Commenting on the ramifications of alleged nepotism and politicisation in our Foreign Service, respected diplomat Jayantha Dhanapala told Benchmark last Sunday: "You are right in identifying nepotism and politicisation as a form of corruption." He added that "when your diplomatic colleagues know that you are in that position", because you are a relative of the political hierarchy or a particular party in a multi-party democracy, "then you are no longer regarded as a credible articulator of Sri Lankan policy".

Asked about the appointment of unqualified persons to high-ranking posts despite the availability of career officers, he asserted: "It is a travesty. It is also a unique exception in the international community."

As for the Foreign Ministry’s spending spree, Dhanapala said that outside the approved expenditure, senior politicians are "engaging inexpensive junkets abroad-this is unnecessary when we have diplomatic representation in these countries."

Meanwhile Hatton National Bank Chairman Rienzie T. Wijetilleke told this business TV programme last Sunday: "Central Bank (CB) authorities are playing to the tune of the politicians. That is the biggest problem the country has faced over the last two to three years,"

IMF conditions

Central Bank (CB) Governor Ajith Nivard Cabraal was non committal when reporters on Monday asked him as to whether the talks with the IMF centred round the exchange rate, revenue enhancement and pruning down of government expenditure.

He said that talks with the IMF were on a US$ 1.9 billion standby arrangement.

The country’s foreign exchange (forex) reserves have shrunk by 50% to US$ 1.8 billion by end December 2008, after being at an all time high of US$ 3.6 billion as at end July 2008, which he attributed to the global economic meltdown.

CB’s chief economist Dr. Nandalal Weerasinghe said that these included US$ 700 million to settle an outstanding petroleum bill of US$ one billion, which has since come down to US$ 300 million and another US$ 500 million spent for government debt servicing in the 4th quarter of last year.

He also said that foreign investments in government Treasury Bills and Bonds outstanding which were US$ 527 million in September 2008, had since come down to US$ 19 million (Rs. 2.2 billion) due to the flight of forex on account of the global economic meltdown.

Weerasinghe said that the exchange rate has depreciated by 7% since September 2008.

Cabraal said that measures adopted by the CB to boost reserves is to try to enter into swap arrangements with some central banks, marketing government securities to the diaspora, offering a 20% bonus interest on interest paid on NRFC/RFC accounts and a two year tax exemption for offshore services such as ICT.

"SMEs are the lifeblood of economies, especially in the Asian region. If there is development in the SME sector, this will create growth. When peace dawns, we feel that the opening of the A9 Highway will offer a lot of potential for agriculture," People’s Leasing Company CEO D. P. Kumarage told the widely-watched business TV programme Benchmark recently.

Commenting on the reduction of the reserve requirement by the Central Bank and drop in interest and Treasury-bond rates, he noted that there would be more opportunities for large leasing companies, but smaller leasing companies would find it difficult to survive, he pointed out.

Discussing whether the war would end any time soon with the show’s Special Correspondent Ms. Savithri Rodrigo, he noted: "We are very optimistic; we don’t say that there will be complete peace. After all, the LTTE is one of the most ruthless guerrilla organisations in the world. So there maybe attacks, but I don’t think those attacks will really impact the economy, unlike in the past. We feel that there will be some economic stability, which might trigger new opportunities for corporates."

Affirming that the downgrading of Sri Lanka’s credit rating by Fitch International had affected international insurance and reinsurance, he said that our ability to raise foreign funds would be impacted as a result of this.

Touching on how badly the business downturn has affected leasing in particular and the financial-services sector in general, Kumarage asserted that as far as the macro picture is concerned, interest rates continue to be high.

"Interest rates on gilt-edge securities are also high and this has created an inflationary trend. The global situation has also affected Sri Lanka. Invariably, leasing companies depend on banks for borrowing. The ability of a leasing company to lend depends on the ability to raise funds. When that was stopped, leasing companies had a difficult time," he added.

Noting that there could be a drop in leasing rates towards the end of the year, Kumarage said: "As it is, inflation is coming down, world oil prices are coming down and other prices are reducing. So, interest rates should come down too, although it is not necessarily happening right now. There has to be an impact. As long as leasing companies are achieving their margins, they should be able to pass on that benefit to the customer."

Prawn culture

A new prawn hatchery for producing Macrobrachium rosenbergii post larvae has been built by FAO with financial support from the Italian government. in Kahandamodara, Hambantota. National Aquaculture Development Authority (NAQDA), the state authority promoting aquaculture activities in Sri Lanka has been operating the country’s only fresh water prawn hatchery in Chilaw since 2003, until the new hatchery came in to operation in May 2008.

The hatchery has capacity to produce up to 20 million post larvae annually at peak operation. It has already completed two cycles of production since its operations started in May 2008 and is currently in its third production cycle. So far some five million post larvae (in two cycles) have been produced. Macrobrachium rosenbergii is considered to be the most viable species for commercial production in Sri Lanka and the operations of the hatchery will make a contribution towards supplying quality post larvae to freshwater prawn farmers in the country.

The post larvae produced by the newly operationalized hatchery is supplied to farmer cooperative societies in Hambantota, Moneragala, Ratnapura, Kurunegala, Ampara and Puttalam districts, says Hatchery Manager Sirikumara. The freshwater prawn hatchery includes 12 culture tanks.

To stimulate the development of the prawn culture industry, the government has decided to give the post larvae produced by this hatchery to the farmers free of charge through the cooperative societies for first two years of hatchery operation. The demand is growing and the future looks promising for prawn production and for prawn farmers in the country. According to NAQDA’s extension officers, some 50,000 families are expected to benefit from the operation of this hatchery over the next several years.

Freshwater prawns, which are typically found in coastal estuaries around Sri Lanka, will grow to six inches in length and are highly in demand for local consumption. Excessive harvesting has significantly reduced the wild stocks and to meet local demand, NAQDA recommends the culture of prawns in tanks and mud ponds.

They also say that the successful culture of freshwater prawns can open up an export market which can improve the livelihoods of many prawn producers. The limiting factor is the availability of young prawn larvae which can be produced by adults spawning in a controlled environment and the eggs are hatched and the larvae raised in tanks until they are of about 1 centimetre in length (called a prawn post larvae) and are then released into tanks and mud ponds.

Credit growth declines to 6.4%

The rate of growth in credit to the private sector by commercial banks has declined sharply to 6.4% in January 2009 from 7.9% at end 2008, the Central Bank (CB) in a statement said.

CB notes with concern that commercial banks have not yet responded sufficiently to the easing of the monetary policy stance of the CB, it said.

Accordingly, the CB has requested commercial banks to enhance lending activities immediately so that the credit flow to the private sector is ensured and economic activities in the country are supported, thereby arresting any adverse consequences on the economy. In view of the sharp decline in inflation and inflation expectations, CB has begun relaxing its monetary policy stance and has taken several measures to enhance liquidity in the market, CB said.

The penal interest rate imposed on reverse repurchase transactions with CB was reduced gradually from its initial rate of 19% to 14.75%. In addition, CB’s Repurchase and Reverse Repurchase rates have also been reduced by 25 basis points (bps) each to 10.25% and 11.75% respectively and the Statutory Reserve Ratio (SRR) applicable to commercial banks’ rupee deposit liabilities has been reduced by a total of 300 bps to 7% by January 2009 in order to inject fresh liquidity to the market. Further, liquidity shortfalls which commercial banks face at any time are being addressed by releasing liquidity through open market operations conducted by CB on daily, term and permanent basis. The "careful" relaxation of the Bank’s monetary policy stance through the above policy measures has resulted in the downward revision in call market, Treasury bill and bond rates. Average call market rate currently is around 12% compared to 17-19% that prevailed prior to the relaxation of monetary policy and Treasury bills and bonds yield rates have declined in a range of 170-240 bps since end 2008.

The above measures are intended to have a significant impact on all interest rates in the country so that growth in private sector credit is maintained at a desirable rate which is compatible with the medium term growth and inflation path.

Supermarket banking

Sampath Bank plc and Cargills (Ceylon) Plc recently sealed a memorandum of understanding aimed at synergizing the competitive advantages of both corporates towards providing greater convenience and better value for its customers. Sampath Bank Executive Director/CEO Harris Premaratne and Cargills MD/ CEO Ranjit Page signed the MOU in this regard.

Sampath Bank will make available a host of banking products and services at Cargills Food City outlets across the country coinciding with Avurudhu celebrations now at hand and Ganu Denu associated therewith. Foreign remittances too could be collected from such outlets, whilst also allowing Sampath Bank customers cash withdrawal facilities.

Premaratne said that they were also looking at several new initiatives that would add more value to customers, from launching a co-branded debit card to value additions for shoppers and even financing the supplier network through tailor-made micro financing.

Ceylon Tea, way forward

"I don’t think there is a tea industry anywhere else that works as hard as our local trade. And I am extremely proud to be part of it because we are renowned as one of the most efficient suppliers for orthodox tea in the world," Mahen Dayananda who is in the tea trade told Benchmark recently.

Commenting on the push for value-added tea, Dayananda, the immediate past chairman of the Ceylon Chamber of Commerce said: "I think that is the way to go; there is no question. We cannot remain a basic commodity forever. We have to keep adding value and go up the scale. It is unfortunate that the international financial crisis hit us towards the end of last year and we have been affected to some extent. But we should not change course. We must continue to add more value to our product and hopefully go further up the scale of value addition in years to come."

Discussing whether this traditional foreign-exchange earner will continue to perform in line with expectations, he told the widely-watched business TV programme’s Special Correspondent Ms. Savithri Rodrigo that it would definitely continue to perform, although it is too early to say whether it would be completely in line with expectations.

"Don’t forget that it was in 2007 that for the first time we surpassed the US$ 1 billion mark in terms of export earnings for tea. We crossed the mark in 2007 and in 2008, despite the downturn in the last few months, I think we will end up with slightly in excess of US$ 1.2 billion. This year, based on the first two months, this is very unlikely. It is early days yet-let’s see how the market settles down.

But US$ 1 billion was indeed an achievement of a lifetime," he added.

Noting that tea prices are extremely strong in the short term, he added that until crop levels get back to normal, there will be a very strong market in Colombo.

"Our strength is our quality and that is something we must play to. We are not a mass producer of average, nondescript teas.

We are renowned as a producer of quality tea and we must go on that particular path, where we focus more and more on quality and standards," he asserted.

"We have to focus on the fact that Ceylon Tea, or Pure Ceylon Tea, is in great demand, given normal marketing conditions. In the fields of orthodox tea, I would not hesitate to say that we are the market leader.

And if you look at international markets, more and more emphasis is being placed on Pure Ceylon Tea. Not only for the quality of product, but also because our tea trade is absolutely focused on servicing those markets," Dayananda added.

Carsons in Rs. 731 mn. deals

Carsons Management Services (Pvt.) Ltd., informed the Colombo Stock Exchange that 2,129,349 shares of Good Hope PLC which amounts to 30.99% of its voting rights were bought by Goodhope Asia Holdings Ltd., a fully owned Carson Cumberbatch PLC subsidiary and incorporated in Singapore, from Rubber Investment Trust Ltd. (seller), another Carsons subsidiary.

With the above transaction, the total amount of shares held by Goodhope Asia in the company is 5,996,018 (87.26%).

Additionally, 1,662,722 shares (23.82%) in Indo-Malay PLC were also bought by Goodhope Asia, also from Rubber Investment Trust. As a result, Goodhope Asia’s holding in Indo-Malay has increased to 76.78% (5,373,320).

Further Selinsing, another Carson Cumberbatch company, saw 1,976,400 of its shares (28.48%) bought by Goodhope Asia, with the seller again being Rubber Investment. With this, Goodhope Asia has increased its holding in Selinsing to 6,008,137 (86.57%).

Rubber Investment is a Ceylon Guardian subsidiary, which in turn is a Carsons subsidiary.

The sale of these long term holdings in Malaysian oil palm companies are valued at Rs. 731 million.

All these companies are controlled by the Selvanathan brothers, Mano and Hari.

"The divestment of oil palm companies coupled with the recent exits from Carsons associate company Union Assurance as well as stakes of Ceylon Cold Stores and John Keells PLC from their long term portfolio would see the Guardian Group realize profits estimated in excess of Rs. 1.5 bn. this financial year, the company said.

The trades would also contribute to enhancing Guardian’s liquidity position to almost Rs. 2 bn. in cash surpluses, and thereby give the investment group flexibility in evaluating the options available to it to either re-invest in tradeable stocks or enhance direct returns to shareholders.

Small is Beautiful

Sinhaputhra Finance Ltd. Managing Director Ravana Wijeyeratne, DGM Operations Saliya De Alwis and Finance & Operations Consultant Nandana

Abeykoon at a recent press briefing to commemorate 30 years of service revisited the founding principles of the company.

Sinhaputhra’s core principal as envisaged by its founder, Barrister and attorney at law Tissa Wijeyeratne is rooted on the principals of E.F. Schumarcher.

Schumacher was an economist who worked with John Maynard Keynes and John Kenneth Galbraith. He opposed neo-classical economics by declaring that single-minded concentration on output and technology was dehumanizing.

He held that one’s workplace should be dignified and meaningful first, efficient second and that nature (and the world’s natural resources) is priceless.

Schumacher’s philosophy is one of "enoughness," or limitation, appreciating both human needs, limitations and appropriate use of technology. It grew out of his study of village-based economics, which he later termed "Buddhist economics," which is the subject of his famous book’s fourth chapter.

Today Sinhaputhra in its 30th year of service in the finance industry, echoes loudly these core principals.

Sinhaputhra has grown cautiously and was always skeptical about over expansion and adding up overhead and high costs of branches, but expanded through a network of agents that are simply variable in costs. Constant studies revealed that many companies do not have profitable ventures in most branches and burdens the few profitable centres unduly. Subsidiaries and associates feed off the parent company at most times whilst super profits from such are rare, hence a clear strategy not to diversify from core activities was within the principal "Small is Beautiful".

The company also witnessed over three decades, many other financial conglomerates transferring money at will and yet "wisely" avoiding breaking Central Bank’s direction by letter of its law, yet not by the spirit of the law.

The invariable existence of the same Chairman and key directors in a multitude of these companies forces a relaxation of due diligence, and at the crux of most failures have been such practices.

Therefore the Company, although losing public mileage of not having various diversified entities, feels that such conflict of interest arising situations is best avoided.

In these trying times in the industry, the company is blessed with a portfolio which is nearly 100% in instalment credit. Although the companies middle stages were somewhat propelled through real estate, at present the company has a negligibly small portfolio after it divested from such investments nearly five years ago.

A board of directors predominantly comprising lawyers even to this stage, has moulded an extremely risk aversed attitude towards lending and even at the cost of losing certain clients, the company began insisting on property collateral even for vehicle leasing and hire purchase.

The relatively modest deposit base of Rs. 2.1 billion and without the want to garner more funds via securitizing the investment portfolios

to get more capital, the company can get by with a modest target of new investments each month to meet its obligations to it depositors and bankers.

This has resulted in the company having a large portfolio of assets which can be readily securitized, yet as the climate of most banks in the country are not geared to large volume lending this avenue awaits being fully tapped.

As at February 2009 the company was supported by an income earning asset base of Rs. 3.1 billion against a fixed Deposit base of 2.2 billion. With average wages at a modest Rs. 17,250 amidst a cadre of 124 located in two branches and three collection centres, Sinhaputhra has been modest in its remuneration compared to peers and has always assumed its role at not taxing the fund base for non income earning expenditure.

The company’s headquarters which was built in anticipation of housing an unrelated diverse group of institutions will soon have an Insurance broking company, a fully fledged tertiary education centre, a Business Process Outsoucing company, The Central Province Chamber of Commerce, The Asia Foundation and the Sunera Foundation.

The company believes that a combination of such functional institutions will bring synergies to each other in the centrally located Sinhaputhra Complex for the companies next stage of calculated growth.

Rs.30 mn. museum project

The newly renovated Coins and Currency, Arms and Armaments and Standards and Banners galleries at the Colombo National Museum (closed for a year while undergoing a refurbishment plan) opened its doors to the public on March 13.

The Rs. 30 million project undertaken in 2004 by HSBC has seen the completion of nine galleries to-date; Anuradhapura, Polonnaruwa, Kandy, Transitional, Stone and Arts and Crafts, Coins and Currency, Arms and Armaments and Standards and Banners galleries. The collection represents the finest and rarest artefacts of Sri Lanka’s culture and heritage from past centuries.

The newly refurbished galleries of the Museum provide significant information on coins and currencies, banners and standards and arms and armaments.

The coins gallery features indigenous and foreign coins belonging to the Anuradhapura, Polonnaruwa, Dambadeniya and Kotte eras, as well as coins and currency used during the Portuguese, Dutch and British administrative periods.

The banners and standards gallery presents the evolution of the lion flag which had undergone several variations from time to time before seeing it, in its final glory.

The Arms and Armaments gallery displays different types of guns, pistols and cannons produced with the influence of Europe. Bows, arrows, swords and daggers produced with the influence of India and various other fire arms such as Gini vedi, Gal vedi and Dum vedi popularly used in the 13th century. All three galleries have been upgraded with state-of-the-art lighting, illuminated trilingual information panels and displays.

The galleries were officially opened by Cultural Affairs and National Heritage Minister Mahinda Yapa Abeywardene in the presence of HSBC Sri Lanka and Maldives Chief Executive Officer Nick Nicolaou, National Museums Director Dr. Nanda Wickramasinghe, Museum officials and many others.

At the launch ceremony, Abeywardane commended and thanked HSBC for its commitment and support to refurbish the Museum. Whilst thanking HSBC, for stepping in to protect the culture and heritage of this country, he said, "In spite of today’s world financial crisis, HSBC is doing well and is able to stand strong because it’s a bank that’s able to differentiate between right and wrong, knows its priorities and believes in giving back to the community it operates in."

Wickremasinghe said, "A Museum can be considered a mirror of a nation. Through museum exhibitions we can educate visitors on our nation’s history and heritage. Therefore the opening of these galleries is a significant achievement in the history of museums in Sri Lanka.

The refurbishment of the exhibition galleries was planned and led by Prof. Leelananda Prematilake. His varied contribution in terms of design, layout and supervision has transformed the museum’s architectural appeal, while reorganizing and renewing the presentation of its extensive collection.

Nicolaou said, "As the world’s local bank, HSBC is committed to a sustainable corporate business and one thing we do all over the world is to contribute to the communities we operate in. We are delighted to partner the Museum in preserving the rich culture and heritage of Sri Lanka which is on par with some of the best national museums around the world and we thank the officials for giving us this opportunity."

Feting performers

Janashakthi Insurance recently rewarded over 150 top sales achievers at their Annual Awards for Excellence 2009 which was held at the BMICH.

The Awards, held for the 14th 15th consecutive year since 1995, was patronized by Chief Guest, Chairman W.T Ellawela; Guest of Honour, Deputy Chairman Mr C C. T. A Schaffter; Managing Director Prakash Schaffter; other members of the Janashakthi Board of Directors; Mr Cubby Wijetunga, Ms Manjula Mathews, Mr Eardley Perera and Ms Anushya Coomaraswamy,Top management; special invitees and selected staff; completing the list of over 1,200 invitees.

The awards are Janashakthi’s springboard for excellence that recognise, reward and honour high flyers not only in sales and marketing, but in several other areas of accomplishment as well including, namely sports and, athletics. and internal team building activities including competitions and quizzes. Rewarding individual successes, outstanding team achievements as well as effective partnerships, they showcase Janashakthi’s commitment to innovation and to delivering continuous service improvements.

Janashakthi awards evening is the most spectacular ceremony in the company’s calendar and one of the most notable events in the industry and is eagerly awaited by staff from all over the country island. Over 150 winners, demonstrating the highest standards of best practice and innovative initiatives during 2008 vied for the coveted title of Chairman’s Club; only a select seven, the cream of the winners, were accorded the honour of membership in this prestigious club this year; P. K. A. S. Jayanath Alwis – Colombo Intergrated Office, W. T. Cassim, – Colombo City Office P. D. Chandrarathne Maharagama ADO, Colombo City Office H. L. A. Harshana Head Office (Life), L. A N. Danushka M. R. Fairoze, and K. M Rajmohan comprised those. – Colombo Metro.

Two highflying members of the Life sales team qualified for the prestigious MDRT (Million Dollar Round Table) in 2009, Mr G S Ruwan Kumara, a fifth time qualifier of MDRT, and R. Azmeer, a first time qualifier.

The company also felicitated 18 IQA (International Quality Award) and 93 IAP qualifiers including 11 platinum qualifiers awarded by the world’s largest life insurance research agency LIMRA.

Winners were rewarded for being the driving force behind the company’s success at company and international level with awards and rewards comprising of Winners were rewarded for being the driving force behind the company’s success with trophies, certificates of excellence, air tickets to exotic destinations as well as cash awards.

Ellawela in his address commended the sales team for their commitment and hard work that enabled the company to surpass the highly commendable achievement of Rs. 5 billion in GWP last year, and said that the company had recorded a noteworthy performance despite the lacklustre economic milieu.

Prakash Schaffter in his address said that sales are the oxygen of the company and the impetus that facilitates the company’s growth to new heights of excellence. He also expressed the company’s deep appreciation of the sales force for their noteworthy accomplishments and thanked staff who travelled from far and wide, especially from the north and east of the islandcountry, to share in the triumphs of the evening.

This sentiment was echoed by General Manager Sales and Marketing Ravi Liyanage, who in his address itemized Janashakthi’s many achievements, recalling the fact that the North and East had played a dominant role at the Awards presentation during more peaceful times.

Pet policies

Asian Alliance Insurance PLC (AAI) signed a Memorandum of Understating with Brown & Company PLC, the sole authorized distributor for "Eukanuba" dog food in Sri Lanka recently.

As an initial step, a free sample of Eukanuba dog food will be offered to Alliance Pet Insurance policyholders. The two companies will be rolling out their joint plans which would include promotions, dog shows, grooming sessions and medical attention.

AAI introduced the first ever pet insurance policy in Sri Lanka with a medical and surgical cover for pets. "Alliance Pet Insurance" policy is designed to cater to escalating veterinary expenses.

AAI Asst. General Manager-Marketing Ms. Nadi Dharmasiri said: "This strategic tie-up will no doubt add value to our offerings; as the only pet insurance provider in the Sri Lankan insurance industry, Asian Alliance is privileged to be associated with a world renowned brand such as Eukanuba."

She added that this unique tie up will be the stepping stone for a long term business partnership between AAI and Browns. AAI introduced the 1st ever pet insurance policy, "Alliance Pet Insurance–Deluxe" in Sri Lanka with a medical and surgical cover for pets in December 2008.

The market feed back coupled with the demand for an augmented product by customers, post introduction resulted in "Alliance Pet Insurance– Premier." Customers now have a choice with the type of pet insurance policy best suited for their pets.

"Alliance Pet Insurance - Premier" offers "better" benefits and thereby more value to pet owners: Medical and surgical cover for 21 specified illnesses and death cover due to accident or sickness, "pet goes missing cover" and 3rd party liability cover are some of those.

"Our aim is to provide the best insurance solutions to our customers at all times; our successes has always been driven by understanding our customer needs better and processes & systems which are pivoted on innovation," CEO Ramal Jasinghe said.

Trip to China

Union Assurance General Distribution offered an incentive tour to China, to a group of 19 from across the Island. They were selected on the basis of their performance in General Insurance business in 2008.

It was a real-life experience for the entire group to witness how the Chinese work hard for the betterment of their country and for their personal economic success which in turn contributes to the overall economic growth rate of China, one of the highest in the world.

"It was indeed a great tour for us because we were able not only to see the Great Wall which is the only man-made structure visible from the moon, but were also able to walk on it. We experienced ancient China and visited many important sites," said Assistant General Manager General Distribution Branches & CMU Nihal Handunge.

They spent five days and four nights in Beijing which is also a place symbolizing China’s glorious history and modern-day- technological marvels. Union Assurance plans to continue this system of rewards, which is part of a rewards programme for its sales team.

168 ATMs

Greenhouse gases & global warming

In 2007, the 4th Assessment Report of the Inter-Governmental Panel on Climate Change made it clear that the climate is warming and "most of the observed increase in globally averaged temperatures since the mid 20th century is very likely due to the observed increase in anthropogenic greenhouse gas."

Carbon Doxide (CO2) released by the burning of fossil fuels accounts for more than half of the global greenhouse gas emissions responsible for climate change.

CO2 emissions reached 28 billion metric tons (mts) in 2005 and continued upward, resulting in increased atmospheric concentrations of CO2.Globally emissions increased by 30% from 1990 to 2005, with annual growth from 2000 to 2005 greater than in the preceding decade.

From 1990 to 2005, changes in emissions ranged from a 38% decline in countries of the Commonwealth of Independent States to an 82% increase in South East Asia.

Per capita emissions remain highest in developed regions, about 12 mts of CO2 per person per year compared with about 3 mts in developing regions and 0.8 mts in Sub Saharan Africa.

Emissions per unit of economic output fell by more than 20% in developed regions while they increased by 35% in South-East Asia and 25% in Northern Africa.

While no area can escape the adverse impact of climate change, the Arctic, small islands, mega deltas in Asia and Africa and the African region overall seem to be especially vulnerable because of their high exposure to the effects of climate change, their populations’ limited capacity to adapt to the consequences, or both.

Developed countries that are parties to the Kyoto Protocol have agreed to reduce their greenhouse gas emissions by at least 5% from their 1990 levels by 2012.

At the 2007 UN Climate Change Conference in Bali, countries began new negotiations under the UN Framework Convention on Climate Change that are to be completed by the year end (2009).

Negotiations covered both mitigating and adapting to climate change-two facets that must be addressed simultaneously and urgently.

An infusion of financial resources and investment as well as technology development and transfer (sharing expertise and technology among nations and regions) were recognized as key issues.

Severing the link between energy use and greenhouse gas emissions will require more efficient technologies for the supply and use of energy and a transition to cleaner and renewable energy sources.

In response to the growing demand for energy worldwide, large investments in energy projects are expected over the coming years. It’s important to act now. Investments made today will determine the pattern of greenhouse gas emissions for decades to come.

(Source: UN’s 2008 Millennium Development Goals report)

Rs.3bn.,turnover

Shaw Wallace Marketing Ltd., achieved the milestone of a Rs. three billion turnover in the "current" financial year despite adverse economic and political issues experienced during the year.

This was mainly possible due to effective strategies being implemented and also as a result of excellent team work by the sales and marketing force in the Consumer and Automotive Divisions. Marketing Director T. A. Pullenayegam made mention of this achievement at the annual sales conference which was held at a resort hotel in Wadduwa, with the participation of the entire sales force.

Delmege Marketing [Pvt] Ltd, a member of the Delmege Forsyth Group of Companies, specializing in wholesale and retail distribution, has been appointed as the new national distributor in Sri Lanka for Milgro milk powder.

Delmege Group is one of Sri Lanka’s oldest business establishments having been founded in 1850 and has been in the distribution business for several decades.

Milgro brand is owned by Pacific Inter-Link (PIL) Malaysia, a diversified business house whose activities include trading, manufacturing, shipping and marketing fast moving consumer goods (FMCG) products.

They currently services over 50 global markets.

According to Delmege Marketing CEO Dinesh Nalliah, the milk powder used for the Milgro brand is sourced from New Zealand. "Milgro Creamy Full Cream milk powder is available in four pack references whilst Milgro Instant Full cream milk powder too is available in four pack references.

All PIL manufacturing facilities have been awarded ISO and HACCP certifications." He added that Milgro’s milk packing plant is fully automated with the product being untouched by human hands. "This plant too is ISO and HACCP certified and has in-house testing facilities, including micro biology tests."

PIL Sri Lanka’s Country Manager Chrishantha Fernando stressed the fact that the milk powder was sourced strictly in line with laid down specifications and imported only from New Zealand, with the product currently being exported to over 25 countries. "Milgro entered Sri Lanka six years ago with a clear vision and a long term commitment to the market. The brand created a new segment ‘Instant’ and now has 8 ‘SKUs’ in two product forms namely instant and regular." He said that the product was readily accepted by both adults and children and now that the product had come under the Delmege mantle, both the trade and consumers will be served better.

With the appointment as Milgro’s national distributor, Delmege will be further strengthening its FMCG business. The company is already a significant player in the FMCG business with its associate company Delmege Distrbutors (Pvt) Ltd.

Delmege Marketing has an islandwide distributor network with a comprehensive reach, servicing different channels such as traditional trade, modern trade, food service, as well as non-conventional channels such as cinemas, clubs, and other outlets.

Delmege Group’s other FMCG subsidiary, Delmege Distributors represents global brands in addition to marketing many well known local brands such as Delmege Canned Fish, Motha, Delmege tea, bottled water, soya, essences and colourings and noodles.

It is now an accepted and favoured household name, synonymous with many brands in categories such as tinned food products, desserts, confectionary, bakery products and many others.

Nalliah added: "Delmege Distributors has established itself as one of the most reputable and efficient FMCG distributors and the addition of Milgro milk powder to our portfolio through our subsidiary Delmege Marketing will serve to further enhance our product portfolio, thus enabling Delmege to serve an ever widening market of satisfied consumers."

Bonus upon bonus

This Avurudhu season will bring new cheer to over 10,000 Ceylinco Life policyholders who will receive Rs. 27 million in Avurudhu Cash Bonuses in a continuation of a tradition introduced by the life insurance leader in 2004.

As in previous years, these cash bonuses, which will come in the form of immediately encashable cheques, which will be home–delivered by Ceylinco Life personnel in April.

"Here once again is a bonanza that is unique to Ceylinco Life," said Ceylinco Life Deputy Chairman R. Renganathan. "These payments are in addition to the Rs. 1,400 million in annual bonuses currently being delivered to Ceylinco Life policyholders."

According to Renganathan, this year’s bonuses will bring Ceylinco Life’s Avurudhu Cash Bonus payments total value over the last six years to more than Rs. 127 million. Total number of beneficiaries is over 53,000.

Rural India grows

MTI Consulting’s recent study on Indian FMCG sector indicates that the overall demand is undeterred despite recent price hikes by FMCG firms.

Due to increased demand of consumer goods from the rural markets, the outlook looks positive for firms in the quarters to come.

Rise of the per capita income in the rural regions due to higher farming output and government backed loans have fuelled consumer spending against decreasing volumes and margins seen in the urban region that is mainly effected by the financial turmoil and economic slowdown.

The FMCG sector grew double digit in the past nine months.

The sector was expected to touch USD 25 billion by December 2008 end as opposed to USD 20 billion in 2007 despite price increases. During 2008 saw retail prices of FMCG goods increasing by 10% in line with inflation at a 13 year high and firms like Hindustan Unilever (HUL),, Godrej, and Marico met the rising input costs by raising prices. Consumer spending for FMCG products remains robust in India and industry majors such as HUL, ITC ltd, Britannia Industries, Colgate Palmolive, Nestle, Dabur and Marico have on an average posted a sales growth of around 19% in the third quarter ending in December 2008. Overall the industry has been growing at a rate of 17-20%.

There has been notable increases in advertising and media costs of the companies, with Godrej planning to increase its Advertising and Branding costs by around 35% in 2010. According to Adexindia, the expenditure of FMCG companies has increased by 18% in 2008. HUL spent 8.6% of its net sales on advertising and promotions this quarter.

At Barcelona

Over 47,000 visitors from 189 countries attended this year’s GSMA Mobile World Congress at Barcelona. WaveNet International Pvt. Ltd, showcased its product portfolio at this global forum for the first time. This included its solutions for Messaging, Video VAS, and Mobile Marketing.

The company was represented by its senior management team including its CEO Suren Pinto, Project Architecture Head Surajee Ratnayake, Chairman Susantha Pinto, Corporate Communications/Acting Head Business Development Ms. Sanjini Munaweera, Chief Technical Officer Eranga Weeraratne and Snr. Business Development Manager Mirantha Perera.

Free trade

Sri Lankan Exporters can now enjoy duty free access for about 4,000 products to the Pakistan market under the final phase of trade liberalization of Pakistan-Sri Lanka Free Trade Agreement (PSFTA).

This was possible as a result of Export Development and International Trade Minister Prof. G.L.Peiris having discussions with Pakistani authorities.

At the implementation of this Agreement in 2005, Pakistan granted immediate duty free access for Sri Lankan products such as Tea (under a Tariff Rate Quota-TRQ), Betel leaves (TRQ), coconut products, natural rubber, spices, paper boards, articles of aluminum and natural graphite.

The final phase of liberalization will provide duty free access for additional 4,000 products such as Fish and Meat Products, Vegetable and Vegetable Products, Foliage and Plants, Sugar and Sugar Confectionary (Biscuits), Pastry and Cakes, Mineral Products, Fibre Boards, Leather and Leather based Products, Footwear, Gems and Jewellery, Value added Copper Products, Electrical Apparatus, Printed Circuits, Bicycles, Boats and Floating Structures.

Total trade between the two countries has increased from Rs. 16 billion (US$ 159 mn.) in 2005 to Rs. 30 billion (US$ 270 mn.) in 2008. Sri Lanka’s exports to Pakistan have also increased from Rs. 4 billion (US$ 43 mn.) in 2005 to Rs. 8 billion (US$ 71 mn.) in 2008, benefiting from the concessionary access made through the FTA.

Seylan Card recently launched a special scheme to celebrate the forthcoming Sinhala and Hindu New Year.

In encouraging the use of Seylan Visa credit and debit card cards, Seylan cardholders are entitled to win prizes and rewards based on their usage of any Seylan credit card and Seylan debit card.

Using your Seylan credit card for a minimum of Rs. 5,000 during this month (April) entitles the cardholder to three cash rewards of Rs. 50,000 each. Further, Seylan credit cardholders who had used their cards for more than Rs. 25,000 worth of purchases from January 1-April 30, 2009, will qualify for the quarterly draw, with one grand winner walking away with two air tickets to Bangkok or Malaysia along with US $ 1,000 in pocket money.

Seylan Card Centre Senior Deputy General Manage Tissa Nanayakkara said: "We are the only credit card issuing bank to absorb the stamp duty which is recognized by all our valued card holders. This season we introduced this special scheme to encourage the use of Seylan credit card and debit card.

There are 100 ATM machines owned by Seylan Bank which will provide easy access to cardholders, in addition to point of sales terminal found at all merchants who handles credit and debit card payments. Apart from the existing Visa range offered by Seylan cards, we have now started issuing Master cards through our card centre."

In addition, Seylan visa debit card holders who spend over Rs. 500 at supermarkets will be entitled to a special draw with one grand winner picked along with 20 consolidation prize winners. The grand prize on offer is a cash reward of Rs. 50,000 and the consolidation prize winners will receive Seylan visa gift cards worth Rs. 5,000 each.

"Along with these rewards, all Seylan visa card holders can enjoy discounts up to 30% at Abans showrooms and a 10% discount at selected Singer Plus outlets during the Sinhala and Hindu New Year," he added.

Explaining the benefits of the Seylan traveller’s card, Nanayakkara said that it’s an alternative to travellers’ cheques and is a prepaid card which is accepted worldwide, providing a secure and convenient electronic payment option when travelling overseas.

"This card avoids the risk and inconvenience of handling cash or travellers’ cheques. The card is available in three international currencies-the US dollar, Sterling Pound, and Euro.

Usage is simple and provides round the clock access to your money from over a million automated teller machines in over 150 countries and at 12 million merchant outlets globally for payment of goods and services," he said.

276 passed finalists

CIMA Sri Lanka division held its biannual Convocation for the new passed finalists and members at the BMICH recently.

One hundred and forty seven newly elected Associate and Fellow members, 276 passed finalists and 13 Sri Lankan prize winners including a Sri Lankan world prize winner at the November 2008 examination received their certificates and gold medals during the ceremony for their outstanding accomplishment.

Dilshani Gunawardena (20), the latest CIMA World Prize Winner who brought tribute to Sri Lanka by winning a world prize for Finance Accounting and Tax Principals at the November 2008 exam was given special recognition for her creditable achievement.

CIMA global Vice President George Glass, Chief Guest at the function said, ‘This year, CIMA celebrates its 90th anniversary and these impressive results demonstrate that the institute, and the Sri Lanka division in particular, continues to go from strength to strength.’

Whilst congratulating the winners, CIMA Director Andrew Harding said, ‘Once again CIMA’s Sri Lankan members and students have produced outstanding results. This is a tribute to their hard work and diligence. It places them firmly in the top echelon of the global accountancy profession. CIMA has given them an opportunity which they have seized. Their next opportunity is to build their careers and then go on to lead the world’s major businesses. The global CIMA network will continue to support them in fulfilling their ambitions, and we look forward to celebrating their future successes together.’

The Convocation which is not only a celebration of the achievements of the new passed finalists, members and prize winners, but is also a recognition of the tremendous support often provided by parents, employers and tuition providers, was attended by more than 1,000.

The winning students were awarded the designation of prize winner for their high scores and excellent student performances which count towards their qualification as a Chartered Management Accountant.

PAB’s profits up 33%

Pan Asia Bank (PAB) had an impressive performance in 2008, with growth in income and profits, enhanced service quality to customers and improved processes. Income soared by 40% to Rs. 3,241 mn., driving up profit before taxes by 33% to Rs. 422 mn., during a period of change for the Bank. Cost to Income ratio improved from 58% to 55%.

Liquidity and capital adequacy ratios have remained comfortably above targets throughout 2008, despite market turbulence, reflecting prudent approach to risk management. The management of prudent liquidity ratios is critical for a sustainable banking organisation. During the year the Bank focused on the need for adequate liquidity within the bank and was successful in maintaining an Asset to Deposit Ratio (ADR) of 85%.

The Bank’s balance sheet position strengthened with total assets growing by 22%. Customer Advances & Deposits growing by 20% and 19% respectively and compares well with industry growth of 7.9% and 11.2%.

PAB increased its focus towards corporate customers by adding some top companies to its portfolio recently and now has an exposure of approx. 21% to this key sector. PAB recently launched its "First Class" Private Banking service to high net worth individuals, differentiating its services from competitors.

However, the Bank’s Non Performing Ratio deteriorated from 7.35% in 2007 to 10.17% in 2008 mainly due to the high inflationary situation and overall adverse economic conditions that prevailed during the year, affecting the repayment capacity of the borrowers as experienced by the whole industry. The bank is aggressively following up and taking action towards recovery of the Non-performing portfolio, the majority of which is secured by tangible security.

Four new branches were added to the growing branch network of 33 with the opening of branches in Gampola, Anuradhapura, Kalutara and Borella-interestingly only one branch in the western province, emphasising the focus of the bank in reaching beyond urban locations. The bank also upgraded two service centres to fully fledged branches during this period. Branch network expansion plans are subject to Central Bank of Sri Lanka approval, i.e. to open new branches in Malabe, Peradeniya, Hambantota, Vavuniya and Matale.

TEAM PAB went through several changes during the year, as the bank had to ensure that they had the required skills and experience to thrive in a turbulent market environment. This included the centralization of the processing and credit administration functions that ensured better controls and governance, resulting in improved efficiencies and increased capacities. This enabled the bank to reduce staff strength from 547 to 507 despite the opening of three new branches during the year. Senior level management changes were made and experienced professionals with foreign and local banking experience joined the bank, ensuring that best practices are implemented in the bank’s operations, processes and risk controls.

Employee efficiency ratios improved during the year, with income per employee increasing from Rs.4.2 mn. to Rs. 6.4 mn., whilst cost per employee was reduced to Rs. 1.2 mn., from Rs. 1.6 mn. The performance management system is being re-engineered to reflect a performance-based culture, where performance, rewards and recognition are an integral part of the HR strategy to create a winning team.

Great emphasis was put in building the brand "Pan Asia" which has an impact on shareholder value creation. The bank has re branded most of its branches, and made their presence felt through the media and hoardings. They have also sponsored many important events during the year across the country in areas they have a presence, to make Pan Asia brand a household name. The bank embarked on unconventional and unique advertising campaigns that seem to be more effective than conventional advertising.

Building a sustainable business is an integral part of the Bank’s long term strategy to enhance shareholder value. "The main focus in this area has been on how we could contribute to the future of Sri Lanka and its people who are present and future customers. The bank has taken a threefold approach. 1. Assistance to families directly affected by the war through the "Ranaviru Harasara" programme. 2. Encouraging and embedding the saving habit among schoolchildren from the time they enter school, to help in increasing the national saving ratio and 3. Assist disabled children to be productive citizens of Sri Lanka in the future and contribute to the economy.

PAB as a fully local bank, and for the first time in Sri Lankan banking history has come up with a specialised savings account to serve war heroes and their families. The "Ranaviru Harasara Account"-an account with 2.5% higher interest rates than a normal saving account-together with a host of free services and dedicated counters to give personalized service has been initiated for the families of 45,000 armed forces who have sacrificed their lives for the country.

PAB CEO Ms. Kimarli Fernando said, "PAB is committed to offer our growing customer base rapid, professional and personalised service under the slogan ‘At Your Service.’ To achieve this we are implementing new systems and investing in staff training. We are committed to adding value to our stakeholders and expect a sound performance in 2009.

Touch phones

The top of the line LG KC910 Renoir is an artistically inspired mobile phone with an eight megapixel pack, full touch interface, Dolby Mobile and Wi-Fi. This amazing phone from LG, the global leader in touch phones, 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 using advanced GPS to determine exact spot where photo was taken, and above all an 8 megapixel camera with remote controlled shutter. 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.

With HSDPA connectivity at 7.2 Mbps and seamless connections through Wi-Fi, users can browse the internet at "blazing" speeds in areas where wireless internet service is available. Other features include Backlight Compensation, Art Shot, Beauty Shot, Face Tracking, Blink Detection, Smile Shot, Slow Motion and Fast Motion Video Recording.

LG Touch Phones are much more than mere camera phones, they put everything at your fingertips and provide a multi-sensorial experience through sight, sound and touch. Their 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 LG KC910. 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 LG Touch Phones supersede 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.

In addition to the KC910, LG also has to its smart and touch screen phone range, the highly acclaimed KV990 (Viewty) and KP500 (Cookie). The range of LG Touch Phones are available at Abans Office Automation showrooms at a price that’s even more amazing.

178th branch

Hatton National Bank (HNB) opened its 178th Customer centre at Biyagama Road, Weliweriya recently. The Chief Guest for this occasion was HNB Managing Director/CEO Rajendra Theagarajah. A large gathering was present on this occasion, which included senior bank officials, government officials, local businessmen and customers.

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

Chevron Plc in the financial year ended December 31, 2008 saw turnover grow by 3% year on year (YoY) to Rs. 8.9 billion. Profit after tax however declined by 12% YoY to Rs. 947.7 million.

TM International Berhad (TMI), the holding company of Dialog Telekom Plc, has changed its name to Axiata Group Berhad, a statement said.

Hutchison Telecommunications Lanka (Pvt.) Ltd. extended its support to the "Next Generation Networks Standardization Forum 2009" that was held in Colombo recently by granting mobile connections to all visiting delegates.

Singer Sri Lanka’s longstanding Marketing Director Asita Abayasekera retired from that post with effect from April 1, 2009.

Abayasekera, who also served as an Alternate Director on the Board of Directors, will be replaced by the Company’s Senior Deputy Marketing Director. Nasser Majeed who brings with him a wealth of international management experience, having served as General Manager for PT Singer Indonesia TBK.

Singer’s Deputy Marketing Director Kumar Samarasinghe, will run the broadbased high revenue earning "Singer Plus" channel as Director Sales & Sewing Marketing, while Premalal De Silva, their previous Sales Director will take on new responsibilities as Director Operations for Singer’s Modern Retail Trade Channels, namely, "Singer Mega," "Modern Homes" and "Sisil World."

In making these strategic changes to its key management format, Singer is poised to maximise revenues generated from its various retail channels. By focusing more keenly on these channels which cater to different socio-economic groups of consumers, Singer will be better able to adapt to and anticipate the needs of these diverse groups, ensuring a better return on investment.

DHL will invest US$8 million in Sri Lanka over three years.

Investments will go towards the joint venture DHL Global Forwarding Lanka (DGFL) executed in partnership with Capitol AEI Pvt. Ltd., for employee training, upgrading of information systems and introducing an enhanced range of services for businesses in Sri Lanka.

The fashion and apparel industry-Sri Lanka’s biggest source of revenue to its economy, is one of the core focus areas for DHL Global Forwarding in Asia Pacific. This industry contributes nearly 8% to Sri Lanka’s Gross Domestic Product and accounts for 45% of Sri Lanka’s export revenue and 67% of total industrial exports.

DHL estimates the Fashion and Apparel Logistics industry to be worth US$3.9 billion annually in South Asia. India, Pakistan, Bangladesh and Sri Lanka are estimated to account for well over US$2.4 billion in this fast-growing industry.

DHL’s services cover the entire logistics value chain of the fashion industry.

DGFL operates a combined warehouse space of over 380,000 square feet, a fleet of about 40 vehicles and employs close to 250 people.

JWT won the network of the year award for the second consecutive time at the 12th Asia-Pacific Advertising Festival that concluded at Pattaya recently.

Free Lanka Plantation Holdings (Pvt.) Ltd., the holding company of Pusellawa Plantations Ltd and Maturata Plantations Ltd., and controlled by K. Aloysius, saw 50% of its equity divested to Browns Plantation Investments (Pvt.) Ltd., a joint venture company of Brown & Company Plc and Taprobane Holdings Ltd., Browns in a stock market filing recently said. This transaction took place last year.

National Aeronautical & Space Association of the U.S.A. (NASA) is developing equipment to deflect near earth objects (NEO) from entering the Earth’s atmosphere, an activity if unchecked, could cause heavy damage to the Planet if such natural "satellites" crash on to the Earth.

Dr. Kavan Ratnatunga, President of the Astronomical Association of Sri Lanka delivering a lecture at the Institute of Engineers recently said that some 100 years ago, in 1908, such a meteorite crashed at Tunguska, Siberia, destroying trees 25 kilometres across.

"If it had hit a crowded city like New York, the consequences would have had been disastrous," he said.

Ratnatunga further said that the planet Jupiter is several times the size of the Earth. And in 1994 a meteorite hit Jupiter causing damage to an area similar in size to that of the Earth, he said.

Singer Sri Lanka PLC in a stock exchange filing recently said that it has taken measures to strengthen its credit metrics in the coming six months by slashing inventories, reducing unproductive headcount and improving gross margins and drastically reducing fixed (period) expenses.

This was with reference to Fitch downgrading the company’s national long term rating and the rating on its senior unsecured notes to "A-(lka)," from "A+(lka)." The ratings have been places on "rating watch negative."

Singer is also confident of meeting its refinancing needs in the short term, the company further said.

Businessman Farook Kassim is Dubai-based Sri Lankan Business Council’s (SLBC’s) new president.

Other office-bearers are Devenand Mahadeva (Treasurer), Palitha Ratnapala (Secretary), Janaka Palapathwala, M. Mahendran, Upali Kahandawa (Minister Councellor-Tea Promotion), Shiran A. Perera (Country Manager SriLankan Air) , Mohamed Giado (entrepreneur), Wasantha Senanayeke (Sri Lankan Consul General in Dubai) and Aslam Sulaiman (Sri Lanka Tourism Promotion Bureau).

At the ‘Borsa Internazionale del Turismo’ (BIT), the popular International Tourism Exchange in Milan where over 5,000 exhibitors from 140 countries participated, the Sri Lanka Tourism stall caught the attention of visitors by an impressive display of the destination’s myriad offers as presented by participating exhibitors Airwing, Aitken Spence Travels, Ceylon Tours, Conaissance de Ceylan, Crystal Holidays, Eco Team–Sri Lanka, Heritage Expeditions, Jetwing Travels, Lanka Sportreizen, Sunway Holidays, and Walkers Tours.

Servings of Ceylon Tea complemented the destinations many attractions and was an introduction to the warm hospitality that awaits visitors to Sri Lanka. (Sri Lanka Tourism)

Sri Lanka Tourism is beginning to be cautiously optimistic, with the inevitable end to the long and protracted war situation.

Tourist Hotels Association of Sri Lanka (THASL) President Srilal Miththapala said that three months ago it was all "doom and gloom" for the industry. But now, it appears that there could be some light emerging out of the long dark tunnel. "We see a possible upswing of arrivals to Sri Lanka once the war is over, and peace returns to the country. True, we are faced with a huge world economic crisis, which is having a detrimental impact on the industry. But there will be still people traveling, and those who do, will look for value for money. Sri Lanka fits perfectly into this requirement. People know about Sri Lanka, and there could be a great opportunity here."

It is now time for the entire industry-the Tourist Hotels Association of Sri Lanka, the Sri Lanka Association of Inbound Tour Operators, SriLankan Airlines, Sri Lanka Tourism Promotion Bureau, and all other stakeholders to come out with a national promotional campaign to ‘Re-launch Sri Lanka to the World,’ he said.

‘I saved SLR 25,000 ($235) by not using chemical fertilizers and pesticides for my half acre chilly cultivation’ said Rajakulanthiran, a market gardener from Ampara.

Adoption of Diversified Agricultural Farming Technologies such as application of organic fertilizers and pesticides, mulching, raised beds, seeds selection, bio fencing, vermi composting and crop diversification guarantee farmers a significant increase in profit.

Rajakulanthiran acquired the knowledge and skills, and works closely with the Agricultural Extension Department staff who have been equipped to train farmers across the district.

Rajakulanthiran who documents expenditure and income from his half an acre chilli cultivation farm says that the life of chilli plants has increased by two months thus significantly increasing his income. The net profit for Rajakulanthiran is SLR 39,108 ($370), a more than a 150% increase. (Oxfam)

Women account for half of those in refugee camps worldwide, but their participation in camp decision making processes remains low.

Data from more than 80 camps show that equal participation has been achieved in only about two of five camps. More recent data however, from 2005 and 2007, indicate that women’s political participation in refugee camps is increasing. (Source: UN’s 2008 Millennium Development Goals report)

One hundred and one companies from Bangladesh, Nepal and Sri Lanka and 44 delegates from South Europe attended the South Europe Meets South Asia (SEMSA 2009) event, a two-day technological and business matchmaking event organized by the Ceylon Chamber of Commerce (CCC) which focused on IT and IT-enabled services and Processed Food sectors that concluded at the BMICH recently.

South Asian (SA) countries that participated at this event were Sri Lanka, Bangladesh and Nepal, and the South European countries represented were Greece, Spain and Slovenia.

SEMSA’s main objective is to promote technological and business collaborations between

South Asia and South Europe by facilitating one-to-one business meetings between SA SMEs from Sri Lanka, SA countries made presentations to their European counterparts on what they had to offer in terms of IT and IT-enabled services and the Processed Food sector.

National Agribusiness Council and Sri Lanka Food Processors Association were also involved in this event.

Fitch Ratings Lanka Ltd., has placed Seylan Merchant Leasing PLC’s National Long-term rating of BB+ (lka) on Rating Watch Positive consequent to the announcement of an intended take-over (81% of its equity) of the company by Peoples Leasing Company.

Children affected by conflict or political unrest, those who most need structure and a semblance of normality in their lives, are more likely to be deprived of an adequate education.

According to UNHCR, more than 1.5 million school age refugee children live in developing countries, most of them in urban areas or camps.

Data for 114 refugee camps in 27 countries show that full primary school enrolment has been achieved in only six out of 10 camps and that at least one in five refugee children is not part of the formal education system.

In one out of eight of the camps with inadequate primary school opportunities, less than half of all primary school age children are enrolled.

Girls are at particular risk of dropping out before completing their primary education, often because they lack a safe, quality learning environment, or because of poverty and early marriage. In camps where enrolment rates are 70% higher, the enrolment gap ratio between girls and boys has narrowed slightly.

The number of girls enrolled per 100 boys increased from 89 in 2005 to 91 in 2007. (Source: UN’s 2008 Millennium Development Goals report)

An "interesting" concept called VersaBuoy Platform System could be used for a deepwater "fence" to protect future floating liquid natural gas terminals (FLNG) installations and other potential offshore targets all over the world. The key to the VersaBuoy system is the articulating connection between the supporting buoy hulls and the topside structure.

The length and geometry of the buoy hull keeps heave to a minimum while the articulating joint decouples the pitch and roll motions of the buoys from the topsides, keeping the topside structure stable and level.

Multiple units could be linked together providing expandable offshore real estate. (Marine Talk)

SLT’s topline growth last year was hit by a 10% year on year (YoY) reduction in wireline revenue growth to Rs. 15,107 million despite 28,000 new connections and a 14% reduction in CDMA revenue to Rs. 5,133 million despite 150,000 new connections.

However, a 37% increase in data oriented service revenue to Rs. 5,725 million and a 72% revenue increase from its Mobitel subsidiary to Rs. 12,065 million; pushed overall revenue growth by 9% YoY to Rs. 47 billion.

Midaya Ceramic Co, Ltd., Chairman/Managing Director (MD) Dayasiri Warnakulasooriya was re-elected Sri Lanka Ceramics Council President at its 6th Annual General Meeting held in Colombo recently.

Dankotuwa Porcelain PLC Chairman/MD Sunil Wijesinha will serve on the Management Board as Immediate Past President. The rest of the Board Members for the year 2008/2009 are: Lanka Tiles PLC/Lanka Walltile PLC (LWP) MD Mahendra Jayasekera (Vice President), Noritake Lanka Porcelain (Pvt) Ltd., Deputy Chairman/MD Shigeki Hasegawa (Hony. Treasurer) and LWP General Manager Niranjan Jayawickreme (Hony. Secretary).

Unilever acquired Wonderlight Consumer Products Ltd., Rajagiriya’s brand name "Wonderlight" for an undisclosed sum recently.

It will also buy the defunct company’s two soap powder packing machines.

Sri Lanka Tourism’s initiative to encourage domestic tourism, ‘Narabamu Sri Lanka’, is followed up by a recent campaign to refurbish rest houses and holiday resorts owned by the Sri Lanka Tourism Development Authority (SLTDA).

Renovation work on the SLTDA owned and managed Resorts in Bandarawela and Nuwara Eliya is complete, while work on improving the surroundings and the premises of Kataragama Pilgrims’ Rest is due for completion. Anuradhapura Rest House is also due to get a facelift. (Sri Lanka Tourism)

Commercial Bank of Ceylon (Com Bank) was adjudged Sri Lanka’s ‘Best Bank’ for the 11th year by Global Finance USA for 2008.

Commenting on this latest accolade, Com Bank Managing Director Amitha Gooneratne said: "In the prevailing adverse environment, it is crucial for financial institutions to build and sustain public confidence. We are pleased that Global Finance has once again recognised our key strengths such as effective risk-management systems, excellent service and good corporate governance.

Being adjudged Best Bank for the 11th consecutive year indicates that Com Bank has established a level of consistency of performance that is unique in the region."

Seylan Bank offers the public exciting prizes as well as gifts in the Bank’s "Aluth Avurudu Thagi Varam" mega promotion for the Sinhala and Tamil New year.

The Bank’s islandwide branch network would be open for " Avurudu Ganudenu" on April 14, 2009, new year’s day. It will end on April 30.

Persons who invest in six months savings certificates during this period will be entitled to one chance per every Rs. 1,000/- invested, in the draw to be held at the end of the promotion.

Seylan will also pay 12% p.a. interest on saving certificates thus invested.

Twenty one prizes will be on offer, symbolizing the bank’s 21st anniversary.

The first prize would consist of 21 gold sovereigns in addition to 20 prizes of Rs. 50,000 each in six months savings certificates.

Seylan will also offer investors during this period an attractive "Travelling Bag" to everyone who invests Rs. 20,000 or more in six months savings certificates.

Selected HSBC branches will be open on April 14, 2009, Avurudhu day.

Those are Bambalapitiya, Kohuwala, Wellawatta, Pelawatta, Wattala, and Kandy which will be open for Ganu Denu

HSBC ATMs all over the country are available for easy access to cash, particularly useful for Avurudu shoppers, plus complete bill payment facilities.

Third party channels for credit card bill payments such as, Cargills supermarkets, Singer showrooms and Abans showrooms, Commercial Bank and Sri Lanka Post will be open on selected days.

Customers can also use phonebanking and HSBC internet banking for other bank transactions.

Union Bank recently launched UB Ultra Saver, an attractive savings proposition with at interest rate of 13%, the highest in the market.

Speaking more on this savings product, Union Bank Marketing s Manager Shaminda Herat says that this unique saving product was introduced to cultivate the savings habit among the public.

He sai there are no pre conditions to open an UB Ultra Saver account and it does not require the customer to maintain a particular account balance to enjoy the benefits of a 13 % interest rate.

In line with the Avurudhu season, Union Bank has also introduced "Avurudhu Double" promotion where three lucky customers get an opportunity to double their existing balance at a grand draw that will take place at the beginning of June when the promotion concludes.

The bank has also launched the Avurudu Fixed Deposit with an attractive interest rate of 18%, during this festive season.

Further more, Union Bank’s customers will receive gifts when they carry out their transactions on "Ganu Denu" day on April 14.