REACH, newest threat to garment exports

The garment industry is faced with a new obstacle in their exports to the lucrative EU market by a new EU regulation that bans the import of articles discharging harmful substances over and above a minimum weight to this market.

This regulation known as REACH (Registration, Evaluation and Authorisation of Chemicals) comes into force from December 2011.

Covering some 30,000 chemical substances classified as harmful, the REACH regulation first enforces a mandatory registration of exporters to the EU region effective from December 1, 2008, before imposing the ban on the import of articles discharging harmful substances three years later.

The weight restriction thresholds applicable under REACH are, if the harmful discharge is more than 0.1% the weight of the export article in question, or, cumulatively, where the weight of such harmful emissions from such articles are more than one metric ton for a given year. Such articles will not be permitted to enter the EU market.

 Those harmful releases may be in the form of a gas, liquid or solid.

"In Sri Lanka's context, exports such as garments, shoes and tyres to the EU are directly impacted by the REACH regulation," Srinivas Chakravarthy, lead auditor, TUV Rheinland (India) Pvt. Ltd., told The Sunday Leader. 

TUV Rheinland, headquartered in Germany is a REACH certifying body. 

A note said that REACH also covers rubber, plastic and wooden items.

It also includes items such as soap powder, glues, printing colours, medical devices, cars and refrigerators.

He however said that REACH does not cover the export of food items to the EU. Those are covered under food safety laws such as HACCP, he said.

Shanmuga Sundaram, Project Manager TUV Rheinland (India) said that if a exporter/buyer to the EU market, exporting such items that are governed by REACH is not REACH registered by December 1 of this year, he won't be allowed to sell his wares to the EU market. 

Garments such as jeans, denims and scented fabric all do emit substances, he said. And when garments are subjected to washing and dyeing, then too they may imbibe certain substances in such processes which may be subsequently released to the environment/body when worn, he said.

Varnika Soysa, General Manager, VSR Consultants Pvt. Ltd., said that the local garment industry is aware of the REACH regulation. VSR are the local agents for TUV Rheinland.

 "But it's a question of cost, the industry does not want to foot in the REACH certification bill," he said.  They would rather get the buyer to pay the bill.

 Soysa said that this is possible as far as the garment industry is concerned because Sri Lanka does not export branded garments. As such the REACH onus is on the buyer, like brands such as Victoria's Secret to which the REACH regulation would directly apply, as they are the direct sellers to the EU market, said Soysa.

He contended that due to the superiority of local garments and their compliance with various social ethic norms pertaining to worker rights (an important factor as far as buyers from the EU and USA were concerned), international buyers would find it difficult to break their business relationship with local exporters and seek buyers from elsewhere, on the premise that local manufacturers  were shying away from meeting the total REACH certification bill, by expecting the buyers also to share part of the cost.

Export of items such as garments, shoes and tyres which require a mandatory REACH registration from December this year, all enjoy duty free status to the EU market under the latter's GSP Plus scheme. This scheme which expires at the year end is up for renewal for a further three years beginning from 2009.

However, whether Sri Lanka would enjoy this concession for a further three years is in doubt because of the country's parlous human rights record, a key requirement for the continuation of the GSP + facility.

Under the present GSP + facility, which Sri Lanka has been enjoying since July 2005, the country's garment sector in particular has been enjoying increased growth and is set to overtake the USA, currently its biggest export market. Garments are also Sri Lanka's single biggest export commodity, providing direct employment to some 280,000.

Get India to remove rice floor price

Government should follow the South African and Bangladeshi examples by talking to India to get the floor price of US$ 1,000 per metric ton (pmt)-C&F on rice exports to Sri Lanka removed for this Avurudhu season, a Pettah trader said.

K. Palaniandy, President of the Old Moor Street Traders' Association told The Sunday Leader as a result of the actions of those governments, India lifted their floor prices on rice to those countries and were selling Nadu and Ponni rice at $ 390 and $ 470 pmt (C&F) Ex-Indian port respectively, with 150,000 mt taken by Bangladesh and 200,000 mt by South Africa..

Palaniandy said that a stock of 50,000 mt of rice was sufficient to tide over the Avurudhu  demand. He said that the recent rains had caused havoc to the present Maha harvest. That, coupled with alleged manipulation by certain millers has seen rice prices shooting up, he said.

Palaniandy has also written to Trade Minister Bandula Gunewardena about this matter.

Edgar to stand for re-election

Sampath Bank has informed the Colombo Stock Exchange of a possible investment in its equity by a US based investment fund.

Sampath Bank has some 68 million shares. It's learnt that ShoreCap International Ltd., will come into the Bank as a shareholder if the deal is through, by buying new shares in the Bank and not by any existing shareholder selling any of their stake in Sampath to a new investor.

Meanwhile, the Bank septuagenarian chairman Edgar Gunatunga will stand for re-election at the Bank's AGM due shortly. Another director Chandra Jayaratne (60) has handed over his resignation.

Central Bank's Corporate Governance Code says that a director above 70 years of age should resign from the board of a bank by the year end.

Havelock City to cost $ 60 mn

Overseas Realty (Ceylon) Ltd. (ORCL), has informed the Colombo Stock Exchange that its subsidiary Havelock City (Pvt.) Ltd.,  is developing Havelock City at a cost of US$ 60 million.

The BoI has granted it a 10 year tax holiday in respect of this development. An 85% equity stake in the new company will be held by ORCL and the balance 15% by Mireka Capital Land (Pvt.) ltd.,  a joint venture between ORCL and Bank of Ceylon.

Rs. 185 mn. sale value

Vallibel Power Erathna (PLC) has informed the Colombo Stock Exchange that the company received Rs. 185 million from the sale of five million ordinary shares of Didul (Pvt.) Ltd. Both companies are controlled by business tycoon Dhammika Perera.

New govt. nominees

SriLankan Airlines has informed that Treasury Secretary Dr. P.B. Jayasundera has been appointed as the airline's new chairman. The other nominee directors of the government are Nishantha Wickramasinghe, Lalith De Silva and Sunil Wijesinha.

The government has a 51.05% stake in SriLankan and Emirates 51.05%.

Emirates is represented by Tim Clark, Gary Chapman and Nigel Hopkins.

Rs. 22 bn. maturing bnd. to take heat off rates

A Rs. 22 billion Treasury bond of five year tenure that matures tomorrow  is expected to take the heat off high call money market rates (CMRs), sources said.

With the market experiencing a liquidity crunch, overnight (o/n) CMRs, the rates at which commercial banks lend cash to each other for a day closed the week at a high of 18-18« %, they said.

Central Bank (CB) said that the weighted average rate of o/n CMR on Friday was 18.51% and its maximum rate 19.50%.

Tomorrow's maturing Rs. 22 billion bond is expected to help  shave off 2% from Friday's o/n CMR, making the CMR to come down to 16%, the sources said. This is despite pressure on rates by expected government borrowings which will take a chunk off from this maturing Rs. 22 billion bond probably through a private placement in this week's Treasury bill auction, they said.

The sources however said that the high interest rates prevailing in the market were in line with the high inflation that exists in the economy.

Last month, the Census Department through the CB reported that the point to point change in the standard Colombo Consumer Price Index (CCPI) as at the end of last month was 24%.

"Based on that scenario, o/n CMRs hitting 18% is not something unusual," they said.

The sources further said that the foreign exchange (forex) market was slack on Friday, due to little or no import demand despite the Avurudhu season.

The credit squeeze caused by the government in a bid to curb inflation, has helped to slacken demand in the forex market, the sources said.

They also said that the high inflationary environment prevailing in the economy has made prices to rise, thereby also helping to reduce consumer demand, they said. As a result, the US dollar remained steady at Rs. 107.80-85 on Friday, the same rate it fetched on Thursday, the sources said.

Maxis want only 25%

The market fuelled by speculation that Maxis, Malaysia will make a mandatory offer to the rest of SLT's shareholders on the assumption that they will take all of NTT Japan's 35.2% stake (30% is the threshold that triggers the mandatory offer code) in SLT, saw SLT contributing more than 50% of the turnover of Rs. 406.2 million at Friday's trading.

SLT saw 5.5 million of its shares traded, before closing at Rs. 41.75 (per share), Rs. 1 more than its Monday's closing price. SLT's contribution to the day's turnover was Rs. 226.5 million.

Market sources however said that Maxis would settle to buy only a 25% stake in SLT, though NTT wants to dispose of all of its 35.2% stake in this telecoms company.  By ensuring that NTT has a 10% stake in the company, Maxis will ask NTT to continue to manage the company, they said.

The sources however said that SLT's new CEO would be a Maxis nominee. The company's current CEO is Shoji Takahashi, an NTT nominee. They were however unable to give a date as to when those expected changes would take place.

SLT's top five shareholders as at March 17 were Treasury Secretary: 893.4 million shares (49.5% of its equity); NTT Communication Corporation Japan: 635.1 million shares (35.19%); Alexis Indrajit Lovell: 26.9 million shares (1.49%), SLIC Life Fund: 21.5 million shares (1.19%) and EPF 18.4 million shares (1.02%).

Finance companies directed to reduce deposit rates

The Monetary Board of the Central Bank of Sri Lanka (Monetary Board) has issued a new direction titled 'The Finance Companies (Interest) Direction No. 1 of 2008' to registered finance companies, lowering the maximum interest rate that can be paid on term deposits by 0.5 and 1% based on the term to maturity of term deposits, and by 1% in respect of savings deposits.

 This new direction will come into force from Tuesday.

As per the new direction, the maximum annual rate of interest which may be paid by a  finance company on a time deposit which carries a maturity period of 12 months or less, shall not exceed the weighted average yield applicable to 364-day treasury bills issued during the immediately preceding quarter plus 2.5%. For deposits which carry a maturity period of more than 12 months, the interest rate may not be more than 5% over  the weighted average yield applicable to 364-day Treasury bills issued during the immediately preceding quarter. The previous limits were 3 and 6 % respectively, above the relevant Treasury Bill yields.  

The interest rate that can be paid on savings deposits has also been changed. The maximum annual rate of interest on any savings deposit should not exceed the weighted average yield applicable to 91-day Treasury bills issued during the immediately preceding quarter, less 1%.

 Prior to the new direction, the maximum rate was the weighted average yield applicable to 91-day Treasury bills issued during the immediately preceding quarter.

All registered finance companies are required to comply with the direction. The relevant weighted average yields applicable to Treasury bills are sent to all registered finance companies by the Department of Supervision of Non-Bank Financial Institutions of the Central Bank of Sri Lanka at the end of each quarter to enable finance companies to adjust interest rates as required by the direction. 

 Central Bank expects that these  revisions of  deposit interest rate ceilings would in turn lead to the reduction of the lending rates of finance companies.

e-delivery to reduce corruption

Commissioner General of Inland Revenue (CGIR) S. Angammana suggested edelivery to minimize corruption.

 Speaking at a taxation seminar in Colombo recently, he said that India has suggested some measures to ensure integrity management.

One is transparency in tax administration. They have specially mentioned restriction of discretionary process. One way to achieve this is to interpret each and every grey area in statute by a ruling committee so that there would be some standardization and clarity in law.

Other measures are to reduce interface with revenue officers by way of edelivery of taxpayer services, simplification of tax laws, right to information and regular training.

Integrity is expected not only from the revenue officer but also from  the professional adviser, he said.

 Angammana also said that to manage integrity each country has its own set of rules which are codified and made known to their employees.

"In Sri Lanka, we have Establishment Code and financial regulations which control the responsibilities of public sector employees and how they conduct transactions in relation to the state. "

Further, Institutions have their own ethics of conducts. IRD also introduced its Code of Ethics and Conduct in 2005. Then there is a document called Taxpayers Charter introduced in 2005 which gives the rights and obligations of tax payers.

While having only codes on booklets will not serve the purpose intended, employees should be educated and monitored. Effective organization structure should be there to monitor. If there is a breach, there should be a mechanism to look into that, he said.

IAA Congress

Sponsors for the upcoming 41st International Advertising Association (IAA) World Congress which is being held in the USA for the first time in over 20 years (from April 6-9) are:-Platinum level: CNN International, Dentsu, Dubai Media City, The Economist, EURO RSCG Worldwide, JCDecaux and Microsoft.

Silver level: Adweek Media, Eurosport and Global Advertising Strategies Bronze level: Hakuhodo, National Geographic and StarHit (Russia).     Founder level: Telefonica.

700 delegates  from over 50 countries are expected at the Congress

Imports increase 49%

Exports increased by 15.4 % year-on-year (YoY) in January 2008 along with a 41% growth in Agricultural exports.

 Tea exports, which were adversely affected by reduced production owing to labour unrest in January 2007 made a significant 38% contribution to the growth in total exports in January 2008 as a result of both the volume of export and the export price of tea increasing further, on a YoY basis.  Tea fetched a monthly average export price of  $ 3.83 a kilogram in January 2008; the highest recorded at that time. 

The export price of rubber also increased further in January 2008 resulting in a monthly average price of  $ 2.70 a kilo.  The growth in the volume of rubber exports in January 2008 could be partly attributed to this increase in the export price of rubber.  Industrial exports accounted for about 28 % of the growth in total exports in January 2008, with exports of garments and textiles expanding further by around 4%.

  Amongst other key categories of industrial exports, rubber products and diamonds and jewellery recorded significant growth, but exports of machinery and equipment and food, beverages and tobacco contracted.  Total exports in January 2008 amounted to  $ 565 million compared to $ 489.5 million in January 2007.

Expenditure on imports increased by 49.2% in January 2008.  While the rise in petroleum prices as reflected in the monthly average import price of petroleum which rose to  $ 92.7 a barrel in January 2008; the highest recorded up to then, impacted on import expenditure, the increase in expenditure on imports is partly a reflection of the fact that there were no imports of crude oil in January 2007.  Non-oil imports increased at a relatively lower rate of 19.1% in January 2008.

 With respect to consumer goods imports which grew by 38% YoY in January 2008, price increases were recorded in relation to several key categories of food items such as rice and wheat.  A further significant increase in the volume of imports was recorded in respect of rice, YoY.

Hence, the value of rice imports increased significantly in January 2008, driven by increases in both the volume and the import price.  Expenditure on imports of sugar increased due to increased volumes of imports.  Imports of other consumer goods such as medical and pharmaceutical products and motor cars and cycles also increased in January 2008 contributing to the increase in total expenditure on imports.  Total expenditure on imports amounted to US dollars 1,176 million in January 2008 compared to US dollars 788 million in January 2007.

As a result of the significant increase in the expenditure on imports in January 2008, the trade balance increased by 104.6% YoY to  $ 611 million.  External trade performance is further illustrated in the following table.

e-learning from SI

Imagine, your are a programmer, with deadlines almost weekly or daily, working round the clock, which demands frequent late evening/nights of code churning and debugging and still you wanted a degree?

Picture you as a vice president/director of a multinational corporation. Now you feel it is the right time for MBA but with meetings today in Colombo, tomorrow in Middle East and next day in Tokyo, a programme with fixed class room schedules does not suit you, what are your alternatives?

Say you are not a senior executive but just after your A/Ls working for a BPO, a five day job but on a shift /roster basis, what about your higher studies -Is it to take leave constantly for your studies or to swap your shifts with your colleagues, if so how long?

All this is not hypothetical. In today's knowledge economy the work does not confine to 8am to 5pm routine when you work with multinationals or multinational companies across different time zones.

Sometimes you might find your self telecommuting (working from home) or teleconferencing with your subordinate-for him it may be his work time, but it can be your off time or vice versa-finding time within a fixed work schedule in today's context is difficult.

The answer: E-learning. Then, you may ask or wonder.. is it just another form of Distance Learning? Of course it is.. but it is the 'contemporary counterpart' of distance learning. It has been able to change the whole experience of distance Learning.

There comes the pioneer e-learning provider in Sri Lanka, Singapore Informatics a 100%-owned venture of Informatics Education.

Informatics Education, a leading training and education provider is listed on the Singapore Stock Exchange. Informatics Holdings Ltd is a world class institute for quality lifelong learning services and made the ranking among Forbes Global 200 Best Small Companies in the world.

Singapore Informatics (SI) started its e-learning degree programme in 2002. Today it has produced more than hundreds of gradates and master degree holders. SI' e-learning programme strength is driven from its supplementary industry competent lecture panel, its infrastructure, its over decade excellence in education apart from its core strength to be a partner of the worlds largest e-learning training provider PURPLETRAIN.COM.

SI offers e-learning mode degree programmes both in business and computing with leading universities like Portsmouth University and Wales University.

Investing in India

The Ceylon Chamber of Commerce is organizing a Seminar on Taxation, Import-Export Procedures, Investment Framework and the Investment Incentives of India at the Taj Hotel Colombo on April 3.

India is a fast growing large market and is an important destination for Sri Lankan exports accounting for 7% of its total exports.

 India is becoming the first investment destination for most Sri Lankan companies that are exploring markets abroad.  Sri Lanka and India has a free trade agreement effective from 2000 which provides duty free access to over 4,000 products and the two countries are negotiating a Comprehensive Economic Partnership Agreement (CEPA) which will further liberalize services and investment between the two countries. It's expected to be finalized before end 2008.

Many Sri Lankan exporters and investors have had difficulties in fully utilizing the opportunities available to tap the Indian market due to a lack of knowledge on documentation and procedural requirements, the taxation system and other regulations. Therefore this seminar will shed light on such matters.

The Seminar will be addressed by two experts from India. The presentation on Taxation and Import/Export procedures will be made by Ernst and Young (E&Y) India Senior Tax Manager Vivek Tachisia and the presentation on Investment framework and incentives will be done by E&Y Partner and Global Tax Adviser K. T. Chandy.

Commerce Department Director Saman Udagedera, Export Development Board Marketing Director Ms. Ranjani Thudugala, Indian High Commission's Economic & Commercial Counsellor Santosh Jha, Board of Investment Executive Director (Research) Dr. Nihal Samarappuli and representatives from industry will join the panel discussion after the presentations. The Seminar will be chaired by Dankotuwa Porcelain PLC Chairman Sunil Wijesinghe.

More music by Dialog

Dialog GSM, Sri Lanka's largest mobile communications service operator launched 'Dialog Songcatcher' and 'Dialog Background Music,' two value added services that are expected to create ripples in the mobile industry by catering to music lovers from across the country.

'Dialog Songcatcher' will bring music direct to mobiles giving customers the convenience of downloading their songs anytime, anywhere.

Songcatcher offers Dialog Post-paid and Kit Pre-paid customers the advantage of storing their songs on their Dialog mobile as and when they hear them through a process of dialling and holding the phone against any music generating source (ie radio, TV, speaker) for 15 seconds. Upon capturing & identifying the music track, the Songcatcher will send in an SMS with details of the song name, artiste and a WAP link to download the available content in the form of a Ring Tone or MP3 format.

Songcatcher is based on music recognition technology where voice frequencies are used to recognize music patterns.

'Dialog Background Music' allows Dialog post-paid and Dialog Kit Pre-paid customers to play background music during call conversations. Background Music includes songs, background effects and sound effects, spicing up phone conversations.

While options are plenty with an array of English, Sinhala and Tamil

background music to choose from, customers are also given the opportunity to try out this new feature by dialing.. followed by the  recipient's phone number and pressing keys on the phone key pad during call conversation.

Dialog GSM continues to deliver the best in mobile telecoms to  its 4.3 million strong customer base granting customers a unique mobile experience.

Dialog Telekom PLC Group Chief Marketing Officer Nushad Perera said, "Dialog has been reinventing the potential of mobile communications in Sri Lanka time and time again. With the launch of Songcatcher and Background Music we have added a new audio dimension to Dialog subscribers' mobile phone conversation.

With the launch of these two features personalizing your mobile phone has reached a new level to not only include the setting of one's phone, but to also personalize conversations with background audio accessories."

Songcatcher and Background Music services are bound to add colour to the expanding plethora of services offered by Dialog encircling  popular music related services such as Ring Tones & Ring In Tones.

40% policies increase

Sri Lanka's first 'Life Insurance Week' has generated impressive results for its initiator, life insurance leader Ceylinco Life.

As new insurance policies generated by the February 11-17 initiative continue to come in, Ceylinco Life reports that the company had achieved direct interaction with more than 200,000 households in the seven-day period.

"The public response was most encouraging," said Ceylinco Life Chief Executive Director R. Renganathan. "Our representatives have completed need analysis for about 200,000 prospective policyholders which is a remarkable achievement indeed."

Renganathan said that Ceylinco Life sold more than 18,500 new policies in February 2008, a 40% improvement over what was achieved in February last year.

The Life Insurance Week was preceded by a focused, generic media campaign by Ceylinco Life and culminated with a series of interactive events in seven cities-Anuradhapura, Trincomalee, Ambalantota, Ratnapura, Gampaha, Teldeniya, and Kalutara.

Public awareness programmes comprised presentations by current policyholders and each workshop took place alongside a free medical camp conducted under the company's 'Waidya Hamuwa' programme at which the public are offered free check-ups by a team of doctors.

Sri Lanka's largest life insurance provider for the past four years, Ceylinco Life ended 2007 with premium income of Rs 6.8 billion, an increase of more than Rs 1.1 billion over the previous year. The company's Life Fund exceeded Rs 16.8 billion as at December 31, 2007.

E&W makes  turnaround

East West Properties Ltd., in the third quarter (3Q) ended December 31, 2007 made a turnaround, converting a loss of Rs. 20.8 million made in the 3Q ended December 31, 2006 to a net profit of Rs. 1.3 million in the Q under review, a 106.4% YoY increase.

But the company in the nine months ended December 31, 2007 saw earnings decline by 25.09% YoY to Rs. 78.9 million.

HNB to gift Avanzas for Avurudu

As a feature of Pathum Vimana 2008 scheme, the first Toyota Avanza car draw will be held next month. To qualify for this draw you have to maintain a minimum balance of Rs 10,000 in a savings or singithi savings account or current account for a period of one calendar month prior to the draw.

And to qualify for the premium draw a minimum balance of Rs 100,000 has to be maintained in a savings or a singithi savings account or a minimum balance of Rs 50,000 has to be maintained in a current account for one calendar month immediately prior to the draw.

HNB Pathum Vimana is the largest deposit draw introduced by a private commercial bank operating in Sri Lanka, with prizes worth more than Rs. 100 million offered through out the year. This year from Pathum Vimana (PV) 2008, HNB has decided to give away more than 12,000 prizes. Through PV 2008, customers can win a luxury apartment in the heart of Colombo from the year end premium draw and an Audi A 4 car from the mid year premium draw.

The year end grand draw will offer a Mitsubishi Montero jeep and in addition to the Toyota Avanza draw in April, there will be draws held in June and September to give away more Toyota Avanza cars.

This year customers will also have the opportunity to participate in the HNB PV 2008 game show and win cash prizes ranging from Rs 5,000 to Rs 100,000 weekly. The TV game show is telecast on Rupavahini every Friday. All qualifying accountholders will be entitled to multiple chances at the draws. The number of chances depends on the amount in the account (one extra chance for every multiple of the minimum deposit) and the period (one extra chance for every month) during which the amount is maintained in the account.

Indrajit honoured by Asian Banker

NDB Bank (NDB) Vice President, Head Retail Banking and Marketing Indrajit Wickramasinghe was the sole recipient of the Promising Young Banker Award for 2007 from Sri Lanka, where the winners of the Asian Banker Achievement Awards 2008 were announced at a ceremony in Hanoi recently.

The Award was presented to him by Tosca Fund Holdings Chairman Sir George Mathewson who was also Royal Bank of Scotland former Chairman.  The award  recognised Wickremasinghe's professional efforts in building NDB's retail banking products and services in Sri Lanka including the leadership given in working with leading mobile phone operator Dialog Telekom in launching a mobile phone-based payment and cash remittance product, which is the first commercially launched product of this nature in South Asia.

 'eZ Pay', South Asia's first mCommerce (Mobile Commerce) initiative,  is a service that allows consumers to buy goods, pay bills, transfer money and perform banking transactions via their mobile phones

NDB is one of the fastest growing commercial banks in Sri Lanka, transforming itself from a project lending bank to a universal bank within a short space of time. Innovation and technology have been the hallmarks of NDB and the rapid branch network expansion has helped customers to enjoy a service from its customer oriented staff.

.The Bank has also launched a special savings account-'Vishmitha'-offering zero% interest loans for the first time in Sri Lanka.

Wickramasinghe also has management experience in the FMCG sector. He is also a Fellow of the Chartered Institute of Marketing (UK) and holds an MBA from Sri Jayewardenapura University.

An audience of top industry leaders from around the world witnessed the award ceremony for 37 of the top professionals in the banking industry in the Asia Pacific region.

Among the honoured guests were Hong Kong Monetary Authority Chief Executive Joseph Yam, Siam Commercial Bank President Ms. Kannikar Chalitaporn, Dubai International Financial Centre Authority and former HSBC Asia Chairman David Eldon, former US Senate Committee on Banking, Housing and Urban Affairs Chairman Paul Sarbanes and Swiss Re board member and former President and Swiss Finance Minister Kaspar Villiger.

The award ceremony was held in conjunction with The Asian Banker Summit, the largest gathering of financial services industry professionals in the Asia Pacific region. The Summit is held annually in different Asian cities and this year's was held in Hanoi with the support of the Vietnam Banks' Association and the State Bank of Vietnam.

Microsoft partner statu

Eurocentre DDC achieved the status of Microsoft Gold Certified Partner, as a result of its success in delivering Microsoft-compatible solutions to enterprise customers. Established in 2000, Eurocentre is an international software engineering organization with offices in Oslo, and their software development centre in Colombo. The organization's competency lies in product development, design, testing, and maintenance and in building customized applications.

 With a structured and modulated delivery model, Eurocentre ensures that all projects are managed and delivered according to best practices. Quality standards call for code reviews, process audits and account and management reviews that are unified and driven by project management. This has resulted in a proven track record of client relationships throughout Europe.

Microsoft Gold Certified Partners (MGCPs) are the elite Microsoft business partners who earn the highest customer endorsement. They have the knowledge, skills, and commitment to help implement technology solutions that match the exact business needs. They are the elite few who have passed the highest level of requirements from Microsoft and have demonstrated their capability to implement the most robust, efficient and scalable implementations of Microsoft technologies. MGCPs receive a rich set of benefits, including access, training and support, giving them a competitive edge in the marketplace.

"We're excited about our partnership with Microsoft and honoured to be selected by them as a Gold partner, we know that earning the distinction of being a MGCP is due to the excellent work of our staff and providing solutions that work for our customers.  I want to thank our customers for providing references that helped us move into this highest partnership level.  We are determined to take advantage of this new partnership level to provide an even better service to our customers with the benefits offered within this partnership programme. Since our customer base is predominantly in Europe, this certification has further enhanced our capabilities in delivering solutions based on Microsoft technologies," said Eurocentre DDC Chief Executive Officer Mano Sekaram.

With a large resource pool of Microsoft Certified System Engineers, Eurocentre has grown in the last few years and this certification validates Eurocentre's commitment to raise the bar on IT service delivery. Microsoft's recognition opens a new level of client opportunity by aligning Eurocentre's core competencies with the most recognized and respected partner accreditations.

 "Today's customers demand to be up-to-date on the latest technology and how it works.

We need strong companies with a proven track record of using Microsoft products and technologies and illustrate a strong commitment to progressing industry standards and meeting customers' demands. Obtaining Gold Partnership takes this to a new level of excellence. Eurocentre is predominantly a Microsoft operation with over two thirds of their developments on Microsoft tools and technologies for their customers' across Europe. Eurocentre has demonstrated such capabilities and, while we have an engagement with them already, Microsoft Sri Lanka welcomes them to the Gold Partner programme, said Microsoft Sri Lanka Country Manager Sriyan de Silva Wijeyeratne.

As one of the requirements for attaining Gold Certified Status, Eurocentre had to achieve a Microsoft Competency.  Microsoft Competencies are designed to help differentiate a partner's capabilities with specific Microsoft technologies to customers looking for a particular type of solution.

 Each competency has a set of requirements and benefits, formulated to represent the specific skills and services that partners bring to the technology industry. The "competencies" in  Eurocentre's  were Data Management Solutions and Custom Development Solutions. 

Microsoft ISV Partner Account Manager Alanzo Doll said, "The Gold Certified Partner status sends an important message to potential customers that Eurocentre displays excellence in operational functionality on Microsoft operating systems and that they can trust in Eurocentre Microsoft certified system engineers. Customers in turn could look specifically for certified partners to ensure they receive the competencies they need from their ISV partners."

More avurudhu benefits

Thousands of satisfied customers who have grabbed the opportunity of buying products under "No Poli-More Jolly" Interest Free Instalment scheme introduced by Abans some time back are testimony to the benefits that this promotion has offered them, said a company statement.

They are satisfied that there is no catch to it, no small print with hidden terms and conditions.

"No Poli-More Jolly" is what it implies-easy instalments-interest free, release added.

Abans has strengthened their resolve to offer more relief to consumers by offering better terms and bigger discounts during this Avuruddu Season, the company said.

Owning a large screen 32" PDP Television or a Double Door Refrigerator was beyond the means of an average income family. But with "No Poli-More Jolly" any average income family can afford such luxuries without much financial strain, the release said.

 Abans offers interest free instalment terms on televisions, refrigerators, washing machines, motorcycles and a wide range of products from the world's best brands, it said. World renowned brands Philips and Sanyo are the recent additions to Abans World famous brands LG, JVC, Mitsubishi, Electrolux, Hoover, Haier, Panasonic, Hitachi and Pyrex to name a few, the release said.

Your family deserves a treat once in a while, something special and amazing. Surprise them this Avruddha, it said.

Take home a 32" large screen PDP Television, or a Home Theatre System and the amazement on their faces will be worth the money you spend, the statement said.

Head to your nearest Abans Showroom and pick an amazing gift for your family at a price that you can easily afford, it added.

Senanayake, FCI President

The idea of forming a forum of all chartered institutes was first mooted by a few committed individuals in late 2003 by Founder and Past President Fayaz Saleem, The Management Club (TMC); TMC President Col. Faiz-ur.Rahman,  Ajit de Silva, Bentley Barsenbach, Lasantha Wickramasuriya, Rohan Abeywickrama, Ajit Tudawe, Pravir Samarasinghe and Chartered Management Institute President Sunil Deheragoda and others, all of whom held positions in the various professional bodies.

 Talks did not bear results since at that time, only about 5 institutes were agreeable to such a formation and hence the idea was shelved. It was once again brought up by Deheragoda, in late 2006.

After months of deliberations, all chartered Institutes operating within Sri Lanka as branches of the UK institutes incorporated by Royal Charter banded together to form the Forum of Chartered Institutes in Sri Lanka (FCI) with the signing of a Memorandum of Understanding in February 2007.

Currently those holding FCI membership are the Association of Chartered Certified Accountants, British Computer Society, Chartered Management Institute, Institute of Chartered Secretaries & Administrators (ICSA), Chartered Institute of Marketing, Chartered Institute of Management Accountants, Chartered Institute of Logistics & Transport, Institute of Chartered Shipbrokers and one institute incorporated by an Act of Parliament in Sri Lanka, the Institute of Chartered Accountants of Sri Lanka (ICASL).

The signing of the MoU was followed by a inauguration on March 26 2007 in the presence of  the then British High (BH) Commissioner Dominick Chilcott, Chartered Management Institute, UK CEO Mrs. Mary Chapman, BH Commission and British Council representatives and several other known personalities.

 Saleem was elected the first FCI President, whilst ICSA Immediate Past President Rennie Corera was elected Hony. Secretary. ICASL President Yohan Perera, was elected the first Hony. Treasurer.

FCI's aim is to promote networking and camaraderie amongst members of various disciplines within the private and public sectors.

In recent times FCI has been in discussion with the Federation of Chambers of Commerce & Industry to find ways and means in which the FCI could assist small and medium sized industries with the technical expertise available in several disciplines. This programme would be more in line with a CSR initiative on the part of the FCI.

Janashakthi plans to raise Rs 200-400 mn.,

Janashakthi Insurance Company Ltd., plans to raise Rs. 200 million, with an option to raise another Rs. 200 million through a public listing.

"We hope to complete the process by June, Janashakthi Managing Director Prakash Schaffter told The Sunday Leader on Wednesday.

Over 90% of Janashakthi's equity is held by the Schaffter family.

"The dilution of the family holding in the company because of this listing will be marginal, may be by about 4%," he said.

Janashakthi in the financial year ended December 31, 2007 made a profit after tax (PAT) of Rs. 526 million, down 29.5% compared with a PAT of Rs. 746 million made in the previous year.

However, profits in 2006 was buttressed by a capital gain of Rs. 555 million made by the company on account of divesting its stake in NDB Bank.

The Group made its highest ever revenue of Rs. 5.2 billion in 2007, a year on year (YoY) increase of 8.3%.

Gross Written Premium (GWP) in the General Insurance (GI) segment grew by 17% YoY to reach Rs. 3.68 billion by the end of last year, while GWP in the Life business grew by 18% YoY to Rs. 1.2 billion.

Janashakthi is the third largest General insurer in the country.

Fifty per cent of the country's GI business is derived from Motor Insurance which grew by 22% YoY to make a premium income of Rs. 2.76 billion in the year under review.

The company as at end 2007 had 112 branches islandwide, a staff strength of 2,190 and a customer base of over 500,000.

The company has also applied for a rating.

Avurudhu with Odel

Odel, Sri Lanka's premier lifestyle brand, much improves the tradition of gift giving this Avurudhu season with the introduction of an array of seasonal merchandise to make gift giving affordable and easy.

To ensure that there is something for everyone this Avurudhu season, Odel will make available a variety of attractive and eye-catching gift items at its outlets in Colombo and surrounding suburbs.

This new collection of merchandise has been designed in keeping with the Avurudhu theme and features attractively priced T-shirts, sarongs, bags, accessories, kids items and homeware goods. Many items featured within this range have been designed with the colours deemed auspicious for the New Year-brilliant reds and vibrant yellows-to create a dazzling and striking selection of clothing items and gift options.

Furthermore, Odel adds more excitement to the season with a number of other Avurudhu themed offerings at its flagship store at Alexandra  Place. A special sweet meats hut will be set up at the front of the store where shoppers will find Avurudhu fare available.

To further draw in shoppers and raise awareness on these seasonal offers, the brand has also designed a catalogue depicting the products that have been designed for Avurudhu and many other gift items.

The celebrations and themed merchandise for this April is another interesting and unconventional step for the fashion brand which has been reputed for being at the pinnacle of style. The colourful merchandise will be available at Odel outlets at Alexandra Place, Majestic City, Kohuwela, Ja Ela, the Bandaranaike International Airport and Dickman's Road.

Music from Formula World

Music and motor lovers are in for a treat every Friday night when Sirasa TV launches a musical extravaganza from Formula World, Seeduwa, the state of the art collision repair centre of Sri Lanka Insurance (SLI).

Auto Plus had its first show on Friday .

Sunflower, Marians, flash back are said to provide music to veteran singers ranging from Sohan, Nirosha, Athula, Samitha, Keerthi, Anil Barathi, Uresha Ravihari and more at this event. The show will be presented by Priyantha and Madhu of Sirasa TV.

SLI Formula World Managing Director Suren Galagoda said: "We have formulated this concept as our dedicated customer care personnel who are constantly in touch with peoples' opinions realized the importance of executing an awareness programme regarding the facilities available to all Formula Plus policyholders at Formula World. This will be an additional activity to the continuous programmes conducted by SLI in order to educate potential customers on the importance of insurance and we believe our agreement with Sirasa TV would prove to be a successful venture. "

Located at Seeduwa, this 8,100 square foot building space sprawled over 2 acres of land, can accommodate over 300 vehicles and is equipped with the latest technology in the automotive repair industry, not found in most collision repair centres in Asia, on par with best in the world.

Formula World (FW) is the first collision repair center (CRC) in the world, managed and owned by an Insurance company providing exclusive service free of charge to its comprehensive motor policyholders.

FW was built on the notion of providing the utmost 'peace-of-mind' and a 'hassle-free' motor vehicle repair experience to its Formula Plus motor insurance policyholders. To achieve its vision, FW has a dedicated fleet of special recovery trucks on call 24hrs-a-day that will transport the damaged vehicle to the CRC, thus, freeing the policyholder from the burden of finding a qualified vehicle towing service. Once brought to FW, customers will have no hassle in looking for spares & also can be rest assured that the vehicle will be repaired to manufacturers' specifications by a team of qualified technicians who are trained by overseas qualified specialists. 

SLI with over Rs. 55 billion in assets under management , over a million policies in force and over 46 years of success stories to its credit on providing value-for-money service is most likely the only player capable of providing a service to the magnitude of  FW, to all of its Formula Plus policy holders.

AmEx offers Rs. 50,000 wardrobe

American Express (AE) in a partnership with some of Colombo's finest clothing stores announced the launch of the Wardrobe, in preparation for the festive season. The Wardrobe gives AE Card members the best reason this season to indulge in some retail therapy.  Upto April 30, AE will offer shoppers the opportunity to win Rs. 50,000  worth of clothing to fill their wardrobe.

The Wardrobe includes the country's most premier shopping destinations such as Odel, Cotton Collection, Leather Collection, Hameedia, Raymond, Adidas as well as No Limit, Gabbana & Mondy.  Card members need to use their AE credit card for purchases at these stores to become eligible for the prize.

Nations Trust Bank PLC AE Chief Manager Nadeesha Senaratne said, "This is yet another exciting launch from AE and is bound to be a timely treat to all our card members during the forthcoming festive season. We are delighted to partner with the premium life style clothing and department stores in the country in introducing this novel value addition to our membership privileges."

Eight  "wardrobes" will be given away in total, one from each fashion chain. AE cardmembers can shop islandwide at partner clothing stores in Colombo,  Kohuwela Ratmalana, Ja-ela and Nugegoda. Every purchase increases the member's chance of winning.

SFCL chairman

S K Wickremasinghe will take over as chairman Senkadagala Finance Company Ltd (SFCL) from April 1.

Wickramasinghe was formally chairman NDB Bank. He also served on the boards of numerous other companies, both in the public and private sectors.

He is also a former high commissioner to UK.

Wickramasinghe takes over from E. W. Balasuriya who served SFCL for over 30 years.

SFCL, a registered finance company, has a portfolio that comprises hire purchase, lease assets and advances. The company as part of its business philosophy aspires to be the benchmark in financial services marketing.

Stock market announcements

Merchant Bank of Sri Lanka PLC has declared a first and final dividend of Rs. 1 per share. Shareholders' meeting on April 23, 2008; excluding dividend (XD) date April 24 and payment date April 30, 2008.

Colombo Dockyard Plc has announced the capitalization of its reserves in the order of one new ordinary share for every 20 existing ordinary shares held, at a consideration of Rs. 10 per share. This reserves capitalization is subject to Colombo Stock Exchange Approval.

Airtel promoter

As Airtel India's largest mobile service operator gets ready to launch in Sri Lanka it has appointed Madison Media, Sri Lanka as its Media AOR in Sri Lanka.

Madison is the AOR for Airtel in India and also the AOR for other Bharti group companies like Bharti AXA Life Insurance and Mutual Fund respectively and Bharti DTH and Retail respectively.

Airtel evaluated Mindshare and Madison and chose Madison after hearing presentations from both in Sri Lanka.

Airtel Marketing & Communications Gopal Vittal said, "Madison  has been a partner and has played a part in Airtel's success story in India and we are confident that they will extend the same support in Sri Lanka too and deliver all that it takes to make us succeed there."

Airtel Lanka CEO Amali Nanayakkara said: " Madison has partnered Airtel effectively in India and we hope to leverage the strong partnership here to build the Airtel brand."

Madison World Chairman Sam Balsara said, "We are delighted on hearing Airtel's decision and are confident that the Madison way in media will work in Sri Lanka too. If P&G gave us a head start in media in India, Airtel is doing that in Sri Lanka."

ICICI in NY, Frankfurt

ICICI Bank Ltd (ICICI) recently inaugurated its New York branch in Manhattan, whilst almost simultaneously opening a branch in Frankfurt, Germany.

The New York branch,will offer a suite of banking services including working capital, acquisition finance, trade service and treasury solutions to corporates and savings products.

Meanwhile, the Frankfurt branch will serve customers through internet and telephone banking and will also focus on serving corporate businesses with significant Germany-India linkages.

Eran on BenchMark

In probably his first interview given to the electronic media, incoming CEO of NDB Bank Eran Wickramaratne who assumes his new duties on April 1 will speak to BENCHMARK about Sri Lanka's banking sector and the general business climate.

He will discuss issues such as inflation, interest rates and the country situation-which not only affect banking, but business as well.

Also on this Sunday's edition (TNL) of the big-picture business

programme is 'The Voice Of Business' on SriLankan Airlines' future prospects-as well as an update on business confidence, via the LMD-Nielsen Business Confidence Index.

Benchmark is also telecast on LBN's Bloomberg Television segment  on Mondays.

Disaster Recovery

Suntel conducted its 3rd forum on Suntel Enabled Services recently.

The event focused on high end corporates who are in need of disaster recovery for centralized applications, unified threat managements and "IDC" services. Suntel emphasized on the value added through solution partners like CISCO, Microsoft, Red Hat, HP, Verisign and thawte. FORTINET mc, who was "present" at the forum gave an introduction to Unified Threat Management which is an important element in today's business. Suntel Ltd Corporate Sales Head Ranjith Fernando emphasized the importance of having reliable solution partners, thus enabling corporates to concentrate on their core business. Service Development Head Chaminda Seneviratne and FORTINET INC SAARC Regional Manager  also gave presentations on this occasion.