Where is the money?

"When I see the confusion in economic numbers and the statements that have been coming out, I wonder what the long-term plan is? So I hope that even if they are keeping it confidential, they do have a cohesive and consistent plan on that front. But I worry about where the funds are going to come from," Former Central Bank (CB) Assistant Governor Dr. (Ms.) Anila Dias Bandaranaike told the business TV programme Benchmark last Sunday.

Touching on financial crisis and the decision by the government to circumvent Supreme Court's (SC's) directive on the reduction of fuel prices, Bandaranaike said: "It appears that people seem to have no redress going to economic policymakers on issues they feel lack efficient management. So they have gone to the one option they have- the SC. From a legal point of view, SC is trying to address some of these issues. But in reality, economic management must be left to economic decision makers."

 Commenting on whether this did not amount to contempt of court, Bandaranaike asserted: "What you read is a lot of inconsistency, which is also reflected in what comes out in statements. There's a lot of inconsistency in the numbers and confusion in the arguments that are presented. I think that unless we, as citizens, raise these questions, the government does not get any feedback to come up with more consistent information on the economic front."

Discussing the recent mini-budget proposals, Bandaranaike pointed out that this underscored the fact that the original budget was not taken seriously by many. "In the mini-budget, they have put a Rs. 16 billion stimulus and they say these measures will reduce recurrent expenditure by Rs. three billion. Recurrent expenditure is Rs. 700 billion. And Rs. three billion is not even 1%, these are meaningless statements-but nobody is reacting," she said.

Touching on 'information integrity,' especially on the part of the CB, Bandaranaike said that while numbers and statistical information are most useful to the public, "the public needs to look at the numbers and analyse them. They do not necessarily need to take the words that go with the numbers that come out of organisations, whether government or private. While one could question the interpretation they give, the fact is the hard numbers are there and one can extract information for oneself," she added.

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 DialogTV 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.

Estimated at US$ 500 million 

CB vetoes honouring oil hedge liabilities

Ceylon Petroleum Corporation (CPC) should not honour its hedging obligations estimated at some US$ 500 million is the conclusion that the Central Bank (CB) has arrived at after conducting inquiries on CPC's oil hedging fiasco, it's learnt.

Their findings are based on the fact that the CPC had not followed proper procedures before entering into hedging contracts such as by not first consulting the Attorney General and obtaining his opinion before going ahead in signing up such contracts, knowledgeable sources who did not want to be named said.

According to some estimates, CPC's hedging liabilities are believed to rise upto US$ 500 million, upto the period such contracts end, ie in May 2009 or thereabouts.

Recently the Supreme Court  (SC) on a petition suspended CPC's hedge payment liabilities to several banks and also ordered that petrol prices be reduced to Rs. 100 a litre, based on the current low crude oil prices in the international market.

SC also directed that in the interim that the CB conducts inquiries into the hedging deal and report to it of their findings.

This matter is expected to be taken up by Court on Tuesday.

Coinciding with the suspension of hedge payments, ICICI Bank which was one of the financiers of a US$ 170 million syndicated loan arranged by Standard Chartered Bank (SCB) last year on behalf of the government, backed out from their part of the bargain, amounting to some US$ 25 million.

They had allegedly harboured fears that such a suspension may lead to a precedent in regard to the State and its agents obligations to honour international payment commitments such as the aforesaid US$ 170 million club payment, which, capital amount is now less by US$ 25 million, after ICICI Bank's withdrawal.

However, the other parties to that contract, such as SCB, HSBC and some Middle-Eastern banks had honoured their club loan obligations.

SCB is also one of several banks that have had entered into hedge contracts with the CPC.

ICICI Bank's withdrawal from this loan syndication was reported by our sister paper The Morning Leader  in its December 3, 2008 issue.

Last October the CB invited applications to raise a US$ 300 million loan for the government. But even after the lapse of nearly three months, they are yet to find a lead manager to carry forward this scheme, it's learnt.

With credit getting tighter due to the global recession, experts say that it would be difficult for the CB to raise money on behalf of the government from international capital markets.

Meanwhile the aforementioned US$ 170 million club loan is of a three year tenure and carries an interest rate of LIBOR plus a premium, which works out to some 6%.

It also carries an annual put option, which means that the borrower, in this case the government, or the lender-in this case the consortium led by SCB, may withdraw from the scheme at the time the put option fructifies, in this instance on June 2009.

That is, in the case of the government, it may, on that date decide to withdraw from its liabilities by paying the consortium its dues, while, on the other hand, the consortium itself on that date has the choice to withdraw from the scheme and request the government for upfront payment of its dues rather than wait for the three year period when the loan matures.

Meanwhile, the Cabinet of Ministers did not adhere to the other part of SC's ruling in regard to the CPC imbroglio, ie in regard to the price reduction of petrol on the grounds that it would hurt government revenue. Petrol is currently retailed at Rs. 120 a litre.

As the petrol prices were not reduced, the petitioners against CPC's hedging contract had then intimated to Court that they want to withdraw their case against the oil hedging contract on the grounds that the Court order for a decrease in petrol prices to Rs. 100 a litre had not been adhered to by the Treasury, thereby depriving the public of the benefit from that order.

This motion too is due to be heard by the SC on Tuesday.

CPC entered into oil hedge contracts with banks last year to protect itself against rising oil prices. But things went wrong when oil prices collapsed after peaking at US$ 147 a barrel last July, making it liable to pay the banks the difference, ie from the lower limit of the hedge band, fixed at some US$ 100 a barrel and the average monthly crude oil prices.

CPC has hedged 35% of their oil imports with those banks.

Foreign T. Bond investments slip 34%

Foreign holdings in Treasury Bond (T. Bond) investments fell by 34.4% week on week to Rs. 14,491 million as at Wednesday, Central Bank (CB) data showed.

A  "phenomenon" of the global recession according to some sources such as the CB is that investors of such issues, generally from 1st World countries, who, having got their fingers burnt in their own backyard, then start withdrawing their investments made elsewhere, such as in local T. Bonds, despite higher yields offered compared to virtual zero rates for Treasuries of some developed countries, in order to recoup losses made at home.

"Investors are positive that the government is winning the war, but that positivism has not been translated into investments," money market sources told The Sunday Leader.

There is a cash crisis.

Even governments that may want to help cannot do so because their own economies are in a mess due to the global crisis, they said.

This is a critical situation, the sources said.

Meanwhile, with more buyers than sellers in the foreign exchange market, CB, through the State controlled Bank of Ceylon continued to defend the rupee: US dollar parity at the Rs.113/85 levels at Friday's trading, with People's Bank, the other State controlled bank being among the dollar buyers.

The demand for dollars in the market has caused a strain in rupee liquidity in the same, with the market, on a daily basis being "short of rupees" virtually the whole of last week.

Friday's  rupee shortfall on a net basis was Rs. 6.8 billion.

Overnight (O/N), inter-bank borrowing rates were at the 14-15% levels on Friday.

"Rates are holding because the CB reduced its O/N penal rates by 200 basis points to 17% recently," they said.

Meanwhile, in the secondary market, 2011 T. Bonds were among those actively traded, at the 18-18¬% levels at Friday's trading, sources said. This is a far cry when rates were in the region of 20-21% with sellers not being active after initially investing in those bonds at low 15-17% levels, they said.

Sources however expected a slight upward movement in rates in the week beginning tomorrow.

Recovering Rs. 100 bn., in bad loans

In an attempt to recover half of the Rs. 100 billion bad loans that the banking industry is saddled with, the Sri Lanka Banks' Association (SLBA) and the Central Bank (CB) on Wednesday launched the Credit Counselling Centre (CCC) headquartered at CB's Centre for Banking Studies, Rajagiriya.

The Centre which is headed by banker Ms. Siromi Wickramasinghe has roped in 15 retired bankers who have served in various local banks in the capacities of branch managers and upwards for this purpose.

Those in need of such counselling are in their thousands, Wickram- asinghe told The Sunday Leader. It was said that most of the offenders were banks' retail customers and credit card holders. "They belong to the lower middle class category, those whose monthly salaries are between Rs. 20-25,000;" she said.

They have a tendency to live beyond their means.

Wickramasinghe said that the idea behind the CCC is to help those debtors to restructure their loans.

CCC, being manned by bankers, has a strong relationship with banks to help in this process, said Wickramasinghe.

This would save costly and long drawn out litigation, she said.

However, counsellors have been advised not to seek discounts on the bad loans owed by the debtors to the banks, Wickramasinghe said.

"Windows in Bank of Ceylon branches in Vavuniya and Jaffna, manned by such counsellors are also in operation to assist loan defaulters to restructure their debts," she said.

The Centre will also advise those seeking credit, but who have no access to the same. Wickramasinghe said that similar centres in operation in countries such as India, Malaysia, UK and Canada have had reaped successful results.

"Thousands of households are in debt and end up with more debt than they could pay," Wickramasinghe told reporters on Wednesday.

The counsellors will be the mediators between the debtors and the creditor banks, SLBA Secretary General Upali de Silva said.

Grant for eco-friendly operation

A garment factory has been provided a grant for using factory waste in its operations.

Sanchia (Pvt.) Ltd., was awarded a grant of 50% of the cost of that project by the Promotion of Eco--efficient Productivity (PEP) Project of the Ceylon Chamber of Commerce. The PEP project was started in 2006 with the financial support from Netherlands.

The scheme involved making briquettes from waste polyester material and was manufactured by the Industrial Technology Institute (ITI). ITI's Materials Technology Section (MTS) with the support of the Environment Technology Section and the Marketing and Business Development Department designed and installed a boiler.

It can use waste polyester material from garment factories and process them into briquettes as a fuel source for boilers. Polyester waste from garment factories may cause an environmental problem.

When Sanchia  was approached with this concept and proposal, ITI was given the contract to devise a method to recycle polyester waste generated in their factory into a fuel source, and to use it as a substitute for electrical power presently operating boilers used in the pressing operation.

The fuel briquette was developed after a study of the properties of Polyester waste, including analysis of combustion products and examination of its thermal properties. Polyester waste compacting studies were then carried out and a process devised to formulate a high calorific value briquette which leaves minimum residue on combustion.

The boiler was designed to minimize emissions hazardous to human health. The construction of the ITI designed boiler was sub contracted and installed at the client's site. Several trials were run in the factory premises, and it was demonstrated that the emissions were within the limits stipulated by the draft standard for boiler (steam generating units) emissions in Sri Lanka.

It is gratifying to note that Sanchia has begun to use these polyester briquettes in the specially designed boiler for the pressing and ironing of garments.

The process for the briquette manufacture and the design of the boiler await technology transfer to other garment industries interested in this technology. ITI's  MTS is also ready to undertake contract projects from industry to convert solid waste to fuel and/or other value added applications.

Tips on dairy farming

By Ashwin Hemmathagama 

Agriculture has become a solution for stagnant employment growth and to eradicate poverty in rural Sri Lanka with the global recession spreading towards the South Asian subcontinent.

Sri Lankan economy will be in a bad situation in the days to come and people should prepare for it. Developing agriculture and animal husbandry is the key solution for this where CMC Engineering Export GmbH (CEEG) offers the knowhow and technology, its Chief Executive Officer and General Manager, Michael F. Perera said.

 CEEG is the local branch of a German venture engaged in food processing machines for small and medium scale entrepreneurs (SME) and is keen to develop the local dairy industry, catering to Sri Lanka's liquid milk requirements.

"Sri Lankan Government liberating more parts of the island increases the urgent requirement of introducing small and medium scale development plans. Having foreseen this requirement, we suggest co-operatives, farmer communities, rural banks, and farmers to start food processing which will cater to the needs of the country at local and provincial levels. Dairy farming in Trincomalee District is the ideal example. Looking after existing cows in the area will lead to an increase of the current daily production of 3 litres of milk per animal.

Those can be collected to a centre where necessary cooling is available and processed into a product which is ready for human consumption under hygienic conditions. This project can be done at all levels were a farmer who owns a cow can have a steady income without incurring an additional cost of owning imported special breeds of animals, he said.

Machines marketed by CEEG range from catering to processing milk products, fruits, vegetables, rice flour, meat, and fish under hygienic conditions, meeting international standards at a reasonable investment.

"We don't do business for the sake of selling, but look at a long-term relationship while identifying the requirement of the customer and suggesting the right solution," said Perera.

Explaining this German venture Perera said: "We were registered in 1980 and till recently the food packaging industry was a monopoly. However, with more and more companies opening showrooms, a large variety of solutions are offered.  Sri Lanka being an island nation with a long coastal belt which houses a large community of small scale fishermen opens the potential for canned fish factories. We hear at times where fishermen are forced to get rid of their catch dirt-cheap due to supply excesses. In such situations a fish canning factory could come in handy where these fish can be easily routed to save foreign currency. Even though a substantial investment is required for such operation, rural banks or fishermen's communities could lend, creating employment opportunities as well as uplift living conditions," he added.

Choice of homes

Sri Lanka, 'land like no other' is well known for its beauty and its wonders, making it difficult for anyone to forget one's homeland despite the luxurious and busy lifestyle found in foreign destinations. Strengthening those nostalgic memories, Metropolitan Residencies (Pvt.) Ltd., has launched three key projects; 'Esteem Villas' at Malabe, 'Elite Gardens' at Kottawa, and 'MetroMaonor Residencies'-a luxury apartment project at Braybrooke Street, Colombo, offering either the much waited holiday home in the suburbs or the secondary house in the city.

According to Sales & Marketing Head Samitha Sooriyaarachchi, the Metropolitan Group with a history that spans almost 50 years is a trusted name in Sri Lanka. "Having identified the need for housing in Sri Lanka, Metropolitan Residencies, a Metropolitan Group subsidiary launched those projects, a value for money investment, targeting the expat community, Sri Lankans living abroad and locals.

"Esteem Villas comprises 4, two storied luxury houses, (Now available for sale only two houses) each built on 10-12 perches of land with floor areas ranging from 2,842 sq., ft., to 2,864 sq., ft.

'Elite Gardens' at Kottawa, comprises 9, two storied luxury houses (now available for sale only 4 houses), each built on 8.5-9 perch plots, with floor areas ranging from 2,540 sq., ft., to 3,678 sq ft.Both housing projects include 3 spacious bedrooms with attached toilets and private balcony, living and dining areas, TV lounge with large open air terrace and pantry, maid's room with toilet and lockable garage made with imported fittings.

Timber has been used for roofing which is covered with tiles, doors and windows are made of class one timber and the pantry with imported treated pantry cupboards followed by granite vanity tops. Both projects have 3-phase electricity supplied from the national grid and pipe borne water. To ensure adequate water storage each house is fitted with an overhead tank as well as an underground sump," Sooriyaarachchi said.

MetroManor Residencies apartment project is available for only 12 'discerning' customers.Provided with 24 hour security it consists of 12 individual luxury apartments, Type A and Type B, with floor areas of 1,720 Sq., ft., and 1,755  sq.,ft., respectively. Each apartment is made up of three spacious bedrooms, two additional bathrooms a living and dining room, kitchen and fitted pantry, maid's room with toilet and balconies in the master bedroom and living room and a service balcony. All units will be equipped with split type air conditioners in the living & bedroom, and fans in service areas. All main doors are made of timber. Telephone line with extensions will be made available in all bedrooms and the pantry. The apartments will be provided with 3-phase electricity, transformer room, 10 passenger Mitsubishi lifts and back-up generators.Hot water will be available in the bathrooms and kitchen and there will be centralized gas distribution. Each apartment holder will be provided with one carport. The common facilities will include roof top swimming pool & pool terrace, and driver's rest room, Sooriyaarachchi added. (AH)

Qualifying in Telecoms

Telecoms is becoming the driving force in the global village, potential for further development and value added services has opened up employment opportunities for those who have qualified in telecoms.

British College of Applied Studies (BCAS) catering to the high demand for telecoms qualified professionals have launched the BTEC Higher National Diploma in Telecoms Engineering through Edexcel International UK. The new course may be pursued upto a Bachelors Degree upon completion of BTEC HND in Sri Lanka .

BCAS Business Development Manager Mohamed Isthiquar told The Sunday Leader that the new course also leads to the development of analytical methods of study for engineers,  of data communications and networks, telecoms, digital networks, radio communication engineering, optical fibre communication systems, communication signal processing, transmission and switching systems, satellite communication systems, mobile communication systems, and broadband technology.

"All these will be covered in four semesters at our college at a nominal fee when compared to the investment that a student will have to pay if they are to go to the UK to qualify in the same stream.

BTEC Higher National Diploma in Telecoms Engineering will help the student to obtain industry experience and pursue for higher studies," he said.

Among many other educational opportunities offered at the BCAS targeting G.C.E. O/L and A/L qualifiers include foundation courses for IT, Management, Engineering or Technology.  "BCAS will also be helping the student to meet their English requirement to follow these courses free of charge.

At the conclusion of the course one could opt for further studies in IT, Business Management, Hotel Management, Quantity Surveying or Telecoms.

BCAS located at Dharmarama Road, Wellawatte, was established in 1999. BCAS has collaborated with Edexcel UK to conduct BTEC HND courses in computing, business, information technology, and software engineering, Quantity Surveying, Business Management & Telecoms Engineering. (AH)

New designs to celebrate..

Dankotuwa Porcelain in celebration of its 25th anniversary launched 12 new designs to the local market on Tuesday  through their showrooms located at Kollupitiya and Kirulapone.

Eight new designs were introduced under the brand name of "Dankotuwa" and named as Samurai Platinum, New Deco, Versailles, Pearl Gold, Pearl Platin, Munira, White Lusion Platin and White Lusion Gold, while four new designs were introduced under the brand name of "Laklain" and named as Yala Platin, Rosatea, Hiria and Kikka. These four designs are on ivory porcelain. Some of these designs are exported for the first time while a few are almost 20 year old designs that are being reintroduced.

"We have been constantly introducing new designs and withdrawing old designs, whilst continuing our policy of responding to market demands," said Dankotuwa Porcelain PLC Chairman/Managing Director Sunil G Wijesinha. Since Dankotuwa caters to 25 foreign markets, it has a wide range of designs which suit every taste. The new designs will be initially available at the Colombo and Kirulapone showrooms only. The Colombo Showrooms will continue to have mainly Dankotuwa branded premium designs while Kirulapone will have the "value-for-money" Laklain branded items as well.

Globally, more emphasis is being paid to presentation of haute cuisine. Prominent chefs the world over are using quality porcelain tableware to complement their creations. Introducing different types of tableware designs for each table during an occasion will create an inviting mix of creativity and set an alluring atmosphere for guests. "We at Dankotuwa have all the products that are fully geared to fulfil this need," says Wijesinha.

New vistas for tertiary studies

Students who wish to study in foreign countries have considerably gone up in Sri Lanka.

Global Education Centre (GEC) affiliated to Oxford College of Business has now come forward to help you to make this dream come true.

Philippines is the country which has the highest literacy in English in Asia. Moreover Philippines is the country which has sent the highest number of doctors and nurses to America, England and Australia. The main reason for this was that all academic activities in all Philippine universities are done in English. Education structures in that country are similar to USA & Europe Union.

The main challenge Sri Lankan students who go abroad to study medicine face is that they should first learn the language of that foreign country.

But in the Philippines, people who are less educated up to those highly educated speak in English. Therefore Sri Lankan students who study in Philippines can devote their full time on their core subjects.

As a concessionary measure, GEC Management has been able to reduce course fees after having come to an agreement with Virgen Milagrosa University Foundation. Courses offered include Medicine and Engineering.

Boarding houses with facilities are also available.

Call Oxford College Of Business or visit Oxford College office situated opposite Colombo University for details. The manager of the College is Upul Daranagama.

Golden Jubilee celebrations

Institute of Chartered Accountants of Sri Lanka (ICASL) celebrates 50 years this year and to mark the occasion it will hold a host of activities.

ICASL is the premier national accounting body of Sri Lanka established by an Act of Parliament, and is also the sole Accounting and Auditing Standards setting authority in Sri Lanka.

The institution was inaugurated on December 15th, 1959 and has not looked back since. Education and training are important aspects for the institution and ICASL takes its tutoring obligations seriously. With over 3,500 members & close upon 30,000 registered students, ICASL has over the years played an integral part in the country's financial sector as well as to the public.

"We are honoured to have achieved 50 years of excellence and be the only authority to audit public limited liability companies, an exclusive privilege enjoyed by ICASL members. It has also been gratifying that through professional education and training our membership has achieved competence to render their services to the highest professional standards," said ICASL President Nishan Fernando.

ICASL's main objectives are to promote the theory and practice of accountancy, in particular auditing financial management and taxation, to enrol educate and train members who are keen to improve their skills and knowledge in the profession and finally to preserve accountants' professional independence by ensuring the maintenance of high standards of professional work and conduct of its members.

ICASL is a member of the International Federation of Accountants (IFAC) while also being a member of the Confederation of Asian & Pacific Accountants (CAPA) and a founder member of the South Asian Federation of Accountants (SAFA).

As early as 1997 ICASL began the formulation of corporate procedures covering the financial aspect of corporate governance, best practice on audit committees, stakeholders and other investors.

The international recognition of the ICASL qualification is demonstrated by the geographical dispersion of its membership of whom at present 25% are in gainful employment in over 50 countries.

Remittances from France

Seylan Bank entered into an agreement  with Banque D'Escompte to enable the Sri Lankan diaspora in France to make remittances back home on a regular basis.

Banque D'Escompte, established in 1932 is located in Paris and Strasbourg.  However, the bank has arrangements with the French postal system having a presence in 17,000 locations throughout France.  This would give Sri Lankans living anywhere in France the opportunity to make remittances to their families in Sri Lanka.

Seylan Bank, through its 114 banking centres located island-wide would be in a unique position to satisfy the needs of such remitters.

Remittances may be made to foreign currency accounts or Sri Lanka rupee accounts.

The application procedure to open NRFC Accounts with Seylan Bank would be expedited at a special desk at Banque D'Escompte Head Office.  These documents would be transmitted by the quickest channel to Seylan Bank who would open the NRFC Accounts and inform the accountholder by return mail.

 The agreement between the two banks has initiated a holistic approach towards harnessing the earnings of Sri Lankan expatriates to boost the country's foreign currency resources and hassle-free remittances to their dependants.

In addition payments could be made on identification and also delivered at the doorstep in Colombo and suburbs within 24 hours.

Accounts maintained with other banks could be credited within 48 hours.

Banque D'Escompte would also issue regular remitters a "Money Transfer Card" which would have the details of the remitters and beneficiaries to enable fund transfers any time and at any day of the year through automated teller machines located at their branches.

Both banks have plans to put in place additional facilities as the remittance service picks up in the near future.

Seylan Bank's hotline would enlighten callers who would require clarifications on remittances from France.

Top bank for 7th time

Commercial Bank of Ceylon (Com Bank) was declared Sri Lanka's 'Bank of the Year 2008' by 'The Banker,' the UK-based Magazine that serves the international banking community.

Com Bank has now won this award seven out of nine times that the Magazine has conducted the awards event.

Assessments for the Bank of the Year Awards are based on questionnaires.

answered by banks. This year 740 banks from 150 countries submitted questionnaires to The Banker's editorial team.

The Magazine awarded 160 'Bracken' awards to winners worldwide for 2008.

At this year's Bracken Awards, BNP Paribas won the Global Bank of the Year 2008. Among the regional award winners were ICBC for Asia, BNP Paribas for Western Europe, Raiffeisen International for Central Eastern Europe, Banco Santander for Latin America, National Bank of Kuwait for the Middle East and Standard Bank for Africa.

Among the country award winners ranked alongside Com Bank were the State Bank of India, ICBC (China), HSBC (Hong Kong), HSBC Group (UK), JP Morgan (US), DBS Bank (Singapore), BNP Paribas (France), Commerzbank (Germany), National Bank of Pakistan and Public Bank (Malaysia).

Com Bank Managing Director Amitha Gooneratne said, "This award is a timely reaffirmation that Com Bank remains an icon of best practice and stability in a turbulent environment."

"Public confidence in some financial institutions has been shaken, but Com Bank's soundness has been repeatedly reaffirmed.

 This nomination by an independent international Magazine, whose views carry immense weight, is the latest."

The Bank of the Year award reflects not only the latest results, growth rates and performance data over the period covered by the questionnaires, but also an analysis of all available material including technology, acquisitions and key strategic developments.

This award for the Best Bank in each country is for the best overall performance incorporating performance criteria, qualitative achievements and strategic initiatives.

Business with Dubai

Dubai Chamber of Commerce & Industry Chairman Abdul Rahman Saif Al Ghurair recently highlighted the role of Dubai as a major re-export destination for Sri Lankan goods.

The occasion was when he met Federation of the Chambers of Commerce & Industry of Sri Lanka (FCCISL) President Kosala Wickramanayake in Dubai.

Top five items of Dubai's imports from Sri Lanka in 2007 included Vegetable Products; Textiles and Textile Articles; Plastics, Rubber products; Machinery, Electrical and Electronics Equipment and Wood, Wood Charcoal, Cork, Straw and Basketware.

Top five items of Dubai's exports & re-exports to Sri Lanka in 2007

included Machinery, Electrical & Electronics Equipment; Base Metals &

Products Thereof; Chemical or Allied Industries; Miscellaneous Manufactured Articles, Plastics and Rubber Products.

Presently, there are 183 Sri Lankan partnership companies working and

registered with Dubai Chamber of Commerce, two of which are 100% owned by Sri Lankan businessmen. There is a Sri Lankan Business Council in Dubai and the Ceylon Tea Promotion Office, a Sri Lankan government representative office in Dubai.

Sri Lanka was ranked No. 55 in the list of Dubai's trade partners in 2007. Dubai's non-oil trade with Sri Lanka reached AED 1.4 billion in 2007.

Dubai follows an open door policy of economic growth extended to all nationalities and business people from the world.

The meeting was also attended by Dubai Chamber Director General Hamad Buamim, Nizar Sardast (Adviser)and FCCISL Special Projects Director

Sam Stembo.

Stock market announcements

John Keells Holdings plc has declared a Rs. 1 second interim dividend with dates to be notified.

Arpico Finance Co., plc has declared a rights issue at an issue price of Rs. 25 a share and in the proportion of 10 for 7.  Quantity offered: 2.625million shares, EGM & prov., allotment: February 13, 2009; excluding rights: February 16; dispatch of prov., letter of allotment: Feb.,20, splitting: March 6, renunciation: March 13 and trading starts on: Feb., 27, 2009. 

Another one bites the dust

Click On, a Rs. 300 million investment of business magnate Dhammika Perera that manufactures switches and sockets, has ceased operations from this year.

One of several casualties of the downturn in business activities, the company had accumulated losses of over Rs. 100 million, market sources said. It was set-up in 2006.

Tamils, a majority

Majority of students studying for their computer degree programmes at the Informatics Institute of Technology (IIT) are Tamils and a number of them are from Jaffna, its Associate Professor Alfred Perera told The Sunday Leader.

He said that at present IIT has 500 students, with computer related degree programme offered by Keele University and Manchester University, UK being conducted there.

Protectionism to hit IT industry

As U.S. companies start cutting down on staff and start to outsource their non-core operations to mitigate the ill effects of the global recession, the way forward for the local IT industry is BPO business, but job protectionism in the U.S.A. may dim such prospects, a software exporter warned.

Ravi Dharmawardana (36) who runs a software operation in Colombo called Simula Corp., catering to the U.S. market, said that his business has been hit due to the downsizing of operations of his U.S. customers.

He said that President Barak Obama's stimulus package aims at creating four million jobs in the U.S.A.

"But we are able to stay afloat because our overhead costs are marginal, with salaries being the biggest cost liability," said Dharmawardana.

Dharmawardena has a staff of 30 software engineers with their monthly salaries ranging from Rs. 25-100,000. They are all IT graduates, he said.

His business includes providing software solutions to U.S. audit firms, the health sector and BPO industries.

"Staff turnover which was in the region of 5% prior to the business downturn which began last June, has now come down to zero," said Dharmawardena.

CB's T.Bill stock up 7.5%

Central Bank's (CB's) Treasury Bill (T. Bill) holdings in the week ended Thursday  increased by 7.5% (Rs. 10,282 million) week on week to Rs. 147,538 million.

CB's T. Bill holdings reflect the amount of new money printed by the Bank and extended as credit to the Government Treasury. (Source: Central Bank)

To CIM Board

Chartered Institute of Marketing Sri Lanka region (CIM SLR) immediate past president and former South Asia Regional director Suren Rajanathan Was recently elected to the CIM International Broad of Trustees (IBT), the supreme governing body of CIM, UK.

He is SLR's second elected member to the IBT, the first having been Dr. Uditha Liyanage.

Rajanathan is the General Manager of 3M Sri Lanka. 

CIM SLR is the largest CIM Region outside UK with nearly 1,200 professional members and 3,000 studying members.

Philanthropy

Homagama Base Hospital was built by philanthropist B.A. Semaneris Appuhamy on five acres of his own land in 1946.

Over 800 patients visit the hospital daily for treatment.

In addition Bamuni Arachchi Foundation (BAF) managed by the late Appuhumy's family members and spearheaded by his youngest son B.A. Mahipala who is also the BAF Chairman have decided to build a three storeyed building occupying an area of 28,000 square feet to house the OPD and specialized clinics with two bed lifts of the hospital.

Workshop

Materials Technology Section of ITI, the national research arm of Sri Lanka will hold a workshop on Materials based Industries and Instrumentation at its premises from January 29-30.

Target audience are A / L qualified science personnel, undergraduates, graduates & management trainees in the field of Materials Technology.

Conflict of Interest

Banker Rienzie T. Wijetilleke, accountants Chandra Jayaratne and Nishan Fernando and corporate lawyer Dr Harsha Cabral will be the facilitators at a workshop that will be held at the Taj Samudra Hotel on January 29.

It's organised by the Institute of Chartered Corporate Secretaries.The topic of the workshop is Conflicts of Interest and Related Party Transactions.

Promotion

P. Thawaruban (13) from Colombo won a mountain bike at the Anchor Newdale yoghurt promotion organized by Fonterra Brands Lanka recently.

Associated at this event were Managing Director Achyut Reddy, Marketing Manager Roshan De Silva, Marketing Director Fernando Bueno and Sales Manager Roshan Senevirathna.

25% growth

Bharti Airtel Ltd., in the 3rd quarter (3Q) ended December 31, 2008 saw revenue grow by 38% year on year  (YoY) to Rs. 9,633 crore while EBITDA grew by 33% YoY Rs. 3,945 crore.

Net income for the Q ended December 31, 2008 was Rs. 2,159 crore, a 25% YoY growth.

Bharti had 8.83 crore subscribers, as on December 31, 2008, a 54% YoY increase.

Expansion

DFCC Vardhana Bank (DVB), recently opened branches in Horana and Galle, bringing the total number of branches in operation to 43. It is expected to open branches in Nuwara Eliya and Kalawana this month.

Horana Branch Manager Samitha Batawala, Managing Director/ CEO L.G. Perera and Chief Operating Officer Lakshman Silva were also associated at these events.

Sponsors U.S. event

Brandix was a sponsor of 'America's Most Beautiful Bike Ride,' a campaign to raise funds to fight blood cancer in the USA that took place in Lake Tahoe recently.

"For an emerging global player like Brandix, the world is the community, especially with globalisation dismantling national boundaries," said Brandix Director A.J. Johnpillai.

Further, Brandix employees recently donated 1,721 pints of blood to the National Blood Transfusion Service, Sri Lanka recently.

After the war..

Gains made by the bourse in the past few weeks are driven by the euphoria that the government is winning the war against the LTTE, but those gains are made on borrowed money (margin trading), with no new money coming into the stock market, knowledgeable sources told The Sunday Leader.

It is driven by retailers who have no holding power, with the big players still waiting on the sidelines, they said. "They are watching." Overall sentiment however is positive, with the market expecting something good to come out from the President's February 4 Independence Day message, the sources said.

Investors expect the war to be over soon.

1st visit

GERD MEARSK, the largest container vessel of A P Moller Maersk ever to visit Sri Lanka will arrive at the South Asia Gateway Terminal Colombo harbour on February 5.

1st listing

Capital Reach Leasing Ltd., became the 1st listed company in the Colombo Stock Exchange (CSE) for the year, when it obtained a listing on Thursday.

The company listed a total of 20 million ordinary shares on the CSE through an initial public offering, with the shares being traded within a price range of Rs. 18-36 during the 1st three hours of trading on Thursday, the CSE said. The share on Friday closed at Rs. 21, a 27% drop over its previous closing price.

ASPI tops

The ASPI, with a 14.1% growth in U.S. dollar terms in the year ended Thursday has been placed on top over 89 such indices tracked by Bloomberg.

It was followed by Shanghai Composite Index (8.9% growth) and Chile Stock Market Select Index (6.4% growth) respectively.

CSE said that the MPI during this period recorded a 16.6% growth,

"Lean & Mean"

Project managers are on demand in a recessionary environment because it helps companies to be "lean and mean," a promoter said.

Ravi Dharmawardana, Consultant Programme Director Keele University, operating through the Informatics Institute of Technology, told reporters on Wednesday that they got a "good" response for the diploma course that they would be launching shortly in association with Dr. (Ms.) Madhu Fernando's Innova Strategies.

He said that in addition a Masters degree in Project Management offered by Keele will be launched in September. There is however no bachelor's degree in project management, said Dharmawardana

Look  East

Sri Lanka-Australia-New Zealand Business Council will host a  luncheon Meeting with Coordinating the Peace Process Secretariat's Economic Affairs Director Rohantha Athukorala on the topic "Doing Business during Economic Turmoil and Strategies in the Eastern Province-2009" at Cinnamon Grand tomorrow.

Risk Management

Trade Finance Association of Bankers President will deliver a lecture on "Risk management" at the Ceylon Chamber of Commerce on January 30.

The seminar is organized by the Academy for International Trade & Transport (AITT) and The Sri Lanka Shippers' Council (SLSC).

Topics covered will include Overview of the current Global economic environment for traders; Importance of understanding the risks, Avoiding risk, what to look out for; Accepting orders and new buyers, what are the risks in payments and Clarity in documentation.

Tanky retires

Hayleys plc on Thursday informed the Colombo Stock Exchange that its chairman N.G. (Tanky) Wickremeratne will retire on June 30 and will be succeeded by Deputy Chairman A. Mohan Pandithage.

WAYs decline

Wednesday's Treasury Bill (T. Bill) auction for the re-issue of Rs. 5,000 million worth of maturing T. Bills saw the weighted average yields (WAYs) of T. Bills of 91, 182 and 364 day tenures decline by 61, 33 and 24 basis points to 16.18%, 16.89% and 18% respectively, week on week.

CB allowed the market to subscribe to Rs. 4,773 million worth of maturing T. Bills at this auction, while rejecting offers made for the balance.

Remittances: $ 2.7 bn.,

Gross private remittances in the first 11months of last year increased by 17.4% year on year to US$ 2,682.8 million. (Source: Central Bank)

IPG facilities

Seylan Bank plc recently signed up with Lyceum international school as their latest merchant to the Internet Payment Gateway (IPG).

Lyceum which is based in Nugegoda has branch schools in Gampaha, Kandana, Panadura, Ratnapura and Wattala.

This tie-up with Seylan will enable parents to pay their child's monthly/annual/admission fees to Lyceum online using their VISA credit card or by debiting their Seylan Bank account. This means that parents need not visit the school in person, but can now settle their child's education fees from the convenience of their own homes.

During the last few years Seylan Bank has offered IPG solutions to a number of clients based locally and overseas. This service provides merchants the facility to engage in ecommerce by linking their site to Seylan Bank accounts and VISA network for payments.

Seylan Bank Payment Gateway has been the preferred choice by many merchants due to its easy usability and cost effectiveness. This service helps merchants by reducing many overhead costs while also helping them maintain a comprehensive data base of customers which can be used for a variety of loyalty schemes. 

Business council

Ceylon Chamber of Commerce (CCC) will launch the Sri Lanka-Africa and Middle-East Business Council (SAMBC) at its premises on Thursday.