business Sri Lanka

 A married man dejected over the break up of his illicit love affair with another woman has committed suicide inside the portico of the mistress' residence in the wee hours of yesterday, a report from Eduwa, Palatuwa said. He was identified as Nandana (52), a father of two. 

Health Minister Dr. Rajitha Senaratne has instructed Health Services Acting Director General Dr. Jayasundara Bandara to conduct investigations on all hospital authorities who do not implement approved transfers of nurses, Health ministry spokesman said.

Minister Dr. Senaratne gave the order during the Provincial Health Ministers’ Summit held in Colombo recently when the Provincial Health Ministers informed him that approved transfers of nurses are not being implemented by the hospital directors and authorities.

The hospital directors should submit a full report to the Health Ministry on the way they implemented transfers. All approved transfers should be implemented on or before May 1. Minister Senaratne instructed authorities to obtain the proposals and ideas of trade unions in this regard, he said.

Health Ministry Secretary Anura Jayawickrama, Health Services Acting Director General Dr. Jayasundara Bandara, Provincial Health Ministers and many others were present.

Today, the first day of May is the workers' day. The day is fully assigned and promoted by International Labour Movement for workers to get together as co-workers. Some countries have declared this a holiday, making it possible for workers to come together to peruse the achievements they have gained and critically view their weak points.

How about our country? Can we claim to be fair by the workers? Do we really appreciate their labour?

Ours is a sad experience. We speak high of a day for workers, though with the passage of time it has turned into a battlefield of divergent political parties. These parties get on to roads to test and show their strength over the rest.

When will the day dawn when labour get together to celebrate themselves in the spirit of the brotherhood giving meaning to this much sacred Workers’ Day? It is sad that the politicians have manipulated this day to be the day of the political parties. The politicians and the political parties are using the day to test popularity.

The political parties which have lost their heads, and twisted the meaning of the Workers Day, show keenness in counting heads attending the rallies organised by the respective political party. This is not to talk about workers but to claim that one political party is more popular than the rest.

Spirit of brotherhood

Ironically it is the day of the workers. It's the workers who should rally round in the spirit of brotherhood. They, as workers, must celebrate the day, share their experience, exchange views and make reflections of the year gone-by and evaluate their achievements, their failures, their contribution to the progress of the country, to their personal lives and family lives, irrespective of all political, religious or ethnicity and class distinctions.

On the contrary, the workers have been put into cages, compartmentalized and given a political colour.

Work is more than a way to make a living. If dignity of labour is to be protected, then the basic rights of workers must be respected. What are they? They include the right to productive work, to decent and fair wages, to the organisation and joining of unions, to private property, and to economic initiative.

If the May Day is the Workers’ Day, as we claim, then politics and politicians, of all rank and file, should be out.

There was no politics or politicians involved when the workers in their large numbers went on parade demanding eight hour work day, in Chicago, close to a century and a half years ago. It was a just demand of the labour to treat them as human beings not as animals. They are not slaves but men with human dignity.

We do not read that E A Gunasinghe's movement in 1927 was politically motivated. Later on politicians saw it as the playing field, a ground to play dirty politics, and grab power. With politics getting involved, the May Day lost its meaning and turned out to be a game benefitting the power-crazy politicians.

Worse still, the labourers have failed to realize that dirty politics have trespassed their sacred field. What they do not realise is that politicians have no love and concern to the labour force or the working class. They are all set up simply to showcase the strength of political mileage.

The politics have spoiled, given a twist to this turn of events. Plus, the workers are partly to blame.

In a statement issued on February 14, the Workers’ World Party claimed that time is up for a global general strike to raise the concern over the oppression of workers, make demand that world respect rights of workers, speak on behalf of the workers earning low wages, and to demand for a minimum global wage.

Demand for just wage

They also want to draw attention to the issues such as racism, white supremacy, neofascism, Islamophobia, attacks on immigrants, attacks on women and LGBT people, and a drive toward imperialist war. What’s more, the May Day global strike must be against the whole system of capitalism, imperialism and socialism. Forging a united front among the most militant and revolutionary forces can help this happen.

What we see is that the area is getting larger and larger while maintaining the first demand for dignity of labour, treat them as human beings and demand for just wage.

Coming into our own soil, we see there is a drift from the original political play, divide and rule. It is a blessing to witness how the two major political parties lived this long. The country is run on the concept of Yahapalayana, which is enriched by the teachings of great religions, especially Buddhism.

This ‘Good Governance Government’ concept emerged as a result of the resolution adopted in 2006 by the General Assembly. It was introduced by the then Secretary General of the United Nations Organisation, Kofi Annan, with a view to help the developing nations, reduce corruption, bureaucracy and extreme poverty. The concept was also meant to encourage them to work for economic development. Yahapalayana Government is true to its commitment to the Good Governance Government concept.

This day was chosen to be celebrated as International Workers’ Day or Labour Day by Second International, a pan-national organisation of socialist and communist political parties to mark the Haymarket affair which had occurred in Chicago on May 4, 1886.

In 1904, the International Sociologist conference in Amsterdam, the Sixth Conference of the Second International, called on “all Social Democratic Party Organizations and Trade Unions of all countries to demonstrate energetically on the First of May for the legal establishment of the 8-hour day, for the class demands of the proletariat, and for universal peace”.

The Workers Day, or May Day as we prefer to refer, has its beginning at the National Convention held in Chicago in the 1884, organised by the Federation of Trades and Labour Unions, which was later referred to as “America Federation of Labour”.

The allegation was that America, one of the best industrialist countries in the world, the workers were forced to work 16 hours a day. They were treated as slaves not as human beings with dignity. The United as one Work Force, they decided to stage a protest, stop work demanding that eight-hour-day-work be adopted they went on strike on May 1, 1886.

On the day the world marked Centenary of the French Revolution, in 1889, the resolution was adopted to celebrate May 1 as Workers Day and the World began celebrating Workers on May 1, 1890.

Sri Lanka celebrated Workers Day for the first time in 1935. In 1956, the May Day was declared a holiday. 

 The TangalleYayawatta new town development scheme has come to a standstill and proved to be a white elephant by now.

TheYayawatta was to be converted to the next developed town in Tangalle DS area and a shopping complex was setup to be rented out to the business community in the area. At the initial stage, several retail outlets were opened at the shopping complex.They remain closed due to lack of customers.

The location is now haunted by thugs and night stalkers.

The complex was set up in 2008 under the Southern Region Rural Economic Development Programme.

 Three men involved in jewellery thefts were arrested by Negombo police on Friday.

They had stolen items of jewellery by breaking a three wheeler front compartment when the vehicle was parked on the Negombo beach near the Negombo Prison.

The suspect had given the stolen jewellery to another to pawn them at a bank and obtain money.

They are residents of Chilaw and Katan. The pawned jewellery items were recovered from a bank by police.

The suspects were remanded until May 12 after being produced before the Negombo Chief Magistrate Ruchira Weliwatta.

Negombo Police are investigating.

World Press Freedom Day will be celebrated on Wednesday. It is observed annually on May 3 to inform the international community that freedom of the press and freedom of expression are fundamental human rights. This day reminds people that many journalists brave death or face jail to bring daily news to the public.

Advanced preparations for this year’s global celebrations have been planned for a multi-faceted focus on journalists’ safety and impunity for crimes committed against them in Jakarta, Indonesia. The 2017 Theme is: ‘Critical Minds for Critical Times: Media’s role in advancing peaceful, just and inclusive societies.’

Against this background, the World Press Freedom Day highlights the links between press freedom, a culture of openness and the right to freedom of information, and sustainable development in the digital age. The common thread in all these is the role of journalism, and the importance of safeguarding those who bring this service to the public. It also gives people the chance to pay tribute to media professionals who risked or lost their lives in the line of duty. Several communities, organisations and individuals take part in this day through various events such as awards nights to honour those courageous journalists who brave all kinds of storms to bring you the news.

The importance of a free press

World Press Freedom Day was established by the General Assembly of the United Nations in December 1993 as an outgrowth of the ‘Seminar on Promoting an Independent and Pluralistic African Press’. This seminar took place in Namibia in 1991 and led to the adoption of the Windhoek Declaration on Promoting Independent and Pluralistic Media.

The Windhoek Declaration called to establish, maintain and foster an independent, pluralistic and free press. It emphasized the importance of a free press for developing and maintaining democracy in a nation, and for economic development.

Although World Press Freedom Day has only been celebrated since 1993, it has much deeper roots in the United Nations. Article 19 of the 1948 Universal Declaration on Human Rights states that everyone “has the right to freedom of opinion and expression. This right includes freedom to hold opinions without interference and to seek, receive and impart information and ideas through any media and regardless of frontiers.”

Each year since 1997, the UNESCO/Guillermo Cano World Press Freedom Prize is awarded to honour the work of an individual or an organization defending or promoting freedom of expression, especially if it puts the individual’s life at risk.

The award is named in honour of Guillermo Cano Isaza, a Coumbian journalist who was assassinated outside the office of his newspaper ‘El Espectador’ in Bogota on December 17, 1986. Cano’s writings had offended Colombia’s powerful drug barons.

The award ceremony is held at the National Press Club in Washington DC.

UNESCO is also encouraging all those who are celebrating World Press Freedom Day to observe a minute of silence in memory of the journalists who have given their lives for our right to be informed.

It is a day of action to encourage and develop initiatives in favour of the freedom of the press:

*A day to assess the state of press freedom worldwide.

*It is a day to remind governments to respect their commitments to press freedom;

*A day to alert the public and to increase awareness of the importance of freedom of the press;

*A day of reflection to encourage debate among media professionals on the issues of press freedom and professional ethics;

*A day of remembrance for journalists who have lost their lives in the exercise of their profession; and

*A day of support for media which fall victim to any measures which restrain, or seek to abolish, freedom of the press.

Transparency and good governance

Freedom of the press is the freedom of communication and expression through vehicles including various electronic media and published materials. While such freedom mostly implies the absence of interference from an overreaching state, its preservation may be sought through constitutional or other legal protections.

With respect to governmental information, any government may distinguish which materials are public or protected from disclosure to the public based on classification of information as sensitive, classified or secret and being otherwise protected from disclosure due to relevance of the information to protecting the national interest.

Many governments are also subject to ‘Sunshine Laws’ or freedom of information legislation that are used to define the ambit of national interest. Press freedom is considered to be a cornerstone of human rights and a guarantee of other freedoms. It encourages transparency and good governance and it ensures that society enjoys the rule of true justice.

Freedom of the press is a bridge of understanding and knowledge. It is essential for the exchange of ideas between nations and cultures which is a condition for true understanding and lasting cooperation. Information freely gathered and freely reported is the enemy of despots, dictators and criminal cartels.

For democracies, it would seem just as obvious that a free and unfettered flow of information is the lifeblood of systems that depend on an informed citizenry to make the ultimate governing decisions.

Newly created global news outlets on the Web, widely used social media, and so-called ‘data dumps’ by groups like WikiLeaks do raise legitimate issues ranging from personal privacy, credibility to national security. Serious critics of the press, here and abroad, are right to point to errors of fact and judgment by journalists.

But on at least one day, we all ought to pause to appreciate the value - and for far too few, the unique national asset - that is a free press.

History is replete with individuals willing to risk their lives and liberty for the freedom to speak out. Indeed as far back as 399 BC the Athenians executed a courageous thinker who was committed only to the truth.

But not before the accused Socrates spoke out fearlessly to a jury at his trial: “If you offered to let me off this time on condition I am not any longer to speak my mind... I should say to you, Men of Athens, I shall obey the Gods rather than you.” 

Learning how to regulate your breathing could be the cure for hypertension if it’s caught early enough, a new study claims.

Scientists say the neurons which control your breathing also control your blood pressure and, therefore, breathing deeply can help lower your levels.

Hypertension, or abnormally high blood pressure, has been labeled a risk factor for cardiovascular disease, diabetes and stroke.

High blood pressure runs rampant in the US, with one in every three adults showing elevated levels.

Because of this, researchers say it is vital that effort is placed into identifying people at risk early before it’s too late.

Breathing and blood pressure are functionally linked through the sympathetic nervous system, which sends signals to the heart and blood vessels.

Researchers at the University of Melbourne and Macquarie University, in Australia, discovered that when neural activity was interrupted in young adults, they could control blood pressure.

The altered neural activity leads to increased fluctuations in blood pressure with every breath taken.

‘By interrupting the activity between these two groups of neurons during adolescence, we were able to dramatically reduce development of high blood pressure in adulthood,’ said lead researcher Professor Andrew Allen of the University of Melbourne.

Professor Allen added that the research paralleled what professional athletes and eastern philosophies have long understood about the link between breathing and heart rate.

‘Biathletes have to regulate their breathing to slow down their heart rate before rifle shooting, and eastern meditative practices such as yoga and pranayama have always emphasized the interaction between the two,’ he said.

Lauren Hanna, founder and director of Sonic Yoga in New York, says that learning to slow down breathing awakens the sympathetic nervous system and releases positive hormones throughout the body.

‘Your blood pressure goes down, it increases cardiovascular capacity, and essentially you’re extending your life,’ she said.

Research has shown that breathing deeply and slowly encourages the body to intake its full oxygen quota.

‘Our body runs on oxygen, oxygen is its fuel,’ Hanna explained.

‘So when we get more oxygen, it gives our body energy, purifies our organs, we think better and function better.’

Deep breathing can also send oxygen into the blood vessels which improves blood flow, decreasing peripheral resistance (resistance of the arteries to blood flow) as well as regulating heart rate - both of which reduce blood pressure.

The researchers say, however, that any intervention should be done early while the nervous system is still plastic, which is during adolescence.

In adulthood, the interaction between these neural circuits becomes fixed and any reductions in blood pressure from breathing adjustments appear to be temporary.

They add that this emphasizes the need to identify people at risk of developing high blood pressure early - especially because many don’t show any symptoms before a diagnosis.

‘By understanding what predictors of hypertension are easy to assess, we might be better placed to offer early treatment to pre-hypertensive patients,’ Professor Allen said.

-Daily Mail

John Sandford is the author of the Prey series, the latest of

which is Golden Prey, available now from G.P. Putnam’s Sons.

What was the first book you fell in love with?

The first book I fell in love with was probably The Once and Future King by T.H. White. I would have been about 14 or 15 when I read it, and found it terribly heroic and romantic and tragic, everything a young teenager needs in a novel. I didn’t actually own the book, but borrowed it and re-borrowed it from the public library, on the recommendation of a library lady who looked out for me.

What classic do you feel guilty about never having read?

A classic I feel guilty for not having read… A la recherché du temps perdu, by Marcel Proust. A college literature teacher told me that I absolutely must read it, if I weren’t to be a literary idiot. He said the best way to do it was to find a hammock, and spend a summer reading it for an hour or two at a time. I honest to God haven’t had time to swing in a hammock that much, not since I got out of college. It’s been one thing after another…

What’s the book you reread the most?

A book I’ve reread the most: not a single book, but the whole series of thrillers by Ross Thomas. I worked through them over and over, both because I liked the stories, but also because I liked the writing, the way Thomas took thriller situations and twisted them. I wore those books out, and Thomas almost literally taught me how to write. My current books don’t sound much like his, but my first ones—the Kidd series—did.

Is there a book you wish you had written and why?

A book I wish I’d written—Queen’s Gambit, by Walter Tevis. I can’t tell you why. Again, it’s my kind of writing, and I found his perceptions and inventions to be fascinating. Tevis is a greatly underrated American writer. He didn’t write that much—only six novels—but good God: The Hustler, The Man Who Fell to Earth, The Color of Money, Mockingbird, Queen’s Gambit, The Steps of the Sun. I mean, that’s a terrific winning streak. - Lit Hub

Sri Lanka’s latest contribution to the Colombo sky line, the Lotus Tower is said to be completed in October 2017 and will be opened by the end of the year. The tower upon completion will be the tallest tower in South Asia reaching up to 350 metres in height. The tower upon completionwill act as a transmission tower for television and radio. The tower will equalize the quality of transmission and ensure that all consumers have equal access to quality broadcast. It will also reduce the cost of digital transmission. The tower will be complete with various shopping centres, food courts, a walk through museum, banquet halls and an observation deck. Sri Lanka Telecom is the independent operator responsible of transmissions. The structure will have two banquet halls accommodating 450 each on the third and the fourth floors. The revolving restaurant will be at 234.2 meters. There will also be suites for state guests on the seventh floor. Access to the tower will be through ticket basis thus incurring a steady income through visitors. Picture by Shirajiv Sirimane 

Fitch Ratings has assigned DSI Samson Group,a National LongTerm Rating of ‘BBB+(lka)’. The Outlook is Stable.

DSG’s rating reflects leading positions in the domestic rubber tyre and footwear markets, which are supported by its wellknown brand, and an unmatched distribution network of 313 retail and wholesale points and six franchisees.

DSG’s market share also benefits from high tariffs on imports of tyres and footwear. These strengths are counterbalanced by increasing competition from imported footwear products and the weak local currency, which raises the costs of imported raw materials.

DSG is the market leader in the bicycle, motorcycle and three wheeler tyres industry in Sri Lanka, with a 45% export market exposure as of financial year end March 31,2016 (FY16). Furthermore, the company also holds the leading market position in the footwear segment despite competition from imported products. 

Union Bank has posted a profit of Rs 147 mn for the first quarter of 2017.The Bank showed a strong 95% growth on Results from Operating Activities, recording Rs. 147 mn in comparison to Rs. 75 mn in the previous year, reflecting the successful implementation of the Bank’s strategic initiatives.

Union Bank Director and Chief Executive Officer Indrajit Wickramasinghe said the the Bank has successfully withstood a challenging first quarter. “With a strong balance sheet, core income and Profit before tax growth, Union Bank will continue to invest and build on this to deliver on its focused business strategy”.

This was mainly attributable to the healthy increase in Net Interest Income of 73% despite the challenging Macro-Economic environment. During the period under review, the Bank remained focused on aiding the growth of Net Interest Income through prudent management of the Net Interest Margin coupled with the Total Asset growth.

Net Fee and Commission income grew to Rs. 166 mn recording a 43% increase as a result of the successful implementation of the Bank’s long-term strategic plans for fee based products.

A change in the Asset Mix of the Bank brought about a decline in the Net Trading Income as funds were shifted to Interest Earning Assets from Investments in Units.

This trade-off in income is a partial contributor to the increase in Net Interest Income.

The Impairment charge for the period increased by Rs.91 mn owing to one particular asset being reported under Non- Performing Assets.

In order to support the strong growth in the Balance Sheet, operating expenses of the Bank increased to Rs. 771 Mn, reporting a 15% growth YoY, in line with the Bank strategic growth and expansion focus along with its investment in Human Capital development.

The Profit before tax grew by a robust 45% to Rs. 167 mn. An increase of 138% in tax expense was experienced as a result of shifting in the assets from investments in tax-free asset classes to higher yielding taxable interest earning asset classes, which caused an increase in the effective tax rate. Profit after tax for the period was Rs. 95 mn.

Total Assets of the Bank grew to Rs. 101Bn, a 8% growth YTD. 

Pan Asia Banking Corporation has reported an after tax profit of Rs. 353.4 million for its January - March quarter (1Q’17) recording an increase of 16 percent from the same period last year.

The performance was largely supported by the significant increase in the fee and commission income, slightly lower tax liability and the closer tab kept on the costs. However, the core-banking performance became subdued in response to the tighter credit conditions remained throughout the period.

The bank’s earnings per share was Rs.3.41 by the end of the 1Q’17, slightly less than Rs.3.91 reported in same period of 2016 due to the increase in bank’s equity resulted by the Rs 2 billion rights issue in March 2017 which was promptly oversubscribed.

The bank’s newly appointed Director and Chief Executive Officer, Nimal Tillekeratne said this performance was a true reflection of the bank’s and ability to report consistently higher financial performance even amid challenging conditions. “I am happy to announce our financial performance for the first quarter because the bank operated under less than favourable conditions such as rising interest rates, slowdown in demand for new loans and risk of new addition to non-performing loans.Meanwhile the income tax expense for the period came down by 12% to little under Rs.160 million for the quarter from a year ago as a result of effective tax management.

The bank was able to maintain its Return on Equity (RoE) at 18.95% which is among the highest in the industry, albeit slightly down from 19.97% reported three months ago.

“Now that we have proved that we could deliver even under trying conditions, I am very much confident that Pan Asia Bank could continue to deliver exceptional performance exceeding the stakeholder expectations,” Tillekeratne said in the earnings release.

Commenting further on the recent issue of rights, he confided that the bank could meet the minimum core-capital requirement of Rs.10 billion by the end of 2017 with the strong earnings forecasted for the remainder of the year.

By the end of March 31, 2017, the bank had a core capital base of Rs.8.7 billion and a total capital base of Rs.10.5 billion.

Speaking on the future direction of the bank he said, “We have developed our new three year strategy with a clear focus on serving the diverse financial needs of Sri Lanka’s growing middle income class and also to uplift the Micro and Small and Medium Enterprises segment that are considered as the life blood of the Sri Lanka’s economy”. 

New Central Bank regulations to increase minimum core capital levels for all licensed finance companies could spur small companies to improve their capital buffers and may reignite industry consolidation, Fitch Ratings said. Fitch believes the new directive is likely to address the need for higher capital buffers for the non-bank financial institutions (NBFI) sector as a whole to ensure financial system stability, given our expectation of a deterioration in asset quality and capitalisation in the sector following aggressive loan book growth in recent years and persistent weak operating conditions. The Central Bank directive in February 2017 requiring all licensed finance companies to increase their minimum core capital levels to Rs 2.5 billion by end-2020 in stages from the current Rs 400 million, with the first target of Rs 1 billion to be reached by January 1, 2018. Capitalisation for the NBFI sector remains relatively low, with the core capital ratio at around 11.7% at end-September 2016. This level of capitalisation is similar to that of the banking sector, but we feel insufficient, as NBFIs have higher risk appetite than banks.

At end-September 2016, finance companies’ reported six-month NPLs accounted for 5.4% of total advances, compared with the three-month ratio of 2.9% for the banking sector. Fitch estimates that the ratio could be much higher for the finance companies at a three months level.

The new rules follow a previous plan to bring about financial sector consolidation, which did not significantly reduce the number of finance companies. There were 58 NBFIs covered by the “Master Plan for the Consolidation of the Financial Sector” in 2014-2015, some of which merged with larger finance companies or were acquired by banks. The sector currently comprises 46 licensed finance companies, of which the 20 largest ones assets as of end September 2016. 

One of the leading Taiwanese waste management companies is planning to set up office in Sri Lanka to introduce waste management systems with the ability for power generation.

APO Centre of Excellence Taiwan, Program Co Leader, Lihkkuan Lee said they have been efficiently using this system in Taiwan for the past 12 years. “We purchase garbage from residents and then recycle them in our plants to generate electricity,” she said.

She said that in addition to using power generated from waste, their company is also into solar power generation.We are now looking offers the Sri Lankan government or a private company to tie up with us and implement these systems in Sri Lanka.”

She said that she was so sad to note that a garbage dump in Sri Lanka had collapsed and killed over 30 people whereas a garbage dump of this size could have generated power to half of Sri Lanka. “For us garbage is a major asset.”

Meanwhile Taipei Economic and Cultural Centre in Chennai, Director General, Charles C. Li said Sri Lanka should look at using the resources and know how of this Taiwan Company seriously.

He said that due to influence by one of their neighbouring countries, Sri Lanka -Taiwan trade was at very low. “Now with better international relations we are promoting trade between the two countries aggressively”.

This is why several Taiwan investors attended the Invest in East Economic forum that was held in Colombo last year.

Inspriedge Chennai CEO, Sumit Bothra, said that the waste management and solar power generation proposed by the Taiwan company has being successfully practiced in India as well. 

 Bribery Commission Director General Sarath Jayamanne emphasised the importance of expanding the scope of corruption probes even to the private sector.

He said there is no proper discussion in the public domain to make private sector responsible for bribery or corruption offences in Sri Lanka. He was speaking at an event organized by the Ceylon Chamber of Commerce held in Colombo recently.

According to Jayamanne, the United Nations Convention against corruption review team who paid a visit to Sri Lanka recently, noted that the team has revealed that Sri Lanka’s law is silent with regards to private sector corruption. The team has recommended that Sri Lanka needs to take immediate measures to tackle corruption offences with regards to the private sector as well.

In 1994, Sri Lanka introduced a new offence called ‘corruption’ targeting the public sector; however private sector has been omitted in that offence.

“There was no public outcry; there was no demand especially from the private sector, so there was need to amend the law. If the law needs to be amended, there must be some kind of deliberation that should come from the public domain in order to expand the scope of the corruption charges even to the private sector.

In the Bribery and Corruption Act, there is a secrecy clause, which says you can’t divulge anything what the Bribery Commission is doing. If details are divulged, it would be considered as a criminal offence.

However, the moment the person is caught accepting the bribe, the person has to be produced before a magistrate within 24 hours. Once the person is produced to the magistrate, the entire country comes to know about him. With regards to corruption, we can’t arrest someone within 24 hours.”

Commenting on the role of Financial Crimes Investigation Division (FCID), Jayamanne noted that FCID is not vested with powers to conduct investigations into bribery and assets declaration and corruption charges.

However according to him there are other offences under the penal code such

as criminal misappropriation of property, criminal breach of trust, cheating and forgery which can be investigated by the Criminal Investigation Department (CID) as well as FCID. Noting that bribery commission is not in a position to prove bribery, corruption or not even asset management incidents as bribery commission doesn’t have the power to conduct money laundering incidents, Jayamanne further said the FCID is however vested with powers to conduct money laundering investogations in Sri Lanka” These monies are not kept in Sri Lanka and we don’t have jurisdiction to enter and see the bank accounts of another country. To this end, Sri Lanka is required to enter into a mutual assistance program with the respective countries to discover money stashed in foreign accounts.

Jayamanne termed bribery as a primary offence while corruption as a wide offence. 

Demand for memory chips and flat screens for televisions and phones has given Samsung Electronics its best quarterly profits in three years,

The South Korean tech giant reported a 48% jump in operating profits to $8.8bn (œ6.8bn) for the three months to March. Samsung said it expected further growth in memory chip orders and a pick up in earnings from its phone business.

It is relying on its new Galaxy S8 and S8+ smartphones to help rebuild its reputation after the Note 7 fiasco.

Last October it had to scrap the Galaxy Note 7 after recalling 2.5 million handsets. Batteries were blamed for overheating in the phones, which caused some of them to catch fire.

The two S8 devices launched last week and no sales figures are yet available, but Samsung said pre-orders had been 30% higher than for the Galaxy S7 in 2016.

Despite the financial success, Samsung remains mired in scandal with its de-facto head Lee-Jae Yong on trial over his alleged role in a corruption scandal that brought down South Korean President Park Geun-hye. BBC

Compliance with food safety and quality assurance standards in the production of food and beverages is critically important globally. Locally too, food manufacturers and exporters strive to ensure stringent food safety standards.

While the use of pneumatic air processes are a popular choice for food manufacturers, the possibility of food getting contaminated is a growing concern, resulting in the need for contaminate-free, high-quality compressed air for all types of food and beverage manufacturing operations.

United Tractor & Equipment (Pvt) Limited (UTE), recognised as a provider of precision-engineered solutions, hosted a customer awareness session titled ‘Oil Free for a cleaner world’ recently to create awareness of the benefits of using,oil-free, environmentally-safe, industrial air throughthe efficient FS Curtis Oil-Free Air Compressor range.

The FS Curtis range is renowned globally for having set the gold standard for its superior compressors.Its Oil-Free Air Compressors is geared to help industries that require compressed air overcome ecological and technological challenges.The seminar, especially targeting the food industry, where air purity affects the quality of products manufactured, contributed in creating awareness and promoting environmentally friendly solutions.

The event also served towards supporting the SMEs and larger organisations, improve the quality of products manufactured in Sri Lanka.Through UTE and FS Curtis, these manufacturers now have access to 100% oil-free compressors that have been approved and certified by international standards institutions.

Special invites attending the event included keynote speaker Dr. S. G. D. Jayawardena, Chairman-Sri Lanka Council for Agricultural Research Policy and the Consultant to the honorable Min. of Agriculture, Robert Hornamen, Director, Major Accounts-FS Curtis USA and Jeff Wu, Manager, Overseas Sales Department and FS Curtis Taiwan.Representing the hosts UTE was Riyad Ismail, CEO UTE together with senior management.Other participants attending this thought provoking event included decision makers and representatives from the food andbeverage Industry in the country.

Addressing the gathering, Riyad Ismail, CEO noted that the “Seminar was focused on the needs of the leading food manufacturers in Sri Lanka who are on the lookout for innovative technologies. We understand that food manufacturers face numerous challenges when using pneumatic air solutions to meet the high standards.” 

Casons Rent A Car, one of the oldest rent a car operators in Sri Lanka has introduced a mobile Taxi APP to call a taxi from a mobile device.

Casons Rent a Car Managing Director, entrepreneur M. C. Zakir Ahamed said that this App would enable any person to call a cab in short time. “This APP would allow middle income travelers to use our service as we have enrolled budget taxis for the fleet for the first time.”

“We see a growing trend in Sri Lankan people with even lower income using taxis and this new app we would be able to reach out to them too.” He said that under their next explanation plan they will introduce Casons metered Three Wheelers which too could be ordered from this novel Casons Taxi APP.

He said that this Taxi APP with several new features was designed by in house by their research team. “We will also introduce credit card payments from this APP.”

He said that they also offer a special feature where the travel movements of a passenger can be monitored online and if a company is providing this service to one its employees they are guaranteed that the ride’ is not misused. He said that today this unique service is very popular among leading corprotates and banks and government institutions like the Central bank use this service..

Casons in quest to expand and offer better services to passengers also opened a travel counter at the Colombo International airport Arrival Terminal from recently.

The service would offer over 500 new vehicles with a chauffeur for tours to cater the tourists coming down to Sri Lanka. Casons Rent a Car today boats to be the first travel tgent and tour operator to run a luxury fleet of Mercedes Benz vehicles at the BIA including Mercedes Benz Vans.

He said that their they know that the driver picking up a foreign passenger at the airport is the second contact of the foreigner in Sri Lanka after immigration officer. “Hence we have educated them to give a bright picture of Sri Lanka to tourists.” Casons Rent a Car entered record books taking Lankan travel industry by storm by introducing luxury such as Benz, Audi, BMW cars on a short and long term hire basis, a first such initiative in Sri Lanka.

Casons Rent a Car is a family managed enterprise established in 1987 as the pioneering Rent a Car Company.

He said that one of the man successes of the company is the way they look after their drivers who has tremendous respect from the management. “They are the key to our success and to date we are yet to receive a single complain against them from our users.” (SS)

Prestige Automobile (Pvt) Ltd unveiled the new MINI Clubman to conquer the premium compact segment.

The new model offers the highest level of everyday practicality, long distance suitability, versatility and ride comfort ever seen in a MINI.

With four doors and the characteristic split doors at the rear, five fully-fledged seats and a generously sized, versatile interior, the new MINI Clubman meets all the requirements of the compact class in terms of functionality in its own unconventional way, migrating from its youthful exuberance to a mature responsible outlook, much similar to its customers who have been a part of MINI. Individual style, outstanding driving fun and the quality level of a premium automobile, makes it an exceptional phenomenon that allows additional target groups to get a taste of the distinctive MINI feeling.

Heinz Reuter, Chairman of Prestige Automobile (Pvt) Ltd said, “When the MINI Clubman was first presented in 2007, it was responding to a desire for space to accommodate more passengers and luggage as well as to expectations of a 21st century automobile in terms of comfort, safety and efficiency. Today, the new MINI Clubman far surpasses its predecessor not only in dimensions but in providing an enhanced driving experience packed with more technology and innovations than ever before.”

Ranjith Jayawardena, Director Marketing at Prestige Automobile (Pvt) Ltd. said, “We are thrilled to offer the new MINI Clubman to our fans in Sri Lanka. On top of its much-loved signature split rear doors, drivers will also enjoy greater accessibility and everyday usability thanks to its four full-sized side doors. With its powerful fusion of sleek lines, innovative touches and first-rate materials, we believe the new MINI Clubman will turn heads on the road and deliver a classic MINI driving experience that will appeal to MINI fans and car enthusiasts alike.”

Prestige Automobile (Pvt) Ltd the authorized importer for MINI with a history spanning more than two decades in Sri Lanka, offers the latest MINI models to the market and globally benchmarked standard of service through its Service Help Desk and technically proficient team of sales persons. Among the after sales services available to MINI owners in Sri Lanka at Prestige Automobile (Pvt) Ltd are a spare parts department, BMW-trained technicians and a state-of-the-art workshop with BMW-specified diagnostic devices.

A MINI purchased from Prestige Automobile comes equipped with country specific interior, exterior and engine modifications and a two-year standard manufacturer warranty, which is extendable up to five years if required.

 A proper regulatory mechanism should be in place before entering into foreign trade agreements, Construction Industry Chamber Secretary General and CEO, Nissanka N Wijeratne said.

“As per the ETCA agreement and FTA with China, the construction sector will opened out to a certain extent. But the problem is although the Construction Industry Development Act was passed in 2014 not a single regulation under the Act has been passed. Without regulations the provisions of the Act cannot be implemented,” Wijeratne said.

“If free trade agreements are signed and the sectors are opened without regulatory mechanisms, it will be a free run for those companies and it applies to even other sectors. Anti dumping we still don’t have a law, so if those things are implemented then of course there is no harm opening out and getting benefits from those agreements. Otherwise it will be dangerous” Wijeratne opined.

The industry is also marred with other burning issued such as the shortage of labour especially for projects in Colombo and once the rain sets in the problem will get much severe because the employees will go back to farming. The next burning issue is the scarcity of sand. The sand price has increased to Rs 16,000 per cube and the chamber has been pressing for as alternative of river sand the government should facilitate supply of washed and sieved sea sand. The Muthurajawela plant alone cannot supply the total requirement of the Western Province at least another two parties must be allowed to pump sea sand.

Although the chamber agrees of banning river sand mining there must be an alternative, he said.

The government has not intervened to solve this problem he said.The promise to provide sieved sea sand from January 1 too had not materialised yet he alleged.

Constructors in Colombo alone need 8 million cubic meters of sand he said.

 Also there is a shortage of crush rock in the industry and there are delays in obtaining permits. he said.

The last budget has also heavily burdened the construction Industry with taxes and also imposed a 5% withholding tax on contractors. After protests the government has revised it to 2.5% but it has not yet been gazetted he said. Wijeratne said the Chamber feels that it should however not be more than 1%. On top of that a 2% NBT has been also levied on Contractors he said. This will increase the overall construction cost due to snowballing effect by 5% he alleged.

Seylan Bank has reported commendable performance in the first quarter of 2017 recording profit-after-tax of Rs.866 million, a 20% Year on Year growth.

The Bank increased its Net Interest Income and recorded a robust growth of 20.97% in spite of the mounting pressure on the margins due to rising cost of funds. However Net interest Margin contracted from 4.19% in 2016 to 3.92% in 1Q 2017 due to cost of deposits increasing at a faster rate than the re-pricing of loans.

Net fee and commission income witnessed a healthy growth of 24.94% to reach Rs. 869 million in 1Q 2017 as compared to Rs. 695 million for the comparative period. This was mainly attributed from core banking related business such as card-related income, trade finance related fee income and fees from guarantees and remittances. The Bank will continue to look towards enhancing its fee-based income from products such as debit and credit cards and trade-related products.

Other operating income comprising net gains from trading, gains from financial investments, gains on foreign exchange and other income reported a net gain of Rs. 299 million compared to loss of Rs. 68 million in 1Q 2016.

Impairment charges for loans and other losses for the period was a charge of Rs. 346 Million as compared to a charge of Rs. 84 Million in Q1 2016. Individual impairment charges of Rs. 253 Million represent specific provisions made for few credit exposures. The Bank has a stringent recovery process in place to minimise any significant losses that may arise from such loan facilities.

Total expenses recorded an increase of 19.03% from 2,273 Million in the 1Q of the previous year to Rs. 2,705 Million during the period under review. Expenses growth was witnessed by investments made in employees, technology, upgrading and refurbishment of branches etc.

Cost efficiency and productivity has taken a predominant role in the Bank’s day-to-day operations. The Bank continues to focus on cost initiatives coupled with implementation of lean concepts and exploring ways of inculcating a culture of working smarter across all the functions by the employees.

The Bank’s loans and advances portfolio recorded a marginal growth of 2.76% to 242,531 Million during the 1Q 2017 amidst rising interest rates. The growth in credit was driven primarily by Term Loans, Overdrafts and Credit Cards. The overall deposit base recorded a marginal growth of 0.24% from Rs.273,456 Million by the corresponding quarter last year to 274,120 Million by 1Q 2017 and a shift from low cost CASA to term deposits was noted which is partly due to increase in interest rates.

SriLankan Airlines won a Gold Award for its destination video “Epic Journey of Sri Lanka on SriLankan Airlines” at the Golden City Gate Awards Ceremony at ITB Berlin recently.

The video captures the cultural vibrancy and the ecological beauty of the country through extensive aerial videography; offering the viewer a novel perspective of the island experience. Elaborating the cultural festivities that bring communities together, the video effectively touches upon the aspects of devotion and the continuity of rich traditions that are as old as the history itself.

SriLankan Airlines’ Chief Commercial Officer, Siva Ramachandran said they are pleased that their efforts were recognized at the Golden City Awards 2017.”This will certainly motivate us to conceptualize and create more unique content which will help us take Sri Lanka to the world.”

“Epic Journey of Sri Lanka on SriLankan Airlines” features a collection of Sri Lanka’s most iconic places, mostly set against the lush greenery, the aquamarine Indian Ocean and the sunny skies.

While portraying the country as a hotspot for adventure sports such as surfing and hot air ballooning, the video goes beyond a stereotypical destination video by unveiling the modern luxuries the island has to offer the discerning traveller.

Every year the Golden City Gate Awards Ceremony recognizes and rewards the creative efforts of the global tourism industry, expressed through various mediums.The artworks are judged by an international jury based on a point system and each submission is evaluated for its creativity, innovativeness, design, structure, authenticity and whether it encourages the audience to visit the destination.

Chevron Lubricants Lanka announced a strategic partnership with Japan’s Yamaha Motor Company where Chevron will be producing Yamaha Genuine Oil under the brand “Yamalube” for the Sri Lankan market.

With similar arrangements in place between Yamaha Motor Company Japan and Chevron in various other markets, this represents a first for Sri Lanka where Yamalube 4 Stroke Motor Oil will be produced at the state of the art blending and manufacturing plant of Chevron Lubricants Lanka in Sapugaskanda.

Yamalube Oil is specifically meant for use in Yamaha Motor Cycles sold in the Sri Lankan market and is available in 2 viscosity grades of 10W-40 and 20W-40 conforming to API SL/JASO MA specifications.

Yamaha Motor Company officials Masakazu Suzuki and Mitsuru Masayasu were in Sri Lanka in 2016 for the audit of the Chevron Blending and Manufacturing Plant at Sapugaskanda and after an exhaustive check of systems and processes, cleared the plant as conforming to the high standards required by Yamaha Japan to manufacture their Genuine Oil.

“We are pleased to partner with Chevron Sri Lanka in introducing Yamaha Genuine Oils for Yamaha Motor Cycles in Sri Lanka, in the same way that we work with them in several other Regional markets” said Masakazu Suzuki, Manager – Yamalube Support Group, Overseas Marketing Division of Yamaha Motor Co., Ltd. Japan.

Kishu Gomes – Managing Director/CEO of Chevron Lubricants Lanka PLC stated that the relatively new blending and manufacturing plant of Chevron Lubricants Lanka PLC built with an investment of US$ 15 Million in 2014 has a capacity of more than double the total market potential of Sri Lanka and was therefore also meant to cater to the demand of regional markets. “Toll Blending for major OEMs such as Yamaha is therefore very much part of this vision” added Gomes.

The Sri Lanka – Russia Business Council of the Ceylon Chamber of

Commerce organized a get together recently to discuss the progress made

during the recent visit, the Council members made to Russia, as a part of the Presidential Delegation to Russia.

The Sri Lankan Ambassador in Russia Dr. Saman Weerasinghe and the Russian Ambassador in Sri Lanka, Alexander Karchava took part. The discussions revolved around the progress made during the recent Russian visit, and how they can further strengthen the business relationship with the Russian business community.

Karchava speaking during the occasion appreciated the council for organizing events of this nature, which helps bilateral business progress. The president of Sri Lanka Russia business council (SLRBC) Isuru Samarasinghe, thanked Dr. Saman Weerasinghe, for helping to organize the Business Delegation to Moscow.

He also thanked him for giving the opportunity to members of the SLRBC to hold bilateral meetings with the members of the Chamber of Commerce of Industry of the Russian Federation and for the assistance rendered during the mission.

Among the guests were Stassen Exports Chairman Harry Jayawardena, Lanka Tractors Chairman Daya Weththasinghe, Andrew the Travel Company Managing DirectorMahen Kariyawasan , Russian Embassy’s Chief of Protocol Evgeniya Altukhova, MAC Holdings Chairman Andre Fernando,Akbar Brothers Director Hatim Abbasally, Built Eelement Joint Managing Director Shashi Ganeshan, Built Eelement Joint Managing Director Gamini Nanayakkarawasam, Rhino Roofing Products Managing Director Jey Gnanam, Rhino Roofing Products Director Jude Fernando,Basilur Tea Exports Chairman Gamini Abeywickrama, Megatrend Lanka Managing Director Dinesh Samaratunga, Eswaran Brothers Deputy Chairman Ganesh Deivanayagam and Concord Exotic Voyages Managing Director Bilal Mohammed. 

Sri Lanka developed corporate governance solution BoardPAC has entered Nepal with the adoption of the platform by Ncell, the first private mobile operator there.

A member of the Axiata Group Berhad, one of Asia’s leading telecommunications groups, Ncell contributes to the development of Nepal’s economy and infrastructure, building best-in-class networks and connecting people in the remotest areas of the Republic.

Ncell is the first company in Nepal to deploy BoardPAC for paperless Board meetings. BoardPAC CEO Lakmini Wijesundera said.

“We are excited to work with Ncell, the largest telco in Nepal. We are confident that the company’s board members and senior management will discover that this secure digital solution will provide greater flexibility and convenience. They can now access, review and approve vital board documents on their iPads, enabling more effective board communications.”

“We are also excited to make an entry in to a new market in Nepal, as we steadily expand our footprint across the globe,” she added.

Rajitha Kuruppumulle, Chief Operating Office of BoardPAC said: “We are thankful to Ncell’s IT team for its excellent support for the deployment of BoardPAC in Ncell within the specified time-frame. As the largest Telco in Nepal, Ncell is setting benchmarks in the industry and in adopting world-class technology to enhance operations and decision-making, which will be further facilitated by BoardPAC.”

BoardPAC provides users the ability to view and approve papers from the ease of a Board Member’s iPad. It has a host of features such as collaboration, meeting management and RSVP, the ability to search and refer to past board papers, as well as to annotate and approve documents and update agendas. The solution meets with the highest security standards including the ISO 27001 certification.

The Tea Exporter’s Association (TEA) has complained of the high taxes imposed on the sector.

They lament that every exporter should renew their licence with the Tea Board (SLTB) annually at a cost of Rs. 500,000 for large and medium tea companies and Rs. 50,000 for small companies.

The CESS and Promotion Levy paid on export

of value added teas comes to Rs. 7.50 per kg and about Rs. 17.50 per kg on export of bulk tea.The income tax payment, economic service charge and other fees paid to SLTB and other state

organizations also add to the operational cost of tea exporters.

According to Sri Lanka Customs data over Rs. 2 billion per annum is collected from tea exporters as CESS on bulk and value added tea exports. A further Rs. 1 billion is collected as Tea Promotion Levy by SLTB from the exporters.

The total CESS and tea promotion levy paid by the exporters’ amount to around 1.5% of the annual tea exports revenue. “This may be the highest CESS payments made by the tea exporters in a tea producing country.”

The members of Tea Exporter’s Association point out that this happening at a time when tea production is on a declining trend in the last few years due to many issues.

The exporters are also worried about the slow implementation of budget proposals related to tea export sector. It has been proposed to abolish the Import and Export Control Department Fee of 1% of CIF value on import of tea for re-export purposes to support the tea industry through a more simplified tax and tariff structure in the 2017 Budget.

The Tea Exporter’s Association had been lobbying for removal of this fee as tea exporters pay a licence fee of Rs. 5.00 per kg to the Sri Lanka Tea Board also when importing tea for re-exports. The dual taxation on tea import licences currently applicable for the import of CTC,Green and Specialty teas is negatively affecting the competitiveness of Sri Lanka tea brands. “However, this proposal is yet to be implemented by the government.”

They also point out that Tea Fund since the establishment in November 2010 conducted only a few useful promotional activities have been undertaken in foreign markets and as a result the accumulation of the fund has now reached Rs 6 to 7 billion.

“We strongly believe that further accumulation of funds may prompt the Treasury to force the Tea Board to use the idling funds for recurrent expenditure or for other non-promotional activities”.

“The delay in implementation of the global Ceylon Tea campaign is not due to any fault of the tea exporters but due to strict government tender procedures and other regulations.”

In view of the current situation, TEA has requested SLTB to initiate action to suspend the tea promotion levy until the launch of Global Ceylon Tea Campaign is finalised.

The biggest ever Public Private Partnership (PPP) effort in recent history enlisting Sri Lankan exports and its private sector surfaced yesterday in Colombo and called for the highest political will to move forward. Crucially, a massive international support wave too has been hinted for Sri Lanka’s TFA implementation via global agencies, including the World Bank.

“The highest Sri Lankan political will should be there to succeed in this. We are talking win-win here since both the government and the business sector are talking about the same goal,” voiced Vice President Global Alliance for Trade Facilitation Donia Hammami on 26 April in Colombo. GATF Vice President Hammami was addressing the launch of Sri Lanka’s first ever country session for its exporters and businesses on the historic WTO Trade Facilitation Agreement (TFA) jointly steered by GATF and International Chamber of Commerce Sri Lanka. Vice President Hammami leads ICC policy work in Customs and Trade Facilitation at the International Chamber of Commerce (ICC), the world’s largest business organization with a network of over 6 million members in more than 100 countries. Minister of Industry and Commerce Rishad Bathiudeen with Chairman of International Chamber of Commerce Sri Lanka Keerthi Gunawardane leading the Sri Lankan side at this event.

Vice President Global Alliance for Trade Facilitation (GATF) Donia Hammami elaborated on Public Private Partnership for trade led growth. “As for this TFA, we are talking of a common sense package that will reduce trade costs for WTO members by as much as 14.5%, boost exports up to $730 billion, 20 million new jobs across the world, and greater impact on global GDP. As for Sri Lanka, TFA does not focus on quotas and tariff but simplifying procedures and removing inefficiencies.”

Calling for the Lankan private sector enlistment in the venture, she said: “The Lankan business community has a key role since they know Sri Lankan situation best. As the private sector, you must make sure your voice is heard in this TFA efforts. This agenda is worth your time and effort. It’s a one time in life opportunity. The Sri Lankan TFA Secretariat will do the groundwork. Sri Lanka has notified Category A Commitments, but it needs to work on Category B & C Commitments. These categories needs to be focused on. We await Sri Lanka’s confirmation in this.”

Minister of Industry and Commerce Rishad Bathiudeen addressing the event thanked WTO for its ongoing support to Sri Lanka.

“I am happy to mention that under the leadership of my Ministry, the Department of Commerce, as the focal point made the necessary arrangements for Sri Lanka to ratify the TFA Agreement and establish the National Trade Facilitation Committee as early as in March 2016” said Minister Bathiudeen .

Overseas Realty Ceylon PLC’s income reached Rs.503 million in March 2017, which is a 6% increase. The direct operating expenses too saw similar improvements of 6% amounting up to Rs. 571 million. The company financial statements suggests that the profit rose to Rs.881 million thus increasing by 21% YoY.

The company being the owners of the Echelon Towers building in Colombo, their profits were boosted by a forex gain of Rs. 139 million which is a significant increase from last year. Reports states that of the profits, Rs 316 million were from fair value gains. The firm also reported Rs 315 million of fair value gains last year.

The firm states that there will be 46 cents per share without fair value gains and 72 cents with fair value gains. (VW)

NDB Investment Bank (“NDBIB”) successfully introduced the Cornerstone Investor Strategy to the Colombo bourse via the recent Initial Public Offering (“IPO”) of RIL Property Limited (“RIL”).

The IPO was oversubscribed within minutes on the opening day itself amidst healthy participation of value driven institutional investors. The Cornerstone tranche is commonly used in advanced regional markets such as Singapore, Hong Kong and Malaysia and the introduction of this strategy in a frontier market like Sri Lanka is a landmark accomplishment. The introduction of the Cornerstone Investor Strategy is in line with NDBIB’s quest for innovation and adds to the many innovative structures and financial products, including that of book building for IPOs, introduced by the company to the capital markets in Sri Lanka.

Darshan Perera, Chief Executive Officer of NDBIB, commented “The rationale for the Cornerstone Investor Strategy is to seek initial price validation whilst creating awareness and positive sentiments around an IPO by receiving commitments from prominent institutional investors”. Generally, Cornerstone Investors have a profound understanding on business operations of the company, the industry, the market opportunity and actively pursue appropriate valuations, comprehensive due diligence and post-investment monitoring. Such investor commitments are secured for the IPO prior to receiving regulatory approvals and the names of cornerstone investors are prominently disclosed in the Prospectus.

Nilendra Weerasinghe, Vice President and Head-Corporate Advisory, stated “Cornerstone Investors are offered sizeable allocations in return for making commitments before they see the market response for an IPO. We have a mandated IPO pipeline of about USD 75 million and will consider using a Cornerstone Strategy for our future issues depending on market conditions”. Priority allocations to selected investors may not be possible under the usual proportionate allocation policy followed in an oversubscribed IPO. Cornerstone Investors also agree for lock-in periods to signal that the priority allocations received will not be off-loaded in the market immediately after listing. The reputation and calibre of Cornerstone Investors contributes significantly towards rallying other institutional investor support and retail participation for an IPO. A common market perception is that Cornerstone Investors carryout stringent due diligence on prospective IPO companies prior to giving commitments providing some degree of comfort on IPO pricing as well the future potential of the Company.

The IPO of RIL, a leading developer of commercial office spaces in Colombo, comprised a Cornerstone Tranche of Rs 200 million amounting to 20% of the offer size. NDB Capital Holdings Limited (“NCAP”), NDBIB’s parent company, committed as the Cornerstone Investor whilst agreeing for a minimum allocation of Rs 120 million in the event of an oversubscription.

NCAP further agreed to a voluntary lock-in period of 6 months from the date of listing in line with best practices followed in regional markets. The IPO was jointly managed by Commercial Bank of Ceylon PLC and NDBIB.

As the leader in investment banking in Sri Lanka, NDBIB has unrivalled market share in both debt and equity transactions and Mergers & Acquisitions. Its commitment to continue as the forerunner in innovation by introducing best practices and structures in developed capital markets to Sri Lanka remains firm.

NDBIB envisages to continuously test new grounds and embrace lucrative market opportunities whilst furthering its position as the market leader in investment banking in the country. 

Ceylinco Insurance PLC, announced an incomparable dividend of Rs.27/50 per share to its shareholders for the year 2016, which constitutes a 275% dividend of the original share price.

This is also an increase of 22.2 % of the dividend declared for 2015. Ceylinco Insurance PLC said that the company was able to declare this dividend due to the exceptional results of its two wholly owned subsidiaries, Ceylinco General Insurance Ltd and Ceylinco Life Insurance Ltd. Ceylinco Insurance PLC believes that its success is a reflection of its resilience and strength, expressed through the shareholder and customer confidence in the company.

The revenue of Ceylinco Insurance PLC exceeded Rs. 39.8 billion in 2016 with its insurance sector contributing Rs. 37 billion, the education sector Rs. 2.4 billion, the power and energy sector Rs. 211 million, with the others contributing the balance. The consolidated results recorded an imposing expansion, with the profit before tax reaching an exceptional Rs 5.8 billion, and the after tax profit standing at Rs. 4.8 billion.

Godwin Perera, Chairman of Ceylinco Insurance PLC in his opening address said “2016 was an outstanding year as both Ceylinco General Insurance and Ceylinco Life Insurance achieved the highest premiums ever.

This was in addition to the significant contributions made by the power and education sectors. This enabled the directors to recommend a dividend of Rs 27/50 which again is the highest dividend paid so far”.

Ajith Gunawardena, Managing Director / Chief Executive Officer of Ceylinco Insurance PLC said “this nature of a record dividend, one of the highest declared by a company in the financial sector was made possible by the steadfast confidence placed in us by our customers and our shareholders, whose trust we value, and our staff, who went that extra mile to ensure the company maintained the highest standards in customer care, adding value to every aspect of the level of service we deliver.

Good governance, coupled with sound management principles and farsighted strategies that maximised resources and skills, also helped the company achieve this level of success.”

R Renganathan, Director of Ceylinco Insurance PLC and Managing Director of Ceylinco Life Insurance said: “The impressive shareholder returns generated by the company are all the more noteworthy when considering Ceylinco Insurance’s record of claim settlement and payment of benefits to policyholders, as well as its commitments to the community.

In 2016, the life insurance company alone paid out Rs 6.8 billion in gross claims and benefits to policyholders, including Rs 3.8 billion in annual bonuses. Ceylinco Life recorded net profit of Rs 3.1 billion for the year and transferred Rs 2.3 billion to shareholders. Dividends and earnings to shareholders for 2016 exceeded Rs 3.4 billion.”

Patrick Alwis, Managing Director of Ceylinco General Insurance Ltd commenting on the performance said “The main contributor to the success of the group was the Insurance sector, which recorded a mammoth after tax profit of Rs. 4.4 billion, for the year ended 31st December 2016. Contributing to this remarkable performance, Ceylinco General Insurance recorded a profit after tax of Rs. 1.3 billion and paid claims to the tune of Rs. 10.5 billion, which is an increase of 59 % over 2015.

The unprecedented amount of money provided in lieu of claim settlement reflects the company’s continuing commitment to ensuring timely claim settlement to all customers. Ceylinco General Insurance has always maintained an undisputed and unmatched reputation for settling all claims On The Spot enabling our customers to return to normalcy in the fastest possible time.” 

Financial innovator Vallibel Finance called for a double celebration as it relocated to its own premises in Galle, located in the heart of the town.

Galle, the location is the centre point of the Southern commercial hub, commanding prestige and prominence.

Vallibel’s new customer centre lends a vibrant new look to the city centre and its enhanced infrastructure facilities will allow the financial trailblazer to bring its full spectrum of financial products and services to the people of Galle.

Jayantha Rangamuwa, Managing Director of Vallibel Finance said that the high-riding finance company is now the centre of attraction and it is a rare privilege to own a landmark location in such a historic city which is also known to be the informal capital of the intellectual’s and entrepreneurs.

As a company attuned to understanding the true aspirations of a diverse people we are recommitting ourselves to people of Galle, he said.

The Ceylon Chamber of Commerce (CCC) is making arrangements to publish a Registry of Small and Medium Enterprises operating in the region.

The proposed registry, which is currently being compiled will be published in June, 2017.

The main objective of the Chamber’s exercise is to assist SMEs to find potential business partners to further enhance their business activities. The ’Registry’ will also be a ready reckoner for input suppliers and service providers.SMEs in the Northern Province who wish to list in the Registry, can do so by contacting the Ceylon Chamber via 115588854 or by emailing to inshaf@chamber.lk 

Housing Development Finance Corporation Bank of Sri Lanka (HDFC) signed a MOU with the Central Bank enabling HDFC bank to contribute to the Government’s objective of generating one million jobs through establishing over 25,000 new businesses, with the utilization of resources in the villages.

The Central Bank of Sri Lanka (CBSL) and the Ministry of National Policies and Economic Affairs (MNP&EA) have jointly designed Swashakthi Loan Scheme for Micro, Small and Medium scale Enterprise (MSME) sector Development and Employment Generation, on behalf of the Government of Sri Lanka (GOSL).

The main objective of the scheme is to generate employment opportunities, providing financial support for new entrants and existing entrepreneurs who are already engaged in income generating activities in the Agriculture and Livestock, Industrial and Services sectors.

Under this scheme, a special focus will be given to youth, young graduates, women, and differently abled persons.

The new loan scheme covers Agriculture, Livestock, Aquaculture, Organic Farming, Post-Harvest Technology, Industrial, Information Technology, Automotive, Construction, Electronic and Telecommunications, Farm Machinery, Handicrafts, Leather products, Jewellery designing and manufacturing, Welding, Light Engineering and Fabrications sectors and other innovative technology areas.

The Bank expects to fulfill the financial needs of youth, youth graduates, women and differently abled people, at grass root level in order to meet the main objectives of the “Swashakthi” loan scheme.

The bank will assess the viability and strength of the project plans when granting loans and, under this loan scheme existing businesses will be given a maximum of Rs.250,000 at a nominal interest rate of 5.5 percent per annum. 

SriLankan Airlines, has achieved the distinction of becoming one of only six airlines worldwide to obtain the Quality Assurance Standard (QAS) accreditation for its Voluntary Carbon Offset Programme, ‘Flygreen’.

SriLankan is now authorized to display the QAS Carbon Neutral Quality Mark, demonstrating that it is using the global best practices for carbon offsetting. QAS (http://ift.tt/2q2bJAe) is an accreditation that is awarded following a comprehensive independent audit system for companies who wish to evaluate their carbon offsets against the high standards available. QAS audits involve a 40-point checklist to ensure that companies meet the very highest standards in the world in terms of carbon offsetting.

The ‘Flygreen’ Programme (http://ift.tt/2piMziT) obtains the participation of the airline’s passengers, who are given the opportunity of voluntarily donating a prefixed amount to offset the carbon footprintof their respective flight. These donations are then channelled through the International Air Transport Association (IATA),and are utilized to procure carbon offsets on behalf of SriLankan and neutralize the footprints.

At present the offsets are sourced from two Sri Lanka eco-ventures,the Hapugastenne Mini Hydro Project and Hulu Ganga Mini Hydro Project- in order to support the country and local eco-ventures.

Global aviation accounts for approximately 2% of the world’s human inducedcarbon emissions, making it increasingly vital for airlines to actively seek out methods to promote conservation and reduce their carbon footprint. 

Sri Lanka is committed to upgrade intellectual property regimes to move beyond traditional domains of copy rights and patents,Sri Lanka’s Permanent Representative in Geneva, Ravinath Aryasinha said.

It will particularly foray into new areas such as innovation and branding to bring it in line with international standards,he said speaking at a seminar on protection of Intellectual Property Rights of traditional knowledge and cultural expressions in association with G-15 country grouping and WIPO.

“Under the ten point action plan of World Intellectual Property Organization (WIPO) Sri Lanka Cooperation launched following the visit of Dr. Gurry, Sri Lanka has focused on making its own stakeholders aware of unique IP rights associated with traditional knowledge, traditional cultural expressions and enhancing expertise on international dimensions associated with these rights.”

Commenting on G-15 country grouping, Aryasinha noted that during Sri Lanka’s chairmanship, the group has made strategic re-orientation while the group continues to articulate the common positions of mutual interests at important global forums.The G15 has evolved into an organization that is also striving to achieve greater South-South cooperation and building capacity among its members.

As a grouping of developing countries, G-15 has also witnessed many changes in the global sphere.In this regard,the group has identified intellectual property as one of four areas of focus in 2013.

“This resolve has further strengthened by the opportunities presented through the 2013 agenda of development which is developing countries pooling their resources and expertise for the common good.”

He further added that in the realm of intellectual property rights,the G 15 countries share many interests especially in multi-lateral platform such as WIPO , among them the protection of IP rights associated with free trade is of paramount importance to all member countries.

Though ‘free attendance invitations’ were offered to several public sector organisations to attend Lanka Business Online (LBO) infrastructure and digital summits, only a handful of state institutions responded, Lanka Business Online (LBO) Summit Curator Founder and Director Lakshman Bandaranayake said.

Speaking at the fifth LBO/LBR Brand Summit announcement launch press conference he said the Urban Development Authority, Road Development Authority, Sri Lanka Tourism and Ports Authority responded and gained knowledge from the summit.

He said health, education and transport sectors could gain valuable knowledge from these seminars but these opportunities offered free to them are not being used. He said that though Sri Lanka is fast moving in digital adaptation, government institutions have not geared up to meet the people’s demands.

He said there are over 2.6 million mobile SIM cards and over 35% of the population use internet. In a addition there are over 450,000 Facebook uses and 40% of the population has smart phones.

He also said though banks and travel and air service companies use this to their advantage, even the FMCG sector is backwards

into moving in this area. He said that even in companies, employees are reluctant to move to the digital era. “May be the older work force due to retire soon don’t want to move into the digital era as they don’t want to take risks and unnecessary education (which they think).” Bandaranayake also added that it is the younger work force that are tech savvy and the older work force doesn’t want to learn from them and don’t respect their changes. “However this is an unfortunate situation.”

He also cautioned that not adapting to digitalisation may even result in the closure of companies (specially family owned) which is happening all over the world.

Lanka Business Online, LBO, will be hosting their fifth consecutive annual edition of LBR LBO Brand Summit on Wednesday the May 3, at the Oak Room, Cinnamon Grand Hotel. “LBO has earned a fine reputation as Sri Lanka’s foremost conference host on technology, marketing, management, infrastructure and economy. LBR LBO Brand Summit, over a period of five years, has now become the most sought after thought leadership engagement on transforming marketing through technology and analytics.

“The LBR LBO Brand Summit provides a forum for corporate executives from all branches of industry, business and academia to gain insights to how digital could be leveraged to redefine, re-imagine, and reinvent the relationship between brands and consumers.” said Bandaranayake.