibility Trust, and already we have received requests for assistance channelled through the branches. Assistance will be granted mainly through the branches, so that they can monitor closely our efforts in this direction and ensure the sustainability of these interventions.

Q: What has been the bank's contribution to develop and nurture the underprivileged people in our society?

A: It is our view that raising the living standards of the underprivileged people and alleviating poverty is mainly the responsibility of the government ruling the country. To achieve this government levies taxes and banks are being heavily taxed, our bank being probably among the largest tax payers in the country.

By responding to requests by deserving individuals and the community at large, we have been marginally involved in improving the quality of life of our people. Since that effort was insignificant, we launched the new trust to focus our attention on social development activities through the Commercial Bank Corporate Social Responsibility Trust.

Q: Private sector firms have generally been solely responsible to their providers of capital. What is the rationale for your management to look beyond the bottom line?

A: It has been the traditional practice for private sector institutions to ensure that their shareholders get an acceptable return on their investment and to increase the shareholder value. As such, our main concern in undoubtedly enhancing the shareholder value. However, as a bank, providers of our capital are not only the shareholders, but far more importantly the depositors. Those depositors' contributions far exceed the capital provided by the shareholders. Therefore, the banks have a special responsibility towards the community.

On the other hand, all governments in recent times, have been unsuccessful in reducing the poverty in the country substantially, with almost 45% of the population living below the poverty line of US$ 2 per day. Due to the failure of politicians to deliver on their promises, considerable resentment is building up among the poorer classes against the private sector and upper classes in our society.

If this trend continues, it is very likely that Sri Lanka will be faced with another insurrection as the difference between the haves and have nots have widened in the last three to four years. The board of directors, therefore, on my recommendation, decided that we should look beyond the bottom line and in addition focus our attention on the basis of the triple bottom line i.e. Profitability, Social Responsibility and Environmental Sustainability, which is becoming the norm in developed countries.

Q: The private sector more than ever needs to demonstrate a social conscience with the greatest possible vigour and in order to prevent antagonism being built up against the private sector by the various publics. What role can JBIZ play to develop this social conscience?

A: The first part of your question has been already answered. Regarding the JBIZ's role, unfortunately the role is limited as JBIZ is an umbrella organisation of many chambers created to make representations to the government in office on national issues related to the business sector. Since poverty alleviation is considered a main issue, JBIZ can perhaps pressurise the government to be more genuinely concerned with the needs of the almost half of the population which is living in poverty.

Q: On Corporate Social Responsibility, can the private sector co-habit with the government?

A: My view is, it certainly can, and must cooperate with the government. Any government in any country has the major responsibility in looking after its citizens. The private sector can assist in this process by sharing some of the burden in fulfilling the social responsibility of the government.

Q: On the other hand, does our private sector have the clout and the capacity to influence decision making in government?

A: Unfortunately the private sector in Sri Lanka is not a united body. Very often one finds that agendas of individuals in the private sector are more related to fulfilling personal ambitions and satisfying individual needs of their companies. You will recall that though JBIZ attempted to put up a united front in the recent past, some leading lights of the organised private sector did not even participate in some of the JBIZ's initiatives.

Furthermore, the culture of the country and its business sector has been that people who make personal contributions to political parties (many of whom make contributions to both main parties and even some of the minor parties) have a much bigger clout than the organised chambers or JBIZ, as they have easy access to those in power, who are obliged to return the favours of those who have contributed immensely to their respective campaigns.

Q: Finally, what role do you wish the government to play in bringing about private - public partnership to grow the economy?

A: A very popular but hackneyed slogan in recent times has been 'the private sector being the engine of growth of the economy.' Unfortunately, this engine has not been given the impetus to ensure the type of growth that we require to solve the serious problems of the country, one of which being unemployment. If the country is to go forward, we have to achieve a sustainable GDP growth of 8% to 10% at least over a 10 year period and perhaps over the next two to three decades.

This type of sustainable growth can only be achieved by medium and long term planning with set targets and goals agreed upon by both parties, which have alternately ruled this country. However, it is apparent, though both parties espouse an open economy and similar policies, the implementation of such an economic strategy differs markedly.  Sadly, no government in recent times has been able to achieve important strategic goals like providing reasonably priced power to the domestic consumer and industry.

Although it is apparent that without embarking on a coal power project, it would not be possible to generate power at  around international market rates, the case of Norochcholai is a sad example. For almost a decade, the rulers in power have been debating and procrastinating on the decision to go ahead with Norochcholai. Even after a decision is made, it will take almost seven years to commence power generation. Since the feasibility study has been completed, at a substantial cost by the Japanese government, Norochcholai is the  best bet. If it is not acceptable, the government should expeditiously look for a suitable alternate site and proceed without continuing to debate ad nauseam on Norochcholai. The infrastructure development in the last decade or two has been painfully slow.

There is no agreed proposal even for a highway from the international airport to the capital city. The southern highway is being delayed due to a variety of reasons including corruption. Without the development of infrastructure, specially the roads for which the government has a responsibility, the high growth levels required cannot be achieved. As the proposed road  development programme will take another decade at least to be completed, it is surprising that the government does not utilise the domestic airports of which we have many located in strategic areas,  to be used for internal air transport specially to attract up market tourists and thereby drive our tourism industry dramatically.

Those are only two of the numerous major problems that have to be solved in order to generate high economic growth. Without proper macro planning, on a five to 10 years forward economic plan formulated with the assistance of the private sector, it will not be possible to achieve the economic growth that will ensure sustainable development to be enjoyed by all sectors of the populace.

It should also be appreciated that while promoting top down growth, it is also necessary to have viable strategies for bottom up growth.  In order to support around 45% of the people, who are living under the poverty line, poverty alleviation programmes like Samurdhi have to be re-organised,  re-focussed and targeted and even implemented through private sector support whereby the private sector can also get directly involved in fullfilling  its Corporate Social Responsibility, by driving such programmes and closely monitoring their implementation.

HNB credit cards record highest usage

Presently playing a dominant role in the market in terms of usage, recording the highest usage growth per card for the year 2004, Hatton National Bank (HNB) credit cards assures loyalty benefits, security and comfort of payment.

HNB offers convenience and a choice of exclusive credit cards to suit any requirement or lifestyle. Customers will also enjoy attractive benefits, such as holiday packages, discount facilities and loyalty programmes.

Speaking to The Sunday Leader, on why anyone should choose a HNB card over any other card, Asst. General Manager Card Centre, HNB, P. Sridharan stated, "The card is backed by the strength of the bank. It has a wide network of 144 customer service centers where card payments can be made. Cardholders are entitled to free personal accident insurance cover for Classic cards at Rs. 50,000 and for Gold at Rs. 100,000.

"This applies in case of accidental death or permanent disability owing to an accident. Also, free travel insurance is made available when you purchase air tickets using your HNB credit card. The cards are personalised. Transactions are secure and safeguarded through the SMS alert system. Further, the cardholders are entitled to benefits through the loyalty scheme. In addition to this, the bank gives special discounts at various hotels, restaurants and merchant outlets islandwide and discounted healthcare schemes from Ceylinco Swift Care (Pvt) Ltd."

According to Sridharan, the statistics over the past two years have revealed that the HNB card growth has been phenomenal and rated among the best. "The reason for this is the cards which are issued by HNB are quite personalised to the customers' needs," pointed out Sridharan, adding, "We were the first bank to come out with picture cards where cardholders are allowed to carry a picture of their choice on the credit card and also among the first banks to insert a photo of the cardholder for additional security purposes."

The bank was also among the first to introduce the SMS Alert system. Speaking to The Sunday Leader, Manager, Acquiring and Risk Management, Card Centre, HNB, Zeyan Hameed stated, "This notification prevents the misuse of the card number through skimming and other methods. Once an unauthorised payment is detected, the card is blocked and a new one is issued. We also prompt the available balance after the transaction, which makes it more convenient for the user."

Sridharan observed that, "All these features along with very significant promotions held during the year, contributed to the HNB credit card being regarded as the preferred card right along the year 2004." The bank also issues supplementary cards at no additional cost.

Following the introduction of the loyalty programme, which is a reward system where cardholders earn points on using the card, the usage of cards has increasedat a phenomenal rate.

On earning 300 loyalty points, a cardholder qualifies for a quarterly draw. A final grand draw is held at the end of the year. "What is significant about this system is that there are no losers in this scheme, even if you don't win, you can redeem the points in rupees to your account's credit," said Sridharan.  It was also stated that a cardholderis eligible for the 'Royalty Draw', evenif the cardholder has redeemedpoints.

Another service that the bank hopes to introduce early next year is the CC online, where details and records of cardholders will be made available on the internet along with transactions for the past 12 months. Cardholders will be able to access this information online at any time.

Under the loyalty programme of 2005, the bank will be shifting its focus to the rural sector. Commenting on this, Sridharan stated, "We have already initiated a few projects with the farming communities in the areas of Welimada, Nuwara Eliya and Trincomalee, along with our network of merchants, for the purchase of fertiliser and farming equipment. We will further identify select community development projects to introduce the card culture, primarily to uplift their standard of living.

In a nutshell, HNB provides convenience, comfort, security and value additions to the cardholders, in addition to what a standard MasterCard or Visa card offers and HNB strives to be excellent by coupling services with technology, along with the pace of technological advancement.

HSBC sets the season ablaze

HSBC is celebrating Christmas this year with the innovative Light Up Your Day campaign that will give HSBC's credit cardholders chances to win exciting prizes and the opportunity to donate to charity. These offers are available exclusively for HSBC cardholders especially during this festive season.

As part of the seasonal festivities, each time an HSBC credit card is used, four lucky credit cardholders have the opportunity to win Rs 50,000 each, everyday from December 2 to December 31. Four million rupees will be given away during the season to 20 people. Winners names will be announced daily over the radio.

Customers are also entitled to  a delicious cake during the time of revelry by redeeming just 1000 Rewards points for a Chocolate Dream Cake from Cravings. The cake is worth 3000 Rewards Points but HSBC, as a goodwill gesture during Christmas, will take care of the balance 2000 points. That is not all. HSBC will donate Rs.100 for every cake order to a needy child at the Cancer Hospital in Maharagama.

Manager Card Centre, Sarit Wijekoon says that the 0% Interest Instalment Plan gets even better this year. Customers can buy whatever they want in December and be billed in February as HSBC is giving two months extra interest free credit. There are more than 19 partner outlets covering a range of products and services islandwide. And one can have the option of taking the 3, 6, 9 or 12 month plan to suit one's convenience.  HSBC is making life easier by allowing the customers to pay their Christmas bills so that they have more money to spend. "So shop to your heart's content!" is what Wijekoon had to say.

With all the benefits bestowed on the HSBC credit cardholder, HSBC is inviting its customers to buy an HSBC candle for just Rs.50 at selected Food City outlets and all the proceeds from this project will be donated to children of the Cancer Hospital, Maharagama.

PLC - a leader in leasing

People's Merchant Bank Ltd. (PMBL) structured and placed lease backed trust certificates to the value of Rs. 250 mn on behalf of People's Leasing Company Ltd. (PLC). The entire issue was taken up by Commercial Bank of Ceylon Ltd., whilst Deutsche Bank AG acted as the trustee to the issue.

The unique feature of this debt issue was that, the notes with tenures falling within the first two years carried a fixed rate of interest, whilst a variable rate (AWPLR plus) was applicable for the balance two years. In a scenario when investors are shy to lock in on the long term, this four year instrument could be viewed as a welcome change.

These trust certificates are secured by a quality portfolio of leases and the monies raised will be utilised to further augment PLC's fund base and to pursue its aggressive growth strategy. This is the third issue of lease backed trust certificates arranged by PMBL for PLC, having successfully completed two similar issues to the value of Rs. 200 mn and 150 mn, previously. During 2004, PLC also issued the first ever rated (SL A rating) lease backed trust certificates in Sri Lanka, to the value of Rs. 500 mn.

Through its eight year journey, PLC has evolved to be the leader in leasing for the third consecutive year, enhancing its profitability and expanding its branch network. PLC operates 15 branches islandwide and around 75% of its lease portfolio consists of facilities granted to passenger/commercial vehicles. PLC is a member of the Leasing Association of Sri Lanka (LASL) and a fully owned subsidiary of People's Bank.

PMB has featured prominently in local debt market transactions, having structured and placed several securitisations, debenture issues and loan syndications.

DFCC Bank driving its branches towards excellence

One of the leading development banks in the country, DFCC Bank is further improving its standards by the continuous monitoring of its branches' performance and driving them towards excellence.

Upon meeting all criteria for measuring performance, the DFCC Bank branch in Badulla was awarded as the best performing branch for the financial year 2003/2004. Speaking to The Sunday Leader, Branch Manager, DFCC Bank - Badulla, Harsha Jayathilaka attributed the success of the bank to the team effort and commitment of the bank's staff in implementing their expansion programme.

"We are currently into our expansion plan, designed according to the strategy we adopted two years ago. By implementing this approach based on a team effort, we were able to obtain the recognition as the best performing branch for the financial year 2003/2004," stated Jayathilaka.

The branch, which opened in 1997, covers a large geographical area, which includes the Uva Province, Ampara District and Nuwara Eliya. Around 32% of the population of the Uva Province remains below the poverty line.

"Unlike in Colombo and its suburbs, access to credit in these areas are limited and restricted. We took advantage of this situation and as part of our expansion programme concentrated on increasing our credit services. The bank primarily concentrated on the reduction of the delivery time of loans and other credit," said Jayathilaka.

Through this, the bank was able to issue credit to its customers on time, to suit their convenience and with minimum interruption to their plan of work.

Supporting the bank's performance, Jayathilaka stated, "Following the expansion programme, the total approvals for credit totaled Rs. 717 million and the credit base increased by 162% compared to the last financial year. Speaking about the quality of the portfolio, "we have brought down the amount of non-performing credit from 11% last year to 7% this year."

At the moment, the bank mainly supports the small and medium level industries in the area. "We have around 850 such clients and provide them with financial assistance for the purchase of machinery and motor vehicles at competitive interest rates," said Jayathilaka.

Backed by a multi skilled and competent team of professionals, Jayathilaka was confident that DFCC Bank Badulla branch was well on its way to recording higher performance levels.

The bank in a joint effort with the Matara branch, was also awarded for best deposits mobilisation in the area.

Further, the bank is involved in many community development projects in the area, one of them is where the bank donated computer systems to two rural schools in the Moneragala area and another consultancy project done in association with the clinical society of the Badulla General Hospital.

Seylan on wheels

In its endeavour to reach out to remote villages in the Anuradhapura District, Seylan Bank recently deployed five computerised mobile banking units controlled by the Anuradhapura Branch.

This is the first time in Sri Lanka that such flexible banking arrangements using mobile units have been deployed under the purview of one branch.

The five areas covered under this first stage are Thanthirimale, Padaviya, Thambuthegama, Rambewa and Galen Bindunuwewa in Anuradhapura District.

These five computerised mobile banking vehicles would provide the necessary banking facilities to the villages from 10 a.m. to 1 p.m. on week days.

Director/General Manager/ Chief Executive, Seylan Bank, Ajita Pasqual launched the first phase from Seylan Bank's Anuradhapura Branch.

Pictured above are the mobile banking units which are ready to take-off to serve the people of the Anuradhapura District.

ADB loan to boost secondary education system

ADB has approved a US$ 35 million loan to further improve quality and relevance of the secondary education system in Sri Lanka. The new project will upgrade around 1,100 1AB and 1C schools not supported under ADB's ongoing Secondary Education Modernization Project (SEMP 1) and other earlier ADB funded projects.

The project has two main objectives: 1) support the government's strategy to improve the quality, equity, and management efficiency of secondary education and make it more responsive to labour market requirements, and 2) increase equity of access to quality education and promoting education for social cohesion.

Despite positive achievements in basic education, low investment in education results in disparities in educational quality. The pass rates at GCE (OL) and (AL) examinations have been low. Only 40% of ordinary level students qualify for advanced levels, 50% fail in mathematics and 70% fail in English. Regional disparities in the pass rates are also evident.

About 140, 000 school leavers enter the labour market every year and a large number are unemployed, indicating the need to improve the role of secondary schools in preparing students for work. In fact, 18% of those with GCE advanced level qualifications are unemployed because of the mismatch between the conventional education system and labour market requirements.

"The project will upgrade target schools that do not meet an acceptable standard in terms of physical facilities, teaching and learning resources, teachers' skills and school management. This will reduce disparities across regions, gender, and ethnicity and work towards the goal of ensuring that every school is capable of successfully teaching the required subjects, increasing the percentage of students that pass GCE (OL) and GCE (AL) examinations in future" said ADB Country Director Alessandro Pio.

Aside from basic rehabilitation of existing buildings and provision of equipment and furniture, the project will modernise the curriculum and teaching methodologies by provision of science laboratories, computer rooms, multimedia units and libraries.

The project will also promote school based management and a pilot project will be conducted to improve information technology skills in rural areas. It will continue to support the objective of helping students in rural areas and conflict affected areas by giving stipends for about 12,000 students over a period of four years and incentives for the teachers to attract rural schools.

Special attention will be given to assisting the north and east region and the district of Nuwara Eliya with recruiting and deploying Tamil speaking teachers in subjects such science and mathematics, English and information technology.

To improve the capacity of education officials at supervising and monitoring education activities, the project will provide training and consulting services to further improve the skills and competencies of provincial and zonal officials.

To make the education system more efficient and effective, the project will support government policies and reforms such as decentralising education management, developing sustainable financing mechanisms for school operations, improving and computerising the national testing and evaluation process and modernising the curriculum.

The project will strengthen the capacity of the Ministry of Education in coordinating with provincial and zonal authorities and regular monitoring and evaluation of project activities and the education management information system begun under the earlier project. The total project cost is estimated at $47 million, of which $ 10.3 million will come from the government and $1.7 million from the beneficiaries.  ADB' loan which will meet 74.4% of the total cost, comes from its concessionary Asian Development Fund and carries a 32-year term, including a grace period of eight years.

The Ministry of Education is the executing agency for the project, which is due for completion in December 2009.

Sampath rights issue

IN over 15 years of service to the nation, Sampath Bank has remained the pioneers in technologically advanced innovative banking products and services, constantly utilising cutting-edge technology in line with global innovations to present world class banking services to Sri Lanka.

In a bid to further strengthen its capital base, the bank is coming out with a one to three rights issue. Through this rights issue an additional 17 million shares will be issued to the existing shareholders at Rs. 60 each, which is much lower than its current market value. The rights issue will enhance the bank's capital adequacy ratio for Tier 1 to over 11% and Tier 2 to 14%, which are well above the ratios stipulated by the Central Bank of Sri Lanka.

Speaking to The Sunday Leader, Managing Director/CEO, Sampath Bank, Anil Amarasuriya stated, "We hope to receive Rs. 1 billion as proceeds from this rights issue. The main aim of this rights issue is to strengthen our capital base. This capital backing will be used to support the bank's branch expansion programme."

In addition to this, Amarasuriya pointed out, "In keeping with our vision to be a growing force in Sri Lankan financial services, we have taken a decision to be more aggressive in the financial sector both locally and internationally. By using the funds generated through this rights issue, we hope to generate an adequate return by increasing our earnings per share by expanding into new ventures."

Sampath Bank, which was recently awarded a SL A+ rating by Fitch Ratings, is the acknowledged leader of IT with so many firsts in innovative banking to its credit. "Our IT investment will see us through the next three years and we are ready to acquire any other developments that take place in the international arena," stated a confident Amarasuriya, adding, "Our focus is mainly on IT.  Accordingly, whatever product we design is considered as a value addition.  All software packages are designed in-house to bring convenience to the customer by enabling access to the bank through various delivery channels, such as the telephone, the internet or the ATM."

The Sampath Easy Banking Centres enable customers to benefit from banking services at their convenience. Open 24 hours a day, these concept centres are unique self-service units that allow customers to complete phone-banking transactions, pass book updating, balance checking and even pay utility and amenity bills. Where telephone and internet infrastructure does not extend to personal domains, these centres enable customers to conduct their banking operations from the convenience of a simple click of a button, any time of day or night.

Addressing the need for growing demand of quicker and more convenient payment systems, www.payeasy.lk is another value addition to the bank's products. This facility known as Sampath PayEasy, is a one stop internet portal for the payment of most utility bills which includes telephone, hospital, insurance, internet and many other payments. The service is open to customers of any bank, making the exercise of monthly visits to billing centres a thing of the past. 

While the facility is accessible to anyone with internet access, for those without such access, the Sampath Easy Banking Centres provide the facility on a 24-hour basis.  In addition, Mastercard or Visa cardholders of any bank can settle their bills through Sampath PayEasy while the headquarters branch now allows Maestro Debit cardholders to use the same service. 

Being the pioneer in the ATM revolution in Sri Lanka, introducing multi point network ATMs around the island over 15 years ago, the bank currently has 93 real time online operative ATMs. "We are looking at expanding our ATM network. We recently signed a Memorandum of Understanding with the Bank of Ceylon to link the ATMs of the two banks.  This will increase the number of ATMs to 193.  By 2006, the number is expected to exceed 250.  At the moment, Sampath Bank is both on the Cirrus and Visa networks," said Amarasuriya.

"Being the first to introduce the VISA Gold card to Sri Lanka we went another step further and introduced the Visa Platinum credit card. We are also proud to be the official credit card provider for Sri Lanka Cricket, spearheading a partnership in sport and banking," stated Amarasuriya.

In order to attract and retain the best professionals in the land, the bank invests considerably in the training and development of its employees. "Towards this, the bank introduced e-learning, a distance learning concept across all our branches, a concept developed in-house, which allows our team to gain expertise through interactive training sessions," explained Amarasuriya.

All 70 branches of Sampath Bank are linked online enabling this process. The staff's performance is constantly monitored by the balance scorecard approach. 

The bank has taken many initiatives toward the conservation and protection of the environment and involves itself in many community development projects in the rural areas. Speaking about some of these projects, Amarasuriya stated, "We bear the cost of teaching English in 20 remote schools.  In an effort to impart IT skills, schoolchildren in the rural areas are invited to visit our branches during weekends and use our computer systems, under the bank's supervision."

25 years on, Citibank SL set for rapid growth

Citibank Sri Lanka celebrated its 25th anniversary this month. The bank commenced operations in Sri Lanka in December 1979.

Citigroup is the world's largest financial institution and operates in over 100 countries. Also one of the world's oldest banks, Citibank has been in existence since 1812.

"Being the bank's silver anniversary, it's a milestone," Country Head and Chief Executive Officer (Sri Lanka), Citigroup, Kapila Jayawardena told The Sunday Leader.

"We are very happy we managed to get Senior Vice Chairman, Citigroup, Victor Menezes to come to Sri Lanka from New York. His visit is significant since he was one instrumental in opening the bank in Sri Lanka in 1979, and therefore he has a special relationship and bond with Sri Lanka," he added.

Speaking about the bank's future plans, Jayawardena said the bank is well positioned for growth in Sri Lanka and that Citibank operations in the country have increased in leaps and bounds in the last 25 years.

While the bank commenced operations in the country as a small 10-man operation, its staff has now exceeded 100.

Citibank is the third largest foreign bank in Sri Lanka, and offers a wide range of products and services to the local market.

It is also the only AAA rated commercial bank in Sri Lanka, and its operations are more focused on the corporate and SME sectors.

The bank plays a major role in facilitating trade between the United States and Sri Lanka and has played a pivotal role in facilitating the exports of garments from the country.

Over the years, the bank has proven itself a global leader in domestic and cross-border transactions for the world's top investors, intermediaries and issuers.

Another key strength of Citigroup is its corporate finance area, where the bank has financed key infrastructure projects in the country and has also executed many financing transactions for the Sri Lankan government.

The bank intends to expand its footprint in the country in the future and be a catalyst in integrating the Sri Lankan economy with the global economy.

In Sri Lanka, the bank aims to adhere to the highest ethical governance standards across multiple businesses; to provide the most optical mix of services to customers; and to be the most trusted financial services institution.

Citigroup launched its internet cash management system, Citidirect, two years ago. Citidirect is a web-based system that is utilised by many multi nationals and large corporates in Sri Lanka.

The bank's cash management team provides its customers a superior service, with flexible, innovative and efficient tailor-made solutions being the order of the day.

The cash management solutions are constantly upgraded to meet the changing needs of clients and the key difference of Citigroup cash management services is that solutions are tailor-made to suit specific customer requirements using a web-based and electronic banking platform.

The bank does not believe in introducing standard products for all customers, opting to provide solutions to their individual needs instead.

With the emphasis being on customer service, value addition and cost, Citidirect offers a full service gateway to the range of Citibank's products and services.

The principal user interface is through a web-based browser and it supports a range of file handling techniques for the delivery of transactions instructions to the bank and the collection of transaction information and confirmations from the bank.

Citidirect takes electronic banking services to a new level using internet technology and enhanced security and is a sophisticated, user-centered interface that offers customers global access, uniform client software, enhanced and customised reporting capabilities and online technical and customers services support.

- Marianne David

Janashakthi sets new standard in motor insurance

Janashakthi Insurance Co., Ltd., is the first insurance provider to offer its policy-holders an automatic 15-day extension of all its motor policies, to protect them against all third party risks, if the policies are not renewed on time.

The new scheme, sets a new standard in the motor industry, and is indicative of the company's new direction and dedication towards providing more and more benefits to its customers at no additional cost.

"The automatic 15-day cover was launched on the basis that most people forget to renew their motor insurance on time," said AGM - Sales and Marketing, Ravi Liyanage. "Now our policy holders can depend on automatic third party coverage for more than two weeks, after the expiry of the policy."

Already the most comprehensive motor policy in Sri Lanka Janaratha Full Option also includes a unique toll free customer care center, which any customer may utilise 24 hours of the day for any problems relating to loss or damage of motor vehicles. The call center can arrange solutions from on-site assessment to towing services, he added. In case of an on-site assessment a police report is not insisted upon for settlement of an 'own damage' claim.

Janashakthi was launched in September 1994 as the first specialised life insurance company in Sri Lanka. Following a merger with its non-life associate Janashakthi General and the 2001 acquisition of the state giant National Insurance Corporation the company is now placed at the forefront of the country's insurance industry. Janashakthi was the first private insurer to open an overseas branch in the Maldives in 2002, and its ISO 9001-2000 certification is the only such distinction for a life insurer in Sri Lanka.

Seylan Merchant Leasing doubles profit

Seylan Merchant Leasing Limited (SMLL), the specialised leasing arm of Seylan Merchant Bank, has declared a final dividend of 10 per cent to all shareholders on the back of a creditable fiscal performance in 2003.

Both Class A and Class B shareholders of SMLL will be eligible to receive this dividend the company announced this week. All Class A shares are held by Seylan Merchant Bank, while Class B shareholders are those who participated in a public unquoted share issue in November 2000.

SMLL has reported a net profit of Rs. 25.03 million for the year ended December 31, 2003, almost double the profit recorded in 2002.

The net income of the company increased from Rs. 36.17 million in 2002 to Rs. 53.90 million last year, representing an increase of 49 per cent. Interest income increased 48.74 per cent from Rs. 32.17 million in 2002 to Rs. 47.85 million in 2003.

SMLL has improved its profits in each full year of operation. It also increased the size of its leasing portfolio in 2003, enabling the asset base to reach Rs.326 million at the end of the year in comparison to an asset base of Rs.208.6 million at end 2002. This was a growth of 56 per cent.

Shareholders funds improved from Rs. 91.50 million as at December 31, 2002 to Rs. 131.83 million as at December 31, 2003.

SMLL Managing Director Rohan Senanayake said: "We strongly believe that innovation is key in terms of our achieving a distinctive brand in the competitive market we face, and we have been successful over the years in terms of creating innovative products and services that provide substantial added value to customers."

He said SMLL is focusing on increasing growth and opened branches in Mount Lavinia, Matugama and Matara, in order to increase business volume.

Seylan Merchant Leasing was incorporated in July 2000, and commenced operations in August 2000. Its mission is to develop and market a diverse range of value-added leasing products. The company declared a pre-tax profit of Rs. 25.20 million for the 2003 financial year.

PABC launches 'thumb' banking using SMS technology

With the introduction of its SMS banking facility, Pan Asia Banking Corporation Limited (PABC Bank) has brought its services to the fingertips of its customers.

With speedier service, convenience, a host of functions and low costs involved, SMS banking is setting newer standards keeping with PABC's vision to be the most customer preferred bank in Sri Lanka, and the bank has invested a lot of money on enhancing its services with innovative technology.

Over Rs. 25 million has been spent on hardware alone in order to boost its processing power and the bank has further upgraded its core banking system to offer customers more functionality in terms of features.

According to Head, Information Technology, PABC, Sujeewa Dissanayake, looking at the service factor, customers are demanding more services now and being able to provide these services is a central factor for organisations to be more successful.

He said in order to do this and provide innovative, secure and speedier services, investing more in Information Technology (IT) is important.

"Today customers are not confining themselves to the brick and mortar system; they are demanding mobility in banking. With our SMS banking facility, we have enabled 'thumb' banking - customers can do their banking functions, using SMS technology," Dissanayake asserted.

In 2002, the bank introduced ATMs to all its branches, enabling 24 hour, 365 day access. SMS banking also offers the same facility, enabling customers to do their banking transactions at their convenience and leisure.

While customers usually spend a fair amount of time and money when doing their banking activities under the brick and mortar system, with SMS banking, they are able to save both: an SMS banking transaction costs only Rs. 2 and the customer is saved the hassle and cost of traveling and time as well.

SMS banking also has a host of advantages in comparison to traditional phone banking. With SMS banking, no longer does one have to stay on the phone for information while the phone bill adds up.

"For example, paying an utility bill will cost only Rs. 2. Banking functions such as inquiries (account balance, mini statements), fund transfers (between own and other PABC accounts, credit card settlements) , requests (cheque related services and account alerts) and  PIN change etc. are some of the key features that are being offered through our SMS banking," explained Dissanayake.

And with the speed in which mobile technology is improving, things can only get better. "The world is fast moving into mobile technology and in time to come, mobiles will be able to perform many more functions," Dissanayake said.

The bank has also adopted a proactive approach when it comes to account balances, opting to alert customers of their account balances with an SMS without waiting until the customer requests the information, thereby keeping customers updated on any account changes at all times.

In the second phase of operations, PABC also plans to link up with most of the mobile operators, ensuring wider accessibility and coverage for customers.

Customers even have a 24 hour hotline number to report all concerns and suggestions and PABC is taking every step to enhance productivity and service levels

"We believe our customers come first, and the profit follows. The bank is staging its development and is in the process of developing more functions and features in order to provide an even more superior service to our customers under the 'e-wave' strategy," Dissanayake further said.

PABC has bounced back as a competitor in the banking sector. Having commenced operations in 1995, the bank is now in its ninth year of operation and has 18 branches to date - of which all are online, with most of them having ATM facilities as well - with hopes of increasing the number of branches to 22 in the year to come.