Apparel exports to EU

GSP + gain only $ 90 mn., in $ 3.3 bn., industry

In the backdrop to the possibility of Sri Lanka losing the GSP + duty free facility for exports to the EU region due to its allegedly bad human rights record, a top garment exporter however told reporters on Thursday  that the monetary gain to the garment industry by virtue of this facility was only US$ 90 million.

Ashroff Omar, CEO Brandix Lanka Ltd., one of the country's top two apparel exporting firms said that apparel exports to the EU region last year raked in US$ 1.5 billion. Of this amount, around US$ 900-1,000 million worth of apparel exports were made under the GSP + duty free facility.

 He said that the EU's duty levy for apparel imports is 10%. As such the gain to the industry because of the GSP + facility last year was only US$ 90 million.

 Apparel exports are Sri Lanka's number one foreign exchange earner and brought in US$ 3.3 billion to the country last year, according to the Central Bank. The EU region is the second largest market after the USA for those products, with the former taking in 45% of total garment exports last year, and the USA 50%.

GSP+ is up for a further three year extension from next year. "Assuming that garment exports to the EU region are constant, in that there is no growth next year over last year, then the industry will have to increase its productivity, or the EU buyer will have to be willing to pay more to match that critical US$ 90 million figure, in the event we lose the GSP + concession," Omar told The Sunday Leader.

He said that garment exports to the EU region had been growing in the first two months of this year, but exports to the USA had received a setback due to that country being in recession.

Sri Lanka has been enjoying the GSP + facility since July 2005. This facility comes up for renewal for another three years beginning from next year. However, the EU will totally scrap the GSP + programme in 2015. "We will know where we stand vis-…-vis the renewal of the GSP + facility for a further three years by December 15," Ashroff said.

In the worst case scenario, if Sri Lanka loses the GSP + facility, the silver lining is the appreciating Chinese Yuan, industry sources said. China is one of Sri Lanka's biggest competitors in the garments trade. However, an appreciating Yuan makes Chinese exports uncompetitive.

 The Yuan has increased rapidly, from 7.7 Yuan to the US Dollar, to be trading under 7 Yuan in recent times. Ashroff was however confident that the GSP + facility would be renewed for another three years upon its expiry by the year end. He however didn't give reporters the reason for this confidence.

Ashroff however told The Sunday Leader that what was important as a whole in order to sustain the GSP + facility is for the country to play its cards right. Bangladesh is a military dictatorship, but it enjoys duty free export facilities for its garments exports to the EU region by virtue of it being classified as a least developed country.

Similarly, Columbia, which like Sri Lanka also has a terrorist problem however enjoys the GSP + facility in their exports to the EU region, he said.

Ashroff was of the opinion that Sri Lanka could double its garment exports to the EU region if the GSP + facility continued for another three years. Without it, it would be difficult to meet those milestones, he said.

It's not only garments that have benefited from GSP +, but also fish exports, said Ashroff. Fish exports to the EU region increased 50% year on year last year, however from a lower base than compared with garments, he said.

Sri Lanka's total exports to the EU region last year was US$ 2.5 billion, added Ashroff. The GSP + facility embraces some 7,000 items, including garments, fish, shoes and machinery products, with those exports enjoying duty free access to the EU market.

He further said that though several top manufacturers (including Brandix) has set-up offshore facilities, still, on an overall basis, garment exports originating from Sri Lanka contributed to over 80% of industry turnover.

Rice shortages continue

Rice shortages continued for the second week running after the government imposed price controls on certain popular varieties in order to check prices, with some supermarkets having had last got their stocks prior to the Avurudhu, ie a fortnight ago, with no replenishments in sight.

Those stores were bereft of the popular and fast moving Samba and white rice, in addition to Nadu and red rice, the four rice varieties for which the government imposed price controls soon after the Avurudhu.

Their price controlled retail prices were: A kg., of Samba (Rs. 70); a kg., each of red raw rice and Nadu (Rs. 65) and white rice (Rs. 55). However, two popular super markets at Mt. Lavinia junction, Keells and Cargills, were bereft of any of those varieties, with what was available for sale in their outlets being the more expensive rice varieties such as Basmathi which are not subjected to any price controls, when The Sunday Leader checked out on Friday.

This Cargills outlet used to be selling around 5,000 kgs., of rice weekly under normal circumstances. But now had only the more expensive Basmathi rice to sell, having had last got their stock of those cheaper varieties on Tuesday, which had since been exhausted.

Likewise the Keells outlet, which last got their stock of the cheaper varieties two weeks ago on April 10, had only the more expensive rice that were not subjected to any price controls, for sale.

These were available in 5 and 10 kg., packs, with the customer having no option other than to buy the whole packets, and not in loose form-eg., say, not in quantities of a minimum of 1 kg., if he so wished to.

"There is a rice shortage," a Keells official who did not want to be named said. He was unable to say when this crisis would be resolved. It was the same story at Arpico Super Centre, Dehiwela, which, like Keells, last got their stock of rice before the Avurudhu.

This store which was selling around 5,000 kg., of rice weekly, were down to selling their more expensive 5 and 10 kg., packs of rice, having had exhausted their "loose" stocks nearly two weeks ago, with no fresh supplies in sight.

An Arpico Centre official said that their outlets took a Rs. one million hit by selling rice at government controlled prices.

However, a wholesale/retail outlet in Dehiwela, unlike those departmental stores, did have rice stocks available.

Lal Perera of Siripura Stores explaining the reason for the availability of rice said that this was because if the stocks were kept hoarded, those would run the risk of getting spoilt.

It's the same story with paddy, Perera said. If paddy gets wet, it runs the risk of getting spoilt and now major rice producing areas such as Polonnaruwa are experiencing rains, he said. That's why rice is now available, but the sellers were taking a hit because of price controls.

Meanwhile, the goverment run Lak Sathosa outlet in Mt. Lavinia which was bereft of any fresh stocks of rice after the Avurudhu, however got 3,000 kg of rice, comprising a mix of Sambha and white rice, on Friday.

Brandix, 1 of 2 M&S suppliers to go "green"

Brandix is only one of two suppliers of Marks & Spencer (M&S) UK's, that has established a "green" factory.

 Its other "green" supplier is located in Northern Wales.

 The "green converted" factory (converted at a cost of US$ 2.5 million) in Sri Lanka is located at Seeduwa and began operations as a green factory on January 25.

M&S imports some Great Britain Pounds (GBP) 300 million worth of garments annually from Sri Lanka.

M&S runs some 600 departmental stores in the UK and worldwide, retailing food and garments and makes an annual turnover of some  GBP eight billion, of which the contribution made by its garments sector is 48%.

"Sri Lanka, and Brandix in particular is an important partner in M&S' operations," Paschal Little, M&S' Technology Head (Women's Wear & Lingerie), told reporters on Thursday.

M&S has some hundreds of suppliers worldwide, Brandix CEO Ashroff Omar who also participated at this briefing said.

Little however avoided answering questions pertaining to the GSP + issue, which allows Sri Lanka to export garments to the EU region on a duty free basis, but which future is in doubt, because of the country's alleged, parlous, human rights record.

Little said that M&S plans to be Carbon neutral by 2012, but left no such milestones to its suppliers. He however said that in the UK, especially in the last 12 months, consumers have become increasingly conscious of sourcing their products from environmentally friendly suppliers.

Another Brandix facility is also making plans to go "green," while M&S has taken the  "green" concept to their suppliers in China, said Little. Brandix directly control some 25 manufacturing facilities in Sri Lanka, providing employment to 25,000.

"The greening process at the Seeduwa factory has helped us to reduce our electricity bill by 45% and water by 60%," said Brandix Director A.J. Johnpillai.

Fingerprint security computer

Abans Group of Companies recently announced the launch of Sri Lanka's first desktop computer featuring Finger Print Security Technology manufactured by LG Electronics-the leader in consumer electronics and home appliances around the world.

Until now, the option of finger print recognition was available only on high-end, expensive laptops. LG has now made this technology accessible to a wider audience at an affordable price. LG Desktop computers are built to various certifications and maintain high manufacturing standards.

With the growing necessity of data security, the introduction of the LG Finger Print Security Desktop Computer (LGFPSDC) enables consumers to safeguard important and confidential data in a secure device, unique in design and performance. The computer ensures enhanced security features such as file protection, data security as well as secure and easy web transactions.

With Finger Print Recognition technology, the need to remember complicated passwords becomes a thing of the past. The biometric security feature allows login access only to pre-identified users through their finger prints, thus providing higher levels of security.

Abans offers consumers the option of buying the LGFPSDC built according to their own configuration or the standard computer featuring Intel Core 2 Duo 2.2Ghz Processor, Finger Print Scanner, 1GB DDR11 Memory, 320GB SATA Hard Disk, DVD Rewriter, 16 in 1 Card Reader, LG Multimedia Keyboard, LG Optical Mouse and LG F Engine 15" LCD Monitor preinstalled with Windows Vista Starter Edition.

Abans also offers Enterprise and Corporate customers the LG FPSDC built according to their individual specifications. The computer is backed by Abans onsite service warranty available at any location in Sri Lanka.

Holland, among top 10 donors

Fourteen per cent of Dutch international development assistance are channelled through Dutch NGOs, a researcher said.

The Dutch government is amongst the top 10 donor agencies in Sri Lanka, Dr. Udan Fernando, who did his PhD on the relationship between Dutch donors and Sri Lanka in 2007, delivering a lecture at the SLAAS Auditorium on Wednesday  said. Dutch NGO funding however came before bilateral funding, he said.

Fernando said that in the pre-1977 era there were four main Dutch NGOs-NOVIB, ICCO, HIVOS and CORDAID, primarily funded by the Dutch government.

 ICCO and CORDAID were of a Christian bent and worked mainly with the YMCA, YWCA, churches and missionary organisations. They were active in the North, and built many vocational institutes there. Part of the Dutch government's development budget was channelled to these two organizations.

 NOVIB which joined the Dutch government assistance programme in 1968, represented the secular category. And in 1977, the fourth member HIVOS, which formed the humanitarian pillar joined in.

1980s were a boom period for local NGOs, with easy money coming from Holland. Sanasa was funded by HIVOS, which is still continuing with this activity. At one time, NOVIB's funding of Sarvodaya, was bigger than some of the ministry budgets in Sri Lanka, said Fernando.

 But after 1994 and beyond, those Dutch NGOs, at the instigation of the Dutch government, mainly concentrated on private sector development.

And in 1999, a US NGO called Foster Parents Plan also began getting money from the Dutch government. And in 2000, the Dutch government introduced a 6th member.

"So the clout of the first four members became weaker and weaker," Fernando said. In 2003 NOVIB suffered a 30% aid cut. NOVIB which originally funded Sarvodaya, has now confined its funding only to SEEDS, a Sarvodaya subsidiary. With the advent of the PA government in 1994, new NGOs, mainly funded by the Norwegian and German governments and the World Bank came into being. Among those were the NPC, CPA, PAFFREL and the FMM.

The 2002 ceasefire however, once again brought in a massive influx of Dutch aid. But currently Dutch funding through the NGO network is mainly confined to peace building, said Fernando.

High interest rate regime to remain

With raging inflation persisting in the economy, high interest rates held their positions at Wednesday's  Treasury bill auction, with the annualised weighted average yield (WAY) for bills of 91day tenure falling marginally by only three basis points (bps) to 18.67% over the WAY commanded at the previous week's auction due to controlled "selling" by the Central Bank (CB), while  yields on 182 day and 364 day Treasury bills stagnated at 18.97% and 19.01% respectively.

"The current high interest rate regime will remain for sometime, it won't go down," a manager of a leading finance company told The Sunday Leader. Rates at these high levels will however stagnate, it won't go up further, he added.

Meanwhile, the CB received Rs. 15,633 million worth of bids for Treasury bills of the short, 91day tenure, of which only a nominal amount of Rs. 451 million (only 2.9% of the bids received) was reissued to the market, in an attempt to control high rates.

Meanwhile, for T. bills of 182 day tenure, the total amount of bids received was Rs. 4,920 million; of which Rs. 1,390 million was re-issued to the market, while in the case of bills of 364 day tenure, the total number of bids received was Rs. 5,736 million, of which Rs. 1,688 million was re-issued.

This auction was for the re-issue of Rs. 11,000 million worth of maturing T. bills in total, of which Rs. 3,529 million was accepted from the market, while the balance amount was retired.

Nahil buys more

The Colombo Stock Market took a hit on Friday as a result of the share value of Dialog, the bourse's single biggest capitalized stock, falling by 50 cents (over Thursday) to close the week at Rs. 16.25, market sources said.

"A 50 cents drop in the share value of Dialog would hit the benchmark ASPI by 15 points and the more sensitive MPI by 24 points," they said.

As a result, the ASPI fell by a steep 25.86 points and the MPI by 33.49 points on Friday, over that of Thursday's close.

However, investor interest in the bourse still remains, they said.

Some 190, 200 shares of Dialog were traded on Friday.

The bourse returned a Rs. 628 million turnover on Friday, with the single biggest contribution coming from Hotel Services, the controlling company of Ceylon Continental Hotel, which was recently taken over by Nahil Wijesuriya and connected Singaporean parties.

Hotel Services contributed to Rs. 120 million of Friday's turnover, with the buyer believed to have had been Wijesuriya and connected parties, and the seller, U.K. Sharma, an Indian, who recently gave up a controlling stake in the hotel to Wijesuriya and connected parties.

Friday's deals were done at Rs. 138 a share, the mandated price at which Wijesuriya and parties had to make to the rest of the shareholders of Hotel Services, to buy their stakes.

Eagle's CSR, precedes buzzword

According to records, a significant reduction in firecracker related accidents was reported this Avurudhu season.

This has been linked to the awareness amongst the public on lighting firecrackers safely. This year too Eagle conducted its mass media campaign, reminding the public to light crackers with care and is pleased to have contributed to the safety and wellbeing of Sri Lankan society. Hospital authorities also educated the public on the need to practice safety precautions while lighting crackers, which also contributed greatly to the significant reduction.

Eagle has spearheaded its Seasonal Safety Campaign since 1992 and the Company's aim is to educate and create awareness about the dangers of firecrackers when used carelessly. Eagle conducts extensive multimedia and below-the-line communication campaigns during festive seasons. The need for awareness creation of this nature was identified after 41 children sustained injuries and four went blind in the early '90s due to firecracker related accidents. Since the establishment of Eagle's consistent and focused safety campaigns, firecracker accidents in children have reduced to near zero. 

Eagle's primary CSR platforms are Safety & Education which have made distinct contributions to society. Eagle recorded many successes through far-reaching initiatives to reduce accidents, by inculcating safety-awareness on maintaining high safety standards at home, school, work and on the road.

"We have seen our involvement in CSR evolving into sustainable projects, built on the long-term needs of people and the environment, where our team evolves and implements projects that are designed to make a difference to the environment and our nation," said AGM Marketing & Planning Amal Perera.

"CSR is part of the value-system ingrained in our corporate culture and to us; it is an accepted way of life. It goes beyond business objectives to create a continuous impact on society.  Our entire business culture, how we run our business and how we do business revolve on the core concept of social responsibility," said Eagle Managing Director Deepal Sooriyaarachchi. Elaborating further, he said, "Eagle pioneered and practiced CSR long before it became the buzzword it is today. Eagle's CSR initiatives are designed to benefit all stakeholders; employees, customers and society."

Some of the other initiatives implemented under Eagle's Safety CSR Platform are as follows:-

Spreading the Message of Safety : Eagle creates awareness on home-accidents, highlighting day-to-day perils using multimedia campaigns and through 2,400 sales agents-our "Safety Ambassadors" are equipped with "safety tool kits" comprising brochures, CDs and illustrated children's books. They inculcate countrywide safety awareness amongst children, teachers, parents and society at grassroots levels and beyond. Over 200,000 households have been reached and the number grows daily.

Keeping one million pilgrims safe:  "Poson Safety" was a concerted campaign launched nearly 15 years ago which involved identifying hazardous bathing areas that dot the Poson pilgrimage route to Anuradhapura, by deploying life saving crews of the National Lifesaving Association, Sri Lanka Army and Police to patrol those spots.  A million pilgrims habitually bathe at these spots during the Poson season, despite the hazards that this may pose. Eagle's prolonged involvement in this project has had tangible results, having saved more than 125 lives over the past 14 years and the project has the distinction of having won a commendation from the International Lifesaving Federation. 

Road Safety : One of Eagle's most successful safety campaigns has been on road safety where the simple gesture of holding up a hand at zebra crossings became generic among anyone crossing the road and commanded respect from vehicle drivers. This has significantly reduced accidents. The company seasonally embarks on outdoor billboard campaigns and below-the-line activities to promote the 'Don't Drink and Drive' initiative.

National Safety Award: The National Safety Award emphasizes safety in the workplace and has over the years, significantly contributed towards raising the bar on safety at the workplace.  Held once in two years, the Award is a benchmark for industrial safety and organisational commitment towards an accident-free workplace and is conducted in collaboration with the Labour Department and the Employees Trust Fund Board.

Ceylinco Life takes on Retirement Planning

Retirement Planning, a relatively under-developed sphere in Sri Lanka, has become the latest area of focus for Life Insurance leader Ceylinco life.

Following the success of its 'Life Insurance Week' programme in February, the company has now announced an initiative to declare a 'Retirement Planning Month'(RPM) to promote retirement planning in the country.

Scheduled to be observed from May 1-31, the 'Retirement Planning Month' will be preceded by mass media campaigns focusing on the need for retirement planning, targeting existing policyholders as well as all working people in general, the company said.

Explaining the reasons for the company's decision to launch this initiative, Ceylinco Life Chief Executive Director R. Renganathan said: "The penetration of retirement planning in Sri Lanka is even lower than that of life insurance, even though the population is ageing. We believe greater public awareness about the need for retirement planning is urgently needed."

During the Retirement Planning Month, nearly 4,000 Ceylinco Life personnel will be deployed islandwide to discuss retirement planning with people from all walks of life.

"The company has developed a new module to conduct need analyses for retirement planning and has set itself the target of completing 400,000 need analyses during the month," Renganathan said.

The company will also distribute leaflets that will help people understand retirement planning and the need for it, conduct street promotions and give every person who obtains a retirement plan in this period a gift.

The initiative will be supported by outdoor banners, pennants and interactions at branch level, across the island.

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.

ABC Insurance records 195% growth

Feeling the pulse of the masses, ABC Insurance is dedicated to fulfilling people's insurance requirements.

 Over 3 years in business, the company has won people hearts by maintaining a Sri Lankan identity. As a 100% Sri Lankan company, and being the youngest in the fraternity of Sri Lankan Insurance, ABC Insurance (ABC) has made an indelible mark in the industry providing General & Life Insurance policies.

Our strength

Our fully-fledged staff comprises over 250 permanent employees and more than 650 field officers. With our branch network covering 12 districts, we are committed to providing a customer-centric service to the masses. Not resting on our laurels, our prime objective is to go from strength to strength, setting up an island wide branch network by 2009. Our strength is our customers numbering over 25,000 in the General & Life insurance segments.

Journeying into over 25 years of business excellence, ABC is synonymous with integrity and honesty, thus the ABC Group of Companies has taken a pivotal role in making a contribution to Sri Lanka's economy.

Social Responsibility

It is a well-known fact that most insurance companies, at the initial stages of business focus on generating revenues targeting urban customers. Fulfilling a much-needed social responsibility, ABC, on the directives of the chairman, has however reached the remote rural area of the country where 72% of the population lives, with a view to providing them with insurance services. In doing so ABC not only fulfils the insurance requirements of the rural masses, but also creates career opportunities for unemployed youth.

Special services

We have introduced special insurance policies exclusively for farmers, peasants, agriculturists, security forces and fisher folk as we believe that they are the lifeblood in the development of our motherland.

Through our unique insurance policies we have provided benefits to the people working in risky fields, thereby securing the future of their dependents. This exemplifies the fact that our vision goes beyond generating mere profits.

Sponsorships

ABC has provided sponsorships for national level sports events as well as cultural programmes. Eg. Providing practical management training for selected  undergraduates of Sabaragamuwa University, contribution to the convention of Motor Traders Society, sponsorship for Sri Lanka Tennis Society sports events and  for the renovation of the Tamil Union Club, and main sponsor for the Miss Sri Lanka Pageant.

Our progress

Our resounding success in business excellence has paved the way for us to go from strength to strength in a fiercely competitive market place. We have proved by action that within a period of 3 years we have achieved phenomenal growth in insurance business. 

Growth rate for 2006-634% in comparison to 2005; Growth rate for 2007-195% in comparison to 2006 (Before auditing) and Growth rate for General Insurance 2008-300%, in comparison to the first quarter of 2007 (Before auditing).

As a whole, we have achieved a195% growth (before auditing). This is a phenomenal growth when compared to other insures.

We are saluting our customers for the continuous support extended for our extraordinary growth in insurance business.

Wayamba launches insurance degrees

In recognition of C.T.A. Schaffter's contribution to insurance in Sri Lanka and Janashakthi Insurance Co Ltd., which he founded 14 years ago, the company's management in collaboration with Wayamba University recently launched an awards scheme in his honour.

"The CTA Schaffter Award" will be awarded annually to the top three students who excel in the B.Sc (Hons) degree programme in Insurance and Valuation at Wayamba University. This new degree programme comes at a time when Sri Lanka needs fully fledged professionals in the spheres of insurance and valuation.

This year the course will cover all aspects of insurance and valuation, and is expected to train about 25 such graduates each year.

The Best Student will receive a Gold Medal and cash award while the second and third best students will receive Silver and Bronze Medals and cash awards respectively.

Munasinghe joins Eureka Board

A consortium of investors led by Prof. Munasinghe,Vice Chair UN Intergovernmental Panel on Climate Change and co-winner of the 2007 Nobel Peace Prize, and Rajan Anandan from the Indian Angel Network (IAN) and the Head of Dell India have bought a minority stake in Eureka Technology Partners (ETP).

ETP is a Managed Services Provider (MSP) with a trans-national business footprint covering Sri Lanka and select countries in Europe, with future plans of covering the Middle East, USA, Europe and the Indian sub-continent.

Eureka intends to provide world class managed services at affordable prices for the international SME market.

An ISO 20000 company, Eureka is one of only a handful of organizations worldwide that has been certified to deliver IT Infrastructure Management services of a global standard. ETP, established in 1996, has been one of Sri Lanka's IT pioneers.

With Munasinghe joining Eureka's board, the company is positioned to develop  "Green" IT Infrastructure practices and offer a wide range of sustainable services and solutions to clients.

"Globally recognized investors and board members give us the necessary credibility to launch our IT Infrastructure Management services in overseas markets," said Eureka CEO Dilendra Wimalasekere.

"Eureka is poised to ride the next wave in offshore services," said Rajan Anandan. "In the '90s we saw software development being offshored. This was followed by BPO services in the early part of this decade.  The third phase of offshoring is Remote Infrastructure Management (RIM)."

"I am glad to see a Sri Lankan company positioned to take advantage of this opportunity." Anandan is investing in Eureka in his personal capacity. He has operating experience in global technology leadership roles and was also a Partner with McKinsey & Company in the USA.

In addition to RIM, Eureka is undertaking a major endeavour to make IT infrastructure ecologically sound. Using a variety of innovative techniques and  technologies (including consolidation, virtualization, bench marking, and power management), Eureka can help clients achieve optimal efficiencies in their IT operations, thereby reducing energy consumption and minimizing environmental impact.

"I was intrigued when Wimalasekere outlined the opportunity to combine our skills and develop a consulting practice that will help global companies implement energy efficient IT Infrastructure," said Prof. Munasinghe who won the Nobel Prize as Vice Chair, UN Intergovernmental Panel on Climate Change (IPCC). "Furthermore, the Munasinghe Institute for Development (MIND) which I head has been a Eureka client for over eight years and the team there has delivered excellent service-for me this was an easy decision to make."

IAN is the first pan-India Angel network with successful entrepreneurs and high profile CEOs interested in investing in early stage businesses across India having potential to create significant value. The investment in Eureka is IAN's first outside India.

Apart from financial investments, Network members look at providing strategic inputs and leveraging their networks to grow investee companies.

ETP, established in 1996, has been one of Sri Lanka's IT pioneers. Today it offers a range of IT services, backed by a team and a service reputation. Eureka is a market leader in IT Infrastructure Management and web development. In 2008, Eureka received ISO 20000 certification.

Conserving the environment

Dialog Telekom PLC recently joined hands with the Central. Environmental Authority (CEA), the Bio-diversity and Elephant Conservation Trust (BECT) and the International Union for the Conservation of Nature & Natural Resources (IUCN) to launch a unique environmental education programme for children.

The Mobile Environment Education Programme (MEEP) aims to raise awareness on natural resources and bio-diversity among future  generations while making them ambassadors for the protection of  biodiversity in the long-term. Dialog has undertaken to be the initiator of the MEEP programme by  setting up the  mobile unit which will carry a series of workshops to  150 schools by the year. While providing the principal funding  for the entire project, Dialog will also develop suitable  technologies to enhance environmental education among rural schools in Sri Lanka. The MEEP project will be initiated through a series of mobile workshops which will be delivered in 150 schools throughout this year.

These workshops will be carried out through the MEEP van which will be  equipped with technologies to deliver them in an  interactive manner to schools across the island.

The content and material which will be used at the workshops were developed by BECT and was reviewed and approved by the CEA and IUCN. BECT would play a front line role in the project by delivering information to over 37,000 schoolchildren ranging from eight to 18 years of age while IUCN would be reviewing the programme and contribute towards the improvement of the workshop. The best 'green' effort made by the schools subsequent to the programme  will be judged and the best school will be rewarded, which will also work towards instilling a long term sense of understanding of the benefits of environmental consciousness among children.  Dialog Group Chief Corporate Officer Mothilal De Silva said, "

Through this project we will be able to use our technology towards raising a sense of environmental consciousness amongst future generations of Sri Lankans who will then be able to reap the  benefits of a well balanced and diverse eco system." 

Left brain vs. right brain marketing

By Shiraz Latiff*

Organizations have traditionally considered marketing as a function that facilitates the growth of their top lines.

 However, the gradual evolution of management thinking has seen marketing as a discipline, expanding into two focal areas:  One as a science of strategy making for organizations and the other as a behavioural science that focuses on the consumer as a human being. 

In this context, when we look at the progress of the behavioural aspects of marketing, the traditional marketer has always depended on the Above the Line and Below the Line methods to create favourable responses from the consumer.  The conventional field marketing or the media based marketing looks at highlighting features vs. benefits to the consumer with the assumption that humans are rational (left brain oriented) decision-makers who care about functional features and benefits. 

This method alludes to an assumption that the larger the share of voice, larger your share of market becomes.  However, with the advent of technology, the power balance has shifted to the consumer. 

In the modern day and age advertising overkill has given the consumer "weapons" like the 'remote controller of their TV, the 'delete button on the computer' and the waste bin for junk mail,  to filter out what material and messages will be accepted and comprehended to make that 'rational decision.'

Seeing this paradigm shift, marketers too began to change their approach.  We have seen the advent of Relationship Marketing, Customer Relationship Marketing and Responsibility Marketing, where marketers have been looking for more creative means to interact and interface with their consumers than to expect a 'give and take' transactional relationship. 

The shift towards interactive marketing has given consumers the opportunity to explore and experience the product and service before making a decision.  This new phenomena has seen the birth of Experiential Marketing, which is a medium that is focused on creating one-to-one experiences that engage consumers in "deeper and more memorable" ways.

 It is about integrating brands into people's lifestyles and adding value to the consumer experience of the brand-engaging, rather than interrupting which the conventional media marketing does when the consumer is rudely interrupted from what he is doing by a commercial.  Experiential Marketing views consumers as rational and emotional (right brain oriented) human beings who are concerned with achieving pleasurable experiences.

This dramatic change in the focus by marketers has been due to two major developments in the broader business arena: 1.The Omnipresence of Information and Communication Technology (ICT):-Today consumers are more tech savvy than ever before.  The days of super computers tucked in large corporate rooms are over.  Modern day information age has ensured that the consumer is plugged into information by many means like laptops, Blackberrys and mobile phones that are on the information super highway.  Today, each consumer is a singular mobile number and an email address reachable from anywhere in the world.  Some have even progressed further to have their own websites to web-blogs to social networking forums.  The channels of internet, social networks and mobile connectivity have ensured that the consumer is not only connected to the 'wild world of wonders' but is also more informed than the average 'Joe' of a few decades ago.

Today many organizations are opening their 'branches' in Second Life to capture their 'customers' minds' even before they could make a real life 'buy' decision.  Corporate websites today are more interactive and informative and provide information on their products and services to the discerning customer.  Therefore, the advancement in ICT has allowed people and companies to connect and share an experiential universe with one another.

2. The Supremacy of Brands:  Organizations have invested in creating brand identities to their products and services.  Today we have  many iconic brands like Coke, Nike, IBM, Apple and IKEA which have grown beyond their product categories.  With strong branding comes the battle for emotional affiliation.  Brands give personalities and identities to the products and appeal to the emotional aspects of the consumer.

Today brands are becoming core competencies for organizations where the strength of their existing product or service brands is being extended to other product or service categories.  This also means creating brand loyalty.  This is loyalty towards the brand as opposed to the product quality (feature vs. benefits).  In a world in which brands rule, products are no longer bundles of functional characteristics but rather means to provide and enhance customer experiences.

These new phenomena represent the signs of an entirely new approach in marketing, if not business as a whole.  According to Experiential Marketing (EM) Guru Bernd Schmitt of Columbia Business School, EM is distinct in four key ways: focusing on consumer experiences, treating consumption as a holistic experience, recognizing both rational and emotional drivers of consumption and using eclectic methodologies.  He further illustrates that marketers can use Strategic Experiential Modules (SEMs) to create different types of consumer experiences for their customers. 

The experiential modules to be managed in EM include sensory experiences (sense), affective experiences ("feel"), creative cognitive experiences (think), physical experiences, behaviours and lifestyles (act),and social-identity experiences that result from relating to a reference group or culture (relate).

Therefore, EM is not mere exhibitions, conventions and sampling, but creating holistic experiences that integrate individual experiences into a holistic "Gestalt."  The concept of EM came into being in the late nineties but was gradually forgotten.  However, it has now become a topical and "timely" concept for organizations for reasons discussed earlier and organizations are increasingly shifting their budgets towards it in a major way. 

The 8th CIM Annual Conference attempts to 'Re-discover EM' in its pursuit to win brand loyalty.  The Conference will have many overseas and local speakers highlighting the theoretical and practical aspects of this concept.

Reference:  Experiential Marketing by Bernd Schmitt (Journal of Marketing Management)

* Latiff is Chartered Institute of Marketing Sri Lanka Region Chairman. He is also the Assistant Vice President- Service Quality of HSBC Electronic Data Processing Lanka (Pvt) Ltd.

Creating a passion for work

Group Director Aviva Global UK Alastair Ham interviewed
by Dinesh Weerakkody. Aviva has a controlling stake in Eagle Insurance.

Question (Q): What role do you play in Aviva?

Answer (A): I'm the Aviva Group Organizational Development (OD) Director. That is one of three main roles in the Group HR function in Aviva.  But it is not a traditional OD role, as we go through you would probably uncover that. 

Q: What would you see as your top three HR priorities for the global Aviva business?

A: The priority of the business at the end of the day is performance.  So everything I do is predicated on performance.  Specifically, what I'm interested in is creating a leadership climate where we lead in a way that enables everybody to perform at their best.  In our language that means exciting people to exceptional performance (borrowed from Gareth Jones & Rob Goffee-Why Should Anyone Be Led By You) and to help create a culture that puts people and customers at heart-these are my two challenges. 

Q: What are your big ticket OD items for '08 and beyond?

A: The key initiative is called Leading People.  We tried to come up with a title which did what it said.  Leading People is what it is called and leading people is what it is about.  That means leading people at all levels of the organization, from top to bottom and side to side, whether you are the Group Chief Executive or whether you are a first line supervisor of a sales team or anywhere else.

Q: How do you generally create that passion in your business? 

A: We think we know what works fundamentally for all of us, regardless of culture or background. What I am trying to do at the moment is to visit all the countries in the Aviva world to meet up with the teams in all our business units  and to build a deeper mutual understanding in testing this out; and, more importantly, even if it does seem to work, how to make it happen, given the individual circumstances that each of our businesses are in. 

There is strong empirical evidence now that shows there are just  a few key things that really matter to people if they are going to give out their best.

We are not just talking about the 110% and the discretionary effort. We are also talking about our long term future that people create by the way they bring themselves to the organization. So we want people not just to come in and sit on the chair, do a job and go home again.  We want people to come in and be creative, to take risks, to spot opportunities to improve things; to be open to feedback from their customers and from their people and do all things that influence performance not just today, here and now, but that influence performance for the future as well-so it is not just about effort and not just about achieving those targets.

Q: Attracting, retaining and motivating talent must be a huge challenge for your business. How is Aviva coping up with this challenge?

A: It is a huge challenge not just for HR professionals, but for business leaders.  What we want is to be able to equip every one of our leaders at all levels of the organizations to be able to do the right thing.

To put it simplistically; it's got nothing to do with the leader.  It's got everything to do with the people who are being led.  We don't expect leaders in Aviva to form to a particular set of behaviours or to a particular style because we know that at the end of the day they will just be themselves anyway.  And being authentic and being themselves is important to create "followership."

What we want them to focus on is their people, to work in partnership with their people, to create a set of what we call, "outcomes " for each individual, which we believe lead to maximum performance and discretionary effort.

These outcomes are linked to some fundamentals:  'Respect,' every individual must feel respected at all times, 'Clarity'-starting from organizational vision to the daily purpose of your function and role; ability to play to one's 'Strengths' and the opportunity to build on our strengths ; 'Creating an environment for people that is positive,' where they feel they get regular recognition or praise;  'Growth'-A real chance to grow and develop and 'Clearing the Way,' where people  feel that any hurdles, barriers or obstacles getting in the way of their performance are dealt with.

Q: What is unique about your culture in Aviva that differentiates you from other companies?

A: The emphasis on people leadership is unique.  The fact that it is all embracing.  We don't select high potential talent and single them out to be dealt with in a particular way.  We care about performance of every individual in the organization.  The fact that we see the people leadership skills of everybody, not just the senior levels, but all the way down through the organization is different.   The fact that we predicate everything on a deeper understanding of strengths-the fact that we come from the perspective of the individual employee and not from the perspective of the leader.  So it is almost like a moral issue to us, an ethical issue which says it is not that we want great leaders, it is that we want our people to be led in a great way.  We believe every employee in Aviva deserves to be able to be led in a way that suits them to achieve their maximum fulfilment and maximum performance.

Q: You speak about employee satisfaction.  What about customer satisfaction?

For me customer is a passion as well as a key driver to the performance of the organization.  Organizations that have lost sight of the fact that customer is the only thing that really matters would, at the end of the day, be in a pretty difficult position.   I think the insurance business worldwide did lose sight of the customer for all sorts of reasons, they became too big, too bureaucratic,  too mechanistic often they did not have direct contact with their customers, they were working through intermediaries, so they did not feel the passion for customers that others like retail organizations and hotel chains would naturally feel.  So I actually think the insurance industry for a long time has got away with not having to pay attention to customers in a way that other industries have had to.

So the other half of my job has been to create the passion in our business for customers.  That is now beginning to take hold and we are beginning to see people thinking differently. I have a simple formula.  People say to me "well what does customer focus mean? When will we know we are customer focused? When will we know that we are a customer centric organization?, what will we be doing? "

My answer always is a simple one, I say, " it does not mean anything specifically, does not mean you will be doing this or that necessarily-all it means is that you will be paying attention to customers in everything you do.  It's all about the quantity and quality of attention."  So all I am interested in is not whether we got this particular process or this particular system or product or anything of that nature-those things are important, but they're ever changing-what I care about is that everybody in the organization is paying attention to customers in everything they do.

Q: How do you integrate customer satisfaction into your performance management system?

A: It is different for customers than for our people-on the customer side we are introducing uniform ways of measuring customer advocacy across Aviva organizations and tying senior management bonuses around customer advocacy.  But that only works at one level; further down in the organizations, people need measures and to tell them what are the lead indications of customer advocacy that they need to focus on day in and day out in order to strive for greater customer advocacy.  So we are also looking to break those measures down and get more and more consistency further down in our organizations and what it takes to drive customer advocacy and those will go into performance figures further down.

On the people side there is only one measure.  And that is what your people tell you.  Nothing else matters.  So what is absolutely vital is that every manager of people and every leader in our organization receives regular feedback from their teams on how well they are leading them.

Q: What is Aviva's employment value proposition?

A: For us it's about contribution predominantly.  Join Aviva if you want to be able to make a meaningful contribution to the organization's growth.  We want to make sure that everyone is able to maximize the level of contribution that they are able to make. 

This means slightly different things to different people and this means slightly different things in different parts of Aviva.  Here in Sri Lanka, at Eagle, there is a already a culture of respect for individuals and valuing of every individual which I would love to see replicated elsewhere in Aviva. That is a part our ambition in the way in which we lead people.  In Sri Lanka in particular coming to Eagle to develop your career and to be able to grow yourself in terms of your ability to contribute more and more is vital.  This plays generally very well to what Aviva is trying to achieve.

Q: You talked about developing leaders at all levels.  Most organizations don't have the depth in their talent pipeline to enable a leadership pipeline.   How are you coping with this challenge?

A: First and most importantly we treat everybody as talent.  Diversity of talent is absolutely vital to us.  We are not looking for clones that we take in and create and manipulate to a particular style that we want.  We treat everybody as talent.

So, on the one hand we want to treat every body the same, but on the other hand we want to be able to differentiate.  So we want to be able to tap into what is right for those individuals and develop and grow them in line with their strengths. As they move up within the organization we want to make sure they are always able to build on and grow their strengths.   In that way we hope that we will take the right people up through the organization. And we will have enough diversity of people regardless of what the circumstances are and regardless of how the external environment changes and the competition changes, we have the right people to step up at the right time.  It starts all the way down at the bottom. 

A mistake for almost every organization is assuming that, for example, a great sales person will make a great sales manager.  The strengths that you need to be a great sales person are not the same as the strengths you need to be a great sales manager.  Actually you could be a pretty mediocre sales person, but you might have the strengths to make a great sales manager.   So it's about being really smart in a way in which we see the people up through the organization. That is not taking them out of their area of strengths, but always maximizing their strengths.

Q: How do you build Leadership and key talent capabilities in your business?

A: We have an academy at Aviva which leaders at a certain point of seniority within the organization have available to them.  For example, here in Eagle, Sri Lanka, as I have been going around the last couple of days and in India where I was recently, I have met a number of people who have either just come back from those programmes or just about to go into one of our leadership academies.  These leadership academies are run in Europe predominantly at the moment, mostly through the Insead Business School  which is in France, with whom we have a long-standing relationship.

Things are changing, we are in the process of shifting our leadership academies away from the perspective where they are kind of mini MBAs to much more of a focus on personal leadership.  They're increasingly about self exploration as a leader, self awareness, developing awareness of others and developing your understanding of your skills and your impact in the way in which you lead, and the impact you have on other people.

Q: When you identify a successor, how do you make sure they are getting ready for the next level?

A: Increasingly we will look for their strengths.  We will look for our leaders and managers to be more explicit in their understanding of the strengths for those individuals they have got. Ultimately we believe that if the right, natural underlying strengths are in place, then giving people the opportunity to step up into a role where they can play to their strengths will mean that that individual can take on that challenge and will thrive.   A big mistake to make is to judge people based on their current level of performance in their current role.   Current level of performance in the current role is not necessarily an indicator of their ability to be able to perform at the next role. 

So we are interested in identifying their strengths and we are interested in what we call their learning agility.  If we can do those two things in understanding strengths and learning agility, then we can be sure that when those opportunities come, they will be able to grasp them.

Q: In addition to the 360 degree feedback that you do, do you do employee satisfaction surveys?

A: Yes we do, but the concept of employee satisfaction is an old one really.  I am not a believer in satisfaction alone.  We don't just want satisfied employees and we don't just want satisfied customers, we want fulfilled and performing employees and customer advocates.  That is what we try and measure and the drivers to those things. We intend to have every manager in every level of the organization, regardless of how big their teams are, to get feedbacks from their teams and to understand how well they are doing from their teams.  We also do what we call an Aviva wide climate survey which all employees take part in, which does give us an annual temperature check of some of the longer term interventions that we are trying to take in the organization and the degree of engagement and employee advocacy we try to achieve.

Q:How much of HRM can be outsourced?

A: I think it depends on circumstances.  I think that an organization first needs to create consistency and alignment.  Without consistency and alignment, then mass outsourcing to me is doomed for failure.  There is a path which organizations need to go "down," before global outsourcing can make sense.  If you've got the right conditions to outsource, then it can really work.  There are interesting parallels to that within the Sri Lankan business here at Eagle which I think is moving towards greater consistency and greater centralization.  Where the right conditions are in place we will be able to do that.  I see it as an inevitable thing and the pacing of that and putting the pre conditions and disciplines in place will make the difference between doing it the right way or doing it the wrong way.

Q: Do you use secondments to create opportunity for impact and growth?

A: Increasingly yes, that is something that we will look to do.  But noting the talent within the organization itself is equally important. Do I think in the long term importing talent to India for example is the answer?  No I don't. It just so happens we have a Scottish CEO at the moment in India; the same CEO is the Chairman of Sri Lanka, Bert Paterson.  We have an English sales director. But those are the only two people in the senior management team from the UK.  It is important that people on the ground understand the local context and know how to operate in that.  Moving them around enough  so that they can develop their skills and take their skills back into their context is the right way.

Q: Any thoughts on work life balance?

A: I think people sometimes get too hung up on the term work life balance.   To me if you separate these two concepts too artificially then you probably aren't in the right role.  It is important for people to see their life realistically and not try to separate the two.

So if you tell yourself I must only work these hours, I must only think of work when I am in work or I mustn't be concerned about my family or things outside of work when I am in work, then you will only get stressed as a result of that.  For me it's about just being aware, being aware of yourself, being aware of other people around you, being aware of your relationships, being aware of your own needs and doing what is right to you at any moment of time.

Q: What are companies like yours doing to manage the generation X, Y gap?

A: For me everything is predicated upon relationships and openness to feedback.  Those generational gaps to me are no different to the differences that you have as individuals, the difference that you see in everybody in your team and for us to ever be arrogant enough to think that we understand-so I am of your generation, therefore, I know how to deal with you and I know how to manage you, to lead you-if I begin to believe that, then I am lost in my view.  Openness to feedback and constantly seeking that feedback, always being prepared to learn, always realizing that what is in your head in terms of what you want to try and achieve means nothing.  It is what you actually cause someone else to achieve that matters-as a leader of people, as long as you monitor yourself based on that, then I think everything else will fall into place.

Q: How do you generally  integrate CSR into your business practices?

A: CSR is a really strong value for Aviva.  It plays out in a number of different perspectives.  We have a strong interest in the environment, our impact on the environment and a very strong record in that.  We invest heavily in ensuring that our environment foot print is minimized.  We were one of the first UK organizations to become carbon neutral and we invest a great deal of money every year in programmes that ensure that we neutralize and reduce our carbon imprint.  When we reduce it we reduce it in a way that also has a positive impact on the environment in other ways. We do a lot of work in India for example on creating schemes that will reduce carbon emissions and will also help create a better environment for the set of people who are working locally.  That's a really strong value for us as an organization. 

It also plays out in respect for the individuals who work for us and the communities they work within and we want to make sure that everybody is treated with respect regardless of their circumstances.

Q: India like China has riches in human capital, one third of humanity, between them.

Do you give India a chance to catch up with the developed world despite the lack of financial firepower?

A: I think the thing that you can't help but come away with when you visit India is that India is the centre of opportunity. 

The opportunity in India is everywhere, but so is competition.

 So it's a land of almost seemingly infinite opportunities and a land of infinite competition. 

You've got those two dynamics playing out because the opportunity and the competition come from exactly the same thing, which is the numbers of people there. 

And in the same way that markets are opening up everywhere, so are people developing their skills. 

People who are opening up the new markets are the people who are developing their skills which means that competition is increasing all the time. 

It is a market with massive potential where there will be major winners that will come to the fore.  And those that can stay ahead of the game, who will just be one step ahead of the competition,  those will be the ones who will grow and grow and grow.

NDB among top 10 cos.,

NDB bank (NDB) was ranked 8th among the top 10 Sri Lankan Companies for the financial year 2006-2007 by "Business Today" recently.

Since 1979 NDB Bank has been one of the largest sources of medium and long-term project finance for business in Sri Lanka. In 2001 NDB entered the commercial banking arena.   

NDB made its comeback, resulting from an 84% growth in profits of the NDB Group. Profits from core banking business contributed to the healthy performances of the bank and capital gains to the tune of Rs. 1,016 million contributed to its exceptional increase in profits.

With long-term sustainable returns, the bank has done well in terms of profitability and has a quality portfolio with the lowest non-performing loans in the industry among local banks.

Serendib among top three

The recent brand ratings evaluated by Brand Finance (Pvt) Ltd and published in the LMD issue of April 2008 rates all three Serendib Hotels (Hotel Serendib, Club Hotel Dolphin and Hotel Sigiriya) among the top 100 Brands in Sri Lanka.

Serendib is ranked at the 68th position, Dolphin (71st) and  Sigiriya (88th).   In the hotel sector, Serendib is ranked 3 and is preceded by Taj Hotels and Trans Asia (ranked No. 1 & 2 respectively).

 CEO Srilal Miththapala said "I am delighted with these results. Over the past five years the Serendib Leisure team has worked hard to build  'character and brand value' in our hotel properties. After an in depth strategic analysis, we decided not to pursue  with an umbrella brand for our hotels, and decided instead, to individually build the brand characteristic of each individual hotel separately. This has paid rich dividends and for Serenidb Hotel to come at No. 3 is  an achievement."

According to this study, the leading brands in Sri Lanka are Dialog, Cargills Food City and Sri Lanka Telecom at 1 , 2 and 3 positions respectively. The study has been done on listed companies, where annual reports and other information for the particular brand is available.

The hospitality industry is the most widely represented in the table with 20 brands. In the brand rating category, Dolphin earns BB, the highest rating by a hotel, while Sigiriya is rated BB- and Serendib Hotel is rated B-. The top ratings are AA+ for Singer and AA for Cargils and  Dialog respectively.

Serendib Leisure manages the three hotels, Serendib Hotel-Bentota, Club Hotel Dolphin (CHD)-Waikkal and Hotel Sigiriya-Sigiriya.

CHD is the beach hotel, providing animation, fun and games. It also caters to a corporate clientele with its conference and banquet facilities.  Serendib Hotel is a beach side resort built in traditional architecture with a Dutch flavour, designed by the world renowned Sri Lankan architect Geoffrey Bawa.

The beach at Serendib is arguably the best in the region.  Sigiriya situated at the foot of Sigiriya Rock is one of Sri Lanka's leading environment friendly resort hotels, providing guests with an experience to reconnect with nature and culture and has been in the forefront in environment energy conservation.

"Even though our resources were limited, the focused effort in building our brands has been successful and Sigiriya is becoming the benchmark of an environment friendly hotel," said Marketing Manager Thishani Jayatunge.

All Serendib Hotels are listed on the Sri Lanka Stock Exchange, and CHD (Stafford Hotels Ltd) recently paid out a 5% dividend for the FY 2007/08, possibly the only hotel company to do so this year.

ICC-innovator in constructions

International Construction Consortium is one of Sri Lanka's leading contractors with multifarious capabilities in the construction industry.

 The award winning ISO-certified ICC has made a significant impact with yet another novel creation, the SBS floor system.

ICC is one of the pioneer companies to offer complementary assistance to the construction industry and their vast experience over the years has added to enhance this factor. ICC, which was established in 1980 is an ISO 9001-2000 certified construction company and has won the IFAWPCA gold medal for civil engineering and ICTAD construction excellence 2002 & 2003.

ICC's SBS floor system is a revolutionary alternative to "in-situ" concrete slabs. It translates to a 30% cost saving solution on your steel shuttering and concrete costs compared to the conventional cost in situ method. Achieving maximum profit out of minimum investment by building sturdy single beam floors (for housing) and double beam floors (for shops and offices).

The SBS method is rapidly growing in demand and it is also a unique creation with multitudinous advantages over conventional cast in situ technique.

The main features of SBS floors are: Rapid method of construction-utilization of pre-cast elements and the non-use of frame work, convenient method-does not require skilled labour for installation, "this systems does not require prior knowledge at site conditions" and residential slabs are normally designed to withstand 150 kg. per square metre, but SBS slabs have an enhanced load up to 500 kg per square metre.

Installation of the SBS floor system is simple-just by placing SBS beams on walls, "in filling with masonry blocks" and laying mesh reinforcement and topping with concrete screed. The pre-stressed slab system is made up of pre-stressed beam, concrete masonry soft blocks, distribution reinforcement GI weld mesh and structural concrete topping.

Another problem in using normal in situ concrete slabs is that it requires an enormous amount of bamboo props and plank, whereas SBS floors require no shuttering, "hassle-free, as well as a rapid method of construction." Pre cast elements are manufactured using raw materials such as cement and sand and have been tested in their laboratory prior to concrete mixing as it is difficult to test raw materials at a construction site.

ICC-SBS floors are cost-effective, efficient and ensure top quality. It offers the best construction solution to the discerning customer.

HP's latest tools increase agility

HP recently announced that in the past 18 months more than 50 Asia Pacific and Japanese customers have successfully migrated from legacy mainframe systems to HP Integrity systems to support mission critical IT environments.

Companies moving to next-generation data centres from diverse industry sectors have replaced legacy systems, including IBM mainframes, with HP Integrity to minimize high hardware maintenance and software licensing costs.

Fuelled by increased demand for HP Integrity and Integrity NonStop servers in Q4 2007, HP's Intel Itanium (EPIC) processor-based server revenues grew 53% in the Asia Pacific (excl. Japan) region (1). 

According to IDC, HP tied for the top position in the Asia/Pacific (inc. Japan) Unix server market in revenue terms, securing 33% market share measured in CYQ4, 2007.  HP's RISC & EPIC Unix server revenues grew 29.3% on a quarter-on-quarter basis in Q4 2007, underpinned by a 23.8% growth in EPIC Unix. RISC Unix server revenues grew by 46.4% on a quarter-on-quarter basis, outperforming market growth of 8% during the same period.  HP Integrity servers represented the majority of HP's Business Critical Systems revenue in Asia Pacific (Inc. Japan), with 77% share in Q4 2007 (2).

HP also introduced a modernization programme to leverage its new HP Legacy Application Transformationc and Visual Intelligence Toolsc. By helping businesses understand the structure and composition of legacy applications based on scientific analysis, these tools significantly improve the transformation process by minimizing risks, reducing time, budget and resource requirements.

"Customers are realizing that mainframe systems are expensive to maintain and vulnerable to security threats," said HP Asia Pacific and Japan Business Critical Systems vice president and general manager Herbert Zwenger. "HP helps customers to move towards next-generation data centres by modernizing legacy applications and ensuring better investment protection through open and modular HP Integrity server solutions."

Shinhan Bank migrated from existing mainframe systems to HP Integrity to maintain a large core banking system following its merger with Chohung Bank. "There were many cases of transforming mainframes into open systems, yet none was comparable with us in terms of scale," said Shinhan Bank IT Planning Division IT Group general manager Tae-Jun Lee.

 "Our successful transformation paved the way for a new trend of mainframe downsizing in the Korea banking industry."

Key customers in Asia Pacific (AP) who migrated from mainframe systems to HP Integrity to lower power consumption and ease management of multiple applications include:-Astellas Pharma, Japan: HP helped to consolidate the marketing data of Astellas Pharma from an old mainframe server to a single HP Integrity Superdome on virtual servers that was divided and split into multiple hardware systems and partitions. HP Integrity servers and virtualization tools helped Astellas Pharma reduce system operating costs by 50%.

POSCO, Korea: The mainframes of steelmaker POSCO had limitations in managing the rapidly evolving new applications environment. By transitioning to HP Integrity Superdome from the mainframes, the company reduced delivery time by more than 60% and increased e-commerce volume to 98%.

Intel is seeing rapid adoption of Itanium-based platforms, particularly in AP's financial and telecoms sectors, where customers with legacy mainframe environments are choosing to move to more flexible and reliable Itanium-based solutions that reduce IT costs and are highly optimized for business-critical operations. 

"The Itanium processor, along with our robust processor roadmap, is well positioned as a mainframe replacement solution for mission-critical applications such as ERP, CRM and BI," says Intel Server Platforms Group AP Product Marketing Manager William Wu.

 "The fast adoption of HP Integrity servers and migration from legacy mainframe environments is good validation of Itanium's ability to meet the rising requirements of performance-demanding industries in AP. Together with partners like HP, Intel will continue to develop the Itanium platform with new innovations and process technology  in the future."

With a significant number of customer adoptions in AP and Japan, HP Integrity runs more than 1,400 leading Independent Software Vendor (ISV) applications that support customer needs in ERP and SCM environments. In addition, HP Integrity servers support more than 14,000 applications globally.

Recent HP Integrity server innovations include: New Operating Environments (OEs) for HP-UX 11i v3 with built-in virtualization software simplify and speed up customers UNIX deployments, and help reduce lifetime maintenance costs. QuickTransit for Solaris/SPARC-to-Linux/Itanium on HP Integrity servers helps users move enterprise applications from SPARC-based hardware to HP Integrity servers running Linux.

HP Integrity BL870c-the first four-socket HP Integrity server blade combined with the modular infrastructure and energy efficiency of HP BladeSystem. Designed and developed in Singapore, the server can save upto 25% more power. HP Insight Dynamics-VSE-brings together the best of HP's industry-leading infrastructure management portfolio to deliver the first integrated solution that lets customers' visualize, plan and change their physical and virtual resources. 

HP has a portfolio that spans printing, personal computing, software, services and IT infrastructure. It is among the world's largest IT companies, with revenue totalling $107.7 billion for the four fiscal quarters ended Jan. 31, 2008.

(1) Source: IDC Asia/Pacific Quarterly Enterprise Server Tracker Q4 2007, March 2008.

(2) Source: HP Q1 FY08 Earnings.

Sampath donation

Recently Sampath Bank Ltd., provided a helping hand to an entrepreneur who is manufacturing a Medical Infusion Machine needed for Thalasemia patients.   This machine was originally imported at a cost which is about three times higher than the locally manufactured machine.

Thalasemia is widespread in Kurunegala and Anuradhapura Districts. Most of them are children coming from indigent homes. Canadian Health Association and Thalasemia Association have accepted this as a suitable machine for the patients since it is manufactured to international standards.

News In Bref

Rupee to dip

With Sri Lanka's import bill being greater than its export bill, the rupee is expected to take a dip in the coming weeks with the exhaustion of the US$ 700 million Iranian petroleum credit line that ends in July.

"The rupee middle rate has virtually remained unchanged for the past three months, it was Rs. 107.95 to the US dollar on January 31, and currently it is at Rs. 107.85, investors however expect it to take a dip, now that the Iranian credit line is nearing its end," market sources said.

"I expect the rupee to go down to Rs. 109 by July and end the year at Rs. 110," one market source said. The dollar closed the week at Rs. 107.85 (buying) and Rs. 107.90 (selling), virtually unchanged over its Thursday's position.

Bank of Ceylon was seen both on the buying and selling side, contributing to around US$ 10 million to overall market turnover on Friday, they said.

Rates at 13-14% levels

Overnight call money market rates, the rates at which commercial banks lend to each other for a day remained steady at the 13-14% levels on Friday, the same rates they commanded on Thursday, due to liquidity returning to the market after the Avurudhu binge.

Call rates even went as high as 25% on April 10, before coming down to the 14-15% levels on Monday.

Market sources said that it was due to the high liquidity demand immediately prior to the Avurudhu, that resulted in the rates going up during that period.

Reviving sick cos.

CIMA Sri Lanka Division together with BRIPASL (INSOL International Sri Lanka Chapter) will conduct a seminar on" Proposed Law on Revival and Rehabilitation of Companies" at the Holiday Inn, Colombo tomorrow (April 28).

The objective of the seminar is to discuss the draft of the proposed Law on Companies Revival and rehabilitation and the amendment to the Mortgage Act prepared by BRIPASL.

Chief Justice Sarath N. Silva (PC) will be the chief guest, while Central Bank of Sri Lanka (CBSL) Governor Ajith Nivard Cabral will be the keynote speaker.

 Other speakers include: K. Kanag-Isvaran,(PC)-Company Law Advisory Commission (Chairman), Deputy CBSL Governor Dr. Ranee Jayamaha, BASL Immediate Past President Nihal Jayamanne (PC), BRIPASL and LOLC Group Chairperson Rohini Nanayakkara, CIMA Sri Lanka President Aruna Fernando, Julius & Creasy Precedent Partner J.M. Swaminathan, Dr. Harsha Cabral (PC), Murugesu & Neelakandan Partner, Kandiah Neelakandan, Gajendran & Company Partner N. R. Gajendran, Abans Financial Services Ltd CEO Mano Alles and CBSL former Special Officer-Legal Reforms Project Senehelatha Perera.

Climate change

Dr. Mohan Munasinghe, Vice-Chair, Intergovernmental Panel on Climate Change (IPCC), Geneva, who shared the 2007 Nobel Peace Prize with internationally reputed environmentalists such as former US Presidential hopeful Al Gore will be featured in this week's edition of Benchmark.

He will discuss global warming, eco-tourism and trends such as carbon trading in a wide-ranging interview with Savithri Rodrigo.

On the same edition of the show, the 'Voice Of Business' will comment on the ramifications of the recent ADB report on Sri Lanka and the programme's 'Sharp Focus' segment will bring its estimated 1.1-million-plus viewers an update on the state of the economy.

Benchmark is presented by LMD and is telecast every Sunday on TNL and cable TV: on LBN's Bloomberg Television segment, on Mondays.

Office-bearers

Sri Lanka Institute of Packaging office-bearers for 2008/09: A.K. Ratnarajah (President); Dudley Thambinayagam (Deputy President); J.D.C. Perera, K. Rohan B. Wijesinghe, Gamini Marambe, T.L. Chandraratne and Rohan Victoria (Vice Presidents); Thusith Wijesinghe (General Secretary); Anuradha Jayasinghe (Asst. General Secretary); Hemantha Tennakoon (Treasurer); Upul Abeywardene (Asst. Treasurer); Lakshan Pethiyagoda (Secretary Social), Sohan Perera (Secretary Publicity) and Senaka Rodrigo (Secretary Marketing).

In Brief

Joins HNB Assurance Board

HNB Assurance PLC has appointed Alliance Group of Companies Senior Chairman Prathapkumar de Silva as a director effective  from March 31, 2008. He would function as an independent non-executive director.

De Silva is Alliance Finance PLC's Chairman and Joint Managing Director, in addition to serving as Chairman of Arpico Finance PLC, Alliance Tech Trading (Pvt) Ltd and several other companies.

He is also a director of a number of companies including Virtusa (Pvt) Ltd, Software Solutions (Pvt) Ltd, Macbertan (Pvt) Ltd and Orient Hotels Ltd. De Silva represents the finance companies on the Board of the Credit Information Bureau of Sri Lanka. He is also the President of the Sri Lanka Institute of Credit Management, an Executive Director of the Finance Houses Consortium (Pvt) Ltd and Advisory Councillor to the Committee of Finance Houses Association of Sri Lanka.

De Silva currently serves as the Honorary Consul of Peru in Sri Lanka and has been a renowned motor racing driver with many achievements to his credit in that field. 

Saving trees

Touchwood Investments Ltd (TIL). has launched a project called 'Sandun Arana' which aims to donate Sandalwood trees to places of worship in Sri Lanka. TIL is a triple bottom line company committed to preserving natural rain forests by providing "ethical" sources of timber through reforestation with high commercial value exotic timber and remains to be the "only ISO 9001 & 14001 certified company in Sri Lanka."

The main aim of "Sandun Arana" is preserving the Sandalwood tree which faces extinction, while making it visible to people in a sanctified or sacred setting. 

Buddhist temples have played a historic role in preserving medicinal trees and Touchwood is proud to have made a contribution towards augmenting and reviving this role.

The inaugural launch of the 'Sandun Arana' Sandalwood plantation project was held recently at the Environment Ministry office Battaramulla, presided over by Minister Patali Champika Ranawaka.

Five Sandalwood saplings were planted at the Ministry compound and a symbolic offering of Sandalwood plants was made to the Maha Sanga. The Ministry Secretary, Forest Conservation Department Director General and State Timber Corporation Chairman and General Manager were also present. TIL Board was represented by Ishara Nanayakkara and Asitha Koralage.

Stock market announcements

Lighthouse Hotel PLC has announced a tax free, first and final dividend of 50 cents per share for the financial year 2007/08. AGM on June 23, 2008; excluding dividend (XD) date on June 24 and payment date on June 30.

Dankotuwa Porcelain PLC has declared a "1 for 1" rights issue. EGM and provisional allotment May 14, 2008; excluding rights date May 15, dispatch of provisional letter of allotment: May 22, splitting: June 3, renunciation: June 12 and trading starts on: May 28.

Hayleys PLC has declared a tax exempt interim dividend of Rs. 1.50 a share for the financial year 2007/08. XD date is April 28, 2008 and payment date May 9, 2008.

Keells invests in India

Keells Food Products PLC (KFP) has invested in a 100% owned subsidiary in India, John Keells Foods India Pvt Ltd (JKFIL), to manufacture and market processed meats.

JKFIL products will reach key metro cities across India. KFP has been exporting processed meats to India from Sri Lanka in the last few years.

Monopolies & competition

International Air Transport Association (IATA) welcomed the UK Competition Commission's emerging thinking, published on Tuesday  on the BAA Airports market investigation that noted that the ownership of seven UK airports is not in the best interests of passengers and that the system of economic regulation applied by the CAA may adversely affect competition.

"London, where BAA owns the three major airports is the most critical area. It is perverse that BAA's profits rise as service levels fall. Breaking up BAA to introduce some competition is a step in the right direction," said IATA Director General Giovanni Bisignani.

"Allowing an 86% increase in Heathrow charges over the next five years- on top of a 50% increase over the last five years is bad. Only an out-of-control monopoly could plan their business in such terms. In short, the CAA's system of economic regulation is wrong," said Bisignani.

"The problem is serious and half-measures won't help. We need an overhaul of the CAA's economic regulation to focus it on delivering excellent infrastructure for passengers-not excessive profits for the BAA."

Working while studying

Students from Colombo University, Open University, Sri Lanka Institute of Information Technology (SLIIT), National Institute of Information Technology (NIIT) and IDM Computer Studies will be allowed to work in Virtusa while studying for their IT degrees.

Virtusa will provide financial assistance, on-the-job training and learning assistance to students to complete their degree studies.

 "With many Virtusans participating as volunteer lecturers, student mentors, curriculum developers and a host of other academic support programs, we aim to create global opportunities for talented youth and support the development of the IT industry in the country," said Virtusa Sri Lanka General Manager Madhu Ratnayake.

Virtusa is an information technology (IT) services company providing IT consulting, technology implementation and application outsourcing services. Founded in 1996 and headquartered in Massachusetts, Virtusa has offices in USA and UK, and global delivery centres in India and Sri Lanka.

UK raises airport fees

The UK Civil Aviation Authority (CAA) announced price controls for Heathrow and Gatwick airports for the five years from April 1, 2008 to March 31, 2013, to enable BAA to invest in improved facilities and service.

 In 2008/09, charges per passenger at Heathrow will rise by 23.5% and at Gatwick by 21%, with subsequent increases in each of the following four years. BAA said the increase was insufficient to meet the scale of tasks planned, but UK airlines said the move confirms that a complete overhaul of the regulatory system is needed.

 International Air Transport Association (IATA) said CAA's decision represents failure; "Economic regulation must produce results that are measured by improved efficiency and quality, not reward excessive monopoly profits and embarrassingly low service levels." (Washington Aviation Summary)