Business

Government U turn on privatisation policy

By Mandana Ismail Abeywickrema 

The UPFA government has made a sudden U turn with regard to its policy on privatisation of state owned assets.

The past week saw the Public Enterprise Reform Commission (PERC) calling for Expressions Of Interest (EOIs) for several state enterprises - BCC, Embilipitiya Paper Mills, Valachchenai Paper Mills, etc., for "restructuring."

PERC has also called for interested parties to come forward to purchase outright blocks of land from the former Colombo Commercial Company land at Sir James Peiris Mawatha.

Under the guise of introducing a new approach and concept, the Public Enterprises Reforms Commission (PERC) is inviting representatives of the employees, or any other social interest groups, to submit proposals or suggestions, in respect of each project, when soliciting an EOI, so that the 'views' of all stakeholders, and other social interest groups, could be taken cognizance of, in formulating the way forward for the respective projects to be re-developed and / or developed in conformity with PERC's functions. Whatever the terminology used, in almost all the cases, it is a matter of 'selling out.'

Interestingly, the JVP, a vociferous critic of privatisation of public assets, has remained silent.

Responding to a question raised by former Deputy Finance Minister and UNP MP, Bandula Gunewardena in parliament recently as to whether the government planned to sell BCC, Plantations Minister, Anura Priyadarshana Yapa was quick to admit the government would indeed go ahead with the sale. However, he maintained it would be done in a transparent manner.

JVP MP and Deputy Small and Rural Industries Minister, Sunil Handunnetti at the time interrupted saying the government would not sell any state asset.

Opposition MPs observe the JVP, which stoically opposes privatisation, is silent either due to the need to stay in power or due to a lack of understanding of the various forms of privatisation.

Privatisation of public entities could be done in various forms - complete sale, privatisation of management while holding on to ownership, leasing to the private sector, selling either 51% or 49% of the shares, etc.

Privatisation of public entities was undertaken to reduce the budget deficit by ridding loss-making enterprises from the government's shoulder.

According to analysts, PERC has been mandated to bring in a specified quantum of revenue and the Ceylon Electricity Board (CEB) and Ceylon Petroleum Corporation (CPC) would also be included in the list of companies billed to be privatised shortly.

Chairman, PERC, Nihal Sri Amarasekera and Director General, L. Wickremarachchi were not available for comment despite repeated attempts by this newspaper to contact them.

PERC now functions directly under the purview and direction of President Chandrika Kumaratunga and has been re-launched with a new logo and approach: "to do the right thing, the right way, to support the initiatives of the government to re-build the country, with a strong vibrant economy, based on a national agenda."

The PERC website also has been re-designed in which PERC functions and the several ongoing activities and assignments of PERC are listed.

According to the PERC website, EOIs for several re-development and / or development endeavours are being invited to pursue re-developments and / or developments, essentially on a strategy of a public-private partnership approach, taking into cognizance the interests of all stakeholders, to achieve the broader goal of socio-economic development of the country.

PERC is also in the process of establishing a dedicated unit to re-structure and re-organise certain identified public enterprises, with a view to assisting them to achieve viability, taking into account the interests of all stakeholders, including the public.

TRC to implement CPP soon

By Shehan Moses

The Telecommunication Regulatory Commission (TRC) hopes to introduce the long awaited Calling Party Pays (CPP) system within three months, despite heavy resistance from fixed line operators.

Under this system, the fixed line call charges - including cellular, mobile termination charges, and existing national call charges - would increase.  For example, if a caller uses Sri Lanka Telecom (SLT) to make a call to a mobile phone user during peak hours after the CPP system is introduced, the caller would have to pay Rs. 11 for 201-1,000 units rather than the present Rs. 6 - an 83% increase. Callers would also have to pay double the present rate if they use over 3,000 SLT units.

Speaking to The Sunday Leader, Technical Director, Suntel Ltd., M. Ramasundara said Suntel would oppose this system due to the high tariffs that would be implemented. "As a concept the CPP system would benefit the public. However, the extraordinary rates charged from this system would affect both the consumer and fixed line operators," he said, adding that CPP systems were successfully introduced in both India and Singapore because those systems did not charge high rates from fixed line callers unlike the TRC recommended rates.

Ramasundara accused the TRC of trying to mislead the public using its advertisements seeking public views regarding the implementation of the CPP. "TRC does not give a clear picture of the CPP in its advertisements, and only shows the increased rates of fixed line operators when calling mobile phones. However, technically mobile phone users would also have to pay when calling mobile phone users. The fixed line calling rates would increase from 71% to 572 % when calling a mobile phone user," Ramasundara said.

According to Director General, TRC, Anura Amarasekara, under Section 12 of the Telecommunication Act No. 25 of 1991, TRC would have a public hearing based on the written requests submitted by the public regarding their views of the CPP system and would then take a final decision regarding its implementation.

A senior official from TRC said upon the introduction of the CPP system, 'the efficiency of mobile phone operators would increase.' Although TRC planned to switch over to the CPP system several years ago, the process was delayed due to various technical reasons.

"Last year it was not introduced due to reasons such as government changes and individual complaints made against the CPP system. Therefore TRC had to hold back the implementation process,"said Director Legal Affairs, TRC, R Amarasiri. According to a senior official from Celtell Ltd., the introduction of the CPP system would increase the growth of the mobile market.

The present annual growth is 6% and this figure is expected to increase rapidly, thereby encouraging mobile phone usage.

PATA to help Sri Lanka

Chairman, Pacific Asia Travel Association (PATA), Ram Kohli and President and CEO, PATA, Peter de Jong arrived in Sri Lanka last Thursday to assess the situation and help re-launch Sri Lanka as a part of its Asian Initiative.

Addressing the media on Friday, February 18, de Jong said the PATA Asian Initiative is focused on redeveloping the region and what is important right now is fighting the perception that Sri Lanka was completely destroyed by the tsunami. "The perception of the damage is far greater than the reality. PATA is fighting this misconception," he said.

PATA is also promoting tourists to the region and is working with the local chapter to see what can be done to support and assist projects that would help restore the tourism industry, and the lives and livelihoods of those who derive their existence from the industry. According to De Jong, the lack of information is a major problem and the focus should be on getting across a message of solidarity on the lines of "if you want to help us, come and visit us."

PATA is looking at a variety of funding proposals and during this visit, described as a "listening" tour, will see what PATA, as an association, can do to help. PATA has also set up a tsunami recovery fund to aid Sri Lanka and other affected countries. PATA is also working behind the scenes with governments with regard to travel advisories.

Shell unhappy with LPG market

The quality of market for LPG business in Sri Lanka is poor and there is neither a proper regulatory framework for the LPG industry nor an independent LPG regulator available; instead there is price control in place now and we have seen decisions that are erratic and unilateral, said Director (Corporate Affairs and Marketing), Shell Gas Lanka Limited,

Dr. Mahesha Ranasoma in an interview with Dinesh Weerakkody. "It is a strategic weakness in the investment climate for the LPG business that has failed to increase the number of serious competitors up to now. It is perhaps only when the government is able to take urgent remedial steps to curb this weakness that we may truly improve the level of good competition in the market and allow the consumers to reap the benefits," Dr. Ranasoma further said.

Following are excerpts: 

Q: In Sri Lanka we talk of free markets and competition. However LPG companies are allowed to fleece consumers in the guise of escalating operating costs?

A: I disagree with you. Before we talk about our product, I think we must set the context within which we refer to markets and competition. I believe that the term market must be considered in the context of "the quality of a market" and the term competition must be considered in the context of "healthy competition on a level playing field."

There are several indicators that one may use to describe the quality of a market. These include the ability to protect intellectual property. Intellectual assets such as brand, reputation, trademarks and patents could be highly valued assets, availability and conformity to product and service standards.

Standards could mean a whole array of things: specifications, quality standards - ISO, codes of practices, industry best practices, independent ratings, and so on. One could measure these indicators in markets for different products/services and then form a reasonable view on the quality of market for the market offering concerned, which I believe is the meaningful context to refer to markets.

We can likewise, take a closer look at what is meant by healthy competition. I believe it means ethics and values nurtured and practiced by marketers while pursuing business objectives. These include, good governance practices, (transparency and consistency), socially responsible behaviours (CSR), are for environment, and not resorting to anti-competitive practices such as price fixing, predatory pricing to force competitors out, deceptive pricing to hide true value from the consumer, dumping prices or selling below cost, all forms of market sharing between competitors, arrangements between competitors to restrict output and abuse of market power by a dominant firm.

Q: Are you advocating an aggressive free market?

A: Yes, a good quality market provides a level playing field for healthy competition. When this is the case, there could be many benefits to consumers as well as competitors.Among the main benefits to consumers are, broadening the choice availableto consumer, innovative value addition to product/service offers, ability for consumers to choose value for money (fair prices, customer success), greater penetration into un-served markets so that more equitable distribution of benefits could potentially occur and good investment climate and opportunities for further investment and production.

The reverse is also true when market quality is poor or has deteriorated and one could expect non-serious competitors to operate in such markets. In this sort of case, I would say that all the potential benefits of market and competition to consumers that we discussed earlier would be at risk.

Q: LPG business in Sri Lanka is controlled by two players. Can this change?Is there room for more players?

A: The estimated penetration of LPG among the households stands low at 25 to 30% with only two key players operating and the third player who entered the market more or less dormant at present. So we have an oligopoly (more specifically a duopoly) market structure right now in a country that has significant growth potential.

In terms of size or consumption, the LPG market in Sri Lanka is about 150,000 to 160,000 mt per year. There is therefore quite a good scope for new competition to enter the Sri Lankan LPG market. Our own journey in this market will complete 10 years by the end of 2005 and we are into the fifth year after the exclusive period for Shell Gas in 2000. Yet, we have seen only one serious competitor entering our LPG market.

Q: Why aren't new players coming in to Sri Lanka?

A: There may be many reasons, but I wouldn't rule out some factors that we discussed before in terms of the market's quality and the resulting investment climate.

It is a strategic weakness in the investment climate for the LPG business that has failed to increase the number of serious competitors up to now. It is perhaps only when the government is able to take urgent remedial steps to curb this weakness that we may truly improve the level of good competition in the market and allow the consumers to reap the benefits.

Q: In my view the government must protect the consumer by regulating the supply and demand. Do you believe the government should not let go of regulation in a hurry?

A: We need to understand the role of a regulator. I believe that it is to ensure that all stakeholdersare given equitable treatment balancing short-term and long-term issues. When this equitable principle is practiced, not only the consumer interest, but also the interests of all stakeholders should receive a fair consideration in the decisions by a regulator regardless of the market's competitive nature.

Q: Perhaps aggressive price regulation or monitoring is what we need?

A: There can be several forms of price setting. You can have discretionary pricing as in the case of government controlled utilities and businesses where discretion is used to set the price. Then there are situations where prices are controlled by price caps. Prices also can be controlled by way of regulating revenue or profits, sometimes referred to as rate of return price regulation.

However, none of these can really beat market forces based pricing. There is empirical evidence that market based prices consistently deliver value of money than any form of regulated prices. This allows the consumers to choose what they want whereas price control reduces choice.

'Rail' by Adaid

By Pelham Juriansz

'Rail' - an unusual title for an exhibition and sale of paintings - will be held at the Slave Island Railway Station on February 23 (Poya Day) and continue on February 25 and 26 with a break on February 24.

The innovative idea to start Adaid, the organisation that is conducting this exhibition, was the brainchild of Adrian Ferdinands and Mike Masilamani, who explained why a railway station was chosen. The idea to have this at a railway station began with Adaid, a group formed to help especially the children affected by the tsunami.

A railway station was chosen as it is a meeting point for a number of people and many different people from different walks of life could come to such an auction without any inhibitions. The amount needed to fund these children is Rs. 2.5 million and actually two fund -raisers have been planned.

"Rather than have it in a art gallery we decided to have it in a more accessible place," explained Masilamani. One is the said auction and the other an auction of cricketing memorabilia (probably to be held at the Cricket Club).

The group Adaid is made up of about 20 advertising agencies in Sri Lanka, and the sale of paintings will be by Muhammed Cader, Mahen Chanmugam, George Claessen, Nelun Harasgama, Upali Herath, Shehan Madawela and George Keyt. The auctioneers will be Tracy Holsinger and Deshan Tennakoon.

Adaid is also trying to commission a profile of children displaced by the tsunami. This is being done through an independent research agency, Survey Research Lanka, and will cost Rs. 2.5 million.

'Rail,' as the event is appropriately called, will be more than an auction. There will also be a sale of work of photographers, musicians, dramatists, cartoonists, writers and poets, as well as unusual cards, secondhand books and even a massage!

Audit of advertising spends

An innovative media audit on ad-spends is being pioneered for the first time in Sri Lanka by Time Media Audit Pvt. (TMAPL), an associate organisation of Time Monitoring Services (TMS) in India.

TMS introduced the state-of- art services in media monitoring across all medium to the entire media fraternity. With the vast media experience and high tech infrastructure, TMPL is here to offer a revolutionary concept in media monitoring to its Sri Lankan media fraternity. Its services will cater to all segments across media industry, viz. ad agencies, advertisers, broadcasters, media houses, etc. TMPL aims to cover all the three major media: print, radio FM and TV. The focus of TMPL's services as a 'third party authentication' will feature the unbiased delivery of information within 24 hours through electronic transfer with highest levels of accuracy, which will be a boom for advertisers and ad agencies in justifying their ad spends by assessing GRPs and other ratings instantly and accordingly reschedule their ads.

Interest rates unchanged

The Monetary Board has reviewed the recent economic developments and projections and decided to maintain the policy interest rates of the Central Bank of Sri Lanka at the current levels.  The following is an assessment of the factors that were taken into consideration in arriving at this decision.

Considering the need for  facilitating expenditure relating to rehabilitation and reconstruction activities, the Monetary Board has decided it is appropriate to leave the current monetary policy stance unchanged. Accordingly, the policy interest rates of the Central Bank of Sri Lanka, i.e., the repurchase rate and the reverse repurchase rate, will remain unchanged at 7.50 percent and 9 percent, respectively.

With the continuing improvements in all the key sectors in the economy, the initial projections have revealed that the overall growth in 2005 would be around 5.5 percent. The relief, rehabilitation and reconstruction work initiated by the government in the tsunami-affected areas will help mitigate the negative impact of the tsunami disaster, particularly in the fisheries and tourism sectors, which have already begun to recover.

The services sector, which provided the main impetus to economic growth, will continue to play a leading role with the main contribution coming from transport, storage and telecommunications sectors. The agricultural sector is expected to see a turnaround in 2005 due to favourable weather conditions. The industrial sector output is expected to expand with the major contribution arising from the textile and apparel sector. A healthy growth is also expected in the construction sector mainly due to post tsunami reconstruction activities.

The growth in export earnings is expected to continue in 2005, mainly benefiting from the expected global economic growth. The imports for relief, rehabilitation and reconstruction will further increase the total import bill in 2005.

However, with the expected foreign financial assistance for tsunami-related expenditure, the increase in remittances, and foreign debt relief provided by donors, the overall balance of payments is projected to record a surplus in 2005, increasing the external reserves, thereby reducing the pressure on the exchange rate.

Though the overall budget deficit is expected to be higher than the original target of 7.6 percent in 2005 due to tsunami related expenditure, such expenditure will be financed through the receipt of concessional foreign assistance. Furthermore, the government's domestic borrowing requirement will be lower with the expected debt relief.

Although inflation continued to rise in January, this year, inflationary pressures are expected to moderate somewhat in the next few months due to favourable supply side factors. On account of the higher than expected increase in credit to the private sector, monetary aggregates have been growing at a somewhat higher rate than the desired level. Growth in monetary aggregates by end December 2004 was 19.6 percent.  Overall growth in monetary aggregates is expected to be contained at around 15 percent in 2005. 

Colorzone Plus launched

Colorzone (Pvt) Ltd. recently unveiled Colorzone Plus, a new hi-tech and modern facility, as a response to the diverse demands of apparel manufacturers and to successfully service the embellishment requirements of the highly competitive apparel industry.

The new venture enables the company to offer computerised multi head embroidery, automatic screen printing, heat transfer printing and other embellishments to the apparel industry.

"Colorzone, which has accreditation by major international brands such as Marks and Spencer, Nike, Gap, Reebok, Next, Disney, etc., has made great strides in the field of printing on apparel and this new move will enhance its scope of activity to serve it clients with variety and versatility," Chairman / Managing Director, Firoze Cassim said.

The new building houses three units of nine colour / 20 head embroidery machines with onecapable of sequin attachments as well. A four head sample machine is also available with design punching facility to develop speedy samples. A brand new fully automatic screen printer capable of executing large 12 colour prints is the latest addition to its printing plant.

Snippets

HNB fund managers conference

With investors looking for a direction to channel their investments, a fund managers conference on the 'Way Forward For The Sri Lanka Economy And The Colombo Stock Market' is expected to provide the much-needed direction to convert this challenge into an opportunity and stimulate investment ideas. The conference will be held on February 25 at the HNB Auditorium at HNB Towers from 4 p.m. onwards. The welcome address will be delivered by Chairman, HNB Stock Brokers (Pvt) Ltd., Rienzie T. Wijetilleke and the keynote address will be delivered by Finance Minister, Dr. Sarath Amunugama. The introduction of the research report and presentation will be done by Head (Research), HNB Stockbrokers, Hasitha Premaratne. Sector presentations at the conference will be: Financial sector - Chairperson, LOLC, Rohini Nanayakkara; Construction - Chairman, Tudawe Brothers Ltd., Rohan Tudawe; Transportation - Director, P&O Nedloyd Sector Head, JKH, Romesh David; Exports and non traditional agriculture products - Managing Director, HJS Condiments Ltd., Sector Head, Hayleys Group, Anil Wickremanayake; Power sector - Managing Director, Hemas Power, Kishan Nanayakkara; Travel and tourism - Managing Director, Jetwing Hotels Ltd., Hiran Cooray. A panel discussion on sector presentations and the conference theme will also be conducted. The panelists are Country Director, ADB Sri Lanka, Alessandro Pio, Chairman / Director General, National Peace Secretariat, Jayantha Danapala, Chairman, Colombo Stock Exchange, Eraj Wijesinghe and Deputy Governor, Central Bank and Co Chair, Financial Sector Cluster, NCED, Dr. Ranee Jayamaha. The vote of thanks will be given by General Manager / CEO, HNB Stockbrokers, Deva Ellepola.

CIMA breakfast meeting

Dr. Mike Bourne from the Cranfield School of Management, UK, will address Sri Lanka's chief financial officers on 'New Departures in Planning and Budgeting.' Cranfield is one of the best known business schools in the UK and is rated number three by the Economist Intelligence Unit. Dr. Bourne has authored over 100 articles and books on subjects such as the balanced score card, performance measurement and business excellence. He will explain to the chief financial officers that budgeting techniques in use today have to change along with everything else in the rest of the world and will bring together research in this area conducted at Cranfield which looks at the rules of planning and budgeting in delivering value to shareholders together with some best practices observed and practical steps organisations should consider in their budgeting processes.

MBSL declares 05% dividend

Merchant Bank of Sri Lanka (MBSL) announced a first and final dividend of 05% for the year 2004 subject to shareholder approval at its AGM scheduled for end March.The dividend will be paid on March 31. MBSL was listed in 1991 and paid dividends every year until 1996. The highest dividend of 30% was paid in 1991. "Since 1998, MBSL has followed a strategy of steady growth backed with good systems and procedures. After learning lessons from the past, MBSL will not embark on high risk ventures. Investors are therefore unlikely to see spectacular results but would more likely see a steady growth," Managing Director, MBSL, Sunil Wijesinha said.

ISF seminar on disciplinary inquiries

A seminar on disciplinary inquiries organised by the Industrial Security Foundation (Sri Lanka) will be held on February 22 at The Learning Centre, YWCA. The seminar is for senior security personnel, investigators, industrial relations officers, HR executives and administrators in both public and private sector organisations. The objective of this seminar is to educate and train investigating officers to understand the ingredients of an offence the manner of recording statements, the need to take charge of the  correct productions and to keep them in custody, and the preparation of the final report on the investigation. It will also provide advice on the role of the investigating officer at a domestic inquiry.

PC House wins two key ICTA projects

PC House (Pvt) Ltd. has been awarded two key projects by the Information and Communication Technology Agency of Sri Lanka (ICTA) valued at a total of Rs. 36.5 million. Both projects are funded by the International Development Association, and are part of the e-Sri Lanka Development Project. Valued at Rs. 15.5 million, the first is a 'Distance Learning Project' aimed at enabling rural areas to access global and national sources of knowledge and learning, and increase the access of public and private sector professionals to global information and innovations. Chairman, PC House, S.H.M. Rishan said this was the very first time that Sri Lanka's rural areas will be provided with a comprehensive multimedia experience. "Under this project, video conferencing facilities will be provided to the proposed Distance Learning Centres in the University of Jaffna, South Eastern University in Olluvil, University of Peradeniya and Beliatta. These will, in turn, be linked to the Distance Learning Centre at SLIDA," he added. Valued at Rs. 21 million, the second is ICTA's 'Vishva Gnana Kendra' (VGK) project which comes under the purview of Prime Minister Mahinda Rajapakse. "This project is aimed at taking ICT knowledge to rural Sri Lanka and to harness the benefits of ICT towards achieving its overall objectives of poverty reduction, socio economic development and peace building," CEO, ICTA, Manju Haththotuwa said.This first phase will provide 50 telecentres (VGKs) to provide access to information in geographical areas such as Badulla, Galle, Hambantota, Matara, Moneragala and Ratnapura. The second phase will provide 50 more centres in Jaffna, Trincomalee, Anuradhapura, Polonnaruwa, Vavuniya, Mullaitivu and Kilinochchi.

Cathay Pacific presents HK$ 75 million
tsunami cheque to Red Cross

Chief Executive, Cathay Pacific, Philip Chen presented the Assistant Director (International and Relief Service), Hong Kong Red Cross, Lady Wu with a cheque for HK$ 7 million raised from staff and company donations to help the victims of the tsunami rebuild their lives. The company kicked off the fund-raising effort for the Cathay Pacific Southeast Asia Disaster Relief Fund with HK$ 1 million on December 29, 2004, then matched dollar-for-dollar every donation made by staff until the initiative ended on January 28. The airline and sister carrier Air Hong Kong also mounted special cargo flights to Sri Lanka and Indonesia. In all, Cathay Pacific and Air Hong Kong flew more than 200 tonnes of relief supplies. The airline also carried more than 40 strong search and rescue team and sniffer dogs from Paris to Colombo.

SLID proposes disaster preparedness for Sri Lanka businesses

'Learning From The Tsunami; Integrating Disaster Preparedness Into Business Practices' will be the topic at a breakfast meeting conducted by the Sri Lanka Institute of Directors (SLID) to be held at the Salon Orchid, Galadari Hotel, on February 24. SLID is a leading forum for company stewards in Sri Lanka. In line with its objectives, the institute is organising this event addressing the long-term, positive and sustainable changes to be adopted by companies in order to evade or minimise the effects of similar calamities in the future. Concerns on how to incorporate this new sphere of management into businesses will be addressed by Director, External Programs of Learning Initiatives for Reform in Network Economies, Prof. Rohan Samarajiva. This would be an open and interactive session.

advertorial

NKAR - name change significant

By Pelham Juriansz

NKAR Travels and Tours Limited, formerly known as NCAR Travels and Tours, has replaced the C with a K. Why the change? Well, the name change is significant because after 25 years of business it became imperative that K replaces the C.

Explaining the change in his plush office at Dharmapala Mawatha was Managing Director, NKAR Travels and Tours, Nilmin Nanayakkara.

Twenty five years is a long time and the business idea started by Nanayakkara at that time was to have a car rental company, but that perception changed over the years.

The 'N' stood for the 'Nanayakkara' in the name and 'car' stood for the car rentals. But the visionary Nanayakkara did not stop there. He diversified within two years into an airline ticketing agency at Bristol Street, Colombo 1. Just three employees and 250 sq. feet of office space was sufficient at the time. Now 25 years down the line, they have their own building at  Green Path and boasts of a staff cadre consisting of 100 employees.

"I recognised the potential in ticketing though the ticketing business was competitive. I managed to build a sizeable clientele. And within six years we won our first award, which was the 'Best Sales Agents Award.' In 25 years we have won about 45-50 awards in different areas. We continued to progress in airline ticketing, using the strength of the Middle East market and corporate business.

"In 1988 just eight years after starting we got into corporate business. Then we concentrated on inbound tours. Today we operate holidays to places like Australia, China, Hong Kong, Far East, United States, United Kingdom, Europe, all SAARC countries (except Bhutan and Nepal), safaris to Kenya, South Africa and of course the Holy Land as well," said Nanayakkara.

"In addition NKAR has been appointed as the PSA for Star Cruises in Sri Lanka. In 2000 we established our 'Outbound' holidays. In 2002 we bid for the GSA for Pakistan International Airlines (PIA) and the competition was very heavy but despite the heavy bidding we won the GSA for PIA.  I consider this a great achievement. We then established our sister company, NKAR Sky Clan (Pvt) Ltd., to handle the GSA," said Nanayakkara.

Explaining further the change of name, Nanayakkara said that as much as a tiny acorn planted in fertile soil soars to great heights, NCAR (as it was known at the time) grew in strength and size over the years to include the airline and ticketing wing, soon developing into a leader in destination management and airline representation as General Sales Agents (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 reflect or 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."

"Proud as we are of our beginnings, for it is good to know that we have achieved our present status through 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 organisation - we have moved with the times, and even ahead of the times, and now we introduce ourselves as NKAR Travels and Tours (Pvt) Ltd.," explained Nanayakkara.

"Our new name retains the same familiar pronunciation and we would continue to serve 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."

"We have not achieved all this through quick bucks, but through patience and working well within the laws of the country and the industry. We have won the respect of all embassies and foreign institutions and that is proof of the clean way of being in business. We have a lot of plans for our 25th year which we will reveal later," added Nanayakkara.

SLIM and TNS unveil 'Sri Lanka Icon 2005'

Sri Lanka Institute of Marketing (SLIM), the national body of Sri Lankan marketers and vice president, Asia Pacific Marketing Federation (APMF) together with TNS Lanka, a 100% owned subsidiary of TNS, a leading global provider of marketing information have constituted a new award to recognise Sri Lankan icons. The initiative, which was launched formally last month will culminate with an awards ceremony slated for March 28.

The theme of this award scheme is "Power to the people" and the award is being referred to as SLIM-TNS Icon 2005.

In the Sri Lankan context there are awards and awards. Yet, there appears to be little cognizance of the people's choice in these awards.

"For the first time in the history of Sri Lanka, the award format aims to reflect the views of the common man in deciding the best of the best. Our core premise is that it is this stake holder who can be the best judge of success. And hence the moot idea of the SLIM-TNS Icon Awards is to uncover the choice of the people and allow this all important stakeholder in deciding the best, most admired, most respected.

"The vision is to support and foster the development of society, leading to recognition of icons of Sri Lankan society," SLIM said in a media release.

The mission is to recognise and reward those that reflect the aspirations, values, and perceptions, of the everyday man.

A large-scale national market survey will form the backbone of ascertaining the response of the common people. Conducted by TNS Lanka, 2500 people across the island will be interviewed, representing all sections of society. Scientific sampling methodology and techniques will be used to ensure that an unbiased view of the people is reflected.

There will be no formal eligibility criteria because the process does not warrant limiting the choices among entries as decided by a paned of judges but rather allow people to spontaneously suggest their preferences in each award category.

A team from SLIM Secretariat will oversee design of questionnaire and make spot checks on the quality of the data collection and be involved in the analysis and reporting of the data. An independent audit company will verify the results.

The award categories;

1.    Best brand

      a.      Overall

      b.      Food

      c.      Beverages

      d.      Personal Care

      e.      Household Care

      f.      Automotive

      g.      Entertainment and leisure

      h.      Information and communication technology

      i.      Office automation/business education and support services

      j.      Agriculture/Building Construction/Industrial Equipment

      k.      Banking and Financial Services/Investment/Insurance/Real Estate

2.          Favourite advertising

      a.      Overall

      b.      Preferred by kids and teens (8-9 years)

      c.      Preferred by housewives

      d.      Preferred by white collared workers

      e.      Preferred by blue collared workers

3.          Most contributed to community development

4.          Best entertainer - performing arts

5.          Best entertainer - non performing arts

6.          Favourite Sportsman

7           Ideal leader with Sri Lankan values

8.          Newsmaker of the year - 2004

9.          Landmark best synonymous with SL.

Imperial Institute - typical British higher education

Imperial Institute of Higher Education (IIHE) was formed in 1996 with the objective of providing high quality undergraduate education to students who wish to obtain a British degree at a fraction of the cost of doing such in the UK itself. Its focus has so far been Business Administration as there was both a need and a growing market for good quality graduates in that area. Imperial began by offering the University of Wales BSc (Hons) in Business Administration.  In 2001 it took the next logical step by launching the University of Wales MBA Programme.

University of Wales founded in 1893 is the second oldest and second largest Federal University in the UK (with over 90,000 students) and has a long and distinguished academic history. The university awards over 14,000 first degrees and about 3,000 higher degrees annually.  His Royal Highness Prince Charles serves as the Chancellor.

The University of Wales (UW) is the degree-awarding authority for its 10 constituent institutions namely UW-Aberystwyth, UW-Bangor, UW-Lampeter, UW-Swansea, UW-Institute of Cardiff, UW- Newport, North-East Wales Institute, Sawnsea Institute of Higher Education, Trinity College Carmarthen and Royal Welsh College of Music and Drama. 

University of Wales degrees are also awarded for programmes offered at over 60 validated centres within the United Kingdom and across the world in countries as diverse as Canada, France, Germany, Greece, Ireland, India, Singapore, Japan, Malaysia, Russia, Switzerland and Sri Lanka. In Sri Lanka in addition to the Imperial programmes the University offers the LLM in International Trade Law through the Law College

Study Programmes

The BSc (Hons) in Business Administration is a three-year full time degree programme. The "academic" is intertwined with the "practical". The teaching and learning strategies support the acquisition of both knowledge and skills. It prepares students to move into the world of work both nationally and globally as persons capable of meaningful contribution particularly as managers and leaders.  The programme is broad-based as is appropriate for the management field. It is possible however to seek some specialisation in the final year in a functional area of business such as Marketing, Human Resources or Finance.

Our typical MBA student is working and adopts the part-time mode of study. The standard pattern involves the taught modules spread across three semesters and a research component that is generally completed within two semesters such that it normally takes about two and half years to complete. A quicker full-time route is also available.

The MBA supports the building up of a solid analytical framework and of the skills needed at higher levels of management through a reflective and pragmatic approach to learning. We can proudly claim that in the end our MBA becomes a solid foundation to face a constantly changing world.

Validation

When foreign universities come into countries such as ours, they generally follow two models - Franchised or Validated.  In a "franchised" set up one offers the same course in the same manner but locally. So the local organisation "delivers" the programme and administers the "examinations".

In the case of Wales and Imperial, the mechanism is "validation". The local academic team "develops and owns" the programme and it is Wales that decides - and continuously monitors - whether it is of the standard to qualify for the award of a University of Wales Degree. The synergy ensures that it remains responsive to the Sri Lankan market as well as to global trends. The students benefits as they have the opportunity to reach high levels of employability locally and globally.

Certificate - One very important fact is that our graduates receive the same degree certificate as those students who physically reside in Wales and attend one of the constituent universities.  "This is very important because there is confusion about whether this is an internal or external degree - ours is an internal degree. We have a graduation ceremony each year locally here. However, every June, we get a request from Wales to indicate the names of the graduands who wish to participate in that year's formal Graduation Ceremony at Wales. Of course not everyone can afford to go there but we have had a number of students who did opt to go there and walked up along with all the other Wales-based graduates to receive their degree certificates," said a spokesman for Imperial Institute. 

Quality Assurance

The University of Wales is subject to control and monitoring by UK's independent Quality Assurance Agency (QAA) for Higher Education.  "As we offer degrees from there, we have no choice but to be subject to the same logic and processes as applicable to the University of Wales. It is demanding on us all . on the academic staff, the administration, the Institute as such . and even on the students. But in the end all of us, including the students, are happy because of it. The net result is that our degrees bear a stamp of quality and therefore the effort we put in is worth it.

"The study programme as such has to be accepted as appropriate. This is through validation initially, and re-validation generally every five years. With regard to every study programme/degree we have to document and justify the aims and objectives, the contents, each subject/module and its place within the whole, the knowledge and the skills acquisition, the progression from year to year from initiation to analysis and synthesis and to application of knowledge gained, the appropriateness of the learning, teaching and assessment strategies within the context of the outcomes etc.

"The mechanisms for student support and for student involvement, the resourcing plan, the staff base and the staff development plans, etc., are all checked. The validation panel that visits the Institute for this purpose knows how to "grill" us so as to be sure that we know what we are talking about, have thought things through, and are capable of implementing/doing what we propose.

"Once validation or re-validation is granted, then there are the mechanisms for continuous monitoring and review. Our faculty have to prepare the examination papers, model answers and marking schemes about 10 weeks prior to the exam dates. These are sent through the University to designated External Examiners," said the spokesman for Imperial Institute. 

"These examiners review the papers, particularly from the perspective of whether or not the exam is testing the learning outcomes defined for the subject.  They are free to request changes and we have to accommodate such changes. We cannot hold any exam unless the External Examiners have cleared the paper. Then, at the end of every semester, that is twice a year, the External Examiners, the programme Moderator and a Representative from the University of Wales visit Colombo. All answer scripts, all assignments done by the students, and all related material/reports/information have to be made available to them.

"They generally devote about two days using their own mechanisms for assessing the level of performance of the students and the quality of assessment and marking. The Examination Board is held at that point with the participation also of the academic staff of the Institute and, with the External Examiners having the right to make any changes thought fit, the marks are finalised for release to the students, subject ultimately to ratification by the Academic Board of the University of Wales."

In addition to the above there is much that goes on continuously by way of monitoring and review. All of the above steps ensures that a graduate can be satisfied that he or she is achieving something that is widely marketable, respected and precious.

The Quality Assurance is generally handled through the University and through the External Examiners from outside the University. But UK's QAA is finally the arbiter. Any negative judgment from them has serious implications that could lead even to a revoking of the validation.

Teaching and Learning

In the BSc year one is used to lay the foundation while progressively in years two and three the emphasis shifts from lectures to guided reading, learner-centred resource-based activities such as student-led tutorials, case studies, problem-solving workshops thereby moving the student to a situation where they bear the responsibility for their own learning, while staff play a facilitating role. 

The culmination is a dissertation that provides a special opportunity for independent learning and for demonstrating a solid grasp of the theories and concepts, research capability, and the ability to apply knowledge to a problem from business and industry.

The MBA is biased towards a problem-based pragmatic approach to learning where critical and innovative thinking is facilitated with one's own work and experience and that of peers serving as the context, and supports the development of interpersonal and teamwork skills. The research project counting to one-third of the value of the degree highlights the importance of problem investigation and problem solving.

Student's Role

"We referred to "Teaching" and "Learning". We have already highlighted for example the shift of emphasis that occurs in the BSc between year one and year three. The student is central to us. All have the opportunity to evaluate each module and provide feedback. Student representatives play an important role in the Staff-Student Liaison Committee and in the Boards of Study. They thus have a positive role within the Institute. They are supported in a variety of extra curricular activities.  As what we offer are UK Degrees we strive to create and maintain in our own way a UK-University culture which focuses on enriching the student experience," the spokesman for Imperial Institute said. 

Faculty

"Our faculty all local and are eminent academics and/or recognised professionals from industry.  Due to the stringent Quality Assurance, we don't need to have costly expatriate faculty.

Student Performance

"At the time of graduation, in the BSc we have had 22% First Classes, 30% Second Upper, 44% Second Lower, 4% Third Class.  Even the University of Wales has commended Imperial for the very high calibre of graduates. The Wales Representative has commented on this and has said that Wales was very proud that while maintaining very high educational standards Imperial has been able to produce such a number of students who have received "classes". In fact, we did not "give" them classes, but they "earned" them through hard work.

"In the MBA which follows a "Pass" or "Distinction" grading we already have one MBA with a distinction and his dissertation has been placed in the National Library in Wales.  We have about 50 students who have completed their coursework and are now working on their dissertation.  So many students are still working on their dissertation because the Part-Time programme allows a student to take up to five years to complete their degree, so some are taking longer to do complete their dissertation.

Job Prospects

"All our MBA students are working and the degree directly helps them in their career progression.

Our BSc graduates who have chosen to work have found jobs in less than one month of graduation but nothing more than three months.  Our students are employed at companies such as Ceylon Tobacco, Hayleys, John Keells Group, NDB, Slimline, Standard Chartered Bank, Aitken Spence Group, Maersk Lanka, Brown's Group of Companies, Virtusa etc.  Those who have gone for higher studies have done so at universities such as the London School of Economics, Monash University, University of Hull."

Study Locally or Overseas

Going overseas is a good and worthwhile option to consider as it is enriching specially due to the exposure and experience through life in another context and culture. However, not every parent or young person wants to do that nor may be able to afford it.  The total cost of our BSc degree over the three years is under Rs. 1 million whereas it costs about GBP 15,000 per year for Tuition, Housing, Food, Travel, and Clothing etc. which is about Rs. 9 million for the three years.

Therefore, students and parents should consider all options in making a decision. One could for instance do the first degree locally and go for a one-year Masters when one is a little more mature. Or one could do two years of the degree here and transfer to Wales or another university for the final year. Those might be, at least for some, better options than going abroad soon after A/Levels.

Investor and Board

The Chairman is Mahendra Amarasuriya (Chairman of Commercial Bank, United Motors, Pelwatte Sugar to just name a few), Rohan N. Wijeratne- CEO (formerly at the World Bank, former Chairman of CINTEC, Founder Director of Millennium IT and former Board Member of Sri Lanka Telecom and Arthur Clarke Centre for Modern Technologies),  Jit Warnakulasuriya (Chairman/MD of Just-in-Time Holdings a premier IT Company),  Pasan Madanayake (Chairman/Director of companies in the Garment, Chemicals, and Freight Forwarding areas),  Bimal Perera (a founder Director of Millennium IT), and Sabir Jafferjee (business interests in Trading and Export oriented Manufacturing).

LIBM Links With Waikato University In New Zealand

LIBM campus (Lanka Institute of  Business Management Campus) recently singed a MOU (Memorandum of  Understanding) with the Waikato University of Hamilton, a State University in New Zealand to offer the first degree to students in Sri Lanka, who choose the field of Management Science and Electronic Commerce. LIBM campus will provide higher education up to the second year of the degree BMS (Bachelor of Management Studies) and BE Com. (Bachelor of Electronic Commerce) in Sri Lanka and the final year of education is provided at the picturesque  Waikato University in New Zealand.

Chairman of LIBM campus, Aruna Rajamanthri signed the MOU on behalf LIBM campus and Dr. Ed Weymes Associate Dean signed on behalf of the Waikato University. 

LIBM campus is a higher educational institute started on 4th September 2002 to provide competency based education for the students who qualify at the GCE (A/L) and wishes to embark on careers in the ever expanding private sector. The core competencies of their programmes are that they provide an education based on right knowledge, skills, and attitudes with  special emphasis on personal development and developing linguistic  skills in English.  

LIMB conducts a certificate programme in Business Commutation and Information Technology, Diploma in Business Management, Diploma in Computer studies, Diploma in English Language. Also they have the recognition to Conduct classes for CMA ( Chartered Management Accountants) Canada. Recently they launched a new course for those who select Sales as a career, a Certificate programme in Sales Management. This could probably be the first of its kind in Sri Lanka.

Panel of lectures are drawn from the academic  Staff of  leading  Universities in Sri Lanka and professionals holding senior positions in the private sector.

Addressing the gathering at the signing Ceremony Chairman Aruna Rajamanthri said  BMS and BE Com. degrees from Waikato University will give the Sri Lankan students the required international exposure and also drastically reduce their cost of obtaining a degree from a foreign University. He further said that LIBM may be the first to affiliate with a New Zealand University to offer the first degree.

Dr. Ed Weymes said that he was proud and honoured and is confident in building a long lasting relationship with a Sri Lankan institute which is professionally managed.   Guru of this state University of Waikato thanked those who  helped this affiliations to get off the ground. Waikato University is the fourth largest University in New Zealand. University offers a world class education and have already drawn students from 73 countries ranging  from America, Germany, France, Singapore, Malaysia, Korea and Pakistan. University Management School has similar affiliations in the region with India, China, and Hong Kong. Waikato University offers lots of varieties to enrich the campus life of students,  Dr. Ed Weymes said.

Top accountants to visit Sri Lanka

Two world leaders in the field of international accounting standards will be in Sri Lanka next week for a top level regional meeting to be hosted by the Institute of Chartered Accountants of Sri Lanka (ICASL), the country's apex national accountancy body.

Professor Sir David Tweedie, Chairman of the International Accounting Standards Board (IASB) and Board Member Warren Macgregor will hear presentations in Colombo from the national accounting standard setters of India, Pakistan, Bangladesh, Nepal and Sri Lanka at this day-long meeting on Wednesday, February 23.

These presentations will focus on the current status of each country's efforts to adopt International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS), the challenges they face and the steps taken by countries affiliated to the South Asian Federation of Accountants (SAFA) for adoption of these international standards.

"The South Asian Regional Standards-Setters Meeting is one of the most important events for our part of the world in the process of moving to a single set of global accounting standards," ICASL President Indrajith Fernando said. "The ICASL, as the SAFA Centre for Excellence in Standards and Quality is proud to host this milestone conference."

He said the meeting would help the International Accounting Standards Board to evaluate the progress made by countries in the region in moving to international accounting standards and generate valuable discussion on technical and other issues faced by countries in the region in this area. The expectations of SAFA countries from the IASB and the Board's responses would significantly take the process forward,  Fernando added.

Reyaz Mihular, Chairman, SAFA Centre of Excellence for Standards and Quality said a key matter of debate at the meeting would be new trend in Financial Reporting Standards. "International Financial Reporting Standards are increasingly moving to fair value measurement consequences of an entity's performance," he explained. "This trend poses several challenges to countries in the South Asian region where we do not have active markets to support such fair valuations. We will address challenges such as this at our meting."

ACCA carries out research

Since its inception, ACCA (Association of Chartered Certified Accountants) has been involved in promoting greater transparency and thereby sustainability in the local corporate sector. Among the wide range of activities organised to this end, an important venture is the introduction of the award scheme for environmental, social and sustainability reporting namely the ACCA Sustainability Reporting Awards.

Parallel to the Awards, ACCA has also carried out a special research to analyse the current standards of sustainability reporting in Sri Lanka. Their aim is to convey to the business community, the importance of such activities for the continued success of business entities.

ACCA commissioned HNB Stockbrokers, the specialist in stock market researching to carry out the research. The research panel, headed by Hasitha Premaratne and his able team comprising of  eight prominent  researchers with many years of experience to their credit, carried out the analysis of data gathered through the sources such as annual reports and company web sites for a period of two months starting from 30th November 2004.

The top 100 Sri Lankan companies were selected as a sample, to carry out the research. Out of this sample , 75 companies were selected through the Colombo Stock Exchange according to market capitalisation data as at 29th November 2004 and the balance 25 non -listed companies were selected through the information contained in the booklet Sri Lanka's top 100 companies 2003 published by Dun Bradstreet Information Services India  (Pvt.) Ltd. in association with Lanka Orix Factors Ltd.

The research findings of the research panel of HNB Stockbrokers on Sustainability Reporting in Sri Lanka will be presented at the ACCA Sustainability Reporting awards night, which will take place on March 9 at the Colombo Hilton.

Pan Asia goes high-tech

By Ann Nicholas

The fast-paced existence of today's consumer has led to the growing demand for convenience in obtaining any kind of service. Recognising this need for convenience and in its effort to address it, the Pan Asia Banking Corporation (PABC) recently launched 'thumb' banking with the aid of SMS technology.

Speaking to The Sunday Leader, Head, Information Technology, PABC, Sujeewa Dissanayake stated, "Customers no longer want to be confined within the 'brick and mortar' system. They are demanding more convenient, prompt and secure ways of doing banking. We have now introduced a way to do banking with just your thumb, using our SMS banking service."

The bank considers SMS banking as a product that is set to improve the access to clients in a significant way. This feature is available to both personal and corporate accounts and is provided upon a nominal registration fee for the service. In providing the SMS service, the bank has already linked up with Dialog, and hopes to tie up with Mobitel and Celltel in the near future for wider coverage.

"Statistics revealed that customers spend a fair amount of time and money to do banking under the conventional banking system. For example, the payment of utility bills, transfer of funds, inquiring of balances etc., cost the client invaluable time and money. As opposed to this, on considering the current SMS charges, all such transactions can be performed virtually free," observed Dissanayake, adding, "PABC introduced SMS banking last December and within two months of its operation, over 200 customers are actively using this service."

Dissanayake pointed out, "One might argue that similar transactions could be done using phone banking technology, where a normal phone is used for banking transactions. However, on comparison of the call costs and other inconveniences of phone banking, SMS banking is far cheaper, speedy and convenient. Rather than listening to and noting down information on their accounts, customers prefer to see the information in text form. SMS service enables mobility and ability of alerting the customers at any given time."

Some of the features of the SMS service are, inquiry of account balances including foreign currency accounts, mini statements with last five transactions, fund transfers between own accounts to other PABC accounts and credit card settlement, requests for cheque related services and account balance alerts and changes in PIN.

Some of the unique features are the descriptive balance alerts, with float, limits, etc., fund transfers, credit card payments, which are designed to enable corporate accounts for effective fund management, elaborative mini statements and cheque book requests where the manager and representatives are alerted for immediate dispatch and customer update alerts to inform customers of feature enhancements and other product details for better usage of the service.

The bank has invested considerably on improving its IT infrastructure. "Today, IT is the enabler of superior service. Moreover, it should be used to reduce costs so that banks could be more competitive. In keeping with our vision to become the most customer-preferred commercial bank in Sri Lanka, PABC too has invested last year, over Rs. 25 million on the latest technology, to boost up the processor power and to support the envisaged customer growth. Further, the core banking application too was upgraded," stated Dissanayake.

Under the 'e-wave' strategy, the bank continues to introduce innovative technologies to provide convenient ways of doing banking with it. PABC's customers have access to 24-hour ATM services, and all branches are linked so that customers could perform transactions at any branch. Further a 24 hour customer support desk has been opened which is available to report all concerns and suggestions. "PABC values all contributions made and takes every step to enhance its productivity and service levels," said Dissanayake.

Recognising that continuous improvement and innovation is the way forward, the bank is moving its entire network to the advanced IP/VPN technology at the beginning of the second quarter of this year and will introduce internet banking towards the latter part of the second quarter with many innovative features, enabling the customers to do banking at their fingertips.

In conclusion, Dissanayake stated, "PABC believes that customers come first, and the profits follow. During the last year, we consolidated our efforts to see that the infrastructure is in place to support our delivery channels. We are now geared to serve our customers better."

ISO workshop on IT security

Being the pioneering organisation in information system security services, CISCO Information Security Services (Pvt) Ltd (CISS) together with its strategic partner, MIEL e-Security, India have organised a two day workshop on 'Effective Information Security Management based on ISO 17799/BS 7799' for the first time in the country, which is to be held on February 24 - 25 at the Grand Oriental Hotel (GOH) in Colombo.

This two day programme has been designed to give an insight into information security management system (ISMS) certification by ISO 17799/BS 7799 and its implementation process in corporate organisations. BS 7799 was developed in response to a demand by industry, government and commerce for a common framework to develop, implement and measure effective security management practices and to provide confidence in inter-company trading.

The workshop provides an unique opportunity to CEOs, CIOs, policy makers and IT managers to understand the strategic value of benchmarking their information security systems with international standards and to improve competitiveness in the global market.

Also the creation of Business Value of ICT investment is in the top of the CEO's agenda which is not automatic but needs much complementary activities such as ISO 17799/BS 7799 security certification especially for banks, telecommunication, insurance, internal service providers, exchange houses and government agencies to be more competitive in their markets and to differentiate their organisations.

The programme is conducted by Avinash Kadam (IS Security Guru in India) and S. Pathirage (Senior IS security consultant in Sri Lanka) who are industry experts having extensive experiences in information system governance, assurance, and security for over 20 years. The programme is also backed by DNV (Det Norske Veritas) India as an independent auditor for certification.

 Commercial Bank NRFC accounts

Higher rates for higher balances

FC Plus from Commercial Bank is a Non Resident Foreign Currency (NRFC) account that guarantees impressive returns on foreign currency investments.

With an initial deposit of 5,000 in either US Dollars, Euro, Sterling Pounds or Australian Dollars a FC Plus account can be opened at any branch, CSP or MiniCom.  The FC Plus offers the highest interest rates as compared to other banks.

Interest is calculated according to the London Inter Bank Offered Rate (LIBOR) on daily balances and paid at the end of each month.

The rate of interest increases with the balance in the account.  A higher balance means a higher interest rate.

The interest rates applicable for each currency will increase depending on the quantum of the balance.  Deposits upto 5,000 would receive the regular NRFC rate while deposits between 5,001 - 25,000 will receive the one month LIBOR rate, deposits of 25,001 - 50,000 the one month LIBOR rate plus 0.10 per cent, deposits of 50,001 - 100,000 the one month LIBOR rate plus 0.25 per cent.  The interest rates applicable for each month will be published on the last working day of the month.

Assistant General Manager, Treasury, Dula Weerathunga told The Sunday Leader that since the product was launched last year the bank has got a good response, especially from the Sri Lankan diaspora overseas.

Weerathunga says customers are better off saving in a FC Plus NRFC account rather than a saving in an account, which offers a lottery for a few.

Customers of FC Plus have also the added advantage of borrowing in rupees as against their foreign currency savings for low rates of interest.

He noted that while the customer has the security for their savings in a bank that has a superior credit rating, the country as a whole benefits immensely through the scheme as it has attracted foreign remittances to the country's foreign reserves.

"The credit risk for the customer is minimal as the Bank has an AA+ (Sri) rating by Fitch Sri Lanka" notes Weerathunga.

The AA+ (Sri) rating is the highest rating offered to a local commercial bank and Commercial Bank is the only bank in Sri Lanka to receive this rating.

The bank also won the "Best Bank in Sri Lanka" award for the sixth consecutive year from the US based Global Finance magazine and "Bank of the Year" for the fourth consecutive year from the UK based The Banker magazine in 2004.  Weerathunga says this is testament to the stability and growth of the bank.

Ceylinco leaves no disaster uncovered

Ceylinco Insurance (General) now ensures that no disaster is left uncovered with its recent launch of a new natural disaster cover to their range of insurance policies. This is the first time in Sri Lanka that an insurance policy has been introduced as protection against natural disasters.

The recent tsunami disaster placed insurance policy holders in a quandary whether they would be compensated for their losses. Ceylinco Insurance Co. stepped in on humanitarian grounds to compensate those affected on an ex-gratia basis, though insurance policies did not cover destruction due to disasters such as tsunami. Accordingly many businesses in the affected coastal belt from Moratuwa to Jaffna were able to recommence business in as little as 10 days.

Having learn't through experience the company has now formulated a new cover to convert all existing policies to protect them against any natural disaster. With the new natural disaster cover VIP motor insurance policyholders with flood cover will be automatically covered against tsunamis, tidal waves, earthquakes, volcanic eruptions, floods, cyclones, storms and tempests, earth slips, landslides, hurricanes and tornadoes without any additional premium. Further, existing VIP policies without flood cover could get these benefits to cover all other natural disasters before  February 26 or at the next renewal.

The natural disaster cover for all other classes of insurance policies will cover against tsunamis, tidal waves, volcanic eruptions and hurricanes. The new cover can be obtained by existing policyholders at any of Ceylinco Insurance Co. branches islandwide before February 26 or at the next renewal of policies. New customers could also call in at any of the branches to obtain details of comprehensive insurance policies.

Ceylinco Insurance, the leading insurance company in Sri Lanka is committed to ensure that customers get true value for money in their insurance policies. The company is renowned for its consistency in service as well as the leader in providing innovative products and services.

Sampath 'SET Plus' - absolute peace of mind

SET PLUS is the latest innovative service offered by Sampath Bank.  It is a safe depository system where customers can place their jewellery for safe keeping, unlike the individual locker systems.

"We, at Sampath Bank strongly believe that there is an increasing need for people to keep their valuables in a safe place.  Banks do offer the same facility through an individual locker system, which is being catered only to a certain segment of society.  A fixed deposit is needed for this and a comparatively high rental is annually charged," said AGM, Marketing and Business Development, Sampath Bank, Kapila Karunaratne speaking to The Sunday Leader.

Furthermore, he added banks cannot market safe lockers as a product itself because of the high initial investment involved and only a certain segment of the customers can afford the facility.  "We offer not an individual locker but an allocation of space in a single large locker and work out the rental for the space that is occupied at a very nominal rate where competitors cannot match," said Karunaratne.

The bank will take full responsibility for the articles and on top of that place a standby credit facility to the customer up to 80% of the value of the jewellery, loaded into the SET ATM Card.

The bank undertakes gold jewellery valued up to a limit of Rs.500,000.  For jewellery valued at Rs.25,000, the annual rental will only work out to around Rs.160 and the minimum deposit period  is one year.  Further, Karunaratne said maximum security and responsibility is guaranteed at a low cost with a standby credit facility whenever needed - "Instant access to your account from any part of the world using the SET card through the Cirrus ATM network.  As far as the jewellery is concerned, full or part release could be made."

Karunaratne assured that the safety aspect is almost the same, or even better in some instances, than the individual locker system.  Specially in a disastrous situation, the customers' gold kept in Sampath SET PLUS Deposit System will be secured.

Furthermore, this service was mainly introduced keeping in mind working families where both spouses are employed, young executives, those going abroad and those who cannot afford individual lockers, which is very popular at present. Customers could contact any Sampath Bank branch to obtain this facility.

Credit cards: HNB shows the way

Want to become a millionaire? Then be a part of the Hatton National Bank Royalty 2005 scheme. Through this scheme, HNB opens up a whole new world for its credit cardholders - with the grand prize offered through the annual draw for 2005 being Rs. 1,000,000.

With Royalty 2005, there are no losers - every cardholder is able to redeem accumulated points while also being entitled to the quarterly draws and the annual draw.

Cardholders are awarded one Royalty point for every Rs. 100 spent anywhere in the world - customers are eligible for the quarterly and annual draws when they achieve a minimum of 500 Royalty points.

Prizes for winners of the quarterly draw include a cash prize of Rs 100,000 plus 13 return air tickets to London, Sydney, Dubai and Bangkok  every quarter.

The annual draw includes prizes of 10 tours to Egypt and a host of attractive cash awards - that is apart from the first prize of Rs. 1,000,000 - aptly titled the 'Crowning Of A Millionaire.'

Special arrangements have also been made with Emirates Airlines to offer HNB cardholders special discounts and privileges.

Royalty 2005 was launched in the wake of the success of Royalty 2004 - where the winner of the first prize was handed over the keys to a Mercedes Benz on February 11 at the award ceremony.

HNB also aims to add more value, comfort and convenience for its cardholders as the year goes by in order to ensure that Royalty 2005 will become the "sensational promotion" of the year.

"Visa International has confirmed to HNB that merchant business in Sri Lanka has grown by 33% as a whole. At HNB we have seen a growth of over 100%. Also, the card sales volume in the country has grown by 32%, while it has grown by 50% at HNB. We attribute this growth mainly to the success of Royalty 2004, which not only increased the number of cardholders but also increased card usage tremendously," Assistant General Manager (Card Centre), HNB, P. Sridharan told The Sunday Leader.

HNB took the initiative of launching the first ever loyalty programme way back in 1997. According to bank officials, there were no losers when it came to the recently concluded Royalty 2004 since every cardholder was able to redeem the accumulated points while also being entitled to the quarterly draws and the annual draw.

According to them, card usage increased rapidly among the bank's existing cardholders with the introduction of Royalty 2004 and a substantial number of new cardholders joined the scheme during the year.

Based on this success and due to demand from its customers, Royalty 2005 was launched last week and this time the bank has also tied up with many leading names in Sri Lanka such as Aitken Spence Hotels, Arpico Super Centres, Keells Super outlets, Apollo Hospitals and various other leading establishments from all parts of the country as Royalty partners, in addition to its special arrangement with Emirates.

Some of the Royalty partners have their own prize schemes for HNB cardholders who patronise their outlets and will be announced periodically by the bank - yet another pleasant surprise for HNB cardholders.

"Through Royalty 2005 we intend to keep the cardholders' interest right throughout the year. We will be having a big street promotion in April to coincide with the Sinhala and Tamil new year; a street promotion on Duplication Road in July or August that will cover the major shopping centres; and a shopping spree in December featuring discounts arranged with a large number of vendors," said Sridharan.

The bank also entered into an agreement with Emirates to promote travel among its Visa and MasterCard credit cardholders, with special fares offered to three destinations initially - Singapore, Jakarta and Dubai.

This offer is for cardholders who use their credit cards to purchase tickets for themselves and family or friends for outbound travel before April 30, with the only stipulation being, in each case, the cardholder must also be among those who travel.

HNB sources confirmed that they are geared to entertain applications from non-cardholders for the quick issue of new cards for those who want to avail themselves of these offers, subject to applications meeting the minimum requirements.

These special fares on business and economy class travel confer a benefit of more than 10 percent over standard fares to the bank's credit card holders. A Colombo-Singapore economy class return ticket for example, will cost Rs. 21, 000 as against Rs. 24, 000; a Colombo-Jakarta return ticket on the same class will be Rs.30, 000 and not Rs. 34, 000, while a Colombo-Dubai return ticket will cost Rs. 23, 000 as against Rs. 29, 500.

The special business class return fares are Rs. 61,000 to Dubai (normal fare Rs. 67,800), Rs. 63,100 to Singapore (normal fare Rs. 70,400) and Rs. 81,000 to Jakarta (normal fare Rs. 90,400.)

Emirates will also provide HNB credit card holders travelling to Singapore under this promotion with accommodation options starting at US$ 81 per person for two nights, or US$ 99 for the three nights, both options on the basis of two persons sharing. The price includes accommodation at three star hotels, with room taxes, service charge and return transfers by coach.

Not only does this provide a great opportunity for HNB credit card holders to experience the award-winning service of Emirates at special rates, they will also be entitled to earn Skywards Miles, which can be used to purchase tickets for more travel.

Emirates has also organised a special draw for HNB cardholders. Emirates will also conduct a draw in March for all passengers who travel under this promotion and five passengers will have a quantum of Skywards Miles (sufficient to enable them to redeem return tickets to either Europe or Singapore) credited to their accounts.

Additionally, those who avail themselves of this offer will receive bonus points from HNB's loyalty programme 'Royalty 2005.'

Under this programme, HNB cardholders will also receive a free booklet of vouchers courtesy of the Singapore Tourist Board, which will entitle them to discounts and free offers in a wide variety of places including the zoo, restaurants and heritage centres.

Dubai based Emirates operates four flights a week from Colombo to Singapore and Jakarta, with flights departing on Tuesdays, Thursdays, Fridays and Sundays.

The bank will also launch a whole new value addition, CCOnline, this year. This will enable customers to view all card related information such as transactions, balances, etc. online instead of having to contact the Card Center.

"Customers will find this very convenient. It will also show them the transactions that have just been performed and they wouldn't have to wait for the statement to arrive," asserted Sridharan.

A payment gateway is also being developed presently and is due to be launched in March. This will enable customers and merchants to conduct transactions in a more secure manner.

Personalisation of credit cards, under the 'Picture Card' and 'Photo Card' concepts is also very popular among customers and considered an excellent value addition by cardholders.

"There is a lot of demand for these cards since they are personalised and we will be expanding on this concept in a big way," asserted Sridharan.

HNB cardholders have the facility of paying their bills at any HNB customer service centre across the country at no extra cost, which would reflect in the card account on the same date of payment.

The HNB card centre initially enjoyed affiliate membership from MasterCard International and later obtained principal membership from both Visa and MasterCard International during 1997. It now operates as a fully-fledged card centre with a variety of services, innovative products and goes to great lengths to ensure customer satisfaction.

HNB was the first to launch an affinity card with a school, namely Royal College Union, which was followed with many leading educational institutions in the country. Under the affinity partnership programme the HNB card centre has donated over Rs. 2.5 million to the relevant schools for various educational / development purposes.

Recently the bank launched the first ever SMS alert system, which took the market by storm in view of the added security features in the interest of the cardholder, in an era where credit card frauds surface at random.

With this system, when an HNB cardholder who has registered for this service uses his / her credit card, a SMS alert is instantly sent to the cardholder's hand phone indicating the nature of transaction and the available balance. An inappropriate message will alert the cardholder that his / her card number has been tapped, and used for a fraudulent transaction, thus enabling the cardholder to take preventive measures.

NTB - very much a new generation bank

By Marianne David 

A 'new generation' commercial bank, Nations Trust Bank (NTB) is a bank that has continually gone out of its way to understand its customers' needs and wants.

The bank is committed to providing the best solutions, and with its latest venture, Nations Leasing, NTB is geared to provide tailor-made solutions along with the services of leasing experts.

At NTB, working out attractive leasing packages to suit individual requirements is a hassle free process. The personalised service and fast lane approach to documentation ensures that customers are completely satisfied.

Starting with flexible down payment options and NTB being willing to finance up to 100% of the financial requirement of a new vehicle, the bank also offers competitive rates of interest and repayment terms.

"We introduced leasing in the last week of January and with Nations Leasing we are targeting three different segments - individuals, the SME sector and corporates - and we have dedicated teams to address the requirements of each segment," said Deputy Chief Executive Officer, NTB, Iftikar Ahamed.

Most of the personal leasing would be handled by the NTB branch network with a dedicated team of consumer assets marketing staff, while the SME and corporate leasing requirements will be addressed by the bank's corporate banking relationship management team.

"We are very confident our customers will find this product very satisfying. The features that will apply are flexible down payment schemes, competitive rates of interest, and efficient turnaround time - making the process hassle free for our customers," said Ahamed.

Individuals who wish to obtain a leasing package should have a monthly salary of Rs. 40,000 and the lease tenures offered by the bank range from three to five years.

The biggest value addition to all this is that Nations Leasing will complement an already exciting suite of financial products and services that NTB offers, which extend from retail to corporate to treasury products, that are delivered through the bank's network of 26 branches under the unique 365 day banking concept.

Not only are most NTB branches open 365 days of the year, they also operate for extended hours. For example, the mini branches operate until 8 p.m. on weekends and offer all the services that are available in the main branches.

The bank has also put in place an innovative structure with the processing angle being outsourced to Mercantile Leasing Limited (MLL), which is an associate company of the group.

"Given MLL's industry insights, together with the funding and treasury management expertise NTB possesses, we are confident it will be an unbeatable combination," asserted Ahamed.

NTB attributes its success over the years to its professionalism, strong execution of banking services and the will to continue providing its customers with excellent customer care and services.

Fitch Ratings Lanka Limited has rated the bank SL A-, which denotes high credit quality.

DFCC unveils range of new products

With DFCC Vardhana Bank, customers are on the receiving end of better deals. The bank's initiative to provide better deals has resulted in the development of a range of attractive savings and deposit products.

The bank's strategy is to become a more efficient financial intermediary and to give its clients better services at lower costs and offers a wide range of unique savings and deposit products to its customers.

"As a new bank we would like to generate our savings products base and over the last one and a half years of operations, we have been continually developing and introducing new products. We offer our customers several savings products," said Chief Operating Officer, DFCC Vardhana Bank, Lakshman Silva.

Among its savings products are the normal customer savings account, where interest is paid on a daily basis; the Vardhana super savings account with a life insurance scheme; and two products for children - the Vardhana children's savings account and the Vardhana junior account.

The Vardhana children's savings account is an account that aims to cultivate the habit of saving in children, while the Vardhana junior account is a planned savings scheme.

The bank also offers a floating savings account, where interest rates are changed weekly depending on the market rates and in order to develop the habit of saving among the community, the bank has also introduced a number of deposit schemes, and offers a fixed deposit scheme ranging from one month to two years.

"Customers with super savings accounts are automatically entitled to have a current account as well and they would instruct the bank to handle the fund management aspects which gives the customer the optimum interest earning capacity," explained Silva.

Banking on the future, the main focus of the Vardhana junior savings account is education. Through the account the bank aims to provide parents and guardians with the opportunity of starting a savings account from the day a child is born.

Through the Vardhana junior savings account the bank offers computer training programmes, computers, etc.

Despite there being several junior savings schemes in the market, the Vardhana junior savings account is different - the reason being, instead of offering gifts, it offers stability for the child and helps parents and guardians plan their future.

The account features tiered rates of interest and a bonus interest is given as an incentive for those interested in increasing their savings balance. A nominee could be appointed at the time of opening the account and in the event of the death of the parent or guardian, the nominee could continue to operate the account.

The bank's senior citizens deposit scheme is for individuals over 55 years of age and has a preferential monthly interest rate, which is above market rates. The scheme was launched as a social responsibility programme, due to which DFCC Bank decided to pay a premium interest to senior citizens.

DFCC Vardhana Bank's super savings account is an account that provides the opportunity to optimise return of funds and the flexibility to interchange funds via current and savings account - a novel product in the financial market in Sri Lanka.

Through this savings account, DFCC Vardhana Bank is trying to focus on mobilising both urban and rural savings. With a super savings account, customers have the flexibility to transfer funds above a certain threshold to a fixed deposit from their savings account, thereby enjoying  higher interest.

With a super savings account, the savings account holder, while maintaining the account, can also operate a current account as well. Super savings account holders will also be provided with a life insurance cover depending on their savings balance and a period of time, which the bank will look into.

Traditionally, banks do not pay interest for funds held in current accounts. However, with the super savings account, the current account holder has the opportunity to use his or her funds to get the maximum benefit since the current account could be linked to their savings account.

DFCC Vardhana Bank also provides the facility where a savings account holder can opt to have the bank send a monthly statement instead of maintaining a savings passbook.

In addition, the savings account is not confined to Sri Lankan rupees and Non Resident Foreign Currency (NRFC) holders could also invest in foreign currency savings accounts. They could parallely maintain a rupee current account and transfer NRFC account funds to the local rupee account and draw funds in Sri Lankan rupees - an unique feature.

The bank's foreign currency accounts can be opened in a variety of currency with the best interest rates available. An automatic overdraft facility of 90% of the deposit is available from the day of opening an account.

Sri Lanka citizens residing here who receive money from abroad are eligible to open Resident Foreign Currency (RFC) accounts, Sri Lankans employed overseas or those who have returned after having worked abroad can open Non Resident Foreign Currency (NRFC) accounts and non-nationals residing in Sri Lanka can open Resident Non National Foreign Currency (RNNFC) accounts.

The bank also pays attractive interest rates, which are comparatively higher than those offered by other financial institutions.

DFCC Vardhana Bank was rated SL AA- by Fitch Ratings Lanka Ltd., which denotes the low risk in terms of repayment to the customers.

"This is a great achievement since the bank has been in operation for only one and a half years. People look at the stability of an institution - it is of paramount importance. As a result all financial institutions are required to have a rating, which shows the risk of a bank," said Silva.

The bank intends to cater to the rural areas and is planning to expand operations in the course of this year in order to reach the masses and also plans to introduce a number of new products in the course of this year.

DFCC Vardhana Bank was formed after DFCC Bank infused capital of Rs. 481 million into the MERC Bank. This resulted in DFCC owning 95% of MERC Bank and it was subsequently renamed as DFCC Vardhana Bank.

DFCC Vardhana Bank offers all commercial banking facilities such as savings accounts, current accounts, fixed deposits, certificate of deposits, long-term and short-term loans, over draft facilities, L/C facilities, NRFC/ RFC and travellers cheques.

DFCC Bank was set up in 1955 by an act of parliament mainly to undertake the financing of development in Sri Lanka by giving long-term loans to the small and medium enterprise sector and private sector companies to set up various industries, plantations and factories.

Through DFCC Vardhana Bank, DFCC is helping its existing clients who no longer have to go to any other bank to carry out their commercial banking operations. On the strength of the assets mortgaged at DFCC, they can obtain facilities through DFCC Vardhana Bank. Additional benefits offered by DFCC Vardhana Bank include the online ATM facility and the linked branches, enabling customers to carry out transactions at any DFCC Vardhana Bank branch.       - MD