Business

Insurance companies play waiting game

By Risidra Mendis  

One week after the December 26 tsunami wrecked havoc in the country, insurance companies are yet to take a final decision about paying insurance claims. According to what industry heads say, the final decision is in the hands of the reinsurers.

At present, the insurance industry has received over Rs. 5 billion in claims and as the number of deaths keep rising, chances are the insurance cover claims will rise too. According to statistics, less than one percent of the Sri Lankan population is insured for life and non life.

Awaiting a response from overseas reinsurers, local industry giants met on December 29 to discuss steps to be taken. However, the reinsurers are yet to commit themselves to the requested insurance claims.

According to officials from the insurance industry, some companies are ready to settle life claims. Some insurance officials say no one takes out earthquake or tidal wave cover in Sri Lanka and while most fishermen in the coast are partly covered by liability and property covers, most don't have life policies.

Speaking to The Sunday Leader, Chief Executive Officer, Union Assurance Ltd., Marina Tharmaratnam said the company will honour life insurance claims and claims arising from several types of general insurance policies as well.

"This is the first time in the region that we experienced a tsunami as a result of an earthquake thousands of miles away. We feel confident we will get reinsurance support and we will do our utmost to honour all claims within the terms of the policies in the wake of this natural disaster," Tharmaratnam said.

In a statement released on Friday, Asian Alliance Insurance Company Ltd. (AAICL) stated the company would meet all obligations in respect of affected premises, contents and life policy holders subject to policy conditions and settle claims arising from the recent disaster.

"In life insurance the sum payable may amount to double to triple the sum insured. The company will honour its promises but people not insured or not properly insured cannot expect indemnity through insurance," the statement read.

A disaster claims unit has been set up at the company head office to assess and settle claims expeditiously.

Meanwhile, Chief Operating Officer, Eagle Insurance, Deepal Sooriyaarachchi said Eagle Insurance does not have a broad policy preventing a claim.

"We look at each claim on a case to case basis. At present we have received only a few claims. We have to wait and see how many claims we will receive," he explained.

According to Sooriyaarachchi, the company will consider criteria such as dedication to their customers, taking into account ethical criteria and responsibility towards customers.

"We are a financially stable company and will have no problem in paying customers their claims. We don't have many motor policies to deal with. However, we have to wait for the final word from our reinsurers," Sooriyaarachchi said.

Branch Manager, Life Insurance Corporation Lanka Ltd., Tony Peiris said the company is yet to receive life insurance claims from victims.

"The company CEO, R. Gopinath has promised to honour every life insurance claim received from our customers," says Peiris.

"The company has assets worth Rs. 2.8 trillion and therefore should not have a problem dealing with whatever life policy claims they receive," Peiris said.

However, Chairman, Janashakthi Insurance, C.T.A. Shaffter said this national disaster was not a "straight forward" one with regard to insurance claims.

"We have to first seek legal and technical advice with regard to these insurance claims. At present we are awaiting a decision from our reinsurers," Shaffter said, echoing the sentiments expressed by most insurance company heads.

Stock market optimistic

By Shehan Moses 

Stockbrokers are urging the government to seek more aid from the international community for the development of the economy in the aftermath of the tsunami disaster.

"The government should lobby for more foreign aid in order to minimise the reconstruction costs the country as a whole would have to bear," said, Business Development Manager, Bartleet Mallory Stockbrokers, Angelo Ranasinghe.

According to Ranasinghe, when more international aid arrives, the value of the rupee would stabilise and it would help the economy to perform much better, thereby boosting the bourse.

The market dipped shortly on both Tuesday and Wednesday. However, it rose on Thursday, which brokers describe as a correction in the market. The market slightly dipped on Friday once again due to the positive trading on Thursday, brokers said.

The Colombo Stock Exchange (CSE) slipped down nearly 70 points on Tuesday after the tidal waves struck the island and the All Share Price Index (ASPI) fell by 68.18 points, while the Milanka Price Index (MPI) fell by 142.15 points.

Broker attributed this to panic selling due to negative signals from the market. Market turnover last Tuesday was a meagre Rs. 27.5 million and further decreased to Rs. 11.7 million on Wednesday. While market turnover rose to Rs. 173.9 million on Thursday, it fell to Rs. 11.3 million on Friday.

The valued hotel sector shares were drastically down on Tuesday, the first day of trading after the tsunami hit Sri Lanka. Aitken Spence led the losers when its share value fell from the previous day's close of Rs. 374.75 to 322.25 due to negative investor perception. However, the share value rose on Friday to Rs. 349.00.

"Aitken Spence earns most of its profits from its Maldivian resorts. It only owns two hotels in Sri Lanka and manages the rest. The two hotels it owns were not damaged. Therefore, profitability of Aitken Spence Hotels would not be severely affected," explained Ranasinghe. Share values of hotels such as Confifi, Riverina, Tangerine and Keells also fell significantly following the disaster.

According to Ranasinghe, the market would operate in three scales: short, medium and long term and there would be panic selling in the short term as witnessed last Tuesday and Wednesday. However, he said investors would shift their trading preferences from the hotel stocks to stocks of diversified areas.

"Agricultural, construction and telecommunication shares would be preferred by investors in the near future rather than hotel stocks," he said. However, he added there wouldn't be panic selling of hotel shares in the future merely because investors would expect the hotel sector to perform well in the future and regain its lost momentum.

"Obviously, the tourism sector would perform badly in the next few months. This is because many tourists would be reluctant to visit Sri Lanka and other South Asian countries due to shock. However, in the next few years, this negative situation would ease off and more tourists would arrive, thereby creating a positive performance of the hotel sector," Ranasinghe said.

He further stated the future of the hotel sector in the short and medium term would be decided on the insurance claims they receive. According to Ranasinghe, if the hotels receive insurance claims for damaged property, then the construction costs to the hotels would be minimal. In the event the hotels are not liable for insurance claims, the profitability of hotels would be severely affected in the short and medium terms.

Ranasinghe said with investor interest moving away from the hotel sector - which dominated the market prior to the disaster - it would take a considerable amount of time for those shares to regain high values.

"In the short and medium term the hotel stockholders would lose. However, if the ceasefire continues, the shares would regain value and gain capital net worth in the future," Ranasinghe said.

According to a post tsunami review report from HNB Stockbrokers, an immediate impact would be felt because tour operators would be reluctant to bring tourists to Sri Lanka due to the limited hotels available, especially in the southern coast of the island.

Furthermore, the report states it would take around a month to reconstruct these hotels. However, the arrival numbers would gradually improve in the future.

According to stockbrokers, while share values of the hotel sector would continue to decline at least in the short term, share values of businesses in diversified areas, such as construction would gradually increase.

"The construction industry was performing well during this year. However, after the disaster, the industry would witness a sudden boost in their businesses," Ranasinghe said, adding that electric cable, ceramic and cement companies would perform well, thereby boosting share values.

According to the HNB report, there would be a sudden boost in demand for construction activities and as a result businesses involved in the construction industry as well as supplies of raw materials such as cement would perform well in the months to come.

Though the CSE slipped down by nearly 70 points in the aftermath of the disaster, the Indonesian-based Jakarta Stock Exchange and Indian-based Bombay Stock Exchange hit new highs during the same day.

According to analysts, both exchanges hit new highs because investors expected those economies to perform well during the fiscal year 2005. Analysts further explained the disaster would have a limited overall impact on the economy, merely because this is a natural disaster and a not a man made one.

Real estate industry left reeling as land prices plummet 

By Jamila Najmuddin 

The real estate industry in the coastal areas has been severely hit by the devastating tsunami that washed away many hotels and luxury expat homes overlooking the beach. With luxury properties worth hundreds of millions washed away by the massive tsunami, real estate companies are claiming the country would lose foreign exchange as foreigners were already showing doubts over purchasing lands along the coastal belt.

While the south east of the island has been heavily invested in by foreign buyers, real estate companies have already recorded more than a 50% decrease in business as customers - both local and foreign - who had invested in coastal properties were now evading paying installments.

As many investors did not have their properties insured against such a natural disaster, property brokers claim that investors would face severe losses resulting in land prices within the coastal belt dropping in the future.

Speaking to The Sunday Leader, Financial Controller, Ceylinco Real Estate Developers, Kasun Attanayake said following the tsunami, the company had already recorded a 75% drop in sales. "The company has sales worth Rs. 2 million per day but after the tsunami, we have recorded a sharp drop," Attanayake said.

Attanayake said land prices along the coastal belt would drop considerably and the industry would only have to hope land sales along those areas would increase in the future.

Assistant General Manager (Sales and Marketing) Ceylinco Land Exchange (Pvt) Ltd., Liyanage Deepal maintained company sales had dropped by a large percentage following the devastation on Sunday. According to Deepal, although Ceylinco Land Exchange had invested in a property in Galle, they too would reconsider purchasing the land as a "precautionary measure."

"The company will lose Rs. 1 million as this is the amount that has already been invested in the Galle property. However, it is safer to lose Rs. 1 million now rather than hundreds of millions later," he said.

While Sri Lanka has been a favourite destination among foreigners when it comes to investing in properties along the coastal belt, Deepal said this was likely to change as Sri Lanka would now be considered a country prone to tsunamis and tiday waves. "Whatever the precautions the country takes, people will not buy lands along the coastal belt anymore," he said.

While Ceylinco Land Exchange has sales of more than 15 land blocks per week, Deepal said during the last week, the company had sold only two blocks and that land prices had also dropped considerably following the tragedy.

However, Marketing Manager, Nivasie Developers (Pvt) Ltd., Panduka Weerasingha was of the view that while locals would be reluctant to purchase lands along the coastal belt, foreigners interested in buying lands would continue to invest.

"Although there might be some fear in the early days, this atmosphere will gradually fade as people cannot evade the coastal area," he said.

Director Marketing, Ceylinco Developers Ltd., Mevan Seresinhe told The Sunday Leader the recovery of the land industry now depended on the country's development plan. He said the fluctuation of land prices would depend on the demand and supply of lands within the coastal belt in the future.

"Every country has to recover after a disaster. The US recovered after the September 11 attack and countries such as Bangladesh, which are prone to natural disasters, also recover. Although this was a tragic incident, we hope the nation will recover soon," he said.

Tsunami terror and its economic impact 

By Dinesh Weerakkody 

A speaker at a forum in London paused for a minute to inform the audience he had received information that a deadly monster wave had killed over 10,000 people in South Asia. In fact it did take a while to dawn on me that Sri Lanka, which was spared in the past from many natural disasters that savaged the region, was brutally hit by a monster wave that had brought devastation and tragedy.

As the death toll soared towards 120,000 in South Asia, desperate Sri Lankans were wondering how many of their loved ones were among the unidentified victims. Many tourists are also known to have been in the disaster areas and to have perished.

As the heartrending scale of the tragedy became more apparent, Sri Lankan authorities were desperately doing whatever they could within their means to bring some hope for frantic relatives and to prevent devastating epidemics that could in effect double the death toll.

Costliest disaster

In addition to the death toll, the monster wave left millions homeless and water systems contaminated by rotting bodies .The government therefore will have to rush urgent medical supplies before epidemics like cholera, typhoid and hepatitis break out.

This costal disaster is the costliest disaster in our history and the long-term economic and social consequences of this could be devastating as the Tsunami itself. The quake the biggest since 1964 and the fifth biggest since 1900 resulted in waves smashing in one mile inland swallowing up terrified victims.

The receding waves have left a tale of terror and littered the street with bodies and debris. The government understandably does not have the capacity to cope up with such a massive natural disaster. Aid agencies have warned disease will also cause massive casualties among the survivors; therefore the international community needs to come up with the biggest relief effort this century to minimise the fallout of this disaster.

Inevitable question

What could have been done to minimise the impact of the Tsunami? It is an inevitable question after any major catastrophe. We know the Indian Ocean earthquake killed over 120,000 and left millions homeless. No wonder people affected are asking why there was no early warning.

After all, the Tsunami generated by the quake, deep under the seabed off Indonesia may have traveled at over 700 kmph, but the Indian Ocean is a vast place.

So in theory, countries like India, Maldives, Thailand and Sri Lanka should have had several hours of warning, time enough to evacuate people in the major coastal towns, which could have in effect dramatically reduced the loss of life.

Little data

According to newspapers, seismic sensors all over the world detected the quake, and a US scientist in Hawaii actually calculated which coastlines were vulnerable to a savage battering by Tsunamis. We all know calculating the exact size and path of any Tsunami would always prove difficult because the Indian Ocean is less surveyed and very little data is available.

Nevertheless it was known that Tsunamis were invitable and this knowledge alone would have saved thousands of lives. Things will however change now that the West has had to come up with the cash to fund the disaster recovery in the impoverished areas of South Asia.

But one thing is certain, something like this could happen again and it is in the interest of the world community to set up a Tsunami warning centre in Asia to provide advanced warning in the future.

The government would require billions of rupees to support the Tsunami victims and for the reconstruction of the south and the east. The international community will no doubt support part of our effort. The government would however have to come up with big money soon to minimise any devastating epidemics that could double the death toll.

Cash problems

The government currently is faced with cash problems. Already the oil price escalation has resulted in a 3.7% current account deficit up from 3 % in 2003. If interest rates do not get corrected, donor funds are held back and money is printed, inflation would rise, growth will fall and COL will go through the roof, putting more pressure on affected people and the economy.

The Sri Lankan economy is both small and open. So financing the budget deficit through Central Bank credit creation is both foolish and dangerous. Since we are an open trading economy there is no good way in which we can control our exchange. So it is inevitable we are going to aggravate our balance of payment problems.

The government in the recent past was happily selling government Treasury Bills to the Central Bank and printing money to fund the subsidies they promised to give. As a result Rs. 50 to 60 billion were printed. The argument being that a large portion of the T-bills were bought to compensate for the huge reserve outflow.

Protection against inflation

In textbooks we read that reserve outflows are largely caused by government deficit spending and bad economic policy. The Marxists will argue that they are stealing the Central Bank reserves to feed the poor. Well and good the problem is that two thirds of our expenditure is spent on foreign goods, a strong rupee helps the government to keep consumer prices down big time. This is the best protection against inflation.

Poor governments that ignore this basic principle have ended up by having to face high rates of inflation, economic decline and political instability. This is perhaps why independent thinkers who have some knowledge of monetary economics are getting worried.

The rupee is declining and when the public sector salary hits the market and the rehabilitation starts the government could end up giving more IOUs to the Central Bank. But the government can do very little. A weak dollar should have helped us to ease our current account deficit, but so far it has not because our economy is weak.

A budget deficit therefore financed by printing money can only result in serious inflation. If the government borrows so much from the private sector and from public savings, then interest rates become very high and there is very little for the business sector.

The result is, we will not have much private sector investment and the government revenue will end being used to pay the previous borrowings. So if the government commits funds up front which it will have to do now, it will fail to meet the revenue targets.

The government will be forced to get the Central Bank to buy more debt than is prudent to defend the currency, run its reserves down and finally be forced to enforce trade controls and eventually to devalue the currency. The tourism industry that had begun to flourish may now take a hit after the Tsunami disaster causing wide scale unemployment.

Funds

The Multi Fibre Agreement too will disappear in 2005.Therefore the government at current levels of economic growth cannot fund the reconstruction and rehabilitation of the east and south. Therefore, prospective donors both locally and internationally should not wait in silence allowing the affected people to suffer in silence.

Lack of funds can endanger the lives of the helpless people in Sri Lanka, the international community and their people support. What this country needs is generous international and local aid to flow direct to the victims very fast.

Therefore Sri Lanka needs all the support it can get from the donor community and our private sector to bring some hope to the affected people and help the economy to cope with the current crisis. However, Sri Lanka would continue to need help from the international community for many more months.

Unilever Sri Lanka pledges Rs. 100 million for Tsunami victims 

In the aftermath of the death and destruction caused by the tsunami that struck the country last Sunday morning, Unilever Sri Lanka and all its employees rallied round immediately to help those affected, living up to the saying that "the only cure for grief is action."

The need of the hour was to provide clean water, cooked food and basic essentials to those displaced. As a first step, all employees pledged a part of their salaries and with the company contributing more than three times this amount, an initial relief fund of Rs. 15 million was formed.

Immediate arrangements were made with the Sri Lanka Air Force to airlift 1,000 packets of cooked food each day for one week to remote and inaccessible parts of the affected areas. The Lifebuoy water bowser left the company premises with clean water for distribution from Kalutara to Hambantota.

Using the company's extensive distribution network, relief supplies have already been distributed directly to people in affected areas of Kalutara, Galle, Matara, Hambantota, Ampara, Batticaloa, Vavuniya and Trincomalee districts. The relief packages contained essentials like drinking water, rice, sugar, Lipton tea, Sunlight soap, Signal toothpaste, Marmite, plastic buckets, towels, feeding cups, sleeping mats, etc.

The outpouring of concern right from the factory worker through to top management was overwhelming. Virtually all employees lent a hand spending long hours into the night not only organising the relief effort but also helping to physically pack the goods. Teams of employees also volunteered to take the relief supplies directly to the people affected and are even today busy distributing the relief packs with the help of the company distributors and their staff.

Expressing shock and grief at the devastation caused, Chairman, Unilever Sri Lanka, Ehsan Malik said, "We will do everything within our means to help ease the burden. What the company and its people have done so far is just the beginning. I have been in touch with our parent company and received their fullest backing to continue the good work. We will be immediately donating a further sum of Rs. 25 million to the government's relief fund. Unilever is also open to supporting reconstruction and rehabilitation projects with donations up to Rs. 100 million. This once again reasserts Unilever's deep commitment to the people of Sri Lanka."

FCCISL spearheads major relief coordination programme 

The relief coordination programme initiated by FCCISL and its islandwide chamber network immediately after the tidal wave hit has been progressing covering a number of essential aspects of providing relief.

One of the first things FCCISL did was setting-up of a special relief coordination unit at its secretariat, the objective of implementing a coordinated and structured relief programme. The unit is headed by the Secretary General, Samantha Abeywickrama and activities are closely coordinated by the office bearers.

The relief coordination unit has drawn up a two pronged approach covering immediate plan focusing on the immediate relief measures for thousands of displaced people in the affected areas and a short and medium term economic revival programme to assist the affected businesses to be brought back into a possible functional position.

The FCCISL relief coordination unit is coordinating these activities with all its member chambers and associations which are fully cooperative in this regard. A large number of business enterprises belonging to FCCISL's district chambers in Galle, Matara, Hambantota, Ampara, Batticaloa, Trincomalee, Jaffna and Gampaha have been affected.

Having set-up the relief coordination unit at FCCISL secretariat, a number of immediate relief measures have been initiated.

FCCISL also opened a new relief fund with an initial contribution by FCCISL and which is currently contributed by various individuals and organisations throughout the country. The funds collected through this unit will be handed over to the chambers in the affected areas for immediate rehabilitation work. Sabaragamuwa Chamber, another member body of FCCISL, has also set-up a fund to assist reconstruction of 150 houses.

ADB offers immediate assistance 

The Asian Development Bank (ADB) has offered to extend immediate assistance to the countries afflicted by the huge earthquake and subsequent Tsunami that struck South and South East Asia last Sunday.

President, ADB, Tadao Chino expressed deepest sympathy for this human tragedy in Bangladesh, India, Indonesia, Malaysia, Maldives, Myanmar, Sri Lanka, and Thailand. He assured the governments of affected countries of ADB's fullest support and cooperation in "alleviating the suffering brought about by the devastating earthquake and Tsunami and restoring normalcy to the affected areas."

ADB teams from its country resident missions are in close coordination with government officials and humanitarian teams to assess needs and make plans to assist. Chino also committed ADB to collaborate closely with its many international and domestic partners to mobilise the resources and expertise needed to get the countries back on track.

In Sri Lanka, ADB is closely coordinating with the United Nations system with regard to emergency interventions. Assistance in facilitating availability of drinking water and in rehabilitating basic community infrastructure in some affected communities is planned under existing ADB projects. Funds and supplies collected by the ADB resident mission staff are also being channeled to relief efforts.

Website on displaced people 

The Ceylon Chamber of Commerce (CCC) is liaising with the Internal Security Ministry and the Tourist Board to create a website which will contain information of displaced persons presently accommodated at refugee camps and other sites, facilities such as e-mail, SMS or telecommunication, through which messages may be conveyed to them and the names of the deceased.

The proposed website will be developed without delay with whatever information the chamber may be able to gather, although the records may not always be complete.

The website will be updated every 12 hours and will be a dynamic database. It will be launched today with the web address www.sossrilanka.com or www.sossrilanka.org.

The chamber is working in affiliation with Affno to create this website. Information gathering and the updating of the website is being handled by Chandra Vithanage, Suresh Pathirana and Sushani Wijeyatillake. Affno will be in overall charge of the website.

The CCC website intends focusing on an appeal for international support for re-construction and rehabilitation.

Snippets 

NCCSL calls for political unity

The National Chamber of Commerce of Sri Lanka (NCCSL) called for national and political unity at Sri Lanka's worst hour and appealed to all political parties of the country to set aside their differences and come together in rescuing the island from the national crisis experienced in the country. The council and the officials of NCCSL expressed shock at the national disaster whilst conveying their condolence to the families who have lost their loved ones and those who were displaced due to the tidal wave attack.  A special unit has been set up at the chamber headquarters for the collection of donations. Further clarifications can be obtained from the chamber secretariat. The distribution operation commenced on December 30 in association with ART TV. The chamber appealed to its membership to unite with the chamber in this hour of need to assist those affected by this tragedy. NCCSL has also created a relief and rehabilitation fund and those who wish can contribute to account no. 1650040446 of People's Bank, Suduwella Branch or draw a check in favour of 'The National Chamber of Commerce of Sri Lanka.'

Hutch sets up distress call centers

All Hutchison branch offices in the Tsunami affected areas in the south and the east were advised to reopen operations immediately with the aim to providing communication assistance to people in the area. In the case of damaged buildings and offices, steps were taken to start off operations by setting up temporary units to help the general public. A decision was also made to facilitate free calls to all those needing to talk to their family or friends concerning their well being from the branch offices.

Emirates rolls out big relief operation

Emirates Airline is providing humanitarian relief and aid to the survivors of the catastrophic tsunami of last Sunday in South Asia. The first 100 tents of a shipment of 1,000 donated by a local Sri Lankan benefactor have already been dispatched by Emirates SkyCargo from Dubai to Colombo, as well as five tonnes of foodstuffs from Dubai to the Maldives. Over the next few days, the airline will procure, provide and transport relief materials, either free of cost or at extremely reduced charges to many destinations.

Modern device to avoid ship collisions

Queens Radio & Television Corporation (QRTC) has introduced a modern device recently in the marine field, the Automatic Identification System (AIS). Group Managing Director, Dinesh Motha said AIS enabled to avoid collision in the seas and also would help to identify vessel to vessel even from a distance. The AIS was made mandatory on all sailing vessels from July 2004. A vessel would qualify to obtain surveyor approval only if it was equipped with an AIS. Surveyor approval was essential, without which the vessel could not be insured. According to shipping circles, sailing without a marine insurance is looked upon as the biggest risk for vessels in the marine scene. AIS was originally developed to aid the vessel traffic Services (VTS) by the use of Very High Frequency (VHF) transponder working on digital Selective Call (DSC) at VHF channel 70 which is still in use along the UK coastal areas. Subsequently, the International Maritime Organisation (IMO) developed a universal AIS by using new technology called Self-Organised Time Division multiple Access (SOTDMA) based on a VHF Data Link (VDL). Motha said the system operates in three modes: autonomous, assigned and polled. He said, the VHF channels of 87 B and 88 B are commonly used. The shipborne AIS transponders exchange various data as specified by the IMO. The VHF transmit power is also set up for 12.5 W or 2W automatically. In addition to AIS, the company has also made available a device to be used in ships, the Ship Security Alert System (SSAS). It is a security device during an attack by pirates that does not allow formation of audio-visual alarms on board. Sensing of a security alert on board which might lead to a panic situation is prevented. Transmitted information includes the ship's current position and identification. Flag administration and ship owners are kept informed of the ship's position at sea and the ship could be tracked even after it loses communication due to disturbance by pirates.

New method to control soil erosion introduced

EcoProtect Engineering Pvt Ltd, a subsidiary of Multichemi Group introduced an innovative and environmentally friendly method of erosion control using coir based erosion control products recently for the first time in Sri Lanka.

This technology was unveiled at a seminar titled "Eco Friendly Erosion Control Systems Using Coir Products" at the Trans Asia Hotel. The Chief Guest at the event was Environment and Natural Resources Minister, A.H.M. Fowzie. Top government officials from the RDA, UDA, CDA, NCED, EDB, etc., attended this seminar. President of Coco Technologies Corporation Philippines, Dr. Jastino Arboleda, gave a presentation about the technology and its advantages.

The company is a joint venture between Multichemi Group and Coco Technologies  Corporation, Philippines, a leading erosion control specialist in the Philippines. They have been in this field for over 10 years and have been instrumental in making coir-based erosion control systems mandatory in the Philippines. They currently carry out erosion control projects in the Philippines and many other countries.

The major applications of this technology are retaining roadside earth fillings, exposed slopes, maintenance of rehabilitated embankments and re-vegetation of difficult terrain etc. These coir based erosion control systems can also be used for sea erosion management. Though Sri Lanka is one of the largest exporters of coir and coir based products in the world, this technology was never applied here for erosion control, which is a burning issue. This venture would be a boost to the local industry as well as an effective way of controlling soil erosion.

Coconut fibre usage has become very common among professionals in various industries due to its versatility. In the horticultural industry, agricultural industry, or erosion control industry, coir has established a remarkable reputation for its superiority to other available natural materials.

Compared to the horticultural and agricultural industries, coir is new to the erosion control industry. Recognition of coir in the erosion control industry has come from the fact that it is an abundant, renewable, natural resource with an extremely slow decomposition rate and high strength compared to other natural fibres. Coir fibres are derived from the husk of coconuts, the versatile fruit known as the gift of the tree of life.

Coir erosion control products are ideal and economical to install in bio-engineered erosion control applications. These products are bio-degradable within three to five years and absorbs moisture upto five to eight times its own weight. Coir erosion control products hug all ground surfaces to hold soil and seed in place and prevent undercutting. They can be installed on slopes exceeding 1:1 ratios, act as a soil nutrient and approximately put back two tonnes of rich organic matter per acre. Coir erosion control products also accept hydro seeding before and after installation.

Multichemi Group was established in July 1993 with a mission to "provide maximum customer satisfaction with innovative products that are environmentally friendly." This mission gave birth to the Dash range of environmentally friendly detergents and cleaning agents manufactured in Sri Lanka. Multichemi International has also ventured into a new era by manufacturing bioactive personal care products.

Today Multichemi Group has ventured into diverse fields such as manufacturing enzymes for garment washing industry, advertising and promotions, and designing and installation of coir based erosion control systems. Multichemi Group has already established offices in India and Dubai and has a vision of being a world-class group of companies by the year 2010.

SLIM will help nation rise from the rubble

SLIM as the national body of marketing, offers its heartfelt condolences to the grieving families affected by the recent tsunami which is a natural disaster beyond the control of human beings. This shows that our tiny island is exposed without any defences to such unexpected natural calamities. Following is a statement issued by SLIM;

The government should immediately look at developing a solid disaster management strategy for the country with the help of local and international experts in the subject.

We believe that the people are the most valuable asset in any country. Therefore protecting this asset should be the primary duty of the state. As a developing country we may not be having ultra modern mechanisms to detect these calamities. However we should not forget the fact that the intellectual capacity of Sri Lankans are relatively high among nations. It is time that the state taps into these resources and makes use of them to develop links with other countries.

In a marketing and management perspective SLIM believes in every disaster there is an opportunity. In that context this may be a golden opportunity to rebuild the nation by developing a visionary and a well focused strategic plan for the country, specifically for the affected areas to be developed as ultra modern cities. This is how cities such as Hiroshima and Nagasaki built themselves into modern industrial cities rivaling any city in the world.

To propel this mechanism of private enterprises moving in fast to further assist victims and social and economic rehabilitation, we propose that the government should consider tax exemptions for donations diverted towards these objectives through government authorised entities. We also propose that the government should look at the companies affected by the disaster as they are considered the engines of growth of the economy.

Our observations during the last three days prove beyond doubt there is neither an ethnic issue nor party politics among the general public. It is amazing to see people helping each other, except for a minute percentage of people. This is a very strong message to the rulers of this nation. They must forget petty party politics and join hands to help people to get back on their feet and  realise their future dreams.

Therefore, we suggest that all parties together send an unconditional joint statement with regard to the rehabilitation of the tsunami affected areas to the general public, which would in turn give the right signals to the international community.

We appeal to all private sector companies to move into the affected areas with their products and services to help the market to come back to normal. We also understand that the companies and entrepreneurs have incurred losses. However, without a market to sell your goods to you will find it difficult to get back on your feet. In this grave situation the state must accelerate clearance.

All marketing oriented organisations must remember Abraham Maslows theory of needs, thus supply the affected areas with water, electricity, fuel/gas, dry rations, banking services, pharmaceutical/ medical care and other essential goods and services immediately. Concurrently we request the state to immediately launch a child-care and protection programme since there are children without parents of relatives and unable to understand the social problems and the magnitude of this event.

Saving the children is saving the nation, saving the entrepreneurs is saving the economy! In this nation building exercise marketing in governance introduced by SLIM can play a major role.

Air Arabia announces daily flights

By Pelham Juriansz  

Less than one year in to its operations, Air Arabia has increased its flights to Colombo from four times a week to daily. In addition Air Arabia has continued to offer more convenient travel for passengers with the lowest fares in the region.

At a press conference  Air Arabia's CEO, Adel Ali said that they would mark the first year of Air Arabia's operations to Colombo in February 2005 and continue to commit themselves to the fast growing market in Colombo.

Ali underlined  the fact that Air Arabia not only provides the lowest fares from Sri Lanka to the Gulf countries, but they also offer daily flights for Sri Lankan-based travelers - whether for business, leisure, or for Haj, and above all, in order to allow Sri Lankans working in the Gulf to come home more often. "We cater to all individuals by offering affordable, yet safe and reliable travel," explained Ali.

Air Arabia's Colombo route caters to both business and leisure travellers with approximately 75% of passengers being Sri Lankans working and living throughout the Gulf and the rest travelling for tourism.

Commenting on Sri Lanka as a good tourist destination, Ali said that the country has all the ingredients for being a good tourist paradise provided of course that peace prevails in the country.

"In the last three years great strides have been made by the government to improve tourism and tourists have been flocking in numbers. The weather here is good especially at this time of the year. For instance it's hot in the mornings and afternoon and cool in the evenings. You have a good change of weather. About 15% of people worldwide have the opportunity of travelling but it is that 85% that we like to target. We like to give them the opportunity of travelling, that is why we are offering cheap yet safe air- fares to the Middle East," said Ali.

To further emphasise their commitment to the local market, Air Arabia recently introduced a new addition to its Sri Lankan team by appointing Mayank Dhingra as Country Manager, who will assist in the development of the true Sri Lankan route and support the team in the region.

In addition to the above, Air Arabia also offers a wide range of holiday packages from shopping and city tours to heritage and golf packages from as low as USD 173 per person for a three- night package.

 Air Arabia now operates over 60 flights a week to 15 destinations. The next six months will see Air Arabia offering additional destinations as it continues with plans to fly to India, Jordan and Pakistan, and also hopefully open up the market to India as well.

"As soon as India gives us the flying rights we will be in India," said Ali.

CICL opens new office in Kurunegala

The newly opened Ceylinco Real Estate Developers Ltd., (CREDL) and Ceylinco Investment Company Ltd., (CICL) marked the opening of their new office complex in Kurunegala by drawing the winner of the Highway City Raffle Draw.

This raffle was launched by Ceylinco Securities & Financial Services (CSFSL) Group who initiated the Highway City project which is one of the biggest real estate developments to take place in Kurunegala. Aptly named Highway City due to its location on the Dambulla - Kurunegala main highway, it is a new city between the towns of Melsiripura and Galewala and has proved to be a boon for the people of that area as hitherto it was a relatively isolated stretch of land.

The Highway City project consists of 50 acres of land with water, electricity and internal roads, all of which have been provided by the company. The project was sold out within 10 days of launching it and at the time of the sale the company promised buyers that a raffle draw would be held for the first 250 customers who complete 30% of the payment with the prize being a Maruti car.

"Today marks that culmination of our promise and we hope that the lucky winner will benefit greatly from his prize" said Deputy Chairman CSFSL, Bandula Ranaweera speaking prior to drawing the winner.

The total cost incurred by the company on the raffle is approximately Rs. 1.3 million, and Ranaweera reiterated the fact that Ceylinco Group's focus was not merely on profits, but on ploughing back to the community benefits and amenities of modern living which would lead to a better quality of life.

DMS and Citrix committed to SL 

DMS Electronics Ltd., a leading systems integrator in Sri Lanka, along with its strategic partner Citrix System Inc., the global leader in access infrastructure solutions further strengthened their commitment in Sri Lanka by organising a string of events recently.

Director/General Manager, DMS Electronics Ltd., Chandranath, stated that it is indeed encouraging to note that Citrix Solutions is strongly pursuing its commitments in terms of the IT market in Sri Lanka. He further went on to state that the relationship between DMS E and Citrix Solutions has been in place for more than three years and in fact that the first few installations have been in existence and flourished over this period. Today, a number of big names in Sri Lanka bear testimony to the benefits that they have reaped by adopting Citrix Solutions technology.

The events addressed all levels of the enterprise. For instance the CEO/CIO breakfast meeting addressed the challenges that CEOs/CIOs face and how Citrix Solutions address these challenges. The subsequent event, the seminar, delivered the conceptual view of Citrix Solutions to managers responsible for implementing such programmes.

The last session was for those more involved at grassroot level, allowing those attending this session to have hands on experience. This holistic approach clearly demonstrates the commitment and maturity of both companies and should give confidence to the local IT community.

Chandranath further went on to state that the beauty of Citrix Solutions is that it truly results in bringing down the total cost of ownership. Personal computers now may be as ubiquitous as the paperclip. Many of us depend on them for our very livelihoods. Yet, their ubiquity raises some troublesome questions - could there be a better way of accessing information? Can we better harness all this computing power and all this information assets in a way that benefits both users and those who are tasked with keeping users up and running efficiently and cost effectively? Or are we harnessed by the very tools that created the information revolution in the first place?

Questions that any senior IT manager would be pondering on. It is when faced with such questions that one begins to see the importance of Citrix Solutions as it gives answers to most of these questions.

Ceylon Biscuits bags Brand Excellence Award 

Once again Ceylon Biscuits Limited (CBL) proved its excellence by bagging the highest number of awards at the Annual Branch Excellence Awards organised by the Sri Lanka Institute of Marketing (SLIM) recently. CBL the manufacturers and marketers of Munchee biscuits, Ritzbury chocolates and Lankasoy soya products, won the highest number of awards at last year's SLIM awards as well.

This time Munchee Super Cream Cracker was awarded the Brand of the Year as well as the Product Brand of the Year. Munchee Super Cream Cracker, which was re-launched three years ago with added features such as vitamins, superior crispiness and air tight pillow pack, has shown a continuous growth in terms of market share and consumer acceptance. During the last three years this brand has achieved a growth of 500%.

This year too Ceylon Biscuits limited won seven prestigious awards competing with a large number of leading brands. The awards received by the company were Brand of the Year (Gold - Munchee Super Cracker), Product Brand of the Year (Gold - Munchee Super cream Cracker), Turnaround Brand of the Year (Gold - Munchee Ginger), Product Brand of the Year (Silver - Munchee), Local Brand of the Year (Silver - Munchee) and Innovative Brand of the Year (Silver - Munchee) and Product Brand of the Year (Bronze - Ritzbury).

For the third consecutive year Munchee received Gold and Silver awards in the Product Brand of the Year category which is indeed recognition and testimony of CBL's commitment in satisfying the ever-changing biscuit and chocolate needs of the consumer. In keeping with international standards CBL is the only confectionery company in Sri Lanka to obtain all four relevant quality certifications i.e. SLS, ISO 9001:2000, ISO 14001, and HACCP.

In judging of brand excellence awards all entries were subjected to critical evaluation of the performances of brands with regard to all relevant aspects such as implementation of strategies, overall marketing activities, financial results, market share growth, contribution to the company growth and measures taken to ensure customer satisfaction. As such, receiving of highest number of awards at this year's branch excellence award ceremony is yet another endorsement for the success of the professional management approach of Ceylon Biscuits Limited in the carrying out of marketing and business activities of all its brands.

Holcim invests in Sri Lanka 

Holcim , one of the largest cement manufacturers and a leader in cement and aggregates worldwide has invested  US Dollars 30 million in Sri Lanka in order to extend its production capacity and to enhance operational performance.

The Holcim Group, of which Holcim Lanka is a member, has a presence in over 70 countries, and a total production of approximately US Dollars 10 billion.  Having over 125 cement plants, more than 750 ready mix concrete plants and more than 220 aggregate plants highlights the global presence of Holcim.

Holcim has recorded an impressive growth over the last 20 years and having started in Switzerland it has now spread its wings to adjoining countries such as France, Germany, and now even to South Africa, Lebanon and even the USA which could be termed as the second phase of its enlargements.

Having a workforce of 48,000 employees the growth rate of its workforce over the last 20 years has been 100%.

The workforce in Sri Lanka in 2003 has been 700, and according to Peter Spirig,  they have been selling whatever they produce in Sri Lanka and the market here is growing at the rate of about 5-6% per year. "We would like it to be better in keeping with the other growth rates in countries like Thailand, etc but no doubt that the peace process well help a lot" underlined Spirig.

With the new investment in Sri Lanka the Holcim Group underlines its long- term commitment to Sri Lanka. "It is not just a commitment for 20 days but for about 20 years," emphasised Spirig.

Speaking on the occasion the Ambassador for Switzerland, Bernadino Regazzoni, mentioned the fact that Switzerland and Sri Lanka were enjoying good relations and last year there were 12,000 arrivals from Switzerland due to direct investments.

The investment that Holcim is making in Sri Lanka will be utilised to further expand the local cement production capacity of both production facilities of Holcim Lanka in Palavi/Puttalam and Galle in order to meet the growing demand for cement in Sri Lanka.

The present annual production capacity stands at one million metric tonnes at both production facilities.

The aim is to increase the capacity by mid 2005 to 1.4 million metric tonnes. The capacity expansion programme is already in progress.

At the same time, Holcim Lanka continues upgrading both plants and thus strengthening  the company's operational performance through the application of science and modern technology as a condition sine qua non.

At the moment Holcim is enjoying around 30%  market share of cement in Sri Lanka and hope to expand this to around 40%. Further, Holcim Lanka is already drawing on the group's expertise in research, manufacturing and management, which helps greatly to serve the Sri Lankan market with quality cement that meets international standards.

A part of the investment will be used in the area of further training and developing of human resources at Holcim Lanka.

- Pelham Juriansz

Colourcon; first roofing company to acquire ISO 9001:2000

Colourcon Roofing Tiles Pvt Ltd is the first and only roofing company to receive ISO 9001:2000 certification for the high quality of their roofing tiles. Having started in 1999, this company has certainly elevated the quality standards for the entire roof tile industry in Sri Lanka by producing premium products that can last a lifetime.

"There are no official standards for our type of roofing tiles in Sri Lanka and hardly anyone in the industry abides by standards. Therefore we made our products to better Australian and British Standards which is why we have received this award," stated Colourcon Roofing Tiles Pvt Ltd, General Manager, Asiri Dissanayake.

"Not only are we making a superior product, but hope that this would set a benchmark for other manufacturers to implement total quality management practices which in turn will finally benefit the clients," added the General Manager.

"Undoubtedly roofing tiles is the more aesthetically pleasing roofing option for a residential or commercial building. However due to the reducing quality of roofing tiles over the last 20 years in Sri Lanka, many house owners have switched to other roofing material simply to avoid the hassle of repairs and leaks," says  Executive Director, Colourcon, Azim Marikar. "Over the last two decades, most of our buildings and homes are losing their Sri Lankan identity. By using Colourcon Roof Tiles, we have been able to conserve this image not only in new buildings and homes but also in older ones."

One of the re-roofing projects where Colourcon Roofing Tiles have been used is the prestigious Galle Face Hotel in Colombo. According to Marikar, the aim of Colourcon is to reinstate a more colonial image of Galle Face Hotel from the outside as well. The difference can be seen today as the project is currently ongoing.

Urging that the people should not just look at the cost , but pay undue attention to the quality of roofing tiles he said that "With better quality comes less expenditure in the long run as there will be less repairs and damage since Colourcon roof tiles have a very low maintenance cost."

Colourcon Roofing Tiles Pvt Ltd is the leading roofing tile supplier to the luxury housing and construction market. The company has served a number of large projects some of which are several Ceylinco housing projects, Habarana Lodge Hotel, Galle Face Hotel, Overseas International School, Wornel's Reef Hotel, and Tangalle Harbour  to name just a few.

Apart from receiving the ISO 9001:2000 this year from the world renowned TUV Management Service GmbH, the company has received numerous other awards such as Prestigious Product Excellence Award in 2000 and subsequently Merit Awards in the years 2002 and 2003 given by the Institute of Architects in Sri Lanka. Colourcon tiles also comply with Australian Standards and Good Practices AS 2049-1992, while the company is also working with SLS to introduce Sri Lankan standards for this product.

One of the main benefits customers would have when they deal with Colourcon Roofing Tiles Pvt. Ltd. is the advantage of exceptional after sales service. "Even if the problem was not directly related to our products, we have provided our services to oversee the roof where ever possible," pointed out the General Manager.

Colourcon Roofing Tiles comes with a 30 years performance warranty. Presently there are 12 to 14 coloured tiles that the company sells to the market and for special projects the company can even create a particular coloured tile that is required.

"The colour range is unique and designs, logos and shades can be created with Colourcon Roofing Tiles," said Dissanayake.

He also explained that people do not have to restrict their roof designs to the regular or ordinary shapes but can go ahead with the designs and shapes that they really want because of the flexibility of this product. Colourcon Roofing Tiles Pvt Ltd is one of the very few companies that have the accessories to assist in various roof designs where tiles will not have to be cut or damaged so that leaks and breakages can be avoided," noted Dissanayake and added "This is unique because no other company provides these products."

Furthermore Colourcon tiles are real value for money as they are fungal resistant and non-corrosive. It has also been laid over asbestos sheets in some cases.  The base of Colourcon Tiles is made with a cement sand mixture, which ensures a guaranty on performance that would last at least 30 years. This product is also environmentally safe while being durable and needs low maintenance. The surface of the tile is machine sprayed with a thick layer of imported colour pigments which is added with a water proofing element preventing any build up of dust and dirt.

Colourcon Roofing Tiles Pvt. Ltd. is the only company that manufactures and markets the technologically innovative colour concrete roof tiles in Sri Lanka. This company is part of the Conmix Group of Companies which have been in the construction industry for more than 50 years.

Refurbished Dolphin reopens

The Serendib Group acquired Stafford Hotel Ltd (Club Hotel Dolphin) in 1988. The hotel is over 23 years old and it originally had 72 rooms. With the acquisition of the adjacent Miami Beach Hotel, 50 more bungalows were added to room stock taking the total room strength to 122.

Today, Club Hotel Dolphin is a three star plus club animation type active hotel with its vast spread area and beach front uniquely located in close proximity to the airport and is an ideal place to relax and unwind for both leisure and business travelers. Last week's tsunami has largely spared the hotel of any serious damage.

Club Hotel Dolphin is one of the pioneer hotels to introduce the "all inclusive concept" to Sri Lanka and today one of the leading all inclusive club hotels in Sri Lanka.

At Club Hotel Dolphin one would find the best of both worlds with a choice of rooms to secluded private spaces - chalets amongst all the activity of a club hotel. One of the main features being the largest pool in Sri Lanka, an additional second pool and a pool pavilion was set up in the northern side of the hotel which is a quite area where private poolside BBQs and dinners can be arranged.

Though for the past 10 years the hotel has operated as a resort hotel with the ADB funded coast conservation project already underway the hotel is hopeful of a good beach front by early next year.

A 165 million refurbishment and development plan was implemented and completed in December 2004 to cater to the growing demand in tourism for three to four star hotel accommodation. The project consisted of fully renovating the large pool and providing additional accessories such as water slides, floats etc. All rooms in the main building were fully upgraded and key highlight been the addition of DVDs to rooms.

Club Hotel Dolphin is one of the first in the 3-4 star category to provide DVDs in guest rooms. The hotel also has a DVD library with a comprehensive range of DVD titles. All existing rooms were provided with sparkling new bathrooms. An all new coffee lounge was set up while an additional 25 rooms including two suites were also introduced along with the refurbishment.

The company thanks the board of directors and its share holders for the support extended for the rights issue which was oversubscribed in August 2004. A sum of Rs. 63.25 million was raised as equity capital which was required for the development programme.

Club Hotel Dolphin offers a wide range of entertainment facilities. With one of the best animation teams inclusive of foreign animators, the hotel provides unique and unlimited entertainment to the guests.

In addition to some of the key in-house sports such as archery, tennis, and volleyball the guests also have the opportunity to experience the surroundings which includes the fun of Colombo shopping, fishing in Negombo and a visit to the tile factories and historical churches.

Being a popular venue for meetings and conferences many large international and local conferences have been held at Club Hotel Dolphin. Professional and experienced meeting planners look in to every detail from airport pick up, accommodation to even planning out leisure time for participants. To meet the requirements of the MICE market the hotels conference facility is well equipped with all modern facilities with seating capacity for over 150 and is complete with a business center.

Blue Diamonds creates world 'first'

Blue Diamonds Jewellery Worldwide Ltd., has created the world's first ever Diamond Cricket Ball.  

It was only recently when Melbourne, Australia was buzzing with excitement when the world's first Diamond Cricket Ball was unveiled at Fior Drissage Jewellers, the latest addiction to High Street Armadale, Melbourne Australia, which is also a glittering shopping strip for the well heeled.

The Diamond Cricket Ball, studded with 2,704 brilliant-cut diamonds of VS quality from the best diamond mines in the world, has staked its claim for a place in the Guinness Book of Records - weighing 53.83 and has a 126-gram gold stem.

And at the heart of this enchanting creation is a unique technique, that the world now refers to as the 'Floating Diamond' process. Which started with the call by Ceylinco Consolidated Chairman Deshamanya Dr Lalith Kotelawala to 'be innovative', he had told executives of Blue Diamond Jewellery Worldwide: "Lets be different."

It was this call that set in motion a series of exhaustive experiments, as the team of Blue Diamond's craftsmen tried to break away from the conventional method of fashioning diamonds an a flat setting. Deputy Chairperson Sicille Kotelawala, too made her contribution, urging the craftsmen to set diamonds on a curve.

The crucial factor in a curved diamond setting is getting material that will hold the diamonds together. Plastic, lucite, glass and various forms of adhesives were all ruled out, and then the team accidentally stumbled upon the 'magical' material which is present in Sri Lanka.

With this material, the craftsmen were able to make the all important breakthrough. They first used this material for the dome setting, then a pear shaped pendent, and finally, with a ring, before working on an ambitious project, the tennis ball, the Blue Diamond, the material's 60 percent carbon content complemented the diamonds.

It was first in 1993 when Blue Diamonds Jewellery Worldwide Ltd, stunned the sports world when they produced a unique trophy - the worlds first ever diamond tennis ball for the Kraft Tour Tennis Championship at Madison Square Gardens, New York.

It was such awesome trophy that the winner, Steffi Graf was virtually speechless when she received it, while the speculators rubbed their eyes in disbelief. "Wow!" she had said when she recovered her breadth. Sicille Kotelawala was also present at this historic occasion.

With the material that the craftsmen had they were able to fashion curve settings without relying on claws which shield about 20 to 30 percent of the brilliance of the diamonds. The Blue Diamonds process aptly described as 'floating diamond' technique does not inhibit the brilliance of diamonds on the contrary it exposes the maximum brilliance of diamonds.

After introducing the sports world to the spectacular diamond, Blue Diamond has been manufacturing diamond golf tees, gold balls and miniature footballs.

Blue Diamonds Worldwide Ltd's next step is to create a life size soccer ball, a challenge for the coming year.

Fior-Drissag, a premier brand of Blue Diamond Worldwide Ltd, made its impact in Los Angeles and Japan before launching its exquisite jewellery collection - and the Diamond Cricket Ball in Melbourne.

Sicile Kotelawala stated "Besides their unique quality, the diamond tennis ball and the diamond cricket ball have underlined the creativity of Sri Lankan craftsmen, they are absolutely brilliant."

Blue Diamonds Worldwide has 20 of their jewellery stores scattered all over the world only excluding the African continent.  Each item bought from any of these stores comes with a life time guarantee on the setting process. Blue Diamond will repair or replace any item free of charge if the 'floating diamond' setting is damaged in the normal use  excluding deliberate or malicious damage.

The company boasts stringent quality control and also boasts a magnificent product range of ladies and gents jewellery, using gold and white gold with diamonds and coloured gemstones, both precious and semi precious.

These are produced in the country's largest cutting and polishing factory, where they have now started to also produce jewellery.

NCAR reborn as NKAR

In 1980, almost 25 years ago a family from the south of Sri Lanka with the name 'Nanayakkara' established a business named 'NCAR'.

The name 'NCAR' was appropriate, harmonising as it did with Nanayakkara, and this small enterprise, which primarily focused on car rental services soon began to grow, providing the legendary "Southern Spirit of Entrepreneurship."

Much as the tiny acorn planted in fertile soil soars to great heights, NCAR grew in strength and size over the years to include airline ticketing and leisure, soon developing into a leader in destination management and airline representation as General Sales Agent (GSA).

"Accelerated development programmes were implemented resulting in the expansion of links overseas. And at this point we realised that the name 'NCAR' did not accurately encompass the many facets in the company's current portfolio. Our focus today covers many businesses and yet, the name could imply that we are still confined to being a car rental company," said Managing Director, Nilmin Nanayakkara.

"Proud as we are of our beginnings, for its it good to know that we have achieved our present status through the dint of hard work and dedication, we feel the time is now right for a change. Nothing stays static and this is very true of our organisations - we have moved with the times, even ahead of the times, and today we introduce ourselves as NKAR Travels & Tours (Pvt) Ltd., said Nanayakkara.

"Our new name retains the same familiar pronunciation and we would continue to serve you with the same dedication and commitment as we have over the past quarter century. Yet the familiarity ends at this point and with our new name, NKAR assures you that we will take you even further, providing a seamless service," said Nanayakkara.

Dialog GSM launches walkie talkie service

Dialog GSM recently announced the launch of Push 'n' Talk - a new  voice communication service that allows users to participate in voice chat at the push of a button on their mobile phones. This latest advancement in GSM technology enables subscribers to transmit voice messages to many others simultaneously, greatly enhancing the convenience and utility of the Mobile Phone.

Push 'n' Talk combines the "walkie-talkie type" push to talk service with other multi-party instant messaging functionality based on SMS and MMS. Dialog GSM has collaborated with international technology Fast Mobile to launch the service, which is the first such service to be launched in Sri Lanka.

Push 'n' Talk allows users to start a one-to-one or one-to-many voice communications at the push of a single button, instead of dialing. The Push to Talk (PTT) Service will be available through the Dialog GSM's GPRS coverage areas and is also available overseas in countries where Dialog GSM has GPRS roaming facilities.

PTT has proved to be extremely popular in all markets in which it was launched with subscribers utilising the service for business as well as leisure and entertainment. While communicating with closed user groups on frequent multi-cast basis on many business applications, the creation and communication with "buddy groups" has shown growing popularity among subscription from the younger generation.

The new service provides both business and personal users clear benefits - corporate users can adopt Push 'n' Talk as an immediate and reliable way of managing a team of people better. Personal users will find Push 'n' Talk an ideal way to keep in touch with friends and family because of the ease of instantly communicating with each other as a group at the touch of a button.

Push 'n' Talk has virtually no boundaries - it works seamlessly across most major GSM cellular networks - enabling subscribers to stay connected to their PTT contact even while roaming. Major mobile phone manufacture Ericsson, Motorola, Nokia and Siemens collaborated on  Push to Talk over cellular standards to ensure that their products worked with each other. This enables the implementation of the PTT facility across GSM mobile phone categories, thus giving end-users more freedom to chose a handset of their choice.

Dialog GSM customers can now subscribe to Push 'n' Talk by registering for the service. Handset compatibility however is required. The service works on all GPRS handsets powered by the Symbian operating system such as the Nokia 3650, 3660, 6600, 7650, Ngage; and Sony Ericsson P800 and P900.