Postal services assets, primarily its islandwide network of post offices and sub post offices could be used to generate additional revenue if space in those outlets are rented out to other commercial establishments, a report said.

The report, which has as its prime focus to enhance the revenue of the loss making Sri Lanka Posts (SLP) was handed over to Posts Minister Mahinda Wijesekera at the SLP Hqrs. bldg,, on Wednesday.

 SLP is the only organization having islandwide outlets (some 4,703 outlets) providing "easy" access to every household. This facility will be "gladly" embraced by other institutions that do not have such infrastructure facilities. There are many institutes such as telephone companies, internet service providers, electricity companies, Water Supply Board, insurance companies and local government authorities who want to collect revenue from their customers and are looking for operational space, post offices may fill this vacuum,  the report said.

SLP, formerly known as the Postal Department, made a Rs. 2.3 billion loss last year. It has accumulated losses totalling Rs. 11.2 billion over a 12 year period beginning from 1996.

Among the recommendations made in this document which was prepared by Deputy Post Master General K.A.S. Senadhira were to take advantage of the fact that many commercial banks were waiting for a tie-up with SLP to receive more agency services, including using the postal network for foreign money remittance. HSBC already uses post offices for credit card payment settlements.

The Senadhira report further said that postal insurance and postal banking are the new areas to be considered by SLP as new financial services, if permitted by the Finance Act.

It said that the SLP network may assist these types of institutes by permitting them to utilize the post office as an outlet to collect their revenue from their customers and make the post office more useful and customer friendly.

"Identify the institutes that need agency services through post offices, develop the legal framework and obtain approvals and negotiate financial terms and conditions," the report recommended.

SLP could "easily" handle through their experience and capability: issue of revenue licenses, banking agency services, insurance agency facilities, rural credit facilities, selling of Treasury bills/bonds, air ticketing and water and telephone bill payment acceptance.

It also observed that the business community who represent less than 20% of SLP's total customer base brings more than 70% of the total volume of mail to SLP.

The Senadhira report also said that recent estimates of the cost of service provision put the cost of delivering a letter around Rs. 12, against the present postage for an ordinary letter (except business letters) of Rs. 5.

SLP has some 19,000 employees, of whom 7,000 are postmen. Its total income last year was Rs. four billion, however its expenditure was Rs. 6.3 billion, causing a Rs, 2.3 billion deficit.

Remittances thru' post offices

The Postal Department is discussing with a remittance service and a private commercial bank to introduce remittance services in postal outlets.

The Department operates some 650 post offices and 3,500 sub-post offices islandwide.

The service providers with whom the Department is having discussions are Western Union (WU) Money Transfer Service and DFCC Vardhana Bank (DVB).

Posts Minister Mahinda Wijesekera speaking at the Postal Department Hqrs., Bldg., on Wednesday said that the necessary space available for such banking operations will be rented out to them.

The Minister said that the Department made a Rs. 2.3  billion loss last year. Its expenditure this year is forecast at Rs. eight billion, and next year, Rs. 10 billion.

"Such steps will help us to mitigate such losses through the rent income received," said Wijesekera.

The Department has some 19,000 employees.

At present, still the main types of remittance service in the country are the traditional telegraphic transfer systems and bank drafts which are costly, WU Sri Lanka Marketing Manager Imran Carim told The Sunday Leader.

The Postal Department also has a tie-up with HSBC for credit card settlements.

"We will be negotiating with other banks, to get them also into this scheme," Posts Ministry Secretary W.M. Piyasena told The Sunday Leader.

He said that the Department was talking to Moratuwa University and Dialog Telekom for networking of their branches and utility bills settlements, by the consumer making use of the Department's islandwide postal network to make those payments which will be transmitted electronically.

Rice & Inflation

"Sense and Nonsense of Rice Price Controls in Sri Lanka" and "Causes and Consequences of the current Inflationary trend in the Country" will be the topics of discussions by two academics at the Sri Lanka Institute of Development at 4.15 pm on Wednesday.

These issues will be addressed by Peradeniya University's and Colombo University's Senior Economics Lecturers Drs. O.G. Dayaratne Banda and Sirimal Abeyratne respectively.

The event will be moderated by Ceylon Chamber of Commerce Deputy Chairman Dr. Anura Ekanayake.

It will be preceded by the launch of the Sinhala Economic publication titled "Economy of Sri Lanka: Liberalisation and Development" consisting of twelve analytical papers by senior academics of Peradeniya University.

This event is organized by the Pathfinder Foundation, in collaboration with the Colombo and Peradeniya Universities Economic Faculties  and the Sri Lanka Business Development Centre.

Sold out

All 300 stalls in "Construct 2008" which will be held at the BMICH from August 8-10 have been sold.

Arjun Dharmadasa, Managing Director, Lanka Exhibition & Conference Services (Pvt.) Ltd., told The Sunday Leader  that the reason for this success was because exhibitors wanted to be the first mover in the event peace dawns upon the country.

Each of these stalls are priced at Rs. 80,000. There are foreigners too participating in the exhibition, said Dharmadasa, who, together with the National Construction Association of Sri Lanka has been organizing this annual event in Colombo for some time.

Captive funds invest in T. bills

Last week's Treasury bill (T bill) primary auction saw weighted average yields of 182 day T bills coming down marginally by eight basis points to 18.06%, while those of 364 day T bills stagnated at the 18.40% levels. There were no parcels of T. bills of a 91 day maturity, on offer at this auction for the second consecutive week.

This auction was for the re-issue of Rs. 8.5 billion worth of maturing T. bills, of which Rs. 3,193 million was re-issued to the market, while offers for the balance were rejected-which market sources interpreted to mean that the CB got captive funds to invest in the remainder.

50% Sri Lankan

An event management company which is hosting a construction exhibition in the Maldives expects 50% of the participants to be from Sri Lanka.

"There are a total of 100 stalls for sale, of which 65 stalls have been so far sold, with Sri Lankans having had already taken 35 of those stalls, that's how I arrived at the 50% figure, Imran Hassan, director, Lanka Exhibition & Conference Services (Pvt.) Ltd., told reporters on Wednesday.

Stalls are being sold for US$ 1,260 (Rs. 136,000), ie those of nine square metres in area.

He said that the latest entrants to the thriving Maldivian leisure sector, other than the traditional Aitken Spence and John Keells Group were the Galle Face Group and Jetwing Hotels.

Hassan said that the Maldives was opening up 40 new islands for construction this year.

The Maldivian Construction Exhibition will be held at Male from July 7-9.

Foreigners subscribe to only $ 60 mn. worth of T. bill outstanding

With interest rates in Sri Lanka fetching a high of 18% compared to a mere 2% for US Treasuries, it makes sense to invest in Sri Lanka rupee Treasury Bills (T bills) because of its higher yields, market sources who did not want to be named told The Sunday Leader.

The government last month opened 10% of the T bills outstanding market amounting to some $ 300-400 million for foreign subscription, of which only around $ sixty million have so far been subscribed.

Some market sources said that the slowness of foreign subscription to T bill outstanding was because the majority of foreign funds did not want to subscribe to this issue on moral grounds as they felt that the moneys so accrued to government coffers would be utilized to fund the war.

Another segment of foreign investors don't have confidence in the local economy, that's another reason for the poor subscription in T bill outstanding, they said.

But others said that as this issue was out hardly a month ago, this was its gestation period. They cited the example of the T bond market which, though partially opened (initially 5% and subsequently doubled to 10%) in November 2006, the splurge of subscriptions took place only in February-March 2007, three months later.

 However, to date not more than 6% of this amount has been subscribed, though, what is available for foreign subscription is 10% of T bond outstanding.

Total T bond outstanding is Rs. 1,146,470 million; of which Rs. 62,356 million has so far been subscribed by foreigners.

This is because the appetite in the market is for T bills which are of a shorter tenure, they claimed.

Total T bill outstanding amount is Rs. 344,659 million.

Meanwhile, the US dollar closed Friday at the Rs. 107/85/90 levels, unchanged over Thursday's closing figures.

Overnight call money market rates, the rates at which commercial banks lend to each other for a day, moved up by 20 basis points on Friday, over that of Thursday's weighted average rate (WAR) to close the week at 15.95%, with the market being squared (no surplus nor short of liquidity).

Sources expected overnight call rates to go up by a further 25 bp in the week beginning tomorrow, which they said was the usual fluctuation in interest rates seen in the market these days.

High interest rates hit bourse

With investors preferring to invest in fixed income due to the prevailing high interest regime rather than in the Colombo bourse, saw the benchmark ASPI ending the week at 2,499.61 points; down 38,76 points over the previous week's closing figure, while the more sensitive MPI fell by 61.64 points, to finish the week at 3,005.24 points.

Turnover on Friday was a modest Rs. 144.7 million, following Thursday's turnover figure of Rs. 148.8 million.

Motor bike sales to hit 50,000

Sri Lanka's second largest operator in the two wheel range expects sales to grow year on year (YoY), from 30,000 to 50,000 in the current financial year.

"Expected sales would have had been higher if not for the country situation, Chanaka Yatawara, a director at TVS Lanka told The Sunday Leader on Wednesday.

TVS Lanka, a Rs. 2.5 billion company, is a joint venture between TVS India, a leading two wheeler manufacturing company and United Motors PLC, local agents for brand new Mitsubishi vehicles, the market leader in that segment.

Yatawara is also the CEO of United Motors.

He said that two wheeler growth would be spurred from the 125 CC category which is expected to grow by 30% YoY.

"We suffered an overall retardation in growth last year due to the unavailability of the 125 CC category to the local market as a result of our manufacturers having had to service the African market, but they have informed us that those shortages will not be there this year," Yatawara said.

"With costs growing steeply, especially in the 4-wheel sector, we expect Group companies such as TVS to assist us in sustaining growth," he said.

TVS Lanka has some 12 products on offer.

On Wednesday, they introduced "Flame," a 125 CC motor-bike with a 3-valve CCVTi engine to the local market.

With a top speed of 95 kilometres per hour, this bike is priced at Rs. 128,000 per unit, excluding VAT.

"This appeals to the urban male in their 20s, 'they are smart and stylish,' " C.P. Gopinath, Assistant General Manager TVS Motor Company introducing "Flame" to reporters said.

TVS Lanka General Manager Gihan Pilapitiya said that with a Japanese bike costing over Rs. 500,000; the Indian made 125 CC could however be bought for less than Rs. 150,000.

TVS Lanka National Sales Manager Malaka Vehalla referring to "Flame's" fuel consumption said: "As you ride, the bike will indicate how much fuel you are consuming."

10% royalty for oil

The government has awarded an offshore block off the West Coast, and South of Mannar to Cairns, India for oil prospecting.

There had been two other bidders for this block which comprises some 3,600 square kilometers in extent, beginning from a minimum depth of 10 metres and going  down to1,500 metres.

 Studies have shown that there is a 60% chance in striking oil, Director General Petroleum Resources Secretariat Dr. Neil de Silva told The Sunday Leader. He however said whether there was oil available or not available in the region would be known only next year or in 2010 when oil prospecting works are underway.

In the event they strike oil, they would have to pay a 10% royalty fee to the government. In addition they would have to pay a "signature bonus" amounting to US$ one million for oil prospecting.

Cairns India's parent company is in the UK.

Earlier, de Silva speaking at a seminar said that there should be at least 500,000 barrels of oil for such an oil exploration venture to be commercially viable.

De Silva expected the company to sign the petroleum resources agreement with the government in the next few weeks. The other bidders for this block were ONGC Videsh, India,-a Government of India enterprise and Nikko Resources, a UK company.

The government has in total earmarked five parcels for oil exploration, of which one each has been earmarked for the Chinese and Indian governments, though prospecting is yet to start. The government also called for bids for oil exploration for a third parcel, but cancelled the same after receiving only one bid.

Janashakthi IPO fillip to bourse

Janashakthi Insurance Company Ltd., will go public on June 16.

In an initial public offering (IPO), it will be offering 10% of its equity (after subscription) at a discounted price of Rs. 12 per share.

"It is a discount, considering the fact that other insurers which have gone public see their share prices fetching values of Rs. 212 (Ceylinco Insurance), Union Assurance (Rs. 66), Eagle Insurance (Rs. 143) and Asian Alliance Insurance (Rs. 40) currently, the company's General Manager (Finance & Planning) Bertal Pinto-Jayawardena told reporters on Thursday.

"We are offering it at a discount to make it easy for investors," he added.

"This is an attractive price, all small and medium investors will grab it," Merchant Bank of Sri Lanka Ltd's (MBSL's) Deputy Director Capital Markets A.M.A. Cader said. MBSL are managers and registrars to the issue.

This is only the first IPO to be opened at the Colombo Stock Exchange after a lapse of two years. "The success of the IPO may give a fillip to the market which is now depressed," Janashakthi Managing Director Prakash Schaffter said.

With current capital funds of Rs. 1.7 billion, this exceeds the capital requirements set forth by the Insurance Board of Sri Lanka (IBSL) to be achieved by 2012, he said.

IBSL expects insurers to have a capital requirement of Rs. 500 million each for each class of insurance by 2012. Currently this requirement is only Rs. 100 million.

"Our asset base exceeds Rs. 10 billion,"Schaffter added. "Our flagship brand is the Full Option brand, one of the leading motor insurance brands in the country," he further said.

Janashakthi in the financial year ended December 31, 2007 saw revenue exceed the Rs. five billion mark (Rs. 5.2 billion), while it made a Rs. 525 million net profit. In the year under review, its life premium income grew by 18% year on year (YoY) to Rs. 1.5 billion, while non life premium which made the balance, grew by 17% YoY.

The company in the three months ended March 31, 2008 saw revenue grow from Rs. 1.1 billion to Rs. 1.3 billion YoY and a loss of Rs. 85.4 million recorded in the first quarter of last year being converted into a profit after tax of Rs. 56.1 million in the current first quarter.

The company with 112 islandwide branches, is the insurance company with the second highest branch network in Sri Lanka. Janashakthis was also the first private sector insurer to venture out into the Maldives, which was in 1996.

The company will initially offer 16.5 million shares (5% of the new equity) and in the likely event of the issue being oversubscribed, it will offer another tranche of 16.5 million shares to the market, its chairman W.T. Ellawala said.

Janashakthi which is controlled by Chandra Schaffter and family (and which currently hold well over a 90% equity stake in the company) will utilize the moneys so raised (Rs. 396 million) to strengthen its brand presence in the country, IT system, expand its branch net work and strengthen its human resources-the company has a 3,000 strong sales force.

Gifts at Abans

Abans, the company that is always in the forefront when it comes to giving their customers value for money, has launched a "Free Gift Promotion" where a valuable gift will be be given to customers who buy any of the items on promotion. The gifts include TVs,  DVD  Players, HP Printers, Pen Drives, Mobile Phones, Table Fans, Steam Irons, Pyrexware and more.

The products on special promotion have been selected to give consumers the opportunity of buying quality, products of the world's best brands at affordable prices.

 Some of the products on offer are LG and Haier Televisions, LG and JVC Hi-Fi systems, LG Double Door Refrigerator, Fully Automatic Washing Machine, LG Microwave Oven, Elba Gas/Electric Cooker with Oven, LG Dual Core Desktop Computer, HP Notebook, Jialing (motorcycle) Three-wheel truck, and Jialing JL90 motor cycle.

And there's more good news for consumers. You can buy as much as want without worrying about your budget, because you can avail yourself of Abans "No Poli More Jolly" interest free instalment scheme when buying the products on promotion. So you can take home everything you need, at affordable prices, on payment terms that suit your budget, with a free gift to top it all up.

The promotion is now on at all Abans Showrooms and Elite Showrooms islandwide, A-World-Crescat/Welisara and Nexxt@Abans Showrooms.  All products on "Free Gift Promotion" carry the Abans guarantee of quality and durability and an efficient, after-sales-service by Abans Service Centre.

Brandix wins export award

Brandix, manufacturer of branded clothing has once again been recognized as the country's largest apparel exporter by the Export Development Board (EDB).

A ranking of Sri Lanka's top exporters on the basis of export turnover for 2007/08 was released by the Board last week, at a meeting convened by Export Development Minister Prof. G. L. Peiris to felicitate these companies and meet their representatives.

Brandix CEO Ashroff Omar said: "The concluded year was one of the most challenging ever, but it was also the year in which Brandix launched the highest number of projects. We remain committed to investing in future growth and it is heartening to see that our contribution to the export economy of the country has been noted by policymakers."

Among the significant new projects in 2007/08 was the conversion of the Brandix Casualwear Seeduwa factory into a Green plant, for which Brandix is aiming to secure the highest global certification, Omar said. The Group also plans to make all of its manufacturing operations eco-friendly and has set itself the target of reducing its carbon footprint by 35% by 2012.

One of the highlights of the concluded year was the opening in January 2008 of Brandix Mercury, a Shared Services Centre, and the migration of virtually all the Group's financial accounting processes to the unit, transforming the way service functions are performed.

Comprising 25 fully integrated manufacturing facilities backed by strategically located international sourcing offices, Brandix provides direct employment to over 25,000 people. The Group specializes in casual bottoms, intimate wear, active wear,textiles, knitted fabrics, sewing and embroidery thread, accessories and hangers as well as wet processing, finishing and fabric printing.

Save & Win

"Seylan Grameen Ithurum Ginum" Savings Account could be opened by any Sri Lankan over 18 years of age with a minimum deposit of Rs. 1,000. It is a Savings Account that pays a high interest of 12% pa. and also allows unlimited withdrawals for the convenience of the accountholder.

In addition, a draw is also on the cards with the Grand Draw to be held at the end of the calendar year from the date of launch, offering a house worth of Rs. 4 million as the Grand Prize and also a Micro Trend Car along with 10 Ceygra motorcycles, 25 mobile phones and 250 mountain bicycles.

"Seylan Ithurum Dinum" Savings account holders do not have to wait till the Grand Draw, as prizes such as a Ceygra three wheeler and  five Ceygra motorcycles, 10 mobile phones and 40 wristwatches are offered at the three quarterly draws to be held at the end of every three calendar months.

As such the first quarter would run upto August 31, 2008;, the second quarter from September 1  to November 30, 2008 and the third quarter from December 1, 2008 to February 28, 2009.

The annual Grand Draw would accommodate qualifiers from the first three quarters who also qualify in the fourth quarter. In addition to the attractive prizes mentioned above, the following benefits also could be won in the Grand Draw by parents for their children and senior citizens: 50 scholarships of Rs. 25,000 each for students who pass the Grade 5 Scholarship Examination, 50 scholarships of Rs. 25,000 each for students who pass the Ordinary Level Exam and 20 scholarships of Rs. 50,000 each for students who qualify for university entrance and medical expenses of Rs. 25,000 each for 50 senior citizens.

Or, A Gold coin equivalent to the value of the above benefits at the winner's request.

The launch of this savings account is to generate enthusiasm among investors who  wish to receive a high rate of interest (12%pa) and also  eligibility  in the draw which offers a wide array of attractive gifts and items of utility value for those from all walks of life.

As envisaged by Founder Chairman Dr. Lalith Kotelawala, the scheme would also help to eradicate poverty through the grameen concept, thereby helping to meet one of society's greatest challenges head on.

Housing loans for seniors

By Ranee Mohamed

Home is where the heart is, and Sampath Bank is reaching out to the very heart of the nation with their newest product under the Next Generation Loan Scheme which falls into their main Sampath Sevena Housing Loan Scheme.

Under this next generation loan scheme, both father and son or mother and daughter, or in short a parent and child can get into a further bonding by obtaining a loan together and paying it together. Explaining their newest product, Assistant General Manager Commercial Credit and Development Banking Upul Karunaratne, said that the scheme  has come into effect because Sampath Bank has felt the need for such a  product.

A parent around 50 years of age, under normal circumstances  will be able to obtain a loan for up to ten years. But under this scheme the father or mother can jointly borrow with his or her son or daughter, said Karunaratne.

He said that this joint borrowing will thereby extend their repayment period upto 15 to 20 years. The conditions of suitability are that the take home salary of the son or daughter ought to be at least Rs.20,000 and that the father ought to be less than 55 years, said Karunaratne. Analysing the need for such a product, he observed that in many families where the parents have two children, if the existing house is given to one child, the question of housing for the second child often worries the parents.

Parents may be by this time reaching 50 years of age would therefore be unable to get a larger loan because of the shorter  repayment period involved. It is in these instances that this scheme reaches its goal,pointed out Karunaratne. The Next Generation Loan Scheme records the income of the father up to 60 years of age. The scheme ideally expects the father to repay a substantial amount of the loan during the repayment period and thereafter a small amount is passed on to his offspring for repayment.

The scheme also makes it possible for repayment by lump sums. In a market where house and property rates are fast appreciating, the next generation loan scheme truly makes both the parent and child the winner.

It gives a better deal for the child who will find that in a few years time he will own a valuable  house with only a negligible amount to be repaid by way of a loan, said Karunaratne.

Though the minimum loan amount is Rs. one million, there is no upper limit for borrowing. The scheme also welcomes borrowings from mothers and daughters and fathers and daughters.  "As with all our housing loans we expect the customer to take a mortgage protection policy," elaborated Karunaratne. Given at a 21% interest rate, the next generation loan scheme is considered concessionary compared to other loans.

"Sampath Bank has studied the market requirements and has tailor made this scheme to cater to the needs of a certain segment of our society,"said Karunaratne. Sampath which began operations in 1987 is now in its 21st year. The Bank has 109 branches islandwide. The new loan scheme has shown excellent results a few days after its existence.

Union Bank adds Moratuwa

Union Bank opened its latest branch, at Moratuwa. It was opened by directors Ajit Wijesekara, Malik Samarawickrama, Ananda Athukorla and Alex Lowel.

Keeping with tradition, the opening was preceded by religious observances conducted by religious leaders of the Buddhist, Christian, Hindu and Islamic faiths with the participation of staff, well wishers and customers.

Speaking at the opening of the plush and well appointed new branch, the Bank's Director/CEO Mahendra Fernando, said that it was a delight to welcome well wishers and customers to the opening of this latest branch which was in keeping with a well crafted plan for the bank's future.

He reminded the gathering that Union Bank started operations a little over 12 years ago, on a superior Information Technology platform which has enabled the Bank from its infancy, to be a step ahead of competition. Fernando recalled the many IT related firsts of Union Bank, such as the first bank to offer customers the flexibility to access their accounts from any branch, the first to offer a smart card with which an account could be accessed from anywhere in the world, the first to introduce the convenience of system generated deposit slips, the first to have a 24 hour phone banking service, the first to link up with the internet via own web server, the first to clear cheques drawn on all branches in one day, the first to absorb outstation cheque commissions payable on third party cheques, the first to have e-mail banking, the first to have internet banking and the first in Asia to be awarded the ISO 9002 Quality Certification for the full range of commercial banking operations.

All of these products, innovations and services had enabled Union Bank to attract a loyal customer base, he said, which had been with the Bank through good times and bad.

He said that the restructuring process which had been put into motion in mid 2003 had been a commendable success. Fernando attributed this noteworthy feature to the financial capital that had been infused as well as to the human capital, the latter having been well primed to move in synchronization with the new capital funds, into realizing the goals of the Bank.

Fernando also said that in the period since the restructuring, the Bank has consolidated itself and maintains its distinctive edge through personalized customer care for which it is reputed. He spoke of the appreciable increases that there have been in business volumes and the ever increasing customer base as a result of well-thought out strategies in the various locations in which Union Bank has its branches.

He also spoke of the bank's continuing innovations, amongst which is a unique gold pawning/safe-keeping product which enables one to leave one's gold in safety with the Bank and have its value credited to an account from which such money could be drawn from any Cirrus ATM anywhere in the world, when needed.

He also said that Union Bank is the only bank to accept cheques for same day clearing up to 4.00 p.m., the time that the Bank closes to the public, which is a unique and distinctive feature. He said that the entire process for cheque imaging had been developed in-house, at a fraction of the cost which some banks had spent on the procedure. Fernando concluded his speech by assuring the gathering of Union Bank's unwavering commitment to do superior customer care which has been refined to a fine art by the Bank. He said that the Bank was determined to achieve its vision of being the most admired bank in the country and together with his team, pledged to deliver the highest standards of customer care, with the objective of continuing to build trust and confidence in Union Bank.

Seylan launches Wish Card

Seylan Bank has introduced many value added and innovative products and services putting itself at the forefront of quality changes in the banking industry.

Seylan Bank has also prided itself in strategically leveraging information technology in its endeavour to build relationships for life with its customers in recent times.

One example of this was the launch of Ceylinco Fast Cash, and now the addition of having the Ceylinco Fast Cash Rupee Wish Card, which has brought about a world of convenience to customers.

Seylan Bank has made considerable investments in information technology to further develop "Fast Cash," the fastest growing international Money Transfer Service which expanded its reach to additional countries enabling Sri Lankans living abroad to conveniently remit funds to their loved once back home, increasing total inward remittances and thus contributing to the economy.

The Wish Card takes away the hassle of having to carry cash around, just like credit cards and has the same safety features of credit cards. If a card is stolen or lost, cardholders will be notified via SMS when a purchase is made, and will be compensated with a new card as well as any money stolen.

To start with, the Wish Card is issued over the counter free of charge at any Seylan Bank branch island wide (115 banking centres) and if this isn't enough, due consideration has been given to the delivery of the Wish Card to the customers' doorstep free of charge upon request.

The Wish Card could be credited with the rupee equivalent of the remitted amount and could be used to withdraw funds from any VISA enabled ATM without a charge or utilise it at any VISA merchant to buy goods.

Money can be withdrawn within minutes, or the money can be remitted directly to the card if the customer does not have an account.

Cardholders are informed via SMS after each remittance with immediate effect, along with the account balance after each transaction, a safety feature similar to that of credit cards.

The Wish Card can also be reloaded any amount and there are over 1,200 ATM locations islandwide available for transactions.

What's more is that there are no extra costs for cash withdrawals of checking of available balance at any VISA merchant outlet for goods and services.

NMS from Suntel

Suntel Ltd., one of Sri Lanka's largest MPLS IP VPN networks recently announced the availability of Network Monitoring System (NMS) with its managed services umbrella Suntel Enabled.

 NMS allows clients of Suntel Enabled to manage and monitor a large heterogeneous network with ease. The system is powered by CA Spectrum and eHealth solutions, which provides comprehensive, vendor-independent technology that helps pinpoint areas of network performance degradation and generates real-time management reports to identify the causes of problems.

"What differentiates NMS from similar applications is the fact that it provides proactive protection for networks with varied and extensive operations serviced by different devices from diverse vendors. This system is a solution for organizations that need a centralized programme to manage their ever expanding corporate communication networks," said Corporate Sales Head Ranjith Fernando.

In addition to email and SMS notification of network failures, a few of the other advanced features offered by NMS include network availability monitoring and surveillance, fault management and resolution, performance monitoring and reporting and customized service levels.

"The NMS tool powered by CA ehealth and Spectrum has been implemented successfully at Suntel, the first telco operator to have this in Sri Lanka. CA believes in providing IT infrastructure management solutions that enable customers to bring down cost and increase efficiency. "We are happy to see the commitment Suntel has towards their customers to offer better service by focusing on increasing efficiency of their networks," said India and SAARC region Sales Director, Ram S Vardarajan.

Suntel currently operates one of the largest IP VPN networks in Sri Lanka.

Its Ethernet network spans across 221 towns and is probably the largest in the corporate sector. The IP VPN currently has around 80 customers with multiple locations connected. On average these networks connects a minimum of 4-5 locations whereas some networks connect more than 200 locations. Apart from this the government has made many projects to be initiated in time to come and Suntel is a frontline bidder for these projects.

Apart from the IP VPN set, Suntel also invested in to its IDC, the first to be certified under ISO 14001 IEC for managed services. Due to its lucrative corporate customer base Suntel can cross sell similar products across the base, and currently possesses a knowledgeable workforce that can support such systems.

The partnerships Suntel currently enjoy include Microsoft, CISCO, Red Hat linux, HP, Verisign and Fortinet.. These partners work hand in hand thus enabling Suntel to offer clients' turnkey solutions.

NTB partners JKH

Nations Trust Bank PLC (NTB) in partnership with John Keells Holdings entered into an agreement to facilitate NTB Personal Banking Centre (PBSC) at all Keells supermarkets.

The Personal Banking Centre will offer automated services to withdraw cash, make transfers, pay utility and Amex credit card bills as well as other conveniences with support staff to provide a "greater" level of information.

The Bank already boasts a PBSC at Keells Super outlets in Negombo and Peliyagoda.

Best life insurance advisers

The Insurance Association of Sri Lanka (IASL), realizing the importance and emerging need for further improvement of the life insurance industry, brought together the  "best" insurance advisers in the country and organized a National Forum for Life Insurance Advisors (NAFLIA) recently.

 This "unique" event was held for the second successful time in Sri Lanka, was not only a coming together of the nation's best in the life insurance industry, but was also considered to be a unique learning experience that would bring about the exchange of ideas as well as being a novel concept that would promote better understanding within the industry, which enabled those concerned to serve the nation better.

"This is the second forum of its kind which had a successful participation turnout with around 800 participants. There were presentations done by local as well as international presenters. The Insurance Board of Sri Lanka as well as the Sri Lanka Insurance Institute supported this endeavour and this year the forum was conducted under the theme 'Pledge for Life.'

"We also plan on making this an annual event, where in which the cream of the industry will meet once a year", says IASL President Jagath Alwis.

HSBC donates $ 221 mn.

HSBC has presented a donation of HK$220.7 million to China Red Cross Society's Hong Kong branch to support the recovery work required in the earthquake affected areas of mainland China.

This sum represents the single biggest donation that the Red Cross has received to date for this purpose.

The contribution comprises a HK$20.5 million donation from HSBC's charitable arm,the Hongkong Bank Foundation, and a HK$200.3 million donation raised from HSBC employees, customers and the public through the Bank's dedicated account, the HSBC China Earthquake Relief Account,  recently. During this period, in excess of 117,000 individual donations were received from 15 countries and territories.

At HSBC's request of, Red will allocate the donation for: Rebuilding of schools and essential education facilities; Rebuilding of hospitals, clinics and rehabilitation centres with critical and

advanced medical equipment and supplies and providing rehabilitation and  psychological support services to people in need and rebuilding of houses and relevant water supplies facilities

HSBC Asia Pacific Region Corporate Sustainability Head Teresa Au presented the donation to Hong Kong Red Cross Chairman Sir T L Yang.

She said: "On behalf of HSBC, I would like to thank our employees, customers and the public for their generosity in aiding earthquake relief efforts throughout the affected areas."

Double the no. to S'pore

Seylan Bank's "Tikiri," the children's Savings Account with the highest value additions has once again launched a promotion to reward regular savers.

This year, 25 lucky "Tikiri" kids would get an opportunity to spend an exiting and fun-filled 3 nights 04 days in Singapore, with star class hotel accommodation.

Each winner could be accompanied by a parent/guardian.

Every Rs. 500 deposited to a "Tikiri" Account during the three months promotion which ends on August 12, 2008 would get one chance in the draw to choose the  lucky winners who would enjoy this privilege.

The tour would include ample opportunities for fun, excitement and education.

The winners would go on the Night Safari, visit the Jurong Birdpark, enjoy the fantastic Sentosa Full Day Tour including the Cable Car Ride, the Dolphin Lagoon, Underwater World & Songs of the Sea and the Bumboat Ride.

An additional 50 winners, along with their families would be entitled to a fun-filled day's enjoyment at the "Leisure World" Theme Park, Hanwella.

Last year, off a similar mega promotion and draw, 25 kids with one parent each   accompanied by Child Star Miss. Sarala Kariyawasam-Brand Ambassador for "Tikiri" enjoyed the delights of Disneyland, Hong Kong.

This year too Kariyawasam would be involved in the promotion and the Singapore tour as well.

GSP + & garments

"Our industry is mature,it is over 30 years old and there's good knowledge among middle-management ranks," Ajith Wijeyasekera tells LMD

Union Apparels Managing Director Ajith Wijeyasekera says in this month's (June) issue of LMD: "We provide comfortable environments for our workers and have deployed much time, effort and money on improving conditions to get the best out of our workforce."

He adds: "We have a relatively productive workforce that can be driven

forward if we have a tool to drive them with"-thereby emphasising the need to train the existing workforce.

Elaborating on the current state of the industry, he notes: "Our exports to the EU have grown because of the GSP Plus advantage." However, he laments over the decline in exports to the USA, most probably as a direct result of an impending recession.

SWOT analysing the apparel sector, Wijeyasekera identifies one of its biggest strengths to be its workforce. "They are knowledgeable and possesses the requisite skills." However, he notes the 'lack of employees' to be a major weakness, but blames "insufficient image building, to encourage people to work in this industry"-as well as the ever-rising cost of living that Sri Lankans have to endure, as being major impediments.

He notes the presently relatively stable rupee as being a short-term

opportunity, giving Sri Lanka a temporary advantage over countries such as India and China. But Wijeyasekera adds low-cost countries like Bangladesh (which) are offering lower prices to his list of threats facing our apparel exporting prospects.

He asserts that the industry lacks awareness and not enough respect is afforded to garments workers in this country.

"If GSP Plus is rescinded and the garment industry declines, there'll be a huge loss of jobs and more despair among the people," Wijeyasekera concludes.

Rs. 1.2 bn., in annual bonuses

Life insurance leader Ceylinco Life declared a colossal Rs 1.2 billion in annual bonuses to 270,000 policyholders from the surplus generated by its Life Fund last year (2007).

As much as 90% of the surplus generated from the participating business has been reserved for payment of bonuses to participating policies this year.

This year's bonus payout reflects an increase of 24.6% over the Rs 955

million paid by the company last year.

All policyholders, whose policies were active as at December 31,2007 are eligible to receive these bonuses.

These bonuses are in addition to Ceylinco Life's 'Avurudu' cash bonuses paid out a week before the national new year. This year, Ceylinco Life paid out Rs. 19 million in cash bonuses to policyholders who completed 10 and 15 years with the company.

"The noteworthy growth of our bonus payout year on year reflects the company's sector-leading growth momentum," Ceylinco Life Director Mrs Amali Seneviratne said.

"We have ensured that our policyholders' investments in life insurance consistently yield good returns."

According to the statutory actuarial valuation of Ceylinco Life's Life Fund by independent international consulting actuaries Messrs Watson Wyatt Worldwide, the company's Life Fund stood at Rs 16.8 billion at end 2007, indicating a 21% growth during the year.

The life solvency margin (the difference between the value of admissible assets and liabilities) maintained by Ceylinco Life's Life Fund is more than three times that stipulated by the Insurance Industry Act.

"Ceylinco Life declares bonuses from the very first year of issue of a policy, enabling even a policyholder who obtained a policy in December 2007 to receive a bonus allotment as at December 31," Seneviratne said.

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.

Achievers Golden Night

As one of the fastest growing Insurance Companies in Sri Lanka, HNB Assurance has been able to show profits during every single year, from its inception in 2001.

Because of its steady and sustainable growth, the Company is poised to continue with its forward thrust in the foreseeable future.

All those who contributed to achieve excellent results in sales last year (2007) were commended and felicitated for the 3rd consecutive year at the "Sales Convention 2007" held at Trans Asia Hotel recently.

At the 2007 Sales Convention, Super Gold, Gold, Silver and Bronze medals, return air tickets and other valuable gifts were among the many rewards given to highest achievers of the HNB Assurance Sales Force.

HNB Assurance & Hatton National Bank Chairman Rienzie T Wijetilleke was the Chief Guest. HNB Assurance Managing Director Manjula de Silva & the Board of Directors and general managers were also present.

More than 500 guests added colour to this year's HNB Assurance Sales Convention. Among the other special participants were regional managers, branch managers and sales persons.

After starting its operations in 2001, the Company has set so many records while winning the hearts and the minds of the common people. HNB Assurance became the first to achieve an annual turnover of Rs. one billion within five years of operation.

It also became only the second insurer in Sri Lanka to obtain a Fitch rating and was recently ranked among the 'Top 100 Brands' in Sri Lanka by LMD.

At the sales convention, among many award winners, N.Thirucumar of Colombo North Branch was The Best Sales Person; W.S.C. Perera (Negombo Branch) was The Best Field Manager and Mr K.Pratheepan (Trincomalee Branch) was The Best Field Leader.

In addition to the above awards, Distribution network were "represented" and awarded. "The Best Service Centre to Sujeewa Gunarathne (Puttalam Branch), Best Development Centre to  A.L.D.H.Liyanage (Colombo North Branch), Best Regional Development Centre to Ananda Kulasooriya (Kurunagala Branch) and Best Regional Office to Hiran Fernandopulle (Negombo Branch).

$ 3 bn., saving

Cause of deficit