hedge to protect refinery margins
Petroleum Corporation (CPC) is having talks
with Standard Chartered Bank (SCB) to
protect the margins made by its refinery at
Sapugaskande, CPC sources who did not want
to be named said.
the refinery is making a gross profit of
around $ 4.50 on a barrel by refining crude
oil to finished products like petrol, diesel
and kerosene and selling them to CPC's
marketing arm through which the finished
products are retailed to the end-user via
are however talking of keeping a 'cracker
margin' (the margin kept after converting
crude to refined products and selling them)
of around $ five a barrel," the sources
said. "If margins fall below $ five,
the Bank will compensate us, but if the
margins go beyond $ five, then the Bank will
keep the excess profits," they said.
sources expected this new hedging operation
to be on stream in a couple of weeks time.
has the capacity to refine around 50,000
barrels of crude oil a day. That translates
to refining 6,000 metric tons (mts) of crude
and converting them to 550 mts of petrol,
1,500 mts of diesel and 700 mts of kerosene
respectively, the sources said.
the refinery had been modernized with a new
hydro-cracker plant, as had been the plan
soon after the J.R.Jayewardene government
came into power in 1977, Sapugaskande would
have by now doubled its cracker margin to
around $ 10 a barrel," the sources
building of a hydro-cracker plant was
aborted then due to allegations of
corruption and politicization of that
present government however has plans to
modernize and expand Sapugaskande's refinery
at present has the capacity to refine only
half of the country's requirement of refined
building a refinery is a costly affair.
Sapugaskande, when it was built in 1969 cost
only Rs. 175 million. But nowadays, building
a refinery would cost around $ two billion,
the sources said.
further said that the refinery made a loss
in December when petrol prices were the same
as crude oil prices, selling at around $
58-57 a barrel for both products.
It was cheaper for the CPC to buy petrol
direct, rather than buy the crude and have
it refined at Sapugaskande then," the
is to protect the refinery of such
situations that we are contemplating in
hedging the cracker margins of the refinery,
they said. In the last quarter of last year,
as there was no hedging mechanism in place
to protect the refinery's cracker margins,
it made a loss of $ 30 million, the sources
since January the refinery has been running
at a profit, making a profit of $ three
million last month .
March the CPC hedged against the import of
diesel prices, a refined product, by
employing SCB as its hedge bank and made a
saving of around $ 1.5 million. This saving
was made on two hedges, the sources said.
hedging against the import of refined
petroleum products at this juncture may not
be feasible because it appears that the
prices of such products appear to be
peaking, they said.
in such instances is only good if prices are
rising, and to protect the CPC against such
increases, the sources said.
further said that as per Singapore prices,
the price of a barrel of petrol as of Friday
was $ 86.70, diesel $ 85.50, kerosene $
85.40 and crude oil: 70-72.
in the last couple of days there have been a
steep rise in prices, with petrol going up
from $ 83 to $ 86.70 a barrel, diesel from $
80 to $ 85.50 and kerosene from $ 82.75 to $
85.40 a barrel.
accounting purposes, the CPC's refinery arm
and its marketing arm function as separate
units. The CPC which until last month was
subsidizing petrol, diesel and kerosene,
recovered these losses by jacking up the
retail price of a litre of petrol by Rs. 5
to Rs. 111, diesel by Rs. 4 to Rs. 71 and
kerosene by Rs. 16 to Rs. 67. It made a Rs.
1.5 billion loss last year, the loss of
which was blamed on the government not
refunding the subsidy of Rs. 2.1 billion
incurred by the CPC in selling kerosene at
subsidized prices then.
Broadband Networks, a fully owned subsidiary
of Dialog Telekom Ltd, (DTL), on Thursday
launched their fixed wireless
operations based on CDMA technology, said a
official launch was held inKurunegala under
the patronage of Kurunegala Mayor Nimal
Chandrasiri Silva. It was also
simultaneously launched in Kandy,Puttalam,
Kegalle, Kalutara and Ratnapura.
technology also offers subscribers a host of
other benefits such as call holding/waiting,
SMS, CLI, call transfer, call forward, voice
mail, fax, three way calling and call
Lankan Jack-Fruit Salad at FoodEx Japan 2007
dried Jack was supplied by Team Four (Pvt)
Ltd which was a FoodEx Japan 2007
participant from Sri Lanka.(JETRO News)
re-invests in W&G
ironical that the Browns Group that recently
sold its 70% stake in Walker and Greig Ltd.,
(W&G) to Lionheart Investments
Ltd., at Rs. 5.75 a share, had allegedly
bought back some of W&G shares at Rs. 7
would make Lionheart, when they make their
mandatory offer to buy the remaining W&G
shares, as per stock market rules, to make
their offer at Rs. 7 a share to the remining
shareholders, as the offer document in
regard to Lionheart's mandatory offer had
allegedly not been made at the time Browns
made their re-purchase, the sources said.
further said that Lionheart is run by an
American called Scott Neuson who has
substantial experience in day trading in
global markets such as Nasdaq. He apparently
runs an office at the Lanka Orix Securities
Ltd (LOSL) building in Colombo. LOSL
Managing Director Thushan Wickramasinghe is
also said to be having a stake in Lionheart.
of capex target met
expenditure and lending minus repayments in
the first four months of the year increased
by 8.9% to Rs. 245.3 billion when compared
with the corresponding period last year.
comprised a current expenditure figure of Rs.
186.8 billion, a 7.7% increase over the
previous year and a "capital and
lending minus repayments" figure of Rs.
58.6 billion, a 13.3% increase over the
corresponding period last year.
budgeted capital and lending minus
repayments figure for the full year is Rs.
301.8 billion, of which the government has
been able to cover only 19.4% of the target,
despite the fact that only two thirds of the
year is still remaining,
the budgeted "expenditure and lending
minus repayments" figure for the year
is Rs. 898 billion, of which the government
has met 27.3% of this target. The budgeted
current expenditure figure is Rs. 596.2
billion, of which 31.3% of the target has
been met so far.
toss" to EPF
economist Raja Senanayake said that since
there are reports that Fund (EPF) moneys
have been invested in a risky venture like
Mihin Air, the bank (Central Bank) should
categorically deny it.
Singapore the law places restrictions on the
Central Provident Fund there from
inappropriate investments even if Parliament
passes a law.
22e Moneys of the Central Provident Fund:
"The President, acting in his
discretion, may withhold his assent to any
Bill passed by Parliament which provides,
directly or indirectly, for varying,
changing or increasing the powers of the
Central Provident Fund Board to invest the
moneys belonging to the Central Provident
joins Ceylinco Life
goes and so do people, according to spin
wizard Muttiah Muralitharan speaking to The
Sunday Leader at a press conference where it
was announced that he would be joining
Ceylinco Life and lending his image as a
sportsman and family man to create awareness
about the value of life insurance.
man described as the greatest
cricketer in Sri Lanka's history,
leaves Janashakthi Insurance and joins his
Sri Lanka team colleague fast bowler
Chaminda Vaas to support Ceylinco's 'Life's
'Life, Love, Protection' campaign, an
initiative that seeks to increase the
penetration of life insurance, currently
hovering below 10%.
asked about why he made the move from
Janashakthi to Ceylinco, Muralitharan said
that his contract had expired and Ceylinco
Life had approached him. He said, "It's
time to move on, friendships are different
and they will last, but this is purely professional."
the subject of how he plans to promote life
insurance to the masses, Muralitharan said
it would be commercial, mostly through TV
and press ads.
Life's Chief Executive Director R.
Renganathan said that Muralitharan will be
one of the elements of the company's
multi-faceted communications campaign,
helping to generate greater consciousness
among Sri Lankans that life insurance is an
essential safety net against an uncertain
future, through print and electronic media
campaigns, interactive programmes,
point-of-sale material and signage.
welcome Murali to the team," he told
reporters in Colombo. "His universal
appeal and strong commitment to family
values will bring even greater resonance to
our efforts to take the message of life
insurance to the masses."
Life's campaign is designed to build better
understanding at a generic level, of the
need for and value of life insurance, rather
than to promote specific insurance products, Renganathan said, explaining that studies by Ceylinco Life
had indicated that one of the causes for the
relatively low penetration of life insurance
was a lack of understanding of the rationale
for these products.
said that in most developed markets,
associations have been set up to promote
life insurance. However, since no such
organisation exists in Sri Lanka, Ceylinco
Life has taken the initiative to educate the
public on the value of life insurance as
part of its responsibility as the market
campaigns launched late last year and
supplemented earlier this year by
endorsements by fast bowler Chaminda Vaas
had contributed to a notable growth in life
a Ceylinco Life policyholder himself said:
"As a father and
husband, I am fully conscious of the
need to plan for the future and for the
protection of my family. I believe that life
insurance is essential for people in all
walks of life, and I'm proud to be
associated with Ceylinco Life's efforts to
take this message to all parts of Sri Lanka.
Life insurance is not for those who die, it
is for the people who live," he
Life's vision is to protect every Sri Lankan
family with insurance and its approach to
business is well articulated in the slogan
Big or Small, Ceylinco protects them
all," he said. "I look forward to
supporting this effort by endorsing life
insurance as an embodiment of
life, love and protection."
absorbs WNS operations
on the heels of its first successful
transfer in Bangalore, India, Aviva Global
Services (AGS) has announced the successful
transfer of over 300 accounting and finance
professionals from WNS Customer Solutions in
to AGS in Colombo on July 2, said a
are proud to become a part of the Aviva
family. Over the last three years we have
been focused on successfully delivering to
the stringent performance metrics and
service level agreements. Aviva has been
supportive and happy with the performance
delivered by the Colombo centre. We are
geared up to ensure that we pursue the
agenda of delivering excellence in
everything we do," said AGS Lanka
(Pvt.) Ltd., Country Director Kalum
the establishment of a financial and
accounting centre of excellence owned and
managed by a world class company, the
benefits to the country include; the
provision of professional employment, the
investing in and the continuous development
of skills and training for employment, as
well as foreign revenue," he further
is the business process and IT outsourcing
(BPO and ITO) arm of Aviva Plc.
- UK's largest insurance company and the
world's 5th largest - had previously
announced its plans to grow to 7,800 BPO
roles in the subcontinent by end 2008. Off
shoring has always been a key component of
Aviva's global growth strategy providing it
with flexibility, productivity, process and
cost efficiency while maintaining the high
quality of customer servicing expected.
has built offshore BPO roles in partnership
with three vendor partners - EXL, WNS and
24/7 Customer under the BOT model. Aviva is
demonstrating its commitment to India and
Sri Lanka by transferring over 4,500 of its
third party BPO vendor staff to its own
offshore division, AGS over the course of
this year (2007). This successful transfer
marks a momentous achievement as the sheer
size and scale of such a transfer, is unique
to the IT / ITeS industry across India and
Riley, Chair AGS, based in UK quoted,
"This is a moment of pride for both
Aviva plc and AGS, as we welcome our
colleagues in Sri Lanka in to the Aviva
family. As planned, the transition has been
seamless and transparent to the UK business
units, our employees and also to end
CEO Rajnish Virmani said: "This
successfully executed transfer will serve as
a great learning and indeed is a matter of
pride for us. The build and transfer of
operation in Sri Lanka marks a critical step
in the execution of a well laid-out off
shoring strategy for Aviva. A critical
success factor in this journey has been the
close relationship we enjoy with WNS and
they will continue to run our legal services
division here in Colombo. The. BOT (Build,
Operate and Transfer) contract with them has
enabled Aviva to ramp up rapidly and gain
`speed to market'."
of the transfer, WNS Global Services
Enterprise Services CEO Eric Selvadurai
said, "WNS is proud of our association
with AGS, and are
pleased that our BOT contract
delivered the promised efficiencies. The Sri
Lanka centre, housing a `Finance and
Accounting Centre of Excellence' is a world
class operation, and we were committed to
managing a smooth transition."
Aviva operations in Colombo will house the
'Finance & Accounting Centre of
Excellence' and will boast of a team of
about 300 finance and accounting
professionals most of whom are either in the
process of acquiring their CIMA / ACCA
certification or are already CIMA / ACCA
only to UK, Colombo has the distinction of
producing the highest number of CIMA / ACCA
certified finance and accounting
professionals in the world, and was
therefore the natural choice of destination
for the Finance and Accounting Centre of
Excellence. The Lanka operations cater to
Aviva's business units as a captive
knowledge process outsourcing unit providing
high-end finance and accounting services to
Norwich Union Life, Norwich Union Insurance
and Aviva Corporate Finance.
Colombo presented in London
Lanka's most prestigious water front
residencies-Celestial, was recently
presented in London at the Hyatt Regency
London-The Churchill, said a statement.
presentation which was well attended was
followed by cocktails. The 45-storey
building once completed will have 176 luxury
apartment units and the Hyatt Regency
All apartments at Celestial feature
luxuries of amenities with every apartment
offering a gorgeous view of the Indian Ocean
and the Colombo city.
Hyatt Regency Colombo will feature 246
luxury guest rooms and suites which will
offer a spectacular view of the ocean.
The hotel will offer a range of
facilities and services with Hyatt's full
concierge service available for all
apartments, multi cuisine restaurants and
martini bar and "the best of"
Homes International is a member of Ceylinco
Consolidated, one of Sri Lanka's largest and
most respected business conglomerates with
diverse business interests and is headed by
Ceylinco Consolidated Chairman Dr. Lalith
company has pioneered numerous unique
housing concepts in Sri Lanka, benchmarking
quality and innovation being the hallmark of
its success and is today the market leader
and trendsetter in the luxury property
market in the country.
the gathering, Sri Lankan High Commissioner
in London Mrs. Kshenuka Senewiratne who was
the chief guest said, "It is a source
of great joy for me to be part of this event
that is introducing to you Ceylinco
Celestial Residencies which will soon adorn
Sri Lanka's commercial capital Colombo as
the city's tallest building with 45 floors.
it Ceylinco will regain owning Sri Lanka's
tallest building, a primacy this company
held even during my childhood days. I recall
that it was the Ceylinco building that first
introduced the escalator to Colombo, and
remember my childhood fascination with this
moving stairway. In fact it led Singapore's
Prime Minister Lee Kuan Yew to recall in his
memoirs, that at that time even Singapore
could not boast of having an escalator.
Consolidated has therefore in my view been
the pioneers of modernization and innovation
in Sri Lanka."
Chairperson Ceylinco Homes Group Mrs.
Padmini Karunanayake, the driving force,
disclosed that all one bedroom apartments at
Celestial have been sold out.
Consolidated Director and Executive Director
Ceylinco Leisure Properties Ltd (the owning
company of Hyatt Regency in Colombo) Dr.
Punarjeeva Karunanayake made a presentation
on appreciation of property values in
Colombo and financing available for purchase
of apartments at Celestial.
General Manager Miss Denise Abeyeratne who
was the compere for the evening also made an
informative and detail presentation on the
project highlighting the options available
for prospective investors.
an impeccable record of delivering super
quality property with strong brand
recognition, Ceylinco Homes is the only
property developer in Sri Lanka to be
recently awarded the prestigious "Superbrand"
for Formula Plus holders
Lanka Insurance Corporation Ltd (SLIC) is
ahead of every other insurance company in
the market, be it in life, general
(including motor insurance), according to
SLIC CEO Nalaka Godahewa.
recently at a press conference that was held
to announce SLIC's Formula Plus Motor
Insurance, which has an array of fabulous
on offer-one of a kind in the motor
insurance industry, Godahewa said that the
company's innovative approach has paid off
over the years in terms of growth.
said that SLIC has broken most insurance
who buy or renew a Formula Plus
comprehensive Motor Insurance policy from
now upto December 31 will be eligible to
enter the draw every two months by way of
coupons given based on the premium amount of
the policy the customer obtains.
policyholders will receive a single coupon
for every Rs. 10,000 block of the value of
"exciting" line-up of prizes
awaits the lucky winners every two months,
with a Grand Prize of Rs. one million in
cash, five consolation prizes of car DVD/CD
equipment, ten home theatre
systems or car CD equipment, 50
camera phones and 100 Formula Plus watches
are to be won at each draw, which is held
every two months.
will be three draws held in the second half
of 2007. The coupons received from now till
August will be drawn in September, coupons
received from September to October will be
drawn in November and
coupons received from November to
December will be drawn in January 2008.
added, "Today with the busy life
styles, what is most important to the
customer is convenience and at Sri Lanka
Insurance, everything we do is aimed at
providing a superior customer service.
state of the art Formula World Collision
Repair Centre at Seeduwa is one of the best
examples to show how we differentiate our
superior services from our competitors. Our
impressive growth figures in the recent past
are ample evidence to prove that we have
superseded all competition in this aspect.
The confidence that customers placed with us
endorse the fact that we are in the right
direction, providing customer convenience.
We constantly innovate our products and
services to align our offers with
Formula Plus Motor Insurance is the most
service-oriented motor insurance policy in
Sri Lanka. A highly personalized service
offered to Formula Plus policyholders
ensures customer convenience at every
customer contact point.
Plus policyholders enjoy unique benefits
such as settlement of claim within 24 hours,
24 hour call centre support for accurate
assessment of damage to your vehicle
anywhere islandwide and 24 hour free
roadside assistance service also islandwide.
Plus has also introduced many firsts in the
motor insurance among them being the launch
of the country's first state-of-the-art
Collision Repair Centre- Formula World in
Plus policyholders are entitled to make use
of the expertise of the Formula World
Collision Repair Centre, the only state- of-
the -art repair centre of its kind in South
East Asia and for that matter the world,
according to COO Suren Galagoda.
modern methods adopted at this repair centre
will ensure that your vehicle is restored to
its original condition and all repairs are
as per manufacturer's specifications. The
company's second Collision Repair Centre is
currently being built in Kandy and will be
operational by the year end.
Plus is the only motor insurance policy that
gives customers the option of receiving cash
for the claim settlement or the facility of
getting the vehicle repaired at Formula
pays highest rate
"Millennium 30" one month deposit
was another first from Seylan Bank
when it was launched
in October 1998, said a statement.
was the first one month deposit ever to be
introduced by a bank in Sri Lanka.
far it has proved popular among Seylan Bank
customers. Especially in a rising interest
rate scenario, the deposit has given
prospective customers the opportunity to
earn a higher interest in subsequent months.
effectively means that you would be able to
take a fresh investment option every month.
also gives customers the opportunity of
earning interest on a monthly basis @ 16%
p.a. at present, which is the highest rate
for a one month deposit as at date.
addition, for maximum flexibility, investors
on a short stint abroad may give one
standing instruction, to roll over the
deposit until further notice along with
accumulated interest and switch funds to an
alternate deposit in Seylan Bank's ample
portfolio of products on their return.
would also add upto a compounded rate of
interest automatically, at the end of the
period for which automatic renewals take
monthly commitments could also be met by
matching the interest earned from Millennium
such as housing loan instalmetns, lease
rentals, house rentals, school fees and
employees' salaries could be easily matched
in a simple and practical way.
innovation from Seylan Bank, the most
progressive in the market which has captured
the hearts and minds of its depositors, the
statement in conclusion said.
introduces cure for pimples
Herbals (Pvt.) Ltd. a Harcourts Group
subsidiary company has found a cure for
pimples, said a statement.
product has also been rated as a number one
seller in Sri Lanka by a research conducted
by a reputed local research institute. The
product not only cures pimples but also
removes black heads and scars.
name of the product, Pimple Cure Herbal
Cream is approved by the Ayurvedic
Department by a team of medical specialists.
It is imported from a GMP/ISO 9001 2000
certified company in India.
product has been scientifically tested and
proven for the treatment of pimples, bleak
heads, and white heads. It is a superior
and is available at all pharmacies,
supermarkets and cosmetic stores islandwide
at a reasonable price.
Director Mohamed Ruzzan a chartered marketer
says that in response to a growing number of
people seeking "historical"
medical treatment that originated in ancient
India, "Pimple Cure" is expected
to create a new concept in the market.
are many high priced cosmetic products
available in the market today which simply
claims that it is herbal without however
registering with the Ayurvedic department.
should be careful in buying such herbal
products which may not give the desired
effect for the price paid.
Lanka Herbals is marketing a range of
natural products which has gained wide
popularity among the medical profession
and health conscious customers.
launches with a strategic plan are
expected to contribute significantly to the
company's turnover. A big image, high
mission statement and objectives will hardly
bear any fruit or become realities,
"unless we provide the customers a
quality product at an affordable price.
mission is to provide natural medicine at an
affordable price to the patient."
Sicille P.C. Kotelawala has been appointed
as Ceylinco Insurance Ltd's deputy
chairperson, said a statement.
succeeds S. Ratnadas who retires from the
position after completing 51 years. However,
Ratnadas will continue to remain on the
Insurance is the successor to Ceylinco
Insurance Co., Ltd. Established in 1939, it
was the first Ceylonese insurance company
whose chairman was the late senator Justin
Kotelawala brings with her the charm, grace
and a wealth of experience, having served
the company in the capacity of a director
for a considerable period of time. Dr.
Lalith Kotelawala is the chairman, while
Rajkumar Renganathan serves as chief
executive director-Life and Ajith
Gunawardena as chief executive
director-General of Ceylinco Insurance.
Insurance is a flagship company of a leading
business conglomerate in Sri Lanka, Ceylinco
notches several firsts
marked HSBC's completion of 115 years
in Sri Lanka, said a statement.
this day in 1892, HSBC opened its doors in
Sri Lanka, just 27 years after its first
offices were established in Hong Kong and
the HSBC Group has 10,000 officers in 82
countries and territories worldwide;
offering personal financial services,
commercial banking, corporate, investment
banking and markets, and private banking
among other activities.
is now the largest foreign bank and the
fifth largest private bank in Sri Lanka;
acknowledged as the best trade services
bank, one of the leading personal financial
service providers in the country and the
undisputed leader in the local credit card
known as the Hongkong Bank, "HSBC"
was established as a uniform, international
brand name in 1999. What started out as a
comparatively small financial services
operation has today branched out to 14
branches with a staff of more than 1,600
employees in Sri Lanka.
Banking Services: An impressive record.
possession of local and foreign currency
lending capabilities, HSBC's Commercial and
Corporate and Institutional banking have a
complete range of finance structures as well
as a strong appetite for providing working
capital and/or trade financing.
bank has also supplied financial support to
a large number of multinationals and
domestic borrowers, and won numerous awards
in Asia for being the best bank in Trade
Services and Payments and Cash Management.
has also received accolades for being
responsive to the growing Small and Medium
Enterprise market, having a special centre
just to cater to the varied needs of this
Banking Services: Fulfiling the needs of
it has been popular as a corporate bank,
HSBC is now making a mark in personal
financial services too. Understanding the
changing needs of customers according to
their age and level of income, the bank
created Premier, PowerVantage and E-saver to
cater to different market segments.
bank has also introduced Personal Instalment
Loan (PIL), Personal Instalment Loan Plus (PIL+)
and Home Loans. With these loan schemes
customers are able to make the most of
timely bargains, take care of unexpected
expenses or build their homes.
leader in credit cards.
is also the proven leader in the credit
cards market in Sri Lanka. With over 250,000
cards and counting. HSBC has demonstrated
that credit cards are no longer a luxury but
a commodity suited to the pace of customer's
lifestyles. Accordingly, the bank has
provided a number of excellent privileges to
HSBC credit cardholders: Lifting the 2%
surcharge on fuel, the Rewards programme,
Home & Away, Air Miles, Automatic travel
insurance from Hayleys AIG Insurance and the
HSBC 0% Instalment Scheme are some of the
privileges on offer for HSBC credit
bank also offers credit cards to those who
do not even have an account with HSBC, as
long as they meet the age and income
criteria. These credit cards are accepted
both in Sri Lanka and at over 17 million
establishments the world over, ensuring HSBC
credit cardholders a
"welcome" anywhere in the
Banking in Sri Lanka.
has a worldwide reputation for its
pioneering work in the field of technology.
The introduction of the first Day and Night
Automated Banking Centre is a first for Sri
Lanka. These centres include Personal
Internet Banking and Phonebanking Services
and a customer services desk in addition to
the requisite ATM machine.
HSBC has 15 such centres - including at the
Sentra Super Market, Maharagama; Cargills
BigCity, Moratuwa and at the MAS Intimates
also launched its new and improved
phonebanking service where customers can use
the new phonebanking service to carry out a
range of banking transactions using the
system, in addition to checking recent
transactions, carrying out transfers and
paying their bills.
HSBC has also taken the initiative to
increase the bank's local outreach by
entering into a partnership with the Posts
Ministry, allowing customers to make cash
and cheque deposits at 39 post offices
islandwide. This launch is the first of its
kind by a private bank in Sri Lanka.
beyond Banking: HSBC and Corporate
its success with the marginalised sections
in society has been HSBC's practice
throughout the years. The HSBC Group
advocates two main strategies of CR -
education and the environment. Under these,
HSBC Sri Lanka has carried out many
long-term projects. Environmental awareness
campaigns were launched to maintain a
cleaner environment and preserve the natural
beauty of the Sinharaja forest and the
Horton Plains, while HSBC staff members were
sent on the Homestay programme, where they
had the opportunity to participate in
environment based activities with villagers
living in the buffer zones surrounding the
has also revamped five history galleries in
the Colombo National Museum to foster and
promote an awareness of the country's rich
culture and heritage. These galleries now
contain detailed information panels, a state
of the art lighting system and attractive
displays. HSBC also empowers the
marginalised sections of society, for
example, partnering SAPSRI to support the
Beeralu lace makers in Mirissa and assisting
the would be women entrepreneurs living in
Colombo's slums. These examples are just few
of the various other corporate
responsibility activities HSBC takes pride
to be involved in.
only rep. at Dusseldorf
has been selected as the only pvc
manufacturer from Sri Lanka to participate
in K Messe Dusseldorf fair, the most
prestigious international plastics and
rubber trade fair this year, said a
commands a 40% market share in the local PVC
products market and has the widest range of
such products manufactured under one roof
along with the largest distributor network.
company is now in the process of introducing
some new products to the market, which will
fulfil the advanced requirements of the 21
at the fair to be held this October is
limited. Anton was selected following
recommendations by the Export Development
Board and the Foreign Ministry's Trade
fair is expected to draw some 2,900
exhibitors and over 200,000 trade visitors.
The event enables exhibiting companies to
forge contacts and seal many deals as it has
a reputation for being the most important
meeting place not only for the industry but
also for potential buyers from key user
specialists in the fields of construction,
automotive engineering, packaging,
electrical engineering, electronics,
communications, medical technology, aviation
and aerospace have an opportunity to catch
up on the latest plastic and rubber
applications and gauge future trends. .
wide range of Anton products, including PVC
pipes, door panels, ceiling, cladding,
moulding and rainwater gutters will be
displayed at the exhibition.
Anthony's Industries Business Development
Manager Priyantha Wanigaratne said they
considered it a privilege to be selected to
this event which brings together leading
plastics and rubber manufacturers from
around the world. He noted that this is an
ideal opportunity to showcase the export
Lankan made PVC products.
brand has earned a reputation for its
quality, having achieved both SLS and ISO
9001-2001 status, and has been certified as
being compliant with who standards. Last
year, it was conferred 'Superbrand' status.
is also reputed for its innovativeness.
Since 1960, it has been in the forefront of
introducing new products that cater to the
requirements and enhance the living
standards of the people. It has set high
standards in the industry for others to
follow, and has served the nation as an
exemplary corporate citizen.
plastics industry holds great potential for
the future due to its exceptionally varied
technical properties and its value for
money. "Plastic is the bedrock of our
entire infrastructure as well as of all key
K-Fair sources said.
free from Tigo
the new kid on the block (prepay mobile in
Sri Lanka), has introduced every customer's
dream package, incoming free with no daily
rentals, said a statement.
launch their new package, the Tigo 'Blue
created a furor when they took to the
streets to introduce Tigo to the local
consumer in January this year) are currently
parading the streets of Colombo once again
outlining the benefits of Tigo's latest
value added offer to the consumer.
package benefits everybody as it offers you
all incoming calls free, irrespective of the
duration of the call or time of day and is
an all round winner," said Tigo's
Commercial Director Aniljit Singh. "Any
customer who spends more than Rs 600 a month
on mobile telephony, be it in pre or post
pay can benefit from this package as there
is no daily fee or monthly rental."
said that Tigo believed in making mobile
telephony affordable to all segments of the
market. "The response displayed by
customers to this package has been
tremendous as not only does it offer
Incoming free, but has affordable outgoing
call rates which are only Rs. 5 per minute
anytime during the day".
addition Tigo had added further value by way
of allowing subscribers to call from their
Tigo to any other Tigo for a mere Rs. 3 per
minute anytime of the day for five selected
numbers which the customer has the liberty
of changing monthly.
exciting new package also brings you more
facilities by way of 30 SMS/5 MMS, as well
as upto 1000 kb of GPRS browsing absolutely
free every month. "All you have to do
is have a monthly usage of Rs. 600."
This product is now available and can be
purchased for Rs. 800.
consider this package to be the 'best tariff
plan' currently available in the market with
all incoming free," said Singh. He also
said that as a result of Tigo's islandwide
coverage, customers would be able to connect
to each other from all over the island.
"Tigo plans to grow in the prepay
category whilst being the brand of the
people. We want users' to express themselves
the way they want, where ever they want and
any time they wish to." Tigo's latest
offer is available countrywide at all main
dealers as well as A & B class
kg. fetches $ 0.30 more
tea production in the first five months of
the year amounted to 120.1 million kilos, a
13% decline when compared with the
corresponding period last year, the Tea
January-May tea exports of 117.8 million
kilos reflect a deficit of 10.1 million kg.
compared to 127.9 million kgs. of last year
for the same period, Forbes & Walker
the FOB unit value has shown an increase of
Rs. 54.34 per kg., or 19.7% gain.
average unit FOB value for 2007 of Rs.
330.12 per kg., is equivalent to $ 2.96,
whilst corresponding unit FOB value of Rs.
275.78 per kg., is equivalent to $ 2.66 per
in bulk and tea in packets have shown a
decline in volume compared to the
corresponding figure. However, these two
categories have gained considerably in terms
tea imported for re-export for the current
year at 5.8 million kg. show a 1.1 million
kg. or 24% gain compared to 4.6 million kg.
imported in the same period last year.
continues to be the largest importer of Sri
Lanka teas, although total imports by CIS
show a marginal decline. UAE has retained
the second position followed by Iran and
has increased imports by four million kgs.
for the period as against last year, whilst
Syria and Jordan have imported lesser
volumes compared to the corresponding
to Indian ICT summit
Information and Communication Technology
Agency of Sri Lanka (ICTA) will be leading a
delegation of ICT companies and other
relevant stakeholders to the NASSCOM IT-BPO
Strategy Summit 2007 that will be held in
Bangalore from August 6-7, said a statement.
summit, which is one of India's premier
conferences of the IT-BPO industry promises
to provide a bird's eye view of the IT/BPO
sector and its transformation over the past
few years, ICTA. Programme Manager Fayaz
Indian BPO industry has been growing at
about 75% year on year and notching up
revenues of more than USD 9.5 billion. They
employ more than 540,000 in this industry
alone, apart from the IT services,
engineering and R&D work that is being
Indian "ITES"-BPO industry has
also matured in terms of the types of
services it provides to its global clients.
From a situation where ITES-BPO
organizations were predominantly into basic
data entry tasks, today, the Indian industry
has graduated to a high proportion of
voice-based services and a range of
back-office processing activities including
Business Transformation Outsourcing (BTO)
services". The summit will provide
fresh insights on the developments and
trends defining the market and their
implications for both solution providers and
customers. The latest data on the industry
analyzed by industry gurus and consultants,
best practices and case studies shared by
service providers and business and delivery
models spotlighted by industry leaders will
be some of the areas covered.
summit is being promoted to the local ICT
industry as an event that will provide a
much needed learning experience about the
market leader in this field: India, best
practices and expected future trends. The
ICTA is also planning on organizing some
site visits based on the participant's
interest areas to coincide with this event
which would potentially include visits to
companies, training institutions and IT
parks, ICTA COO Reshan Dewapura said.
will be an opportunity for the emerging Sri
Lankan ICT industry and also key academics
and decision makers to expose themselves to
this booming industry in India and to
understand the type of effort that needs to
be undertaken to align the local systems to
reap the benefits of the globally booming
officers to be questioned on FFCs
Bank of Sri Lanka (CBSL) officers who were
responsible for the regulation and
supervision of banking and non-banking
financial sectors during the period 1991 to
2005 will be called before the Presidential
Commission of Inquiry to investigate into
matters relating to failed finance companies
(FFC), said a statement.
Commission which is presided over by retired
supreme court judge Priyantha Perera opened
the sessions on Monday (July 2) where CBSL's
present Director, Department of Supervision
of Non-Bank Financial Institutions Mrs L K
Gunatillake was questioned by the Commission
in regard to CBSL's regulatory role vis--vis
other Commission members are Faisz Mustapha
(PC), Eastman Narangoda and
Ajith Surendra Ratnayake. Former CBSL
secretary Mrs Nandani Dissanayake has been
appointed as the Secretary of the
The Commission is empowered to
inquire into and report, inter alia, that
the following matters: To examine the
individual conduct for the deficiencies
associated in connection with the items
highlighted in the COPE Report of June 22,
2005 by relevant CBSL officials who have
been in charge of the regulation and
supervision of banking and non-banking
financial sectors during the period 1991 to
2005; To make recommendations on appropriate
steps to be taken against any official/s
responsible for such deficiencies; To
examine the possibility of recovering
amounts due on account of loans given to
FFCs by CBSL during 1991-2005 and make
recommendations on action to be taken
make recommendations for action to be taken
against directors of such FFCs for
mismanagement of companies and
funds, if any and to make specific
recommendations for remedial measures.
a fresh initiative to deepen the government
securities (GS) market and to make it more
convenient for retail investors to access
GS, the Central Bank
(CB) will establish new retail sales
outlets for GS at its regional offices in
Matara, Matale and Anuradhapura, Centre for
Central Banking Studies Rajagiriya and its
Customer Centre at the Ceylinco building,
Colombo, said a statement.
the same time, new sales outlets will also
be established at all regional centres of
LankaClear (Pvt) Ltd. This new initiative is
expected to enhance the access of retail
investors and the general public to the GS
market and thereby enhance the market's
new retail sales outlets will be managed by
NSB Fund Management Co. Ltd. and LankaClear.
has been observed that, at present, the GS
market is largely concentrated in the
Western Province (WP), in particular around
Colombo and suburbs.
In this context, CB has recognized
that there is a vast potential for treasury
bills and treasury bonds market outside the
WP as well. Accordingly, these new sales
outlets are expected to popularize GS among
retail investors who do not have much
experience in investment in GS.
would also provide an opportunity for them
to get an "attractive"
return on their investments.
would be able to buy treasury bills or
treasury bonds of any maturity and/or any
value at these outlets. Their investments
will be recorded in the usual manner, at
CB's Central Depository System.
Investments Ltd., a global investment
company, has entered Sri Lanka's securities
market after the purchase of 75% of the
locally listed company, Walker and Greig
Ltd., said a statement.
transaction also signifies the entrance of a
new foreign Fund to the Colombo Stock
Exchange (CSE) which is an important
development for the future of capital
markets in Sri Lanka.
has been working with Lanka ORIX Securities
(Pvt) Ltd (LOSL) during the past few months.
Lionhart is a UK incorporated company that
is permitted and regulated by the Financial
Services Authority (FSA) to carry out
investments management and advisory services
to a range of investment companies
considered as hedge funds that engage in a
range of multi-strategy arbitrage techniques
is a global organization located across the
three major time zones and has a strong
track record in capital preservation.
The Company's investment strategies
are aimed at achieving returns of absolute
capital appreciation, regardless of market
conditions and benchmarks.
is hoped this global hedge fund will infuse
some activity to the local market which is
dull at present.
has been observed, of late, that certain
persons are expressing an opinion that the
Government is obtaining funds from the
Employees' Provident Fund (EPF) to meet
specific expenses, the Central Bank (CB) in
a press release said.
following press release is issued as the
a clarification to its members in
Government issues treasury bills and
treasury bonds to raise money to meet its
recurrent as well as capital expenditure.
The Fund invests in these government
securities (GS) on the basis of FMU's advice
which takes into account the funds available
for investment and interest rates.
addition, the Fund invests in the share
market and corporate debentures issued by
highly rated private companies.
Since investing in government
securities is risk free, it needs to be said
that from a long period of time, the Fund
has been investing more than 98% of its
total investments in GS.
Trade unions representing the members
of the Fund have indicated their
satisfaction of this investment process.
to EPF 's investment policy, the Fund was in
a position to pay 10.1% (declared rate) as
interest to its members in 2006.
Since, in terms of the provisions in
the relevant Act interest to be paid to its
members has to be based on the balances
lying to the credit of members as at
December 31, in fact, the actual rate paid
was 10.3% in 2006.
This was higher than the average
interest rate paid on fixed deposits in the
interest rates paid by the EPF to its
members during the last three years are as
EPF received Rs.17 billion as net annual
contributions and earned over Rs. 40 billion
as investment income during the year 2006
and its current investments stand at Rs. 500
is the responsibility and the policy of the
Fund to invest these funds in investments
with the lowest risk with maximum benefits
to its members.
Fund has consistently observed this policy
from its inception in 1958 up to now.
A Fund Management Unit (FMU)
comprising professionally competent persons
is available to provide professional advice
to the EPF on its investments.
It is the responsibility of this Unit
to study the investment opportunities that
exist in the economy on a daily basis and
advise on available investment
opportunities. The Fund categorically states that all its investment
decisions are made on the basis of FMU's
fall with liquidity injection
money market rates after peaking at 38% on
Tuesday, dropped down to around 14.5% at
Friday's trading (Friday's peak rate), market sources said. They
attributed this decline to the market once
again becoming liquid.
market had Rs. four billion of excess
liquidity on Thursday, the sources said.
Pressure on rates had been mounting after
the Central Bank (CB) rejected several
treasury bill and bond auctions recently,
because the market was demanding rates
higher than what the CB was willing to pay.
a result, around Rs. 21 billion worth of
bill and bond auctions were rejected by the
CB, including two weekly treasury bill
auctions, causing a liquidity crunch,
resulting a pressure on rates. However, the
CB has been rejecting treasury bond auctions
for the past several weeks.
the CB has made the market once again liquid
by releasing new money to the system and
also by getting captive funds to invest in
the rejected auctions, it is speculated. As
a result, causing a fall in rates, with the
market once again becoming liquid by easing
CB will be holding an auction for Rs 11.3
billion worth of maturing treasury bills on
Wednesday. This is in addition to Rs. 2.9
billion worth of bills having being already
reserved for subscription.
the rupee closed at Rs 111.50 to the dollar
on Friday, virtually holding on to its
Thursday's levels, which sources attributed
to market sluggishness.
Colombo bourse, dogged by a high interest
rate scenario, returned a modest turnover of
Rs. 154.1 million at Friday's trading.
some of the main trades done on Friday were:
Two hundred and eighty five thousand three
hundred shares of Ceylinco Insurance done at
Rs. 180 a share; 100,000 shares of JKH done
at Rs. 144 and 900,000 shares of SLT done at
Rs. 36. These three transactions accounted
for nearly two thirds of Friday's turnover,
by contributing a total of Rs. 98.2 million.
benchmark ASPI fell by 15.25 points over
Thursday's closing figure to finish the week
at 2,523.96; while the more sensitive MPI
fell by 29.36 points to close at 3,501.43.
Market capitalisation slumped by Rs. five
billion to Rs. 812.9 billion, its ninth
lowest figure for the year.
looks to China
Walltile Ltd. (LWL), the "premier"
wall tile manufacturing company in Sri Lanka
continues on its exceptional and increased
performances in recent years as was
evidenced from its released provisional
(before audit) financial statement for the
year 2006/07, said a statement.
Company showed a 16% increase in its
turnover when compared to the previous year
by achieving a sale of Rs.911 million
against Rs.786 million. The profit after tax
also registered a 16% growth at Rs.145
(subject to audit) against Rs.125
million in 2005/2006. Earnings per share
also increased from Rs.3.84 to Rs. 4.47.
LWL showed healthy growth in very difficult
local market situations, and competitive
export markets during the year under review,
the Group consisting of Lanka Walltile Meepe
(Pvt) Ltd., its fully owned subsidiary,
Lanka Tiles Ltd., the floor tile
manufacturer, Unidil Packaging Ltd., the
carton manufacturing company and Ceetee
Plantations Ltd., the Horana Plantations
management company, collectively, also
turnover registered Rs. 5.7 billion as
against Rs.4.9 billion the previous year, an
18% growth with profit after tax and after
minority interest registering Rs.335 million
as against Rs.282 million the previous year,
which is a 19% increase. All these figures
are subject to Audit. Group earnings per
share increased from Rs.8.68 to Rs.10.32.
has been aggressively promoting its wall
tiles with a constant revamping of new and
exciting designs displayed at its Nawala
Showrooms and throughout its islandwide
distributor network," said Company
Managing Director Lucky de Chickera.
are also aggressively pushing our export
sales in the USA, Canada, Hong Kong,
Singapore and Australia through
participation at international exhibitions
and personalized visits to distributors
and agents in those countries,"
personnel also visited the 21 st Chinese
International Ceramic Industry Exhibition in
Guangzhou province recently to source new
is the 3rd consecutive year we have visited
this exhibition and each year it keeps
getting better and better" de Chickera
said. "Competition amongst suppliers is
getting stronger and more acute, whilst the
technology is improving by leaps and
bounds." LWL is looking at sourcing
much of its requirements from China due to
its lower costs and improving quality.
aggressive marketing and sales strategy
coupled with a constant sourcing of
competitively priced material and machinery
have helped us to give all stake holders a
continuing and increased return on their
investment and input," de Chickera
into holiday resorts
Finance and Estate Guarantee Real Estate
Company Ltd., established its fourth branch
at Rangiri Dambulla on June 21, said a
this branch, facilities are due to be
provided in areas such as housing projects,
land sales and finance.
to this event, the foundation stone for the
housing scheme due to be implemented through
this branch was laid at the auspicious
moment. at Trincomalee road, Pelwehera,
seven houses are due to be built under this
housing scheme. Meanwhile, F & G
Property Sales Company Ltd., laid the
foundation stone for its own building at
building is to house its fourth branch.
foundation stone for the original housing
scheme was laid by F & G Deputy Chairman
Mervyn Jayasinghe, Kurunegala Mayor Nimal
Chandrasiri de Silva, Matale Pradeshiya
Sabha Chairman K.G. Somapala, Miss Sri Lanka
Ms. Aruni Rajapakshe, F & G Executive
Director Mohan Perera and Director / General
Manager of the F & G Real Estate Company
Ltd., Chalaka Perera.
Vihare Chief Incumbent Ven. Polonnaruwa
Seelananda Sanghanayake Thera and Mihintale
Rajamaha Chief Incumbent Ven.
Walawahangunuwewe Dharmmaratana Thera
performed the religious rites.
will be made to enable customers to buy
houses under an easy payment scheme. The
houses will be built on the model of holiday
on customer care
companies with excellent customer service
will survive in the future, a statement
quoting Deputy Managing Director (Motor)
Associated Motorways PLC (AMW) and Ceylon
Motor Trade Association President Ranjan de
occasion was the inauguration of an
attitudinal training programme for 57 AMW
employees and conducted by customer service
trainer Dhammika Kalapuge that was held at
Ceylon Continental Hotel recently.
Silva continuing said that AMW is taking all
possible steps to offer excellent customer
service. He also said that AMW is expanding
parking facilities and also setting up a
state of the art new body repair facility to
provide necessary infrastructure together
with planned regular staff training to
provide excellent customer service to remain
in profitable business.
Fernando, a Chartered Institute of
Management Accountants (CIMA) fellow and an
Associate member of the British Computer
Society was elected President of CIMA last
views on the present situation in the island
and as to how CIMA feels about the business
climate, Fernando said that going through
certain phases is a common thing for any
country in the world.
can be done even in conflict situations. The
war in Sri Lanka has been continuing for
over two decades now, but it doesn't mean
that businesses close down.
fact, we are planning to conduct a seminar
on how to do business in conflict situations
in the near future.
questioned how CIMA coped when it came to
competitition from other professional
bodies, Fernando said that the CIMA members'
'profiles' itself were more than enough to
attract students as 40% ofthe members were
CEOs of reputed companies.
addition, most of our students are employed
and these are key factors we use to drive in
more students towards following courses at
CIMA," Fernando added.
funds new pavilion
CR&FC new pavilion, sponsored by HSBC
and the Football Federation of Sri Lanka,
was opened recently, said a statement.
together with the Football Federation &
members of the CR&FC have sponsored this
building for a period of 10 and 20 years
the construction of the pavilion, rugby and
football fans can now enjoy a better view of
their favourite teams in action.
line profitability after seven year lapse
International Air Transport Association (IATA)
released traffic results for May that showed
5.5% growth in year-on-year
(YoY) international passenger demand.
in freight demand
rose to 5% (up sharply from 2.8% in
April). This was the largest increase since
September 2006, said a statement.
industry is expected to turn a profit of
US$5.1 billion in 2007-the first black
number since 2000 . impressive investments
in more fuel-efficient fleets that we saw
again at the Paris Air Show last week, and
you can see an industry that is on target
for a projected 25% increase in fuel
efficiency by 2020," said IATA Director
General Giovanni Bisignani.
load factors remained strong at 73.7%, up
0.1% YoY. "The pick-up in freight, led
by Asia, could be the first sign of
strengthening demand. Over the next months
we will be watching the impact of several
changing conditions, including intensifying
competition from other modes of transport
and structural changes such as manufacturers
producing lighter goods.
the passenger side, growth has stabilised
while strong competition is keeping load
factors high even as carriers aggressively
expand international routes to take
advantage of some liberalising
markets," said Bisignani.
East (ME) airlines saw the strongest
passenger demand growth in May with a 19.6%
increase that also boosted load factors to
70.8%. African airlines recorded demand
growth of 11.2 %, driven by improved
regional economic performance and growing
links with Asia and the ME.
American airlines showed the first demand
growth in a year with a 4.2% increase
following airline restructuring. Of the
three largest regions, Asia Pacific recorded
5.1% growth, while Europe recorded a slower
3.2% increase due to increased competition
from new entrants and no-frills carriers.
North American demand rose 4.2% while
recording the highest average load factor of
all regions at 80.4%.
freight demand growth was led by airlines in
the ME at 10.5%. However, Asia Pacific
airlines drove overall freight growth, with
demand doubling from 3.8% in April to 7.6%
in May, reflecting the strong levels of
economic and trade growth in the region.
freight demand growth remained sluggish in
North America (2.6%), Europe (1.6%) and
Latin America (1.1%) while African air
freight demand dropped sharply (-3.6%).
Federation of Chambers of Commerce and
Industry of Sri Lanka (FCCISL) recently
entered into a partnership agreement with
the Centre for the Promotion of Imports from
developing countries (CBI), Netherlands,
said a statement.
is an agency of the Netherlands Foreign
Affairs Ministry under the responsibility of
the Development Co-operation Minister.
Speaking at the MOU signing ceremony which
took place at the Hilton Hotel, Rotterdam,
CBI Managing Director Ton Lansik mentioned
that the partnership with FCCISL will aim at
realising synergies both at the conceptual
and operational levels and supporting
added that Sri Lankan exporters will benefit
with value added, demand driven and client
focused export development services offered
within the framework of the partnership
the signing of this partnership agreement,
FCCISL will become a partner of a global
network of business support organisations
which will benefit Sri Lanka in terms of
information on economic scenarios, trends,
services and products, best practices and
issues on export to the EU market. Within
the framework of this partnership,the
include : Institutional development
activities; Technical cooperation;
Information on market developments and
Activities on building up competencies on
export marketing and management.
Assurance conducts "Motor clinic"
Assurance under the flagship brand Union
Motor motor insurance policy conducted a
"motor clinic" at
Kiribathgoda, said a statement.
were checked to ensure basic safety
standards with interior cleaning attended to
by employees of registered garages and
service stations with Union Motor in the
Union Motor clinics are conducted
together with Union Motor partner garages