Laugfs Holdings Ltd., the pioneer in the auto gas retailing and conversion business will open its 20th auto gas filling station at Polhena, Matara tomorrow.

Laugfs Holdings is a 100% Sri Lankan owned company which has interests in energy products, retailing, modern trade (supermarkets), heavy engineering, rubber related exports, salt based chemical manufacture, hotels and automotive and industrial lubricants.

Laugfs Holdings Ltd., Chairman W. K. H. Wegapitiya stressed the importance of using LPG as an alternative fuel for petrol driven vehicles for a country like Sri Lanka.

Being a 100% import dependant country for its petroleum based energy needs, Sri Lanka should be concerned about its energy bill no matter what the level of price crude oil is.

Since LPG has always shown a 40% discount over petrol prices, it has become the most convenient alternative for today’s motorists. Even motorists in developed countries like Australia, Italy and UK, as well as newly emerging Poland, are being encouraged and incentivized to convert their vehicles to LPG, says Wegapitiya.

He also mentioned that upto now Sri Lankan authorities have not given any encouragement for conversions nor have they shown any interest in this area.

Laugfs Holdings operates the state-of-the-art network of auto gas stations in Sri Lanka. With over 15 stations in Colombo and four stations located outside Colombo (Anuradhapura, Kandy, Galle and Kurunegala), the company has over 60% coverage. The newest station at Matara will add to this network, giving the opportunity for motorists in this area to reduce their petrol bills by 40%.

The station at Matara is operated with SK Agencies through a franchise arrangement.

The company believes that this arrangement gives opportunity to local entrepreneurs who are better able to understand local business conditions.

Under the franchise arrangement, Laugfs Holdings will provide the product (LPG), equipment, storage tanks, staff training and technical support for the franchisee. The new auto gas station will be coupled with a lubricant and car care outlet as well as the supply of domestic gas cylinders.

As with all Laugfs stations, this station will also be open 24 hours a day.

Also together with SK Agencies, Laugfs Holdings have tied up with several prominent motor repair shops/garages in Matara to undertake vehicle conversions using its equipment. At present the company is providing training for selected employees from those establishments at its conversion centre in Colombo. From next month motorists in Matara will have the opportunity to get quality certified conversions using BRC kits manufactured in Italy.

MAK enters market

For the first time in Sri Lanka Hero Honda motorcycle users have the opportunity of using their own genuine engine oil. Hero Honda Genuine Engine Oil is manufactured by MAK Lubricants, based on a specialized formulation developed by Honda Motors, Japan.

MAK is the lubricant brand of Bharat Petroleum Corporation Ltd., a giant in India’s energy sector and among the few regional companies listed among the Fortune 500.

Some of the other genuine oils manufactured by MAK Lubricants include TATA, TVS, Komatsu, General Motors and ELGI.

Baharat Petroleum’s lubricant SBU has been achieving continuous growth in the past consecutive years.

TVS Automotives Pvt. Ltd., Director Chanaka Yatawara says: "Introduction of such genuine engine oils to the Sri Lankan market will provide our customers with the opportunity of using products especially developed for their own brand of vehicles." TVS is the sole distributor for MAK Lubricants in Sri Lanka. "Furthermore, it will also be comforting for MAK Lubricants customers to know that MAK Lubricants have been the No.1 choice among many original equipment manufactures both in India and internationally."

Hero Honda Motors Ltd is the single largest motorcycle manufacturer in the world with a monthly production of around 500,000 units per month. While the largest market for Hero Honda is India, Hero Honda exports to several countries from which Sri Lanka is a key export market. Stafford Motor Co. Ltd., the sole authorized distributor for Honda & Hero Honda in Sri Lanka imports & markets a number of Hero Honda models for the local consumers such as CD Dawn, Splendor NXG, Passion, Glamour, CBZX and Hunk.

Safe driving

Sri Lanka Insurance has tied up with the All Ceylon Drivers School Owners Association (ACDSOA) to provide training & workshops for its member driving schools on the importance of driver & passenger safety and the importance of repairing a vehicle to manufacturers’ specifications after a collision.

The workshops will be carried out at the collision repair Centre Formula World, Seeduwa.

ACDSOA was established in 1961 under the supervision of the Labour Ministry and work closely with the Transport Ministry. The association has a member school base of over 500 spanning all regions of the country excluding the north and some parts of the east and is a major stakeholder in most of the important decisions in motor traffic education.

Apart from conducting training & workshops for member organizations, the association takes upon itself the responsibility of educating members of new rules & regulations to be imposed by the motor traffic department and also provides assistance in obtaining various vehicle licenses and the other documentation pertaining to motor traffic.

CB doubles access to lending window

Reserve money, the operating target for Central Bank’s (CB’s) monetary policy has been well within the revised third quarter target, the CB said.

It further said: "The achievement of the reserve money target last month (September 2008) follows the successful achievement of the targets set for the first two quarters of the year. Average reserve money during the third quarter at Rs. 280.6 billion (a 9.8% growth) compared with the Rs. 285.2 billion target (a 11.4% year-on-year growth).

CB revised its quarterly targets published in the "Road Map for Monetary and Financial Sector Policies for 2008 and beyond" to contain the second round effect of the high international commodity prices on future inflation.

CB’s strategy has been to keep in check the growth in reserve money through open market operations as well as stringent quantitative restrictions and allowing market interest rates to adjust accordingly to contain demand driven inflationary pressures.

The impact of the tight monetary policy stance maintained thus far has been evident in the deceleration in monetary aggregates growth and the decline in inflation.

Inflation, as measured by the year-on-year change in the New Colombo Consumers’ Price Index (base=2002), which reached 28.2%t in June 2008 has continued to decline thereafter, to 24.3% by end September 2008.

Supported by the continued containment of demand pressure as well as improvements on the supply side, inflation is expected to moderate further during the months ahead.

Turbulent conditions in global financial markets have led to tighter liquidity and credit conditions the world over. CB has been closely monitoring these developments and observed some sharp movements in interest rates which are not warranted under present conditions where there is sufficient leeway in the reserve money programme.

Therefore, considering the firm market liquidity levels maintained thus far through the tight monetary policy stance and the current global developments, CB has decided to ease conditions pertaining to the provision of the reverse repurchase facility in order to avert any risks that may arise from liquidity constraints. Accordingly, the provision of liquidity by the Central Bank to market participants at the Reverse repurchase rate has been enhanced to six times per calendar month from three, as per existing rules with effect from this month (October).

However, the provision of reverse repurchases at the Reverse repo rate of the Central Bank will continue to be made only when the market is short in liquidity.

This move is expected to contain the volatility in money market interest rates. Since reserve money is well within the targeted level, this measure will not pose any risk to achieving the fourth quarter reserve money target.

Among top 4

Cinnamon Island Alidhoo was conferred the prestigious Grand PATA award for the ‘Education and Training’ category at a presentation held in Hyderabad, India recently. The other three PATA Grand Awards were won by Singapore Airlines in the Marketing category; Delhi Tourism and Transportation Development Corporation for Heritage; and Nihiwatu Resort, Indonesia for the Environment.

In addition to the four Grand Awards, 22 Gold Awards were also given to travel-related organisations and individuals.

Cinnamon Island Alidhoo is the flagship resort of Cinnamon Hotels and Resorts, the John Keells Group’s premier hospitality brand. It is in the atoll of Haa Alifu which is in the northern most part of the Maldives.

Titled ‘We shared and we cared,’ the Cinnamon Island Alidhoo award-winning project is a new School of Hospitality at its premises. The initiative began as a recruitment drive and gradually snowballed into an opportunity for the women and young people of the Barah and Utheem islands in the Maldives, to transform themselves into hoteliers. Starting this year, the resort’s parent company, Keells Hotel Management Services Ltd., invested to operate a hotel school in which the curriculum is focused on providing the youth of the islands neighbouring Cinnamon Island Alidhoo with skills that would equip them to enter the industry.

"Recession" hits airlines

International passenger demand growth slowed to 1.3%, following a disappointing 1.9% growth in July.

Passenger load factors fell to 79.2%, a sharp drop-off from the 81% recorded during the same period last year as capacity growth outpaced demand.

International freight traffic saw its third consecutive month of contraction with a 2.7% decline following drops of 1.9% in July and 0.8% in June.

Passenger traffic grew by 5.4% in the first half of the year. That slowed to 1.9% in July and 1.3% in August.

"The contrast between the first half of the year and the last two months is stark," said IATA’s Director General Giovanni Bisignani.

"Slowdown has been so sudden that airlines can’t adjust capacity quickly enough. While the drop in the oil price is welcome relief on the cost side, fuel remains 30% higher than a year ago. And with traffic growth continuing to decline, the industry is still heading for a US$5.2 billion loss this year."

Air freight has declined for the past three months, led by Asia Pacific carriers that posted a 6.5% decline in July and a 6.8% decline in August.

"Airlines carry 35% by value of the goods traded internationally. The three-month decline-led by weakness in Asia-Pacific markets-is a clear indication that global trade is slowing down. This shows that the impact of the financial crisis is broad geographically and will worsen before it gets better," said Bisignani.

Asia Pacific carriers reported a 3.1% contraction, following a 0.5% decline in July. Economic distortions surrounding the Olympics in China and a weakening Japanese economic outlook contributed to the decline. While some recovery in this weak performance is expected in coming months, clearly the region’s economies are feeling the impact of the turmoil in financial markets.

Middle Eastern carriers saw traffic growth drop to 4.3% following 5.3% in July and well below the 10.6% growth recorded during the first six months of the year.

In contrast, international passenger traffic carried by North American airlines accelerated from a 4.2% growth in July to 5.2% in August, in Latin America from 8.1% to 11.9% and in Europe from 1.3% to 1.6%.

August is usually the second strongest month of the year, but the 79.2% load factor achieved was 1.8% points lower than last year, although scheduled capacity is planned to slow very sharply to the point where it barely grows by the year end.

The 6.8% decline in international freight shipped by carriers in the Asia Pacific region had the greatest impact as they comprise 45% of the global air cargo markets.

Other big market players also showed weakness. European carriers experienced a 0.9% decline, while US carriers reported a weak0.8%growth.

Sharp declines in freight traffic in Latin America (-13.2%) reflect restructuring in Brazil with cuts in capacity.

"Industry crisis is deepening and no region is immune. Urgent measures are needed. From taxation to charges and operational efficiencies, all areas impacting the business must be examined for ways to reduce costs and drive efficiencies. It’s a matter of survival," said Bisignani.

He noted significant progress in Brazil, where a Presidential approval for the removal of a fuel tax for international flights was published recently

"After a two-year campaign, this is great news and the US$411 million savings over the next four years could not be better timed. The challenge is for other governments to follow Brazil’s example, conform with global standards and free the industry of crazy taxation. This is particularly true of India. Its carriers will post the largest losses outside of the USA-US$1.5 billion this year-and they are being crippled by enormous taxation on fuel, particularly in domestic markets," said Bisignani.

Housing décor

Homes & Property Sri Lanka, a magazine catering to the housing sector, is published by Well Red Ink Pvt. Ltd.

The magazine which is printed on glossy paper is well laid out with articles and colour photographs, targeting a middle-class audience and above, in this sector.

It includes articles on home décor and carries information on housing property and land for sale or for rent and suppliers of housing building stock.

It makes good reading for the connoisseur of housing decor

Hatton National Bank’s (HNB’s) Main Branch at R.A De Mel Mawatha was recently relocated to No. 38, Ananda Kumaraswamy Mawatha, Green Path, Colombo.

It will hereafter be called the HNB Green Path customer centre.

HNB Managing Director /CEO Rajendra Theagarajah said that HNB is committed to provide superior banking services to its customers. He said that a number of value additions have been provided with the relocation of this customer centre keeping in line with the bank’s commitment to provide convenience to its customers.

The new Green Path customer centre situated in the heart of Colombo is in a sophisticated locality with nature friendly architecture. In addition to this there is ample parking space provided to carry out banking functions with ease. The new customer centre is equipped with a drive through ATM, access for the differently- abled persons and will also provide holiday banking services.

Green Path Manager Dharshana Ratnayake thanked his customers for maintaining longstanding relationships with the bank and assured them of greater convenience through the new branch. A distinguished gathering was present on this occasion.

HNB was named the Best Retail Bank in Sri Lanka by the Asian Banker magazine and offers a comprehensive range of products and services with product offerings to new borns up to senior citizens.

Asset management

The official creation of Aviva Investors, the global asset management business of Aviva plc, took place recently.

Aviva Investors is a single business with 1100 employees working in 21 locations around the world.

Aviva, the world’s fifth largest insurance company1, is investing to transform its asset management business over the next few years into onZe that significantly increases its contribution to Group profit and becomes an investment powerhouse on a global scale. Aviva Investors currently manages more than £235 billion (€297 billion/US$469 billion).

Aviva Investors Chief Executive Alain Dromer said: "This marks the initial integration of our asset management companies and the start of Aviva Investors’ transformation into a global investment powerhouse. The exceptional tensions experienced in the past few weeks have highlighted the benefit of operating globally to service all our clients better.

Aviva Investors will draw on the best of products and capabilities from around the world to deliver innovative services and investment performance to our internal and third-party clients.

This is not just about rebranding. It is a radical change, driven by the value that we can deliver to our clients. It’s about creating a new approach to asset management for Aviva and building a dynamic new business that can provide global investment solutions."

The investment model developed for Aviva Investors is one that anticipates market trends and changing client demands. It will be transformed to deliver greater specialisation and focus and be based around two key areas: Local autonomous teams that concentrate on generating alpha and high "out-performance" through active portfolio management in areas such as equity and fixed income investment and real estate.

A global investment solutions team that will manage capabilities requiring scale and

a global outlook will focus on products and multi-asset solutions that include quantitative, index, asset allocation, multi-manager and structured products.

Aviva Investors combines businesses in Australia (Portfolio Partners) France (Aviva Gestion d’Actifs) Poland (CUIM Polska), Ireland (Hibernian Investment Managers) North America (Aviva Capital Management & MFM International, Aviva Investment Canada) Romania (CertInvest) and the UK (Morley).

Path to Sri Pada

Commercial Bank of Ceylon Corporate Social Responsibility Trust (CSR Trust) started a project last year to rehabilitate and reconstruct the stretch between Seethagangula and Thenna at Sri Pada (Adam’s Peak), the only mountain in the world considered sacred by the followers of

many different faiths.

This followed a request by the Chief Incumbent of the Sri Padasthanaya, Handapangoda Wimalabhidana Thera and the Chief Incumbent of Uda Maluwa, Dampahala Seelananda Thera.

The Trust began with a startup capital of Rs 25 million and the Bank contributes up to one per cent of its post tax profits every year towards it.

"The Sri Pada path-way through Hatton was in a dilapidated condition and we were informed that there were delays in obtaining the necessary funds for the reconstruction of this stretch which was in a particularly bad condition. Our CSR Trust responded by undertaking the project to rehabilitate and reconstruct this pathway with the consent of the authorities," Commercial Bank’s AGM-Plan Implementation Richard Rodrigo said.

He said that subsequent to the Bank’s offer, government authorities and several other private establishments had come forward to assist in the rehabilitation of different stretches of this pathway.

A public meeting was organized recently in Hatton by the authorities to acknowledge the contributions made towards this project by Commercial Bank and the Government.

Work on the stretch undertaken by the Bank is progressing fast despite

the many challenges of working during the "Off Season" which is also the rainy season. Another difficulty is carrying the building materials manually to the place of work located at high elevations. "Notwithstanding all these, the work is nearing completion and we expect to handover the rehabilitated roadway to the authorities in the near future. This would ease the hardships faced by pilgrims visiting Sri Pada at least to some extent," Rodrigo added.

CSR Trust empowers communities and individuals to help them become self-reliant and independent, to motivate people, to encourage individuals to think out of box, to capture and preserve heritage & folk wisdom.

Recent CSR initiatives by the Trust include granting scholarships to undergraduates, building homes for the Tsunami affected, assisting Children’s Homes, donating equipment and essentials to the Colombo National Hospital and refurbishing the Dental Clinic of Deniyaya Base Hospital.

Remittance card

ICICI Bank Sri Lanka (ICICIB) recently announced the launch of a card-based remittance product, an alternative to receive remittances.

The first such card was presented to Matheesha Panchala Perera of Bandaragama who receives money regularly from his brother who is a permanent resident in the UK.

Hitherto Perera was receiving money via various informal channels which necessitated his coming to Colombo.

With ICICIB’s Remittance Card he no longer has to make the trek to Colombo, thus saving him time and money.

The remittance card is a Sri Lankan Rupee (LKR) denominated card. It is re-loadable for funding and can be used to withdraw money at over 1,000 VISA affiliated ATMs islandwide at no additional charge, as well as at merchant establishments in Sri Lanka.

ICICIB Country Head Prem Thampi said, "The Sri Lankan remittance market is growing rapidly with migration of Sri Lankans to newer geographies. At ICICIB, customer convenience is utilized as a strategic tool across all our business lines, and the launch of the remittance card is all about maximizing convenience and benefits to both the remitter and beneficiary."

Benefits of the Remittance Card: 24-hour access to funds, use at VISA Point of Sale terminals(the card can be used for transactions at over 14,000 merchant establishments across the country) and Safety: Beneficiary does not have to withdraw the entire credit and take the risk of carrying the money.

160 schols. on offer

More than 160 new scholarships will be on offer to Ceylinco "Pranama" policyholders in all districts of Sri Lanka.

Ceylinco Life said it has begun the collection of applications from eligible students. Applications close on November 30, 2008 for the

next batch of annual scholarships to be presented at the BMICH in January.

Applications for Pranama scholarships are available at Ceylinco Life branches islandwide. Ceylinco Pranama scholarships are presented to policyholders’ children who achieve the best results in their respective districts at the Year 5 scholarship exam, GCE O’Level and A’Level and to those who excel at the national level in sports, culture, arts, drama or invention.

For the next round of scholarships, students who sat the Year 5 scholarship exam in 2008 and the GCE (O/L) and (A/L) exams last year (2007) will be eligible to apply.

The National Merit Awards will consider achievements in 2007/08.

Additionally, cash awards of Rs 25,000 each are presented to students who achieve the highest marks islandwide in maths, biology, commerce and arts at the GCE (A/L) exam in 2007, irrespective of whether or not they are the children of policyholders. If, however, a policyholder’s child has achieved this distinction, he or she qualifies to receive both awards, the districtwise scholarship and the special cash award.

The Pranama programme has benefited more than 850 ‘future leaders’ since the first awards ceremony in January 2002. The total value of scholarships awarded to date exceeds Rs. 30 million.

Besides the Pranama scholarships scheme, Ceylinco Life has also established the Ceylinco Aloka Fund for education, which pays up to Rs 54,000 in 36 equal monthly instalments on the death of an active policyholder in the low income segment whose children are undergoing primary, secondary or tertiary education.

Rating upgraded to "Stable"

Asian Finance Ltd., has reported a net profit after tax (NPAT)of Rs. 34.5 million for the year ended March 31, 2008.

This commendable performance was attained in spite of adverse macro economic conditions such as sharply rising interest rates and high inflation leading to a dramatic increase in interest costs and other overheads.

Moreover, an increasingly hostile economic environment caused difficulties in recoveries and some sluggishness in the sale of the real estate and residential property markets. In the backdrop of such adverse conditions, this performance vis-à-vis a NPAT of Rs. 53.1 million reported in year 2006/07 proves the remarkable resilience of Asian Finance due to timely and prudent strategies adopted by the company to cushion the stormy impact of external factors.

In the year under review the assets of the company have grown by 32.2 %. Furthermore the proportion of real estate portfolio as a percentage of total assets dropped to 26.3% in the year 2007/08 compared to 31.1% in the previous year (2006/07). The existing real estate stock has substantial profit potential. The company possesses enviable competencies in identifying and marketing real estate and is a respected major player in the real estate industry. The real estate sector is expected to contribute substantially towards the improvement of profitability in the future.

The Non-performing loan component in the credit portfolio is only 6.36 % and remains lower than that of the industry average of 6.54%. The company continues to lend based on stringent lending criteria pursuing an aggressive budget to enhance its portfolio both qualitatively and quantitatively.

The network of head office and branches in Kandy, Kurunegala, Nugegoda, Kollupitiya, Kiribathgoda and Ambalangoda afford a well established customer outreach in major urban and suburban areas. The last four branches were opened recently and are now geared to realize the full potential of increasing business opportunities presented to them.

Fully integrated information technology system linking all branches on line real-time and trained staff will place the company at an advantage over its competitors in prompt customer service.

Asian Finance visualizes its strategic goals in the future years in the above context and plans to expand its activities and enhance its profitability with a major investment in an ever growing quality credit portfolio complemented by relatively limited investment in the real estate and housing market.

RAM rating recently revised its long-term rating of the company to BB+. Moreover, the long term rating outlook which was negative has now been changed to stable.

Furthermore, Asian Finance is planning to merge with its parent Ceylinco Finance PLC and such merger will further strengthen the financial standing in the financial services industry of both companies.

Dialog will be catalyst

Dialog GSM achieved five million subscribers last week, cementing its position as the premier mobile telecoms service provider in the country.

With over 50% of the mobile market share, Dialog has now connected a quarter of the Sri Lanka’s population.

As part of a celebratory offer, the company introduced an unprecedented call charge regime through a brand new post-paid package, plus, per-second billing for its pre-paid segment through yet another package.

Dialog Telekom PLC Group Chief Executive Dr. Hans Wijayasuriya attributed the milestone to his company’s philosophy of ‘Innovation for Inclusion.’

"Dialog is today truly a company for all Sri Lankans, as we have demonstrated by connecting with five million customers. Segment specific solutions drive increased levels of inclusion across multiple layers. Bringing mobile telephony within reach of every Sri Lankan puts in place a vehicle for digital empowerment and Dialog will continue to be that catalyst," he said.

Dialog Telekom Group Chief Marketing Officer Nushad Perera said, "This is a proud moment for all at Dialog, to know we are connected with and have empowered five million Sri Lankan lives. Customer-driven technology solutions and unparalleled service have been the key facets of our success, and would continue to be so when we connect the next million. It was Dialog GSM that changed the face of mobile telecoms in Sri Lanka and South Asia, and in today’s fast-evolving environment we would continue to lead by example."

Dialog GSM is celebrating five million connections with groundbreaking offers for post and pre-paid subscribers for all Sri Lankans with unmatched benefits. "Per-Second Blaster" is the exciting new package for post-paid users which offers 1,000 minutes of free outgoing calls to Dialog numbers at any time of the day. With incoming totally free from any network, customers can also enjoy per-second billing and "My10" services for no monthly rental. All this for a nominal package transfer fee of Rs. 500 while new connections would and could be obtained for Rs.1,000.

Dialog pre-paid customers could avail themselves of the Kit Per-Second Package and enjoy the benefits of per-second billing. Outgoing calls to Dialog numbers from Kit pre-paid are now just Rs. 3 a minute at any time of day. The Lifetime Discount would continue to apply for those who pay for the service.

Also, for every Rs. 50 reload, all Dialog Kit pre-paid users get five days of free incoming calls with no more rentals for this facility.

Dialog Mobile Chief Operating Officer Supun Weerasinghe said, "This new offer is a tribute to our five million customers for their confidence in Dialog. We take pride in having constantly delivered the best value service not only in Sri Lanka, but in the region. Our product development efforts are dedicated to delivering technology and value for lower cost, and the possibilities are endless."

Stock market announcements

Singer Sri Lanka PLC has declared a Rs.4 interim dividend per share for the fy 2008. Excluding dividend (XD) date: October 3 and payment date: October 16, 2008.

Lanka Walltile PLC has declared a Rs. 2.41 final dividend per share. Shareholders’ meeting: October 20, 2008; XD date: October 21 and payment date: October 28, 2008.

Colombo Investment Trust PLC has declared a Rights issue in the proportion of "1 for 3" (subject to approval) at an issue price of Rs. 20 a share to enhance the company’s current portfolio and to make further investments in fundamentally sound and liquid securities.

Bairaha Farms PLC has declared a Rs. 1 final dividend for the financial year 2007/08. AGM: October 22, XD date: October 23 and payment date: October 30, 2008.

Serendib Land Ltd., has declared a Rs. 10 first and final dividend for the financial year 2007/08. AGM: September 30, XD and payment dates: October 2.

Kuruwita Textile Mills has declared a Rs. 1 final dividend. Shareholders’ meeting: October 16, XD date: October 17 and payment date: October 23, 2008.

Selingsing PLC and Good Hope PLC, have both declared first interim dividends of 72 cents and Rs. 1.46 respectively. XD dates for both of these companies is September 19 and payment dates: September 29, 2008.

Abans Electricals Ltd., has declared a first and final dividend of Rs. 3 per share. Shareholders meeting: September 29, XD date: September 30 and payment date: Oct. 7, 2008.

Cargo Boat Development Ltd., and Renuka City Hotels Ltd., have declared first and final dividends of Rs. 1 and Rs. 5 each respectively. Both companies have set shareholders’ meetings at September 29, 2008; excluding dividend (XD) dates on: Sept., 30 and payment dates on: Sept., 30, 2008.

Lanka Ashok Leyland PLC has declared a Rs. 10, first and final dividend. Shareholders meeting: September 29, 2008; XD date: September 30 and payment date: Oct. 2, 2008.

Hunter & Co., Ltd., has declared a first and final dividend of 50 cents a share. Shareholders meeting: September 30, XD date: October 2 and payment date: Oct. 8, 2008.

Bairaha Farms PLC has declared a first and final dividend of Rs. 1 a share with dates to be notified.

Tokyo Cement Co., PLC has declared a Rs. 4 dividend on its voting shares and a 40 cents dividend on its non voting shares. Shareholders’ meeting: September 29, 2008; XD date: September 30 and payment date: October 10, 2008.

Serendib Land Ltd., has declared a first and final dividend of Rs. 10 a share. Shareholders’ meeting: September 30, 2008; XD date: October 2, 2008 and payment date: Oct., 8, 2008.

Distilleries Co., of Sri Lanka Ltd., has declared a final dividend of Rs. 1.75 a share. Shareholders’ meeting: September 18, 2008; XD date: September 19, 2008 and payment date: Sept. 25, 2008.

Industrial Asphalts (Ceylon) PLC has declared a final dividend of Rs. 4 a share. Shareholders’ meeting: September 30, 2008; XD date: October 2, 2008 and payment date: Oct., 8, 2008.

Kotagala missed the bus

Kotagala Plantations in the first quarter (1Q) ended June 30, 2008 enjoyed a 62% growth in earnings year on year (yoy) to Rs. 138.8 million backed by rising tea and rubber prices, John Keells Stock Brokers (JKSB) in a report said.

Tea production (including bought crop) during the 1Qexceeded two million kgs, a yoy volume growth of 12.6% while sales revenue averaged Rs. 270 per kg during the Q compared to Rs. 228 per kg a year ago.

With over 71% of its tea crop being high grown teas, the company failed to capture the advantage of rising low grown prices.

This is due to the large proportion of bought leaf where margins enjoyed by the company tend to be small.

Rubber output declined 28% due to unfavourable weather conditions leading to a decline in revenue by a mere 0.2%. Growth in revenue was predominantly seen from the tea segment with a 34% growth. Higher fuel and energy costs compared to 1Q2008 (vis-à-vis 1Q 2009) were seen as a major reason for a 24% increase in sales cost.

"Since majority of its tea crop is high grown, we expect the company to enjoy higher earnings during the 2Q and 3Q of 2009E where tea prices are likely to be above its level in the 1Q2009 due to the better quality season.," said JKSB.

"We anticipate a 22% decline in rubber production for the year along with a 17% growth in tea," the stock broking firm further said.

The Collective Agreement which was signed in September 2006 was due to expire in December 2008 but agreement was renewed in October 2007 when the Government ordered a wage increment across the industry.

Thus, the expiry date of the new agreement has been extended to March 2009 after which a new agreement may be signed.

JKSB expects Kotagala’s earnings in financial year 2009 to increase by 12% yoy to Rs. 554 million.

"Adyapana" 2008

This year’s "Adyapana 2008" exhibition that will be held at the Sirimavo Bandaranaike Memorial Exhibition Centre, will be conducted over three days beginning Friday. Some 145 stalls will be on display at this exhibition.

Food security

CIC Group of Companies Executive Chairman. B. R. L. Fernando will address Sri Lanka Institute of Directors members and their guests on "Sri Lanka Agriculture-Food Security" at Taj Samudra on Tuesday.

Regnis Lanka Ltd., in the 2Q ended June 30, 2008 saw its PAT decline by 7% yoy to Rs. 9.92 million. This is attributed to higher raw material prices. The company in the 1H ended June 30, 2008 however saw its PAT increase by 111% yoy to Rs. 32.68 million.

Central Industries in the 1Q ended June 30, 2008 saw net profit grow by 7% yoy to Rs. 86.49 million.

Renuka City Hotels in the 1Q ended June 30, 2008 saw net profit grow by 103% yoy to Rs. 55.61 million.

Ceylon Guardian Inv. in the 1Q ended June 30, 2008 saw net profit grow by 1,001% yoy to Rs. 566.23 million.

Ceylon Investment in the 1Q ended June 30, 2008 saw net profit grow by 952% yoy to Rs. 364.82 million.

Equity 2 in the 1Q ended June 30, 2008 saw net profit grow by 76% yoy to Rs. 1.72 million.

E.B. Creasy & Co., in the 1Q ended June 30, 2008 saw net profit grow by 476% yoy to Rs. 62.59 million.

Equity One, in the 1Q ended June 30, 2008 saw net profit decline by 80% yoy to Rs. 1.43 million.

The Finance, in the 1Q ended June 30, 2008 saw net profit decline by 2% yoy to Rs. 45.06 million.

Brown & Company in the 1Q ended June 30, 2008 made a Rs. 9.35 million loss, translated to a 137% decline in net profit yoy.

Ceylon Hotels Corp., in the 1Q ended June 30, 2008 reduced their losses by 48% yoy to Rs. 8.37 million.

MDT Walkers in the 1Q ended June 30, 2008 saw PAT up by 10,233% yoy to Rs. 6.2 million.

Muller & Phipps in the 1Q ended June 30, 2008 saw PAT decline by 20% yoy to Rs. 2.9 million.

Seylan Merc. Leasing in the 2Q ended June 30, 2008 saw its PAT decline by 77% yoy to Rs. 1.99 million. The company in the 1H ended June 30, 2008 saw its PAT decline by 44% yoy to Rs. 8.52 million.

Arpico Finance in the 1Q ended June 30, 2008 saw PAT decline by 74% yoy to Rs. 2.9 million.

Alliance Finance in the 1Q ended June 30, 2008 saw PAT decline by 25% yoy to Rs. 13.5 million.

Ceylinco Seylan Dev., in the 2Q ended June 30, 2008 saw its PAT increase by 636% yoy to Rs. 86.9 million after the revaluation of its investment property. The company in the 1H ended June 30, 2008 saw its PAT increase by 295% yoy to Rs. 101.2 million.

Renuka Holdings’ in the 1Q ended June 30, 2008 saw PAT decline by 5% yoy to Rs. 3.3 million.

Royal Palms Beach Hotel in the 1Q ended June 30, 2008 saw its losses decline by 28% yoy to Rs. 14.9 million.

Acme Printing in the 1Q ended June 30, 2008 made a Rs. 5.2 million loss compared to a Rs. one million PAT in the corresponding Q the previous year.

Bukit Darah PLC in the 1Q ended June 30, 2008 saw its PAT up by 74.6% yoy to Rs. 1,042.7 million.

Carson Cumberbatch PLC in the 1Q ended June 30, 2008 saw its PAT up by 153.5 % yoy to Rs. 1,596.8 million.

Central Finance Co., PLC in the 1Q ended June 30, 2008 saw its PAT up by 4.6 % yoy to Rs. 285.6 million.

Ceylon Grain Elevators in the 2Q ended June 30, 2008 made a Rs. 97.7 million loss compared to a Rs. 39.2 million PAT in the corresponding 2Q the previous year. The company in the 1H ended June 30, 2008 made a Rs. 118.5 million loss compared to a Rs. 192.3 million PAT in the corresponding 1H the previous year.

CT Land Dev. PLC in the 1Q ended June 30, 2008 saw its PAT decline by 11.2 % yoy to Rs. 18.8 million.

Dankotuwa Porcelain PLC in the 2Q ended June 30, 2008 saw its losses increase by 3,789.2% yoy to Rs. 42.8 million. The company in the 1H ended June 30, 2008 made a Rs.41.7 million loss compared to a Rs. 1.7 million PAT in the corresponding 1H the previous year.

Good Hope PLC in the 1Q ended June 30, 2008 saw its PAT up 80 % yoy to Rs. 40 million.

Indo (Malay) PLC in the 1Q ended June 30, 2008 saw its PAT up 208 % yoy to Rs. 15.9 million.

Lanka Aluminium PLC in the 1Q ended June 30, 2008 saw its PAT up 720.9 % yoy to Rs. 16.7 million.

Lanka IOC in the 1Q ended June 30, 2008 saw its PAT up 108.8 % yoy to Rs. 1,023.5 million.

Hotel Reefcomber in the 1Q ended June 30, 2008 saw its losses decline by 18 % yoy to Rs. 3.96 million.

Lankem in the 1Q ended June 30, 2008 saw its PAT up 341 % yoy to Rs. 129 million.

Asian Cotton Mills in the 1Q ended June 30, 2008 saw its PAT up 628 % yoy to Rs. 4.39 million.

Confifi Hotel Holdings in the 1Q ended June 30, 2008 saw its losses increase by 81% yoy to Rs. 1.72 million.

Sigiriya Village Hotels in the 1Q ended June 30, 2008 saw its losses decline by 25% yoy to Rs. 14.75 million.

Lion Brewery in the 1Q ended June 30, 2008 saw its losses decline by 117% yoy to Rs. 4.83 million.

Riverina Hotels Ltd., in the 1Q ended June 30, 2008 saw its losses increase by 16% yoy to Rs. 14.76 million.

Soy Foods in the 1Q ended June 30, 2008 saw its PAT increase by 35% yoy to Rs. 10.75 million.

Eden Hotel Lanka in the 1Q ended June 30, 2008 saw its losses increase by 160% yoy to Rs. 30.56 million.

Galadari Hotel in the 2Q ended June 30, 2008 saw its losses increase by 52% yoy to Rs. 103.76 million. The Hotel in the 1H ended June 30, 2008 saw its losses increase by 63% yoy to Rs. 153.57 million.

Lanka Milk Foods in the 1Q ended June 30, 2008 saw its losses decline by 121% yoy to Rs. 2.18 million.

Harischandra Mills in the 1Q ended June 30, 2008 saw its PAT up by 290% yoy to Rs. 4.87 million.

Colombo Pharamcy in the 1Q ended June 30, 2008 saw its PAT up by 22% yoy to Rs. 4.62 million.

C.W.Mackie in the 2Q ended June 30, 2008 saw its losses decline by 128% yoy to Rs. 7.57 million. The company in the 1H ended June 30, 2008 made a Rs.28.44 million PAT, a 62% yoy decline.

Laxapana Batteries in the 1Q ended June 30, 2008 made a Rs. three million PAT compared to a Rs. 3.7 million loss in the corresponding Q the previous year.

Pegasus Hotels in the 1Q ended June 30, 2008 saw its losses reduced 63.7% yoy to Rs. 2.2 million.

Printcare PLC in the 1Q ended June 30, 2008 saw its PAT up 4.9 % yoy to Rs. eight million.

Radiant Gems in the 1Q ended June 30, 2008 saw its PAT down 96.4 % yoy to Rs. 100,000.

Selinsing PLC in the 1Q ended June 30, 2008 saw its PAT down 6.2 % yoy to Rs. 37.9 million.

Shalimar (Malay) PLC in the 1Q ended June 30, 2008 saw its PAT up 288.3 % yoy to Rs. 16 million.

Three Acre Farms in the 2Q ended June 30, 2008 made a Rs. 65.3 million loss compared to a Rs. 17.1 million PAT in the corresponding 2Q the previous year. The company in the 1H ended June 30, 2008 made a Rs. 71.1 million loss compared to a Rs. 51.2 million PAT in the corresponding 1H the previous year.

Vanik Incorporated in the 2Q ended June 30, 2008 reduced its losses by 49.2% yoy to Rs. 43.1 million. The company in the 1H ended June 30, 2008 reduced its losses by 27.8% yoy to Rs. 120.2 million.

Blue Diamonds in the 1Q ended June 30, 2008 saw its PAT increase by 52% yoy to Rs. 2.33 million.

Ceylon Leather’s in the 1Q ended June 30, 2008 saw its losses increase by 14% yoy to Rs. 8.67 million.

Colombo Fort Investments’ in the 1Q ended June 30, 2008 saw its PAT increase by 2% yoy to Rs. 1.64 million.

Distilleries in the 1Q ended June 30, 2008 saw its PAT decline by 16% yoy to Rs. 1.2 billion. Earnings decline were attributed to slower revenue growth and high operating costs.

Hunter & Co., in the 1Q ended June 30, 2008 saw its PAT decline by 64% yoy to Rs. 1.7 million.

Kelani Cables in the 1Q ended June 30, 2008 saw its PAT decline by 77% yoy to Rs. 18.1 million.

Lanka Hospitals in the 1Q ended June 30, 2008 saw its PAT increase by 150% yoy to Rs. 17.6 million. (Source: John Keells Stock Brokers)

In Brief

Govt., debt up 14%

While the country's domestic debt month on month (mom) increased by Rs. 20 billion to Rs. 1,885.5 billion in July, its foreign debt however in the period under review declined by Rs. 33.1 billion to Rs. 1,397.4 billion.

Total outstanding government debt as at end July stood at Rs. 3,282.9 billion; a mom decline of Rs. 13.1 billion, however a year on year (yoy) increase of Rs. 408.5 billion (14.2%).

That comprised a total domestic debt component of Rs. 1,885.5 billion; a Rs. 257.7 billion (15.8%) yoy increase and a total foreign debt component of Rs. 1,397.4 billion, a Rs. 150.8 billion (12.1%) yoy increase.

Capex lags behind

The  government's Rs. 400.9 billion current expenditure figure in the first seven months of this year has met 56.2% of the budgeted target of Rs. 712.9 billion for the year, its capital & lending minus repayments figure however has met only 45.1% of its targeted budgeted figure at Rs. 149.5 billion in the period under review.

Total expenditure & lending minus repayments at Rs. 550.4 billion in the period under review is 52.7% of the total budgeted expenditure figure for the year.

Revenue slows

Government revenue at Rs. 357.5 billion in the first seven months of the year has met 47.6% of the budgeted revenue target of Rs. 750.7 billion.

Tourism earnings down 8%

Both tourist arrivals and earnings in the first eight months of the year declined by 8.2% year on year to 288,017 and US$ 224.7 million respectively. (Source: Central Bank)

Doubts over Effies SL

The Sri Lanka Institute of Marketing (SLIM) has brought the 'big league' of advertising awards to Sri Lanka together with the 4A's; The Effie Awards, "one of the biggest and most challenging advertising awards which has been rewarding 'Ideas that Work' since 1968."

While clients and agencies are encouraged to participate at the inaugural Effie awards in Sri Lanka, some in the ad industry are skeptical about the fact that the data sent in by agencies supporting their entries will allegedly not be crossed checked, casting a shadow of doubt over the selection and judging process.

While some claimed that the award already seems to lack credibility, organizers maintained that the 24 categories will give most campaigns a fair chance of competing against similar competitive products and services, giving everyone a chance to win.

The Panel of judges will consist of eleven members out of which two will be overseas judges and the balance will be from Sri Lanka:

Forced sale

A UK Competition Commission report proposed that BAA sell three of its seven UK airports-two in London and one in Scotland-as part of measures to increase competition in the sector and ease "capacity constraints that are strangling air travel expansion."

The Commission did not rule out a forced sale of London Heathrow, but said a sale of Gatwick and Stansted is more likely.

BAA, a unit of Grupo Ferrovial, said a call for airport sales could delay building new runways. A final ruling will be issued in first quarter 2009. The regulator plans to overhaul the regulatory framework of the sector and review government policy, including airport expansion plans.

Airlines generally supported the recommendations but labour unions said they would resist a BAA break-up, since it could threaten jobs. Those expressing interest in an airport sale include Manchester Airports Group, London City Airport co-owner Global Infrastructure Partners, Germany's Fraport and Hochtief and Australia's Macquarie. (Washington Aviation Summary)

Year's stock

It pays to remember a smart tip, recalling the 'smart tips' from Ratthi, the 'Smart People's Choice' on Ran FM radio paid off for those smart winners.

They each received a year's supply of Rattthi milk powder by recalling the latest budget stretching 'smart tips' from Ratthi brand ambassador Mrs. Perera playing on Ran FM. Every week, one lucky winner will receive a year's supply of milk powder free.

Peace building

The Federation of Chambers of Commerce and Industry of Sri Lanka (FCCISL) under its Business for Peace Alliance (BPA) has rehabilitated 957 livelihoods and businesses and channelled support for a value of more than Rs 26 million.

It has also established a wholesale distribution centre in Wanni and

chartered its own ship and shipped more than 10,700 MT of food,

essential items especially inputs for livelihood activation in the region through it and also facilitated sending more than 13,000 MTs of same items through Commissioner General of Essential Services (CGES) chartered vessels.

In addition, BPA facilitated in sending more than 8,500 MTs of goods to Wanni.

Meanwhile, BPA was recently adjudged the Best Social Marketing Project at the Asian Brand Excellence Awards. This award was collected by its President Kosala Wickramanayake and CEO Samantha Abeywickrama.

3,500 members

The Institute of Chartered Accountants of Sri Lanka (ICASL) with over 25,000  students on roll, has more than 3,500 members of whom 25% are employed overseas.

It is also devolved with the responsibility to promulgate Financial Reporting and Auditing Standards in Sri Lanka. The application of such standards is mandatory for business enterprises specified in the the Sri Lanka Accounting and Auditing Standards Act No 15 of 1995. The ICASL is a founder member of the South Asian Federation of the Accountants.

MICE Tourism

Sri Lanka Convention Bureau (SLCB) unveiled its offer, 'Meet in Sri Lanka,'  at a media briefing at Taj Krishna in Hyderabad on the eve of the PATA Travel Mart 2008, where Sri Lanka's strengths as a Meetings Incentives Conventions and Exhibitions(MICE) destination were showcased.

A Team led by SLCB Chairman Prema Cooray, Sri Lanka PATA Chapter Chairperson Amal Goonatilleke, Sri Lanka Tourism Promotion Bureau Chairman Renton de Alwis, Sri Lankan Airlines CEO Manoj Gunawardena, Sri Lanka Tourism Development Authority Board Member Abbas Esufally, were in India for the launch.  PATA Travel Mart delegates from all over the world and Hyderabad's residents were exposed to a billboard campaign on the theme 'Meet in Sri Lanka.'

'Meet in Sri Lanka' was the cohesive effort of SriLankan Airlines, PATA Sri Lanka Chapter and the MICE industry and was aimed at capturing at least 10% of the Indian outbound MICE market.

Toroid International (Pvt)Ltd., Managing Director Bo Lindberg. This caption was inadvertently mixed up in our last week's issue. The error is regretted. 

At Rajagiriya

The CEO in his speech emphasized the thinking behind AAI venturing out into Castle Street and summarized the Company’s objectives, formula for success and way forward. He also stressed on the importance of maintaining the high standards of integrity in providing this highly confidence based service to the client.

Indulakshin Wickramasinghe (Arthur) Senanayake took over as Sampath Bank Chairman this month.

He has been a founder Director of the Bank and its Deputy Chairman since 1998. He will be the 5th Chairman of the Bank since its inception in 1986.

He is a Past Honorary Trade Representative for Singapore Trade Development Board in Sri Lanka and is the Chairman of American President Line (Pvt) Ltd. He is an old boy of Mahinda College, Galle.

He is also the Chairman and Chief Executive Officer of IWS Holdings (Pvt) Ltd.,-a conglomerate with diversified business interests in many industries in the country.

During the firstt six months of 2008 Sampath Bank’s income increased by 26.7% and net profit after tax increased by 17.3% over the corresponding period in 2007. Sampath Bank has 112 branches and has recently moved into setting up branches in the Eastern Provnice.

Complimentary stay

Passengers flying Emirates Airline’s First Class or Business Class via Dubai over the coming months will receive a complimentary stay in Atlantis and enjoy Palm Jumeirah’s aquatic wonders.

The offer includes access during their stay at Atlantis to the water playground Aquaventure featuring water rides as well as The Lost Chambers, a maze of underground tunnels offering "fascinating" underwater views.

Emirates’ Divisional Senior Vice President Commercial Operations

Worldwide Keith Longstaff, said: "We are delighted to offer our First and Business Class customers this opportunity to be amongst the first to experience the world-class facilities at Atlantis.

Passengers flying Emirates Business Class via Dubai during the offer period will enjoy a complimentary one-night stay at Atlantis, while eligible Emirates First Class passengers will enjoy two nights. This offer ends on December 24, 2008.

GAAP to IFRS

Chartered Institute of Management Accountants (CIMA) chief executive Charles Tilley recently addressed US business leaders on the topic of moving over from US GAAP accounting standards to IFRS (International Financial Reporting Standards), a crucial step forward for global reporting.

He also spoke at the International Financial Executives Leadership Forum in Washington as part of an ongoing collaboration between the AICPA (American Institute of Certified Public Accountants), CMA (Certified Management Accountants) Canada and CIMA. Tilley addressed on the urgent requirement for the development of international accounting standards in order to address complex issues and aid transparency. He stressed the need for one international accounting language rather than different variants being used in different regions.

"In these turbulent times, moving from US GAAP standards to IFRS will aid transparent reporting across the world and will further help to address issues surrounding annual reports."

Tilley spoke through the research project he is leading for IFAC (International Federation of Accountants) to examine the suitability of business reporting and identify areas for future development. He highlighted his work on the FRC’s (Financial Reporting Council’s) Advisory Panel looking into the increasing complexity of financial reports and the need for narrative reporting to help provide clarity.

HACCP certification

Maliban Milk Products (Pvt.) Ltd., was awarded the HACCP certification for Food Safety recently.

Free facilities

Kuwait Airways District Sales manager (Sri Lanka) Sudesh Rupasinghe is recently quoted to have had said that it is a privilege for them to offer "free lounge facilities" for Economy Class passengers travelling with Kuwait airways Services. This covers travel to Europe & USA. " Kuwait Airways is the only carrier which provides this facility at present ex Colombo."