Business

Government struggling to control inflation

By Mandana Ismail Abeywickrema 

Although the government expects the rising level of inflation to stabilise within the next two months, analysts feel the increasing global prices would make it a near impossibility.

The Monetary Board, while stating the level of inflation is still on a 'higher level,' has opted to maintain the Central Bank's current policy interest rates.

Treasury Secretary, Dr. P.B. Jayasundera told The Sunday Leader inflation needs to be brought down.

However, he sounded hopeful when he said that considering the present economic climate, the level of inflation would come down in the next few months reducing the necessity to increase interest rates.

According to Dr. Jayasundera, the high oil prices and the effect of last year's drought has resulted in the high level of inflation.

The bumper harvest expected in the paddy production and the agriculture sector on the whole, according to Dr. Jayasundera, would reduce the rice prices.

He pointed out although the country would experience some balance of payment issues, the International Monetary Fund's (IMF) US$ 250 million immediate budgetary support and the debt relief from bilateral donors amounting to about US$ 250 to 300 million would help reduce the pressure on the exchange rate and borrowing.

"Inflation could be brought down and therefore there would be no need to increase the interest rates. However, there would be a need to make minor adjustments, but not major increases," he said.

Financial Analyst, Ravi Abeysuriya noted with the increase in world prices, a reduction in the level of inflation would be a highly unlikely scenario. He explained if the government decided to increase fuel prices to tide over import costs, it would further increase inflation.

However, Abeysuriya said the Central Bank could reduce money supply, adding that bringing down inflation is not an easy task to do within a short time frame.

He explained an increase in the interest rates would also increase the budget deficit, adding that not increasing interest rates to be on par with the level of inflation is a strategy adopted by governments to reduce the budget deficit.

Abeysuriya noted the present rates would be profitable to those in the borrowing sector. However, he reiterated that although not increasing the interest rates would be a short-term strategy, the Central Bank would indeed have to remedy the situation in the mid to long-term.

When contacted by The Sunday Leader, the Central Bank said the bank's stance on inflation and interest rates was reflected in the Monetary Policy Review for the month of March.

According to the review, after studying the current and projected economic developments, the Monetary Board has decided to maintain the policy interest rates of the Central Bank at their current levels and to absorb excess liquidity in the market through aggressive daily open market operations.

The following is an assessment of the factors that were taken into consideration in arriving at this decision:

"The Monetary Board noted with caution that the high monetary and credit growth should be arrested to prevent further inflationary pressures being built up. Accordingly, the daily OMO auctions will be used to absorb liquidity more actively. Furthermore, the adjustment of administered prices of fuel, electricity and transport, enabling a reduction in the borrowings of public corporations, would also facilitate containing expansion in domestic credit.

"In this regard, high priority should be given to strengthening the public enterprises reform programme. The board also emphasised the necessity for expediting mobilisation of concessional foreign assistance to cover tsunami related expenditure, as available domestic resources are limited."

The board also states, "Considering these developments, the Monetary Board has decided to maintain the policy interest rates of the Central Bank of Sri Lanka at their current levels and to absorb excess liquidity in the market through aggressive daily open market operations."

Investors flock to emerging markets

Emerging markets, long associated with extreme boom-and-bust cycles, may finally be gaining some stability.

Rising commodity prices, strong global economic growth and a long period of low interest rates that has encouraged investors to seek higher-yielding securities have helped stocks in developing countries to surge 85% since the end of 2001. That compares with a 9% rise by the Dow Jones Industrial Average over that period.

Despite that huge gain in the Morgan Stanley Capital International emerging-markets index, bullish investors predict more to come. "Emerging markets have had a sharp turn upward," says Kim Catechis, an investment director for Scottish Widows in Edinburgh, Scotland is one of the largest money managers in the UK with an array of investments. "But you haven't got a bubble here."

New money is pouring in as never before: emerging-market stock funds enjoyed their biggest month ever in February, with inflows reaching US$ 4.6 billion, according to Emerging Portfolio.com Fund Research. Yet more notable than this faith in a continuing boom is a growing belief that a bust doesn't have to follow.

Catechis says the favourable backdrop has enabled many developing countries to bolster their economies by reducing debt, increasing foreign reserves and lowering their borrowing costs. Moreover, the emergence of China as a vast consumer of natural resources makes emerging markets less dependent on the US as their primary source of demand.

Proponents say this represents a structural change that will help emerging markets absorb any potential negative developments, such as a sudden rise in interest rates. "We are going through a re-rating of emerging markets," Catechis says, where the earning power of these companies won't have to trade at as deep a discount to US and other developed-country stocks.

Not everyone is so sure. Andy Xie, a Morgan Stanley economist in Hong Kong, thinks that low interest rates and widespread bearish sentiment toward the US dollar has been encouraging investors to seek out emerging-market stocks even though they are no longer as cheap as they once were.

He believes that if the US Federal Reserve starts raising interest rates more aggressively, or China's rapid pace of growth falls off sharply, recent emerging-markets gains could give way to an equally powerful sell-off. "What is occurring isn't different from 10 years ago," Xie argues, referring to gains made in 1993 and 1994 that were erased in the crisis years that followed.

Even fans of these stocks say that corporate governance issues and mistreatment of minority shareholders, especially in family-run businesses in South East Asia and Latin America, continue to plague emerging markets. "Make no mistake," says Carlos Asilis, a fund manager with the hedge fund Vega Plus Capital Partners, "there is still plenty of corruption."

This is one reason why, Asilis says, emerging markets will continue to trade at a discount to stocks in Europe and the US. These markets also are smaller and thus less easy to get into and out of than  most developed markets, and their economies are less diversified, so troubles in a key industry can sink an entire market.

Emerging-markets countries also must pay more to raise capital, though these costs have been falling as credit quality has improved. In 1998, only about 10% of the bonds in the J.P. Morgan emerging markets bond index were rated as investment grade. Today that figure is about 50%.

Two of the biggest debt issuers, Mexico and Russia - which sparked emerging market crises in 1994 and 1998 respectively - have graduated from high-yield, or junk, bond status. Another big debt issuer, Brazil, has been taking advantage of China's demand for iron ore and other natural resources to pay down its dollar-denominated debt. It is expected to join the investment grade ranks by 2007.

Unsurprisingly, the premium that emerging markets countries must pay has narrowed to near its tightest level ever, at 3.33 percentage points over US Treasuries. That is four percentage points less than the premium they paid at the end of 2001.

- Wall Street Journal

Music outlets convicted of copyright violations

The Additional Magistrate Colombo last week convicted three organisations that were being prosecuted under the provisions of the Intellectual Property Act No. 36 of 2003. In these cases it was alleged by Maharaja Entertainments (Pvt) Ltd. that the accused had violated the copyrights of their principals Sony Music, Columbia Records, Epic Records, Universal Music, Polygram, Polydore, Mercury, Virgin, Capitol, EMI, Sarigama, RPG, Warner Bros, and Miramix.

The above actions had been filed on the February 17 and the court had issued search warrants under Section 197 of the Intellectual Property Act. Thereafter the Commercial Crimes Division of the Criminal Investigations Department had raided the above three premises and had taken into custody a large volume of CDs, VCDs, DVDs, and counterfeits which contained counterfeit films and songs infringing the copyright of the owners.

In the first case Ape CD Kade situated at Borella had been raided and the computer used for the manufacture of counterfeit copies had been taken into custody. In this case the accused pleaded guilty to the charge upon the plea of guilt the accused was imposed a crown cost of Rs. 500. In addition the computer was confiscated and handed over to the complainant company.

In the second case, Digi Media situated at Colombo pleaded guilty and upon the charge of possession of counterfeit CDs, VCDs, and DVDs and upon the plea being recorded a similar sentence was imposed. Further the magistrate ordered the confiscation of the counterfeit items.

In the third case, Pro Media Colombo pleaded guilty to the charge of possession of counterfeit CDs, VCDs and DVDs, and a similar sentence was imposed on them. In this case too the court ordered the destroying of the counterfeit CDs, VCDs and DVDs.

In addition in all three cases the accused gave a further undertaking to the court that they will not in the future do any act whereby the rights of the copyrights owners will be violated. It was also agreed that in the event they do any act which violates the rights of the copyright owners the complainant is free to reopen the cases and prosecute them for contempt of court. Each of the accused paid a sum of Rs. 2,500 as prosecution cost in addition to the crown cost imposed by the court.

In a fourth case, Grand VCD Center situated in Colombo could not be raided since the shop had been closed from the time the search warrant was issued. Senior Counsel for the complainant, Kalinga Indatissa informed court that this case be laid by and the moment the complainant received information that the accused in this case is involved in selling of counterfeit CDs, VCDs and DVDs, the complainant shall reopen the case and proceed with action.

Attorney-at-Law Kalinga Indatissa appeared for M Entertainment (Pvt) Ltd. and their principals along with Indika Karunajeewa, Asanga Bodaragama and Upamalika Liyanage instructed by G.G. Arulpragasam. Attorney-at-Law Muditha Abeyratne appeared for the accused in the two cases concerning Digi Media and Pro Media.

HNB records Rs. 976 mn profit

Hatton National Bank (HNB) ended 2004 with an after tax profit of Rs. 976 million. This was a marginal decline of 3% compared to 2003. The bank's core income recorded a satisfactory increase stemming from improvement in net interest, fee based and foreign exchange income. The total operational expenses were also contained with a modest increase of 14% de to aggressive cost management.

As expected, profitability was considerably affected by large provisions made on account of non-performing loans. During the year, the bank made total provisions amounting to Rs. 1.57 billion for bad and doubtful debts.

Sustained efforts to improve the bank's portfolio quality have begun to show visible results. The bank's NPA rate improved to 9.7% in 2004 compared to 14% in 2003. The NPA cover as at end 2004 also improved to 55% from 34% as at end 2003.

During the year, the bank raised Rs. 1.4 billion by way of a rights issue, which has contributed  to maintaining a capital adequacy ratio of 11.26% well above the statutory minimum of 10%.

It is envisaged that the bank's core capital would be further strengthened during the first half of this year by completing the planned GDR issue which was approved by its shareholders last year.

While recognising that the tsunami disaster may have a short-term impact on business, the bank is focused on implementing strategies designed to meet the core set of challenges identified last year aimed at improving overall return on assets and enhancing competitiveness. These include balance sheet consolidation, further improvement in asset quality, effective cost management, diversification of income streams and achieving higher productivity.

BCI records air of corporate optimism

There is growing confidence amongst businesspeople that 'rebuilding Sri Lanka' is more than just a catchphrase, suggests the latest LMD-ACNielsen Business Confidence Index (BCI).

The business community has apparently passed a 'vote of confidence of sorts' on the nation's post-tsunami rebuilding efforts, says LMD's March edition, out now. "This may be a natural transition, perhaps, from last month's mood of 'cautious optimism,'" the business magazine says.

The BCI shot up dramatically in February - from 107 in the previous month, to a healthy 143. "In fact, the BCI has now moved upwards for four successive months, and is now only 11 basis points below its post-election level of 154," a spokesperson for LMD told The Sunday Leader.

The unprecedented inflow of unsolicited aid, and news that economic analysts do not view the impact of the tsunami tragedy on the economy to be serious, may be jointly responsible for the prevailing air of optimism, the BCI notes.

"But the plight of the 500,000-plus displaced Sri Lankans is another matter altogether - one that the nation's corporates do not necessarily factor into their assessment of where the nation is heading," the LMD spokesperson avers.

There has also been a dramatic turnaround in confidence in Sri Lanka's investment prospects, with a majority of 56 percent saying that they are "fair," "good" or "very good". Only 17 percent said so four months ago, the survey - conducted by ACNielsen Lanka for LMD, among 100 city executives - reveals.

"There's more business cheer," adds LMD. A majority of the nation's executives - some 52 percent of them, in fact - now expect "the economy, in general, to improve in the coming 12 months," compared to just three percent who said so in September last year.

"From a businesspersons' perspective, what will really spread the icing on the economic cake is a breakthrough on the crucial - but currently deadlocked - peace process," adds LMD.

Inflation: The next tsunami 

By Dinesh Weerakkody 

With widespread agitation building up in the country over the government's failure to effectively handle the post tsunami crisis coupled with the soaring inflation, the system is about to cave in big time and Chandrika Kumaratunga knows only too well that before long the country is going to face an economic and political crisis that could very well lead her to her own undoing.

Therefore, the politically savvy Kumaratunga who has no intention of giving up is now trying to find another fail safe formula by way of a referendum, costing over Rs. 700 million to survive the troubled times and extend her political life.

JVP angle

The JVP on its part has made governing very difficult for Kumaratunga by effectively blocking any form of compromise with the LTTE. The net impact of all this is that they have effectively blocked the flow of foreign aid, whether for tsunami or national development.

In this back drop the time has come for Chandrika to decide whether she is going to risk her political life and do what is good for the country or focus on backroom politicking to extend her political life despite wide spread agitation building up against her government for messing up the tsunami reconstruction and her many utterances.

However, if the opposition does not play its part for which they are being paid by the tax payers, she will work herself out of this crisis and manoeuver a constitutional amendment to abolish the executive presidency and continue in some form as the head of state.

If the tsunami money also dries up due to mismanagement, the rupee could very soon take a walk down hill once again. The economy today is still feeling the impact of high world oil prices. Pre-tsunami the cost of living rise, erosion of business confidence and worsening trade deficit forced the UPFA to take tough austerity measures. As a result the UPFA reneged on virtually all of its promises and placed all most the entire burden of the present world oil crisis squarely on the backs of the working class.

The JVP, which at times claims to be socialist and pro-poor, has absurdly tried to shift the blame of this current crisis onto the UNP sympathisers in the Central Bank and for some reason is watching in silence while the EPF monies are being borrowed at absurdly very low rates when inflation is running over 17 percent. The government instead of tinkering with the interest rates should address the real cause for inflation. Normally, when the cost of living starts rising the people in the Central Bank start attacking it. They do not sit and watch while the poor pensioners and savers are taken for a good ride.

Inflation

Currently interest rates are around 7.5% while inflation is around 18 %. People are getting a negative rate of over 10%. In many countries governments intervene to address this economic issue before it becomes a political issue. The Central Bank is supposed to be independent so that they can quickly act and adjust interest rates to control high inflation.

High inflation is a bad thing because it saps up a persons buying power and makes them poorer. What the Central Bank is doing is they are cheating the poor savers by offering them negative interest rates and helping the government to erode the real value of the employee's provident fund. It is surprising why the EFC and the unions are so silent about this rip off.

Pre-tsunami the rupee depreciated by over 7% in six months, total reserves dwindled and the country's economic growth figures had been downgraded from six to five, all this changed thanks to the tsunami.

This is now all changing due to bureaucratic bungling and political immaturity. Economic analysts say the mishandling of the tsunami could very well derail the government's economic programme and the reconstruction effort and push the cost of living to record levels. The attitude of the JVP towards the ISGA could also very well jeopardise the peace process thereby affecting our aid flow big time.

Cost of living

Petrol, gas and diesel prices have all been increased by huge amounts. The prices of all essential commodities like milk, sugar and rice have also increased by 10 to 25 percent. Therefore, now that a referendum is also on the cards, the UPFA is unlikely to focus on winning back the confidence of our lenders. Using the tsunami foreign currency to meet current expenditure while it helps the government in the short term to maintain interest rates could very well affect our economy negatively in the long run.

Kumaratunga should try and work with Ranil Wickremesinghe genuinely to get the peace process back on track. Playing games with the LTTE will only push us back to war. In order to secure a working majority to pass crucial bills, the UPFA should try and work with the opposition without intimidating the opposition unnecessarily.On the other hand if Kumaratunga tampers with the constitution to ensure her survival, she could very well inflict deep and abiding wounds on the polity of Sri Lanka. Then if the UNP continues to pull in different directions they will fail to curb her excess and also fail to ensure the government keeps to its promise of providing employment for those unemployed.

Currently Kumaratunga is preoccupied with remaining in power by any means and is not focused on resuscitating the tsunami affected areas but is focused on taking short term decisions at crisis management compounding the economic problems long-term.

The government at least now must accept the reality that we are faced with a deepening political crisis and they could confront a serious financial crisis if the monies pledged are held back. In fact funds to meet import bills and run the administration can only rise. Therefore, before the government brings forth a new constitution the government needs to put our economy and the peace process back on track, if they do not do so now, the reality we will face belatedly may well be that we are without a country.

Political crisis

It does not take a  person with high IQ to realise that the wheels of the economy are now turning slowly, the constitution is being challenged, parliament is only a talk shop and we have a deepening political crisis. At least now, our political parties must size up the situation and realise that they need to work on the basis that the nation must exist for the government to exist and that they the politicians are elected to serve the people and not to be served by them.

If not the people of this country will turn against the PA, JVP and the UNP, like what is happening now in some of the banana republics in Africa.

Global Towers enters phase two

The multi million dollar Global Towers Hotel Project based in Colombo is poised to invest a further Rs.1.5 billion in its efforts to expand and modernise the existing hotel complex. Addressing a media gathering Managing Director, Global Lanka Holdings Ltd., Phylix Selvadurai said the completion of Global Towers phase two would see the hotel emerging as a landmark beachfront property in Colombo.

Global Towers phase one, a project in excess of Rs. 650 million, was opened in August 2004 and consists of 168 rooms and apartments. Commenting on this Selvadurai stated the project was completed without any form of borrowings and financed entirely by equity and pre sales. He said they had been averaging occupancy of 65% and were looking at an increase of 75% by the end of this year. "We are targeting the Indian tourist and business sector as we believe the demand for Sri Lanka both as a tourist and business destination is growing by leaps and bounds," Selvadurai said.

In addition to the Indian market Global Towers is also looking at China, the Middle East, Singapore, Maldives and Malaysia for potential customers. Selvadurai was quick to stress that apart from being a tourist destination, Sri Lanka was fast gaining popularity as a medical hub, especially in the Maldives. He added that another sector, often ignored, that could prove potentially lucrative were the three million expatriate Sri Lankans in various parts of the globe - provided they could be persuaded to visit the country at least once a year.

Global Towers phase two will have 130 hotel rooms, 70 one bed-roomed executive suites, one two bed-roomed executive suite and four penthouse suites, in addition to a resplendent lobby of 6,000 sq. feet, restaurant, banquet hall with a capacity of 1,000, rooftop swimming pool, and for the very first time in Sri Lanka, a revolving restaurant on the 15th floor. A state-of-the-art business centre, conference facilities, a complete health club with spa and two floors of parking will also be a part of the new complex.

Selvadurai also said the company intended investing in and has already purchased land for three more hotel projects in Ambalangoda, NuwaraEliya and Vavuniya. These are due to be completed in 2008 and will bring his total investments in Sri Lanka to an excess of Rs. 3.3 billion.  Financing for phase two will be done through 40% equity, 30% pre sales while the balance 30% will be via bank borrowings.

The company is also exploring the possibility of acquiring sites in other parts of the country, especially Yala and the Nothern Province, political stability being ensured. Commenting on the vast investments, Group Consultant, Ajith Nivaard Cabraal said this showed investor confidence in the economy, and its ability to bounce back soon, post-tsunami.

Global Towers has also acquired Andre Shackleton, extremely experienced in the field of hotel and tourism in India, as its general manager, to take the project to its next level.

Ex planters offer to manage Lanka Phosphate

By Marianne David 

Given the controversy over the privatisation of Lanka Phosphate Limited, the Association of Ex Planters' Sri Lanka has offered its services to the government to take over the management of Lanka Phosphate Limited and convert it to a 'people's company.'

The recent advertisements calling for expressions of interest by the Public Enterprise Reform Commission (PERC) from foreign or local agencies to participate in the development of the Eppawala Phosphate Deposits on a public / private partnership basis raised concerns this 'national treasure' would be sold to foreigners, prompting the Association of Ex Planters' to step in.

"We believe that Sri Lanka being an agricultural economy should take steps to safeguard whatever resources of fertiliser available in the country and adopt a systematic use on a national plan. The aim of our association is to protect agriculture in Sri Lanka and be the watch dogs of the industry," said President, Association of Ex Planters' Sri Lanka, Lincoln Fernando.

Lanka Phosphate Limited has exploration rights at Eppawala Phosphate Deposits. According to statistics released by PERC, 89% of the total production of Lanka Phosphate Limited is used by plantation crops - tea 55%, rubber 16% and coconut 18%.

"Therefore, it is in the national interest this national asset does not get into the wrong hands upon privatisation," said Fernando.

According to scientific assessments the current deposits of Eppawala Phosphate Deposits, considered one of the richest qualitative deposits in the world, could be used for many more years for the national benefit. The deposits could also be used to produce more fertiliser instead of importing fertiliser for local use.

In the event the government accepts its services, the association undertakes to convert Lanka Phosphate Limited into a joint stock company with the government continuing to hold 50% of shares and then broad-base the remaining 50% of shares among all stakeholders.

The stakeholders include the plantation sector, agriculture sector, paddy sector, kapruka societies, growers' cooperative societies, employees of the company and the general public.

The Association of Ex Planters' intends to take steps to produce the total phosphate requirements of the country, rendering imports unnecessary in the future and limited the mining of phosphate to the country's requirement only, thus halting over-exploitation.

The association also plans to acquire new technology and expertise to upgrade production and improve efficiency.

"These proposals are made in the national interest; we have no vested interest. Our main concern is to ensure this national asset is managed for the benefit of all Sri Lankans and to protect agriculture in this country," said Fernando.

The association submitted its proposal on March 7, and is now awaiting a response from the government.

If President Chandrika Kumaratunga, to whom the proposal has been submitted, finds this proposed concept acceptable, the association intends to meet with PERC officials and submit a more detailed proposal for consideration.

Manila meeting seeks to plug aid gaps

Aid officials and ministers met in Manila on Friday to map out the next phase of recovery operations for tsunami-devastated Asian countries, discuss how to bridge funding gaps and stamp out aid corruption. Three months after an earthquake triggered waves that killed more than 300,000 people, the Manila-based Asian Development Bank (ADB) released preliminary figures that showed the four worst-hit countries still faced a hefty aid shortfall of US$ 5.3 billion.

In his opening speech, ADB President Haruhiko Kuroda said aid agencies and governments needed to improve their coordination as recovery operations moved beyond short-term relief to the longer-term rebuilding of shattered communities.

"Given the scale of the recovery, even with our best efforts at coordination, the potential for gaps, overlaps and duplications is significant," Kuroda said. "We need to develop tools that can assist us in identifying gaps, and avoiding duplications."  Kuroda said the ADB had set up a tracking mechanism to help countries identify gaps between where aid was pledged and where it was really needed.

The ADB's funding calculations were for Indonesia, Sri Lanka, India and Maldives. It said that based on initial calculations aid commitments for those countries totalled US$ 2.5 billion compared to estimated needs of US$ 7.8 billion.

Snippets 

Coca-Cola and Round Table MoU

Coca-Cola Beverages Sri Lanka Ltd. recently entered into a MoU with Round Table Sri Lanka. This MoU was signed in furtherance of the tri party MoU which was signed with the Education Ministry early February to reconstruct a school destroyed by the tsunami. Accordingly, Round Table is to commence construction of Mahamaya Balika Vidyalaya, Hikkaduwa in collaboration with Coca-Cola at a cost of Rs. 50 million for which the funding will come from Coca-Cola.

CCC to host Chinese delegation

The chairman of the Council for the Promotion of International Trade (CCPIT) Beijing will lead a high-powered Chinese business delegation to Sri Lanka in April. The Ceylon Chamber of Commerce (CCC) is due to host the members of the delegation at the CCC auditorium on April 8 at 2: 30 p.m. This forum will facilitate a meeting ground for the delegates and the member companies of CCC and the Sri Lanka-China Business Council. Members of the local business community interested in establishing contacts with the visiting delegation are encouraged to participate at the event. One-to-one meetings between local parties and the delegates will follow the programme set out by CCC.

SIM expands into Sri Lanka

The Singapore Institute of Management (SIM) entered into a partnership with Sri Lanka's TMMP International (Pvt) Ltd (TMMP) to launch nearly 50 executive training programmes in Sri Lanka. Described as possibly the largest range offered by a service provider, these programmes will be conducted from May to December with each programme ranging from two to three days. SIM will leverage its network of trainers to create the same international learning experience it has successfully fostered in Singapore. Industry professionals from the United States, UK, Australia, New Zealand and Singapore will lead the programmes which have been specially chosen to meet the dynamic knowledge needs of executives in Sri Lanka. Topics to be covered include banking and finance, communication skills, customer service, general management, sales and marketing, together with team leadership and interpersonal skills.

Saravanamuttu addresses AMCHAM forum

A recent member forum organised by the American Chamber of Commerce in Sri Lanka (AMCHAM) was addressed by Executive Director, Center of Policy Alternatives, Dr. Paikiasothy Saravanamuttu.  His topic was 'The Peace Process Post Tsunami - The Draw Backs And Barriers.' Dr. Saravanamuttu's address gave attendees an insight in to the current political situation of the country. He spoke on proactive measures that need to be taken by the government towards the peace process to assist in post tsunami reconstruction and highlighted the importance of resuming the peace process and the need for political parties to come together in making this happen.

Creative award for Grants' ET

For the second year running the 'Young Creative Workshop' was conducted by 4As to nurture and reward the best of local creativity. This year Grant McCann Erickson's Eranga Tennekoon, 'ET' as she is known amongst industry circles, scored the highest in the art category and was placed at the top of a number of young creative participants who came together from around the region.

GPS vehicle tracking solution

KayJay Securities Services has developed TrackJack, an innovative and affordable GPS vehicle tracking solution. This device will enable vehicle owners to track or immobilise their vehicles at any given time in case of theft. With growing concern for vehicle safety in the country, TrackJack clients will be able to track their vehicle or fleet to a pinpoint location through software, the internet or mobile phone. KayJay Security Services has been providing industrial security to the Sri Lankan business and residential communities for well over 25 years. The software was developed together with a Singaporean fleet management company and local IT company, Microimage. According to Joint Managing Director, KayJay Agencies Ltd., Kushal Johnpillai, the TrackJack advantage is its detailed road map of Sri Lanka and the ability to track and immobilise your vehicle. TrackJack utilizes the latest GPS technology to track and immobilise targeted vehicles. TrackJack will also be a useful tool for those concerned parents who continuously worry about the movements of their children.

Ceylinco Life settles all tsunami claims

Ceylinco Life has settled every claim made in respect of persons lost in the December 26 tsunami, the country's leading insurer announced this week. It said the company had received a total of 165 claims as at the first week of March, and had honoured all of them by Monday, March 14, achieving a 100 percent settlement record. Chief Executive Director, R. Renganathan said, "The tsunami created an unprecedented situation for the insurance sector, and achieving a 100 percent settlement is very commendable in that context." He said policyholders covered for accidental death had received double the sum assured, since the company had decided to qualify loss of life in the tsunami for the accidental death benefit as well.

Free internet services from SLT

SLTnet taken several measures to improve accessibility and affordability is now offering a bundle of free services, in addition to its wide range of quality products, to further expand use of the internet in the country. These services are offered utilising the many strengths of SLT as an ISP, SLTnet in the country with an islandwide network to serve the internet and an unmatched bandwidth upto 350 mbps. In an islandwide campaign this month to popularise the use of the internet among a cross-section of society, SLT makes a range of free offers, as well as, several special packages designed to serve the needs of different segments of Internet users from students and professionals.

ISO 9001:2000 for Elephant House

Ceylon Cold Stores Ltd (Elephant House) which received its initial ISO certification in 2000, has updated its certification level to ISO 9001:2000. The certification is given by the Sri Lanka Standards Institute (SLSI). "We strongly believe that quality is key for success in today's competitive world, therefore we continuously work to improve the quality of our products," said President, Food and Beverage Group, JKH, Jit Guneratne.

Award for Superlink Chairman

Chairman / Managing Director, Superlink Travels, Rodney Koelmeyer received a special award of appreciation by Israeli Tourism Minister, Avrashma Hirchson for conducting many pilgrimages and the contribution made to established friendly linkages between Israel and Sri Lanka for the past 20 years at a special ceremony held recently a the Crown Plaza Hotel in Jerusalem. Also present on this occasion was Director General, Tourism Ministry, David Assouline, Director, Ophir Tours, Raphael Bn-Hur, Offer Eshed, and Ambassador, Sri Lanka Embassy in Tel Aviv, Israel, Tissa Wijeratne.

Tokyo Cement acquires new vessel

Tokyo Cement Colombo Terminal (Pvt) Ltd. (TCCT) announced the acquisition of the vessel M.V. Tabernacle Prince recently in a bid to ensure an exclusive supply of cement to the local market. Purchased in early 2004, the vessel underwent a complete refitting process which ensured the conversion of the vessel to suit the present market needs and conditions. Equipped with state-of-the-art cement loading and unloading systems, the vessel has the capacity to carry 17,500 MT of cement.

Invest today and be a millionaire tomorrow

By Pelham Juriansz

Today, many Sri Lankans have lost faith in long term investments due to the high depreciation of the rupee over time and the political uncertainties. On the other hand, today, people are becoming increasingly knowledgeable. More and more realise the importance of having long term investments, be it to lead a secure life, to provide for children's future, as a retirement plan, or to hedge against uncertainties.

Many are looking for alternative safe and secure investment opportunities that give the highest returns. Today the market offers only a limited choice.

Gilt edged securities? Return offered does not compensate for the high depreciation of the currency. Real estate? Good investment but is not cheap. According to Managing Director, Vinketh Private Limited, Sudath Jayawardhana, Vinketh offers the best alternative long term investment opportunity that fulfils all investor expectations i.e., safety, high returns and gives a tangible product.

Vinketh offers an opportunity to invest in teak trees, basically in the form of 40 perch plots with 135 teak trees initially. The initial investment is very low, a mere Rs.160,000 per plot and after 18 years the investor can realise a return of Rs. 6 million or more.

Explaining the whole set up Jayawardhana said, "The teak cultivation project is situated just 25 kms from Puttalam town towards Chilaw, in an area called Mahakubukadawala. The whole project is on a 100 acre plantation and at the moment we have developed 50 acres as the first phase of the project and we hope to develop the other 50 acres during this year."  Vinketh as a company came into existence just one and a half years ago.

"Product is in the form of 40 perch plots, each with 135 trees per block. The maintenance of the plantation is done free of charge by us for 18 years. We have looked into every aspect of the plantation to maximise the yield. The quality of the seeds, the planting pattern, the spacing between plants, and continuous irrigation of plants. We get continuous advice from the Forest Department, which acts as our consultants, to monitor the progress of the plantation and issue reports on its condition. We hope to send these periodic reports to all our investors to keep them abreast on their investment," said Jayawardhana.

Further explaining the maturity process he said, "There are two thinning processes involved during the product life cycle to ensure the best growth. The first thinning is after eight years where we remove 35 trees, and the second after 14 years, where we remove 40 trees. Sale of these removed trees will provide an extra interim income in the 14th year, even before the final harvest. At the end of the 18 years the investor gets 40 perches of land plus 60 fully grown matured trees worth over Rs. 6 million."

Commenting on this type of investment Jayawardhana said that the short term benefits in this type of investment is that the investor gets the clear ownership of the land once the initial amount is paid. Another advantage is that the investor could transfer the land with the trees to whomever he wants. The biggest advantage in this type of investment is that for a small investment there is a large return after 18 years. One gets over 21% interest per annum which is more than other conventional products in the market.

Commenting further on this innovative investment product, Jayawardhana said that their theme is "Invest in teak, be a landlord and a millionaire." Teak is one of the most naturally resistant trees to drought and adverse environmental conditions and traditionally the most preferred plant for timber. Another factor is that this an environment friendly product, in other words, by investing in teak you not only gain a high return but also contribute to the environment through preservation of natural forest cover.

Speaking on the extra protection that the investor gets from this type of investment, Jayawardhana said that there is a legal agreement to protect the rights of the investor and there is a drip irrigation system for every plant to ensure the required water content during dry periods. There is also security provided for the site throughout the period. There are additional trees to compensate any unexpected losses to your investment during the period. As for insurance, Jayawardhana mentioned that they have taken insurance against fire.

The additional benefits that one gets is a preferential rate at the Kudarama-luxury tourist holiday camp, adjoining the plantation. There is also no income tax or withholding tax payable for this type of investment.

In conclusion, Jayawardhana re-emphasises the fact that this form of investment is secure as well as the most beneficial as far as return on investment is concerned.

GDI Fashions expanding

GDI Fashion World - a popular fashion boutique - has carved a niche in the local fashion industry with the latest fashion trends made available.

Inaugurated in December 1999, GDI Fashions is expanding, with already four branches set up in the island - at Moratuwa, Nugegoda, Maharagama and Borella.

With a large selection of clothes available for the whole family, Managing Director, GDI Fashion World, Aravinda Gunesingha said that the clients are exposed to a large variety of fashion trends which have been studied and chosen to suit the local market.

"We have studied the latest fashions and we offer our customers the latest designs. Most of our products are imported,  due to which the latest world trends are offered," Gunesingha said.

While 50% of the fashions are imported, 30% are manufactured locally and 20% from other manufacturers in the island. "This way the company offers a wide variety - both local and international," he said.

With GDI Fashions now growing in popularity due to its quality products and services, the company's aim is to live upto its motto by offering the best quality services to its customers.

"When the company was inaugurated in 1999, the company had a permanent staff of only 20 members. But today, there are over 220 permanent employees involved with GDI Fashions," Gunesingha said.

Due to the upcoming festive season, GDI Fashions also has on offer several discount and sales promotions for the benefit of its clients.  "Fashion sales are high from December to April. Due to the festive season, the country's local fashion industry is booming during this period. To make this festive season a more pleasant one, this year GDI Fashions has on offer several promotions," Gunesingha added.

As part of the promotions, generous discounts are being offered on all purchases.

The company also has on offer a 'buy and win' promotion which will go on till April 25, where valuable gifts are being offered to customers.

The company also has gift vouchers valued at Rs. 500 and Rs.1000, to gift to friends and family during this festive season.

Unique innovations in packaging

Having commenced operations in Sri Lanka just two short years ago, Crimson has established itself as the pioneer in innovative point of purchase displays, specialised packaging and exhibition/promotional displays using flexible materials. With a vision of making a client's brands stand out in the competitive marketplace, Crimson has identified package and promotional branding as an untapped resource.

According to Managing Director, Crimson CS, Mahen Ediriweera advertising makes your product desirable, while packaging makes it real. Crimson is able to extend a customer's branding to utilise packaging and promotional material to strengthen the overall campaign. At the same time the choice of materials can often provide significant cost savings that allow brand managers to achieve more within their budget.

Using state of the art technology and expert in-house design teams, Crimson creates business specific solutions that can meet and exceed the expectations of even the most demanding of clientele. Moreover, utilising a wide range of flexible materials, which include paper corrugated board, plastic corrugated and foam board, the displays are tailor made to individual customer requirements.

In addition to the variety and customizability, these solutions are also cost effective (usually half the price of a similar MDF or plastic display), light weight, sales-person and shop-keeper friendly (easy to setup or move around), have short development time from concept to finished product, and are environmentally friendly.

Whilst setting the trends in innovative display designs, Crimson is also branching out into a wider field of product presentation, namely exhibition stalls. Having successfully completed several projects for customers in Sri Lanka and Europe, Crimson is now enhancing its product range with their modular exhibition stall concept. This is designed to suit any budget and includes displays that can be easily collapsed and hand carried to international trade fairs and events.

Crimson keeps abreast of technology and developments in this field by participating in industry events worldwide and by conducting its own research into the uses of new materials and techniques. Continuing to innovate in this manner, Crimson CS will provide its customers total solutions in below the line advertising.

International Gem and Jewellery Trade Fair from May 9-11

The International Gem and Jewellery Fair will be held from May 9-11 at the BMICH in Colombo.

This fair that will attract many foreign investors and buyers will be held under the patronage of Deshamanya Lalith Kotelawala and the board of directors of Ceylinco GemCorp International Limited.

Sri Lanka has been classed as a leading gem producing country. Out of the 150 known species of gems Sri Lanka is known to have 50 varieties, which places it amongst the leading gem producing countries in the world.

As such the gem industry is taking steps towards the development of the industry.

An advisory board comprising of industry leaders and representatives of relevant official bodies recognise that the time is ripe to launch another trade fair of international standards, fulfilling the long felt need to be evenly placed in the international calendar of events.

Through this fair the exhibitors intend to provide an opportunity for the direct participation of big and small traders and provide a platform in the international market for those engaged in the jewellery industry on a small scale.

Director/Chief Operations Officer, Ceylinco GemCorp International Ltd, Tennekoon Rusiripala said that another aim is to promote the activities related to value addition.

"We need to improve the service sector of the industry and strengthen and encourage the local industry in general."

Commenting on the participation at the fair he said that traders from BIMST-EC Group countries will be invited to participate in the fair with a view to establishing an ongoing, mutually beneficial relationship among the traders in these countries. 

Explaining further he said that steps have already been taken to give publicity through the foreign diplomatic missions and to provide concessionary travel and accommodation facilities through the national carrier, SriLankan Airlines and the leading hotels in Colombo. "This move will attract foreign visitors to this show. In addition steps are also been taken to create awareness, locally, on the investment opportunities available in the industry," said Rusiripala.

Sri Lankan traders are invited to participate as exhibitors at this show making use of this golden opportunity.

- Pelham Juriansz

Swedish Trading introduces Hyundai Electronics to Sri Lanka

Swedish Trading Audio Visual Pvt. Ltd., the leading supplier of visual communications products to Sri Lanka, announced the

introduction of Hyundai Flat Panel Computer Monitors and Plasma and LCD televisions to its range.

These high quality top-of-the-range products will elevate the fundamental elements of clarity, visual fidelity and user friendly operation.

With established brand recognition, a globally recognised sales network and product superiority, Hyundai has positioned itself among the top 10 major digital display manufacturers in the world.

Hyundai supplies large quantities of PC monitors and digital TVs to prestigious customers like DELL and NTT. These products are manufactured under stringent quality controls in factories located in Europe and Asia.   

The Hyundai product line includes Plasma and LCD TVs ranging from 17" to 52" and comes with two speakers and a table stand with a wall mount as an optional item. The Plasma TV comes with two TV tuners and has the highest contrast ratio in this category of products. These models are ideally suited for home theatre and digital signage, and a range of complementary items like speakers, amplifiers and cassette decks are also available at Swedish Trading.

The Hyundai LCD Monitors come is three sizes - 15", 17" and 19" and some of the models have additional video capacity and twin tilt facilities.

This Korea-based company is a world leader in the electronics industry and has won many 'Best Product' awards from leading computer magazines published in Germany, USA, Spain and China.

"Never before has the consumer had such a wide selection of quality products from a renowned manufacturer," said Director General, Swedish Trading Audio Visual, B.Basnayake. "Now anyone can experience Hyundai's performance, quality and easy to use products, regardless of their viewing needs," he added.

Hyundai LCD and Plasma display panels are now increasingly used in digital signage applications to display texts, graphics, photographs, videos and broadcast feeds for information, product advertising and entertainment.

These are popularly used in supermarkets, malls, banks, healthcare and the hospitality sectors. Swedish Trading provides complimentary services such as software to create, manage and distribute material and in-house video production facilities for digital signage displays.

Swedish Trading markets a comprehensive line of premium quality high definition visual communication products like Sanya Infocus Multimedia projectors, JVC professional video products, Sennheiser microphones, Samsung visual presenters, DAS speakers, Denon sound systems and Polycom conference systems.

In addition, Swedish Trading also provides an efficient and dependable after sales  service which is coordinated by their Service Centre manned by experienced and qualified personnel.

Swedish Trading is a member of Chandra Senanayake Holdings, a leading group of companies engaged in diverse fields.

Affordable housing for all from Prime Lands

By Pelham Juriansz 

Waxing eloquent about his housing project, which he described as "mega" was  Chairman/Managing Director, Prime Lands (Pvt) Ltd., B.Premalal. Located at D.S.Senanayake Mawatha, Colombo 8, Prime Lands has been in existence for over nine years and this is exactly what they have been providing - a place for people to exist. Well, not just exist but live and live luxuriously at an affordable price.

The company commenced in 1996 and in the ensuing nine years they have managed to carve a niche for itself in the land sales sector. Looking back at the immensely popular projects that have been successful, Prime Lands has proven that they have provided buyers with nothing but the best.

Speaking about their success, Premalal said that the reason behind their success has been the fact that they give better value for money and are selective when it comes to finding land. "We always try to give good land to our customers."

With the vision to create "a better place on earth," Prime Lands has certainly made life easier in a fast and convenient way. A popular name in the land sales sector, Prime Lands makes sure that their customers are given priority and a better product at a reasonable price.

Prime Lands does not limit itself to the mere providing of land but assists customers in getting bank loans. They also help when it comes to construction matters and obtaining approvals for buildings. The company has effectively managed to cut off the hassle involved in buying land.        

 "In the past nine years we have been putting up about 100 land projects, the last 25 or so in the last two years," explained Premalal. "This time we are going to have a mega housing project. With the new bridge coming up we are in the process of putting up these houses in Elakanda, Wattala. These houses will be very conveniently located just 2 kms from the Colombo City limits, which makes it one of the closest to the city. All others projects are further from the city limits. The quality and facilities are excellent and pricing structure is very reasonable.

"Over 125 houses will be built in this project, which is appropriately called Hope Residences. It has all the common amenities like electricity and pipe-borne water. Right round the area of the project there will be a parapet wall coupled with 24 -hour security. Another factor to be noted is that we are very concerned about the infrastructure when selecting land. We are very concerned about the neighbourhood and make sure that prospective customers will have a cordial relationship with their neighbours. In the Wattala area all communities live in harmony with each other. Initially, we will be introducing three types of houses. There is one type with two bed- rooms and two types with three-bedrooms. These are called Wisdom, Harmony and Discovery," said Premalal.

The two bedroomed houses will be 800-850 sq ft, while the three-bedroomed ones will be 1100-1200 sq ft. All the houses have fully tiled floors and covered with a ceiling, verandah, servants toilet, overhead tank and landscapedgarden is given for all types of houses.   

The price range will be very reasonable as it is designed for upper middle- income earners. The extent of the land will be six perches upwards and where land value in Wattala is concerned this is really value for money.

" The customer can pay outright and get a discount or we can arrange loans from the banks and other financial institutions," explained Premalal.

"The launch was on March 13 and clients can reserve their respective houses. Once a house is reserved, within five months we will be able to give the customers the house. We guarantee the quality of the houses that are being built. We have a very experienced team of professionals," said Premalal.

 "Our main theme when we started Prime Lands was to 'provide a better place on earth' and we are making every endeavour to meet that vision," concluded Premalal.

CIM Sri Lanka Region secures first place overseas 
at December 2004 examinations

The Chartered Institute of Marketing (UK) December 2004 examination results released last week proclaimed that the pass rate of the CIM Sri Lanka Region had secured first place in the overseas category.  CIM Sri Lanka been placed second place in the world, the United Kingdom having achieved the best overall pass rate. It is only the United Kingdom and Sri Lanka that have consequently secured a pass rate of  over 50%.  Other overseas regions include Singapore, Malaysia, Hong Kong, Ghana, Australia, Poland, Kenya and New Zealand.

At the final stage (Postgraduate Diploma Stage) of the examination the pass rate was 56.9% with an unprecedented number of 137 students being awarded the diploma. CIM Sri Lanka is proud to note that 103 students were awarded the diploma at the June examination last year resulting in a total of 240 students being awarded the diploma in the year 2004.

In the CIM apparel specific programme, the overall pass rate at the December 2004 examinations stood at 85.4% with 13 students being awarded the diploma. Further in June 2004, 23 students were awarded the diploma making a total of 36 apparel specific diploma holders for the year 2004. 

Oriflame unveils two new Royal fragrances

Oriflame announced recently its launch of two fragrances, inspired by the timeless beauty of Solliden, the enchanting summer residence of the Swedish Royal Family. The scents will be launched in 55 countries with part of the proceeds to benefit World Childhood Foundation.

The original 'Solliden' fragrance was designed more than a decade ago. Since then, it has been sold in small quantities, as a souvenir, in the Royal Palaces and Solliden gift shops in Sweden.

The idea of a new version of the fragrance arose in 2003. The goal of worldwide sales would help to generate funds for the World Childhood Foundation. With permission by Their Majesties, Oriflame is now helping to turn that idea into reality.

The new version of the fragrance has been designed for both men and women, but is still based on the original scent. The products are presented in new elegant glass bottles with the original logo of 'Solliden.'

The World Childhood Foundation (Childhood) was created by H.M. Queen Silvia in 1999. The foundation's mission is to defend the rights of the child to a secure childhood and, in particular, to work for better living conditions for children at risk all over the world. As a co-founder of World Childhood Foundation, Oriflame has already donated more than 20 million SEK to the foundation and its different projects over the years

As a co-founder of Childhood, Oriflame Cosmetics currently participates in charity projects in six different countries: Estonia, Lithuania, Latvia, Poland, Russia and the Ukraine. In addition, Oriflame is involved in ongoing fundraising on behalf of Childhood in both Sweden and Norway. With the worldwide launch of the fragrances Solliden for Him and for Her through 1.5 million sales consultants in 55 countries, Oriflame aims at raising at least another 10 million SEK for the benefit of children. 1,60 _ per bottle will be donated by Oriflame to World Childhood Foundation and to a local charity project.

Oriflame is an international cosmetics company selling direct, with sales in 55 countries. Oriflame offers a complete range of high quality skincare, fragrances and colour cosmetics, marketed through a sales force of over 1.5 million independent sales consultants. Although the company has grown rapidly it never lost sight of its original business concept - natural Swedish cosmetics, sold from friend to friend. Oriflame is a co-founder of World Childhood Foundation. Oriflame Cosmetics is listed on the Stockholm Stock Exchange.

Solliden is an old Swedish word for "sunny hill" and a very fitting description of this royal summer palace situated on the island of land along Sweden's east coast. This place is unique in that it receives more annual sunlight than any other spot in the country.

Several fabulous gardens and luscious parks surround the palace, which was built in Italian style by Queen Victoria of Sweden and was completed in 1906. In 1950 the present king of Sweden, Carl XVI Gustaf, inherited the palace. He has spent most of his summer holidays at Solliden ever since - during the last couple of decades with his own family.

Solliden's extensive gardens and parkland are considered by many to be among the finest in Sweden. They also hold a number of delicate sculptures and statues. The gardens feature a pergola outside the main building, an Italian garden in renaissance style, an English park with elements of southern flora, as well as plane trees, cypresses and tulip trees.

Solliden for Her and for Him by Azur Fragrances were developed out of the original Solliden unisex fragrance. Founded in 1978, this fragrance house has its headquarters in Grasse, with its centuries' old association with perfumery, and its creative centre in Paris.

When presented with a once in a lifetime opportunity to create a fragrance worthy of a King and a Queen, Azur Fragrances assembled all its forces. After months of trying, testing, adjusting and fine-tuning the result was presented to Their Majesties the King and the Queen of Sweden, who gave their assent.

Solliden for Her is a fresh bouquet of rose, jasmine and ylang ylang. Interwoven in this bouquet are natural green notes highlighted with a touch of green leaves. In order to give this creation depth, warmth and long lasting diffusion, the perfumer has incorporated both sandalwood and white musk.

Solliden for Him belongs to the very popular fresh and spicy family of men's fragrances.

The fresh notes of mandarin, orange and bergamot give this creation a zesty and easy-to- wear top note. Lavender, pimento and nutmeg help accentuate the natural qualities of the fragrance while at the same time giving it an original, spicy 'man of the world' personality. Gaiac wood and transparent musk help guarantee the power and long lastingness of the fragrance.

These scents obviously deserve the very finest presentation: the highest quality glass with a heavy base and arching forms that are reminiscent of Solliden's architecture. A classic design exuding timeless elegance, the form is intricate but the execution is exceedingly simple.

TMC training programme for counsellors 

Dealing with the issues of the mind is as important as supplying material needs and building houses. With this in mind a training programme for counsellors for training for post tsunami trauma management was held last week at the Apollo Hospital.

Eighty five people attended the training programme in Colombo held by the CMI-TMC Chartered Management Institute in collaboration with the Management Club who obtained the assistance of the Head, Department of Psychiatry, Stanley Medical College & Hospital, Chennai and Professor, Indian Association of Private Psychiatry, Tamil Nadu Branch, Prof M .Tirunavakkarasu.

Seven people from the institute travelled down to Colombo to train about 85 in Colombo and another 85 in Batticaloa and about 60 in Galle.

In an exclusive interview with Prof. Tirunavakkarasu, The Sunday Leader was able to glean the following facts about his trip to Colombo.

"Actually the aim of the programme is how to cope with the disaster that has occurred. This disaster can affect people at different levels. There is the person who is directly involved and then there is the person who is not directly involved. Nobody is untouched by this abnormal situation. The immediate observation is that we see the physical and material loss which is very obvious.

But the injury to the mind is not obviously seen, it is not measurable. In a disaster of this kind the individual, culture and the topography is affected.

A person is put under an enormous amount of pressure called stress. Depending upon the loss, injury, physical damage, as well as based upon the individual's make up and self esteem, the individual reacts. This is called the emotional reaction to stress.

Grief is the normal reaction to an abnormal event like the tsunami. At first what is needed is practical physical help and basic amenities to be fulfilled like food, shelter and other amenities. After the acute phase is over the second phase begins.

Depending on the factors enumerated above the people resolve the issue and come to a normal level, but a considerable number of people were unable to resolve themselves.

If they do not relapse within these 45 days it denotes that the coping facility has faulted or is faulty.

The rescue workers must be made aware of the psychological and psycho-social impact of the disaster.

A human being wants any type of injury to be healed very fast without leaving a scar at the physical level.

When it comes to the psychic level whatever injury has taken place it must be healed without a scar.

If they fail to recover properly, that will result in mental disability. Then they must be helped, assisted and guided to recover in a healthy way so that the mental health of he individual is reserved.

Keeping in view the enormous volume of the people affected this cannot be done effectively by mental health professionals. We have to identify volunteers who have motivation and individuals to train them to identify the vulnerable population and get the expertise from the experts and how to help or facilitate recovery.

In this process the CMI-TMC has done a wonderful job by getting these volunteers and exposing them to the expertise and enrich them with the knowledge of the impact of the disaster.

The workers experience must be documented, recognised, appreciated and kept as a manual or guide for the future. Counselling and guidance is not only an art, it is a science and a speciality," explained Dr. Thirunavukkarasu.

- Pelham Juriansz

'Rulers must think country first'

In a hard hitting interview with The Sunday Leader, veteran banker and Chairman, Hatton National Bank, Rienzie Wijethileke lashed out at politicians in general and the present rulers in particular for the sad state of the country. "The leadership in this country does not want progress to be visible at a cost to their public support or their goodwill, or their friendship with people. That is apparent. That is the problem here. That is their priority. We can see many instances. So it is a question of complete changes in attitude by the leadership," asserts Wijethileke. Following are excerpts.  

Q: Mr. Wijethilake you have been in banking for a long period of time, how many years have you been in banking?

A: I have been in banking for 45 years, including about 10 years abroad, in two spells. Four and a half years in London in the late '60s and early '70s where I got involved in city banking in London itself, in the Bank of Ceylon but before that I had a long spell about  six or seven years, in Bank of Ceylon Colombo in another branch. Then after I came down from London I joined HNB which was still in the formative years. It was still a relatively new bank. I believe I made a contribution at this stage. I participated in the initial progress of HNB in the opening of branches etc. I was at that stage in the middle level management.

I rose up to the point of being given the largest branch of the bank to manage at the time in 1983. After a while I decided to take another break.

Due to personal financial difficulties I had at that time - we didn't get big salaries like now - I went to the British Bank, which was HSBC, in the Middle East as a financial facilities controller. I was there for four and a half years. I got a good salary and got over my financial difficulties.

Then I was invited once again to HNB in 1987, when my predecessor in office was due to retire. He told me to come back to succeed him and I took up the position of CEO in 1988 in HNB. I have just been able to get relieved from the CEO's position early this year, after 17 years of being in the hot seat.

Q: How many branches do you have?

A: Now we have 140 branches; we had about 33 branches when I took over in 1988. More than the number of branches the important thing (in 1988 even the earlier management was branching out) what I realised when I took over was the main strategy. It was to take banking to the poorer people.

I was always of the view that 75-80 percent of our people are rural based, they are poor people, unless banks provide them the required facilities for their economic growth, this country can never develop. With 80 percent of the people not being provided with basic financial facilities, I decided to branch out particularly to the remote areas and take banking services to them. I am very happy that other bigger banks, private banks have set up branches in these areas.

The answer to our economic questions are in provision of financial services in the outstations, in the remote areas. Even when President Premadasa was going through with his Gam Udawa programme, and when I met him  a couple of times with my late chairman, I told him 'Sir when you put up a Gam Udawa, please make sure that you put up a branch of  a bank in that area - it may not be HNB, it can be any bank - because if there is a branch of a bank that creates economic activity and intermediary services, that will definitely help to sustain what you are doing' and he said 'Yes, very good.'

Unfortunately I suppose the bureaucracy did not consider this important. We can see today the  Gam Udawa, which he did with such a good vision, decaying. Now places like Buttala and Tissamaharama are areas where he really went and opened out, are neglected.

The reason is that the financial services are not available now. HNB started this strategy and we are continuing, and this strategy is being followed by other banks as well.

Q: Have the political authorities led by facilitating economic progress in the rural areas?

A: No, not to the extent which I feel is necessary. I believe that this country's biggest problem has been that this de-centralisation has caused a lot of backward processes. Earlier, we had an individual personality called the government agent - invariably the government agents were Europeans, Englishmen - my father was a senior government servant, I knew he worked under a couple of Europeans. Then later on this was taken over by very senior, responsible, committed Sri Lankans as government agents.

The government agent in that area had all the authority to do anything and everything and he was not questioned because he was a man of credibility, he decided on everything. All the other authorities were under him. But this de-centralisation at the district councils, which was started in the late '70s, I think has taken us backwards, though its intentions would have been different.

But we have created further layers and layers  of administrative barriers. To get anything done in a village, you got to start from the grama sevaka, go up to the minister or the district minister,  start from the minister come down to the district minister, it is a long process. Layers and layers of barriers naturally hinders progress.

You start a project, later you question the man who started the project and he will tell you he is fed up at the end of it.

The concept would have been good, but our system and bureaucracy has created these blocks which is causing frustration.

Q: Would you consider it a truth, if you say that these different layers have also led to corruption at all levels?

A: Well in plenty, that has to come, that goes without saying. Corruption is something which somebody will argue saying that the Asian region is very corrupt. Ok, we know corruption is there, we know that those days, when we were young if somebody took Rs. 5000 or Rs. 500 to get a telephone connection the grama sevaka would be locked up, that was in a small scale. But today corruption has come up to such high proportions. What we can do is not only to eliminate corruption, I don't think that is possible unless there is a strong dictator, but we should try to minimise, by avoiding these types of barriers.

The whole trouble today, even we have experienced, is that for example, you go to get a water connection or electricity connection, you go with some problem - you go to get your pension after a man dies, I know of a sister of a widow of a former minister who had to wait one and a half years to get the pension. She was going up and down having submitted the original documents. I myself mediated on her behalf but despite that it took long. This is what is happening in the country. Something drastic has to take place to sort this out.

Q: Would you despite the media, time and again highlighting corrupt or suspicious practice, there has been no response, neither from the public nor the political authority?

A: It is the saddest of situations. In fairness, I can tell you there have been enough exposes of corrupt practices. I myself have taken up individual instances, as you know in my position I am in touch with all the leaders of all the parties, they are all good with me, they talk to me, I get the opportunity to talk with them about the country's problems. I have asked them 'Why haven't you taken action?' The excuse they give is, 'there is no proof, only an accusation.'

But it is useless, if in my organisation for example, if I suspect that someone has been up to mischief, I will take that person out of there until he is proven innocent, to uphold the organisation's morale. In government this does not happen. The famous excuse they give, from the time of late J.R Jayewardene, they say 'No, there is only talk, no proof.'

But we know that there'll be proof if one is to pursue.

Q: There is a perception that proof won't be forthcoming for fear of reprisal against the person who gives evidence?

A: That is also there. This morning I saw some witness or judge has been threatened by the underworld, so this creation of the underworld, creation of the corruption, creation of this bureaucracy, this is all part and parcel of our politicians who governed this country for the last 55 years.

There were shades of statesmanship for instance when D.S.Senanayake started the Gal Oya scheme, we still see the difference. Dudley Senanayake had the agriculture revolutions and we saw the benefit, Sir John Kotelawala was a disciplined leader though he did some foolish things. Yet he showed discipline. Well I can't talk much of the others, Premadasa of course was conscious of the poor peoples requirements, and he did a lot to bring about some sort of equality among people.

I can't see any statesman-like actions by any other leader who has governed this country.

Q: You also have a system, where when somebody tries to get these changes effected, he is pulled down.

A: That is the problem here; the leadership in this country does not want progress to be visible at a cost to their public support, or their goodwill or their friendship with people. That is apparent. That is the problem here. That is their priority. We can see many instances. So it is a question of complete changes in attitude by the leadership.

Q: We also read recently the Auditor General had highlighted that in the President's Fund, a large sum of money had not been accounted for, but still there is no public outcry.

A: I am also very sad and amazed, 420 odd million rupees  if I remember right, the report said. That's 420 odd million rupees. The chief accountant himself had accepted the fact. The Auditor General is a responsible government servant. If he had made a wrong report, action should be taken against him.

But for the time being we've got to accept that the Auditor General's report is factual, genuine and authentic. On that basis my question is not from anybody else. There is supposed to be a board of governors who are managing this President's Fund. The President's Fund is a public fund, remember. Individuals don't matter here. It's public funds - Rs. 420 odd million is not small money and somebody had been acting irresponsibly.

My question is for the President's Fund governing board. If I remember right, consisted of four important officials, the president, prime minister, speaker and leader of the opposition. My question to all four of them is 'What have you done over this?' During the three years, there has not been a single meeting to disburse funds.

In our organisation, we have put up this building for Rs. 6 billion, over a three year period. Has anybody made questions over any tender or order? The people who have made this building, to whom we gave contracts, are all our costumers. Not a single question has been asked about what we did.

Q: So what you are saying is that even though meetings are not held it is the responsibility of the other members...

A: The public, the prime minister, the leader of the opposition should have by now questioned the chief authority, what have they done? Get to the bottom. The whole trouble is that we identify something  has gone wrong, but no action is taken. We have no culprits, we have nobody being found guilty.

 So this is the biggest problem, this President's Fund, 420 odd million rupees, I follow up my papers, I read my papers, I read all the details, I did not see any denial by any of the government officials on the report that came out two weeks ago. Which means that they can't deny that. If that is the case what has the political leadership in this country or in parliament done to get to the truth of it. It is a very serious matter from our point of view, even 10 million rupees is big money, just see the amount of poor people suffering.

Q: Particularly when it comes from a fund administered by the highest authority of this land?

A: Yes, exactly, these four people whom I mentioned by designation - president, speaker, prime minister and leader of the opposition, all four are equally responsible. Please make a note, equally responsible for the mismanagement of the President's Fund.

Why haven't they asked the pertinent questions from those in authority to ensure where this money has gone? This President's Fund monies could have otherwise been made use of for development. How many universities could have been built? How many medical colleges could we have built? How many schools could we have built? So, those are the questions we have to ask.

Q: This kind of lethargy has now crept in to all levels, even to micro levels. Today we see people who don't even know how to walk on the streets. There is absolutely no discipline at any level. Would you also say that has crept in over the years through political inaction?

A: Of course. We don't need to go to the Western countries. Western countries have had  systems of discipline, system of government, which we have been following. Take a Middle Eastern country. When I went by ship, my first trip to UK was by ship, Dubai was never heard of, there was a small port called Aden. The ship would go and land there. These people will tow the goods onto the ship and we will throw the money down stairs to the people on the beach. That was Aden, and am talking of 30 years ago. But now Dubai, Abu Dhabi, Bahrain, Doha, these countries are good examples.

The reason is as you rightly said, discipline at the top. If there is no discipline at the top, discipline won't come.

I am a father of three children and I have three grandchildren, if I am not disciplined I can't expect my children or grandchildren to be disciplined.

Q: We see that people can be bought or people can be whipped up emotionally to come for protests in Colombo for things like environmental purposes or against some action of a university and so on. But none of the people stick together and demand their rights. Like pavements to walk on, like public utilities, a better bus service, better rail service. Why do you think that is?

A: That is exactly what it is today. The people are being taken for a damn big ride by the politicians of every party at every election. They promise something and say that they would deliver and the people very well know that they don't deliver and they get caught out.

But as you rightly say people are not conscious of their rights. They are not playing an influential role in public life, they are all informal 'Ah let somebody else do it, it's not my job..' They are all looking after themselves; they don't want to cross against powerful people. Whether it is the police, or any other authority or politician. They keep smiling.

In other words what we have done is, we have sacrificed  the economic freedom of this country. It has been totally sacrificed for political freedom, being able to go and shout. Now see the university problem?  They don't want private universities, they are preventing the university children from studying. We know that the people who are getting into universities are going for one year, so what is wrong? This country is only going backwards.

This world commercially is becoming smaller. Globally we are becoming smaller. The territories are getting smudged or erased. If we still think that we can live on our own without looking at this, it will not simply work. This slogan would have been popular 20, 30, 40 years ago. We know what has happened to the Soviet Union. We know that the Communist slogans are very rosy. But it simply did not work in the world... and they themselves have changed. But in our country they are still trying to be.

Q: Certain political parties advocate, tell the people that the state owes you a living. The people have accepted that the state must give them everything, do you think this has also contributed to the rot?

A: In fairness, President Premadasa did a lot to keep that aspect culturally, away. He said no, you can stand on your own feet. That is the message he got through Janasaviya. Don't depend on the state. You remember the '50s when Dudley Senanayake raised the flour subsidy by about 25 cents? He resigned his position.

Today the people are not fighting for subsidies, food stamps. They are not concerned. They are prepared to live on their own, get on their own feet, but the problem is they should be given the opportunity. They are not being given the opportunity. We know that some people thrive on that. Promise this, promise that, promise a subsidy, promises, promises.

We have to help the people to sustain themselves and become strong, the whole trouble is the message that we take to the people by these politicians, with ulterior motives is something different. And unfortunately in our country the vote base is in the majority. You and I just who can understand these things are not the vote base, that's why they do not care two hoots for us. That is the unfortunate situation we are in.

Q: Would you say that de-centralisation and taking politics to the rural areas has increased the standards of the politicians that have come to hold office?

A: Of course it has not, but that has been the major problem even for the insurrection. I remember in 1989..the report written on the insurrection, one young boy said "Sir I was in the same central school with so and so, I went up to my O/L and A/L, I got the university degree now.  Here I am keeping my  hunger away , I am doing nothing at home, but I saw this other person who could not get through. He is going about in Pajeros in the village.

The youth had said that, and I read it myself. The boy said, 'So what do you expect me to do. I studied up to the university, I have my degree, I am doing nothing.'  A youth said that. We are talking about 15 years ago. It was said; it was on record. The man who could not do his A/L's.., he was messing around, he was conning around,  but that fellow was able to go in the village in a Pajero. He became a politician. I am not talking of an individual, but this whole set up has caused this.

Q: What you are saying is that the standards of politicians have come down?

A: Obliviously. I mean, this is not so in other countries. We know it and I don't have to tell you if a politician, or an accusation against a politician , just an atom of suspicion, the politician steps down. Have you ever had, for the last 20 years.. I am asking one simple question 'Have you had a single politician stepping down from his job or his position on account, except for I remember Gamini Jayasuriya because he didn't agree with. this thing.. Have you heard of any minister?'

But how many have been accused of corruption, of mismanagement? In our organisation, every one of my officers are rated regularly, judged. what they are doing.. But here nobody is being pulled up. And we change them around.

Q: The presidential system of governance is now  in the public eye. Would you think, at this point in time, with tsunami and other catastrophes we have had, a referendum is a right thing to have at this time before the reconstruction and rehabilitation is done?

A: One big problem this country has been having with is with the leaders. They have not got their priorities right. Once again we have a clear instance of our losing out on our priorities. Even if you are blind you'd understand  that our priority is to help the thousands of people to get back on their feet. Funds are supposed to come, funds are available, there are people prepared to give the funds, there are people who are prepared to come to put up these projects. We have to build schools, we have to build universities, we have to build hospitals, we have to build roads, we have to build railways. There are enough and more opportunities for us to rehabilitate this country, which is a practical exercise, which requires the focus of everybody in this country, including the corporate sector, including the politicians, in short including everybody.

I don't see a relevance of what is being spoken of, even the devolution of power, or the ethnic issue. Now, there is a situation now, a ceasefire agreement is there. There is the question of two sides now getting together and trying to take this forward. A referendum on a question on the ceasefire is not going to be relevant at all. After all the question now is that these two sides are having wide ideas, they should get closer.

The people's voice should or has to come only at a time when these two. come to some sort of agreement.

Q: What you are saying is that there should be an agreement right now  for rehabilitation?

A: Exactly. So the question is. There is no issue now for a referendum. Because even if through a referendum a question is asked about devolution, if it is a yes or a no, it can create further problems because we are going to divide this country. If the proportion is 49, 51 for the question that is going to be asked, it is going to again create problems in this country.

Even to get these two groups - the LTTE and the Sri Lankan government together is important. and then come to, of course, the presidential system. The presidential system is there now, but that issue can be put off. The question, ok, there is an individual who is finishing her term that is not relevant here, today, that is not relevant. Somebody comes, somebody goes.

King Dutugemunu lived,  he died, he was the saviour of the Sinhala nation, has the Sinhala nation died? Buddha lived, Buddhism survived, Buddha passed away so many years ago has Buddhism died? This is so with Jesus, so with everybody else.

Leaders have to come, leaders have to go, but the country has to survive, the country has to go on.

Q: What you are saying is this system is like relay running, you run your lap and hand over to the next generation

A: Nobody in this country should believe or think that he or she is indispensable. Nobody is indispensable anywhere. We have to survive, we have to survive without anybody. Now see President Clinton was supposed to have left a very successful financial  situation for America, now was he considered indispensable? Of course the problems are there, but why are we trying to focus on wrong priorities?

Q: Incidentally, since you spoke of the USA, there is a perception among certain political parties that everything can be done locally, that we must get back to a local economy, what are your views?

A: Well the thing is it is the most narrowest way of looking at this, this would have been applicable 30, 40 years ago. Today the whole world is becoming smaller commercially; we have got to share what we have with our neighbours, with the other countries. Otherwise  we are not going to be part and parcel of the global set up.

Now take India, what was India 12 to 15 years ago? We had so many differences with India, today I am happy that India is our strongest neighbour, and the strongest benefit we have. We are the same people, we have hardly any difference in our culture or religion or language.

Now the way some people are preaching, they don't want the World Bank, they don't want the NGOs, they don't want the ADB, then what do we have, can we sell sweep tickets and solve our problems?

So that is the question we have to ask, I am sure these people are trying to mislead the people once again and create a problem. No other country has problems like India has, such a massive population, housing problems, unemployment problems, poverty problems, but haven't we seen their progress? You go to Chennai now. What was Madras 10 years ago and what is it today?  Our problems are a fraction of the problems that India is facing. Why cant we get together and settle it, instead of looking at narrow faulty theories and doctrines meant to just mislead the people and deceive the people, that is what they are trying to do.

Q: Would you say most of the public sector senior people are underpaid and that is why corruption and taking of bribes has been rampant, because corruption and bribery, if it is low risk and high return they thrive.do you think that is one of the reasons?

A: Well it is part of a broader question. Today this country requires public sector reforms. Now in my bank, there are a number of employees and varied salaries are paid to them. I got to make sure that salaries are matched with the services they give the institution.

I am not going to keep anybody who is going to be a passenger. If there is no return, out he goes. In the government service it is not easy to do it, it has to be gradually introduced. I think President Premadasa tried to bring about some sort of discipline among public servants.  I am not for a moment saying public servants should not be paid extra, but there should be a system or a mechanism. Ok, pay them extra but see that they give you a return. It should be a two way street.

We are paying the public servants. We are paying for the public services, if we are not getting the services from the public, why should we pay? We are paying out of our taxes. I am one of the largest taxpayers as an individual in this country but what do I get for my taxes?

Q: You mentioned President Premadasa at least four or five times, you feel that he has made some impression during his .

A: When he was among the living I saw some of the weaknesses he had in his administration. That I do not want to mention, he is dead and gone now. But now I come to realise that if he had lived for another five to 10 years and led this country, I am sure our country would have been in a different position. He had discipline within himself and he had a strategy, which he imposed at any cost. If he wanted to do something he saw that it was done. Unfortunately we didn't have leaders like that. That is what I realise now.

It is very unfortunate for the country, because he had a certain strategy. He didn't tolerate nonsense, he didn't tolerate inefficiency. Corruption I don't say yes or no because he didn't, but whatever it is, he delivered. What we want today is delivery. There is no delivery in this country. He delivered what the people expected, maybe not 100 percent  But the country is unfortunate

Q: Finally how would you see Sri Lanka 10 years hence?

A: Unless there are some very drastic changes in attitude by our political leaders, I am afraid we are once again missing a good opportunity, and if we miss this opportunity, I am talking of  the aid that is supposed to be made available to us. There are so many areas, lets see, particularly after this Iraq problem, the African countries, the poorer countries have plenty of requirements. Remember that there are plenty of requirements in those countries and it is the same agencies who are taking up those cases also. And mind you, those countries have something the Western countries would like to get back. They have  oil, they have  trade, they have  opportunities to get something back.

But in Sri Lanka what do we have? So unless we open our eyes and make use of these opportunities we will be left behind. I think the most important thing is that while accepting the fact that we have to maintain our cultural values, our social values, it is our duty but economic advancement must go on.

My religion is in my mind, my language is in my mind. I don't have to put a label and say I am a Buddhist or a Sinhalese or a Catholic, it is not necessary, it is not relevant.

If we all look after our cultural values within ourselves and our families, we have looked after ourselves. Christianity, Buddhism and Hinduism have survived in this country for centuries, we don't have to label ourselves and hit the other man. Religions and culture will look after itself and our national identity will remain but at the same time unless we open out and our leadership has a change in attitude, I am afraid our country will be again on a backward journey.

Standard Chartered expanding rapidly in SL

Standard Chartered Bank's Consumer Banking is a business on the move, expanding its customer base and product segment and getting more innovative every year, stated Head of Consumer Banking, Standard Chartered Bank in Sri Lanka, Sabry Ghouse.

Last year saw Standard Chartered expand and strengthen their position as a market leader and innovator in Sri Lanka. A clear leader in acquisition of new credit cards the bank focused on ensuring customers were provided with a clear value proposition as the product differentiator.

Standard Chartered's credit  card features include 55 days credit - the highest in the market , one rupee for every Bonus point in the loyalty programme, the pioneer of  zero interest installment loans (and the Visa mini credit card among others) and a unique corporate  social responsibility offering - Sight for the blind.

"By being innovative and introducing global best practices we are not only serving our customers but we are contributing towards the growth and development of the overall industry" explained Ghouse. "As a responsible financial institution the moral onus is on us not merely to sell our products and services but also to develop the markets in which we operate in being the right partner. For example to ensure access to services to all citizens immaterial of geographic location, that is why we have extended our credit card sales throughout Sri Lanka, establishing credit card payment centres, islandwide through our partner bank Commercial Bank.

"Our virtual selling prowess of marketing cards and loans has gone outside Colombo and extends to other key urban cities. Personal loans have also remained a mainstay in the retail business. It is now extended to a range of companies giving exclusive benefits to individuals. From an unmatched service, with dedicated contact points, a 24 hour turnaround, discounted credit cards and a free life insurance policy. This has proven a successful value addition given the recent tsunami disaster. The only bank with this cover that helped both the customers' kin and the bank in the aftermath of our unforeseen disaster. We give our customer protection and comfort at the same time.

"Also on our wealth management, we have an array of offerings though our branch networks and Phone Banking/I-banking services. They all serve our customer needs and helps to transact in a short and superior timeline giving our customers the freedom of using time for other purposes," said Ghouse.

"We have also, together with our customers, restored sight to the vision impaired, as part of our CSR programme. We are committed to making  a difference in the communities in which we operate. We will not put profit before principles. Our focus is on a triple bottom line strategy where, we are 'Leading the way through people' who are our most important asset, in delivering value to our customers and communities in which we are present," explained Ghouse.

Globally as well Standard Chartered is rapidly growing its customer base. In 2004, Standard Chartered added a number of acquisitions and alliances complementing their organic growth. Most recently, they entered into an agreement to acquire Korea First Bank for US$ 3.3 billion. Acquisition of Korea First Bank will give Standard Chartered a strong presence in the world's 10th largest economy and bring with it 400 branches, 2,100 ATMs, 3 million retail customers and 2.6 million e-banking customers ( more than the adult population of Singapore).

"We set ourselves ambitious performance goals and have consistently  delivered against them. We have strengthened the infrastructure and technology of the bank. We have developed a robust risk management capability; we are reinvigorating  our brand; we have increased staff engagement and deepened  our talent pool. All this translates into better service  and products for our retail customers and once again I can assure all Standard Chartered customers they certainly have a lot to look forward to," stated Ghouse.

New value additions to Sampath NRFC accounts

Non-Resident Foreign Currency Account (NRFC) is an incentive scheme offered to Sri Lankans who are employed abroad.  It enables them to repatriate their foreign currency earnings to Sri Lanka by permitting them to maintain accounts in designated foreign currencies thereby dispensing with the need to hold such funds in bank accounts overseas.

"Sampath Bank pays interest on NRFC deposits at very competitive rates and we also have in place a scheme to grant our NRFC customers housing loans in foreign currencies as well.  A unique feature of NRFC from Sampath Bank is the unparalleled convenience offered to our customers" said Asst. General Manager - Branch Credit, Sampath Bank, Kapila Chandradasa speaking to The Sunday Leader.

"Customers who have NRFC from Sampath Bank can access their accounts using our telephone banking, internet banking and mobile phone banking facilities or by using their SET card.  The SET card provides easy access to NRFC accounts through our large, growing network of SET machines in Sri Lanka and also through the global CIRRUS ATM network from any part of the world.

"It also has the facility to pay for purchases at shops, supermarkets and other merchants who are linked to the MAESTRO network both in Sri Lanka and abroad.  Upto six accounts can be linked to each SET card thereby permitting transfers between such accounts, balance inquiries, statement requests etc. to be performed at a SET machine in addition to the cash and payment facilities mentioned above.  Customers may if they so wish give access to their accounts to the members of their immediate family by subscribing to the SET FAMILY card,"  Chandradasa added.

Speaking about the foreign currency housing loan scheme, Chandradasa said that Sri Lankans employed abroad who are in a position to service such loans in foreign currencies are eligible for this scheme.  They should have an income in excess of the equivalent of Rs.20,000 in foreign currency ( individually or jointly with spouse ) and also have been in employment overseas for a minimum period of two years.

Sri Lankan citizens employed abroad are eligible to open NRFC accounts even if they have since obtained citizenship of another country.  Sri Lankans employed abroad and returned to Sri Lanka can also open an NRFC account at Sampath Bank provided they do so within 90 days of their return to Sri Lanka.  A person who has a NRFC with another bank in Sri Lanka can have their account transferred to Sampath Bank even after the 90 days period.

Account can be opened in the form of savings or fixed deposits in US Dollar, Sterling Pound, Euro, Japanese Yen, Singapore Dollar, Australian Dollar or Canadian Dollar currencies.  Interest earnings on NRFC are exempted from income tax and funds can be remitted from NRFC accounts for authorised purposes without any prior approval from the Exchange Control Department.

Industrial Finance records 44% increase in profit

Industrial  Finance Limited completed its third quarter with a profit of Rs. 9.2 million which is a 44% increase compared to the profit for the same period the previous year. The core capital of the company was further strengthened in the third quarter by a capital infusion by way of a rights issue.

The company which is registered with the Central Bank to accept term deposits from the public intends to offer savings accounts facilities in the near future. The savings accounts would enable the small time saver to adhere to the age old adage of 'saving for a rainy day' with  flexibility to withdraw in case of an emergency.

While being attractive to the small time saver, it would also help those with idle cash to earn an income during a short period. Having accepted and serviced depositors for more than four decades, customers could rely upon and benefit from the services of an experienced and dedicated staff. Attractive rates are expected to be offered on these accounts

The funds mobilised from the public are used to offer lease and hire purchase facilities to small and medium scale businesses and individuals.

The company is also engaged in real estate development and is presently concluding a project in Bandarawela.

DFCC Vardhana - a full-fledged commercial bank

By Easwaran Rutnam

DFCC Vardhana Bank has grown from strength to strength since its inception in August 2003 offering products that are customer orientated.

A subsidiary of DFCC Bank, DFCC Vardhana operates from 11 DFCC Bank branches islandwide.

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

Among the novel products offered by DFCC Vardhana is the Super Savings account.

The account gives the opportunity to optimise return of funds and the flexibility to interchange funds via the current and savings account.

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.

While Super Savings account holders will also be provided with a life insurance cover depending on their savings and a period of time, which the bank will look into, the Super Savings account is not confined to Sri Lankan savings alone.

Non Resident Foreign Current (NRFC) holders could also use this savings scheme and deposit foreign currency in their savings account.

Another novel product of the bank is the Vardhana Junior Savings account.

The account gives an opportunity for parents and guardians to start a savings account from the day a child is born upto 18 years of age.

The Vardhana Junior Savings account also offers computer training programmes, computers, etc., thus investing in the child's future.

Head of Credit, DFCC, Shanthi Goonaratne speaking to The Sunday Leader said that the bank believes in superior customer service and identifies the personal banking needs of the customer.

"This is the key behind the success of the bank" Goonaratne noted.

A veteran of more that 30 years in the banking industry Goonaratne emphasised that having a good rapport with the customer is important for a bank to be successful.

"DFCC Vardhana has an experienced staff who are customer oriented. This helps us safeguard our customer base and bring in new clients as well," she said.

The added backing of DFCC Bank that has earned the Fitch AA- rating gives a boost to customer confidence when banking with DFCC Vardhana.

Goonaratne says the vision at DFCC Bank is to be Sri Lanka's premier financial services group and with DFCC Vardhana Bank, the bank has fulfilled a request by clients to offer commercial banking facilities to its clientele.

DFCC 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 sectors and private sector companies to set up various industries, plantations and factories.

DFCC Bank has been associated with a stream of significant financial innovations, underpinning its reputation as a market leader. It continues to thrive on the winds of change, seizing opportunities as they come and making it possible for their customers to reach new horizons.

HSBC wins Unilever cash management mandate

Unilever Group, one of the world's largest suppliers of consumer goods in foods, household and personal care products, has awarded HSBC its cash management mandate covering 17 countries and territories in Asia.

The mandate is one of the largest ever granted in the region in terms of complexity and geographical spread. It is the first time Unilever has granted a pan-regional cash management mandate in Asia, which is replacing a patchwork of local arrangements that included a variety of financial institutions.

"The project is an integral component of our 'World Class Finance' vision," said Shonaid Jemmett-Page, Unilever Asia's senior vice president, finance and IT. "The benefits will be significant for the Unilever Group in Asia."

The mandate covers all areas of payments and liquidity management using HSBC's market-leading suite of liquidity management and integrated payment solutions. HSBC's host-to-host solution, HSBC Connect, will be integrated with Unilever's ERP systems and will be the prime delivery channel for payment files of all Unilever's operations in 17 countries, as well as the conduit to receive related management information. The bank's market-leading web based platform, HSBCnet, will be used for balance and transaction reporting and for payments management processes.

"HSBC's combination of a technically superior and innovative product set, coupled with its world-class team of cash management professionals, makes them an obvious choice as a cash management banking partner," said Toshio Maei, regional treasurer, Unilever Asia.

"Strong teamwork,  combined with innovative solutions and a very clear commitment towards ensuring a successful implementation were key factors in winning this deal," said Lawrence Webb, HSBC's head of payments and cash management for Asia.

HSBC's integrated suite of cash management services will bring Unilever significant benefits, including:

     an automated cross-border liquidity management structure to maximise surplus cash for internal funding and to enhance yield management;

     a standardised and centralised payment process for all domestic and cross border payment types;

     cost savings from a streamlined and automated payment process through integration with Unilever's ERP systems; and

      improved cash flow and management information via host-to-host and web based channels.

"This mandate reinforces HSBC's position as the leading cash management bank in Asia.  It is further market endorsement of our major investment in products and people in Asia over the past three years," said Marilyn Spearing, global head of payments and cash management for HSBC.

Seylan Grameen fixed deposits introduced

Seylan Bank has introduced a new one year fixed deposit branded Seylan Grameen Fixed Deposit. The deposit carries a premium interest rate of 1.5% over the normal one year fixed deposit rate and a draw every three months with prizes comprising much sought after household appliances such as refrigerators, televisions, washing machines and rice cookers. In addition a grand draw at the end of 12 months offers a house worth Rs. 2.5 million and five three wheelers to the lucky winners.

Every Rs. 1,000 invested would entitle the investors to one chance in a draw every three months as well as in the grand draw. Likewise, lump sum deposits would entitle the investor that many chances made up of one chance per Rs. 1,000. As such investors in this product, gain in two ways. An enhanced interest rate as well automatic inclusion in the draw mentioned above, depending on when they make the investment during the 12 month period beginning, February 21.

BoC and Sampath form largest online ATM network in Sri Lanka

The state and private sector banking giants, Bank of Ceylon and Sampath Bank signed an agreement to provide wider services to their ATM (Automated Teller Machine) users.

The new extended BOC - Sampath ATM network comprises over 200 Automated Teller Machines and will be expanded with both banks planning to add at least 75 more ATMs to the network during this year.

"Both BOC and Sampath customers would be able to access their primary savings and current accounts through each other's Automated Teller Machines. Cash withdrawals and balance inquiry functions would be available for their accounts through this network. This service will be available 24 hours, 365 days of the year" said General Manager, BOC, S.N.P. Palihena.

"The state of the art technology of Sampath would blend with Bank of Ceylon's large branch network to ensure an improved service to customers of both banks. This joined Automated Teller Machine has been co-branded as LEAP - Lanka Electronic Access Point and both Bank of Ceylon and Sampath Bank customers would be able to access their accounts through any Automated Teller Machine which carries the LEAP logo," explained Sampath Bank Managing Director, Anil Amarasuriya addressing the launch.

This agreement has allowed Automated Teller Machine cardholders of Bank of Ceylon and Sampath Bank to use over 200 ATMs for their day-to-day transactions. It is reported that around 30,000 transactions on average are done through Sampath ATMs daily and the tie-up would also increase the availability of ATMs for each other's customers.

The prominent information technology leader in the local financial services industry, Sampath Bank has a strong established presence in the Sri Lankan market while Bank of Ceylon provides a wider service through its branches located throughout the country. Through Sampath Bank's extensive real time on-line branch network Bank of Ceylon customers will also enjoy a host of Automated Teller Machine services tended by Sampath Bank.

With this pioneering partner bank agreement in place each bank will allow their Automated Teller Machine card holders greater access via an extensive branch network by joined synergies at a nominal fee of Rs. 15 service charge per transaction where the normal charge is Rs. 50 per transaction.

Both banks are in the process of improving Automated Machine services further and will shortly install new state of the art Automated Teller Machine switches and rapid expansion of the LEAP network is expected.

Headvertising - innovative marketing by PABC

By Easwaran Rutnam 

Pan Asia Banking Corporation Limited (PABC Bank) has launched an innovative and cost effective medium to create mass awareness to the bank - called 'Headvertising.'

Speaking to The Sunday Leader on the concept behind Headvertising, Deputy Chief Executive Officer, PABC Bank, Bradley Emerson said they got the idea after seeing it successfully tried out in Japan by carmaker Toyota.

"We thought it was an innovative idea so we decided to implement it to market our brand which is the bank and its logo" Emerson said.

The bank re-launched its logo in October last year which depicts two arrows facing either side within a circle and Emerson says it has begun to reap results in the bank operations.

"The two arrows facing either side indicates an open door. Since re-launching we wanted to project an open door to a new world to our customers and employees," he explained.

Headvertising was used to create awareness to the logo and the Royal - Thomian big match was the launching pad.

Employees of PABC Bank were seen at the match with stickers on their forehead with the logo of the bank in Royal and Thomian colours. School cricket fans were given stickers as well which added colour to the big match atmosphere.

Emerson says Headvertising is a "cool approach" and is parent friendly.

He added that the public response as well as that of the employees was tremendous.

The bank has seen a turnaround during the last few months following a lean period and expects considerable profits this year.

"Its not easy to turnaround a bank and doing it in a Third World country is even more difficult but we managed to do just that" Emerson said.

PABC Bank hopes to introduce new innovative products in the future to go with the change and success of its operations.

"We are also planning to reposition our credit card and Gedarata Mudal scheme" Emerson noted.

Gedarata Mudal is the best way to remit cash from over 60 countries around the world to kith and kin in Sri Lanka.

Under this scheme the funds received from other countries will be delivered to the door step without any additional cost.

Gedarata Mudal is a risk free, convenient and a speedy service designed to save money and is becoming more popular with funds delivered within 24 hours if it is in the Colombo region or the following day in all other areas.

The bank also offers SMS banking facilities, which Emerson termed as "Thumb Banking."

With SMS banking customers can transfer funds, pay credit card bills, receive bank balance details and much more, all in seconds, 24 hours a day even on Saturdays and Sundays.

PABC Bank also operates a children's account called Lahiru Plus and offers attractive gifts to account holders who have a minimum balance of Rs 500.

Emerson says PABC is working on its internet module which will be made available to its customers in the near future.

"Although we may be late in the market with our internet facilities we are able to add features that other banks lack. This is good for the industry and benefits the customer," he added.