Call rates up 400-500 bp in 24 hours 

Govt.'s increased expenditure
causes pressure on rates

Increased government recurrent expenditure on defence and salaries caused overnight call money market rates to shoot-up by 400-500 basis points (bps) and hit 18% on Friday over Thursday's close, market sources said.

This is terrible, this was a phenomenon that was not there in the previous UNF regime where they consciously curtailed government spending to make borrowings cheaper for the investor, they said. (100 bp=1%)

Overnight call money market rates are the rates at which commercial banks borrow from each other for a day.

The Central Bank (CB) said that the weighted average rate of overnight call money market rates on Friday was 16.43%, 303 bp more than Thursday's figure of 13.40%. The maximum rate overnight call rates fetched on Friday was 19.75%, 562.5 bp points more than Thursday's rate of 14.125%.

In a bid to lessen pressure on rates, the CB opened its overnight reverse repurchase window to banks on Friday and lent to the industry Rs. 1,487 million at the concessionary interest rate of 12%.

Government borrowings from the market on Friday were through the state controlled Bank of Ceylon (BoC), they said. BoC would have had borrowed around Rs. 3-4 billion from the market on Friday alone, they said.

At the same time, BoC may have had sold around $ 20-30 million to the market on Friday to get rupees on behalf of the government in turn, the sources said. The deficit would have had been bridged by them borrowing from the market.

 By this action, the US dollar remained steady at the Rs. 107.60-107.80 levels in spot trading due to the influx of dollars to the market, they said.

But what this has caused is that exporters are being hit, they are not getting enough rupees for their dollars, the sources said.

Government policy to tackle inflation appears to be to keep borrowing rates high, while at the same time having a strong rupee to make imports cheaper, they said. Inflation, as measured by the point to point change in the Colombo Consumers' Price Index (CCPI) hit 28.1% last month, up 4.1% over February's figure of 24%.

But the mismatch here is that there is an increase in wasteful government expenditure which was not there in the previous UNF regime. The government should stay away from the market to stabilize the economy, they said.

Borrowing to buy bullets does not make the country richer, the sources said. What is needed is investment in infrastructure development like roads which however is not forthcoming, they said.

Government is distorting the market by increasing their recurrent expenditure spends by coming to the market to meet their borrowing needs, the sources said.

War hits cement industry

A slowdown in government infrastructure development works has put the brakes on the growth of the local cement industry, a cement manufacturer representative told The Sunday Leader.

Samitha Ratnayake, Brand Manager for Holcim Lanka said that as a result, the industry which grew by 6.8% year on year (YoY) in 2006 slowed to 6.5% last year.

Ratnayake attributed the slowdown in infrastructure development works in the country to the government channelling more resources to the war.

He said that the industry was missing out on development works in the North and East because of the conflict.

Ratnayake further said that though the East is "liberated," Holcim was yet to witness the benefits of  "peace" from that province in the form of increased sales.

He expected the benefits of  "peace" from that area to be derived only next year.

"The East is still in a state of flux," said Ratnayake. He said that the country consumed about four million metric tons (mts) of cement in 2007.

According to latest Central Bank (CB) reports, cement supply in the country in the first 11 months of last year grew by 10.7% YoY to 3.4 million mts. This comprised a 6.2% growth in local supply to 1.5 million mts and a 14.5% growth in imported cement to 1.9 million mts.

Ratnayake said that the Gampaha and Colombo districts contribute more than 40% of sales.

 He said that this status quo would remain unchanged this year as well. According to the CB, half of the country's GDP is contributed by the Western Province.

The Swiss based Holcim Group which bought Ambuja Cement from Birla Group, India, last year, is the market leader in the local cement industry with a 38% share, claimed Ratnayake. They were followed by Tokyo Cement with a 30% share.

Recently, the Birla Group submitted an unsolicited proposal to the construction ministry to exploit the government's unutilized cement plants in Kankasanthurai at an investment cost of Rs. 300 million. Jaffna is rich in limestone, a key raw material needed for the manufacture of clinker, which in turn is a composition needed to manufacture cement.

He said that 85% of Holcim's income is derived from household buildings and the balance 15% from government infrastructure works.

 "Of that 85%, 15% comes from cement consumption in condominium development works," he said.

Contrary to reports, Ratnayake said that he has not seen a slowdown in the country's condominium industry. Holcim markets a 50 kilo bag of cement at Rs. 730.

The Sunday Leader  was not able to immediately get comments from other industry sources such as the CEO of the Chamber of Construction Industry Dhakshitha Thalgodapitiya and the General Manager of Tokyo Cement Christopher Fernando.

PMB headhunting for CEO

People's Merchant Bank PLC(PMB), a public quoted company has been functioning without a CEO since the resignation of Guy de Silva from this post nearly a year ago. People's Bank is the single largest shareholder of PMB with a 39% stake in the company.

Reliable sources who did not want to be named said that though they had advertised for this post twice, they did not get any suitable application.

"We need a person who is versed in commercial activities such as leasing and hire purchase to take over as the company CEO, but we are yet to find such a person," the sources said.

The CEO functions of the Bank is now carried out by Thimira Rajapakse, a businessman, who is also a director of People's Bank.

Other major shareholders of the company are LOLC (20%), Lionhart Investments-an overseas investment fund (10%) and South Bridge Investments Hong Kong (7.5%). The rest of the company shares is held by the public.

LOLC and Lionhart made their strategic acquisitions in PMB late last year with the exit of David Pieris Motor Company from PMB.

 The company in the third quarter (3Q) ended December 31, 2007 saw income grow by 30% year on year (YoY) to Rs. 100.3 million. However, profit for the period declined by 45% to Rs. 5.4 million.

In the nine months ended December 31, 2007 company income grew by 103% YoY to Rs. 267.9 million, but net profit after tax in the period under review dipped by 75% to Rs. 7.2 million.

PMB's other directors are: Asoka de Silva and Kapila Ariyaratne (People's Bank nominees), Mahinda Hardasa (South Bridge nominee) and Kapila Jayawardena (LOLC nominee)

The company is due to hold its AGM next month and it's expected that this meeting would result in further board changes in PMB.

GTH makes mandatory offer

Global Telecommunications Holdings NV Netherlands (GTH) that bought NTT Japan's 35.19% stake in SLT for Rs. 32.07 billion on Tuesday, made a mandatory offer to buy the shares held by its other stakeholders at Rs. 50.50 a share, the highest price that GTH paid to obtain NTT's stake in the company.

GTH is a subsidiary of Usahas Tegas, Malaysia, a company controlled by multi-billionaire T. Ananda Krishnan who runs Maxis, a telecoms operation in Malaysia, which has recently gone global.

SLT's single biggest shareholder is the Treasury which has a 49.5% stake in the company.

Avurudhu affects bourse

The bourse, in the absence of institutional activity returned a low Rs. 232 million turnover at Friday's trading.

Market sources attributed this depressed activity due to the forthcoming avurudhu  holiday season. They said that despite a high interest rate regime prevailing in the country, there were investors who were still prepared to place their money in the market.

The sources expected this sluggishness to continue throughout the month before taking off next month.

The main contributors to Friday's turnover were SLT (Rs. 44 million), Commercial Bank Non Voting (Rs. 25 million), Browns (Rs. 24 million), JKH (Rs. 17 million) and DFCC Bank (Rs. 13 million).

Meanwhile, the benchmark ASPI and the more sensitive MPI fell by 4.53 and 10.2 points respectively on Friday over Thursday's closing figures to finish the week at 2,624.97 points and 3,300.67 points

"Pass through" effect reaps dividends

Merchant Bank of Sri Lanka PLC (MBSL) in the fourth quarter (4Q) ended December 31, 2007 saw income grow by 24.1% year on year (YoY) to Rs. 445.3 million, while profit after tax (PAT) in the period under review grew by 18.3% to Rs. 134 million. The Group in the financial year ended December 31, 2007 saw total income increase by 24.1% YoY to Rs. 1.4 billion, while profit increased by 18.3% to Rs. 244.6 million.

Group Chief Executive officer Gamini Karunathilake told reporters on Wednesday that growth was due to cost rationalization and the "pass through" effects of the country's high interest regime to the consumer.

MBSL is a Bank of Ceylon subsidiary.

The Group was able to reduce their non performing loan portfolio from 14% to 10% in the period under review.

The company which is also involved in capital market activities, is working on three initial public offerings valued at Rs. 1.5 billion this year, its Deputy Director A.M.A. Cader said.

German beauties here

Miss Germany 2008, 18-year-old Kim-Valerie Voigt is currently touring Sri Lanka along with two other celebrity beauties:  Claudia Hein, Reigning 'Beauty of the World' and Carina-Alexandra Nix, Third Runner Up in the 'Miss Germany 2008' pageant.

They are here on an initiative of Sri Lanka Tourism and Sri Lanka Tourism's Office in Germany.

Voigt was a special invitee to the Sri Lanka stall at the ITB Fair in Berlin last month (March) where she assisted in presenting Sri Lanka Tourism Travel Awards to German Tour Operators who promoted destination Sri Lanka.

The invitation to visit Sri Lanka was extended to the German beauty queens by Sri Lanka Tourism Germany during the final event of 'Miss Germany 2008' contest which took place in Freiberg, Germany in February 2008 where Sri Lanka was a sponsor.

This visit of the German beauty queens, will future support the marketing campaigns promoting Sri Lanka as an exotic destination, renowned for warm hospitality.

Their first taste of Sri Lanka was an Ayurvedhic treatment at Ayurvedhic Pavillion in Negombo. The other hotels they stayed in were The Beach Negombo and Club Hotel Dolphin Waikkal.

A fashion show organised by world acclaimed designer Dinesh Chandrasena is also a part of the itinerary where the beauties made a special appearance.

The team will visit Sri Lanka's cultural and natural sites of Sigirya, Minneriya National Park, Pinnawela Elephant Orphanage, Peradeniya Botanical Gardens and Nuwara Eliya along with a visit to Galle.

Sri Lanka Tourism will ensure that the beauties and their team will take back wonderful memories of the destination.

Seylan-Sathosa  joint promo

Lak Sathosa together with Seylan Bank Debit Cards have introduced an offer that will help ease the financial burden of shoppers this season.

With the country gearing up for celebrations, and everyone from villages to the cities preparing for the season, one's less worry will be how they're going to afford to celebrate this season.

A 5% discount will be offered on all purchases made at any one of the 65 Sathosa outlets to the ever increasing Seylan Bank debit card holder base in the island. They can now take advantage of this offer upto April 30, according to Seylan Credit Cards Marketing Manager Jayantha Gunasekera.

Speaking to The Sunday Leader, Gunasekera said that Seylan credit cards is proud to have been chosen by Sathosa for this special Avurudu promotion and that this was the first time Sathosa has hosted such a promotion.

He said, "If there's one worry on everyone's mind this Avurudu season, it's how to manage expenses while celebrating. Sathosa is looking out for their customers in doing a promotion of this nature. This discount will help them a great deal."

He added that people who don't possess Seylan Bank debit cards need not be left out as they can open a savings account with Seylan Bank before April 30 to make the best of this offer.

Gunasekera added that the promotion will be on at all Sathosa outlets in the country and that the bank's wide branch network will be helpful to reach out to the rural sector.

He said that this is the first of more such promotions to come where customers can take advantage of discounts.

Larders will be full in village areas now, not just because the harvests have been collected, but because two giant companies have got together to make it possible for tradition and customs associated with Avurudu could still be practiced.

With just about every other store and service trying to make a quick buck during this season, Sathosa and Seylan Bank are doing just the opposite by giving.

Gunasekera said, "It's great what they're doing and this is the first time that we have tied up in such a partnership. It's too soon to say how the response has been, we expect a high turnover in the next few days leading up to Avurudhu."

Greenland going green

ACCA Sri Lanka Chapter President Dilshan Rodrigo speaking at the recently concluded ACCA Sustainability awards ceremony said that he saw a BCC documentary about Greenland going green.

" Whilst Greenland's inhabitants are thrilled by the prospect of being able to grow trees, flowers, vegetables, and other produce after generations of snow covered lands, for the world this signals two horrifying prospects: On the one hand the melted ice which washes in to the sea would result in sea levels rising, causing increased flooding, hurricanes and earthquakes.

On the other hand, the ice caps in the North Pole are one of the principal mechanisms by which Earth cools itself. Their gradual erosion would lead to forest fires and droughts that will serve to destroy farm crops and produce.

This phenomenon is being caused by the   immense volumes of Carbon emissions that we release daily to the atmosphere.

Today there is greater recognition than ever before of climate change because we all are experiencing it. Former US Presidential candidate, now an environmental advocate-Al Gore stresses that concerted action from all interested parties-private sector, government and community is required to address this issue.  We all need to think of the environment as our life support system-supporting our business, lifestyle, children and grandchildren. We need the environment more than the environment needs us. Today, environmental issues have taken over Corporate Social Responsibility and Ethical Reporting, the key issues of the past, as the number one priority in Sustainability Reporting, Rodrigo said. 

" We had a 50% increase in companies competing this year over last year. It was gratifying to see representations from the public and SME sectors this year. Whilst all this is encouraging, I believe for a market place with over 100 listed companies and at least 5 major unlisted companies not to mention SMEs, we have only scratched the surface, for me it only underscores the potential for more companies to join the bandwagon of sustainability reporting," he said.

HSBC pioneers mobile info

HSBC, the market leader in credit cards has introduced an innovative service for the very first time in Sri Lanka to serve their customers even better, with greater convenience. The mobile information service is an informative concept enabling HSBC credit card customers who possess a Dialog or Mobitel connection to gain quick access to information on all HSBC credit cards offers via their mobile phone.

By using this number, information on HSBC credit card offers and other HSBC services could be accessible from anywhere-locally or overseas at anytime at no extra cost. As a result, customers will not have to wait until they are informed of what they stand to benefit by using their HSBC credit card to enjoy life.

The service will allow credit card customers to access information on HSBC credit card benefits and offers, 0% merchant outlets, rewards partner outlets, bill payment options and inquiries and important telephone numbers (toll free for customers with roaming facilities and international text messaging).

 HSBC Sri Lanka and Maldives Chief Executive Officer David J. H. Griffiths said, "Partnering with two of Sri Lanka's fastest growing telecoms providers has given HSBC a competitive edge in reaching a wide segment of credit card customers and supplying them with information at their finger tips."

The service is the newest technological innovation introduced by a bank to the commercial market in the recent years. This will help to reduce the use of paper based communication material such as brochures, pamphlets and leaflets, creating a greener environment that is in line with the bank's global business strategies to preserve the environment that we live in.

HSBC Marketing Head Rienzie Martinesz said, "Our customers before making plans to go shopping or go out for a meal, get pampered at a spa or plan a holiday, will now have the facility to check the HSBC credit card special offers by simply dialling their Dialog or Mobitel mobile phone for instructions."

HSBC plans to tie up with other mobile service providers in the country to expand the reach and make information accessible to customers using mobile phones.

CPSICL launches credit cards

Ceylinco Profit Sharing Investment Corporation Ltd (CPSICL)- one of Sri Lanka's leading Islamic financial institutions - will be launching the Region's first ever stand-alone, Islamic Credit Card - the Ceylinco Profit Sharing Visa Credit Card soon by joining hands with Seylan Bank PLC.

Seylan pioneers the banking industry in launching services that are unique to the industry and  it will serve as the service provider to CPSICL.

"Islamic Banking is the fastest growing segment of the world's banking industry and Ceylinco Profit Sharing recognizes the desire of a growing number of its customers to conduct their banking and financial transaction in accordance with Islamic Sharia. The Ceylinco Profit Sharing Visa card is in the final stages of development, and will also shortly be followed by a number of Sharia compliant products and services," said CPSICL CEO Dr. Z M Rafeek.

Under the 'Ceylinco Profit Sharing Credit Card Programme,' a Classic, Gold and a Platinum card will be launched, extending this facility to  CPSICL customers.

NDB donation to CNH

NDB Bank (NDB) recently donated a television set, a pocket sized tape recorder and six rotating chairs to the Information Centre of the Colombo National Hospital's (CNH's)-Accident ward and Orthopaedic Service.

NDB Operations Head Vice President Kumar Weerasinghe handed over the items to CNH's Deputy Director Accident Service (AS) Dr. Anil Jasinghe.  CNH AS Training Coordinator Ms Pushpa Ramyani Zoysa also participated.

"Call & Go" to "Call & Replace"

Union Assurance PLC was the first insurance company in Sri Lanka to introduce the "Call & Go" motor insurance policy which allows customers involved in an accident to log an entry with the call centre and drive off without waiting at the scene of the accident for an assessor to inspect the damage.

 The company has once again taken customer convenience to the next level by introducing "Call & Replace." 

Under this new scheme, Union "Call & Go" customers could have minor repairs such as damages to windscreens, side mirrors or lamps attended to at a time and place convenient to them.

"From customers' perspective one of the vital issues today is the lack of time to get minor repairs sorted out. There are many occasions that only your windscreen, lamps or side mirrors are damaged. We have focused directly on these key needs through "Call & Replace," said Senior Marketing Manager Dharshana Amarasinghe.

Union Assurance has tied up with a number of leading suppliers who will visit customers and attend to the repairs as per their convenience. All expenses related to accidental repairs will be borne by Union Assurance. "Union Assurance has always made simple propositions to its customers, which have turned out to be convenience factors. Through "Call & Replace," the company has successfully leveraged the resources available in the country and provided customers a unique and efficient method to get their accident related repairs done," said Amarasinghe.

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.

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.

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

Ceylinco pays 72% more than promised

As a result of Ceylinco Life's attractive bonuses, it has been able to deliver more than it has promised to policyholders, director Mrs Amali Seneviratne said.

"For example, a policy maturing after 15 years in 2007 with a guaranteed sum assured at maturity of Rs. 100,000 under an endowment assurance, would be paid a maturity value of Rs. 171,500 reflecting a 71.5% growth over the promised value," she explained.

Meanwhile, Sri Lanka's life insurance leader will distribute Rs.19 million in 'Avurudu Cash Bonuses' to policyholders, continuing an auspicious tradition it introduced to the industry in 2004.

 This will bring the total value of Ceylinco Life's Avurudu cash bonuses over the last five years to more than Rs. 100 million. The bonuses which come in the form of immediately encashable cheques will be home-delivered for the fifth year running by Ceylinco Life personnel on and between April 4-7, rewarding some policyholders by as much as Rs 125,000.

These bonuses are offered in addition to the annual bonuses paid by Ceylinco Life to active policyholders and form part of the company's 'Life Rewards' portfolio of exclusive benefits.

"With this year's payment of cash bonuses, Ceylinco Life has given 61,750 policyholders an additional reason to celebrate," Seneviratne said.

"The trust they have placed in us and their loyalty have earned them these rewards."

Ceylinco Life's cash bonuses are structured to ensure that the bonus rates increase with loyalty, so that the longer the policy stays active, the higher the bonus received.

The Special Cash Bonus will be equal to Rs. 25 per Rs.1,000 sum assured for those who complete 10 years and Rs. 50 per Rs. 1,000 sum assured for those who complete 15 years.

Accordingly, a participating policy with a sum assured of Rs.1 million will be entitled to a cash bonus of Rs 25,000 on completion of 10 years and Rs. 50,000 on completion of 15 years.

Sri Lanka's largest and most successful life insurer, Ceylinco Life is the local insurance sector benchmark for innovation, product development, customer service and professional development.

The company's islandwide branch network represents the widest presence in the local insurance industry. The company has won international and local awards for good corporate citizenship and brand image building.  Ceylinco Life ended 2007 with a 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.

Golden Key signs up SLT

Sri Lanka Telecom (SLT) signed an agreement with Golden Key Eye & ENT Hospital, Rajagiriya, providing them with voice communication solutions.

This communication solution comprises a state of the art PABX infrastructure, dedicated high capacity digital connectivity for voice communication and inter-branch communication system for the Golden Key Hospital.

Ceylinco Consolidated Golden Key Group Deputy Chairman/CEO Kavan Perera said, "Ceylinco Group has had a long standing relationship with SLT and

with this agreement, it is one further step in the right direction in  consolidating the relationship. They have a good, flexible network and the package that we have been offered by them is attractive."

Golden Key Eye & ENT Hospital Executive Director Nishantha Danthanayarana said, "SLT is the premier telecoms service provider. We want to associate with the best, in whatever we do; because we want to be the best in our field-Eye and ENT care. Hence we are proud to be a part of this initiative.

SLT has the capability to serve the future demands of any corporate in Sri Lanka, with the company already laying down giant infrastructure for international and domestic connectivity.

This can serve any customer's communication needs, especially in terms of Internet Protocol (IP) services. Also SLT internet Data Centre (iDC) plays an important role through the provision of data hosting services to SLT corporate customers with the highest international security standards for customer's valuable business critical data.

SLT CEO Shoji Takahashi said, "I'm appreciative of the management of Golden Key Eye & ENT Hospital Ltd., for choosing the solution provided by us. We aim to provide them with a customized solution based on their requirement as well as cost effective real time communications.

Also we believe in the future we can further smoothen Golden Key Eye & ENT Hospital's activities through broadband services using our world class technologies."

SLT has the largest international bandwidth for broadband services and is the only telecoms company in Sri Lanka that operates an aggregate bandwidth of over 2.5 Gbps on its international internet backbone. The backbone consists of multiple optical fibre under sea connections and a satellite link that together operates in a complete fail-safe configuration.

SLT internet Data Centre (iDC) provides data hosting services to SLT corporate customers with the highest international security standards. The company has already rolled out its national optical fibre network and established the required infrastructure for seamless international and domestic connectivity.

Electricity bills by credit card

Ceylon Electricity Board (CEB) recently partnered Nations Trust Bank  whereby all electricity bill payments may be made via the American Express (AmEX) Credit Card.

  This is the first time CEB has permitted the usage of a credit card to facilitate utility bill payments, and AmEx has the privilege of being the only credit card that is accepted by the CEB.

Bill payments are now accepted at the CEB Head Office at Sir Chittampalam A. Gardiner Mw, Colombo and will be available islandwide soon.

AmEx credit card members also have the flexibility of adding their CEB monthly bill payments to the Automatic Bill Settlement facility which will be available shortly.

4 corporates top sustainability reporting

Four companies made headlines in winning the prestigious ACCA Sri Lanka Sustainability Reporting Awards 2007 at a ceremony presided by Export Development Minister Professor G.L. Peiris recently. Holcim Lanka won in the large scale category while Union Assurance emerged the winner in the medium scale category.  Two commendation awards were presented to Ceylon Tobacco Company for its continuous and consistent focus on sustainability, and Sampath Bank for innovative projects clearly integrating sustainability principles. 

The panel of judges comprising Consultant Franklyn G Amarasinghe, CEO Fitch Ratings Lanka Chanaka Wickramasuriya and Financial Market Specialist IFC-SEDF Sri Lanka Maldives World Bank Group Deva de Silva judged the contenders on established reporting criteria implemented by ACCA UK and based on defined GRI (Global Reporting Initiative) guidelines. 

 Holcim Lanka's Annual Review and Sustainability Report detailed a comprehensive description of the organisation's commitment to sustainable development, its impacts and activities including GRI guidelines, and posted key performance indicators accompanied by measured results and external benchmarks, stakeholder requirements and integration of these into business plans and described the governance structure for sustainability with definitions of roles and responsibilities.

 The medium scale category winner Union Assurance was one of the few reports to have external assurance, while also providing a checklist for compliance with GRI guidelines and emphasised on how customer requirements are integrated into product design. 

Sampath Bank which won a commendation for innovative projects integrating sustainability principles, described structures for evaluating environmental and social impacts of financed projects and explained initiatives taken to integrate sustainability concepts into internal processes and community projects.Another report that had external verification for process and implementation and posted KPIs which were aligned to GRI guidelines-CTC, won a commendation for continuous and consistent focus on sustainability, and also described the social reporting deliverables dashboard.

Page writes history

Cargills (Ceylon) Ltd., Chief Executive Officer Ranjith Page was honoured with the 'Business Leader of the Year' (Large Scale Organisation) Gold Award at the CIMA Janashakthi Pinnacle awards held at the Cinnamon Grand on Wednesday .   Page will receive a scholarship to the Annual Programme on "The Job of the Chief Executive" at the Singapore Institute of Management, Singapore.

The CIMA Janashakthi Pinacle Awards celebrate business excellence, leadership, management and team work at the highest standards. They also reward excellence in professionalism among the cream of Sri Lanka's business community.

Nobel Prize Co-Winner Prof. Mohan Munasinghe was the Chief Guest. He was joined by a host of distinguished invitees from the financial, accounting and corporate world. Janashakthi Insurance Company Ltd, Chairman W.T. Ellawala was Guest of Honour.

Janashakthi has partnered CIMA with this awards scheme since its inception and has sponsored it for the fifth consecutive year.

 Lanka Transformers Group of Companies Chief Financial Officer Ravindra Pitigalage triumphed as the CFO of the Year (Large Scale Organisation).

The Gold Award for the Young CIMA Star of the Year was awarded to Textprint Lanka (Pvt) Ltd. General Manager Asanka Wimalaratne.

 Hemas Manufacturing (Pvt) Ltd Management Accountant Dayan Gunasekera took home the Silver Award in this category while Sampath Bank Ltd Asset and Liability Management Officer Himashi De Silva won the Bronze Award in this category. Three Merit Awards went to Kasuni Silva, Fadhil Jiffrey, and Malika Perera.                         

The CIMA Business Manager of the Year Gold Award went to HNB Securities Ltd. CEO G. Ramanan. The winners of The Young CIMA Star, Business Manager of the Year and Chief Financial Officer of the Year will receive a scholarship to a two-week executive programme at the Indian Institute of Management, Bangalore.

The Gold Award for the Management Team of the Year was awarded to Lanka Bell (Pvt) Ltd., while the Merit Award went to Amba Research Lanka (Pvt).   

Prof. Mohan Munasinghe said, "The high calibre of award winners shows that there is no dearth of talent in Sri Lanka which should be a cause for both pride and optimism as we face the challenges of the 21st century. In particular, addressing issues like sustainable development, poverty alleviation and climate change will require us to focus on not only the economic, but also the social and environmental dimensions. The business sector has a critical and constructive role to play, in collaboration with government and civil society."

Ellawala said, "The CIMA Janashakthi Pinnacle Awards were created five years ago to recognise and facilitate the accomplishment of business leadership and financial professionalism; to recognise talent, skills; to focus on ambition and the determination to achieve.

Our continuing association with the Pinnacle Awards demonstrate our commitment to encourage these attributes in local business."

The judges panel comprised Trevine Fernandopulle, Ravi Peiris, Richard Jurienz, Rohini Nanayakkara and Dr.Uditha Liyange.

Top MBAs at ACHE

Start off your Academic Career with one of the World's Best MBA programmes-at ACHE. The American College of Higher Education (ACHE), established in 1995 has grown to be one of the finest and most sought after educational institutes in Sri Lanka.

ACHE is strategically located in Dehiwala, just outside Colombo city limits, ensuring accessibility and an environment conducive to learning.

ACHE has five other branch campuses-located in Kandy, Galle, Negombo, Matara and Kurunegala which specialize in providing an American style education.

ACHE is committed towards providing students with excellent academic as well as personal development.

ACHE is offering students the privilege of starting one of the world's best MBA programmes offered from the North Dakota State University, USA (NDSU) which was ranked 4th among the US public colleges and universities by Consumer Digest magazine USA in June 2004.  NDSU is also accredited by the North Central Association of Colleges and Schools and has an enrolment of more than 12,500 students.

From the time it was established, ACHE has been involved in many university transfer programmes where students are provided the opportunity to study for the first two years in Sri Lanka and later transfer to the USA to complete their majors. By following Associate Degree programmes, students can study for the first two years in Sri Lanka before transferring to the USA.

"We have also started our Bachelors Degree programmes after which we felt the need to offer our students a real American accredited MBA programme. The MBA programme the university currently conducts with NDSU offers students the ability to study for the first year of their course work and specialization part in Sri Lanka and in the second year they can transfer to the NDSU in order to study for the practical component of the programme.

The Master of Business Administration programme at NDSU is a non-thesis, professional programme structured to serve qualified students with undergraduate degrees in a variety of fields. 

The programme is designed to provide students with an effective set of analytical skills, a broad view of the way in which organizations work and an understanding of the functional areas of business.

The NDSU programme takes a generalist approach to graduate business education while providing a variety of electives to give the student the opportunity to pursue a particular area of interest in business or related disciplines. NDSU business faculty uses a variety of teaching methods such as case studies, group and individual projects, field research, computer applications, class discussions and lecture, through which the student is able to acquire and improve problem-solving and communication skills which can be effectively applied to real life business situations.

There are many special features of this MBA programme which includes the American exposure and know-how students will receive. In addition to this the NDSU MBA programme is accredited by the AACSB, which has currently accredited as few as 15% of the best business schools in the world. This is also the first time in Sri Lanka that students are offered the opportunity to study for an American accredited MBA at an affordable price in which they only have to spend a nominal charge to complete this degree programme. Students who transfer to NDSU will also be offered within 4,000 to 6,500 scholarships depending on their GPA and GMAT scores. Therefore if students work hard enough 69% of their scholarships will be guaranteed. Students who complete their MBA will also have the opportunity to work for an additional year depending on the arrangements they have made in Sri Lanka. Students who are unable to leave the country have the ability to follow the fast track programme offered at ACHE, which allows 9 months in Sri Lanka and 9 months study in the USA in order to complete their MBA programme.

Students of NDSU are provided with internships and practical training in USA prior to conferring of their MBA degree.

Over 150 blue-chip companies visit the NDSU website for various recruitments, therefore students who have performed well have the opportunity to receive their job placements from the university itself.

ACHE is an academic school and encourages its students to reach their fullest potential, whilst training them to compete with students from the USA.

"Most of our students have been eligible for various scholarships due to their exceptional performance levels. ACHE students are offered the best of facilities which include a library, virtual library, computer labs, Chemistry, Physics and Biology labs, classrooms and other recreational facilities such as a cafeteria, student lounge with pool table and basketball court. 

In addition to this we also offer students loan facilities.

All this and more are offered to students in a multinational and multicultural study environment where quality education is ACHE's  motto." The MBA programme will start on May 7, 2008.

To varsity with O/Ls

Monash College Sri Lanka (MCSL) has been operating in Sri Lanka for just over a year now. Their first graduating students have already left for 2nd year university studies in Monash in Australia and Malaysia. MCSL is a valuable division of Monash University, one of Australia's highly ranked universities.

MCSL Director-Enrolment Management Annette Delaney said, "We provide undergraduate diploma and university foundation year programmes at MCSL.  The MCSL options bridge the gap between the local students' current qualification and the academic qualification required by Monash University Melbourne."

The Monash University Foundation Year (MUFY) offered in Sri Lanka is recognised by Australian universities and provides an academic bridge into any degree.  Students can start the MUFY programme with O/L results, they don't have to wait for A/L results and they don't need to feel discouraged by disappointing A levels results, they still have options to get into the Australian university of choice.

Students can join Monash programmes throughout the year in Sri Lanka and could start as soon as late as this month (April).

She also said: "The MUFY programme is a full time accredited programme that meets the entry requirement at any university in Australia, especially top ranking universities.  Students can choose their career path in Business, Engineering, Information Technology, Law, Medicine and Health Science. The undergraduate Diploma programmes are also popular and provide entry to at least 50 degrees in Business, Engineering, Information technology, Arts and Health Science.

MCSL undergraduate diploma programmes lead to direct entry to 2nd year of Melbourne University, Malaysia or South Africa on successful completion. Students are equipped with the skills and knowledge to be competitive in the University. In fact our research shows that students entering university after starting at Monash College generally obtain better results.  Monash University is ranked in the top 5 in Australia and top 40 in the world and our foundation programmes are the guaranteed qualification necessary for entry into Monash University.

We work with schools and education experts by providing seminars, career guidance and information programmes to inform the local community about opportunities available in Sri Lanka.  Career path decisions of the students in Sri Lanka are often influenced by parents and other family members. In Australian schools a lot of the guidance is provided from within the career guidance unit of secondary schools.

 Students and parents start making decisions about their career and tertiary education options during their Ordinary Level year. Parents and students in Sri Lanka are eager for information about their career choice.

There are often limited careers teachers in schools locally to direct questions to and who have enough information regarding specific universities for the students.

MUFY in Sri Lanka Programme Director Alan Robertson said that the global trend by universities is to design and deliver quality university foundation programmes to meet the transition difficulties often faced by international students and to prepare them for greater success at the best universities around the world.

To be globally competitive young people require more than a paper qualification. They need to also possess employability skills and students are trained to work in teams, to work independently, to solve problems, to think creatively and innovatively and also to use their initiative. Employers are looking for candidates to recruit to ensure they are globally competitive. Monash graduates obtain some of the best jobs in the world with highly paid entry level salaries and find they can work anywhere in the world after graduation.

"I'm Monash College Sri Lanka's Business Head. My students are developing a range of skills including independence as learners, self-motivation and problem solving skills by studying in an academically challenging environment.  Students in my classes are challenged to participate and develop a range of skills while beginning their Monash educational journey, while still living with their families here."

MCSL Academic Dean Dr. Upali Mampitiya said the curriculum is provided by the Melbourne Australia Faculty, exams are sent to us by the faculty and results are moderated by the same faculty in Melbourne. The outcomes for success are exactly the same as that of students studying in Melbourne. In fact, if a student was in week 5 here in Sri Lanka and flew over to Melbourne for week 6, there would be no gaps as we have a clear curriculum to deliver.  You could say it's the real thing no matter where it is delivered. To support the curriculum our students have direct access to Monash's online libraries and this provides them with thousands of resources, all of this while sitting at a desk in Sri Lanka.

Prospective students and parents can obtain further information by contacting one of the enrolment managers at Monash College Sri Lanka or by visiting at R. A. De Mel Mawatha, Colombo.

Inflation, rupee dip hit Singer

A determination to believe in the Sri Lankan dream despite present market conditions saw Singer (Sri Lanka) invest for the future, according to the review of its financial results for 2007.

The Company Gross Profit of Rs 4,887 million for 2007 registered a 13% increase over the previous year and Company Revenue grew by 12%. However macro-economic factors depleted Net Profit of Rs 310.6 million which was 27.4% lower than the previous year.

Business growth saw investment in human resource (an increase of nearly 10%) and infrastructure improvement by way of renovation and expansion of the sales distribution network.   Macro-economic factors which hindered growth included double digit inflation and a continuingly depreciating rupee, increase in fuel costs and import tariffs, high interest rates and the unstable security situation (which in particular meant that many of the markets in the North and East could not perform to full potential). 

Despite a lower net profit than the previous year, the Company made several strategic gains. The masterstroke was the clinching of the coveted national distributorship for Samsung, the leading global electronics brand. Another enviable gain was the 'acquisition' of Hayleys' consumer products channel which underpinned progression towards a comprehensive expansion of the Company's retail presence throughout the island. Similarly the introduction of the Nokia sales agency added to brand stature.

Says Singer (Sri Lanka) Chairman Hemaka Amarasuriya: 'Our aim in the last financial year was to retain the Company's position as a national retailing icon with consumer-centricity as our focal point.' Indeed with a multi-brand strategy encompassing global names such as Samsung Whirlpool, Philips, Hitachi, Moulinex, Rowenta, Panasonic, Nokia, Toshiba and more, Singer serves a customer base of over four million households.  

Focus also shifted in the year under review from brand and category management to channel management. The company built on the strengths of its retail channels-Singer Plus, Singer Mega, Sisil World and Modern Homes along with trade and institutional channels.

In 2007, for the first time Singer Mega achieved sales of over Rs one billion, a 32% increase over the previous year. Five of the nine Singer Mega stores achieved sales of over Rs 100 million. Singer Mega is a unique Singer retail channel by way of department stores offering the Company's products as well as products and services of other leading brands inviting the customer to an exceptional shopping experience of comfort and convenience. Modern Homes, the specialized furniture retail arm of Singer offering both local and imported goods showed a 23% increase in sales during the year under review. Singer Finance registered a Rs. 19 million net profit despite increase in tax rate from 15% to 35%. Singer Finance is a Central Bank registered finance company which offers hire purchase facilities to employees of selected companies to enable them to buy consumer durables, hire purchase and lease finance for the purchase of private and commercial vehicles and also accepts deposits.

 Together with the Company's multi-brand strategy, Singer Mega, Modern Homes and Singer Finance have changed the face of Singer for millions of households in Sri Lanka, where once the Company represented the sewing machine, it is now the retailer who cares enough to offer an extensive range of durable goods at affordable prices and so offer the Sri Lankan citizen a more comfortable living.

Sanasa enjoys 50% advances  growth

Sanasa Development Bank Ltd (SDBL) performed well in 2007, recording a pre-tax profit of Rs.161 million compared to Rs.155 million last year.  Post-tax profit was Rs. 94.9 million as against Rs.75.6 million in 2006.  Provision of VAT on financial services for 2007 was Rs.35.3 million as against Rs.30.5million in 2006 and the income tax provision for 2007 was Rs.31.1 million against Rs.49 million in 2006, said SDBL General Manger/CEO, Nimal J. B. Mamaduwa. 

Speaking to the The Sunday Leader, Mamaduwa said that the 2007 performance has been impressive with net interest income continuing to be the key contributor towards the bottom line accounting for 43% of total income.  50% growth in advances and efficient management of funding costs enabled SDBL to maintain a healthy spread despite the rising trend in interest rates.

Deposits grew by 36%, notwithstanding the adverse impact of the security and economic situation, market conditions and high interest regime.  Encouragingly, the Bank was able to attain this growth mainly due to increased customer confidence and the "attractiveness of our products" to all customer segments.  "Competition and high interest rates compelled us to offer higher rates to important customers.  Increased presence due to opening of new branches also supported the deposit drive.

Advances grew by an impressive 50% despite prevailing constraints and uncertainties.    A strategic shift towards micro-finance, small projects and group lending to Sanasa Societies helped us reap the desired results.  Lending to a carefully selected segment in the corporate sector also contributed to sustainable growth in profitability and volume."

The Bank continued to maintain a healthy portfolio in 2007. " Our NPA rate was 3.9% (as against 4.3% in 2006), well below industry standard.  This was due to our having maintained a high standard of evaluation and diligent, ongoing risk management, along with effective post-credit management and follow - up, Mamaduwa said.

During 2007, the bank opened 11 new customer centres (6 branches and 5 extension centres).  Three existing extension offices were upgraded to full-fledged branches.  Total number of customer service centres stood at 36 on December 31, 2007.  This expansion is reflected in the increase in expenditure recorded in the year's results.  However, the long - term benefit to the bank will exceed these initial costs.

A unique feature of the year was the opening of three branches in the Eastern Province- at Trincomalee, Batticaloa and Kalmunai.

Another milestone for the bank in 2007 was that SDBL was chosen amongst 641 microfinance providers by Forbes magazine and it was ranked within the top 50 microfinance Institutions (The only MFI provider in Sri Lanka ranked within the first 50 is SDBL).

Bank will obtain regulatory approval to open 14 new branches in 2008 with a presence in more rural locations being the focus of branch activity in 2008.SDBL's core capital (Tier I) increased steadily during the year due to retained profits and an equity infusion by Orient Global, Singapore, which contributed up to Rs. 71 million (plus assurances of a further invest of up to 15% of issued capital, or Rs. 225 million).

Tier I & Tier II capital shows an improved position registering 13.40% and 13.48% respectively as against 11.9% and 11.4% in Tier I and Tier II as at December 31, 2006.  Shareholders' fund has shown a steady growth of 29% whilst the balance sheet has registered a healthy 44.5% growth. "Several international co-operative organizations that rallied round us after the tsunami disaster continued to provide us with valuable support in 2007.  Among these were the Canadian Co-operative Association, Canadian International Development Agency, Development International Desjardins and the World Council of Credit Unions.

"Supporting the community continues to be our key CSR objective.  SDBL with its strong links to the co-operative movement has identified the development of this concept as a priority. In 2007, a programme for assisting 6,000 youth under a national programme was conducted by the Bank at the Sugathadasa stadium under the leadership of Sanasa Movement Leader Dr. P. A. Kiriwandeniya.

"Our strategies for the future will be derived, as always, from our vision, mission and values.  SDBL will continue to be a leader and active partner in the development of the nation and its rural economy.  Our strengths as a Group will provide support and encouragement for everyone engaged in these activities.  Our broader network will extend financial services to a bankable community not served by other banks," Mamaduwa concluded.

Allianz enters Life business

Allianz SE Munich, for Asia; the Middle East, and North Africa Division Executive Vice President Heinz Dollberg was in Colombo last week to present his Company's application to Insurance Regulator IBSL (Insurance Board of Sri Lanka) for its local subsidiary Allianz Insurance Lanka to start Life insurance business in Sri Lanka.

Approval of the application enables the setting up of a separate operational entity to manage Life business in Sri Lanka which conforms with proposed IBSL regulations that support the setting up of separate corporate entities to manage Life and Non Life Business. At present, "all" insurance companies in Sri Lanka are composite, handling both Life and General business.

Explaining the Munich-based Insurance conglomerate's decision to venture into the Life arena in Sri Lanka Dollberg said, "Our young Sri Lankan subsidiary is developing wel, and we are satisfied with its progress, premium-wise as well as the bottom line.

 It is not always the case that a barely three year old company can develop this fast. This confirms that we have got the right people."

Allianz Insurance Lanka, the fully owned subsidiary of Allianz SE, recently  recorded a 258% increase in profitability, posting a Profit Before Tax of Rs 53.2 million for 2007.

 "The prevailing non tariff market in Sri Lanka is an interesting one for Allianz. It is not overcrowded. Also, Sri Lanka has a favourable environment for foreign investment because foreigners are allowed 100% ownership of businesses unlike in several other countries in the region. We intend developing the market. We will observe the rules of the market and want to be treated like other local market insurers.

We will be growing the business in Sri Lanka, and will be building a direct sales force, since one can't rely only on brokers to sell Life business, so this will mean more people and more branches  soon, and we will be going into other areas of Sri Lanka to grow the business."

Speaking on Allianz SE's business strategy, Dollberg said, "When we enter a new market, our usual strategy has been to start up with General business, as it is much easier to learn the conditions in the market.  It is usually not a question of whether a market is big or small, but whether it is profitable. We not only want to sell the right products, but also look at the profitability of the Company, and take particular care to ensure that the interests of our shareholders are met. We are concentrating here on corporate business. We go after other companies that insure with Allianz around the world. These are not only German, but are US, UK,  European and Asian businesses as well. Most of the large corporates worldwide, insure with Allianz."

According to him the importance of insurance cannot be overemphasised. "People are usually of the opinion that insurance benefits only the insurer, but this is not so. Currently Life insurance has a bigger potential because it has a direct impact on people's lives.

 Life insurance is also important for the security of a government and for the economic health of the country. Money invested in insurance is usually reinvested in Government bonds and similar instruments in the development of the economy. All insurance is important. Take for instance, the person who is building a house and needs a loan. Insurance covers him if a disaster strikes. The disaster of the tsunami could have been mitigated if more people had taken insurance, and more policies sold. This means closer involvement in the community. If one carried out one's business right, it is usually a win win situation for both the insurer as well as for the insured."

Dollberg has decades of experience in diverse areas of Life and Non Life business, having served within the Allianz group throughout his career. He is experienced in setting up Allianz operational entities in countries around the world, especially in the Asia Pacific, with responsibility for mergers & acquisitions. Earlier, as Regional Director, he was responsible for the operations of  Allianz entities in Hong Kong, Thailand, Korea, Taiwan, Mainland China and Australia.

At present, Allianz commands about 2% of the General insurance business in Sri Lanka, but intends to expand market share to 10% in the next 10 years. "Allianz is known in Germany by 99.9% of the people. We are confident that we will achieve the same recognition in Sri Lanka as well,"  said Dollberg.

AAI, value driven insurer

Asian Alliance Insurance (AAI) Deputy Chairman Paul Ratnayeke applauded the Company for marking yet another exceptionally successful year at the company's AGM after its 2007 results were released.

AAI recorded a profit before tax of Rs. 114 mn. a 63% year on year (YoY) growth. Ratnayeke assured shareholders that the Company will do its utmost to provide shareholder value as discussed at the previous year's AGM.

For the future of the Company, Chief Executive Officer Ramal G. Jasinghe enlightened shareholders that expectations are promising, supported by prudent management of the Company's core operations.

The Company grew its investments by exploiting the prevailing investment rate environment, with the yield increasing to an average of 14.5% with an increase to Rs. 1.5 bn.   The Company met the required Solvency Margin of Non Life with a Solvency Ratio of 4.10 and of Life with a Solvency Ratio of 3.15 based on Solvency rules applicable.

The conservative management approach adopted over the last three years succeeded in erasing accumulated losses and increasing shareholder equity to Rs. 268 mn. It was further expressed that the Company endeavours to be the most value driven insurance company and a force to be reckoned within the insurance industry in the near future.

Sinhaputhra raises  Rs. 167 mn.

Sinhaputhra Finance Ltd AGM Finance & Planning Ms. Chithrani Abeyratne disclosed that the recent preference share issue fetched a sum of Rs. 167 million, boosting the companys's Tier 1 Capital.

This infusion she explained further strengthened the capital adequacy of Sinhaputhra which is one of the companies that has already surpassed the Rs. 200 million minimum core capital requirement for registered finance companies (RFCs).  She said Sinhaputhra is now showing 25% in excess of the requirement.

Capital adequacy is used as a key ratio to limit exposures of financial institution thus reducing the risks to investors.  Conversely, a stronger capital base also allows for greater volumes of investment in interest earning assets such as leases and loans as well as leverage to invest in fixed assets.

A ratio of 1 to 10 of Capital to Risk Assets she explained is used by the Central Bank to reduce an RFC's exposure to build up risk assets.  She said that Fixed Assets, Leases & Loans and such portfolios register a 100% risk whilst deposits with commercial banks cause a 20% risk and Treasury bill Investment & Cash in Hand have a 0% risk. Sinhaputhra manages its assets and growth with these ratios in mind.  A perfect blend of these assets ensures and sets course for a planned growth.

The recent Non Redeemable, Non Cumulative Preference Share Issue was a positive impact and supported the impact of a Rs. 150 million investment on the company's new headquarters at Hill Street, Kandy.

The company's Director  Board are: Ravana Wijeyeratne (Chairman/Managing Director), Mrs. Chintha Balalle,  Parakrama Keppetipola,  K.H.K. Wijayadasa, Mohan Weerakoon, Dr. Cuda Wijeyeratne and Sarath Imbuldeniya.

Promoting boat industry

The Boat Building Technology Institute in association with the EDB proposes to organize the first ever Boat Show in Sri Lanka at the Sirimavo Bandaranaike Convention Centre from June 8 -10, 2008.

The Exhibition will consist of 150 trade stalls. EDB has invited buyers delegation from Maldives, India, Bangladesh, Norway, Germany, France, Italy and countries in the Middle East to visit "Boat Show."

 The primary aim of the boat show is to introduce this trade to the local market and create a much more sophisticated target audience and to create awareness among foreign importers of the capabilities of the Sri Lankan boat building industry to attract joint ventures.

Stock market announcements

Vallibel Power Erathna Ltd., has declared a tax free interim dividend of 30 cents a share. Excluding dividend (XD) date is April 22 and payment date May 5.

Asiri Hospitals Ltd., has declared an interim dividend of 75 cents per share for the financial year 2007/08. XD date is April 23, 2008 and payment date May 6.

UA relocates Negombo Branch

Union Assurance, one of the biggest players in the insurance field relocated its Negombo branch to St. Joseph Street recently.

The new branch which is in the sprawling business hub of Negombo, caters to both Life & General insurance needs for existing and potential customers of Union Assurance (UA) as well as providing easy access to a host of services offered by UA to Negombo customers.

UA Senior Manager Marketing Dharshana Amarasinghe said: "UA relocated to a new strategic location and is in a more conducive environment to serve customers better and efficiently."

 The relocated Branch is conveniently situated with ample parking and convenience to its customers. UA is proud to have been helping to meet the financial needs of our island for more than 21 years and is committed to keep on continuously improving our service and facilities."

"The layout of the new branch is designed to help facilitate service needs and transactions for our customers," said Amarasinghe. "UA sales and marketing culture strive to increase efficiency and ensure customers are able to easily take care of their insurance needs, both in Life and General."UA is powered by the corporate might of John Keells Holdings PLC  and Carson Cumberbatch.

Com Bank, 10th time top bank

For a record 10th year running, Commercial Bank of Ceylon PLC has been adjudged Sri Lanka's 'Best Bank' by one of the world's most respected financial publications, Global Finance USA.

Commercial Bank has now won this award 10 out of the 15 times that Global Finance has published the results of its annual survey of Best Emerging Market Banks.

The report covers best banks in Asia, the Middle East, Africa, Latin America and Central and Eastern Europe. Global Finance's evaluation showed that the Commercial Bank continued to retain its position of the largest private sector bank in terms of assets and profits in 2007,

had the  highest market capitalization and best track record of dividends in the Banking and Financial Sector.

The Bank's market capitalization as at December 2007 was Rs 34.2 billion, about 4% of the total market capitalization of the Colombo Bourse.

Commercial Bank Managing Director Amitha Gooneratne said: "We are pleased at being ranked Sri Lanka's Best Bank for the tenth consecutive year. With this, Commercial Bank has established a level of consistency of performance that is unique in the region."

Global Finance's evaluation of the Bank's performance over the past year included asset growth, profitability, strategic relationships, customer service, competitive pricing and innovative products, led its editors, with

input from industry analysts, corporate executives and banking consultants to select Commercial Bank as the best among Sri Lankan banks in 2007.

Among the other indicators looked at were market share, return on equity and earnings, key capabilities and services offered, geographical range, recent or planned significant developments such as new launches, customer service endorsements and deployment of leading-edge technology.

The Bank's key capabilities and services in the period reviewed included the expansion of the e-Exchange franchise, Model Branch concept and the launch of PAYMASTER-Total Payment Solution.

Its significant recent developments included re-affirmation of its credit rating of AA+(lka), strengthening of its Risk Management Unit and Anti Money Laundering Unit and the issue of instant debit cards to accountholders.

Other banks from the region to receive the Global Finance Best Bank award included HSBC, HDFC Bank-India, Maybank - Malaysia, Habib Bank- Pakistan, Shinhan Bank-South Korea, Chinatrust Commercial Bank-Taiwan and Janata Bank-Bangladesh.

The best banks in 20 countries in Asia were identified during the survey.

Commercial Bank Group saw group pre-tax profits soar 33.8% to Rs 6.791 billion in the year ended 2007. Post-tax profits rose to Rs. 4.152 billion, while total deposits of the group rose to Rs 183 billion, a 16.3% growth.