Malaysians & Sinhalese

"I think when you stress too much about being Sinhalese, there will be resentment to that," former Malaysian Premier Mahathir Mohamed in LMD scoop.

In an exclusive interview conducted in Kuala Lumpur by leading business magazine LMD, Mahathir Mohamad says that, "I think when you stress too much about being Sinhalese, there will be resentment to that. In Malaysia, we talk about Malaysian; we don't talk about being Malay." 

In LMD's February '09 edition, Mahathir also says that "we shouldn't be slavishly accepting these systems of the West."

"Our banks have not produced imaginary money as much as Western countries have," he asserts, whilst acknowledging that "if the West fails-given that it is our largest market-we will also have to pay the price."

Mahathir says that "we will have to start looking at other markets outside the developed countries. we can look at poorer nations, other Asian countries which are doing better."

Noting that the slowdown is a worldwide phenomenon, he tells LMD that "the world must come together to resolve this crisis."

Mahathir also discusses the rise of Asia as a global superpower, the economic crisis and the need for global cooperation and a collective consensus in the magazine's latest edition.

"There is no doubt that Asia will be playing an increasing role in international affairs-including international economies-and of course, the international financial system. But Asia would be making a mistake if it were to invest in collapsing banks of the West, because they are not as sound as they are made out to be. They're playing around offshore-off-book banking, off-the-record banking and so on. These are unhealthy practices in the long run," he tells LMD's Larry Enas, who travelled to KL for what LMD says is it's 'biggest scoop' since the magazine was launched some 14 years ago.

 Mahathir urges Asians to invest in industry, maybe by buying out Western equivalents. They are collapsing because of their dependence on the Western banking system, he says.

Govt. borrowings cause of rupee shortfall

T Bond secondary market rates down on rumours

Treasury (T) Bond rates in secondary market trading fell by 20 basis points to 18.30% on Friday on rumours that the Central Bank (CB) will cut its overnight penal lending rate to banks by 200 basis points to 15% shortly, market sources said.

"T Bonds of 2010 and 2012 maturities which were trading at the 18.50% levels on Thursday, fell to 18.30% levels on Friday as a result," they said.

However with the market being continuously short on an overnight basis (except for a few days last month) due to government borrowings, they questioned how the CB/government would find the money to fulfil this void?

Is it by printing money? They asked. But with the government's T Bill stock rising upto Rs. 160.7 billion, such an action would only fuel inflationary pressure on the economy, if the rumour is true, they said.

If inflation rises, then interest rates will also rise, they said. As it's Tuesday's T Bill primary auction saw the weighted average yields of T Bills of six and one year maturities rise by 19 and 20 basis points respectively, the sources said.

All the good work of bringing down inflation on a point to point basis to 10.7% last month would then be undone if the government prints money to meet this shortfall, the sources said.

The CB follows a political agenda, they alleged.

Meanwhile, in the foreign exchange (forex) market, there was upward pressure for the US dollar to gain over the rupee, again due to government borrowings in the forex market, they said.

The dollar in two way quotes (buying & selling) was being quoted at Rs.114/114.10 on Friday.

The State owned Bank of Ceylon (BoC), while defending the rupee vis-…-vis the dollar by offering dollars to the market at the Rs. 113.85 levels, was, at the same time buying the greenback from the market at the Rs. 114.05 levels, they said.

Timing of bids call questioned

$ 400 mn. South Port  project a non starter

With the world is in recession and supply outstripping demand, shipping sources question the wisdom of Sri Lanka Ports Authority (SLPA) calling for bids to construct the US$ 400 million Colombo South Port terminal on a build, operate & transfer (bot) basis.

They said that developers of such constructions are generally terminal (port) or ship operators.

 "But ships are idling due to flagging demand, and China and USA, the world's 4th and largest economies respectively are also witnessing weak consumer spend due to the global slowdown," the sources said. As such there is a possibility that the project will be a non-starter, they added.

USA is officially in recession

SLPA called for such bids on Monday, with bids closing in May.

US President Barack Obama has warned that the recession has not hit the bottom as yet, it may well take the world another two to three years to recover from the recession, the sources said.

Before the global meltdown hit the world after the collapse of Lehman Brothers on September 15, 2008, liner operators were investing in bigger and bigger ships because of growing demand in China and India, but with the sudden crash in demand due to the global meltdown, those ships are now idling, they said.

 Sources further said that though Sri Lanka has not yet felt the full brunt of the recession due to existing export orders, however the garment sector in particular will start feeling the pinch from next month with the lessening intensity of new orders, they said.

Shipping sources here said that they are already feeling the heat, with a drop in demand for local produce and products from major importing destinations such as the USA and EU.

 This is the second occasion that the State owned SLPA has called for "request for proposals" (RFPs) for the building the first terminal under the Colombo South Port Expansion programme.

Earlier, when they called for such bids it attracted offers from liner operators such as CMA CGM France and terminal operators such as Hutchison Ports Hong Kong and Port of Singapore Authority (PSA), the operator of the Singapore Port.

The inability of the authorities to decide whether PSA or Hutch Port, the two shortlisted candidates should get the contract then, resulted in the cancellation of the original bids call and the call for fresh bids.

A local agent whose principals had submitted an offer when the SLPA had first called for bids, said that they have had sounded their principals regarding the new RFP call, and were awaiting their feedback.

"They take time to respond to such offers," he said. 

Meanwhile, the development of the Colombo South Breakwater project, a US$ 300 million ADB funded contract is being executed by Hyundai, Korea. A conditionality of the ADB funding is that the building of the first terminal should virtually go hand in hand with the building of the breakwater.

Building the breakwater without a terminal is meaningless, the sources said.

More shipping lines to close

The weekly loss of millions of dollars by carriers remains, and it will be only a matter of time for the next to follow, a note sent to a local shipping agent from one of its principals announcing the closure of its operations, said.

On Thursday this agent received an announcement regarding the closure of Senator Lines, Bremen, a ship operator, by the end of this month.

The note said: "This is not just a termination of a Service Loop (service to a particular destination) or Trade Lane, but a complete discontinuation of business. In Germany alone about 100 employees of Senator will lose their jobs.

According to Senator Lines the discontinuation of business is related to the financial crises, insufficient cargo volumes and ongoing overcapacities, especially on the dominating East/West-Routes.

Senator Lines' major shareholder (80 %) is Hanjin, Korea, also a ship operator.ÿ

After the termination of CSAV'S (the largest carrier in Latin America) Europe / Asia Service and various suspensions of Loops (see recent Grand Alliance suspensions on EU 5/Black Sea Loops) this is another cutback of capacity, yet by far not big enough to turn around the present supply/demand scenario," it said.

LB Finance PBT up 106%

LB Finance in the nine months ended December 31, 2008 saw profit before tax increase by 106% year on year (YoY) to Rs. 419 million.

 The company's net interest income in the period under review was Rs.844 million, while total revenue at Rs. 2.6 billion was a 30% YoY growth. 

Company assets rose from Rs.10.7 billion to Rs.14.4 billion due to expansion of lending activities, of which 96% are earning assets. Lending chiefly comprised lease and hire purchases of which Rs.9.4 billion was secured through vehicle Leasing and Hire Purchase. Real estate stock amounted to Rs.221 million at the end of the period. A notable expansion in its pawning operations, pawning advances stood at Rs.1.9 billion as at Dec.31, 2008.

98% of all earning assets are said to generate regular cash flows.

The Company's gross NPL ratio which stood at 3.86% as at end Dec. 2007 improved to 3.39% as at Dec. 31, 2008, well below the industry ratio. Bad debts provision for the period reduced to Rs.15 million, 85% less than the Rs.104 million provision for the 9 months ended December 31, 2007. The Company's shareholders equity was at Rs.1.2 billion as at December 31, 2008, while the core capital adequacy ratio was at 9.11%. Rs.450 million was successfully raised through the Company's recently oversubscribed debenture issue, increasing its total capital adequacy ratio from 10.79% to 13.26%, well above the required minimum.

Managing Director Sumith Adhihetty said that the success of the concluded nine months could be attributed to a strategic and focused approach as well as, prudent financial principles.

"We are a company that's been around long enough to feel the changing winds of the industry before they even begin and are always ready to turn with it." Foreseeing the economic fluctuations caused by an international financial downturn, the company changed its business strategy.

IT opted to focus on the micro-level operations and pawning services. Adhihetty said that financial figures reaped were therefore a result of always being a step ahead of the ever-changing economy.

The Company also focused on high-growth areas such as its loan base, especially lease financing for 3-wheelers. Special attention to pawning operations saw LB Finance expanding its services further across the island through 35 pawning centres, 18 branches and the head office.

Establishing itself among the top three entities in the country's finance sphere, LB Finance continues to attract more and more investors. The trust acquired during the over 37 years that it has been in the business speaking for itself. Backed by veterans in the industry and a dynamic team of young but experienced professionals, the company has earned a name for seeing it through every economic crisis to hit the country, coming out focused as ever. Veteran businessman Dhammika Perera remains its largest shareholder, owning a 71.33% stake as at Dec. 2008.

RAM Ratings has reaffirmed LB Finance PLC's long and short-term financial institution ratings at BBB- and P3 respectively with a stable outlook for the long-term rating. Leasing, Hire Purchase and Pawning remain the Company's key revenue drivers and the management has leveraged on its expertise in the automotive business by the trading of vehicles.

L B Finance is also engaged in the acceptance of deposits, mortgage loans and other credit facilities, real estate development and related services. The Company offers leasing solutions for a range of vehicles/equipment including private vehicles, commercial vehicles, machinery, three wheelers and motor bikes, agricultural equipment, trucks and trailers. The Company added 5 more branches in 2008, another in January 2009 and plans are afoot to open one more in Polonnaruwa before the end of the financial year.

Shining star in Leisure Sector

"As a three year old brand conceptualized in Sri Lanka, we feel great pride in receiving this award for the second consecutive year in lieu of our indigenous origins," a hotelier said.

 This was said by Rohan Karr, General Manager Cinnamon Grand Colombo, on the occasion of it being judged the Best Five Star City Hotel at this year's Presidential Awards for Travel and Tourism.

A recognized market leader, Cinnamon Grand continues to emphasize its image as the ultimate destination for discerning travellers seeking the pleasures of affordable indulgences.

The award was presented by Premier Ratnasiri Wickremanayake in recognition of the hotel's continued influence in the hospitality sector. Cinnamon Grand is the first property of Cinnamon Hotels & Resorts, the hospitality brand of the John Keells Group which was launched on November 14, 2005. In the span of three years, the brand has undergone significant growth and has become a premier venue in Colombo for business travellers, vacationers and diners alike.

The Hotel, a member of the John Keells Group Leisure sector, saw this sector walk away with six Presidential Awards for Travel and Tourism at the awards ceremony which was held at the BMICH. John Keells Holdings Deputy Chairman and Leisure Group President Ajit Gunewardene said, "We are delighted with the six Presidential Awards we have received.  Cinnamon Grand has once again endorsed its position as the Best Five Star City Hotel and the Destination Management Companies, Walkers Tours and Whittalls Travels have won a total of five awards.

The John Keells Group is committed to the travel and tourism industry in Sri Lanka through good times and bad, and we glad that this commitment to both the country and the exceptional standards we strive to maintain have been recognized. We are grateful to our partners worldwide for having confidence in us and continuing to have faith in the destination depite global uncertainties, and our suppliers and stakeholders without whom this achievement would not be possible. Sri Lanka's largest listed conglomerate, the John Keells Group, is the largest hotelier in the country, dominating the 5-star capacity in Colombo, as well as  seven resort hotels in Sri Lanka and four in the Maldives, under the two brands "Cinnamon" and "Chaaya". This is complemented by the Group's Destination Management Company Walkers Tours in Sri Lanka, Maldives and India. The conglomerate's Destination Management Companies, Walkers Tours and Whittalls Travels, won five awards of the six categories applied for.  Nature Odyssey, the adventure and nature brand of Walkers Tours, won the Presidential Award for the Best Adventure Tourism Operator. Nature Odyssey has been instrumental in initiating innovative packages and experiences for both foreign and local tourists. Their expertise is focused on adventure and nature tourism, allowing the world to experience Sri Lanka's rich biodiversity. They pioneered Whale Watching in Sri Lanka and currently carry out a successful programme with Ceylon Fishery Harbours Corporation.

The Best Charter Airline of the Year was awarded to Condor Airlines which collaborate with their local ground handling partner Walkers Tours in promoting Sri Lanka through extensive campaigns. The German airline owned by Thomas Cook has been operating in Sri Lanka for over 40 years, in spite of turbulent times, signifying its commitment to Sri Lankan tourism. The coveted award for the Best Chauffeur Guide was bestowed on Ananda Yatawara of Walkers Tours.  Yatawara has over 33 years of experience in tourism and has been exclusively with Walkers Tours since 1975 and is  an asset to the company and the tourism industry.

Kuoni Travel was the winner for the second successive year of the Presidential Award for the Destination Loyal Partner-Foreign Tour Operator Category. The award was received by Whittalls Travels, the Destination Management Company of the John Keells Group which has represented Kuoni since 1993 in Sri Lanka. Kuoni has been operating to Sri Lanka since 1967 and is the largest Long Haul Tour Operator featuring the destination continuously for over 40 years. Kuoni has made significant contribution to the community by supporting and funding several CSR projects.

Whittalls Travels recently were runners up in the Kuoni UK 2008 Agent of the year Award amongst over 50 Destination Management Companies Worldwide.

Adding another feather to their cap, Theekshana Wijesinghe of  Whittalls Travels and Walkers Tours was adjudged Best National Guide Lecturer. Wijesinghe started his career in tour guiding in 1978 and has over 30 years experience both locally and internationally, working for Whittal Travels and Walkers Tours. In addition to his sharing his extensive knowledge on Sri Lanka, he has also contributed in exploring new programmes and innovative excursions.

Inbound Sector Leisure Head Vasantha Leelananda said, "We are pleased with our achievements and this is an endorsement of our excellence in innovating new products and services. As a wholly Sri Lankan entity, we are proud of our country, our product and all our stake holders-employees, suppliers and partners.  Our boldness to venture overseas has also resulted in us pioneering our own travel operations in India and the Maldives."

Renews partnership

International Association of Lions Clubs in Sri Lanka recently re-affirmed their partnership with Nations Trust Bank PLC (NTB) as their Official Banker for 2009.  In this capacity the Bank will partner Lions Multiple District 306 that draws its membership from across the country that comprises Lions Districts A1, A2, B1, B2, C1 and C2.

"We are pleased to partner the Lions Movement in Sri Lanka once more in this our second year. The Lions Movement has had an illustrious history in serving the people of Sri Lanka, with projects such as those of providing sight to the needy being particularly outstanding. NTB is happy to be associated as the Official Banker to this forum and function as their Financial Services Partner as they start their projects for their tenure," said NTB Deputy Chief Executive Officer Iftikar Ahamed.

Multiple District 306 Council Chairman Lion Mahesh Pasqual said, "We are happy to work with NTB as they have shown time and again their flexibility in addressing our requirements and have provided us with sound financial advice relating to our finances. We look forward to a mutually rewarding partnership. "

NTB is one of the fastest growing banks in Sri Lanka. Its market positioning of being the benchmark of convenience is supported by a host of financial services products and services that cater to the needs of the individual, corporate or institutional clients. The Bank has 37 branches, 11 leasing centres, 43 ATMs, six Personal Banking Centres as well as Internet Banking. Using the Nations Trust debit card, customers have the ability to access their accounts countrywide and internationally through ATMs of other banks which have the Cirrus/Maestro facility. They are also the sole issuers and acquirer for American Express credit cards in Sri Lanka. The Bank provides customer convenience through the Bank at your Doorstep service as well as 365 day banking with branches being opened for extended hours compared to most other banks in the country.

Meeting market's needs

Launched on the theme "Powering up Professional Progression," CIMA announced their corporate partners for the year 2009 at a ceremony held at the Cinnamon Grand hotel, Colombo recently.

They are Cargills Ceylon PLC, Commercial Bank PLC, Dialog Telecom PLC, GlaxoSmithKline, Hatton National Bank PLC, Hayleys PLC, John Keells Holdings PLC, Microsoft Sri Lanka (Pvt) Ltd, MTV Channel (Pvt) Ltd, Nations Trust Bank PLC, Sampath Bank PLC, Sri Lanka Telecom and Union Assurance PLC.

Chief Guest at the tonighttonight's launch, CIMA's Employer and Strategic Development Director will be Mr Rick Sturge said: "The CIMA global growth strategy is underpinned by strong and effective partnering programmes with employers around the world in order to ensure that CIMA is the qualification of choice and that individuals are encouraged to pursue lifelong learning.

We are focused on the learning and development agenda of companies as they strive to recruit, develop and retain high performing people. CIMA now offers varied and flexible tailored programmes to meet customers' demands.

All Corporate Partners will have branding at all CIMA events, receive invitations to all CIMA training programmes and also have approval to use the CIMA logo in their publicity material as a CIMA Corporate Partner.

South Asia & Middle East Regional Director Bradley Emerson said:  "CIMA is a renowned business qualification worldwide. This endorsement we have today is only a sample of CIMA's presence in Sri Lankan business."

Renoir "masterpiece"

Abans launched the state-of-the-art LG Renoir KC910 artistically inspired mobile phone with an 8 megapixel pack, full touch interface, Dolby Mobile and Wi-Fi.

The Renoir is a feature packed phone with camera capabilities that even surpass those found in standalone digital cameras.

The multitude of features include Schneider-Kreuznach certified optics, Xenon Flash, Auto and Manual Focus, sensitivity up to ISO 1600, Geo-tagging and above all an 8 megapixel camera. Renoir's touch-shot feature increases the accuracy of photos taken where users are able to determine the focus of the photo by touching the screen. Photos can also be edited within the phone itself or taken with its various creative shot modes, the leverages on face detection capabilities, making them instantly available for use.

Renoir is much more than a camera phone. It places everything at your fingertips and provides a multi-sensorial experience through sight, sound and touch. Its intuitive and easily customizable user interface provides the perfect canvas for multimedia, allowing for convenient yet enhanced usage of the phone.

Another first in the handset market is the inclusion of Dolby Mobile in Renoir. This integrated suite of audio processing technologies from Dolby Laboratories brings depth and richness as well as clean, powerful bass to deliver a more immersing and engaging listening experience while playing music.

The video recording capability of Renoir supersedes that of other mobile phones, with the ability to capture super-high quality 120 frames per second slow motion video, accompanied by a noise-free microphone. Equipped with the latest 3.5G HSDPA networks and Wi-Fi, Renoir enables users to upload any audio, video, text or pictures instantly, providing a complete web2.0 experience to users.

To view this amazing phone, visit any Abans Office Automation showroom.

In Kotahena

Ceylinco Development Bank (CDB) recently expanded its islandwide branch network to 30, with the opening of its newest branch at Sri Ramanathan Mawatha, Kotahena.

The fully fledged Kotahena Branch now joins CDB's online connected branch network across the country to serve both current and potential customers of the area with convenience and access to the wide  portfolio of services offered by CDB.

Among them are fee and fund based financial services such as leasing, business loans, project financing, trade financing, bills discounting, guarantees, management consultancy services and bancassurance, together with a range of micro financing schemes.

Speaking on the occasion, CDB Chairman R. Renganathan expressed confidence that the presence of CDB in Kotahena would support the business community and the public in the area with its "innovative" financial solutions and will focus on meeting the multitude of financial needs that have potential.

Elaborating on the structure of regulated financial institutions by Central Bank of Sri Lanka (CBSL), Renganathan commented on the progress made by CDB during the past 13 years and its current financial standing.

"As per the company's unaudited accounts for the year 2008, total assets grew by 26% to Rs. 6.79 bn. while revenue reached Rs. 1.63bn reflecting a 55% growth over 2007.

Net interest income grew by 28% to Rs. 408 mn. CDB has recorded impressive financial results for the year 2008 with continued growth in all key financial indicators while strengthening its capital base", he added. CDB has evolved as a key player within the banking and financial services industry in the country and is currently ranked within the top four largest institutions in the specialized leasing institution category under which the CDB is regulated by CBSL.

Trip to S'pore

Seylan Bank, in the forefront of inculcating the savings habit among the younger generation, organized an innovative three months promotion titled  "Tikiri trip to Singapore".

The promotion was conducted from May 12- to August 12, 2008.

Any child for whom a deposit had been made to his/her new or existing Tikiri Account in multiples of Rs. 500 during the promotion period was entitled to one chance in the draw per every Rs. 500 deposited.

The Bank conducted a successful promotion with a lot of excitement thrown in on the same lines as that of "Tikiri Trip to Hong Kong" conducted the previous year.

Accordingly 25 lucky kids with one parent each toured Disneyland in 2007.  Likewise 25 lucky kids along with one parent each were taken on an exciting trip to Singapore in December 2008. 

Participants also wore colourful branded T-shirts and caps provided by Seylan Tikiri, captured the team spirit of the Seylan Tikiri Singapore Promotion.

Seylan Tikiri Brand Ambassador Ms. Sarala Kariyawasam, child Star of the academy award nominated movie "Water" was a live wire among the participants.

All the children were overwhelmed with joy and amusement at the site of the wonderful locations in Singapore.  Singapore Flyer, Night Saffari, Jurong Bird Park, Sentosa Island's amusements and the Discovery Centre were some of the exciting and thrilling experiences the children had.

On the day before departure, the participants were shopping around and the words of appreciation unreservedly uttered by accompanying parents as well as kids were a satisfying  factor to  Seylan Bank officials.

Seylan Tikiri Brand Manager Ms. Dimmini Senaratne says that another 50 kids along with their families would enjoy a day's outing at "Leisure World", Hanwella.

This full day's programme would also be an exciting one for the family and Seylan Bank would once again fulfil its promises for the development of savings in the country by having innovative promotions for account holders who constitute the younger generation and Sri Lanka's future.

9,000 mentally sick

Over 9,000 psychiatric patients annually take treatment from the Angoda Mental Hospital of whom 67% are from the Western Province.

Recently Deutsche Bank (DB), funded the development of Sri Lanka's first ever in-patient health care unit for the treatment of adolescents affected by mental health issues at this hospital.

Associated at its opening were DB Sri Lanka Chief Country Officer Rohan Rodrigo and National Institute of Mental Health, Angoda, Director Dr Jayan Mendis.

Impact of crisis

The 8th European Regional Meeting of the International Labour Organization (ILO) will take place in Lisbon on February 9-13 amid growing concerns over the impact of the global financial crisis on the world of work in Europe and Central Asia.

The meeting, held every four years brings together governments representatives, workers and employers from 51 European and Central Asian countries. They are ILO member States and this provides a platform for discussing policy responses to important employment and social challenges.

A Prime Ministers' panel on policy responses to the financial and economic crisis will be addressed by Portuguese Premier Jos Socrates, Moldova Premier Ms. Zinaida Greceanii, Luxembourg Premier Jean-Claude Juncker and Czech Republic Deputy Premier Alexandr Vondra.

The panel will also include Portuguese Industrial Association President Jorge Rocha de Matos and Belgian General Trade Union Confederation Secretary-General Ms. Anne Demelenne. ILO Director-General Juan Somavia will chair the discussion.

Effectiveness of Life Insurance

In continuation of its efforts to expand the size of the life insurance market, country's life insurance leader Ceylinco Life announced its second 'Life Insurance Week' which is to be held from February 11-17, 2009. The company's Chief Executive Director R. Renganathan elaborates on this initiative in this interview.

Question (Q): Why did Ceylinco Life decide to conduct a second Life Insurance Week?

Answer (A): The positive response we received for the first ever Life Insurance Week inspired us to conduct this programme for the second consecutive year. The first step to obtaining protection through life insurance is understanding its necessity and importance. Conducting an interactive Life Insurance Week is the most effective method to educate the public on life insurance and to build public confidence in it. As the country's life insurance leader, we are obliged to play the lead role in expanding our market and extending our protection to many more lives.

Q: What is the reason for the penetration of life insurance to be low in Sri Lanka?

A: Our research indicates that one of the main reasons is a lack of knowledge among the public on the importance of life insurance. Some people still associate life insurance with death, whereas our message is that life insurance is for those who live. Dependents and loved ones receive the benefits of life insurance when they are alive. This means that bread winners are assured that their families are protected against an uncertain future. The energetic participation of the leading players in the business to educate people on the rationale for life insurance is an urgent need to drive penetration.

The other reason for life insurance penetration to be low is the pressure on disposable income as a result of inflation. As a solution for this, we have introduced affordable life insurance schemes that benefit people from all walks of life.

Q: What does this year's Life Insurance Week comprise?

A:  This year's Life Insurance Week consists of two phases, activities taking place before Life insurance Week and activities during Life Insurance Week.

The build-up to Life Insurance Week comprises a media campaign featuring real life stories that illustrate the realities that make life insurance a necessary safety net against life's uncertainties.

Prior to the start of  Life Insurance Week our sales personnel will visit schools in their respective areas and brief teachers and parents at specially set up meetings to educate them on the importance of life insurance. Simultaneously, all Ceylinco Life branches will conduct programmes to educate the public on the same topic.

During Life Insurance Week the company will conduct public awareness programmes in 28 towns. These interactive sessions will be supported by brochures, stickers, outdoor banners, posters and pennants. Mobile teams of our sales professionals wearing badges with the words 'Ask me about Life Insurance' will also be seen in those areas. Their task will be to conduct Need Analyses for those interested in life insurance. Every person who obtains life cover during this period will receive a booklet that helps the layman understand life insurance and the need for it. A special Help Desk will also be set up at Ceylinco Life Head office for any queries related to life insurance.

Q: What other initiatives has your company undertaken to improve awareness of the need for life insurance?

A: We have conducted a series of media campaigns themed 'Life, Love, Protection' in previous years with the support of popular cricketing icons like Muttiah Muralitharan and Chaminda Vaas. We also conduct a spectacular promotion called the Ceylinco Life Family Savari, under which we expect this year to take 2,400 people from 600 families for a full-day's outing to Leisure World and another 20 people from five families to Singapore for an all-expenses-paid cruise on a luxury liner. All these efforts are linked to expanding market size.

Q: How would you assess the success of last year's Life Insurance Week?

A: It generated impressive results for Ceylinco Life. We achieved direct interaction with more than 200,000 households in the seven day period. Sale of new policies in February 2008 increased by 40% over what we achieved in February the previous year. This clearly demonstrates the effectiveness of the Life Insurance Week.

Marketing

"Financial Aspects of Selling," a master course arranged for the first time by CIMA Sri Lanka Division will be held on Tuesday 

It will be conducted by Marketing & Management Consultant Prasanna Perera.

30th anniversary

Export Development Minister Prof. G.L. Peiris will be the chief guest at the 30th anniversary celebrations of the Sri Lanka Export Credit Insurance Corporation which will take place at a Colombo hotel on Tuesday.

Economics of exemptions

Two leading professional accountancy bodies have agreed to work together to develop the profession in Sri Lanka.

Institute of Chartered Accountants of Sri Lanka (ICASL) and ACCA (the Association of Chartered Certified Accountants) recently signed a memorandum of understanding to strengthen their relationship and foster co-operation between the two institutions.

ICASL President Nishan Fernando said that one of the key objectives of this partnership was to work towards reciprocal exemption schemes in study courses offered by the two institutions.

 ACCA Middle East and South Asia Strategic Business Unit Head Andrew Steele who signed the MoU on behalf of ACCA said: "ACCA is delighted to be working in partnership with ICASL and we look forward to developing joint initiatives which will help to develop the profession in Sri Lanka and which will be of benefit to the business community and individuals who rely on the work of professional accountants.

As the global body for professional accountants with 122,000 members and 325,000 students in 170 countries we are committed to partnerships with leading national bodies which contribute to the development of our profession locally, regionally and worldwide."

Fernando added, "ACCA has been working closely with the Institute for many years and we are now pleased to formalise our relationship with ACCAto share views and work towardsthe development of the national accountancy profession with emphasis on possible co-operation in respect of professional accountancy training, education, examinations and continuing professional development and joint activities in Sri Lanka."

 'One Aviva, Twice the value'

Responsible for strategic development, growth and operational performance, Aviva Group Chief Executive Andrew Moss is focused on bringing the company together and doubling its earnings with its new vision 'One Aviva, Twice the Value'.

Considered as an industry heavyweight by many, Moss, on his recent visit to Sri Lanka, spoke to Business Today about the Global financial crisis and Government intervention, the importance of keeping his staff happy and the future direction of the insurance giant. Following is an edited version of the same.

Question (Q): You have been Aviva Group Chief Executive since July 2007, how has the past year been and what are the highlights?

Answer (A): It has been an exciting time for the company. We have rearticulated the vision of the company under one Aviva, twice the value. We operate in 27 countries, therefore the aim is to bring these together into one group. "Twice the value" part of that is resetting ourselves new targets in terms of improving group earnings; we aim to at least double our earnings per share by 2012. Actually as part of this process we have brought together our people more closely than they have ever been. I have been talking to the Sri Lanka team about something we call the summits meetings in which the company's top 1,500 people come together. About 22 from Sri Lanka have taken part in this process.

At the same time, last year has been a challenging time in the world's financial market. I think Aviva is strong. We have made sure that we have reduced the risk profile of the company to a certain degree to protect the company's capital position. Some banks have found real problems in the past year, the insurance sector globally has done quite well and Aviva is among the strongest in the sector. As we come towards the end of 2008 I think we are still cautious, we are still managing the company to protect against "downsize" risks, but at the same time we are confident and we believe we have done a good job for our policyholders and shareholders.

 Q: As a person who values getting to know one's staff stationed in various parts of the world, is this visit to Sri Lanka also part of this strategy?

A: I think it's always great to meet my people around the world. As in all businesses the talent that you have within the company is the key determinant whether your company is going to be successful or not. So it is great to visit different parts of the business, meet people and have them tell you what their successes are as well as their challenges. You always get a better feel if you visit and see your staff, where they work and understand their challenges and then decide where you can help to promote success in the company.

Q: How do you view the current global economic crisis impact on business in general and the financial services sector and insurance in particular?

A: What's unusual about this crisis is that it started in the financial services sector. Normally you get recession and banks in particular suffer more towards the end of the process, this time it started in banks with the liquidity crisis in August 2008. One of the big differences between the insurance and banking sectors is that we don't have the same liquidity pressures. Therefore we don't run the same risks. Currently in the West, the sentiment is definitely very subdued.

USA, UK and some western European countries are now in recession. I think the early part of 2009 will be challenging but I expect that we will work our way through that and come out of recession by the latter part of 2009. We have obviously seen things in the past three months that nobody ever expected to see, like Lehman Brothers becoming bankrupt and banks in the UK and other places being owned by the Government. However governments in most countries have taken decisive action. Now there is a bedrock that's underpinning to the financial system.

I applaud  governments for the actions that were taken. I think those were necessary and give us the right framework to move forward and in time out of recession. I think the next challenge is the consumer within USA, UK and Europe as they will be cautious as we go into 2009. I think unemployment will rise in a number of those countries and the consequences of those will need to be managed. But again what is encouraging to see is that Government's have taken decisive action, they have reduced interest rates to low levels and I think that this activity will ensure that things will improve over time.

As far as the insurance sector is concerned with the exception of AIG, which clearly had significant problems, though those problems have not come from its core insurance business, the sector anyway as a whole has done well. Solvency has been maintained at good levels in the UK. As I said we are cautious but confident as we move forward.

Q: We understand that you co-chair an Industry Working Group with the UK Chancellor of Exchequer, could you share with us some insights into how these initiatives have evolved and what impact they will have on the insurance industry in UK and globally?

A:  I think its very early days, we have had two meetings so far. This group is looking at the medium to long-term challenges that the insurance sector faces. Actually the insurance industry in the UK is a strong industry. It's a major provider of invisible earnings to the UK, and the Government is interested in making sure that we maintain the strong competitive position that UK has in global insurance. I'm happy that the Government wants to talk to the industry about that issue. A number of chief executives in the UK including myself are happy in giving our time for this initiative. However it's too early to say what's going to come out of it, but I think its important that the dialogue is taking place.

Q: In addition to the financial turmoil, the world is facing other challenges such as terrorism, climatic changes and an ageing population. In your view how do those impact the insurance industry?

A: Well I think the first thing to say is that you are absolutely right, demographics and the ageing population is a major challenge for the economies of actually nearly all the countries in the world. The insurance industry plays a vital role in that. In many of the countries that we operate, people need to save more money. The different ways in which this can be encouraged is a vital priority in the insurance industry as well as for governments. In some countries like Australia, there is high level of compulsion in the system and people have to save money. That decision was made 20 years ago, and now the savings industry in Australia more importantly the safety net, the provision of prosperity in retirement is at a very good place in that country.

It takes time, life insurance and long term savings are the ultimate long term business, so the decisions that you make now only works through over decades in reality, the insurance industry clearly plays a big part in that.

Coming to climate change, clearly there are impacts on the general insurance industry. Particularly some of the risk profiles of certain events will change over time and that's something a number of insurance companies put a lot of research into. Aviva has been interested in that and certainly as a company for example we have moved to a carbon neutral position and it is something we take seriously.

Terrorism, well of course the events in Mumbai recently have been very tragic, I've just been to India on the way to Sri Lanka and clearly the memory of those terrible events are quite fresh in people's minds and we sympathise with them. In the UK unfortunately we have some experience of terrorism as well and clearly in Sri Lanka as well, considering the current political situation. As far as the insurance industry is concerned it doesn't have too much short-term impact. I think if it clearly becomes a more regular event then the industry in the particular countries have to evolve and provide particular protections. I think the insurance industry, wherever it operates in the world tends to be a versatile and flexible industry which adapts to particular events and provides the right cover. The challenge sometimes of course and this was certainly the case in the UK in the 1970s, there has to be partnership between the insurance industry and the government to come up with the right answers to provide the adequate protection that society needs. However what all of this underlines is that insurance is a vital safety net in the actual social framework of all the countries which we operate and that's why it is an important industry, its there to help people when things go wrong.

Q: Given this highly challenging environment, how is Aviva positioned and what is your global strategy for Aviva?

A: Well, we set out our global strategy in the middle of 2007, with 'One Aviva, twice the value' vision and that was concentrating primarily on making sure that we got the best out of the businesses that we have and realising value from our existing businesses. So, for example we set out with our cost saving strategy and we got a public target of saving 500 million pounds by the end of 2009 (per annum). That's been a great strategy to have when external markets have been as volatile as they have been, because we are able to pull levers and create value within the company than actually relying on external events to help us. This has been a great agenda to have in the last 18 months; we haven't changed them at all as a result of what's going on in the external environment. This is important for all the 57,000 staff members who work for us to know that we have a stable set of targets, that we are focused on achieving and that we are not changing our mind in anyway as a result of the global climate.  

Q: In the context of the global situation does Aviva see any potential growth opportunities such as acquisitions and new markets?

A: We've been cautious this year; we've been conserving capital.   As always it's part of my job to scan the horizon to see if there are any acquisition opportunities. However we go on investing a lot of capital in our existing business. Every time we write new business we are investing new capital and it's important to remember that. Historically Aviva has been an acquisitive company and I think there may come a time again in 2009, I use the cricketing analogy now, in that we have been in the past nine months on the back foot a little bit, and playing quite defensively, but as we go forward there will be opportunities for us to get on to the front foot, perhaps be a little bit more aggressive. As always timing is important when your making these decisions. Up to now in 2008 our judgement has been that it is too early to make those decisions, I think we have been proved right so far, but at some point we will look again and see if there are opportunities that will benefit our shareholders. 

Q: What has been the impact of the global crisis on Asia and its growth plans? Would Aviva's commitment to Asia remain in the context of the changes in growth expectations in India and China?

A: Aviva is committed to Asia. When I became Chief Executive we set up a regional office in Asia Pacific for the first time. We have four regional offices in the world; the Asia Pacific region is headquartered in Singapore. I feel that signalled a new commitment of Aviva to Asia.  In the last 18 months we have gone into three new countries in Asia; Taiwan, Malaysia and South Korea, in each case partnering with the second largest banks in each of those countries. We would like to enter some other markets in Asia as well.

Now that we have a firm base from which to build, I expect organic growth in our businesses in Asia to continue to be strong, I mean Asia is not immune to what's happening in the rest of the world but what's different from 10 years ago is that domestic economies in countries like China and India now create more demand internally which acts as a buffer against problems that may arise more in the export markets in those countries. We have been very successful in some parts of Asia and are now the second largest insurance provider in China. AIG is the first and I hope we will overtake them at some point. We have been very focused in India and China, but we have made investments elsewhere, Sri Lanka is a good example of that. We are committed to our business here and we believe that it can go from strength to strength.

Q: Talent is a global issue all organisations focus on. What is Aviva's talent management philosophy and how does it get translated into businesses across the globe.

A: We invest heavily on our people across the world. We know and believe that our success depends on the people who work for us. I think more than ever in the last 18 months we have brought people together across the company and invested more money than we have historically in developing the leadership within our organization. However I'm always conscious that its not only the 1,500 people that are leading the organization that matter, but the other 55,500 people who are working on a day to day basis, who are interacting with our customers that make a huge difference to our success. It is important that when our customers approach us that they are get the right reaction from our people. That in itself is important and if we want our customers to trust us and stay with us, interact with us and buy more business from us, then we have to treat them well, give them a good service and value for money and be focused on what we are doing.

Q: Eagle Sri Lanka is known for pioneering CSR long before it became a buzzword; likewise Aviva also has an extensive focus on CSR. How do you describe Aviva's CSR strategy?

A: We do take CSR seriously. I don't even like the phrase 'Corporate Social Responsibility' very much, I think genuinely as a company we have for hundreds of years as we are 300 years old, have always taken our activities in the community seriously and I think we do that because we believe that it is the right thing to do. We also think it is important for our staff to be involved in these projects as they are rewarding to our staff. Of course at the same time if we are helping people that makes a difference. Do we believe it has a benefit for our reputation, absolutely we do, but the starting point for this is that it is the right thing to do.

Q: How important is Aviva Sri Lanka to you in your global plans and how do you see your Sri Lankan business evolving?

A: It's of course small compared to rest of Aviva, but our Asian business as a whole accounts for only 7% of our overall sales. This shows the sheer size of our businesses elsewhere but growth prospects in Asia are strong. I expect Asia as a proportion of business to grow, but that will be difficult because there are plenty of people in other parts of Aviva who will be fighting jolly hard to make sure that their businesses grow as well.  I think Sri Lanka specifically has a market. With a population of about 20 million, it's a good deal smaller than some of the countries we operate in Asia, but nevertheless we have a solid business here and we think it is a business that will continue to grow. We will continue to invest capital in Sri Lanka.

Q: There were media reports that NDB is planning to acquire majority control of the Eagle's fund management business. What is the position of this and what is the rationale?

A: I think if you step back and look at our fund management activities worldwide we have more than 300 billion pounds under management, we brought our investment fund management activities under one-name Aviva Investors. We think that fund management is a key part of the insurance industry and it's just as relevant in Sri Lanka as it is elsewhere. As you know we have a productive joint venture and relationship with NDB and I think investment management is the next logical step in developing that.

Q:  Eagle has recorded a drop in profits when compared to the previous year as per Q3 results. Can you comment on this?

A: Yes, That is one of the things I'm interested in finding more about while I'm here. I've been encouraged by our future plans and we will look for an improvement during the next couple of years.

Q: Finally, what are the future plans for Eagle, Sri Lanka?

A: In line with the One Aviva, twice the value vision, my main priority for Eagle is to ensure that its performance is in line with that and contributes to the 'One Aviva, twice the value' strategy. I think it's been terrific in terms of being part of One Aviva and the involvement of Eagle with the rest of the group has been strong. Realising the 'twice the value' objective over the next three years is high on my agenda and also on the agenda of the management here, I have every confidence in their abilities to achieve this goal.

550 pass CIMA

CIMA (The Chartered Institute of Management Accountants), the world's leading and largest professional body of Management Accountants announced that Sri Lanka was only one of two countires worldwide to secure a World Prize winner at the November 2008 examinations.

Dilshani Gunawardena won the CIMA world prize for P7 Financial Accounting and Tax Principles at the Managerial level by obtaining 96 marks proving that dedication and study can produce exemplary results.  This is the second Sri Lankan to win a world prize in 2008, the first being Nilusha Fonseka for P2 Management Accounting Decision Management.

The November 2008 exam results which marks the eighth diet of exams for CIMA's current syllabus has brought some welcome increases in pass rates, at both the Strategic level and TOPCIMA (Test of Professional Competence in Management Accounting). It also saw the emergence of 258 passed finalists, making 2008 a successful year for CIMA with the passing out of 550 graduates.

Overall, global and Sri Lankan pass rates have improved, particularly for two of the three Strategic level papers and TOPCIMA has improved when compared with May 2008. There were some good performances at Managerial level with global pass rates for Paper P4, Organisational Management and Information Systems and P8, Financial Analysis, their highest ever.The significant improvements in pass rates are a testimony of the dedication and competence of CIMA tutors in Sri Lanka.

CIMA has an on-line dedicated area for student support, full of tips and advice for exam success in the official student section of the cimaglobal.com website. The site consists of student guides and post-exam guides which focus on performance in all past papers. These are invaluable tools for exam success, and CIMA recommends that this area of the website is accessed regularly.

Measuring performance

Measuring marketing performance is becoming increasingly critical given the growing pressure for accountability, Chartered Institute of Marketing Sri Lanka Region (CIMSLR) chairman Shiraz Latiff said. He was speaking at a function organized by CIMSLR recently. The main speaker at this event, Dr. Mike Bourne, Director, Centre for Business Performance of Cranfield School of Management, UK said that it is important that organizations identify a few key performance indicators-both financial and non-financial, and monitor them constantly which would ensure that the business is healthy and is heading in the right direction.

 He explained the interrelationship between employee and customer satisfaction which leads to improved financial performance and emphasized on the importance of linking organizational performance perspectives with employee performance perspectives. Bradley Emerson, CIMA Regional Director South Asia and Middle East also spoke.

Economy, corporate results, drivers

It may take two months for high net worth investors and institutions to once again become active in the market even after the government takes complete control over Mullaitivu, market sources said.

They are more concerned about the state of the economy and company performances before they chance their hand on the bourse, they said.

It will however take a while before foreigners enter the fray because they have their own problems due to the recession affecting the economies of their countries, they said.

The market at present is dominated by retailers operating on thin volumes and on margin trading (borrowed money).

If there is good news emanating from the battlefront over the weekend, then the market, fuelled by retailers will take off when trading resumes on Tuesday, the sources said. Tomorrow the bourse is on holiday because of Poya.

They (retailers) expected "spectacular" military successes on February 4, Independence Day, but that was a non event, they said. The bourse recorded a Rs. 91.4 million turnover on Friday.

Foreign T Bond holdings up 0.6%

Foreign holdings in Treasury Bonds (T Bonds) in the week ended Wednesday  increased by 0.6% week on week to Rs. 17,783 million. In the previous week this increase was 22%. (Source: Central Bank)

 Coco's PAT up 18,144%

Coco Lanka PLC's profit after tax (PAT) in the third quarter (3Q) ended December 31, 2008 grew by 18,144% year on year (YoY) to Rs. 35.39 million. Company profits in the nine months ended December 31, 2008 grew by 218% YoY to Rs. 80.20 million.

HNB Assurance PAT up 32%

HNB Assurance in the 4Q ended December 31, 2008 saw PAT increase by 32% (YoY to Rs. 116.22 million. The company in the year ended December 31, 2008 saw net profits grow by 33% YoY to Rs. 164.7 million.

Hayleys Exports losses up 67%

Hayleys Exports plc increased their losses by 67% YoY to Rs. 2.99 million in the 3Q ended December 31, 2008. The company which made a Rs. 0.92 million profit in the nine months ended December 31, 2007; made a Rs.23.65 million loss in the nine months ended December 31, 2008.

Mahaweli makes Rs. 9 mn. loss

Mahaweli Reach Hotel which made a Rs. 1.26 million profit in the 3Q ended December 31, 2007; made a Rs. 8.92 million loss in the 3Q ended December 31, 2008. The hotel which made a Rs. 14.99 million profit in the nine months ended December 31,2007; made a Rs. 22.79 million loss in the in the nine months ended December 31,2008

Regulation

Tertiary Education Ministry is trying to regulate qualification awarding bodies and this will soon protect the individuals and students who would have otherwise spend substantial sums of money on these qualifications, said Sri Lanka Institute of Marketing (SLIM) Executive Director Nimal Wirasekara. 

There are many fake qualifications made available to students by various so called business schools sometimes using famous names of Universities in UK, one way of looking at the quality and the recognition is to go through the vacancy advertisements and see how many organizations request for these qualifications.

If it is a short course providing only the basics, then the credibility of the organization offering this qualification should be looked at.

The best way to find out the credibility of these organizations is by going to the British Council or the relevant embassy.

The upper class usually do not get caught to these bogus educational organizations. Unfortunately it is the lower middle looking to enhance their standard of living who usually get caught to these fake qualifications. When the truth hits them, a sizable slice of their earnings would have been taken by these organizations which might suddenly wind up, said Wirasekara.

Lowest rates

Lanka Bell has slashed its IDD call rates to seven countries enabling subscribers to make overseas calls to India and six other countries for a give away price, said a statement.

The new rate is also valid for Australia, Canada, Italy, Japan, UK and USA, giving Lanka Bell users the lowest price in the market to make IDD calls using the 'Dial 15' service on their Lanka Bell phones or by using VIZA IDD cards.

 "With this new rate Lanka Bell becomes the Sri Lankan telecommunication company that offers the lowest call charges to India," said Lanka Bell Managing Director Prasad Samarasinghe. "This will allow our subscribers and the many thousands who use Lanka Bell Viza cards to enjoy the freedom of making calls and be in touch with their loved ones as much as they like," he said.

Last year the company also introduced a value added service, paying subscribers for incoming IDD calls they receive on their Lanka Bell phones. Accordingly, all subscribers earn 50 cents for every minute of these calls regardless of the duration, country of origin or the number of calls received for a day.

Finalists

 Ten out of 19 entries, including those made by teams and individuals comprising students from various schools have been selected for the finals of the Sri Lanka Science & Engineering Fair-2008 which is being sponsored by Intel Ltd.

Respiratory diseases

Asthma is estimated to afflict around one million in Sri Lanka. Recent studies have shown that one in every three children is afflicted with a respiratory disease at some time.

A forum themed 'Breathe with Confidence' will focus on chronic obstructive pulmonary disease and asthma, two common respiratory diseases in Sri Lanka. It will be held at a Colombo hotel on February 15.

Among the speakers will be Central Chest Clinic Colombo Consultant Chest Physician Dr. Kirthi Gunasekera. It's sponsored by GSK.

Software for blind

 "Nuwana Sinhala Text to Speech" developed by Sri Lanka Institute of Information Technology's (SLIIT's) Software Engineering Services Division (SESD) is a software engineering tool that helps the blind to read a document, to use it to type Sinhala text and for proof reading.

It's available free of charge from the Sri Lanka Council for the Blind (SLCB).

This software was developed by an SLIIT student team headed by Dean/ Research Dr. Koliya Pulasinghe.

Samson Perera, a blind professional conversant with Microsoft Word and Excel assisted the team.

This package was recently handed over to SLCB President Amaradasa Gunawardena by SESD Head Yashas Mallawarachchi. French Embassy's Deputy Mission Head Hugues Capet was the chief guest.

Relief for RFCs

Consequent to the failure of certain unauthorized finance businesses and the effect of certain unfavourable international developments, the Central Bank of Sri Lanka (CBSL) has recently observed a few stresses within some Registered Finance Companies (RFCs) and Specialised Leasing Companies (SLCs).

CBSL in a press release said that in this regard, the Government, on the recommendation of CBSL, is currently developing a suitable policy support package to address potential risks to the financial system that may arise due to any illiquidity in the regulated financial and leasing sectors.  Such a package is now under active consideration and it would be announced shortly.  Such policy support package would ensure that the issues confronting some RFCs and SLCs are addressed effectively so that stresses are relieved.

Merger

Hayleys Exports plc (HEP) in a stock exchange filing made on Tuesday said that they would be fully amalgamated with their subsidiary Eco-Fibres (Pvt.) Ltd. (EFL) on March 9, 2009 or at a later date that will be determined by the Registrar General.

It said that on the basis of this amalgamation, EFL shares will be cancelled without payment and HEP shares shall remain unaltered. The Board is satisfied that HEP will satisfy the solvency test immediately after the amalgamation becomes effective, the statement further said.

Hayleys PAT down 34%

Hayleys PLC in the nine month ended December 31, 2008 saw turnover grow by 14% year on year (YoY) to Rs. 24.8 billion. However, post profit tax during this period dropped 34% YoY to Rs. 647 million.

Valentine's Day

The ultimate Valentine's Day package awaits you at the Cinnamon Grand this month.

Indulge in an amazing room package that includes everything your heart could desire to make this Valentine's Day the most romantic one ever!

This incredible all inclusive offer comprises a choice of set menus at the Grand's flagship restaurants, an after party at Sequel, a premium room and breakfast buffet at a give away price.

Start Valentine's Day off with a bang with a set menu dinner for two at either Tao, The Lagoon, Angsana pool deck or Taprobane. Enjoy the best of alfresco dining, seafood specialties, fusion cuisine or an international spread, guaranteeing a memorable and intimate Valentine's Day dinner.

Wake up to a deliciously refreshing breakfast buffet at Taprobane, rounding off the perfect Valentine's Day experience. Bring all your love to the Cinnamon Grand in celebration of Valentine's Day this month.

Flights to London

Oman Air recently began daily services from Muscat to Heathrow.

North South Lines (Pvt) Ltd, a Hayleys Group member is the General Sales Agent for Oman Air in Sri Lanka. 

The Airline's CEO Peter Hill said that this latest addition is in line with Oman Air's plans to expand the company's network of short and medium haul flights within the Middle East and South Asia. Hill was former CEO of SriLankan.

Stock market announcements

Lankem Ceylon PLC has declared a first and final dividend of Rs. 1.80 a share. Shareholders' meeting: March 18, 2009; excluding dividend date: March 17 and payment date: March 23, 2009.

Creativity

Creative directors in the local advertising industry, namely Russel Miranda (Grant McCann Erickson), Sujoy Roy (Phoenix O&M), Suren De Silva (VideoImage), Vinod Anand (The Wrap Factory) and Trevor Kennedy (Leo Burnett Solutions Inc.) explained to the audience when the award winning Cannes Lions 2008 TV productions were recently screened at a Colombo hotel.

The event was organised by the International Advertising Association Sri Lanka Chapter and Sri Lanka's representative organisation for the Cannes Lions International-the Metal Factor.

Int'l contract

MillenniumIT was recently awarded the contract to implement the technology platform for the Indiabulls Financial Services (IBFSL) commodity exchange.

 The exchange which has now been christened the International Multi-Commodity Exchange (IMX) has six partners promoting India's fourth national commodity bourse and will primarily engage in commodity derivatives trading.

The exchange has as its largest shareholder IBFSL, one of the largest brokerages in India and a part of Indiabulls Group, a diversified listed blue-chip company, and MMTC Ltd., the largest commodity/metal trading importer and exporter in India.

Trading company India Potash Ltd. is among the six partners. Turnover in the commodity market surged 28% in the last year paving the way for new players to enter the fray.

IMX have now started operationalising the multi-commodities exchange and one of the first steps in this process was the appointment of MillenniumIT to set up and implement the technology platform for IMX. 

The MillenniumIT platform will include trading, risk management and market surveillance systems, trader front ends, CCP (Central Counterparty Clearing and Settlement) and collateral and delivery management.

Leo award

Leo Burnett Solutions Inc. (LBSI) won the Leo Intel Award for its "Campaign against the Recruitment of Child Soldiers," a campaign created by the agency for UNICEF.

This is the second time that LBSI won a Leo Intel award. The previous award gained by LBSI in 2007 was also for UNICEF, for  "Combating Child Sex Tourism in Sri Lanka." This award is significant as the company's global leadership presents only 5 Leo Intel awards each year. Submissions by the company's 94 offices across the world are evaluated to select the 5 recipients.

This campaign was crafted by a team "led" by Murtaza A. Tajbhoy, Trevor Kennedy, Charith De Chickera, Marsh Dodanwela, Lalindra Nanayakkara, Ashan Dias Bandaranayeke, Dileep Kulathunga, Nadaraja Somasegaram and Thusith Bandara.

Special fare

Sri Lankans employed in the commercial aviation, travel and hospitality sectors and their immediate families  may fly to Dubai on Emirates for a give away fee and also benefit from special hotel rates applicable for the ongoing Dubai Shopping Festival, effective till end February.

Emirates Sales Manager in Sri Lanka Devika Ellepola said: "Emirates works closely with these industry sectors, and this special fare is a reward for their continued support. Emirates operates 17 weekly services between Colombo and Dubai.

MCF '09

Over 4,000 Trade/Business visitors are expected at the Maldives Construction Fair (MCF) 2009, surpassing the 3,127 visited in 2008.

MCF 2008 consisted of 60 exhibitors from Sri Lanka, Malaysia, India as well as Maldives.

MCF 2009 will be held from April 20-22 at Male.

 Forty plus islands in the Maldives are under development while 10 new regional airports being also part of the greater scheme of things.

A few large scale construction projects on the cards include the Hospital and Nursing Home Facility, regional airports and associated resort hotels, international hospital, marina, medical college, and an arts and cultural centre. Maldives was chosen as the 'Indian Ocean's Leading Destination' at the World Travel Awards 2008.