Will take US$ 25 hit on every hedged oil barrel import

CPC to hedge oil at US$ 75 in new deal

Ceylon Petroleum Corporation (CPC) and five commercial banks are working out on a new hedge floor price for oil imports at US$ 75 a barrel, to replace the existing hedge floor price fixed at US$ 100 a barrel, it is learnt.

Those banks are Commercial Bank, People's Bank, Citi Bank, Standard Chartered Bank and Deutsche Bank.

The new hedge floor price will be effective from this month.

This would mean that if CPC buys oil at more than US$ 75 a barrel, the hedge banks will have to take the hit on the difference, but if it goes below US$ 75, CPC will have to pay the banks that difference.

Currently oil is trading at around US$ 50 a barrel and under this arrangement CPC will take a US$ 25 hit on every barrel of oil imported under the revised hedge contract that is under consideration.

But under the existing hedge contract, the loss would have had been bigger, a US$ 50 hit on each barrel of hedged oil imported, double the loss that the CPC would have had incurred if made under the existing hedged contract which has a hedge floor price of US$ 100 on a barrel, they said.

The existing hedge contract price of US$ 100 on a barrel has been entered into by the CPC with at least one bank, the contract of which is valid till next May.

Banking sources who did not want to be named told The Sunday Leader last week that the reason why they are however willing to revise the existing contract with CPC was because of the good relations they have with its Chairman Ashantha de Mel.

They further said that the Corporation's loss would have had to be looked at in the context that CPC has hedged only 35% of their oil imports which means that while they would have had to pay US$ 75 per barrel for every hedged oil import under the proposed new contract, the remaining 65% of oil imports will however be bought at only US$ 50 a barrel, ie at the market price.

CPC began hedging its oil imports in the backdrop of rising oil prices since February 2007, with some of the highest prices that it had to pay for oil imports peaking at US$ 130 a barrel, before the oil bubble burst in September2008.

CPC has hedged its upward oil price risk, and not its downward price risk, with the latter generally adopted by oil producers to mitigate any loss they may incur in the event oil prices start to fall.

De Mel addressing reporters recently said that prior to the descent of oil prices that began in September 2008, CPC made a US$ 23 million saving by hedging against possible upward price risks. But with oil prices in the descent, CPC, in September and October made a cumulative loss of US$ 32 million, as a result of which the Corporation made a net Rs. nine million loss on its hedging operations upto October 2008.

Govt. expenditure puts pressure on rupee

Government expenditure driven by the war and having had to settle maturing petroleum bills coupled with foreign investors in Treasury Bonds (T.Bonds) and Treasury Bills getting out from the market continued to place pressure on the rupee last week, market sources who did not want to be named told The Sunday Leader.

Though the market as a whole was sluggish on Friday, however, right throughout the other days last week, Bank of Ceylon (BoC) was selling US dollars at the Rs.108 levels to the other State owned commercial bank, namely People's Bank (PB), they said.

Otherwise the market was slack, the sources said.

State bank intervention in the market this way is interpreted that they were meeting the government's need for foreign currency. The government Treasury maintains accounts with both the PB and BoC.

Sources said that the reason why the CB was not allowing the rupee to dip further was to control government's expenditure costs where it has to pay in rupees to buy dollars. But the downside is that such actions deplete the country' sparse foreign reserves, they said.

Market sources estimated that the Central Bank (CB) acting through its agents PB and BoC would have had spent US$ 200 million so far for the month in trying to defend the rupee.

CB statistics show that in the last two months the Bank expended US$ 790 million in trying to defend the rupee, first at Rs. 107.90 to the U.S. dollar and afterwards at Rs. 108 to the dollar.

However since October 30 the CB has been defending the rupee at the Rs. 110 levels to the dollar after allowing it to dip by Rs. 2.

CB statistics also showed that foreign holdings in T. Bonds week on week (WoW) dipped by Rs. 1,969 million (0.8%) to Rs. 22,600 million in the week ended Wednesday, causing a further strain on the country's reserves.

Prior to the global crisis in September, foreign T. Bond holdings were in the Rs. 57,000 million range, a 60% drop in the space of two months since.

Foreign investors who got Rs. 107 to the dollar in their T. Bond and T. Bill investments now want to get out before the rupee dips further, they said. A rupee depreciation means that they would get fewer dollars from their rupee holdings after selling their T. Bills and T.Bonds, the sources said.

Meanwhile,overnight inter-bank borrowing rates were also high, hovering in the range of 18-20% with the market short by Rs. 23 billion on a net amount on Friday, the 43rd consecutive market day that the market has been short.

The only bright spot that the market can hope is a breakthrough in the fighting in the North, they said. Otherwise it's all gloom and doom, the sources added.

Meanwhile, the CB, in order to curb importer demand and thereby ease pressure on the rupee to dip further, recently introduced 100% margins on forward bookings, 100% margins in the opening of certain letters of credit (LCs) and 200% margins in the opening of LCs for vehicle imports.

Those restrictions were further complemented in Budget 2009 presented to parliament earlier this month that imposed new cesses against certain imports.

Such measures dampened importer demand for dollars, but not the government's thirst for the greenback, to pay for its heavy military purchases and maturing oil bills, the sources said.

Keells Super grows at 30% plus

Growth in modern retail, as supermarket operations are known, expanded its coverage from 13% to 15% on a year on year (YoY) basis, with conventional retail business, ie corner stores and traditional grocery stores having the remaining 85% of the pie

"YoY growth slowed to 15% as against the previous years' 20% growth rates which may be attributed to the recent slowing down in supermarket expansion programmes coupled with take-overs witnessed within the industry," Kumar A. De Silva, Assistant Vice President JKH Group and Chief Operating Officer Jaykay Marketing Services (Pvt.) Ltd., told The Sunday Leader.

The John Keells supermarket chain of outlets marketed under the "Keells Super" brand name is a subsidiary of Jaykay Marketing Services, with all  of those companies coming under the umbrella of the JKH Group.

However, YoY growth may once again hit the 20% range with one of the country's key supermarket chains planning to open 25 outlets coinciding with their 25th anniversary, said De Silva.

He said that in modern retail Keells Super has a 15-18% market share and occupies the number two position followed by Arpico with a 14-16% market share. Cargills leads with a 50% market share.

"Keells Super on a YoY basis has grown at a rate of 30% plus, but this has to be looked at in the context that our own operated outlets (excluding three franchisee outlets) too have grown during this period, from 26 to 36, an addition of 10 outlets, thereby boosting top line growth,"  De Silva said.

Keells Super which operates a total of 39 supermarket chains including those three franchisee outlets will open its 40th store in Kandy early next month. This follows the opening of its Kotahena outlet a few days ago.

Keells Super is a multi-billion rupee industry of the John Keells Holding (JKH) Group, De Silva said.

However, bottom lines are squeezed due to competition and inflation, he said.

Despite the government introducing a watered down inflation measurement index recently, inflation, captured by the new Colombo Consumer Price Index (CCPIN) is still over 20%.

"A litre of a certain brand of apple juice which the company was selling for Rs. 240 only a year ago is now being retailed at Rs. 400, a 67% jump in price on a YoY bais due to rising costs, said De Silva. This has caused a dip in sales, with the drop in volume terms of this drink being in the region of 10%, he said..

"Rising utility costs, increasing staff costs, the impact of new import taxes are all hurting our margins," he said.

The company is planning to increase their sales this Christmas season through a promotion that assures of a new prize winner everyday upto December 31, where he or she will be able to buy twice as many goods from any Keells Super outlet free of charge, calculated on a cumulative basis of the groceries bought from such outlets from November 15, and upto the time that he or she is declared a winner through a daily draw.

"The season beginning from December 10 and running upto the first week of January contributes to between 6-12% to our annual top line," De Silva said.

The company is also offering hampers, with its upper limit fixed at Rs. one million this season.

Tata draws up contingency plans

Ratan Tata, Chairman of the Tata Group has warned his senior managers that the present global recession would make it difficult for his companies to source credit.

Tata Group's interests in Sri Lanka include plantations and telecoms.

In a recent letter to Group Corporate Centre members and MDs/CEOs of Tata companies, he said: " The present global financial crisis has proved to have far reaching effects on several businesses in many geographies.  Some of our companies with substantial foreign operations or those which have made substantial acquisitions are already facing major problems in raising capital or establishing lines of credit for their operations.

In India also, many of our companies already are or will soon face major problems in their access to credit due to the lack of liquidity in the domestic market, as also their inability to effectively raise equity due to the depression in the stock market and the erosion of investor confidence.

While one hopes that various governments will infuse funds into their respective economies, one must assume that liquidity will continue to be a major problem, accompanied by a depression in consumer demand. This state of affairs is not likely to improve substantially over the next twelve months. Accordingly, I believe that each of our companies needs to undertake a critical review of their cash flow requirements business plans with defined strategies needed to operate in this difficult period. Failure to manage this crisis could result in irretrievable positions.

Under the circumstances I consider it essential that each of our companies should consider:- The conservation of cash to the maximum extent possible; draw down all loans/lines of credits from banks and institutions to the maximum extent possible; expeditiously finalise pending loan and funding agreements, even if they involve accepting higher interest rates; improve operational efficiency; aggressively implement restructuring of internal cost framework; drastically reduce operating expenditure; defer non-essential capital expenditure and capacity expansion and put on hold any plans for acquisitions unless considered strategically critical.

I strongly urge the managements of each of our companies and their subsidiaries to form a small management task force to put such a plan in place by early January with stated time bound tasks and targets to face the difficult months ahead. I trust you share my concerns and concur that the current scenario requires urgent action."

50% life policies lapse in 1st year

Union Assurance is looking at increasing its Life Insurance business by targeting mercantile and public servants that fall within the middle and upper middle class bracket.

"The target audience is located in the Western Province," Nalaka Dharmarathne, Assistant General Manager Distribution-Life, Union Assurance PLC, told The Sunday Leader.

Industry wide penetration in this sector may well be over 50%, but there is still room for this sector to grow, he said. Businessmen in any case are insured, he said. Virtually a 100% coverage. They get tax benefits on their insurance, Dharmarathne said.

About the possible stifling effects of high inflation particularly in the context that the target audience is located in the Western Province and are considered fixed income earners, Dharmarathne said that the high salaries they earn, particularly those employed in the mercantile sector, by far compensate the impact that inflation has on their spending power.

World Bank Country Director Ms. Naoko Ishii recently told reporters that the biggest impact inflation has is on the urban poor.

Union Assurance General Manager Marketing Rukman Weeraratne told The Sunday Leader that the Christmas season which is now on is the best time to sell life insurance policies because of the bonuses that employees get.

Meanwhile Dharmarathne said that according to recent statistics, mainly upto the nine months ending on September 30, 2008, Union Assurance was ahead of the industry in terms of both life insurance growth and in new life insurance business growth.

"While the industry during this period grew by 20%, we grew by 24%, with growth in new life insurance business achieved by us hitting 35%," said Dharmarathne.

Life insurance business in terms of gross written premiums collected was Rs. 24 billion in the country last year, with Union Assurance in 4th place, with a Rs. 2.2 billion share of the pie. Ahead of the company were Ceylinco Insurance, Sri Lanka Insurance and Eagle Insurance respectively.

"Forty per cent of our life insurance business comes from Colombo and the balance from the other areas of the island," said Dharmarathne. "My guess is that the industry ratio is in the region of 35% (Colombo) and the balance 65% from areas outside of Colombo," he said.

A number of our policyholders in rural areas are teachers who have other sources of income, they are not impacted by inflation, Dharmarathne said.

Life Insurance penetration in the country is a low 7-14%.

When The Sunday Leader suggested to Dharmarathne that one of the reasons for this low penetration may be because insurance companies as a whole offer policyholders low returns, some 10% compared to the country's inflation which is over 20%, Dharmarathne said that there are several reasons for this.

"For instance, industry wise, policies lapse within the first year of taking a life policy is some 50% and that affects our cash flow projections,"  he said. "On top of that we have to pay hefty commissions to our agents who bring us business, those all eat into our income," he said.

Dharmarathne however said that Life policy lapses of policies sold by his company was stagnant on a year on year basis because of a proper screening of customers and selling them policies that are suitable to their needs.

Meanwhile, another Union Assurance source referring to the risks that insurance companies have to take in relation to life policies said that if a policyholder buys a Rs.three million life policy and dies within months after taking such a policy, the insurance company would still be liable to pay the insured amount to the deceased's beneficiaries.

Dharmarathne said that in order to save the policyholder from paying any bank commissions on premiums remitted through banks, the company was taking this cost if such premiums were remitted through Commercial Bank, HSBC and NTB.

The company which has 50 branches has also expanded to the North-East, with plans to open branches in Nelliady and Chavakachcheri shortly.

"Jaffna, three years ago, was our best performing branch," said Weeraratne. Currently it's Kurunegala, he added. In the East, the company also has branches in Akkaraipattu, Valachchenai and Kalmunai. The East is experiencing a renaissance, particularly in the sphere of agriculture, said Weeraratne. There is a lot of development work going on, Weeraratne,a regular traveller to the East said.

Meanwhile, the industry valued the country's general insurance business at Rs.30 billion, with Union Assurance in 4th place with 10% of the pie, and behind Ceylinco Insurance, SLIC and Janashakthi, in that order respectively.

General Insurance business is comparatively low due to under-cutting industry sources said. It's however difficult to under-cut in Life business, they however contended.

Even banks are among our competitors in life insurance, offering policy cover under certain banking products, said Dharmathne.

However, with new government restrictions on insuring with overseas insurance companies (other than those having foreign currency accounts) , particularly in relation to "Life," to prevent foreign exchange outflows, that part of the competition has been taken out from the industry.

Union Assurance, a quoted company, has as its principal shareholders the John Keells Holding and the Carson Cumberbatch Groups, where each of these companies have a 37% equity stake in Union Assurance.

Be a property owner in Dubai

AMG International headed by  successful Sri Lankan entrepreneur Anthony Malik Gunasekera, is a diverse group of companies that started out in 2004 and thus far operates in the real estate, construction, hospitality, trade and foliage industries and is based in Dubai.

Having identified the potential in the Middle East, Gunasekera decided to base the company's headquarters in Dubai, a dynamic city, which, by law, guarantees the protection of investments.

Gunasekera and his team of professionals have successfully planned the company's strategies to suit the requirements of businessmen, families, holiday makers, sportsmen and others, making use of the wide range of benefits and opportunities the Dubai Government offers.

The core business sectors AMG International has excelled in include Real Estate and Investments, Foliage and Hospitality and Specialty Services.

The success of AMG according to Gunasekera lies in the high level of professionalism displayed by the AMG team of experts who are sensitive to customer needs in all spheres of activity.

AMG happens to be the first group of companies headed by a Sri Lankan that has made history by being also the first Sri Lankan owned company in Dubai to offer Sri Lankans a way of buying their own homes in Dubai.

Speaking to The Sunday Leader about the company and its projects, Gunasekera said that many Sri Lankan expatriates living in Dubai can now take advantage of buying property as rent in the fast paced city has increased by 120% in the last few years.

This has in turn forced many who work in Dubai to live in cheaper areas such as Sharjah and Ajman - a 3 hour drive from Dubai.

Gunasekera said, "Many people living in Dubai spend at least 60% of their salary on rent, but now, thanks to foreigners being allowed to buy properties, they can have their own apartment and even sell it for a profit should they want to leave to another country. It's a great investment opportunity and one that will only benefit buyers as the property market is soaring and growing at 20% per annum, the highest in the world."

Strategically located, Dubai is a fast growing city and has a variety of investment opportunities. Tourism, one of the major attractions in the city has a 16% growth rate per annum, three times the world tourism growth rate.

According to Gunasekera, investors enjoy tax-free benefits and an investor friendly government. He added that homebuyers are also entitled to a lifetime resident visa. Dubai has also been rated as one of the safest places in the world.

Talking about the company, Gunasekera said that AMG entered the market at just the right time and though still new, "everything in Dubai today is new and the city changes its face with each passing day."

He said, "It's growing and expanding and developing at a frenzied rate when just 30 years ago it was nothing but barren desert which is amazing. It's a land of opportunity to everyone."

Explaining the mechanics of the company, Gunasekera said that AMG International buys properties from the Dubai government and retail markets it.

Talking about his latest venture Remraam, Gunasekera said that Remraam is a community styled housing project that is one of a kind and offers an ideal location, extensive community amenities, lush landscaping, spacious garden apartments and an uncompromising build in terms of quality in a unique low rise Arabian style architecture.

According to him, Remraam's low rise architecture also features large living spaces with spacious balconies and terraces, high quality finishes as well as community facilities like parks that occupy 85% of the total community area, covered parking, outdoor swimming pools, nurseries, a gym, sauna and basketball courts and clubhouse.

Remraam is situated in a prime residential area that overlooks the Golf City and is adjacent to Arabian Ranches and the upcoming Bawadi Boulevard. It's also connected to major highways and road networks that provide easy access to principal locations in the city. A community mall will also offer shopping, entertainment and a unique dining experience to all residents.

Gunasekera added that Remraam buyers will enjoy the benefits of freehold ownership of properties, residency visa for freehold property owners and a capital gain of 50% per annum with rental income of 8-12% of the value of the property.

Other benefits include of course, living in one of the fastest growing economies in the world, one that is not affected by the global credit crunch due to strict financial regulations that are in place that discourage home mortgages.

AMG International is a fast growing company operating in the UK and in Sri Lanka and it is envisaged to open branches in the Continent and Australia in 2009. Customers can contact AMG for after sale advice, which makes AMG a favourite and Gunasekera added that anyone who wants advice on starting up businesses in Dubai can feel free to contact AMG.

He said, "I'd like to see more Sri Lankans do well in Dubai, it's a land of opportunity and I believe that my success can be attributed to the fact that I made the best of what this land offered me."

Also perception, dedication and ultimate delivery of services make AMG a steady and secure organisation that one could approach. In addition to its sound strategies, the conducive economic climate of Dubai has boosted this fast growing company to offer services to meet exclusive demands.

But AMG International's operations go beyond Dubai and real estate. The company has an office in the UK (AMG Blace Europe Ltd) headed by Director Kula Nirmal, which promotes Dubai to Sri Lankans living in Europe, and is backed up by a team of professionals at AMG in Dubai led by Director General Manager Viraj Ekanayake. The company's other operations include exporting foliage from Sri Lanka (AMG International Ceylon Ltd.) and also supplying Dubai's demanding hotel industry with hospitality and specialty services (AMG Hotels Supplies Division).

Talking about his vision for the company and future plans, Gunasekera said that someday he hopes to make AMG International the No. 1 Sri Lankan Company in the world and added that "I consider myself a patriotic Sri Lankan and I hope that others will follow suit in being more entrepreneurial because the rest of the world has much to offer and I believe that our people are some of the smartest and most intellectual in the world."

Laws delays

Despite the global financial crisis, PABC CEO says on Benchmark that our resilience will see us through.

On last week's edition of Benchmark, MD and CEO Pan Asia Banking Corporation (PABC) Ms. Kimarli Fernando discussed the banking sector, with an emphasis on the state of the economy and its effect on business.

Fernando pointed out that while the sector was overcrowded vis-…-vis Colombo, banks, apart from the two state-owned entities were not well represented in rural areas. "If banks go beyond the Western Province, this would help the overall economy," she said.

 PABC CEO affirmed that banks too had been affected by inflation, especially given high interest rates. However, she asserted that despite this banks had done well historically and managed by passing on costs to clients-although this action did pose various challenges, especially in the form of bad debts.

"Banks have been prudent and have recovery processes and security arrangements in place. The challenge is the legal system and it could be quite cumbersome and slow. But we've been quite successful with parate execution so far," she told viewers of the weekly business programme.

The country's sole woman-banker CEO emphasised that the resilience of Sri Lankan businessmen would see us through, despite the global financial crisis. However, she conceded that the brain drain was a serious issue for business at large.

Fernando stressed that the local banking sector had a long way to go in terms of technology, despite its often judicious use-especially by new entrants into a crowded marketplace. "Our clearing system works well-better than most other countries in the region and our stock exchange is quite efficient. But I think the legal system needs to be looked at. Banks need to go out into the region and become regional players. that's an area we need to look at," she urged.

Benchmark is presented by LMD and airs on TNL on Sundays at noon, with a repeat at 9.05 p.m. The programme is also carried over Dialog TV as well as on LBN and on Bloomberg Channel on Mondays at 10 p.m. The weekly biz show is produced by The Wrap Factory.

Acme PAT up 31%

Acme Printing in the 2Q ended September 30,2008 saw net profit increase by 31% YoY to Rs. 10.40 million. However net profit in the 1H  ended September 30, 2008 decreased by 42% YoY to Rs. 5.8 million.

 Dividend announcements

On'ally Holdings plc has declared a 90 cents interim dividend per share. XD date: November 27, 2008 and payment: December 10, 2008.

NPLs low 2.38% despite turbulent times

Vallibel Finance, the newest financial entity backed by the powerful Vallibel group recently announced its financial results for the six months ended September 30, 2008, posting an all-round good result in asset growth, revenue, profit, asset quality and productivity.

Total assets rose to Rs.1.3 billion, a 46% growth, whilst revenue recorded a 395% year on year (YoY) growth. The Company also announced a pretax profit of Rs.38 million, a 58% YoY growth and net interest margin of 11.5% for the last six months, a commendable success given volatile market conditions that prevailed during the period. Rs.1.55 billion was achieved in hire purchase, leasing and loans recording a 41% growth in a competitive environment. The Company's fixed deposit collection too sustained the same upward momentum during the period, growing by 60% to Rs.305 million.

With improved collection from non-performing loans and close monitoring of lease and hire purchase portfolios, the Company was also able to maintain the gross NPL ratio at a lower rate of 2.38% as at the end of the period.

Reinforced by the expertise of some of the most celebrated names in the financial sphere and headed by Jayantha Rangamuwa, former Director Mercantile Investments Ltd, Vallibel Finance took the market by storm a little more than a year back and has today become a trusted name among investors.

"The success of this period could be attributed to the Company's aggressive march forward in reaching the very crest of the market," says Managing Director .Rangamuwa. "Providing unsurpassed customer convenience whilst seeking progress by strengthening and reinventing traditional methods too has helped in a big way in bringing the Company to where it is today." He went on to say that the Company's robust start that exceeded expectations and present customer confidence would help propel it forward to reach even greater heights in future.

Vallibel Finance is registered by the Monetary Board of the Central Bank of Sri Lanka under the Finance Companies Act and the company is B +. rated by Fitch Lanka The principal lines of business handled by the Company include Hire Purchase, Leasing, Fixed Deposits, Real Estate and Auto Finance.

The Company is promoted and backed by the leadership of a distinguished board comprising some of the most successful business names in the country-Dhammika Perera,.Sumith Adhihetty (MD-LB Finance) and .Nimal Perera (Deputy Chairman-PABC Bank, MD-Royal Ceramics, The Fortress),.Sena Senaratne (MD-Amaya Resorts and Spas), Mangala Gunatilake (Chartered Management Accountant), Harendra Perera (Director Royal Ceramics ) along with Jayantha Rangamuwa who have collectively more than a 100 years of top management experience.

Dhammika Perera, Chairman Vallibel Finance and prominent entrepreneur and investor in the country whose well-diversified business interests include Hydro Power Generation, Shipping, Manufacturing, Hospitality, Entertainment, Banking and Finance and Insurance, recently became the major shareholder of Hayleys Ltd.

He is also Director to and holds significant shares of Sampath Bank and Asian Alliance Insurance. His expertise in corporate re-engineering and revival has been instrumental in improving the financial performance of several companies including Pan Asia Banking Corporation Ltd., LB Finance, Connaissance Holdings Ltd., and Royal Ceramics Lanka Ltd.

A diversified conglomerate in Sri Lanka, Vallibel Holdings has more than 45 associate companies and its diversified investment portfolio includes some of the best performing public quoted companies listed in the Colombo Stock Exchange.

Mobile games

The mobile phone-based games industry has become popular over the past few years.

Wavenet has developed a gaming platform-3G Play which it  launched at this year's GSMA Mobile Asia Congress in Macau last week(November 18-20).

The application allows subscribers to challenge other players by making an inbound video call to the system or participate in single player games with the system. Privacy can be maintained through user-profiling. 3G Play games include 'Tik Tak' (3G form of Tic Tac Toe) and 'VPok3r' (3G form of poker).

Fine dining

HSBC on Wednesday announced the launch of the "Cardholder Dines Free," a promotion for HSBC Premier, Platinum and Gold credit cardholders, a complimentary dining experience upto December 7 with dining in the restaurants in two five star city hotels.

Customers who own a Dialog connection will also have the option of checking these offers.

SFIDA a/cs

NDB Bank (NDB) offers Special Foreign Investment Deposits Accounts (SFIDA) with benefits.

SFIDA gives the opportunity to non-Sri Lankan citizens and Sri Lankans residing outside the country to invest in NDB in foreign currency & Sri Lankan rupees. Investments in SFIDA are exempted from income tax, withholding tax and debit tax, it is also freely convertible.

Foreign citizens, Sri Lankans resident outside the country, corporate bodies incorporated outside Sri Lanka, foreign institutional investors such as country, mutual and regional funds are entitled to open SFIDA.

Accounts could be opened either as savings accounts or fixed deposits.

For investments of more than US $ 50,000 NDB customers become Privilege Banking Members with a dedicated relationship manager assigned as the point of contact. They will also be entitled to a host of other benefits that NDB offers its customers.

Crisis management

A panel discussion with Union Assurance plc CEO/director Ms. Marina Tharmaratnam, Aitken Spence & Co. plc MD Rajan Brito, Lirne Asia Lead Economist Dr Harsha de Silva and led by Chairman/Moderator Ranel Wijesinha will be held at Galle Face Hotel on Thursday on the topic "the global financial crises and how it would be affecting all sectors of the Sri Lankan economy" followed by an interactive discussion on what steps we could take to mitigate the effects of this impending crisis that is bound to affect all businesses.

It's organized by The Management Club and the Forum of Chartered Institutes.

Double digit inflation

Central Bank (CB) projects year-on-year inflation at end 2008 to be in the range of 17-18% while it is expected to recede to a single digit level during 2009.

Meanwhile the Bank said that to safeguard the stability of the foreign exchange (forex)) market and relieve the external reserves of any pressures due to volatility in the domestic forex market, CB has implemented some prudential measures such as limiting of entering into forward contracts for the sale and/or purchase of forex, preventing prepayments on import bills and raising margin deposit requirements against letters of credit for the importation of motor vehicles and selected non-essential items.

China "syndrome"

SriLankan  Airlines in its Beijing service has a Chinese Language Assistant on board in addition to the airline's cabin crew.

Service Delivery Head Captain Milinda Ratnayake said: " The introduction of Chinese Passenger Assistants will assist our Chinese passengers, many of whom are not fluent in English." SriLankan flies thrice weekly to Beijing from Colombo via Bangkok.

Exports decline due to credit crunch

Sri Lanka's export sector had to face trying times amidst many uncertainties, as the US and other major export destination markets had been grappling with what has been dubbed as the worst financial crisis since the Great Depression of the 1930s.

The Central Bank (CB) in a statement said that the lower demand for goods and services emanating from these countries has led export earnings to decline by 9.4% to US$ 652 million in September 2008. 

 However, the commendable performance in the traditional and minor agricultural crops led agricultural exports to grow by over 12.5% year-on-year (YoY) which partially insulated the 15.5% drop in industrial exports.

Tea exports grew by 6% in September 2008 YoY, in the midst of difficult times.  Sri Lanka's tea prices which reached record high levels in recent times decreased from the third week of September onwards as certain buyers took on a "wait and see" attitude in anticipation of further price reductions.

Although rubber exports increased by 21.6% in September, YoY, the rubber industry is also affected by the global uncertainty regarding the demand for natural rubber in the wake of dwindling international oil prices. Coconut and coconut product exports also performed well in September 2008 reflecting seasonal trends.

Dampened global demand for goods and services had a larger impact on industrial exports with many sub-sectors recording negative growth rates in September 2008. These include food, beverages and tobacco category (-40.7%); leather, rubber and paper goods sector (-12%),  garments and textiles exports (-13.1%) and chemical products exports (-5.3%).

 Overall, industrial exports declined by 15.5% in September YoY to US$ 467 million.  However cumulative export earnings in the first nine months of 2008 amounted to US$ 6,150 million, recording a 9.9% growth over the corresponding period last year.

Import expenditure grew by 22.7% in September 2008 YoY to US$ 1,234 million led by imports of intermediate goods. Petroleum products, fertilizer and textiles Imports accounted for over half of the imports of intermediate goods.  Consumer goods increased by 6.9% in September 2008.  Investment goods imports grew by 13.7%, particularly driven by building materials.

Cumulative import expenditure during the year up to September amounted to US$ 10,763 million which reflected a 33.7% increase over the corresponding period in 2007. Import expenditure  growth in is expected to slowdown in coming months due to the sharp decline in petroleum and other commodity prices.

Reflecting these developments, the trade deficit widened to US$ 582 million in September 2008.  As a result, the deficit in the trade balance expanded during the first nine months of the year to US$ 4,613 million compared to the deficit of US$ 2,453 million recorded during the corresponding period the previous year.

 However, private remittances during the period January-September 2008 which amounted to about US$ 2.2 billion and the higher capital and financial flows more than offset the deficit in the current account, as a result of which, the overall balance of payments recorded a US$ 173 million surplus by end September 2008.  Consequently gross official reserves increased to US$  3,185 million by end September, 2008, up from US$  3,063.5 million in December, 2007, which was sufficient to finance around 2.8 months of imports.

Fountain Cafe

John Keells Holdings (JKH) Group has plans to revive Fountain Cafe, a once popular eatery for ice creams and short eats.

Charitha Subasinghe, Vice President JKH Group and CEO Jaykay Marketing Services (Pvt.) Ltd., told The Sunday Leader that they will be retaking the land, located at Union Place, Colombo, that formerly housed Fountain Cafe, on long lease.

"The land which is an acre in extent will primarily house a Keells Super outlet which will be running from January at an investment cost of Rs. 50 million, and, as a secondary attribute will have 'Fountain Cafe' back in place," he said.

A restaurant not belonging to the JKH Group is currently operating in the premises.

Fountain Cafe formerly run by Elephant House, another Keells subsidiary, once it moved out from the Union Place premises some years ago, began operating from Elephant House, located near Army Headquarters, Colombo.

However, that outlet closed down due to security reasons.

Jaykay Marketing Services owns and operates the Keells supermarket outlets.

Market distortion

Controlled selling by the Central Bank (CB) at Wednesday's  Treasury Bill (T. Bill) auction kept yields stagnant, with the weighted average yields of T. Bills of 91, 182 and 364 day maturities  fetching 17.20%, 18.28% and 19.06% respectively, the same yields they fetched at the previous auction.

This auction was for the re-issue of Rs. 5,000 million worth of maturing T. Bills.

CB sold only 32% (Rs. 520 million), 17% (Rs. 395 million) and 30% (Rs. 2,600 million) from the total amount of bids received for each of those three maturities (in ascending order of maturity dates) at this auction, while rejecting the bids received for the rest of the amount (Rs.3,300 million).

Rejection of bids in such T. Bill Primary Auctions is an indication that either the CB has subscribed to the rejected amount (by releasing new money into the economy in turn), or that captive funds subscribed to the same at interest rates lower than that which the market was demanding, or a mix of both.

Two Golds

National Best Quality Software Awards (NBQSA) 2008 winners who were nominated for the Asia Pacific IT Awards 2008 in Indonesia recently won two Gold awards and three Merit awards (second place). This is the first time Sri Lanka has brought home two Golds, let alone 5 winners.

Scramble to sell

The offer by John Keells Holdings PLC (JKH) for repurchase, on a pro rata basis of 1 share for every 25 shares up to a maximum of  25,500,000 ordinary shares at a price of Rs. 90 a share closed on Tuesday.

The total number of shares tendered for repurchase (acceptances of shareholder entitlements together with applications for repurchase of  additional shares) exceeded the maximum number of shares offered for repurchase by the Company. Payments for the shares repurchased will be made by cheque and posted within 10 market days of the close of the offer.

Providing drinking water

With latest research highlighting bowel diseases as one of the most critical health issues in the country, Hatton National Bank (HNB) embarked on a safe drinking water and sanitation programme that saw its very first project being completed in Mannar.

Siruthopu village in Mannar recently received access to a proper source of safe-drinking water when HNB stepped in, distinguishing themselves yet again as a bank whose interests go beyond business.

A well was built and a tank set up along with six taps in a central area of the village, providing the solution to dire water and sanitation problems faced by the villagers.

Siruthopu villagers had next to nothing to "come back to," but received a somewhat solace when an NGO pitched in to build houses for them. Safe drinking water and sanitation however remained a burning problem as their only source of water came from a bowser that found its way to the town daily to fill a single plastic tank out of which over 75 families received water.

That water too was not safe for drinking and was the cause of many cases of bowel and other diseases, and sickness became an everyday experience for the people of this area.

The plight of the Siruthopu villagers was brought to the Bank's notice by HNB's Mannar Branch Manager and steps were immediately taken to determine what the Bank could do for the people.

November 15 saw over 75 grateful families receiving a steady mode of clean water that would be sufficient for all.

"Water and sanitation are as important as a roof over your head, maybe more so. The project in Mannar is the first of a series of similar projects that will be instigated in various needy areas of the country," said HNB Managing Director Rajendra Theagarajah.

Similar projects to provide safe drinking water and sanitation will be undertaken in Anuradhapura, Puttalam and Kataragama in the immediate future.

This project was initiated with the guidance of Deputy General Manager HR & Administration J.R.P.M. Paiva who is heading the bank's CSR initiatives. Providing safe drinking water and sanitation is a key millennium goal identified by the UN.

"One stop"shop

EPSI Computers (Pvt) Ltd opened its latest showroom "EPSI Concepts" at Majestic City recently.

 "Epsi Concepts" showroom will carry a wide variety of latest digital products from the world's top brands. EPSI Computers (Pvt) Ltd, CEO Niranjan Canagey said that the main focus of "Epsi Concepts" showrooms will be for users to have hands on experience with the products first hand, prior to making a decision to purchase.

Epsi Concepts showrooms carry a wide category of digital products such as desktops, notebooks, net Books, PDAs, mobile phones, MP3 players, gaming consoles, gaming software, digital cameras, scale models, multimedia speakers and a range of PC accessories.

Epsi Concepts is home to many of the world's leading and well-known brands including Apple, Sony, Nokia, Microsoft, Asus, ViewSonic, Creative, Logitech, JBL and other popular brands.

Epsi Concepts showrooms will carry a wide range of the industry's "hottest" products and provide users with hands on experience thereby enriching and empowering Sri Lankan lives digitally.

Canagey further said that faulty products can also be handed over for service at any of the "Epsi Concepts" outlets. "Our commitment towards service has always been fundamental to us. We will provide service levels with the least turnaround time and will strive continuously to reduce and improve this. We expect this to result in greater efficiency and a significant service, enabling the customer to know that he is valued by our organization."

Epsi Computers founded in 1992 has rapidly grown in the Sri Lankan IT industry bringing the latest array of advanced IT equipment to the market. Possessing over a decade of experience in the industry and with a turnover exceeding over Rs. 2 billion, Epsi is firmly placed in a position to become the market leader in the industry.

Epsi's continued focus on 'Innovation & Technology' stems from its brand promise to its customers. It boasts of its commitment to providing Sri Lankans with state-of-the-art innovations in technological products. Epsi has grown to become one of Sri Lanka's leading IT companies and has received several prestigious awards in the region.

10,000kgs., of X'mas cake

The Christmas cake mixing ceremony is a traditional event at Keells Super which heralds the festive season.

 This year the popular supermarket chain had its inhouse bakeries mix the biggest ever Christmas cake with mounds of black raisins, red cherries, brown dates, cashew nuts, topped with powdered cloves, cardamom and "secret" spices, and then the mixing ceremony began with bottles of essences and spirits being poured into the fruits and mixed.

This year too Keells Super has made the biggest Christmas cake which weighs 10,000 kilos. The deliciously rich Christmas cake is available for sale in attractive 500g packs at all Keells Supermarkets which are above the rest in quality, value and satisfaction.

Keells Super has supermarkets at the following 39 locations:  Liberty Plaza, Crescat, Athurugiriya, Attidiya, Borella, Capital Mall, Gampaha, Hendala, Ja-ela, Kadawatha, Kalapaluwawa, Kalutara, Kurunegala, Kiribathgoda, Kohuwala, Kottawa, Kotte, Kandana, Kotehena, Mahabage, Malabe, Marine Drive, Moratuwa, Mt.Lavinia, Templar Road Mt.Lavinia, Narahenpita, Nawala, Negombo, Nugegoda, Panadura, Pelawatta, Peliyagoda, Pepiliyana, Stanly Tillakaratne Mawatha, Nugegoda,Wattala, Wijerama and Super K outlets at Piliyandala, Negombo and Kaduwala and will open soon in Kandy.

Traditional favourites such us breudhers, mince pies, stollens, chrismas puddings, Yule logs, ginger cookies and many more delicious goodies will also be sold at all Keells Supers during the festive season. So don't forget to  spoil your loved ones and indulge yourself with yummy treats from the Keells Super Bakery.

Golden jubilee rewards

M.C. Abdul Rahims & Bros was started at Galle Fort (Southern Sri Lanka) in 1872 by an entrepreneur of his time, I.L.M. Mohamed Cassim in the name of his eldest son. M.C. Abdul Rahim and his three brothers and styled it as M.C.Abdul Rahim & Bros, a supplier of household items.

Later this venture grew into a thriving retail business and following the demise of Abdul Rahim, his business was taken into the capable hands of his brothers, who continued to improve the business by opening a second store in Pettah in the 1920s.

By this time the business had gained the respect of Sri Lankan households for supplying the highest quality household items and subsequently opened two more branches in Kandy and Wellawatte.

The stores offered cutlery and crockery as well as kitchen utensils as well as supplying items of exceptional quality to restaurants, hotels, the military and even airlines, which has established Abdul Rahims to be a "most trusted" name in its field even today.

Abdul Rahims' Wellawatte branch will celebrate its 50th Anniversary from November 27 to December 7, 2008, in commemoration of its opening in 1958. The celebrations will include special discounts, gift vouchers and gifts to customers, while appreciating the services of its employees.

Developing Sri Lankan MNCs

Free market forces are compelling consumers and companies alike to seek global solutions.

In this context, Sri Lankan companies today are challenged by global players with larger resources and capabilities in their own terrain. In this backdrop, local enterprises need to prioritise resources in order to win the battle.

This, along with the main focus on developing a Sri Lankan multi-national through people, processes & passion was the main talking point at the Takaful Corporate Lounge, organised by Amana Takaful Insurance (ATI) held recently. The Takaful Corporate Lounge was staged for the 3rd consecutive year featuring successful Sri Lankan entrepreneur. W. K. H. Wegapitiya, Executive Chairman, Laugfs Holdings Ltd., as the keynote speaker.

The objective was to provide ATI customers the platform to share a mind refreshing session of developing futuristic ideas and insights in management, strategy and execution tactics.

At the outset Wegapitiya stressed that his secret of success was learning from hardship, surviving with limited resources, seeing opportunities in every incident and innovation.

"I saw long-term benefit in every industry I embarked on and took bold decisions. Although many hesitated thinking about short-term gains, said Wegapitiya, citing his entry into Auto Gas conversions.

"It is teamwork that makes it happen", he emphasized, while highlighting the importance of industry knowledge. He added that leaders are needed and not managers, while effective crisis management by leaders is imperative. He said that the leader should lead from behind the curtains but make his people feel as if he was in front all the time adding that delegation and empowerment in decision making is a key to achieving this.

Talking on the issue tackling giants with immense resources, he said that smaller companies have the advantage of agility and speed, especially in making decisions and that when carefully analysed, areas where smaller companies can compete better will emerge.

 "24 hr., supermarketing was something industry experts said could not be done successfully in Sri Lanka, but we did it after analysing both local and overseas markets carefully and their emerging and current trends. Everything is possible once you set your mind to it,", he stressed.

Making his closing statement while answering a question from the audience Mr.Wegapitya said the one thing that Sri Lanka needs at the moment is unity and togetherness in all spheres of activity. He explained that unity and a common agenda is what has made countries prosper in the past and at present.

 Previous "Takaful Corporate Lounge" sessions were patronised by market trend setters such as Dialog Telekom CMO Nushad Perera & LOLC Managing Director Kapila Jayawardena.

Govt., bought teas for Rs.230 mn.,

On a directive of the President, Sri Lanka Tea Board entered the auction four weeks ago and purchased a little under one million kilograms of tea at a value of Rs.230 million, with a view to strengthening the market.

The proceeds of these purchases were belatedly settled to the brokers, who, in compliance with the Auction Bye-Laws, were compelled to make payment, in the interim, with their own resources, to the producers, for the teas sold through their catalogues to the Tea Board. It is comprehensible that Treasury formalities would engender an element of delay in the release of these funds.

However, the implications of this delay were far-reaching and served to compound the problem.

The Tea Board action is understandable and achieved a reduction in the percentage of tea remaining unsold, whilst injecting some much needed cash flow requirements to the Auction process. However, the plans for eventual disposal will have to be discussed with the Trade, so as to ensure that any export will not interfere or cause confusion with the well established sales channels and existing agency agreements. The import of teas to many Middle Eastern countries and the USSR (prior to its dismantling), which was controlled by the State some years ago, has now been liberalized in empathy with the concept of "Free Trade" adopted the world over. Therefore, the avenue of Barter Trade between friendly countries is not available any more.

Media reports predicted that the collapse of the Tea Industry was imminent, that the over one million people dependent on the Industry will be cast into destitution, that the crisis could only get worse and that the world had abandoned tea drinking.  However, these prophesies of doom have now been replaced by over-optimistic declarations that the crisis is behind us and all is well with the Tea Industry. This is not the case! The Tea Industry has still many trials to face before it can return to normality.

A very sensitive aspect in this scenario is the lot of the smallholder, the backbone of the Industry, who supplies about 70% of the raw material (green leaf) for the manufacture of the end-product-Black Tea. If they are compelled to neglect good agricultural practices on account of diminishing returns on their crop, the long-term consequences could be devastating.

Meanwhile, the manufacturers-private tea factory owners and regional plantation companies have to contend with depleted working capital, which is severely affecting their multifaceted operations.

Brokers, who have advanced funds to the producers on the basis of the higher prices that prevailed, find that they have no means of recovering their dues because the teas either have sold at much lower values or remain unsold.

Buyers are carrying stocks of tea at prices well above the current market, on which interest is fast accruing at phenomenal rates. This has heightened their cash flow problems.

The Industry is conscious of all these impediments and is bracing itself with a degree of confidence to meet the challenges that will confront it, supported by the relief strategies proposed by Industry stakeholders.

Flights to Colombo

Maldivian, the airline division of Maldives' Island Aviation Services began operations to Colombo recently. It will initially operate five daily flights.  This is the second destination which has been included in Maldivian International network after Trivandrum. The airline is represented in Sri Lanka by Hemas Aviation (Pvt) Ltd.  Associated at this event were Maldivian Managing Director Bandhu Ibrahim, Hemas Transportation sector Head Imtiaz Esufally and Hemas Aviation Head Chamara Ranasinghe.

Range of "finest" designs

Kohler Co., a global leader in kitchen and bath design announced its entry into the Sri Lankan market with the launch of its stylish and innovative range of bathroom products including toilets, lavatories, faucets, bathtubs, whirlpools and showers.

The U.S. based company's first showroom in Sri Lanka was recently inaugurated by Ceylinco Homes Group Deputy Chairperson Mrs.Padmini Karunanayaka in Colombo in the presence of several city glitterati and distinguished invitees from both the public and private sectors.

Located at Bauddhaloka Mawatha, the Kohler exclusive showroom showcases the innovative range of bathroom products including toilets, lavatories, faucets, bathtubs, whirlpools and showers. Originating from Kohler's globally acclaimed design centres in the USA and Europe, Kohler product range offers sophisticated and innovative bathroom products in Sri Lanka on par with the designs and trends prevalent internationally.

"It has been a Kohler tradition for more than a century to produce all products and services at a single high level of quality. To be competitive in today's plumbing business requires skilled and proud craftspeople that use advanced technologies and design to create products that are beyond the accepted and expected. This 'single level of quality' as we call it is ingrained in our company and in the more than 33,000 associates who form this company on six continents," said Kohler Managing Director. Sharad Mathur.

The products currently imported from Kohler's production facilities in Europe and the USA will be marketed in Sri Lanka at competitive prices. The products include some of the latest of Kohler's award-winning products like the s“k overflowing bath, the Purist Hatbox toilet, WaterTile shower sprays and Escale suite.

Mathur added that "Kohler Co. has decided to foray into the Sri Lankan market seeing the high growth in the sanitary ware market in Sri Lanka. The booming real estate industry and growing upscale consumer market present a big opportunity for Kohler. With a proven track record of design, innovation and craftsmanship, Kohler knows how to create a stunning statement in the bathroom. Our products epitomize the company's mission of 'gracious living' and allow homeowners to express their individual styles and personalities."

"EarthLung" takes WTM by storm

United Nations World Tourism Organization (UNWTO) Ministers' Summit, held during the World Travel Market (WTM) in London  recently saw Sri Lanka Tourism contributing a song/DVD 'A land like no other; A Tourism EarthLung'-an appeal in song by Alston Koch to care for Mother Earth. 'A land like no other; A Tourism EarthLung' the music DVD with song and lyrics by Koch focuses on Sri Lanka's rich bio-diversity, the green positioning with a strong  call to action by all citizens of the earth to act now.

Tourism Ambassador for Sri Lanka, Koch drew applause from delegates at the ministerial summit and subsequent rendering at the Virgin Airlines sponsored Responsible Tourism Awards Conference.

British State Minister of Tourism Ms. Barbara Follet said, "This is one of the best songs I have heard this year and the visuals of Sri Lanka in the backdrop were beautiful" and the opinion of the Chairman, World Travel Market, Fiona Jeffery, who said, "This is an emotional song and these highly inspiring words will help carry the Earth Lung initiative across the globe." She went on to say, "This is undoubtedly Sri Lanka's gift to the world"

The launch of the music DVD 'A land like no other; A Tourism EarthLung' was in pursuant to the initiative taken in October 2007 when Sri Lanka's: Tourism's EarthLung, was introduced to the world at the second world conference on 'Climate Change and Tourism' at Davos, Switzerland. The EarthLung programme seeks towards making Sri Lanka a carbon free destination by 2018. This groundbreaking idea was endorsed by the UNWTO as a way forward for tourism; it also has a strong appeal to travellers and particularly to those travelling to long haul destinations in mitigating "travel guilt."

Sri Lanka's work in conservation and environment conscience in other areas too were highlighted at the ministerial summit where Tourism Minister Milinda Moragoda and Chairman Sri Lanka Tourism Promotions Bureau Renton de Alwis presented Sri Lanka's vision and efforts towards attaining carbon neutral status.

Moragoda said: "This is an initiative to focus attention on the climate change issue and the need for all to take assertive action. We are nowhere near attaining this status, and all of Sri Lanka needs to work together to make it happen. Our Environment and Natural Resources Ministry is committed to making sure that Sri Lanka is a green country and Sri Lanka Tourism is providing a further impetus to those efforts. All sectors including education, forestry, wildlife conservation, tourism and the like need to work together to make it happen and that is the only way forward we have. Mitigating Climate Change is a matter of our survival. Tourism that is so dependent on the natural and the socio-cultural environment need to be in the forefront working with conservationists and all citizens in achieving this."

300 "crime prevention"boards

Union Assurance one of the leading composite insurers in Sri Lanka believes in corporate governance, and, displaying the importance of Corporate Social Responsibility Union Assurance PLC started its 8th Phase of the Crime Prevention programme together with the Sri Lanka police in Uva Province by installing crime prevention awareness boards.

Those display boards provide telephone numbers of the relevant police stations to encourage citizens to call and inform the authorities when they detect crime. This also helps the motorist to identify the relevant police area they are in, while travelling.

This unique project initially started out from the Western Province in 2005 and gradually extended as an island wide project, covering the provinces, including the North Western, Southern, Central, Sabaragamuwa, North Central, East and Uva Provinces, also extending towards the North and East of the island. A total of 300 crime prevention boards have already been mounted throughout the island. 

Union Assurance has also handed over the continuous maintenance of the boards and sheltered security checkpoints to an authoritative agency in order to assure that the already existing boards and check points never get abandoned.

Union Assurance, being in the business of protection goes a step further through this initiative to be in line with its brand promise "We will take care of you for life."

Top award

UK's oldest motoring magazine, Autocar, has named Hyundai as its Car Company of the Year at its annual award ceremony at the Horticultural Halls in Westminster London recently.

Editor Chas Hallet presented the title to Hyundai European Research and Development Centre in Germany President. Nam-Yong Kim.

The product of a merger in 1998, Hyundai-Kia currently dominates the Korean domestic car market with an 80% share and this year became the world's fifth largest car-maker according to Automotive News, U.S.A.

With plants in North America, China, Europe and other locations including Russia, the Middle East and South East Asia, both companies began making automobiles in the 1960s and didn't start exporting their products until the 1980s.

"Tea Castle"

Euro Scan Exports (Pvt) Ltd., the marketers of Mlesna tea, opened the "Mlesna Tea Castle" in Patana, Talawakelle recently.

The "Castle" is situated overlooking Devon Fall.

 "The Castle is built in medieval Scottish style as a tribute to the father of Ceylon Tea, Scottish tea planter James Taylor," said, Euro Scan Exports Managing Director Anselm B. Perera.

The Castle Museum displays tea artifacts of yesteryear with "educational" photographs depicting the early years of the tea industry.

Launched in 1983, the Mlesna brand of Ceylon Tea is marketed worldwide by Euro Scan Exports. Within 25 years, Mlesna enjoys a growing clientele in more than 50 countries including Canada, Russia, UK, Japan, Singapore, Taiwan, Ukraine, Maldives, Australia and the Middle East, with a product range exceeding 3,500 items.

Grooming

British High Commissioner in Sri Lanka Dr. Peter Hayes recently spent time with Hameedia's senior management, Lankan corporates and the media to share with them his ideas on a range of concepts from  "The Art of Bespoke Tailoring" and the  "Power of Men's Clothing" to  "How to adopt Power Dressing during Times of Crisis" and  "The Impact of Menswear in the 21st Century."

Joining him was Hameedia Managing Director Fouzul Hameed.

Hameed said that he planned to open a "Men's School of Grooming" in the near future at the Hameedia Flagship Store at Wellawatte.

"We plan to transform the rooftop of this store into a space with total solutions for the Sri Lankan man. We will elevate the current level of grooming,"  he added.

Twice daily

Emirates will double its flights to Milan to twice daily from Dubai from January 1.

Emirates' Senior Vice President Commercial Operations Europe Nabil Sultan said: "This has been a good 18 months for our passengers travelling in and out of Italy from across our network. First, there was Venice and the opening up of the Italian north east, then we gave better access to Milan and Rome, making them non-stop daily to and from Dubai, and now we're stepping up flights to Milan. We are committed to the Italian market."

Emirates has been flying to Milan since 2000, and in addition to Dubai, most passengers travel there from cities including Manila, Colombo, Melbourne, Sydney, Perth, Johannesburg and Bombay.  Passengers travelling in the other direction mostly head for Dubai, Colombo, the Maldives, Mauritius, Dhaka, Bangkok and the Seychelles. The extra frequency and improved connections in Dubai will ease travel to Africa, China and Australasia.

Sultan added: "On the back of this double daily flight, we also expect a further increase in cargo trade and that's great news for importers, exporters and the business community in general. Italy is already a major trading partner for the UAE."

Designer fashion goods, cars and car parts are among the items carried by SkyCargo out of Milan, much of which go to the Middle East, Far East and Australia.

Inbound consignments include mainstream fashion garments, fruits, vegetables and fresh fish with key source markets being the Subcontinent and the Far East. With the second flight, overall SkyCargo capacity will leap to nearly 600 tonnes, including the weekly Boeing 747 Freighter service. Milan is also a major financial, business and design centre.

Ceylinco Insurance PAT down 26%

Ceylinco Insurance in the third quarter (3Q) ended September 30,2008 saw net profit decline by 26% year on year (YoY) to Rs. 83.89 million while net profit in the nine month period ended September 30,2008 increased by a marginal 3% YoY to Rs. 336.56 million.

Tokyo Cement PAT down 43%

Tokyo Cement Co., in the 2Q ended September 30,2008 saw net profit decline by 43% YoY to Rs. 157.64 million while net profit in the nine month period ended September 30,2008 decreased by 17% YoY to Rs. 370.12 million.

Asiri Hospitals PAT down 53%

Asiri Hospitals in the 2Q ended September 30,2008 saw net profit decline by 53% YoY to Rs. 23.18 million while net profit in the first half ended September 30,2008 decreased by 72% YoY to Rs. 27.07 million. Source: John Keells Stock Brokers

However, the bourse during this period experienced a net foreign inflow of Rs. 617.2 million, mainly due to some extraordinary items, like Al Futtaim Dubai's successful mandatory offer on AMW and some internal transfers that were recorded as foreign purchases.