Investors queue to exit from bourse

Investors want to exit from the Colombo bourse due to a better return given by the fixed income market, while foreigners want to pull-out due to the US sub-prime crisis, coupled with the country’s security situation, market sources said.

"There are hardly any foreign inflows coming into the market, that’s why the market is bearish these days," they said.

"The only foreign interest we see is on SLT, presumably investments made by Global Telecommunications Holdings NV (GTH), a sister company of Maxis Malaysia, Malaysia’s single biggest mobile telecoms operator, which has made a mandatory offer to the rest of SLT’s shareholders to buy their stakes in the company," they said

Otherwise, both foreigners and locals on the whole want to withdraw their investments from the bourse, but they are unable to do so, for want of not being able to get a price comparable with their initial investments, the sources said.

They have bought high, but the market is demanding a lower price on their investments, as such they are unable to exit, the sources said.

The US sub-prime crisis has resulted in foreign funds not looking to invest in markets like Sri Lanka, they said. Generally such funds used to invest around 20% of their monies in markets such as ours, but the sub-prime crisis has dented such investments, they said.

Meanwhile, high networth individuals are waiting on the sidelines without making any investments in the bourse, they said.

Locals on the whole want to exit from the bourse and invest their money in the fixed income market which gives a better return due to the high interest rate regime that is prevalent in that market, but they too are unable to do so for want of not getting an acceptable price on their initial investments in the bourse, they said.

The market last week recorded an average daily turnover of Rs. 152.6 million, in contrast to a figure that was double that amount in the closest comparative period last year.

The bourse in the period May 14-18 of last year averaged a daily turnover figure of Rs. 286.4 million, after discounting an exceptional turnover figure of Rs. 6.7 billion recorded on May 17 of last year.

Total foreign purchases (TFP) recorded last week was Rs. 171.6 million, chiefly due to GTH’s interest in SLT. In contrast, last year during the same period (excluding exceptional foreign transactions recorded on May 17, 2007) TFP were four times that figure, recording a total amount of Rs. 651.3 million.

While last week recorded a net foreign inflow of Rs. 4.5 million, the corresponding period last year (excluding exceptional foreign transactions recorded on May 17, 2007) registered an amount 80 times as large as this figure, a net foreign inflow of Rs.363.9 million.

Manufacturing businesses and local value-adding industry of the Hayleys Group were impacted by the most inimical macroeconomic conditions, comprising a deadly combination of high inflation, high interest rates and an appreciating exchange rate," its chairman N. G. (Tankey) Wickremeratne said.

"The effect of this is difficult to calculate but must exceed a billion rupees or 5% of the revenues of our export manufacturing sector," he said.

The Group in the financial year ended March 31, 2008 saw turnover grow by 17% year on year (YoY) to Rs. 31 billion, while profit attributable to shareholders declined by 15% YoY to Rs. 453 million.

Wickremeratne said businesses categorized under Global Markets & Manufacturing which are engaged in the manufacture of a range of products for global markets accounted for more than half the Group’s turnover.

"They performed well under difficult circumstances but in most cases greatly below potential. High domestic inflation and an exchange rate which appreciated rather than depreciating under the circumstances, could only result in a loss of profit margin. High energy price increases, especially of electricity, heaped further challenges on them, with the pressure greatest in the second half of the year," he said.

In the Resorts area, performance was affected by the volatile security situation and the attendant drop in tourist arrivals generating an overall loss.

Wickremeratne however said that the Group’s two plantation companies achieved better results despite the wage increase mandated by the Government in November 2007 over and above the settlement achieved by the Collective Agreement of the previous year.

Ceylinco Insurance, Rs. 30 bn. in assets

With assets totalling over Rs. 30 billion, Ceylinco Insurance’s share issue will be anticipated as one of the biggest and most worthwhile investment opportunities presented to the public.

No sooner the company obtains stock exchange approval, shares will be on offer at Rs. 175, making Ceylinco Insurance one of the very few companies to sell shares in this price range.

Speaking to The Sunday Leader, Ceylinco Insurance Finance Director T. Nihal M. Peiris said that this exciting new opening to the public is one that should not be missed out.

He said that the company recorded an after tax profit of over Rs. 1 billion in 2007, a feat in the insurance industry that has reaffirmed Ceylinco Insurance’s place as the insurance industry leader.

Peiris said, "We’ve been the industry leader for the past four years now, and with each passing year the lead increases and the gap keeps widening."

When asked as to what he felt has contributed to Ceylinco Insurance’s success, Peiris said that in the last few years the company has introduced innovative insurance products and services to its customers like no other company has done before.

Peiris added that the company led the market in both Life and General Insurance, which has underwritten Rs 17.2 billion in 2007.

While General Insurance reported a Rs. 10.3 billion premium income comprising Rs. 6.2 billion from Motor Insurance and Rs 4.1 billion from Non-Motor Insurance, the company’s Life Insurance Division has kept up, growing by an impressive 20%, after achieving a Rs 6.9 billion premium income in the year reviewed.

Perera said that this was an increase of over Rs. 800 million in General Insurance and has given Ceylinco Insurance a 37 % share of the General Insurance Market.

On the topic of the several new strategies implemented by the company in the period under review, Peiris said that policies like VIP- 3 in One and the new health insurance policy Suwa Sampatha Non Stop have taken Ceylinco to new heights.

Coupled with this, the company’s 350 plus branch network and 1,000 marketing professionals (apart from its insurance agents) have made the company’s policies more accessible to customers in all parts of the country.

But it doesn’t end there. Ceylinco Insurance has set their sights farther than the shores of the country, with offices in Nepal, Bangladesh, UAE, Mauritius, Bahrain, Maldives, Oman, Qatar and Kuwait, selling insurance policies not only to Sri Lankan expatriates, but to other nationalities, from India and the Philippines.

Peiris said that Ceylinco Insurance promises more to come in the year ahead in terms of innovation and revolutionary changes in insurance.

"We’re one of the best companies in the country, we’re stable and we’ve got a strong asset base. I’m not saying this because I work here–it’s a fact. The shares that will be on offer soon are far more valuable than what they’re offered for. This is an opportunity to the public, to grow and to reap the rewards with us. And we’ve got plenty more plans in store."

HNB bags top global award

Hatton National Bank (HNB) notched up a major accolade at the seventh Asian Banker Excellence in Retail Financial Services Awards: The Best Retail Bank in Sri Lanka.

Managing Director Rajendra Theagarajah received the award on behalf of the bank at The Asian Banker Excellence in Retail Financial Services 2008 Awards ceremony, held in conjunction with the region’s most prestigious retail banking event, the Excellence in Retail Financial Services Convention.

The ceremony was held at the Westin Grande Sukhumvit, Bangkok on Friday (May 16).

About 150 senior bankers from award winning banks in 23 countries across the Asia Pacific, the Gulf region and Central Asia attended the glittering event, the industry’s celebration of the region’s best retail bankers that recognizes their efforts in bringing superior products and services to their customers.

The awards programme, administered by The Asian Banker, and refereed by prominent global bankers, consultants and academics, is the most prestigious award of its kind.

HNB won the ‘Best Retail Bank in Sri Lanka’ award in The Asian Banker Excellence in Retail Financial Services programme for its performance in 2007. The Bank chalked up record income and strong profit growth at a challenging time for Sri Lanka’s banks.

Unlike its foreign competitors, HNB possesses a wide reaching franchise with 40% of its network in areas outside the more developed western provinces and a thriving micro finance portfolio. It attracted an 18% increase in deposits through its flagship savings products in a market that sees fierce competition for low cost deposits.

The bank is also making progress in expanding its channels and distribution beyond the traditional branch. It launched internet banking and mobile phone banking in the local language, thus reducing the need for customers from less developed areas to travel long distances to make simple transactions.

Theagarajah said, "Team HNB is delighted to receive this accolade from one of the world’s most respected financial journals. It is not just an opinion survey, but a combination of stringent evaluation and market survey. The evaluation process uses a 10 dimensional scorecard with some 41 indicators, while the survey incorporates the perception from an A C Nielsen survey which is further screened by an international panel. We are particularly proud of this achievement as this is the first time in the 7 year history of this awards programme, that a locally incorporated bank from Sri Lanka has stood out and been recognized as the Best Retail Bank In Sri Lanka."

"This year over 150 banks and financial institutions in 23 countries across the Asian region were evaluated as part of the Excellence in Retail Financial Services programme," said Excellence in Retail Financial Services programme chairman Phillip Strause, who is also International Resource Director for The Asian Banker.

Strause added: "The Asian Banker Excellence programme was instituted in 2001 on the premise that an outstanding player in the retail financial services industry should build business franchises that are sustainable, competitive and profitable over a period of time".

John Keells Holdings PLC, Associated Motorways PLC and Finlays Colombo PLC entered into a Memorandum of Understanding on Thursday to undertake a feasibility study for the combined development of their properties which are situated adjacent to each other in Colombo.

The combined extent of the site would be over 1,060 perches with road frontage from both Union Place and Vauxhall Street. The development would be planned as a city within the city overlooking the Beira Lake waterfront and would consist of residential, commercial, retail and recreational facilities built to "up-to-date" standards.

JKH Chairman Susantha Ratnayake said, "Experiences and learning gained from other property developments within the Group would be invaluable in making this an iconic project for the city."

Finlays Chairman Kumar Jayasuriya added, "The experience and knowledge of our ultimate parent company, the Swire Group–one of the largest property developers in the Asia Pacific region–would add value to the project, particularly in the planning and implementation stages."

Pelwatte Sugar Industries Ltd., in the 4Q ended March 31, 2008 made a Rs. 225.2 million loss; a 57.2% YoY increase compared to the loss of Rs. 143.3 million made in the corresponding Q the previous year.

The company in the financial year (fy) ended March 31, 2008; saw its cumulative losses increase by 255% YoY to Rs. 574.3 million.

DPL PAT down 61%

Dankotuwa Porcelain Ltd., in the 1Q ended March 31, 2008 saw PAT decline by 61% YoY to Rs. 1.1 million.

MBSL PAT down 59%

Merchant Bank of Sri Lanka in the 1Q ended March 31, 2008 saw its PAT decline by 59.4% YoY to Rs. 27.5 million.

Talawakelle PAT up 189%

Talawakelle Tea Estates Ltd., saw its net profit after tax increase by 189.4% YoY to Rs. 87.8 million in the 1Q ended March 31, 2008.

Colombo Land makes turnaround

Colombo Land & Development Co., Ltd., which made a Rs. 17.7 million loss in the 1Q ended March 31, 2007; has converted this loss into a Rs. 6.6 million profit in the 1Q ended March 31, 2008.

Mahaweli losses up 8%.

Mahaweli Reach Hotels Ltd., saw their losses increase by 8.3% YoY to Rs. 5.5 million in the 4Q ended March 31, 2008. However, the company, in the fy ended March 31, 2008 saw their losses decline by 12.9% YoY to Rs. 14.2 million.

Benefiting from China’s growth

" ‘China,’ and how other countries can benefit from its growth" will be the focus of the lecture to be delivered by economist Cao Yuanzheng, who is also the managing director of China’s largest investment bank-BOC International Holdings Company Ltd., (BOCI); at the "Igniting Passion- Blazing Trails" CIMA World Conference that will be held in Colombo from May 28–31.

Yuanzheng’s topics will include: "The Economic emergence of the world’s most populous nation; who is likely to benefit and who may lose out?" "Crafting Economic policy for the world’s fastest growing economy; the challenges, risks and rewards and skills required" and "China’s market reform and transformation, the leadership challenges."

BOCI is the first investment bank established in China and has operated overseas for over 20 years. Today, BOCI has China’s largest amount of assets under management and is the most globalised of operations for mainland investment banks operating abroad and in China. BOCI is a wholly owned Hong Kong based subsidiary of the Bank of China. BOC International China Ltd., (BOCI China) was established by BOCI in conjunction with five leading enterprises, including China National Petroleum Corporation, State Development & Investment Corporation, Yuxi Hongta Tobacco (Group) Co., Ltd., China General Technology (Group) Holdings Ltd., and Shanghai State Owned Assets Operation Co., Ltd.

Yuanzheng is also a visiting professor at Damstadt University Germany‘s School of Economy.

He holds a doctoral degree from People’s University, China (PUC) and a Masters degree in Economics from Wuhan University. uanzheng’s previous positions included Chinese Economic System Reform Academy’s State Commission of Economic Restructuring’s (SCER’s) Deputy Head, SCER’s Bureau Head of International Economic Comparison and Institute of Chinese Economic System Reform’s Deputy Research Head.

He is also a doctoral supervisor at PUC, professor at Tsinghua University’s Chinese Economic Research Centre, research fellow at Beijing University’s China Economic Research Centre, visiting professor at Southern California University and China Association of Macro Economy Deputy General Secretary.

For a long time Yuanzheng has been involved in areas of Chinese economic reform, macro-economic theoretical study and policy setting. He has also acted as an expert for the World Bank, Asian Development Bank and United Nations Development Programme.

He has also won several national awards for his outstanding contribution to the country. The CIMA World conference will be held over a period of four days and revolve round four pillars: Peace Building, Innovation, Global Branding and Leadership. This momentous event is affirmed to feature many eminent speakers who have specialized and gained world recognition in their respective fields and the worldwide audience would irrefutably gain insights for their future development.

India’s role in global economy

Jehangir S. Pocha, one of several speakers to address the inaugural CIMA World Conference that will be held in Sri Lanka from May 28 - 31 is the Editor of Business world, India’s best selling business magazine. Pocha holds a Masters degree in Public Administration from Harvard University, USA. His other educational qualifications include a Masters in Business Administration and Bachelor of Economics from Bombay University. He has US and Indian citizenship, with permanent residency status in Singapore.

Pocha will talk on the subjects: "What is India doing to build effective leaders in the backdrop of a greater role in the global economy? What are the challenges in doing so?" and on, "The most admired business leaders in India; what differentiates them from others in their approach to business and leading people, individual attributes and outlook; are they self made or born leaders? "

Business world has grown to become the largest selling business magazine in India and the largest selling English business magazine in Asia, with a circulation of over 130,000 a week.

Before joining Business world, Pocha had worked as a foreign correspondent and has three years experience as Beijing-based Asia correspondent for leading US and Indian publications such as The Boston Globe and Business world.  He has also published articles on business, technology and politics for leading newspapers and magazines and journals in the USA and Asia. Pocha was China/Asia correspondent for "In These Times," and has also contributed to The Chicago Tribune, The Philadelphia Inquirer, Boston Review and Christian Science

Another 1st from Ceylinco

In what could be called a revolutionary step in redefining health insurance, Ceylinco Insurance General (CIG) has introduced a unique concept with Ceylinco National Health Policy (CNHP), company sources revealed .

For a Rs 500 fee, an individual can obtain unlimited number of medical consultations at no extra charge for the whole year from Ceylinco Medi Spots (CMSs) in the respective areas. Already, Ceylinco Medi Spots have been opened in areas such as Galle, Panadura, Embilipitiya, Katunayake and Kandy.

CNHP is designed to cater to the needs of the family. A child under 18 can utilize unlimited number of medical consultations at a CMS for a year by making a Rs 250 payment. CMSs are manned by medical personnel–doctors and nurses.

" The uniqueness of CNHP is its one time fee even though the patient can visit many times thereafter, at no extra cost" says CIG Chief Executive Director Ajith Gunewardena.

"This is yet another way of providing innovative services for the patients, in keeping with Chairman Dr Lalith Kotelawala’s vision."

" In today’s environment of stress and busy lives, people seek medical advice and help more than before," but health care is expensive. With CNHP, anyone can have access to quality health care and ensure that basic health care services are made use of, in a modern, clean and patient friendly environment. What’s more, as a CNHP customer, you are issued a special card at a CMS – all you need to do is to produce the card to be entitled to free medical service thereafter for the whole year," added Gunawardena.

In keeping with CIG’s policy of staying closer to the customer, CNHP promises to be of much use to patients, he said.

CIG pioneered On the Spot Claim settlement in the insurance industry, making it a world first in recognizing customer needs. CNHP also would be equally groundbreaking as a first in healthcare insurance, adds Gunewardena.

Inculcating savings habit

HSBC recently launched its first Financial Literacy Programme with MAS Holdings with the signing of a memorandum of understanding (MOU) to launch a one day certificate programme titled Managing Personal Finances for a Better Tomorrow for its factory employees.

The programme which coincided with Financial Literacy Awareness Month was tailored to suit the diverse financial needs of many MAS employees. This was an extension to the Financial Literacy Corporate Social Responsibility Programme, HSBC Living Finance.

The agreement was signed by HSBC Sri Lanka and Maldives Deputy CEO Nick Nicolaou and MAS Holdings CEO Sharad Amalean.

The first workshop was conducted by trainer to the programme Ms. Nilooka Dissanayake at MAS Active Sleekline, Nittambuwa. Over 70 factory employees attended the day’s programme which covered areas such as understanding money and cash flow, basic economic and financial concepts, debt management and risk management, including practicing of sound financial management and understanding ways to build financial security.

The second successful workshop was held on at MAS Intimates Unichela, Koggala on May 11, 2008; while the third workshop will be held at MAS Active Leisureline, Katunayake this month (May).

The workshops will cover 10 MAS factories around the country will benefit over 1,000 factory employees with knowledge and understanding to meet their everyday needs, successfully plan for many milestones in life, determine what is important to them, define goals, assess their current financial situation and evaluate the various alternatives available to fulfil their goals.

On completion of the training, participants will be accredited with a certificate co-branded by MAS Women Go Beyond (MAS’ women’s empowerment initiative) and HSBC.

Strong 1st qtr. for UA

Union Assurance (UA) reported impressive results in 2008 1st quarter, recording strong growth in both turnover and profitability.

General and life insurance premiums for the quarter grew by 15%, from Rs. 1.4 billion in 2007 to Rs. 1.6 billon in 2008. Consolidated profit after tax also increased by 100% to Rs. 41 million for the quarter ended March 31, 2008.

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 built on this platform by launching a "Call & Replace" service whereby motor insurance policyholders can have any damage to windscreens, side mirrors and lamps repaired or replaced at their home, office or any other location at a convenient time.

UA has tied up with a number of leading suppliers to provide this service. All expenses related to accidental repairs are borne by UA.

In order to further enhance customer convenience, UA has made motor insurance accessible via the internet as well. A combination of substantially discounted premiums, cutting edge technology and ability to print a motor certificate "24 x 7 x 365" makes this product–"Click & Go" an ideal motor insurance solution for a busy executive with an internet connection at home or office. Existing and potential customers could log on to compare premiums and buy a policy.

Employ safety teams for OH&S management

Is Occupational Health and Safety (OH&S) important to Sri Lanka? It is clear that safety problems cost every employee in Sri Lanka hundreds of rupees annually, based on the direct and indirect costs of occupational injuries.

Proper OH&S programmes in a country give long term as well as short term benefits such as huge reductions in health expenses by minimising workplace accidents, reduction in labour turnover and peace of mind which improves productivity, reduce brain drain, increase interpersonal relationships in a workplace and increase lifespan.

In other words, if a country has proper OH&S programmes implemented, the quality of life of the community will be high. The first step of having OH&S in a country is by introducing appropriate legislation and regulations on OH&S and make them mandatory, with the focus on two types of human resources, skilled and unskilled workers.

The government can then make employers responsible for providing a healthy and safe work environment by eliminating or controlling work hazards such as biological hazards, chemical hazards, physical hazards, psychosocial hazards + ergonomics and environmental hazards.

When a worker accepts employment, he/ she accepts all the normal risks and the above mentioned hazards associated with that occupation. It is however necessary to implement "right to know system" with job risks and hazards in an organization. Job safety analysis (JSA) shall be done for each and every employment by the employer so that the employer and the employee are responsible to perform their duties and tasks in a safe and responsible manner.

It is necessary for the employer to be responsible for preparing a written OH&S policy and communicate throughout the organization, ensuring that the top management is committed to control OH&S risks and hazards to the minimum level.

Risk assessment is an important requirement for each and every establishment before recruitment of employees, after recruitment of employees, making changes to the processes and/ or to the system and/ or equipment or raw materials. Once hazards have been identified, the risk of an incident, and/ or injury shall be determined.

The risk could be expressed as the probability, consequence and exposure to the hazardous event(s) and expressed as a percentage since risk is associated with the probability of an occurrence, the consequences of that occurrence and the exposure to the cause of the occurrence. Probability is the chance or likelihood that the event will happen.

The measurement of the risk will be carried out considering the degree of employee exposure to the hazard. Consequences have a relationship with the severity of the injury.

By estimating the probability, consequence and exposure, the risk involved in any job or a task could be determined. Many methods can be used for identification of hazards and risk assessment such as knowledge of safety experts, review of plant, tasks reports and safety audits. Although accidents and injuries cannot be eliminated fully, risk assessment can reduce the undesirable events by taking precautions and by necessary actions to change/modify the processes and/ or machines.

Emergency preparedness plans are important for workplaces in OH&S management. These plans and procedures need to be established and maintained to identify the potential for, and responses to, incidents and emergency situations, and for preventing and mitigating the likely illness and injury associated with them. These plans shall be reviewed frequently, after any occurrence or emergency situations. Emergency preparedness plans and procedures are necessary to be periodically checked for practicability.

These procedures and plans need to be reviewed at planned intervals to check the adequacy, or to make changes appropriately. Providing training and awareness on OH&S to all staff are important to make them familiar with the OH&S management system and to get employee participation in OH&S programmes.

Top management shall ensure that personnel are competent to perform tasks that may impact on OH&S in the workplace. These training and awareness programmes shall cover the roles and responsibility of employees in achieving conformance, including emergency preparedness and response, and requirements related to potential consequence of departure from specified operating procedures. Worker participation in preparation of OH&S activities and OH&S programmes will make them aware of risk management.

Documents and records play a major role in OH&S management system. OH&S procedures, relevant work instructions, state and company legal requirements and specifications could be consider as documents and OH&S records consist of data and information need to be controlled properly to make consistency in OH&S management in the workplace.

It is important to establish safety teams in a workplace with a leader appointed from the top management to look after the safety and health of employees.

Nowadays industrialists have realized that employee safety and the quality of the working environment are improved by implementing OH&S management systems because objectives and responsibilities are made clearer and all employees are prepared to effectively deal with any future hazards. OH&S management system, OHSAS 18001 (Occupational Health & Safety Assessment Series) could improve the efficiency of internal operations and consequently reduce risks, danger and downtime. Sri Lanka Standards Institution (SLSI) is the only national standards body in Sri Lanka who certifies companies against OHSAS 18001 with the assistance of its auditors. SLSI’s Systems Certification Division is cooperative and provides necessary information to the industry to upgrade its OH&S management system through a gap analysis as a prerequisite of OHSAS 18001 certification.

Economic update

Today’s edition of Benchmark will feature Mahatma Gandhi’s granddaughter Ela Gandhi.

This advocate of peace and non-violence will address the programme’s estimated 1.1 million viewers on how civil society in Sri Lanka can make a difference today as regards conflict, negotiated settlement and human rights violations.

An update on the state of the economy-especially in relation to the Central Bank’s policies as well as key macro indicators such as inflation, interest rates and revised country ratings, as well as

a snapshot of the employment climate will also be featured in the programme.

Further, a cross section of corporate Sri Lanka will speak out on the regular ‘Voice Of Business’ segment-this week, the focus is on real ramifications for the business community of ‘going green.’

Benchmark is presented by LMD with the programme aired on TNL on Sundays as well as on LNB’s (cable TV) Bloomberg segment on Mondays.

10th anniversary

Quantum Tele-Shopping (QTS), the country’s leading Direct Response TV Company celebrates 10 years of operations in Sri Lanka this year.

Founded by Nomal Wijeyaratne as DRTV Products (Pvt) Ltd., and having had started out as a single store, it has since grown into a company with a retail base in excess of 200 outlets through Singer and Dinapala covering almost 85% of the country.

"Our mission is to introduce Sri Lankan consumers to new and innovative products which would enhance their lifestyle, ranging from fitness and personal care to cookware and vehicle products," Wijeyaratne said.

In celebration of its 10th anniversary, QTS offers its customers a lifetime warranty (LW) on its fitness equipment.

This is the first time a Sri Lankan company has offered an LW to its consumers.

35th service point

DFCC Vardhana Bank (DVB)will open its 35th service point at Peradeniya on Thursday.

In recognition of the importance of this milestone, DVB will be presenting gifts to customers making deposits during the opening week of the new service point.

The new service point will operate as an extension office of DVB’s Kandy Branch. DVB also has an extension office at Katugastota.

The new Peradeniya service point will be offering customers a range of commercial banking services concurrent to those offered by other DVB branches.

Koluu at Gravitas

Popular drag artiste and diva Hemalallindre Ranawake–better known as Koluu, will add to the glamour of the annual Hoteliers’ Ball Gravitas 2008 at Waters Edge on May 31, 2008.

The performance will be a short cabaret titled ‘Memories of a holiday’. Based on three songs and performed by six artistes–including Anushan Perera, Shohan Chandiram and their troupe, as well as Koluu himself.

The cabaret will weave together elements of colour, song, dance, drama and laughter, making it an undoubted hit at the event. It’s organised by the Ceylon Hotel School’s Graduates Association.

New store

ODEL expanded its offering to shoppers recently with the opening of the brand’s outlet store.

Odel Outlet offers a variety of clothing, homeware, accessories, shoes and many more at discounted prices. It’s located at Ward Place.

5% off

American Express (AmEx), the credit card acquired and issued in Sri Lanka by Nations Trust Bank PLC (NTB) announced the launch of a new benefit which will offer AmEx Card members a 5% saving on their monthly electricity bill.

Currently AmEx is the only credit card facilitated for bill payments at both CEB and LECO and is also the only card accepted at the NWSDB.

NTB DGM Consumer Banking Renuka Fernando said, "We believe in offering value additions that are unique, specific and meet with the needs of today, and we are confident that this facility will be of value to our card members."

Automatic Bill Settlement (ABS) is a convenient solution to arrange monthly bills and subscriptions payments which will be facilitated and paid through the AmEx credit card. This ensures that monthly payments are made on time, thereby avoiding the hassle of filling in forms, standing in queues and taking time off to attend to these payments monthly.

ABS is available for a host of other solutions as well.

Anchor up Rs. 65.20

Anchor milk has raised the price of their 400 gram welfare pack of milk powder by 33.4% (Rs. 65.20) to Rs. 260.20 from this month.

"They have informed us of this price increase," Consumer Affairs Authority (CAA) sources who did not want to be named told The Sunday Leader.

They said that these welfare packs which cater to the indigent, are generally sold through cooperative and government run Lak Sathosa outlets.

The sources said that this price increase was allowed on the condition that milk powder manufacturers do not increase the prices of their "normal" milk powder packs, such as the 400g packs which are currently priced at Rs. 275, for a further three month period beginning from May 1.

Manufacturers who entered into this new agreement were Anchor, Lakspray (Lanka Milk Foods), Maliban and Nespray, they said.

They said that the welfare pack is a basic pack, divorced of "sophisticated" packing, associated with the usual milk powder pack.

The sources were unaware whether the other manufacturers too had increased the price of their welfare packs.

They however said that the government retailing a 400g pack of milk powder pack under the brand name Candy at Rs.245, had also helped to curb the demand from private manufacturers to increase the prices of their normal milk powder packs.

Call rates increase 400 bp

The spot middle rate of the US dollar held steady at Rs. 107.80 on Friday (the same level as on Thursday), with thin demand for the dollar on account of the long weekend, market sources said.

Turnover on Friday may have even been under US$ 20 million, they said.

However, overnight call money market rates, the rates at which commercial banks lend to each other for a day even went by 400 basis points to 19% on Friday because of banks having to cover up their short (statutory reserve ratios as per Central Bank guidelines) positions for a longer period due to the extended weekend on account of the Vesak holidays, they said.

A proposal to convert a locally listed firm into an investment vehicle targeting investments in both the Colombo and regional bourses is expected to be looked at favourably by the Securities and Exchange Commission of Sri Lanka, informed sources said.

Walker and Greig Ltd., (Greg) an old engineering firm acquired by Lionhart Investments, a UK based hedge fund last year, is planned to be used for this purpose, with some Rs. 25 billion allocated for such investments-ie Rs. five billion for local investments and Rs. 20 bilion for foreign investments.

Greg, a listed company, has since undergone a name change to Environmental Resources Ltd.

Yields decline

Treasury bond (T. bond) yields continued with their descent after the government, following on the partial opening of the T. bond market for foreign investments last year, allowed the same in regard to the T. bill market recently.

As a result, T. bonds of a 20 month tenure at Friday’s auction fell by 11 basis points (bp) over the weighted average yield (WAY) commanded at Tuesday’s auction to 17.79%, while the WAY of T. bonds of a 33 month tenure fell by 10 bp to 16.90%.

Friday’s auction was for the issue of Rs. 500 million each of T. bonds of 20 month and 33 month tenures respectively.

While Rs. 450 million was accepted from the market for T. bonds of 20 months tenure, only Rs. 100 million was sold to the market of T. bonds of 33 months tenure.

With market perception continuing to remain strong that foreigners will now subscribe to the Treasury bill (TB) market now that it has been partially opened to the same, TB weighted average yields (WAYs) for all three tenures continued their downward trend at Tuesday’s TB auction.

WAYs on 91 day bills dropped by 54 basis points (bp) to 17.55%, 182 day bills by 11 bp to 18.50% and 364 day bills by 19 bp at this auction. This offer was for the re-issue of Rs. 11,000 million worth of TBs, of which Rs. 6,000 million was accepted from the market and the balance retired.

China’s aviation and tourism markets are growing rapidly and have the strongest potential in the global travel industry.

The first quarter of this year has shown a 20.7% increase from China to Sri Lanka with 3,276 tourist arrivals, a positive trend that is expected to continue with the promotional efforts of SriLankan Airlines and Sri Lanka Tourism. SriLankan now flies to 41 destinations in 22 countries across Asia, the Middle East and Europe.