business Sri Lanka

Consumer price inflation in Colombo has risen to 5.5% in January 2017. From a year ago and inflation calculated for December 2016 was 4.5% .YoY inflation of Food Group has increased from 4.1% in December 2016 to 4.5% in January 2017 and that of Non-food Group has increased from 4.5% to 6.0% during this period. For the month of January 2017, on year to year basis, contribution to inflation by food commodities was 1.31%. 

Dipped Products Limited Group (DPL) turnover for the nine months of the financial year 2016/17 was Rs. 18 billion, compared to Rs.16 billion for the same period of the previous year.

The Hand Protection sector contributed Rs.11 billion to the Group’s top line, while the Plantation sector recorded a turnover of Rs.7 billion for the period,a Stock Exchange filing said.

The Hand Protection sector reported a PBT of Rs.598 million which is a 30% increase compared to Rs.460 million in the previous period. However, the Plantation sector recorded a loss of nearly Rs. 357 million due to lower crop, mainly arising from adverse weather conditions and restrictions on weedicides.

Established in 1976, Dipped Products is one of the leading non-medical rubber glove manufacturers in the world, and accounts for a 5 percent share of the global market. The company’s products now reach 68countries. 

Trade agreements with India and Singapore will not lead to a major turnaround in FDI inflows to Sri Lanka, Institute of Policy Studies of Sri Lanka Deputy Director Dr.Dushni Weerakoon said.

Highlighting economic impacts of the proposed China - Sri Lanka Free Trade Agreement, Dr.Weerakoon noted that the FTA will have a different impact on Sri Lanka’s economy as under the China-Sri Lanka trade agreement model, state-backed investors follow the government while both governments play a major role in bringing those investors to Sri Lanka.

“In the case of India and Singapore agreements, the respective governments will leave it to the private sector to decide whether it is worth to bring FDI into Sri Lankan with potential trade agreements in place.

However it will depend on whether Sri Lanka has a convincing story to tell in terms of its labour pool, talents and infrastructure and so on.”

Noting that trade agreements play a vital role in opening up economy and the market penetration for local exporters, she claimed that a large number of agreements don’t open up sufficiently to attract foreign direct investments and raise exports.

Weerakoon revealed that Sri Lanka has been very hesitant to sign up to anything over the past several decades.”

While the country still has market access to a larger degree, we are not addressing supply constraints on the part of our domestic exporters in order to access those market penetrations,” Weerakoon said.

According to her most agreements are only addressing one aspect and much needed reforms are not linked to these trade agreements, as a result those kinds of agreements with certain deregulatory measures are not sufficient to raise the competitiveness and efficiency of export sector. 

 Sri Lanka’s ability to benefit from the Madrid Protocol is hobbled by the delays in local trademark registration,Verite Research said.

Despite the significant growth in resident trademark applications during the last decade, the number of trademarks registered a year have stagnated,” Verite Research Executive Director Nishan de Mel said in Colombo yesterday.

“Sri Lankan businesses go through a lengthy and costly process to register their trademarks abroad. As a solution, the Government of Sri Lanka decided to join the Madrid Protocol. This is a centralised global system that simplifies the process Sri Lankan businesses go through when registering trademarks abroad.”

“Registering trademarks at home is an important first step for a company that seeks to register its trademarks abroad. Therefore, to get the full benefits of accession to the Madrid Protocol, Sri Lanka needs to first take measures to address the problems within the local trademark registration system,” de Mel said.

“Verite Research found that the National Intellectual Property Office (NIPO) of Sri Lanka takes around 3 to 5 years to process trademark applications. The widening gap between local trademark applications and registrations significantly limits the country’s ability to benefit from the Madrid Protocol,” he said.

“Registering has a big demand and since the demand from 1995 was 2000, today it has passed the 6000 mark, it has grown three times,” he said.

“Further, Sri Lanka fairs poorly compared to other middle income countries like Philippines, Bulgaria and Vietnam. The number of local trademarks registered as a percentage of applications a year was over 50% in these countries prior to their accession to the Madrid Protocol, whereas in Sri Lanka it is as low as 14%,” he said.

“The requirement the Madrid Protocol imposes on Sri Lanka in return for its benefit is simple. That is, to demonstrate its ability to process foreign trademark applications within a short, fixed period of one and a half years.

However, the benefits Sri Lanka can gain from the Madrid Protocol is severely undermined by the slow process of trademark registration in Colombo.”

In the 2016 budget, the government allocated Rs.100 million to speed up accession to the Madrid Protocol. This was a positive response to a longstanding request made by Sri Lankan exporters. It will assist and encourage Sri Lankan exporters to invest in branding and trademarks in their market strategy and growth.

The Madrid Protocol is a centralised, global system for registering and maintaining trademarks in foreign countries. It is administered by the World Intellectual Property Organization (WIPO).

There are two constituencies that directly benefit through Sri Lanka’s accession to the Madrid Protocol.

The first are international companies in Madrid member countries that are keen to supply to Sri Lanka but have not yet registered their trademark in Sri Lanka.

Accession to the Madrid Protocol will enable Sri Lankan exporters to develop their product and brand with confidence, knowing that the investment in consumer confidence is duly protected. This is the long term also encourages them to develop and sell products under their own trademarks/brand names in export markets, rather than being invisible to customers and remaining a supplier to bands/trademarks owned by others. 

Tilko Jaffna City Hotel is looking to build a city hotel in Colombo and have expanded their foot print in Jaffna as well with three new hotels.The company which has interests in London is also looking at acquiring a travel company.

Tilko Managing Director Thilak T. Thilagaraj speaking to Daily News Business said with the increasing number of local and foreign travellers to Jaffna they bought two bungalows and converted them to hotels in Jaffna.

“The Park View Hotel offers 10 rooms while Fortway hotel has seven rooms and these are created mainly to accommodate budget travellers.”

He said in addition they would add 40 more rooms to Tilko Jaffna City Hotel this year. “We are also in the look out for a good operator to introduce a spa which will be a first for Jaffna. A karaoke bar is also on the cards which will also be another first for the region.”

The second expansion they plan is to their beach front property Charty Beach in Jaffna. “Here we are looking at adding ten more rooms.” Thilak said that he together with his wife, co-investor, Kohila, will also invest to convert the existing Katunayake Airport hotel to convert it to a city hotel. “We are planning to add another 20 rooms and a swimming pool and other facilities to elevate it to a three star status.”

“We also have a land in Balangoda and hope to build a ten roomed eco lodge there by end of the year.” Total investment for these investments will exceed Rs. 600 million. One of the biggest plans of the company this year it to create their own travel and tours arm and for this purpose they hope to acquire Experior Travels in Colombo 3.

“We have successfully negotiated to buy a 60% stake and willsign the agreement in February. We are pondering if we should re brand it.”

He said that they will then launch a mega overseas marketing campaign starting with the ITB World Travel Fair starting in Berlin in March.

Commenting on their London operations Kohila Thilagaraj said that they currently have 45 single, double and family styled apartments they rent out from a daily basis to long term basis. “This is very popular among tourists as well people who are working and trying to settle down in London.”

She said that they will buy six more apartments by the end of this year. “Through the new travel arm we will also market all these properties enabling even Sri Lankans to book before they travel to London.” (See also page v) 

 Cuban Ambassador to Sri Lanka Juana Elena Rodrigues invited the Sri Lankan business community to explore business opportunities in pharmaceutical, renewable energy, agro-food, tourism and real estate development and agriculture sectors in Cuba. Speaking at a seminar on ‘Bilateral Trade between Sri Lanka and Cuba’ organised by the National Chamber of Commerce of Sri Lanka she said as bi-lateral trade volumes between the two countries is currently below its potential level. The Cuban government is looking at possibilities of creating much needed trade and investment ties with Sri Lanka in a bid to take the bi-lateral trade activities to the next level.

 Cuba has established commercial relations with 160 major countries and Rodrigues expressed confidence that Sri Lanka will also become Cuba’s major trading partner in the near future. Sri Lanka and Cuba established diplomatic ties in 1959. Cuba is mostly recognised as a sugar producing country and famous for its Cuban cigars, and calypso music.

Sri Lanka imports from Cuba, sugar, nickel, fish, citrus fruits, tobacco products, medicinal products and coffee. Sri Lanka exports ceramicware, tea, coconut coir, apparel and clothing, precious and semi precious stones and leather goods to Cuba. The most important mineral resource is nickel. Cuba has significantly increased its market share of Caribbean tourism in the last decade; as a result of significant investment in tourism infrastructure. 

Fitch Ratings believes firm demand will absorb higher prices caused by the introduction of value added tax (VAT). The government introduced VAT of 15% on alcoholic beverage manufacturers on November 1, 2016.

We feel that the inelastic demand for refined alcohol and rising per capita income should allow companies,including Distilleries Company of Sri Lanka and Lion Brewery.Successive Sri Lankan governments have consistently used excise taxes as a tool to boost revenue to bridge budget deficits. Excise tax on alcohol constituted around 7% of government revenue in 2015. Alcohol consumption appears to be inelastic to higher taxes, but if this reverts we believe the government may hold back on further tax increases, especially with the importance of the sector’s contribution to government revenue.

The sector is also heavily regulated, with restrictions on advertising and limited issuance of new retail licences creating high entry barriers that benefit entrenched players like Distilleries Company and Lion Brewery. Fitch expects hard liquor’s share of the alcohol market to continue to rise in 2017. Taxes on a unit of pure alcohol of strong beer surpassed that of hard liquor after back-to-back tax increases in October and November 2015.

As a result, revenues of Distilleries the largest spirits maker,grew by 36% in 4QFY16 (three months ending March 2016), while gross revenue of Lion the largest beer maker contracted by 12%.

Spirit makers had previously been facing heightened competition from beer producers, given the competitive pricing on the basis of pure alcohol content, growing popularity of beer among the younger population and rapid urbanisation in post-war (post-2009) Sri Lanka.

Fitch expects Lion’s financial leverage to improve in FY18 (year ending 31 March 2018), benefitting from lower capex and normalised returns, bringing its leverage ratios below Fitch’s negative triggers, having weakened in FY17 due to the floods. 

Selacine Television Institute the only government advertising agency in Sri Lanka, celebrates its 35th anniversary on February 2, 2017.

Selacine Television Institute’s vision is to become the foremost organization in the advertising and promotions sphere through the creative communication of development and operational activities of State machinery and all business spheres.

Selacine Television Institute was established on February 2, 1982, for the purpose of recording progress work of accelerated Mahaweli Project. This was possible with the initiative taken by the then Secretary to Ministry of Plan Implementation, Dr. Wickrama Weerasuriya. The first Director of Selacine was G. H. K. Rathnasiri. Selacine was started as a video unit, comprise of five people including the director.

Over the years Selacine Television Institute has grown big and at present they have nearly 70 employees. Apart from the video unit, at present Selacine has diversified into different fields such as marketing section, graphics, media and production divisions.

Selacine has been mandated to carry out all the advertising related work such as Press, TV, Radio and Documentaries etc. by a gazette notification. Selacine in the only accredited Government Production House and advertising agency in the country.

Selacine is one of the major clients of ANCL with an average yearly turnover of Rs.200 million and operates under the guidance of Ministry of Parliamentary Reforms and Mass Media. The present Chairman of Selacine Television Institute, Thusitha Jayawardhana has initiated several new projects at Selacine. “We have setup an event management department to manage most of the Government events as well as private events. At the moment Selacine does CD, DVD printing, ID printing and web development,” Chairman Jayawardhana said.

“Another important division newly added is the IT Division with the support of NSB and Softlogic Finance. Selacine has embarked on ambitious projects to enhance the knowledge of Government officials by offering them a Tab and an E - Learning facilities at a nominal rate. This is to be launched very soon,” he said. “Very soon we are going to set up a printing unit that can cater to do digital printing work. For this unit we are going to invest Rs. 5 million. With the expansion of the Institution, our target for 2017 is to get a turnover of Rs.600 million,” he said.

“Our target is to increase the market share, using strategy to increase customer satisfaction and developing employees and leaders of the organization,” he added.

There is other IT related projects started by Selacine like LK Pages to collect data from all the Government and non governmental organizations, to have their own website.

Selacine’s mission is to actively contribute to Sri Lanka's economic social and political development and supplying and providing the best communication and other creative publicity services of State and private sector institutions, employing skilled, more creative personnel. More information could be obtained from www.selacine.lk or by emailing: info@selacine.lk

Toyota Lanka launched the Toyota Genuine Battery at Ceylon Motor Show on January 28. Exclusively engineered and individually designed for each Toyota model, this battery is able to withstand harsh conditions and requires little or no maintenance.

The Toyota Genuine Battery (TGB) is designed to harness optimal performance by catering to a vehicle’s specific requirements. Generic vehicle batteries available at present are designed to be compatible with many types of vehicles of varying requirements, and are therefore not tailored to a specific vehicle’s requirements, losing out on its capacity for power and efficiency.

Toyota engineers have equipped TGB with high quality calcium alloy-grids, segregated into several ‘sizes’ depending on the Toyota vehicle type. This allows the battery to function at peak performance, as it fits the exact specifications of the vehicle. The battery fights corrosion with a thick cast positive grid, stronger alloy components and double dip protection. It can also combat fluid loss and vibration, and enables superior cycling for optimal performance.

With the TGB, Toyota vehicle owners will receive free maintenance services, a two year warranty from the date of purchase, free monthly inspection by Toyota or authorized dealers and free of charge replacement and rectification of battery failure within the warranty period in the unlikely event of a manufacturing defect. The battery can be purchased from all island wide Toyota Lanka branches and authorized dealers.

At the launch, Toyota Lanka Priyantha Perera introduced the Toyota Genuine Battery to attendees, noting that their battery maintenance troubles were now over. “The typical car battery requires regular maintenance, and often doesn’t perform at optimum capacity as it hasn’t been designed for a particular vehicle,” he noted.

“With TGB the idea is to bring a superior quality product to our customers to yield the best performance from their Toyota.”

The launch was attended by Managing Director Shungo Yoshioka, Director and CEO Manohara Athukorala, General Manager Spare Parts, Lubricants and Car Care Priyantha Perera, and TGB Team Leader Anton Roshane.

Toyota Lanka is renowned for unparalleled after sales services across the island, even being recognized as the Best Sales Provider in the region by Toyota Tsusho Corporation in 2015. 

Saegis University Campus, Nugegoda, which is renowned for quality education and its affiliations with Prestigious International Universities in UK, Scotland and Australia announced a number of full-scholarships and up to 50% fee-reductions for students who enroll in their respective study programmes on or before February 21.

This offer from Saegis, which is a higher education Institute approved by the Ministry of Higher Education and UGC and accredited by several prestigious universities in the world, can be considered as one of the best scholarship schemes to be offered in the country at present. .

The CEO, Deputy Chairman and Vice Chancellor, Professor Samson Ekanayake stated that the scholarship program has been designed in line with the longstandingvision of the Chairman of Saegis Campus, one of the most popular educators in the country, Bandara Dissanayake, in providing affordable education to talented students right across the country.

Professor Ekanayake added “Getting a good education is the only way a young person can surmount social and economic barriers in this country and achieve his/her dream in life.”

He further explained “Students at Saegisdo not have to pay fees up-front. There are several options for payment in monthly and quarterly instalments. As several banks have come forward to provide long-term loans to students without asking for any tangible security, students can commence their studies even if they do not have any money. ”

Saegis University Campus currentlyaffiliated with highly-ranked, prestigious universities and institutions such as Heriot-Watt (UK), Deakin University (Australia) and SQA (Scottish Qualification Authority) whose qualification are well recognized all over the world.

A few more prestigious universities are due to commence affiliations with Saegis soon. These affiliations will offer opportunities for deserving students to have the choice of completing degrees in either Sri Lanka or overseas from someprestigious universities in UK, Australia, Singapore, Dubai and Malaysia.

The study abroad arm of Saegis campus consists of experts who can help students to find prestigious, suitable universities in several countries in the world. Enrolments and visa processing are done without charging any fee from students. Course and career counselling is available from experts in the respective fields.

Lanka Hospitals and the National Insurance Trust Fund (NITF) for the 7th consecutive year, entered into an affiliation offering government employees access to high quality private healthcare services at affordable costs.

All public sector employees are automatically entitled to NITF’s health insurance scheme titled Agrahara. The affiliation between the NITF and Lanka Hospitals will eventually make high expenditure private medical treatment like Heart bypass (CABG) and kidney surgery, hip and knee replacement surgeries more affordable to all public sector employees covered under this scheme.

Lanka Hospitals, in its 7th year into the affiliation with NITF, is the pioneer and the preferred hospital by Agrahara insurance policy holders in Sri Lanka.

Colombo equities demonstrated positive investor sentiment yesterday. The Benchmark Index, ASPI closed the day at 6,140.54 points, gaining 2.84 points or +0.05%.

Foreigners took the position of net buyers for the day, recording a net foreign inflow of LKR 6mn for the day. TJL.N recorded the highest turnover for the day of LKR39.7mn, followed by HHL.N (LKR29.2mn) and LLUB.N (LKR9.98mn).

The day saw turnover increase by 92.6% to LKR 554mn compared to the last trading day.

Manufacturing Sector managed to record the highest turnover of LKR67.36mn for the day, followed by Diversified Holdings Sector and Bank Finance and Insurance Sector with daily turnovers of LKR 48.96mn and LKR 32.11mn respectively. Year to date ASPI Performance stood at -1.4%, while Year to date Blue Chip Index decreased by 0.1%. Out of the 206 counters traded today, 59 companies declined while 56 companies closed higher. (SC Securities)

Sri Lanka’s foreign direct investment (FDI) dived 54% to US$ 450 million in 2016 year-on-year, as against US$ 970 million in the previous as inconsistent tax and economic policies weighs.

International Trade Minister Malik Samarawickreme stated the total FDI reached an extremely low level by any standard in 2016.

Noting that the existing policies have not managed to attract foreign investors and FDI into the country, the Minister said that Board of investment needs to promote investment and if necessary, regulations and rules need to be changed to attract investments.

The Central Bank of Sri Lanka (CBSL) has extended the time allocated to raise Amana Bank’s Core Capital to Rs 7.5 billion from January 1 to June 30 2017.

The Bank is required to increase the capital further to Rs 10 billion by January 1, 2018.

The Bank is currently in discussion with Islamic Corporation for The Development of the Private Sector (ICD) which is the Fund Manager of IB Growth Fund (Labuan) LLP-(IBGF) to seek participation in the proposed issue of shares.A Due Diligence on the Bank is to commence, by the Islamic Corporation for the development of the private sector, for such purpose. 

Dubai carrier Emirates said it has adjusted its crews for flights to the United States following President Donald Trump’s travel ban on people from seven predominantly Muslim countries.

The new president faced mass protests and global outrage over the controversial bar on travellers from Iraq, Syria, Iran, Libya, Somalia, Sudan and Yemen, as around 300 people were stopped or detained worldwide en route to the US.

“We have made the necessary adjustments to our crewing, to comply with the latest requirements,” a statement from Emirates said.

The carrier added that no staff member had yet been affected by the travel restrictions and stressed that all flights to the US were operating as scheduled.

(Gulf News)

Ceylon Tobacco Company said it will be closing its leaf depots in Anuradhapura and Sigiriya.

In December 2016 the company announced that it was considering the closure of four leaf depots, due to the sharp drop in demand for tobacco leaf as a result of declining volumes.

In the first phase CTC will wind down operations in Anuradhapura and Sigiriya starting with the closure of the two leaf depots. Shutting down the two depots is estimated to impact the livelihoods of around 2,000 persons depending on tobacco farming, who stand to lose close to Rs. 200 million in annual income.

“The excise and VAT hikes in October and November last year, led to a 43% price increase in legally manufactured cigarettes and had an impact on our business and manufacturing operations in Sri Lanka. We have, on several occasions, highlighted that any impact on our business will have a ripple effect on the livelihoods supported across our value chain. It is unfortunate that policy makers ignored these facts when increasing taxes on the legal tobacco industry and we are now seeing the unintentional results of such actions,” CTC Managing Director and Chief Executive Officer Michael Koest said. The company also underwent a 20% head count reduction at the start of 2017 as a result of reducing one shift at its Colombo factory.

The increase in retail price of cigarettes and the resultant decline in volumes has jeopardized the sustainability of a business that has been legally operating in Sri Lanka for over a hundred years. This could spell disaster to the livelihoods supported across the company’s value chain. Currently CTC directly and indirectly employs over 46,000 persons and supports around 300,000 livelihoods at various stages of our operations from farming tobacco to the distribution and sale of its products.

“We source all our tobacco leaf locally from over 20,000 farmers and infuse around Rs. 2 billion to the rural economy annually through our farming activities alone. We partner with these farmers and guarantee the purchase of their full crop at a pre-agreed competitive price. No other farming community in Sri Lanka enjoy the amenities and support that our farmers have enjoyed for decades. We are concerned that the impacts faced by our business will have far reaching impacts on the local communities and rural economies dependent on the legal tobacco industry,” Koest said.

The International Monetary Fund (IMF) program has been successful in helping Sri Lanka to sort out its fiscal problems, but the program has not been successful in getting the country into a more stable position of the external front, Institute of Policy Studies Deputy Director Dr. Dushni Weerakoon said.

Weerakoon said Sri Lanka has very thin policy levers with regard to exchange rate management.

Sri Lanka is exposed to any kind of external shocks with four months of import cover and the country needs an urgent injection of foreign capital.

The potential for external shocks has also increased with the global political situation and sudden spike in oil prices, Weerakoon noted.

“The IMF program in Sri Lanka is more of a stabilisation program which looks at fiscal targets and inflation targets to rebalance the macro economic stability.”

“In terms of medium term macro framework, it is very clear that growth is expected to remain stagnant at 5% during the 2016 to 2020 period .”

She also emphasized that Sri Lanka needs to adopt broad-based economic reforms to restart economic growth; Otherwise, Sri Lanka may have an extended period of low growth in a low inflationary environment.

Grand Hyatt Colombo to be ready by March 2018

 The Sri Lanka Insurance Corporation (SLI) has tied up with Gulf Insurance and Reinsurance Company (GIRI) in Kuwait to offer a comprehensive insurance cover for Sri Lankans employed in the Middle East. Joint Managing Director T. M. R. Bangsa Jayah SLI told the Daily News Business that they are already launching this scheme in Kuwait with GIRI. “It is very successful and we have very positive comments from it.”

He said soon they will be entering the UAE and Saudi Arabian market and the whole of the Middle East would follow. He said that the biggest advantage in this scheme is that the Sri Lanka employee does not have to pay for this insurance.

“When a house maid is being requested from the Gulf, the Employer has to pay for the insurance.The SLI gets a commission and this will further help our bottom line.”

He said that in addition in case of an emergency GITI also pays for litigation and the Sri Lanka employee will get paid in the Gulf itself.

It is estimated that there are over one million Sri Lankan migrant workers employed in the Gulf. Sri Lanka’s expatriate workers, mainly housemaids and unskilled labourers,send back around $7 billion annually.

Asked to comment the Hyatt Hotel he said that it would be ready by 2018 March. “It will have 556 keys including apartments and would consist of 44 floors.” The Brand value of Hyatt will be Rs. 21 billion.

Grand Hyatt Colombo is a project undertaken by Canwill Holdings and is owned by Sri Lanka Insurance Corporation (SLIC), Employees’ Provident Fund (EPF) and Litro Gas Lanka (which is also a subsidiary of SLIC). SLIC has a successful track record of investing in hotels both public and privately held. These include SLIC’s investment in Club Robinson (now known as Club Bentota) which SLIC exited in 2002.

EPF has also turned positive on the tourism sector, and has invested into many hotels. Other projects it has invested in recently include Marriott Weligama.

Hyatt Hotels Corporation is a leading American hospitality company and manages hotels under several brands/categories. ‘Grand Hyatt’ is the flagship brand reserved for large properties in major cities and major holiday destinations 

The 8th consecutive Jaffna International Trade Fair (JITF 2017), the largest Consumer Exhibition concluded at Jaffna last week, ended with a record of over 300 stalls.

One of the highlights of the event was the presence of a special 75 member delegation from India to explore the trade and investment opportunities. This delegation was sponsored and hosted by ASSOCHAM of India (The Associated Chamber of Commerce in India) with a member base of over 475,000.

“The Northern Province has been a fast growing province among all provinces. For example in 2011-2012 Northern Province GDP growth was a huge 26%. In 2012-2013 it was 12.1%. In the latest 2014-2015 data the highest provincial GDP growth reported equally by two provinces and I am pleased to say that the Northern Province is one of these two leading “GDP growth provinces”, at 12.1% YoY growth,” said Minister of Industry and Commerce Rishad Bathiudeen.

Chamber of Commerce and Industry of India (ASSOCHAM), Vinay R Sharma addressing the event stressed the entry of his Chamber to Sri Lanka in a pioneering initiative. “This is the first time ASSOCHAM is entering Sri Lanka in this way and we are here to partner with Sri Lankan businesses in joint ventures, partnerships and even new business openings in many sectors including automotives and textiles” said Sharma.

Founder Chairman of Jaffna International Trade Fair, Kosala Wickramanayake reminisced of the humble beginnings of LECS: “JITF was launched in 2010 in Jaffna with less than 50 stalls and amidst many obstacles –such as the inability to easily enter the peninsula from Colombo as a result of lack of access through A9 Highway,” said Wickramanayake.

Consul General of India in Jaffna Shri. A. Natarajan hinted of the need for drawing more FDI to North. “An aluminium production facility has been commenced in the North successfully. Still, this is not enough. Jaffna has much more potential to grow and Indian investors from ASSOCHAM are here to support so that the country’s production and exports would grow further.”

National Chamber of Exports (NCE) CEO, Shiham Marikar said that NCE has been regularly participating at the JITF during last four years. “We support the objective of this event - bringing economic prosperity to the people in the North.”

He said that the NCE endorses the JITF because the event as it provides us the opportunity to further develop business linkages between member exporters of the Chamber and Producers in the North.

“The event also provides the platform to meet business partners, and investors, establishment of linkages with the different state institutions and policy makers for business development at a time when Sri Lanka is focusing policy and political approaches to promote reconciliation and opportunities for private investments in the region.”

“This year members of the chamber have taken 10 stalls and they are exhibiting at the event.”

The Marina Bolgoda arranged an all island tour for a group of enterprising Sri Lankans who boldly decided to take on the seas of the wonder of Asia.

The journey started from The Marina Bolgoda where the boats (The Chapparal, Seadoo Jet Boat and personal water-crafts) were docked.

The Marina Bolgoda is an exclusive lifestyle club and a first in Sri Lanka designed to cater to an elite clientele spread across a stretch of picturesque land overlooking the aesthetically beautiful Bolgoda Lake. Situated in Bolgoda and centrally located on the South West of Sri Lanka, within an hour from Colombo, the Boat Club's location offers incredible water sports and boating options, within easy reach.

The Marina offers club memberships for people who are looking to step aboard and enjoy exciting new memories on the water or a place to sit back enjoy some hard earned relaxation and luxuriate in tranquillity. All while the dedicated boat club team maintains members water-crafts to the highest standard, deploying and re-racking water-crafts on demand and taking the hassle out of boating by enabling members to enjoy unlimited stress free access seven days a week to their fleet of water-crafts and boats.

The Marina offers a range of other services and amenities for guests to enjoy along with a business/conference center equipped with state of the art facilities and a contemporary restaurant that serves exquisite cuisine prepared by expert chefs ,fully decorated in style surrounded by friendly staff in a private environment.

The sea journey was carried out using a Chapparal boat fitted with bombardier jet engines that are maintained by Debug Auto Exclusive Pvt Ltd, the sole agent in Sri Lanka for Sea-Doo personal water-crafts.

The journey from Bolgoda (Panadura) to Hambantota, Olivil Harbour, Trinco, KKS, Kalpitiya, Panadura and back to base at Bolgoda was a great feat to watch. The journey with an experienced and adventurous team on board lasted 7-8 hours daily,navigated by a founder member of The Marina at the helm of the wheel.

The Marina has fully equipped meeting rooms for all your needs and functions, surrounded by a multitude of endless activities and benefits to offer and has been designed with maximum attention to details keeping the guests' well-being in mind to create memories that last forever.

S&T Interiors announced today that it has successfully completed the turnkey interior project for the Mövenpick Hotel, Colombo. S&T Interiors is a subsidiary of S&T Interiors and Contracting, a global leading turnkey contracting company with operations in 10 countries across Europe, Middle East and Asia.

S&T has left an indelible mark of creating high-class interior finishes by blending international expertise with local craftsmanship. The scope of works included turnkey interior fit-outs for Mövenpick’s 218 guest rooms including the presidential suite and public areas comprising of three restaurants, seven lounges/ bars, roof top, gym & spa and banquet areas.

Launch of the Mövenpick Hotel is a historic moment in hospitality sector in the country as it is the first five star international brand to be built in the last 25 years in Sri Lanka. Mövenpick Hotel is Softlogic’s first ever city hotel in Sri Lanka and S&T was exclusively awarded the interiors contract for the project. Mövenpick Hotel is S&T’s debut project in Colombo.

K. S. Ravikumar, Executive Director – International Operations at S&T Interiors and Contracting, said, “We are pleased to announce the successful completion of Sri Lanka’s international five star hotel Mövenpick which heralds a new era for hospitality in the country. We are privileged to have been part of this project delivering it to world-class standards. This project is a vital addition to our global portfolio.”

“This was a great collaborative effort by a truly international team and a fruitful partnership with the Hayleys Group. The project has set new benchmarks for interior finishes in the industry,” commented Ravikumar.

Johann Wijesinghe, Hayleys Group Management Committee/ Director, S&T Interiors said, “We are proud to have partnered with S&T and successfully completed this project.

S&T brings international capabilities to the interior fit-out industry in Sri Lanka that caters to high standards hotel developers seek while working with international brands.” 

Asiri Cake and Catering Deniyaya have diversified to the leisure sector and will soon float the Asiri Eco Hotels chain.

Asiri Cake and Catering Deniyaya Chairman Rohan Indika Wijesinghe they have already invested around Rs. 80 million for their first hotel, Sinharaja Green Eco Lodge in Deniyaya bordering the Sinharaja Rain Forest.

He said that they acquired a colonial planter’s bungalow and refurbished it to house the Sinharaja Green Eco Lodge. “We opened the hotel last September”. He said they will open a similar hotel in Nuwara Eliya with eight rooms in 2018. “We are currently negotiating this deal.”

The next property will be in the South for which we are looking for a property. “Our plan is to build 20 rooms.”

He said that they will also launch an aggressive marketing campaign both locally and internationally from next year and will also invite travel agents to visit their properties.

He said the Sinharaja Green Eco Lodge now offers the spacious large rooms with attached bathrooms which can accommodate ten guests. “In addition we have also built two elevated cabanas to accommodate honeymoon couples and people who prefer separate living.” Each room has cable TV, hot and cold water and many other facilities. “We will invest a further Rs. 25 million to add more rooms, restaurant and a swimming pool by the end of this year.”

The lodge is also equipped with a large terrace with a spectacular view of the rain forest. The hotel also offers several excursions to the Sinharaja forest, mountains, tea factories, waterfalls and other places for nature lovers.

One of the biggest attractions is the 3 k.m. ride up to the rain forest in a special safari jeep provided by the hotel. “We also have a car park for guest’s vehicles”

Hotel Manager Prasanna Manjula said that they offer a 24 hour check in and checkout basis for accommodation. “We also provide meals or guests could also bring in their food so that we could provide a cook. 

Eastern Provincial Councilor A.L.Thavam has made necessary arrangements to beautify the Meera Odai ferry at Akkaraipattu, as health resorts to attract the local and foreign tourists.

This arrangement has been made in the larger interest of the Tourists who have accustomed to this area with ferry breeze and beautiful scenery around.

The Meera Odai ferry of Akkaraipattu is thronged with crowds of people daily.

The main aim of this is to attract the foreign and local tourists to Akkaraiapattu Meera Odai ferry and beach shore sources said. Cement cabanas and electricity have been established for the convenience and use of sight viewers.

The audience Hall has also been completed to be used for meetings and conferences.

Provision for the maintenance of the ferry are some of the proposals to be implemented.

Nawaloka Neuro Centre upholds the lofty ideal of reaching the best of Neuro healthcare in Sri Lanaka, ably assisted by the latest technology, equipment and a team of talented Neurologists, Neurosurgeons and support medical staff.

Equipped with the latest Neuro-imaging, Neuro-Radiology services and Neuro Intensive care facilities, Nawaloka Neuro centre provides comprehensive and compassionate care for a number of neurological diseases including stroke, headache, epilepsy, tumors, neuropathies, multiple sclerosis, traumatic brain injuries, brain tumours, neuro vascular disorders, spinal injuries, spinal tumours peripheral nerve disorders as well as treatment for migraine. Neurosurgery, a branch of surgery involved with the brain, spine and nerves, is a key specialty at Nawaloka Hospitals.

Dr Punsith Gunawardena,  Consultant Neurosurgeon, Nawaloka Hospitals.

“Today, Neuro anaesthesia, Neurosurgical intensive care and Neuro-imaging technology have advanced so much that mortality rates have significantly reduced and functional outcomes have improved tremendously. Minimally invasive techniques help decrease the mortality and morbidity associated with surgery.

At Nawaloka Neuro Centre we make use of the latest technological advancements and medical breakthroughs to provide our patients with care that matches those of leading hospitals worldwide,” commented Dr Punsith Gunawardena, Consultant Neurosurgeon, Nawaloka Hospitals.

Dr Gunewardene went on to note that while breakthrough surgeries were performed at the unit, after-care by a specialized team of professionals is yet another strong point of the centre.

“Our capability has always attracted the best Consultant doctors, talented nurses and medical professionals,” said Harshith Dharmadasa, Director, Nawaloka Hospitals. “The Neuro Centre is a focal point of co-ordination that brings under one umbrella all the capabilities, expertise and technical aspects, for better efficiency.

When patients develop a major neurological disorder or illness, they are obviously anxious and scared and they want help quickly and smoothly with minimum stress to the patient,”

“The Neuro Centre at the Nawaloka Hospital augments the quality of care and gives the patients a sense of security and confidence that they are at the right place,” added Dharmadasa, who went on to say that Nawaloka Hospital will continue to provide the compassionate and comprehensive care that the Sri Lankan community deserve.”

Future Mobility, an electric car company jointly invested by Tencent and Foxconn and run by foreigners in China, plans to invest CNY11.64 billion, which is about USD1.7 billion, to build a plant in Nanjing.

The nascent technology company aims to seize opportunities brought by the growing demand for electric cars in China and other countries.

On the completion of this new plant, its final production capacity will reach 300,000 vehicles per year. Future Mobility did not reveal when they can realize this production capacity; however, the company said that the first-phase project will be completed in 2019 and its annual production capacity will reach 150,000 vehicles by then.

Future Mobility said based on the plans of the company, their first product made in the Nanjing plant will be a pure electric medium-sized smart SUV, which will be sold worldwide.

A spokesperson from Future Mobility revealed to local media that this smart SUV may be priced at about CNY300,000 and it is expected to put into the Chinese market in 2019.

The company only officially started in March 2016. The company is different from other Chinese EV start-ups in that its chiefs are foreigners working in China: Dr. Carsten Breitfeld, a former BWM executive is the CEO, and Dr. Daniel Kirchert, a ex-Infiniti China executive is the chief operating officer.

(China Tech News)

 The U.S. economy grew at an annual rate of 1.6% in 2016, the Commerce Department reported Friday.

In the last three months of the year -- between October and December -- the economy grew at an annual rate of 1.9%. It’s the slowest pace of growth since 2011. It reflects how slow the recovery has been for many Americans since the Great Recession, which ended in 2009.

Weak economic growth was a key reason behind President Trump’s election. He promises to get growth up to 4% a year, something that hasn’t happened since the late 1990s.

Trump’s agenda to cut corporate and individual taxes, build more roads and bridges and cut away regulations have some optimistic that he can boost growth -- how much, is anyone’s guess. (CNN) 

Sri Lanka’s Premier Footwear and Leather Fair organised by the Sri Lanka Footwear and Leather Products Manufacturers Association in collaboration with the Ministry of Industry and Commerce, Industrial Development Board and the Export Development Board, will be held on February 3-5, 2017 from 10 am to 9 pm daily at the Sirimavo Bandaranaika Memorial Exhibition Centre BMICH.

This will be the 9th edition of the fair which commenced in 2007. Prime Minister Ranil Wickremasinghe will be the Chief Guest of the fair this year.

The prime objective of the fair was to promote Sri Lankan products locally as well as internationally and the organisers of the view that they have almost achieved this objective.

All the leading producers and exporters of footwear and leather products will be participating at the fair this year. Apart from the local producers the leading foreign suppliers of raw material, machinery , components accessories will participate at this fair. Already 32 foreign suppliers have confirmed their participation in this year’s fair.

The fair will have about 225 stalls, displaying and selling latest designs of export quality footwear and leather products at very attractive prices.

A design award ceremony has been organized to encourage upcoming designers and a best stall competition has been organized to encourage the exhibitors to design their stalls in a more professional manner. 

The National Chamber of Commerce of Sri Lanka will conduct a session on “Bilateral Trade between Sri Lanka and Cuba on January 31, from 3 p.m. to 4.30 p.m at the Chamber Auditorium Colombo 10.

Special guest speaker of the event Ambassador of Cuba to Sri Lanka and Maldives Juana Elana Ramos Rodrigues will speak on current business trend, trade potential, Opportunities for Export, Import, investment and other services available in Cuba.

Sri Lanka and Cuba enjoys diplomatic relations for around 57 years and Cuba was one of the first countries to establish diplomatic ties with Sri Lanka consequent to the country gaining independence.

The participants will have an opportunity to meet the ambassador and embassy officials to clarify issues in doing business in Cuba. 

Fitch Ratings has affirmed SriLankan Airlines Limited’s (SLA) US dollar-denominated government guaranteed bonds at ‘B+’.

The airline’s bonds are rated at the same level as SLA’s parent, the government of Sri Lanka (GoSL; B+/Negative) due to the unconditional and irrevocable guarantee provided by the government. GoSL held 99.5% of SLA as at end-2016 through direct and indirect holdings.

Fitch has rated SLA’s US dollar-denominated bonds at the same level as the sovereign due to the unconditional and irrevocable guarantee provided by the government. The rating is not derived from its issuer’s standalone credit profile and thus is not comparable to its industry peers. 

Sri Lanka must adjust its development model and economic growth which will require continued structural changes for greater diversification and productivity increases and a reduction in the role of agricultural employment, National Chamber of Commerce (NCCSL) President, Sujeewa Samaraweera said.

He said Sri Lanka needs to distribute the benefits of the country’s growth to all citizens and increase female labour participation through education for the country to transit to a more robust , competitive and globally integrated economy.

Shortages of skilled labour continue to be a hindrance across many businesses in manufacturing and services in Sri Lanka.The National Chamber statistics demonstrate that there is a shortfall of 15% to 20% in all the industries. In the recent past the government paid considerable attention to the matter and it is essential that Sri Lankan government continues to focus on policies forming the much required skilled workforce for industries.

Samaraweera said it is vital for Sri Lanka to have policies aligned to increase skilled labour availability and to get these skilled labour employed on export related industries is important. 

Senior officials from the U.S. Millennium Challenge Corporation (MCC) visited Sri Lanka on January 23 to 26 to discuss joint efforts to fight poverty and promote economic opportunity for all Sri Lankans.

In December 2016, MCC selected Sri Lanka as eligible for an MCC compact five-year development grant linked to sustained reforms that can spur growth and alleviate poverty. During this visit, MCC representatives met with Sri Lankan government officials as well as representatives of industry and civil society to hear their views and explain the MCC process in detail.

Top Economic Thinkers Brief the MCC Team and Ambassador Keshap on Ways to Boost Economic Prosperity.

“Sri Lanka’s selection for an MCC compact is a testament to the progress the country has made in strengthening democratic governance and economic freedom,” said U.S. Ambassador to Sri Lanka Atul Keshap. MCC projects rely on locally-driven solutions to help increase prosperity. Countries are selected based upon rigorous standards for good governance, anti-corruption and anti-trafficking efforts, and respect for human rights. MCC officials discussed Sri Lanka’s economic priorities with Prime Minister Ranil Wickremesinghe and other high-level government officials. The delegation also toured Cargills and MAS Holdings factories in Kilinochchi to learn how investments there have created jobs and educational opportunities in some of Sri Lanka’s most economically-challenged areas.

“This is an important moment for Sri Lanka and the MCC. We look forward to working together to unlock future growth and improve the lives of Sri Lankans,” said Fatema Sumar, MCC’s Regional Deputy Vice President for Compact Operations.