Two companies that have benefited from using CP "techniques" to cut down costs are Kotagala Plantations by recycling water used for rubber manufacturing, thereby reducing their water bill and AMW, by using tyre buffing dust (the residue accumulated when making tyres) to make floor mats. (Cleaner Production (CP) consultant P.P. Perera lecturing on CP at the Ceylon Chamber of Commerce on Wednesday)

Interest cost doubles

LOLC Group in the second quarter (2Q) ended September 30,2008 saw profit after tax (PAT) increase to Rs. 279 mn., after providing Rs. 78 million as corporate tax.

Group operating profit before net interest cost in the first (1H) increased by 87% year on year (YoY) to Rs. 3,267 mn., while PAT increased by 55% to Rs. 425 mn.

Group's net interest cost in the 1H increased by 97% to Rs. 2,818 mn., due to increase in interest rates as well as increase in borrowings supporting growth. However, the Group was able to contain its interest expense by borrowing from foreign financial institutions at a lower cost than borrowing locally.

Group provisioning for doubtful debt for the Q was at the same level as last year, at Rs. 77 mn., and provisioning for 1H was Rs. 150 mn., with emphasis placed on collections and containing non performing loans.

The LOLC Group in the 2Q ended September 30,2008 saw Group income increase by 96% YoY to Rs. 2,706 mn.

Income in the 1H increased 76% YoY to Rs. 4,666 mn.

Group Managing Director Kapila Jayawardena said that LOLC was able to achieve strong growth during these volatile times by way of careful portfolio management through sound credit practices and risk mitigation strategies, a healthy product mix and effort of its committed staff members.

LOLC Group's product portfolio includes finance and operating leases, hire purchases, loans, Islamic financing, debt factoring, invoice discounting, working capital and micro finance loans, insurance brokerage services, savings and fixed deposits, resident and non resident foreign currency accounts and fleet management services including vehicles for short term as well as long term hire.

Group operating profit before net interest cost for the Q more than doubled to Rs. 1,954 million YoY. Operating profit for the quarter increased by 174% YoY to Rs. 314 million.

LOLC is one of the few institutions in Sri Lanka with direct access to such funding opportunities due to its financial stability and strength.

LOLC's subsidiary, Lanka ORIX Finance Company received Central Bank approval to mobilise foreign currency deposits, in addition to mobilising local currency deposits, a first for the non banking financial sector.

Deposits mobilised from customers nearly doubled when compared with the previous year to Rs. 4,583 mn.. The ATM card for savings deposit holders was launched in September, and depositors can withdraw cash from over 343 Commercial Bank ATM, or from the company's own ATM located at the LOLC head office in Rajagiriya.

Fitch Ratings upgraded the credit rating of Lanka ORIX Finance Company to A- (lka), and affirmed LOLC's credit rating of A (lka).

Total assets of the Group increased to Rs. 48,654 mn., from Rs. 28,621 mn., a year ago. LOLC entered in to an agreement with the Postal Department to service customers through the postal network. LOLC began micro finance operations in four post offices, Malsiripura, Balangoda, Alpitiya and Kuliyapitiya early this month as a result.

Platinum for Accounts

Commercial Bank's Annual Report has been adjudged the best among financial sector companies in the SAARC region every year since 2001, while its 2004 Annual Report was selected as the best across all categories in the region, "making the Bank the most consistent winner of these awards in South Asia."

In addition to SAFA awards, the Bank won the Joint Gold Award for 'Excellence in Annual Financial Reporting' at the recent Annual Report Awards presented by the Institute of Chartered Accountants of Sri Lanka (ICASL). The Bank also won the Gold Award in the Banking Sector category and the Joint Silver award in the Management Commentary category at this prestigious awards ceremony.

Commercial Bank also won the inaugural award for Corporate Governance Disclosures in last year's SAFA awards and was the second runner up in the overall award across all categories.

Judging for the SAFA Awards is based on the scrutiny of annual reports nominated by the "apex" accounting bodies in India, Pakistan, Bangladesh, Nepal and Sri Lanka.

The annual reports nominated by these bodies are judged in seven categories: Banking Sector & Non-banking in Financial Sector; Manufacturing Sector; Communication and Information Technology Sector; Hospitality, Health, Transport and Shipping sector; Non-governmental Organizations and Public Sector Entities.

Latest in video-audio tech.

Sony recently launched its Bravia LCD TVs and the latest Sony Cyber-shot cameras to the local market.

A company statement said that the new Bravia T Series, an entry-level LCD TV and the X450A, the signature LCD TV model not only continues Bravia's reputation for delivering high-quality images with leading imaging technologies but also highlights Sony's leadership and commitment in the LCD arena.

The T models equipped with Dual Tweeters effectively delivers natural high frequency reproduction with accurate vocal clarity to the ears. On the other hand, models with the 3D Woofer  boasts powerful bass through the ingeniously designed Side Duct that strengthens bass reflection and broadens sound fields. Through either choice, users are treated to an audio experience while watching their favourite programming.

Siedles General Manager David Martenstyn said, "Being the trendsetter in the LCD TV market, Sony understands our customers' desire for the best in home entertainment that satisfies their pursuit of pleasure."

Siedles are the local agents of Sony.

Bravia T Series feature a built-in FM radio as well as a customisable 5-Band Graphic Equalizer. Based on three preset modes (Dynamic/Standard/Clear Voice), the equalizer function allows users to enjoy richer sound according to their preferences  and choice of content.

The T Series also sports the Bravia Engine 2, a digital integrated picture-enhancement engine. Combined with Sony's algorithms such as Intelligent Picture and MPEG Noise Reduction.The T Series delivers crisp, noise-free images with sharp edges every time, ensuring the ultimate in viewing entertainment. 

Powered by Bravia Engine 2 PRO, a high definition video processor that integrates picture enhancement technologies like the DRC-MF v3 (Digital Reality Creation), the new X450A series enables seamless quality viewing from both Standard Definition and Full HD sources. Additionally, the Bravia Engine 2 PRO technology improves detailed textures and dark scenes in imaging to produce crisp and clear images with more depth and increased sharpness.

"Being at the forefront of technological innovation, Sony aims to constantly redefine the boundaries of audio and visual LCD TV technology to deliver the ultimate entertainment experience," says Martenstyn.

Meanwhile,the latest Sony Cyber-shot cameras feature the unique Smile Shutter Function,"proving that a nice smile can be contagious."

With the implementation of the Smile Shutter function, as and when required by the user, Sony has developed a unique feature that automatically shoots when a smiling face is detected. The new Cyber-shot DSC-T77 and DSC-T700 are the latest reiterations that continue that tradition.

"For the DSC-T77 and DSC-T700, we combined Sony's trademark stylish design with cutting-edge technologies such as enhanced Smile Shutter, Face Detection and Intelligent Scene Recognition to provide the best camera experience to the user," Said Martenstyn.

At 13.9mm slim, the DSC-T77 is the slimmest Cyber-shot camera with Optical SteadyShot optical image stabilizer that eliminates blurring caused by camera shake as well as an improved high sensitivity mode of ISO 3200 that allow for faster shutter speeds which removes blur images captured especially during indoor or twilight shoots.

With its 4GB internal memory and easy photo management function, the DSC-T700 camera also serves as a large portable photo album, giving users the ability to capture, view and share memories wherever they go. "With 4GB of internal memory, you now have enough storage space to carry 40,000 photos on the DSC-T700, without the need for an additional Memory Stick."

Both cameras also integrate several key technologies and features that deliver high picture quality and results under a wide range of shooting conditions:

Both DSC-T77 and DSC-T700 sport a 10.1-megapixel Super HAD CCD sensor paired with a newly developed Carl Zeiss Vario-Tessar 4x optical zoom lens, giving the DSC-T77 and DSC-T700 the ability to capture beautiful and vivid photos while remaining slim. The BIONZ image processing engine on both cameras also ensures high-resolution images and fast camera performance.

Sohli reminisces closed economy era

Business leader and industrialist Sohli Captain, whose company Paints & General Industries is the local manufacturing partner for CIC Paints and now for Akzo Nobel, elaborated on how local manufacturing began during an era when imports were restricted and every single machine needed had to be turned out locally.

Captain was speaking at a recent function where CIC Paints Lanka Pvt Ltd unveiled it's new corporate identity Akzo Nobel Paints Lanka(Pvt) Ltd, at  an event organized for its partners, key stake holders and customers.

Captain has a 50% equity stake in Akzo Nobel Lanka, while the balance is held by Akzo Nobel NV.

The Dutch multinational Akzo Nobel NV, the largest coating manufacturer in the world, acquired Imperial Chemical Industries PLC (ICI) worldwide in January 2008. CIC Paints, an associate of Chemical Industries (Colombo) Ltd, till then, was a part (ie CIC Paints) of ICI Paints plc, the Global leader in decorative paints and owners of the Dulux brand. Chemical Industries is also controlled by Captain.

Through this acquisition Akzo Nobel is now the global leader in decorative paints, in addition to already being the world's largest coatings manufacturer overall, said a statement.

CIC Paints Managing Director Gerald de Saram said, " Following the acquisition of ICI, Akzo Nobel has become both the largest coatings manufacturer in the world and the largest manufacturer of decorative coatings as well.

 The company also recognized key stakeholders and past business leaders who made contributions to ensure the present standing of the company. They also recognized with appreciation past stalwarts of the company such as Chris de Saram who played enormous roles in driving this business to what it is today.

De Saram continuing said the Company wished to project a more contemporary image of itself and be viewed as something "modern, global and strong, a business with global resources within its reach and all this available for upgrading the local business for the benefit of Sri Lankan consumers. A closer identity to international business we also expect, will eventually lead to greater investment in this market by Akzio."

Akzo's range of vehicle refinish coatings are also presently sold here. Its business in Sri Lanka will in future be controlled and managed by the newly named, Akzo Nobel Paints Lanka.

"Garden of Eden"

Ceylinco Homes, the only Superbrand property developer in Sri Lanka and the developer of Eden Gardens luxury housing estate announced a special offer for those investors who wish to give themselves a gift of a new home this season.

Discerning home owners can now move in to a new luxury home at Eden Gardens on a down payment and the balance to be followed in nine interest free monthly instalments.

This stately gated compound at Thalawathugoda blends the best of nature with aesthetic homes that reflect paradise itself.

Despite being a "heartbeat" away from Colombo, Eden Gardens is located in a picturesque country setting. Bordered by a rubber plantation on one side and an expanse of rolling greens on the other, Eden Gardens is a "breathtaking" sight.

A few homes are available for sale but owners are assured of living in an "august" community peopled by professionals, CEOs and directors of leading companies, as also expatriates, who have recognized the value this project offers.

Since the laying of the project's foundation stone in 2004, right up till today, the value of an Eden Garden home has appreciated over 30% every year.

Spread across 13 acres, homes are available in four styles-Cedar, Maple, Ebony and Pine. The extent of plots range from 12-20 perches and the villas boast 2,000-3,500 sq. ft in area.

Eden Gardens is akin to living in a mini city of one's own, complete with a club house, swimming pool, gymnasium, squash and badminton court, jogging track, children's play area and a mini market. 24-hour security is provided by security guards. Completely child safe, children are free to roam safely within the gated compound. Adults too can unwind with some sporting activity or take long walks along its picturesque boulevards.

Owners of Eden Gardens homes have appreciated the designs by Australian architects Steven Menzies of Harvie and Ambignano Group in collaboration with Design Consortium Ltd., responsible for the structural, mechanical and electrical engineering aspects of the project. This project has attracted expatriates and the Sri Lankan Diaspora who have perceived it as a sound and secure investment backed by the country's diversified conglomerate Ceylinco Consolidated.

Branching out to B'desh

CIM Sri Lanka Region (SLR) expects to intensify its expansion strategy both regionally and provincially in 2009, its Chairman Shiraz Latiff said.

Speaking at its 13th AGM held under the theme "Marketing to the Masses and Marketers to the Boardroom" in Colombo recently, Latiff said that the highlight of CIM SLR's achievement was being singled out for the Best International Region Award for the fourth consecutive year at CIM International Chairmen's Conference.

CIM SLR has identified 4 key stakeholder groups-current and potential students, members who have already completed the qualification, channels and corporates in its endeavour to build CIM as the preferred choice for marketing and fostering excellence in the marketing profession.

Unfolding their strategy for the coming year, Latiff said their objectives are: Increased benefits and facilities for current studying and professional members, taking CIM to the corporates and the industry and expanding provincially and regionally.

They hope to set up at least one CIM Accredited Study Centre each in Kurunegala, Galle and Kandy; and branch out into Bangladesh by launching its second Member Group in 2009. Among the ground breaking initiatives to be launched next year were: Joint programmes in collaboration with other professional institutes; proposed Knowledge Hub, Membership Hub and Resource Hub to enhance its facilities to the members and provincial and regional expansion initiatives.

Among the key initiatives taken by The Institute towards student development and education support during 2008 were the launch of the Introductory Certificate in Marketing programme, introduction of local currency payment and the easy payment scheme through HSBC and American Express credit cards, launch of CIM Student Chapters and career guidance seminars.

In addition CIM Professional Series, CIM Talking Point Series, Fellows' and Chartered Marketers' Forum, CIM Ball, CEOs' Breakfast Forum and the Annual Conference were amongst the regular programmes organised this year.

In July 2008 CIM SLR marked another milestone in The Institute's history by launching the first CIM Member Group in Asia, in Maldives.

CIM SLR Honorary President Amal Cabraal chaired the meeting.

254 craftsmen

Two hundred and fifty four youth recently trained at the Handwerk Centre, Payagala were feted by Construction Minister Rajitha Senaratne.

There is an unmet demand to fill over 200,000 vacancies overseas and possession of vocational qualifications would make one competitive to secure such jobs Senaratne said.

Handwerk was established by the Federation of Chambers of Commerce and Industry of Sri Lanka (FCCSIL) and National Construction Association of Sri Lanka (NCASL) with technical collaboration with Handwerkskammer Koblenz, Germany in 2007.

Financial assistance was received from the Netherlands (principal sponsor) and German Governments and Rheinland Pfalz State. The original objective was to meet the demand for trained personnel for the industry to meet the reconstruction tasks that arose as an aftermath of the Tsunami catastrophe.

FCCISL President Kosala Wickramanayake said that one more Handwerk Centre has been established in Thirukkovil in the Eastern province.

He added that the Handwerk Centres of Western and eastern provinces would collectively train over 2,000 youth in various trades in the construction industry.

Handwerk Centre Management Board Chairman Saliya Kaluarachchi said that here were 254 youth trained in various fields related to the construction industry. Out of the 254, welding has the highest number of participants with 41% followed by air conditioning (19%) and masonry and carpentry 17% each.

Drop in business visits to Colombo

Business visits to Colombo are expected to fall due to current economic conditions, John Keells Stock Brokers in a report said.

It also said that Taj Lanka Hotels plc recorded a 7% decline in revenue to Rs. 198 mn., during the second quarter ended September 30,2008 ( 2Q2009) to Rs 198 mn., while loss for the Q was Rs 20 mn,  over a 1,800% year on year (YoY) increase in losses.

First half (1H) 2009 registered a 5% growth in turnover to Rs 376 mn., while losses reduced by 3% to Rs 47mn.

  Average occupancy for 1H2009 was 36% while average room rate was Rs 6,593. Arrivals by Indian nationals, one of the main target groups of TAJ, reduced by 21% to 37,101 during the period, March to September.

  The company reduced its expenditure on marketing by 38% during 1H2009 to Rs 3 mn. Other operating income which includes management fee from Airport Garden Hotel dropped by 8% to Rs 7mn. Administration expenses for  1H2009 were 11% higher than the comparative period last year at Rs 50mn.

  Finance costs in 1H2009 grew by 26% to Rs 28 mn., mainly due to increases in long term borrowings by 56% to Rs 492 mn.  "We expect Taj to record a Rs 60 mn., loss in fy '09," the report said.

CIMA imbroglio

CIMA CEO Charles Tilley said that business in Sri Lanka will continue as usual and members and students in Sri Lanka can be assured that there will be no impact on the service and support they can expect despite the suspension of the' Sri Lanka Divisional Council that took place on December 12.

Regional Director, South Asia and Middle East, Bradley Emerson said, 'There is no need for our stakeholders to worry over the divisional support. Our operations are continuing and even today the CBA examinations are been conducted at the division. All activities and services to the members and students will continue as usual.'

Earlier, CIMA Sri Lanka President Ms. Gowri Shankar in response to this suspension said that Glynn Lowth, President CIMA Global alleges that this decision was taken due to some failures in governance within the local Council in Sri Lanka. "This is a serious statement but strangely no specific instances have been made against the locally elected Council at any time, she said.

The current Council of Sri Lanka Division were duly elected into office by the Sri Lankan membership in July this year at a properly convened Annual General Meeting through a democratic process at which a representative of the London office was also present. Hence it is surprising that within a matter of a few months' unspecified issues of governance have surfaced against the local council, when in fact specific issues of failure on the part of the London office to follow accepted practices of good governance that CIMA stands for were pointed out at the AGM and in the resolutions, letters, etc., over a period of 18 months.

Therefore this serious action by CIMA London is shortsighted because CIMA Sri Lanka Division is the largest grouping of members and students outside the UK and also the Council consists of qualified professionals of high standing, said Shankar.

Penetrating "Life"

HNB Assurance plc recently announced that it has engaged the services of Bathiya and Santhush as its Brand ambassadors for a period of three years.

The company will aim to increase the penetration of its Life insurance products especially among the youth, though this duo.

Bathiya N Santhush have already secured their presence in the international music scene recording for Sony Music and Universal Music India, becoming the first Sri Lankans to sign up for an International Album. They own and operate "Saregama Audio and Video Productions," a state of the art multimedia production house catering to local and international markets and "Show town Entertainment," an events company which handles most of the television and showbiz productions in the country.

HNB Assurance is regarded as the fastest growing insurance company in Sri Lanka. In only seven years of operation, it has grown rapidly to secure the sixth rank in terms of combined turnover among 15 insurance companies in Sri Lanka.

Fitch Ratings Sri Lanka has given HNB Assurance a national insurer financial strength rating of 'A (lka)' and a national long-term rating of 'A- (lka)' with stable outlooks. HNB Assurance is only the second insurer in Sri Lanka to obtain a rating of its financial strength from Fitch Ratings.

 Lanka Monthly Digest has named HNB Assurance as one of the top 100 brands and ranked it in 57th place. Considering the Company's financial strength and several other factors LMD has extended a B + rating to HNB Assurance .

HNB Assurance also won the Silver Award in the Insurance Sector category at the 2008 Annual Report Competition conducted by The Institute of Chartered Accountants of Sri Lanka. This is the fourth consecutive time the Company has participated in this competition and in all such instances the Company has won recognitions.

Energy saving devices

Visit your nearest Abans showroom for the widest range of LG Door Cooling Refrigerators and LG, Mitsubishi and Haier air conditioners (A/Cs) with innovative Inverter Technology that saves electricity and help to reduce your electricity bills by almost half.

The heaviest consumers of electricity in your home are your refrigerator and A/Cs, especially if they do not comply to any standard and have no energy saving devices.

With today's high cost of electricity, it is important to use energy saving appliances that save on your electricity bill.

Although you may use you're A/C sparingly, your electricity bill will still be high because standard air conditioners consume large amount of energy. Imagine a home with one or more air conditioners continuously working on an average of 8 - 10 hours a day? What can you do to bring down your electricity consumption?

Now Abans has the solution.

A/Cs with innovative Inverter Technology saves electricity by upto 51% and at the same time keeps you healthy. Apart from reducing your electricity bill by almost half, it has low noise levels and powerful cooling, healthy, clean, germ and dust free air.

Abans offer you the widest range of A/Cs with Inverter Technology from the world's best brands, LG, Mitsubishi and Haier to select from.

People with asthma, sinus and respiratory illnesses who are affected by air conditioning will be amazed by the relief they get with LG Plasma A/Cs.

The reason being that apart from saving energy, Plasma Air Purifying System's innovative filters in LG A/Cs, protect and safeguard your health by eliminating germs, dust, bacteria, pollen and house mite ( some of the factors that aggravate respiratory illnesses) and give you fresh, clean air.

So, change to Inverter A/Cs from Abans today, because they offer you much, much more than just keeping you cool and comfortable.

Unlike A/Cs, refrigerators work continuously 24 x 7, and the compressor needs to cool to a lower temperature.

So, in effect they are the highest consumers of electricity in your home. Each time the fridge door is opened, cool air escapes and the compressor uses energy to replenish the lost coolness. The longer the compressor works, electricity consumption increases.

Unconventional fridges have no energy saving devices or thermostat to control temperature. The fridge works continuously, cooling more than the required temperature which spoils foods like vegetables and fruits and unnecessarily wastes electricity.

LG Door Cooling Refrigerators are the only fridges in the world that have vents on the sides as well as the door to replenish cool air faster over time the door is opened and closed so that the compressor is shut off quicker preventing energy wastage. This not only results in greater electricity savings and lower electricity bills but also preserves your food better to stay fresh longer.

LG has the only genuine door cooling fridges because they hold an international patent for door cooling technology that no one else can copy for 15 years.  So, if any other brand claims to have "door cooling" remember that if it's not LG, then it's not door cooling.

EU, US car sales take hit

Kia Motors Corporation recently announced that its cumulative global sales (export sales, domestic sales and sales from overseas plants) of passenger cars, recreation vehicles (RVs) and commercial vehicles in the first 10 months of the year recorded 1,172,958; a 12.7% year-on-year (YoY) increase.

Kia announced that 110,421 vehicles were sold globally in October, a 1.6% YoY decrease.

Kia experienced strong sales increases in China, Korea and general markets. Kia posted YoY sales increases in China (11,351 units, a 36.8% YoY increase), Korea (33,609 units-a 33.9% YoY increase) and general markets (22,496 units sold-a 15.2% YoYincrease).

Meanwhile, in Europe and North America, 24,557 (a 21.2% YoY decrease) and 18,408 (a 34.5% YoY decrease) Kia vehicles were sold in October, respectively.

International Business Division Senior Executive Vice President and COO Hyoung-Keun Lee said, "Although the automobile industry is feeling the brunt of the economic downturn, we continue to see strong growth particularly across China, Korea and general markets in October. "

He added, "We are well-positioned to satisfy the growing demand for fuel efficient and compact vehicles with our new products coming down the pipeline.

Strategic vehicles like the cee'd in Europe continue to sell well and, in fact the cee'd was our highest selling car globally in October. We are also anticipating the launch of the Soul early next year in most markets as well as a number of additional fuel efficient and compact vehicles later in the year."

Cumulatively, through the first ten months of 2008, China (123,853 units sold) and general markets (216,269 units sold) have experienced the largest YoY gains of 37.9%, and 34.3%, respectively. Cumulative sales increases have also been experienced in Korea (an 18.3% gain from 262,780 units sold) and Europe (a 4.7% gain from 293,310 units sold), while North America experienced a decrease (3.7% decrease from 276,746 units sold).

So far in 2008, Kia's best selling model in overseas markets has been the C-segment Cerato (known as 'Spectra' in some markets) with 166,688 units sold. It is followed by the B-segment Rio at 133,864 units and the C-segment cee'd at 128,672 units. Kia's Sportage compact SUV and the A-segment Picanto continue to perform well with 122,330 and 81,136 units sold, respectively. 580,846 passenger cars have been sold so far in 2008 representing a 19% YoY increase and making almost 50% of sales.

Rs. 1 bn., debenture offer

Seylan Bank's Rs. one billion Debenture Issue which is underway has stimulated the market with attractive rates of interest to cater to the investing public for five years.

Listed on the main board of the Colombo Stock Exchange, they are unsecured subordinated redeemable Debentures amounting to LKR 400 million with an option to issue at the discretion of the Board three further tranches of LKR 200 million each in the event the issue is oversubscribed.

Investors have the option of subscribing for debentures offering either a fixed rate of interest or a floating rate of interest.  A fixed rate option comprises an annual interest rate of 21.5% or a monthly interest rate of 20.5% per annum (Annual Effective Rate 22.5% per annum).

The first floating interest rate option is based on the simple average of the three month weighted average Treasury bill (T. Bill) rate (after tax) plus 2.5% payable quarterly and the second floating interest rate option is based on the simple average of the one year weighted average T.Bill rate (after tax) plus 2.5%, payable annually.

Fitch ratings Lanka affirmed Seylan Bank's National Long Term Rating of BBB+ (LKA) and Stable outlook, and assigned BBB (LKA) for its unsecured subordinated redeemable debentures.

Seylan Bank Director/General Manager/Chief Executive Ajita Pasqual said, "despite difficult market conditions both  internationally and locally, we are positive that the country as a whole and we at Seylan  Bank will successfully weather the storm in order to sustain growth rates as anticipated, "

"We are confident that Under the guidance of our founder Chairman Deshamanya Dr. Lalith Kotelawala, having concentrated on micro Loans and mobilization of a large number of small deposits, we have broad based both portfolios giving the necessary stability and the ability to progress as planned.  Being the largest issuer of Visa cards and also concentrating on early identification of overdue advances and adopting corrective measures, we would align ourselves to changing market conditions," he said.

"We would also like to mention our loyal customers and staff who have stood with us in all times and we have no doubt that the industry would surmount the odds in order to sustain the necessary growth to boost the Sri Lankan economy."

Seylan Bank also launched "Ceylinco Seylan Gold Heart" to offer the public an opportunity to reap the benefits from a gold market in addition to winning the prestigious award for the "Best Branch Automation and Networking Project 2007" at the Asian Bankers Summit 2008 held recently in Hanoi.

25% discount on interest

By Ashwin Hemmathagama 

Seylan Bank PLC (CSE: SEYL) with its vision to be the most "caring and trusted" bank committed to delivering innovative solutions and building life long relationships has come out with yet another groundbreaking product to its credit card holders. Following are excerpts of an interview held with Seylan Card Centre Senior Deputy General Manager Tissa Nanayakkara on new developments and seasonal offers.

Question (Q): What is this latest development at the Seylan Card Centre?

Answer (A): This new scheme is another pioneering move taken by the Seylan Bank which has rapidly gained trust and would sure to continue winning hearts of customers with 25% of the interest being waived off when the Seylan Visa Credit Card is used.

Q: Will you explain this new feature?

A: When the Seylan Visa Credit Card is used 12 times, with each transaction being Rs. 2,500 or more upto January 15, 2009 we will reimburse 25% of the interest charged for February 2009.

Apart from this offer we have selected over 85 partner establishments covering leisure, medical, telecoms, computers, car care, baby care, jewellery, household, personal care, dining, and opticians among the many other sectors where Seylan Visa credit cardholders could enjoy special discounts.

Q: With growing competition in the credit card industry, how do you place this offer?

A: Seylan Bank being the only financial establishment that absorbs stamp duty, Seylan credit card is the most preferred card in the market. We have observed that this new scheme is becoming popular with a growing demand for credit during this festive season. This is the reason we have topped this offer with discounts from selected outlets exclusively for  Seylan Visa credit cardholders.

Q: Will you highlight the turning points of the Seylan Visa credit card?

A: Seylan Bank entered the Credit Card industry in 1992 by setting up a domestic credit card unit to issue the Seylan Silver Card and the Seylan Gold Card. The success of the credit card programme prompted the bank to apply for principal membership status with Visa International and the 1st Seylan Visa International Credit Card was issued in 1995. Today Seylan Bank is one of the largest Visa card issuers in Sri Lanka.

Q: What are the other types of cards issued and serviced by Seylan Bank?

A: We launched the Visa Debit Card in March 2001 for the 1st time in Sri Lanka. The unique feature of this card was that cardholders were able to use the card at any Visa accredited merchant outlet for purchase of goods and services in addition to withdrawal of cash from any Visa ATM in Sri Lanka or overseas. Today the Visa debit card is issued to all customers instantly over the counter, as an "Instant Issue Card."

In March 2005 Seylan Bank launched yet another card for the 1st time in Sri Lanka namely the Visa Traveller's Card. The Traveller's Card is considered to be safe, convenient and secure in comparison to carrying traveller's cheques. Traveller's card relieves the customer from the burden of having to spend time and money locating travel agencies in order to encash travellers cheques at various disappointing exchange rates.

In October 2005, Seylan Bank introduced the Visa Pre-paid Rupee Card. The Pre-paid Rupee Card is a Visa Card and issued for domestic purposes.  The unique feature of this card is that the applicant does not have to open a current or savings account to obtain this card. The card could be used for purchases at Visa accredited merchants and also at all Visa ATMs in Sri Lanka.

Updated qualification

CIMA (Chartered Institute of Management Accountants), the world's leading and largest professional body of management accountants, on Monday launched its updated professional qualification, CIMA Future at the CIMA annual Lecturers' Conference in Warwick. The new qualification, developed in conjunction with Bath University follows research, and contributions from more than 4,500 employers and other stakeholders worldwide.

 CIMA Education Director of Robert Jelly said: 'In the present economic climate it is more important than ever for finance professionals to be trained and attuned to the current needs of industry.  As the CIMA qualification is updated every four years after extensive consultation with leading employers and business, it acts as a quality benchmark for management accountants.  Employers know that CIMA qualified finance professionals have up-to-date skills and expertise to strategically manage their business, enabling them to stay competitive.'

As an employer-led body, CIMA is the only professional accountancy qualification that is reviewed and updated every four years to ensure it remains the most relevant international accountancy qualification for business. 

The first exams on the new qualification will be on May 2010. A dedicated website area, explaining details of the new qualification is available.

The three pillars of study for all levels are now named Enterprise, Performance and Financial, and the pre-requisite entry requirements still apply to gain entry into the professional qualification.

The Managerial level is now split into two parts: Operational and Managerial.  This means the qualification structure will now comprise three levels beginning with Operational, rising to Managerial, and then Strategic.  There will be a new stepped qualification for students successfully completing three papers at Operational level-CIMA Diploma in Management Accounting. The decision to split the Managerial level into two parts reflects the career progression and development of students by marking their achievement at attaining this level of the qualification.

The Test of Professional Competence in Management Accounting (T4) will now comprise two parts:- Part A-Initial Professional Development: Work Based Practical Experience comprising the practical experience requirements from the 2005 qualification.

Part B is the case study examination.  T4 assessment is the ultimate test of professional competence and fitness to practice as a Chartered Management Accountant by bringing together the two key elements of technical expertise and practical experience.

"Greening" students

Brandix Group plans to take its "Green" message to tens of thousands of young Sri Lankans at the forthcoming EDEX higher education and careers exhibition.

The Group has once more come forward as Platinum Sponsor for this annual event. A Brandix spokesman said the company's numerous initiatives in the sphere of environment-friendly manufacture would be showcased at the 'Green Zone,' a new feature at EDEX.

The sixth edition of EDEX is expected to comprise 300 stalls and takes place at the BMICH from January 23-25 and in Kandy from January 27-28.

Brandix Chief Peoples Officer Nigel Forbes said, "We now have 25,000 employees in whom commitment to the environment has been infused. EDEX provides a great opportunity to take this message to a much wider and impressionable audience."-

$ 300,000 orders

"I was able to obtain US$ 300,000 worth of 'business contacts' for fruits and vegetables," an exporter," said.

Sarath Chandra De Silva, Chairman, International Foodstuff Co. Agri Bio Tech (Pvt) Ltd., who recently led a trade delegation to Jordan and Kuwait said, "Our visit assisted in expanding our businesses which would lead to Sri Lanka emerging as a future trade centre. With the Middle East peace process in the offing, there is no doubt the future of trade between Sri Lanka and these two markets will increase. Great scope for development of agriculture too, is forecast."

The delegation met over 50 organizations of which 35 were "relevant" enquiries, 15, positive responses and two confirmed orders. A majority of the delegates established new contacts, some of them were able to revive past contacts.

The delegation comprised Alucop Cables Ltd., Executive Director Shamendra Panditha; Chemical Industries (Colombo) plc Group Marketing Manager Anura Siriwardhana; Imperial Tea Exports (Pvt) Ltd., International Operations Manager Prabash Kombalavithana & U. S. Shipping & Cargo Services (Pte) Ltd., Director.Mohamed Azweer and Ceylon Chamber of Commerce Consultant Ms. Puvi Domingopillai.

With the assistance of the Sri Lankan embassies in Jordan & Kuwait and Athulla Edirisinghe, Director/CEO EAM Maliban Textiles Jordan (Pvt) Ltd., the mission members met with members of The Amman Chamber of Commerce, American Chamber of Commerce of Jordan, Kuwait Chamber of Commerce and Industry and the business communities in both countries.

Supermarket banking unit

Commercial Bank of Ceylon opened its 23rd Supermarket Banking Unit at Arpico Supercentre, Negombo recently.

This the Bank's fourth such unit at an Arpico Supercentre and is linked to all other Commercial Bank branches and Supermarket Banking Counters islandwide permitting online real-time banking to any Bank customer. It is also equipped with an ATM linked to Commercial Bank's 324 ATMs, over 1,000 other local ATMs and more than a million ATMs belonging to the Cirrus and Visa networks worldwide.

Training

Institute of Chartered Accountants of Sri Lanka (ICASL) recently conducted a seminar for its students at its auditorium.

A student reading for the Chartered Accountants Programme is required to work in a selected organization out of more than 800 auditing & non auditing firms approved by the Institute.

The seminar saw the participation of more than 200 students and was focused on students who had undergone training of below a year. The objective was to expose students to the knowledge of the industry experts.

Training included "Employers Expectations from Employee," "Importance of Practical Training & Development of Ethics" and "Importance of Soft Skill Development."

Resource persons included designated ICASL Senior Vice President & John Keells Holdings Learning & Development Head Anthony Jayaranjan, PricewaterhouseCoopers Tax Director Ms. Hiranthi Ratnayaka & Prima Group Internal Auditor Darshana De Silva. ICASL Students Training and Development Committee Chairman Lasantha Wickramasinghe, alternate Chairman Ganaka Amarasinghe and Chief Executive Officer Aruna Alwis were also present at this occasion. 

In Brief

LIBOR falls CB unable to get better terms

Despite the London Inter-Bank Offered Rate (LIBOR) coming down by nearly a third since the last time the Central Bank (CB) negotiated a syndicated loan for the government, the CB has however still been unable to finalise a new loan due to higher premiums asked.

"We are negotiating with a couple of parties, but they want higher premiums to compensate for the falling LIBOR, that's the difficulty in finalizing the new loan," CB sources said.

CB early this year negotiated a US$ 171million syndicated loan for the government at three months LIBOR plus 259 basis points (bp) with LIBOR at 3.01% then.However, LIBOR has since fallen to 1.52%.

That loan was of a three year tenure with a yearly "put" option. The new loan that the government is seeking for is for US$ 300 million.

Seasonal sluggishness relieves market

Seasonal sluggishness, with importers having had already covered their letters of credit imports for the season saw the US dollar-rupee parity at Rs. 111.90 at spot trading on Friday, despite no intervention by the Central Bank (CB) to defend the rupee

CB expended a sum of US$ 1,056.88 million in the past three months to defend the rupee, statistics showed.

As a result the market experienced a Rs. 7,849 million excess, with the CB absorbing the excess liquidity on Friday by way of the overnight repo auction (Rs.7,000 million) at 11.72% interest, and the balance Rs. 489 million through their standing repurchase facility at 10.50% interest.

Overnight inter-bank borrowing rates were at 13-14%, with rates expected to take-off after the holiday season.

As a sign that there was no downward tendency on rates, Treasury Bonds (T. Bonds) maturing in August 2010 were trading at the 21% levels in the secondary market, while those of a shorter tenure at the 20% levels.

"There is no let up in rates on the longer tenure T. Bonds," market sources said,whilst adding that there was hardly any trading of T. Bills in the secondary market. (See also connected story found elsewhere on this page)

Tea down 32%

Tea  prices in the Colombo Auctions last month declined by 32% year on year (YoY) to US$ 1.98 a kilo. The YoY decline in October was 18.37% to US$ 2.37.

Tourism down 10%

Tourist arrivals and earnings declined by 10% year on year to 389,550 and US$ 303.9 million respectively in the first 11 months of the year. (Source: Central Bank)

Sohli sells JKH

High net worth individual Sohli Captain is believed to have had sold 500,000 shares of JKH to a foreign fund at Rs. 55 a share on Friday which took turnover to Rs.103.3 million.

Captain is the single largest shareholder of JKH. This foreign fund had earlier sold JKH shares to the company in its share "buy back" scheme at Rs.90 a share.

On Tuesday, Captain sold 1.5 million shares of JKH to this same fund at Rs. 58¬ a share.

"He may be eyeing to buy back these shares cheap," market sources said.

JKH contributed Rs.28 million to Friday's turnover.

In was followed by Ceylinco Insurance with Rs.18 million. A trade comprising 100,000 shares of this company was executed at Rs. 185 a share. Other contributions came from Commercial Bank (Rs. 15 million)-which included 225,000 shares done at Rs. 68 « a share in a foreign to foreign transaction and Rs. 11 million from Distilleries which included 200,000 shares traded at Rs.52« a share, in another foreign to foreign trade.

The benchmark ASPI on Friday marginally gaining by 0.49 points over that of Thursday's closing, while the more sensitive MPI fell by 3.56 points. 

Northern Power

Northern Power recently commissioned its plant in Jaffna and is ready to start supplying power using auto diesel fuel to the Northern Province.

Liquidators

SJMS Associates has been appointed liquidators to Fern Tea Ltd.

Rs. 600 mn., investment

Associated Electrical Corporation plc will invest Rs.600 million in its subsidiary AEC Properties (pvt.) Ltd.

At Galgamuwa

Hatton National Bank recently opened its 176th customer centre in Galgamuwa. This customer centre was opened by Chief Guest Chandula Abeywickrema, HNB's Deputy General Manager-Personal Banking & Network Management.

HNB Galgamuwa Customer Centre offers a range of facilities from savings and current accounts, import/export loans, Singithi (minor savings accounts), Shanthi home loans, financing under the Gami Pubuduwa scheme, Credit Cards, NRFC/RFC accounts and leasing facilities. HNB drives on the cutting-edge of technology with an islandwide ATM network, online banking and tele-banking facilities.

Reduced prices

In an agreement with the Trade Ministry, Fonterra said it will reduce prices on its Anchor, Anlene, Anmum and Ratthi brands following a recent softening in commodity prices. The new retail selling price for Anchor Full Cream Milk 400 gms pack is Rs 260.

7 kg., bronze statue

Dinesh Watawana with the 7 kg., bronze statue award crafted by the Queen's personal jeweller  when "Kumbuk River Eco-Extraordinaire" clinched a travel "Oscar" at the World Travel Awards (WTA) as the world's leading eco-lodge.

He represented Sri Lanka at the WTA finale held at Turks & Caicos Islands, a British territory off Miami  recently.

Bonus cap

SriLankan Airlines employees whose basic salaries are less than Rs. 70,000 will receive one month's salary, subject to a cap of Rs. 35,000 this season.

This includes 100% of the airline's 3,166 graded staff and a significant number of its executives. It does not include those in managerial posts or other higher paid positions.

"While we would like to give a full month's salary to every employee, the company is not yet in a position to do so. We hope to have even better news next year," said chairman Nishanta Wickremasinghe.

The airline has stood on its own feet financially since its management changeover, said a statement.

Remittances to be hit

The current global financial and economic crises have serious implications for migrant workers worldwide, ILO chief Juan Somavia said.

To mark International Migrants Day which fell on Thursday he said: "Past experience makes us aware that migrant workers, especially women workers and those in irregular status are among the hardest hit and most vulnerable during crisis situations.

While the full impact of the crisis on migrant workers is yet to unfold, there are reports of direct layoffs, worsening working conditions including wage cuts, increasing returns and reductions in immigrant intakes. Yet all sectors may not be equally affected and destination countries should assess their labour market needs before resorting to general layoffs of migrant workers. It is important that migrant workers do not become scapegoats for the current financial and economic crisis.

Source countries are already grappling with the challenges of employment creation for their citizens including increasing numbers of return migrants and falling remittances. Availability of decent work opportunities at home would pave the way for migration by choice, not by necessity."

 NDB acquires B'deshi bank

National Development Bank plc (NDB) in a stock market filing made on Wednesday said that they have received regulatory approvals from authorities in Sri Lanka and Bangladesh to take a controlling stake in Capital Market Services Ltd., Bangladesh, a licensed merchant bank.

This investment was reported in the business pages of our sister paper The Morning Leader in its October 1 issue. It was there reported that NDB will take a 75% stake in this bank at an investment which will be under US$ one million.

Top award

Samantha Kumarasinghe, chairman, Nature's Secrets cosmetics Multichemi Ltd., was adjudged Sri Lankan Entrepreneur of the Year 2007 and presented with the Platinum Award at an awards ceremony held at the BMICH with Netherlands's Ambassador in Sri Lanka Ms Leonie M Cuelenaere as Chief Guest.

RN Construction (Pvt.) Ltd., Managing Director Ruwan Edirisinghe won the National Gold Award, Leslie's Agro Products (Pvt) Ltd Managing Director W. Leslie Bernard Perera was declared Young Entrepreneur of the Year, while Sirisara Vilasitha Partner Ms Chandrika Silva won the National Woman Entrepreneur of the Year award.

Bio fuel flight

A "transcontinental" experimental flight to demonstrate viability of renewable fuels was conducted by Orlando-based Green Flight International with 1,776 miles of 2,486 total miles flown powered on 100% bio fuel.

A 50:50 mixture of bio fuel and standard jet fuel was used for the remaining 710 miles to compare performance data and demonstrate the capability of blending bio fuel with existing jet fuel supplies.

The flight operated to Federal Aviation Authority USA (FAA) specifications, said the company.

 FAA has expressed an interest in using the Green Flight bio fuel test programme as a template to assess future generations of aviation fuels. The record-setting flight using an L-29 jet trainer originated in Reno, NV and concluded in Leesburg, FL, with a total flight time of 11 hours, 13 minutes, flown at altitudes ranging from 13,000 to 17,000 feet.

Green Flight CEO Douglas Rodante and Chief Pilot Carol Sugars in October 2007 became the first crew to pilot a jet aircraft powered entirely on biofuel. An around-the-world flight is planned for 2010. (Washington Aviation Summary)

Increased presence

HSBC's trade finance team continued to expand in key markets, increasing the number of trade and supply chain specialists by 10% (200 associates) across the region.

The bank opened 23 new locations in key commercial cities across.

In Indonesia it acquired Ekonomi Bank, one of the country's largest commercial banks. The integration will double HSBC's local network to 190 outlets.  In Malaysia, HSBC is the country's first foreign bank to trade through an Islamic subsidiary.

In Taiwan, HSBC's presence expanded to 50 outlets, including  key commercial cities, positioning the bank to capture increased trade and investment in the territory as ties between China and Taiwan continue to strengthen. In Vietnam, the bank not only strengthened its position through an increased stake in Techcombank, but also opened a new representative office in Can Tho with approval for local incorporation.