business Sri Lanka

 Using the Chamber principles as a basis of engagement, the Chamber through its secretariat, the trade associations as well as the business councils, have continuously engaged with the Government policymakers and the multilateral agencies, to influence and fashion out positions which could be beneficial to its membership, said Samantha Ranatunga, Outgoing Chairman, Ceylon Chamber of Commerce addressing the 178th AGM yesterday.

“We had many engagements with the policymakers during the last 2 years where we articulated the Chamber position. We won some but we lost more. However, in true Chamber spirit, we always put the Country first more than narrow industry specific initiatives. This is clear from the positions we have taken on taxation and trade agreements. We have taken on true Country priorities and tried to bring them to the National or International platform. Two of our ground breaking activities were the Investor Forum as well as the Innovation Strategy event which was held during March 2017. These were in addition to the other main prestigious events, the Economic Summit and the Best Corporate Citizen Awards,” he said. To promote investments, the 2 investor forums showcased the potential of Sri Lanka, where both events attracted nearly  150 participants from over 40 countries. At these events, CCC about the practical issues faced by investors in Sri Lanka and how to find solutions for it. The Innovation Summit was for future entrepreneurs of this country, where some of the best innovators in the world and in Sri Lanka spoke about the technological opportunities which exists and how the country could benefit. This was a launching pad for the knowledge economy a key competitive area of opportunity for Sri Lanka. The Chamber has always actively promoted what it felt right for Sri Lanka and best for its success, he said.

“What we seek from the Government is a true partnership. The private sector always strives to build a bridge of trust with the Government leaving room for dialog and healthy debate. Let us use this as a connection for a brighter future, where we continue to build mutual confidence. Our Chief Guest Dr. Binod Chaudhry has the business confidence as he has been investing in Sri Lanka from the 2,000, even while the war was at its peak, “he added. See also page iii

As much as making money was important to businessmen it was of paramount importance to work with the society to redistribute it back, opined Binod K. Chaudhary Chairman, CG Corp Global, Nepal speaking at the 178th AGM of Ceylon Chamber of Commerce yesterday at Cinnamon Grand Colombo.

“As businessmen, making money is important to us. But more important than that is how we work with society in giving it back. We cannot function in a vacuum. We have a big responsibility towards our society. We all need to fulfill that responsibility. Otherwise, our earning money will be useless. For many of us, making money may be easy. But it is difficult using that money wisely toward helping our societies. Let us ask ourselves do we want to be remembered as‘rich and mean businessmen’ or ‘rich and compassionate human beings’?” he queried.

Chaudhary said that Bill Gates was known as the richest man of the world. But he was equally know for running a foundation, the Bill and Melinda Gates Foundation, that is doing so much on public health around the world.

“In India, we all know the Tatas for being one of the biggest conglomerates, but we remember them even better for their fantastic social service in the fields of cancer treatment. It gives me tremendous sense of satisfaction to share that within a period of less than six months we built 3000 transitional homes and 40 school buildings after the earthquake in Nepal,” said.

Looking back 20 years, one could see the predominance of traditional manufacturing industries. The capital-centric traditional industries such as textile, jute, sugar and steel used to rule the market. Those days have now ended, he said. The paradigm of entrepreneurship has changed. Trendy Youtubers are compelling traditional television broadcasters to rethink their survival, teenage Instagram stars are becoming case studies for marketing gurus. “To be an entrepreneur, we need two things: an innovative idea and a strong will to execute. It does not matter what citizenship or passport you carry.

The national boundaries no longer hold any relevance if your will power is strong enough, Chaudhary added. 

Public Utilities Commission of Sri Lanka (PUCSL), the electricity sector regulator, asked the Ceylon Electricity Board (CEB) to develop12 new scenarios which will provide different power plant combinations to generate electricity for next 20 years and submit the plans on or before July 7.

PUCSL said these scenarios should be developed with updated prices for coal, natural gas and oil and with the cost of externalities (social and environmental costs) and should be submitted together with input data.

“We carried out an in-depth study on the proposed Least Cost Long-Term Generation Expansion Plan 2018-2037 prepared by CEB and analysed the comments and proposals that key stakeholders made during our public consultation process,” Damitha Kumarasinghe, Director General of PUCL said.

“Taking all that into the accounts, PUCSL requested 12 new scenarios to be submitted apart from the plant combination recommended in the plan, so that the nation can be ensured that every option is studied and best 20-year power plant plan is given approval.”

PUCSL instructed CEB to use the electricity demand forecast on the recommended power plant combination (Base case) in the proposed Least Cost Long-Term Generation Expansion Plan (LCLTGEP) 2018-2037 to develop these new scenarios and to do away with the assumption that pump storage plants are mandatory.

The LCLTGEP has been compiled based on the results of the latest electricity expansion planning studies conducted by the CEB for the planning period of 2018-2037. 

 Ruwan Fernando, Judge of the Commercial High Court, Colombo, refused the interim injunctions sought by DFP Canada Ltd against SriLankan Airlines Ltd.

DFP Canada Ltd (DFP) filed action claiming that DFP was the actual company behind the highly controversial “Phoenix Duty Free Services” (“Phoenix”) and that DFP had a ‘right of first refusal and right to match an offer under the Supply and Concessionaire Agreement granted to Phoenix Duty Free Services in 2012 in violation of standard tender procedures of SriLankan Airlines.

The court also dissolved the enjoining orders previously issued. The Report of the Board of Inquiry headed by J.C.Weliamuna, PC heavily criticised the awarding of duty free supply and concessionaire contract to Phoenix violating the procedures of the company and this transaction is currently being investigated by the law enforcement authorities.

The Finance Minister has issued an Extraordinary Gazette Notification prescribing a format for suspicious transactions to be followed by institutions defined under Section 33 of the Financial Transactions Reporting Act (FTRA).

The notice informs the following designated Non-finance Businesses (DNFBs) of their obligation to report any transaction where there is reasonable ground to suspect that the transaction may be related to commission of any unlawful activity or criminal offence as defined in Section 33 of the FTRA: (a) Individual and collective portfolio management; (b) Investing, administering or managing funds or money on behalf of other persons; (c) Safekeeping and administration of cash or liquid securities on behalf of other persons; (d) Safe custody services; (f) Trustee administration or investment management or a superannuation scheme; (g) Casinos, gambling houses or conducting of a lottery, including a person who carries on such a business through the internet when their customers engage in financial transactions; (h) Real estate agents, when they are involved in transactions for their clients in relation to the buying and selling of real estate; (i) Dealers in precious metals and dealers in precious and semi-precious stones, including but not limited to, metals and stones covered by the Gem and Jewellery Act, No. 50 of 1993 when they engage in cash transactions with a customer; (j) Lawyers, notaries, other  independent legal professionals and accountants as defined in the Section 33 of the FTRA; (k) Trust or company service providers as defined in the Section 33 of the FTRA; (l) Offshore units in accordance with the definitions provided for the same in other written laws.

Accordingly, DNFBs are advised to use Schedule V of the said Gazette to report any suspicious transaction to the Financial Intelligence Unit. 

The German Federal Foreign Office together with the Ministry of Power and Renewable Energy of Sri Lanka, Deutsche Gesellschaft fur Internationale Zusammenarbeit (GIZ) GmbH and Sri Lanka Sustainable Energy Authority announced the second round of Green Energy 2017 Champion’ Campaign in Colombo yesterday.

The competition intends to inspire Sri Lankans to submit tangible ideas how to use renewable energies in their environment. A questionnaire will guide them to compose an action plan together with an estimated budget.

Now the initiative is looking for another blueprint “Green Energy Champion” who would become a show case for sustainable and clean energy solutions.The winning entry would be awarded with technical equipment worth up to Rs 10 million or EUR 60,000 and technical expertise for its implementation. The competition is open to small and medium sized enterprises, schools, universities, community based organizations, household groups and local government entities all around Sri Lanka. Five short listed candidates will be invited to a workshop where they will participate their communication and management skills and receive further inputs on renewable energy.

At the end of the workshop, the participants will pitch their ideas and the final decision on the winner will be made by an eminent jury including representatives of the Embassy of the Federal Republic of Germany in Colombo and Sri Lankan Sustainable Energy Authority.

Applications for the competition can be submitted between July 1 and August 18 that the campaign’s websitehttp://ift.tt/2srYcBY, where the application form and further information is available. (IH) 

 The government is committed towards adding more solar and wind energy to the national grid, and has promised to make the national grid a smart grid in another five years time, said Ajith C Perera Deputy Minister of Power and Renewable Energy.

According to Minister, Sri Lanka is to call tenders to purchase 875 megawatts of power shortly.

He made these commitments speaking at the launch of the ‘Green Energy 2017 Champion’ Campaign , organized by the German Federal Foreign Office together with the Ministry of Power and Renewable Energy of Sri Lanka, and the project implementing partner Deutsche Gesellschaft fur Internationale Zusammenarbeit (GIZ) GmbH and Sri Lanka Sustainable Energy Authority .

In order to add more solar and wind energy to national grid, it is necessary to have more storing capacity and safeguard smart systems in place.

Storage of energy is still high in another parts of the world as well, the minister said adding that as per the opinions of the specialists in Sri Lanka, the country can add more than 500 megawatts from solar energy without having the storage capacities.

During the next one and a half years, it is planned to add that capacity to the national grid. “As per the policy, in power generation, the government will invest in infrastructure, development of the systems, but the government will not invest in power generation.”

“As we have introduced fair tendering process, there has been a good response in the private sector both locally and globally to invest in this sector.”

With regard to solar power, Sri Lanka opened a competitive tender in this regard as result, the country managed to reduce tariff from Rs 22.10 per unit to Rs 17.01 per unit.In 2016, May the government opened the same tender with regard to the wind energy, through that tariffs were reduced from Rs 19 per unit to Rs 12.29 per unit, registering more than 40% reduction.

Speaking at the event, Jorn Rohde, German Ambassador to Sri Lanka and Maldives, stressed that political consensus is crucial for implementing and persisting renewal energy initiatives to meet set targets in the energy sector of Sri Lanka.

The ambassador also stressed the need to initiate climate mitigation efforts by both individual and state level to avert foreseeable environmental perils. 

 Lanka Salt Limited plans to make Sri Lanka a self sufficient nation in salt by 2020, said its Chairman, Ayyoob Khan.

Speaking at a special event at Lanka Salt he said several new measures have been taken in the last two years to increase production and efficiency. He said that during the last two and half years they introduced new salt fields in their three salterns, in Hambantota, Bundala and Palatupana and also deep tanks have also been established.

Khan said a new plant was established and also age old machinery wwere retired and new machines, vehicles and equipment introduced. The Chairman said that plans were under way to introduce new products such as Vacuum salt to the market in additional to industrial and Lak Lunu brands.

“The new products would be ready by 2019,” he said. Lanka Salt is an ISO certified company and their salterns are spread in a total area of 2,600 acres. The institution has 90% of shares with ETF and 10% with employees who account to over 1,000. The Chairman said that when the new board was appointed in March 2016 they found that in the past years salt has been sold for less than cost. “This has resulted in heavy losses and the new Board decided to increase the prices and also appointed agents all over the country for better distribution. “Today we have a total of 66 agents and the distribution is streamlined,” he said. According to data total consumption of local salt is 150, 000 metric tons including 120,000 for domestic and rest for industrial. “Sri Lanka’s Salt harvest up to 2017 October is expected to be 85,000 MT and by end 2018 we hope to increase this to 11, 000 MT and keep on the momentum and gradually increase to meet Sri Lanka demand for 2020.” Lanka Salt, Vice Chairman, Keerthi Munasinghe said that the total debt of the institution in 2015 was Rs. 33.5 million.

“In the following year we turned it around and paid Rs. 465 million to the government as tax. Lanka Salt earned a profit of Rs. 260 million last year and we also managed to have a fixed deposit of Rs. 500 million.

In addition we also released Rs. 180 million to the ETF and a further Rs. 20 million to our employees,” he said.

 Sri Lanka’s growth is expected to reach 4.7% percent in 2017 and grow marginally over 5 % beyond, driven by private consumption and investment growth, said Idah Z. Pswarayi-Riddihough, World Bank County Director for Sri Lanka and Maldives.

Speaking at the latest Sri Lanka Development Update (SLDU) of the World Bank she said that although the short to medium term growth will continue to be driven by non-tradable sectors, successful implementation of reforms should help the country to rely on productive tradable sectors in the long run.

“Inflation will pick up towards upper single digit level in the first half of 2017 because of past high monetary growth along with the increase of VAT collection. However, the base-effect will see inflation stabilizing around mid-single digit level towards the end of 2017.”

Low international commodity prices, though gradually increasing, will help maintain the downward pressure. In the medium term, the announced shift by the Central Bank to flexible inflation targeting will keep inflation in the single digits, while the exchange rate is left to adjust to market forces. Sri Lankan Government led reforms to improve competitiveness, maintain macro-fiscal stability and strengthen institutions, with broad support in the country, are key to robust economic growth, job creation and poverty reduction. She said that the lack of variety in Sri Lanka’s export basket is a grave area of concern and the regaining of General System of Preferences Plus (GSP+) is a good area to focus on.

The fiscal deficit narrowed from 7.6 percent in 2015 to 5.4 percent of GDP in 2016.

The real GDP growth for 2016 slowed to 4.4 percent, as sustained drought took a toll on the agriculture sector.

“The Government of Sri Lanka’s efforts has strengthened growth performance. However, extreme weather among other factors, has hindered the execution of the budget and impacted economic growth and exports performance” she added.

“While robust contributions from construction and financial services sectors is a good sign, Sri Lanka needs to continue to take forward its reform agenda if it is to adequately boost revenues and provide its people with more and better jobs”.

Swedish automaker Volvo Group has started sourcing engines for industrial applications from its equal joint venture with Eicher Motors, VE Commercial Vehicles, and may shift sourcing of engines for non-automotive products to India in the long run.

India is already the exclusive manufacturing hub for the 5-8 litre, medium-duty Euro VI engines for automotive applications for Volvo's home base in Europe. Two people aware of the company’s plans said Volvo Group plans to make India the main base for manufacturing engines for industrial applications.

An emailed query to the company seeking comments on the proposed plans remained unanswered as of press time Tuesday. Vinod Aggarwal, managing director at VE Commercial Vehicles, confirmed the company has started supplying medium duty enginees for industrial applications from its facility in Pithampur, Madhya Pradesh.

“Gradually, we will cater to more applications for non-automotive,” he told ET. “We will get into gen-sets. There are also some other non-automotive departments like construction equipment,” he said.

VE Powertrain, one of the five business verticals of VE Commercial Vehicles, already exports 2,000 engines for automotive applications every month to Volvo AB.

A separate production line has been set up in Pithampur for the manufacture of Volvo Penta engines.

The 5- and 8-liter engine Besides engines, Volvo AB is also likely to begin overseas sales of light duty UD Trucks later this year, said the sources cited earlier.

The trucks, to be built in Pithampur and meant for the Indonesian market, are now under trial and shipments will begin in the second half of 2017, they said.

Volvo Buses also intends to use the base in Bengaluru to export vehicles to western Europe in future, they said.

VE Powertrain currently has capacity to roll out 50,000 engines every year.

(Economic Times)

Introducing TVS King, the first 200cc three-wheeler in the Sri Lankan market

TVS Motor Company, a leading two-wheeler and three-wheeler manufacturer in India announced its partnership with Abans Auto, leading automotive retailer in Sri Lanka.

This tie-up has resulted in the reintroduction ofTVS King - the first 200cc three-wheeler into the Sri Lankan market.

As a part of the agreement, the company will leverage Abans network of over 2,000 showrooms and appointed dealers in strategic locations around Sri Lanka.

Furthermore, through Abans Finance potential customers can be provided with affordable financial packages towards the purchase of their TVS King three-wheeler.

Commenting on the partnershipR Dilip, Senior Vice President - International Business, TVS Motor Company, said, "Abans is a respected and trusted brand in Sri Lanka. Their auto subsidiary, Abans Auto has an unrivalled distribution of 1500 showrooms and touch points across the country. Known for providing superior customer experience in sales and service, it is an ideal platform for TVS King to gain acceptance in the country. At TVS Motor Company, we place immense focus on customer centricity and quality and we are confident that we have partnered right for our foray into Sri Lanka.”

“The TVS King is ideally suited for Sri Lankan conditions and is far superior to any other competing product. Affordably priced, together with the financial assistance given to prospective buyers through Abans Finance, we are confident that it will market well in our country” said Behman Pestonjee, Managing Director of Abans Auto.

TVS King, a futuristic three-wheeler having a good combination of Power, Style, Comfort and Fuel Efficiency, is designed for today’s cities. The TVS King is powered with an efficient 200cc, modern low friction 7-port engine having a peak torque at lower rpm which allows it to climb hills easily and enables the vehicle to be driven through congested city traffic without frequent gearshifts. This innovative engine operates at lower rpm’s for a given road speed, thus improving the fuel efficiency and reliability of the engine.

The TVS King three-wheeler comes equipped with a hand operated rear gear shifter, a unique feature not available on any competitive product. This feature further enhances the drivers comfort which greatly enhances the appeal of the TVS King three wheeler. Along with this feature, the TVS King three-wheeler has Powerful Twin Head lamps (35 watts) with bigger and brighter rear tail lamps and has a single large laminated glass windshield.

Attractive and spacious interiors further add to the styling of the vehicle which include a car-like dashboard with fuel level indicators and mobile phone charging socket, dual tone high quality seats and an integrated bumper. The TVS King three-wheeler comes equipped with a standard electric start that further reduces driver fatigue. The vehicle also has better head and legroom for both the driver and passengers, while the suspension and the seats are positioned so as to provide a superior ride for a longer duration.

Available in three models of Basic Model – GS, Fully Loaded Model – FLD, and Fun Bread – FB, the TVS King three wheeler is priced from LKR 691,850 and is available in 6 color variants of Red, Green, Blue, Black, Yellow and White can be purchased from all Abans Auto showrooms islandwide.

TVS Motor Company is a leading two and three-wheeler manufacturer and is the flagship company of the USD 7 billion TVS Group.

National Development Bank (NDB) partnered with Sri Lanka's premier lifestyle exhibition Home & You Lifestyle Fair 2017 as the Official Banking Partner. The mega lifestyle exhibition is all set to bring everything you need to create the perfect surrounding at the place you live.

The Home & You Lifestyle Fair will be presented for the 19th consecutive year by Aitken Spence Conventions & Exhibitions at the Bandaranaike Memorial International Conference Hall (BMICH) in Colombo from July 7 to 9

To many, home is a place where they are at peace and are able to be themselves. A home can be many things to many people. But most often it is the heaven on earth to live on with loved ones with beauty and serenity, whether it is a small house, apartment, a bungalow or a mansion.

Personal styles and designs may vary from taste to taste. However, each proud housekeeper will dream on beautifying and making their surroundings as comfortable and welcoming as possible. The Home & You Lifestyle Fair 2017 is the ideal place to be if you look for such serenity and it is all set to provide an unmatched experience to those who strive to take their living standards to the next level with brand new ideas and inspirations.

More than 15,000 visitors are expected at this annual showcase which unveils a vast array of products and services related to home decor, lighting, furnishing etc.and NDB Bank will provide loan facilities during the exhibition, enabling visitors to gain the maximum out of the popular lifestyle event.

The council of the Institute of Chemistry Ceylon awarded the ‘Distinguished Service Award 2017’ to Prof. S. P. Deraniyagala at the 46th Annual sessions of the Institute of Chemistry Ceylon. Prof. Deraniyagala is an active member of the Institute of Chemistry and has made a significant contribution to the academic programme of the Graduateship in Chemistry.

He joined the Institute in 1985 and has continued his service as a lecturer, examiner and course coordinator for inorganic Chemistry and was appointed as the second Honorary Rector of the College of Chemical Sciences in 2015. Professor Deraniyagala has been a Member of the Council of Institute of Chemistry Ceylon for many years has served in many capacities.

He is a Life Member of the Sri Lanka Association for the Advancement of Science (SLAAS) and a Member of the Research Board of Advisers, American Biographical Institute. He has been the Editor of the Vidyodaya Journal of Science from 2009 to date. Prof. S. P. Deraniyagala has numerous publications in internationally refereed journals and communications at conferences to his credit. 

The Board of Directors of Siyatha Finance PLC (a member of the Sampath Bank Group), in a CSE filing, has resolved to issue debentures by way of a public offer subject to the approval of the Central Bank of Sri Lanka.

The company plans to offer 10 million Listed Rated Unsecured Subordinated Redeemable Debentures of the par value of Rs 100 each, aggregating to the value of Rs I billion.

For the first time in Sri Lanka’s aviation history, Emirates will launch its double-deck Airbus A380 aircraft on flights to Colombo commencing August 14.

An official from Ministry of Transport and Civil Aviation said this service would be a once-a-week flight and it would operate with a stopover in a destination in the Far East. The Airbus A380 flies to Sri Lanka subsequent to the airport runway expansion concluded last April.

The Airbus A380 is a double-deck, wide-body, four-engine jet airliner manufactured by European manufacturer Airbus.

It is the world’s largest passenger airliner and the airports at which it operates have upgraded facilities to accommodate it.

The public is hereby notified that the Regional Sub-office of the Central Bank of Sri Lanka (CBSL) in Jaffna shifted its operations to Regional Office, Ariviyal Nagar, Kilinochchi with effect from 15 June 2017.

Accordingly, services provided by Jaffna Sub-office such as providing Employees’ Provident Fund (EPF) related services, maintaining of sales counter for CBSL publications, conducting awareness programmes on financing, development of managerial and business skills, promoting credit delivery mechanisms in the Jaffna region will be carried out through the Regional Office in Kilinochchi, in addition to the current operational activities of that office.

The Colombo Stock Exchange (CSE) announced the appointment of Dumith Fernando as a Director of the CSE Board.

Fernando was elected to the position at the 32nd Annual General Meeting of the CSE held on May 26, 2017, in place of Vajira Kulatilaka who stepped down from the CSE Board at the AGM.Fernando is an experienced international investment banker with over two decades in the industry in USA and Asia.

He led the acquisition of Asia Securities in 2015 and is its Chairman and controlling shareholder.

He is the former Managing Director and Group Chief Operating Officer of Credit Suisse, Asia Pacific, based in Hong Kong, prior to which he was Chief Operating Officer of Asia Pacific Equities at both Credit Suisse and JP Morgan overseeing equities business operations in 12 countries.

He has also held various positions in corporate finance, mergers and acquisitions advisory, private equity investing and corporate strategy at JP Morgan in New York and Hong Kong.

He is a senior advisor at Tybourne Capital Management (Hong Kong), a leading global asset management firm, as well as non-executive Chairman of several early stage companies.

The CSE Board of Directors comprises five directors elected by CSE member firms and four directors appointed by the Government.

Projects such as the Megapolis, of which the implementation is about to start are great openings for Sri Lankan engineers to contribute, said Minister of Industry and Commerce Rishad Bathiudeen at the 15th annual INCO 2017 Industrial Exhibition and Trade Fair concluded at BMICH last week.

“Projects such as the Megapolis, Colombo Port expansion, development of the region around the Hambanthota port and the Colombo financial city supported by China are great openings for Sri Lankan engineers to contribute for development,” Minister Bathiudeen said.

“Many Sri Lankan engineers have come up with innovative designs and construction plans for these projects.

Marine engineers have greatly contributed to Colombo port expansion designs,” he said. The Megapolis project which consists of a Tech City, a Logistics Area and a Marine Development Zone is one of the biggest challenges for Sri Lankan engineers.

Megapolis is expected to greatly modernize the Western province to attract large scale international investors as it is planned similar to Singapore but five times larger.

Even though the government wants to see more infrastructure development, it cannot always continue to fund large scale projects on its own. “We need to enlist private sector as well and are planning to use Public Private Partnerships (PPP).”

“For PPP, to be successful, they need to be supported by skills and technologies. In fact enhancing technological and engineering skills in Sri Lanka is important for us to ensure success of PPPs that we will be using in future,” he added.

India has indicated an interest in investing over US$ 1 billion in the East Container Terminal (ECT) of the Colombo Port, along with other projects like the oil tank farm in Trincomalee, under a public-private partnership with the Sri Lankan government, said Minister of Foreign Affairs Ravi Karunanayake.

Making the opening address at the commencement of proceedings of the seminar on ‘Emerging Issues in the Indian Ocean’ at a Foreign Policy Forum at the Lakshman Kadirgamar Institute, he said that Japan is also investing in key projects including in a LNG terminal (jointly with India) and is actively seeking more opportunities in Sri Lanka. China is investing over US$ 1.5 billion in building the Colombo Port and International Financial City (CIFC).

“However it is worth noting that although China is a large investor in Sri Lanka, foreign direct investment from China in other regional economies like Laos, Cambodia and Malaysia is much higher than to Sri Lanka,” he said.

He also said that ‘novel thinking’ has to come to the Foreign Service. “While ‘thinking global’, our foreign service must also ‘act local’ by utilising strategies of para-diplomacy,” the Minister said.

“Just as India has done with its own diaspora, we must reach out to overseas Sri Lankans. They have networks and knowhow that we currently do not even appreciate, let alone leverage.”

“In 2013, the University of Moratuwa had the most number of student projects accepted by Google’s Summer of Code programme for the seventh year running, beating all other universities in the world, including the National University of Singapore (which ranked in seventh place) and Peking University (which ranked ninth). Our IT professionals have created software for global clients like the London Stock Exchange.”

“Achievements like these can be multiplied if our foreign policy goes beyond formal diplomatic relations to establishing valuable people-to-people links with key partner economies.”

“Lankan missions abroad can assist the thousands of Sri Lankan students studying abroad, including in India and China, to obtain internships in high-growth companies and new industries. These students may then return to Sri Lanka with networks that they can tap. Even if they remain abroad, we can tap them for ideas, network introductions and other assistance.”

“If we want young innovators, we must be committed to a culture of innovation. We can’t promise casual clothes and table tennis at our offices like in Silicon Valley, but we can start with new practices like an Ideas Lab, online and in person, and an ‘open door’ policy. Many foreign service officers are already offering valuable suggestions,” the Minister said.

It’s very disappointing to note that Sri Lanka’s so-called number one telecommunications service provider, Sri Lanka Telecom (SLT), does not have a Research and Development Unit and this is a major flaw, said Minister of Telecommunication and Digital Infrastructure, Harin Fernando, at the World Trade Centre.

Speaking at the launch of Customer Solutions Innovation and Integration Experience Center (CSIC), one of Huawei’s further contributions to support Sri Lanka’s digital economy, yesterday, he said that not a single cent has being allocated by the company for R&D. “It’s true that there is a team that develops apps but this is not enough.”

He said he will take steps immediately to set up an R&D Unit at SLT and then follow it by allocating 5% of SLT revenue to maintain this unit. He also said that the fourth industrial revolution in the world revolved around digital infrastructure and the government is paying a key emphasis in this area. Minister Fernando said still Sri Lanka offers one of the lowest telecommunications tariffs in the world. He also said he had made several appeals to Sri Lankan telecom companies to set up CSIC Units and only Huawei responded.

“The establishment of CSIC is the connection with the MOU that the Sri Lanka government signed with Huawei when Prime Minister Wickremesinghe and I visited Huawei headquarters in China last year. As a leading global ICT company, Huawei’s value and contribution will support ICT development in Sri Lanka,” said Yang Zuoyuan, Economic and Commercial Counselor of the Chinese Embassy in Sri Lanka.

He said that if a country sees a 20% growth in their ICT sector, that nation would see a 1% growth to their GDP.

Commenting on the opening, Shunli Wang, Huawei Sri Lanka’s CEO said, “The establishment of CSIC is one of Huawei’s further contributions to support Sri Lanka’s digital economy and ICT development following the national broadband forum and ‘Seeds for the Future’ programme we organized last year. We are willing to share our global best practices and experience and work with stakeholders to make innovations and support Sri Lanka to be a digitally empowered nation.”

China's economy continued to improve in the second quarter, with corporate profits rising and hiring up, a private survey showed, but it suggested the Asian giant may have to brace for tougher times ahead even though firms have been able to weather a tighter financing environment.

The quarterly survey of thousands of Chinese firms by China Beige Book International (CBB) showed that while the property sector slowed, manufacturing improved further and the retail and services industries bounced back after a difficult first quarter.

That reinforced a flurry of recent data and policy makers' comments that indicated authorities were working to curb financial risks and keep the economy on an even keel heading into a key political meeting this year. The survey showed surprisingly strong performance in the commodities sector despite some price weakness in the second quarter, with the aluminium sector particularly strong.

The improving economy, especially the healthy labour market, is no doubt welcome news ahead of a leadership revamp at an autumn congress of the ruling Communist Party of China.

Yet signs of stress in the corporate sector pointed to a bumpy ride for businesses. CBB said cash flow was negative for many companies and inventory levels in the second quarter was at the highest in the history of the survey.

That is in line with official data showing growth in industrial inventories picked up to over 10 percent in April, sparking worries of weak demand.

CBB said there are signs tougher times could be ahead for Chinese companies during a period of deleveraging and rising interest rates.

"It remains true that either rates have to come plunging back down, as the (state planner) recently called for, or the present level of corporate activity is headed for a cliff," CBB said in its report.

As the government stepped up its campaign to curb debt risks and stabilise the financial sector, growth of China's broad money supply came in at the slowest in at least two decades in May, though bank lending remained solid.

The CBB survey showed the corporate sector started to feel the effect of tighter credit conditions in the second quarter after escaping relatively unscathed in the first three months of the year, with the cost to take a bank loan the highest since 2014. (Business News)

Excessive measure by authorities to protect corn farmers would have devastating impact on the chicken industry in Sri Lanka, warns industry specialists.

Sri Lankans rely heavy in chicken to meet their required protein needs and the increase in prices will limit to a large extent the consumption of chicken resulting in malnutrition. The annual per capita consumption of chicken in Sri Lanka, which was barely 2.5 kg a decade ago, has now reached 10.5 kg and is likely increase further in the near future. While consumption has risen more than three-fold, prices have remained virtually unchanged during this period in comparison to inflation.

The government in a bid to prevent chicken prices from increasing introduced a control price per kilo even after the control priced was removed by the government. But this situation can change quickly if authorities continue the policy to protect corn farmers and levy taxes on corn which will further increase corn prices,allege industry sources.

Furthermore, chicken producers in Sri Lanka has been able to keep chicken pricesin reasonable levels in by adoptingextremely efficient practices across their production, processing and distribution systems. They have implemented global best practices in technology and breeding, which has led to more efficient production and significant reduction in costs, which they have passed on to the consumer.

Similarly chicken producers are heavily taxed by the government and the total tax income from the chicken industry is colossal. Current corn prices are on the rise and have increased. This will have a direct impact on chicken prices resulting in price a hike per kilo. This is in the backdrop where world market prices of corn stands. The government’s measures to impose a tax per kilo of corn will further jeopardize the poultry industry in SriLanka.

The repercussion of the poultry industry suffering will in turn have a very negative effect on the corn industry which will lose its market in the face of low demand for corn. Furthermore in the wake of the local poultry industry weakening the government coffers will suffer heavily losing the per kilo tax revenue and will need to import chicken which will cost the country US$ 20m per month of foreign currency.

Despite all these drawbacks chicken producers such as Crysbro have gone a step further by fully integrating their entire operations. Crysbro carries out virtually every activity that is required to produce its 'Fresh Upcountry Chicken'. From producing grains in its extensive farmlands, converting the grains into poultry feed at its feed mill plant, to raising parent birds and broilers, processing meat and packaging it – right down to delivering the chicken to supermarkets and retail outlets. In fact, Crysbro is Sri Lanka’s first chicken producer to achieve full vertical integration.

Yet, rising costs remain an issue that chicken producers have to constantly battle against. On top of this maintaining a corn protectionist policy by the government will further jeopardize the chicken industry in Sri Lankan leading to increase in chicken prices and putting at stake the livelihoods of thousands employed in the industry.

The excessive corn protectionist policy also may seem unusual, when one considers the fact that the poultry industry continues to make a significant contribution towards the national economy. In addition to saving millions in foreign exchange, which would otherwise be spent on importing chicken, the industry offers direct and indirect employment to hundreds of thousands of people.

Crysbro alone offers employment to thousands of people as Contract Breeders, helping their families rise above the poverty line.

In making chicken affordable to a majority of people by keeping prices low through efficient production practices, chicken producers have played a singular role in increasing the per capita consumption of animal protein, which is vital for the physical development and well-being of the population, especially the youth.It should be noted that chicken remains the most affordable source of non-plant based protein in Sri Lanka.

If the authorities are serious in maintaining the current chicken prices it is required togive relief to chicken producers, providing them with more incentives, as well as a conducive regulatory and fiscal climate could help the industry grow.

In fact, if one considers the international per capita consumption of chicken which currently stands at 17 kgs, about twice our national average.

Sri Lanka's chicken industry still has a long way to go but the corn protectionist policy and increase of corn prices will have a very negative impact on it. Sri Lanka’s poultry industry is one of the most efficient industries but now at the risk of facing destruction due to the incorrect shortsighted policies of the government, an industry specialist said.

Chief Minister of the Southern Province of Sri Lanka Shan Wijeyalal de Silva presents a special award to publisher Vijitha Yapa as a pioneer from the South in the Book trade in Sri Lanka and for promoting Sri Lanka books overseas, at the inauguration of the Southern Province International Book Fair last week in Galle. Vijitha Yapa was born in Waralla in the Southern Province and had his early education at the village school.

The Blue Mountain Group's most iconic real estate development to date, Achilleion, was recently recognized as one of the top three apartments in the Asia Pacific region, at the Asia Pacific Property Awards 2017, which took place in Bangkok, Thailand, recently.

Achilleion received a record number of eight awards including two five-star awards and emerged as the only Sri Lankan real estate development to be honoured at the event.

This recognition will now enable Blue Mountain's Achilleion to compete against global real estate titans for the title of ‘Best Apartment in the World’ at the ‘World Property Awards 2017’ in November later this year.

Dr. Hiran Hettiarachchi, Blue Mountain Group Chairman, received the awards on behalf of the entire Blue Mountain team, at an exclusive awards ceremony and gala event that were attended by the region's top real estate professionals and developers.

Sri Lanka's Achilleion shared the limelight with other top developments, the Bulgari Hotel and Residences in Shanghai, and HBS Towers in Mumbai.

Achilleion also won two five-star awards in the ‘Best Apartment’ and ‘Development Marketing’ categories.

The property also emerged as an award winner in the ‘Residential High-Rise Development’, ‘Interior Design Apartment’, ‘Developer Website’, ‘Development Marketing’ and ‘Best Apartment’ categories.

Dr. Hettiarachchi said: “I am truly honoured that Achilleion was ranked among the top three apartments in the entire region and I was pleased that our company was able to bring glory to Sri Lanka and showcase the strength and quality of our growing real estate industry.

Having secured so many wins at the regional award show, I am looking forward to our team vying for the ‘Best Apartment in the World’ award later this year being considered for this prestigious global accolade, is a significant accomplishment in itself for our entire team.”

Heralded as one of the largest projects of its kind in the residential real-estate space in Sri Lanka, Achilleion is a landmark venture for the Blue Mountain Group, which will bring seven-star luxury to the city of Colombo. To deliver a world-class project that has a strong local flair and character, Blue Mountain has partnered with the renowned Singapore-based Palmer and Turner Group, Sri Lankan architect Surath Wickramasinghe and interior design firm from Singapore, Index. 

One of Sri Lanka’s most technologically innovative bank, HNB received resounding recognition for its efforts to drive a new paradigm of service culture in the domestic industry, with its recent award for Best ATM Network of the year at the LankaPay Technnovation Awards 2017.

Currently Sri Lanka’s first and only payment technology innovation awards programme, the Technnovation Awards 2017 was organized by Lanka Clear Ltd, the operator of Sri Lanka’s national payment network, LankaPay.

The awards themselves were focused on recognising the steadfast efforts of member banks and non-banking financial institutions (NBFIs) that have excelled in the promotion of digital transactions while simultaneously driving down the cost of financial transactions through the use of Sri Lanka’s national payment infrastructure.

HNB’s award for Best ATM Network among Category A banks spanning Sri Lanka’s largest commercial banks operating ATM networks in excess of 400 machines – placed the bank at the forefront of the Sri Lankan industry.

“We couldn’t be happier about being recognized by Lanka Pay as the Best ATM network at the Tech Innovation awards 2017” said Mangala Wickremasinghe, Head of Electronic delivery channels of HNB.

“These awards are more validations of progress that HNB has mad in digital banking space over past few years. LankaPay has clearly recognized that Hatton National Bank’s smart ATM network attracts customers of all Banks and Non-banking financial institutes of Sri-Lanka more than any other ATM network and is far superior in technology & quality of service,” he further said.

In keeping with HNB’s recent efforts to drastically expand its scope of technologically enhanced services, HNB has been driving progressive improvements into its ATM network, having successfully implemented the “Very First” cash Recycling machine in the Island HNB has incorporated cashless payments in addition to the ability to make direct deposits to HNB customers through its state-of-the-art Customer Deposit Machines (CDM). Press Release

The awarding of certificates to students of Automobile Engineering Training Institute, Orugodawatta was held at Bandaranaike Memorial International Conference Hall (BMICH), for the 25th consecutive year.

Automobile Engineering Training Institute functions under the National Apprentice and Industrial Training Authority of the Ministry of Skills Development and Vocational Training.

Three hundred and fifty skilled craftsmen who followed Automobile Engineering Technology under 6 criteria at Automobile Engineering Training Institute of Japan Tech, a prominent government body, received the NVQ level 4 certificates. Minister of Skills Development and Vocational Training Minister Chandima Weerakody was the Chief Guest, Deputy Minister of Skills Development Karunarathne Paranawithana and Chairman Vocational Training and National Apprentice Industrial Training Authority Shehan Senevirathne,

The website of the Commercial Bank of Ceylon was adjudged the best in Sri Lanka’s financial sector at the inaugural SLT ZeroOne Awards presented by Sri Lanka Telecom.

The country’s largest private bank was presented the award for ‘Best website or Microsite – Finance Sector’ at an event at Hilton Colombo on June 22.

The award recognises excellence in website or microsite design and development and considers how the overall functionality of the site, structure, navigation, content, and design meet the site’s objectives. In determining the winners, the creativity and complex interactive features of contending websites were taken into account.

The panel of eminent judges looked at the overall architecture of the sites, the User Interfaceand how it follows current design principles to create a seamless experience for users, as well as the achievement of key performance indicators (KPIs) set for the site.

“Our website is a vital part of our engagement with our customers in Sri Lanka and around the world and in the delivery of services in the ‘anytime, anywhere’ paradigm,” Commercial Bank Deputy General Manager- Marketing Hasrath Munasinghe said.

“Every effort is made to keep pace with evolving technology to ensure that the website offers the best and most secure service possible. This award affirms the success of our efforts.”

Presented for the first time, the SLT ZeroOne Awards event was organised to recognise institutions, individuals and brands for achievements by leveraging digital technologies.

The use of the latest technologies for animation and interaction augmenting speed and user experience, along with several important changes in the way information is organised and presented and made user-responsive are the stand-outfeatures of the Commercial Bank’s website. Furthermore, the site offers enhanced responsiveness to access via phone devices and tabs.

An enhanced Geo-location functionality for the Bank’s branch network enables the website to automatically pick up the locations of users who have allowed it, and show them the closest available branch, with distance calculations.

The streamlining of product information through an all-inclusive mini product portal from which users can get whatever information they need without clicking through to other pages, and persistent favourite pages that make it possible for users to save pages they frequently visit,significantly enhance the user experience

Commercial Bank’s overseas operations encompass Bangladesh, where the Bank operates 19 outlets, Myanmar, where it has a Representative Office in Yangon, the Maldives, where the Bank opened a fully-fledged Tier I Bank with a stake of 55% in September 2016 and Italy, where the Bank launched its own money transfer service in November 2016.

Sri Lanka Telecom host the SLT Zero One Awards ceremony at the Grand Ballroom of Hilton Hotel in Colombo on June 22.

Present at the event was the Minister of Telecommunication and Digital Infrastructure, Harin Fernando, the Group Chairman of SLT, P.G Kumarasinghe Sirisena, the GCEO of SLT, Dileepa Wijesundera and other senior members of the organization’s management together with the crème de la crème of all related sectors and industries.

Speaking at the event, Minister Harin Fernando congratulated Sri Lanka Telecom on having organized the SLT Zero One Awards – the country’s first awards program dedicated to digital excellence. Minister Fernando also emphasized the importance of encouraging people to embrace the digital lifestyle and engage more enthusiastically in ICT and technology.

The awards were divided into two main categories Institutional and Individual. Lifetime Awards were also presented to professionals who have made significant contributions to the digital industry Prof. Abhaya Induruwa in recognition of the yeomen contribution he has made to the computer education sector and data communication industry over the years by pioneering ICT education and by playing a pivotal role in the deployment of the Internet in Sri Lanka.

Krishan Canekeratne was recognized for his exceptional entrepreneurial drive that creates opportunities for Sri Lankan talent to participate, contribute and be recognized on the world stage; Jayantha Fernando, an Internet Law and Policy Expert who has pioneeredICT Legal policy reform and the establishment of Internet governance processes in Sri Lanka.

The overall winners of the ‘SLT Zero One awards’ were as follows, ‘Best Digital-Enabled Product and Service’ Sampath Bank PLC; ‘Best Digital Integrated Campaign’ Litro Gas Lanka Limited; ‘Best Community Empowerment Program’ ikman (Pvt) Ltd; ‘Best Digital Media Agency’ eMarketingEye (Pvt) Ltd; ‘Best Website or Microsite’ Laugfs Holdings Ltd; ‘Best Use of Mobile’ zMessenger (Pvt) Ltd; ‘Best Software/Application Developer’ Nuwan Dehigaspitiya.

As the pioneer of the country’s ICT industry, Sri Lanka Telecom has always been at the forefront when it comes to introducing innovative forms of promoting the nation’s digital evolution, and the SLT Zero One Awards are but the most recent testimony to this fact.

Department of Census and Statistics reports that according to the findings of their survey 1,122,711 persons are in the country.

The highest number (1,063,086) of persons were engaged in the manufacturing sector industries. Of this 27,311 persons,

were involved in industries of mining and quarrying sub sector. Number of persons engaged in industries related to electricity, gas, steam and air conditioning supply were reported as 20,180 and the number of persons engaged in water supply, sewerage, waste management and remediation activities are reported as 12,134.

The industrial output was estimated as Rs 4,152 bn and estimated Intermediate consumption was Rs. Bn 2,494, resulting the total value added was Rs 1,658 bn. Gross addition to fixed assets from the industries was Rs. 163.4 bn and salary and wages of this sector was Rs. 309 bn.

Manufacturing sector was the largest sub sector in the industrial sector of the country, and it’s share in the total industrial establishments was 82.8% and the persons engaged in this sub sector were 94.7% to the total number of persons engaged in the industries.

The industrial output from the manufacturing industries was Rs. 3,632.9 bn (87.5%). Intermediate consumption and value

added of the manufacturing industries were Rs. Bn 2,238.7 (89.8%) and Rs.1,394.3 bn (84.1%) respectively. 

Ube Singapore Holdings Pte Ltd has purchased 10,692,000 ordinary voting shares of Tokyo Cement Company (Lanka) Plc at Rs. 72 yesterday. This is in compliance with the Rule 36 of the Take-Overs and Mergers Code

of Sri Lanka 1995 (as amended in 2003). Subsequent to this transaction, Ube Singapore Holdings has acquired 10% of the issued capital of Tokyo Cement Company (Lanka) PLC. 

The Life Fund of Ceylinco Life crossed Rs 80 billion in May 2017, making it the fastest-growing Life Fund in the local industry, the life insurance market leader has announced.

The company said this milestone was achieved in a little more than 29 years of operation, a feat as yet unmatched in Sri Lanka.

To reach Rs 81.9 billion at end May 2017, Ceylinco Life’s Life Fund grew by more than Rs 30 billion or 63 per cent over the preceding 45 months, from Rs 50 billion in August 2013. It surpassed Rs 70 billion in April 2016 and grew by more than Rs 10 billion in the 12 months that followed.

“The size of a life insurer’s Life Fund and its rate of growth are key indicators of the financial strength and stability of the company,” Ceylinco Life Managing Director/CEO R. Renganathan said.

“The growth of our Life Fund is indisputable evidence, along with our market share in terms of premium income, of why Ceylinco Life has been the country’s leading life insurer for the past 13 years.”

Ceylinco Life also reported that premium income had reached Rs 5.9 billion in the first five months of 2017 and that the company has paid Rs 2.6 billion in net claims and benefits in this period.

Meanwhile, the company’s investment and other income grew by 24 per cent over the corresponding period of last year to reach Rs 3.9 billion as at 31st May 2017. Ceylinco Life’s investment portfolio totalled Rs 89.9 billion at that date, reflecting a growth of Rs 3.9 billion in just two months, and a growth of Rs 9.2 billion since end 2016.

Total assets stood at Rs 106.5 billion at end May 2017, reflecting growth of Rs 10.1 billion or 10.4 per cent in the five months from 31st December 2016. Ceylinco Life’s shareholders fund had reached Rs 12.5 billion as at 31st May 2017.

Adjudged Sri Lanka’s Best Life Insurer in 2016 for the third consecutive year by World Finance, Ceylinco Life commenced operations in January 1988 and has close to a million lives covered by active policies. The company is acknowledged as the benchmark for innovation in the local insurance industry for its work in product research and development, customer service, professional development and corporate social responsibility. 

Given the shift in global power to the Indian Ocean, Sri Lanka’s geostrategic location places it in a unique position to serve as the fulcrum of a modern Indian Ocean region, said Minister of Foreign Affairs Ravi Karunanayake.

Speaking at the IOMAC-ONS Certificate Course Awards Ceremony in Integrated Marine Affairs Management at the BMICH, he said that in a modern context, one of the most important sea lanes of communication runs just South of Dondra Head where close to 200 ships traverse daily.

“These ships take energy supplies to countries in East Asia and beyond,” the Minister said.

“Sri Lanka can exploit its location to gain significant economic benefits while simultaneously shouldering the responsibility of ensuring the safety and security of the vessels passing so close to its shore,” he said.

“Being an island nation the Ocean that surrounds us can be both a source of strength or weakness, depending on our ability to effectively exploit its geostrategic potential.”

“The sea is a strategic part of the country’s security. Maritime security is of critical importance for the protection of our resources and keeping the country safe from external threats. Our waters are expected to contribute significantly to economic growth in time to come. This necessitates the balancing of competing interests in order to conserve our waters and protect the sea as a long-term resource,” Minister Karunanayake said.

“Whilst fortune has favoured Sri Lanka with a unique geographic location, it remains in our hands to identify and develop our strategic potential and value. I believe the development of our strategic potential is intrinsically linked to the Indian Ocean and Sri Lanka is well placed to play a central role in Indian Ocean Affairs in the future”.

“I believe this well captures the centrality of Ocean Affairs to Sri Lanka. Our very survival will depend on safe, secure, clean and sustainably managed oceans.” 

Celogen Lanka (Pvt) Ltd opened a news plant to manufacture pharmaceuticals, recently at the BOI Kandy Industrial Park at Pallekelle.

The new plant was formally opened by President Maithripala Sirisena, with Rajitha Senaratne - Minister of Health and Indigenous Medicine and Upul Jayasuriya, Chairman of Board of Investment of Sri Lanka.

The manufacturing facility is very significant because it is a joint venture between Sri Lankan and Indian entrepreneurs with an investment value of US$ 6.6 million. It will create employment for 150 workers including 80 university graduates. The Company will be producing a wide range of tablets including Metformin, Losartan potassium and Atorvastatin, capsules such as Omeprazole and Soft Gel Vitamin A, E and A & D.

Currently Sri Lanka imports approximately US$ 1 billion worth of pharmaceutical products and is almost entirely dependent on imports. The Government’s ambitious target is to reduce imports of pharmaceuticals by 70% by 2020.

Hence the manufacture of pharmaceuticals is a targets sector of the government for import substitution. It is also a thrust sector of the BOI and is actively promoted by the Board. 

The vehicle market experienced a rebound in May from a slow April due to the extensive New Year holiday. However on most categories demand remained weak due to high taxes, restrictions on LTV and high interest rates.

According to J. B. Securities survey, motor car registrations were 2,811 units in May up from 2,632 in April but significantly down from 3,664 units 12 months ago. Brand new car registrations recorded 981 units in May up from 885 units in April but significantly lower than 1,767 units 12 months ago. Small cars make up 94% of the category.

Pre-owned motor car registrations recorded 1,830 units in May marginally up from 1,747 in April but marginally down from 1,889 units 12 months ago. Premium brands recorded 64 units in May up from 50 units in April but down from 81 units 12 months ago. SUVs recorded 475 units in May up from 426 units in April but significantly down from 754 units 12 months ago. Hybrids recorded 1,821 units in May up from 1,682 units in April but down from 2,259 units 12 months ago. Only 15 units of 1,821 total registrations are categorized as brand new, the rest have been imported as preowned vehicles.

Vans recorded 807 units in May up from 695 units in April and significantly up from 319 units 12 months ago. Two-wheeler registrations were 30,917 units in May recovering from 26,261 units in April but slightly down from 32,469 units 12 months ago.

Pickup truck registrations recorded 167 units in May up from 123 units in April but down from 254 units 12 months ago. 

Sri Lanka should not miss the opportunity to implement the long-delayed fuel pricing formula since oil prices have softened, said Economist Murtaza Jafferjee from J. B. Securities.

“Petrol is in underpriced in Sri Lanka, and there remains a case to further increase prices to fully reflect all externalities especially congestion and traffic accidents. Further, with more fuel-efficient vehicles due to hybrids and small engines the tax intensity per unit of road mileage has gone down over the years,” Jafferjee said.

Diesel which is significantly underpriced, enjoys a post-tax subsidy and there are no corrective taxes applied although consumption is more than 50% of Petrol.

“Although international oil prices were down by 50% in 2016 in comparison to 2014 the trade deficit increased from USD 8.26 billion to USD 9.09 billion (+10%) due to high imports.

Over the last one month Brent crude has dropped by 16.5% (however, it had rallied in May), Gasoline (Petrol) is down by 8.33% and Gas Oil (Diesel) is down by 10% - there is always a lag between crude and distillates due to inventory that refineries carry.

“There is also a strong case to gradually introduce corrective taxes to both petrol and diesel to account for externalities; this can be done with increments of Rs 0.5 a litre per month so that the consumer will not feel the pinch, ”he said.

On a per liter basis Petrol retails at Rs 117, the taxes are approximately Rs 56.50, one month ago based on spot Gasoline prices the loss was Rs 12.50, it has now reduced to Rs 8. Sri Lanka consumes around 130 million liters a month, even at reduced world market prices the loss to the industry due to under recovery of taxes is Rs 1.04 billion a month, if the current trend holds it works out to Rs 12.48 billion a year.

On a per liter basis Diesel retails at Rs 95, the taxes are approximately Rs 29.50, one month ago based on spot gas oil prices the loss was Rs 6.70, it has now reduced to Rs 0.45.

The country consumes around 200 million liters a month, at the current reduced world market prices the loss to the industry due to under recovery of taxes is Rs 90 million a month, it was Rs 1.34 billion a month ago.

At the refinery level Diesel is normally a few percentage points more expensive than Petrol. Due to lower taxes and under the current administered price Diesel is at 23% discount to Petrol. Most items accrue a duty of 30%, NBT of 2%, PAL of 7.5% and VAT of 15% thus the taxes on a finished good import is 62.5%, the tax on Diesel at current spot prices is 51.3% and on Petrol it is 97.6%.

Petroleum products are imported, if they are not priced appropriately demand will be more than what it should be, for example in 2016 Petrol volumes grew 19% and Diesel volumes grew 16% whilst real total consumption grew only 0.73%.

Underpricing leads to excess consumption creating massive traffic jams on the roads, pressures the balance of payment and results in exporting the country’s meager wealth to oil exporting countries.

Compared to Sri Lanka Petrol in Chennai (India does not have uniformnational prices) and Bangladesh is 36% and 39% more expensive respectively but 9% cheaper in Pakistan. In the case of Diesel, it is 42%, 25% and 30% more expensive in Chennai, Pakistan and Bangladesh respectively.

“We price diesel at a 18.8% discount to Petrol but it is at a 15% discount in Chennai, at premium of 11.3% in Pakistan and at a discount of 24.4% in Bangladesh,” he said.

Sri Lanka’s GDP per capital (2015 World Bank figures) at USD 3,926 is more than double that of India (USD 1,593), Pakistan (USD 1,435) and Bangladesh (USD 1,211). 

Hotel Show Colombo 2017, the exhibition that serves as a showcase for hotel supplies and services and designed for leading industry players, will kick-off on June 30 and end on July 2. This enhanced exhibition in the heart of the city, is geared to showcase state-of-the-art equipment and innovative technology focused on a sustainable greener environment theme, the way forward for Sri Lanka’s future in the tourism industry.

The theme 'Move Forward – think Green – Maximize Sustainability' will be reflected throughout the show. Chief guest at the media launch held on June 19 was the Minister of Tourism Development and Christian Religious Affairs, John Amaratunga.

Hotel Show Colombo 2017, the largest hospitality show is organized by the Ceylon Hotel Schools Graduates Association (CHSGA) and CDC Events and Travels (Pvt.) Ltd. and is backed by the Government and Tourism Authority of Sri Lanka.

Apart from featuring an impressive host of international and local brands, this augmented edition of Hotel Show Colombo 2017, will feature for the first time seven vital segments of the hospitality and allied sectors, namely, Hotel Show Exhibition, Colombo Food Festival, Bocuse d’Or live cooking competition organized by Bocuse d’Or Sri Lanka, National Barista Championship, Room Stylist Challenge, Seminars and Hospitality Industry Business Gathering.

Seminars will cover three key topics: financial sustainability, reaching the new age customer and importance of environment sustainability for tourism, which will add value to both buyers and sellers.

Also in the pipeline are various events and activities to be staged alongside the Hotel Show, designed to bring industry players in the hotel, restaurant and foodservice sectors closer to buyers.

Since 1998, the event has been delivering business success for players in these sectors. Growing edition after edition, the trade show is now a well regarded sourcing and networking arena serving more than half of the total number of buyers who visited the show.

The Hotel Show Colombo 2017 will give these local exhibiting companies a boost and exposure to regional and international markets by building on their networks and distribution channels. At the same time, visitors will be able to discover the latest technologies and innovations that our home-grown companies provide,” says Sanjeeva Perera, President Ceylon Hotel School Graduates Association.More than 2,000 pre-registered bookings of exhibitors and 200 hotels, including its event Diamond Sponsors, Suyamas International (Pvt.) Ltd., King Coil and Gold Sponsors Pragmatic International, NITMO, Abdul Rahims and Sperries will showcase their products to over 10,000 visitors comprised mostly of people representing the industry during the three days. 

The Industrial Services Bureau(ISB) of the Wayamba Provincial Council together with the Institute of Supply and Materials Management (ISMM) has organized a `three month course on Supply Chain Management for those who are in the private and public sector organizations to enhance their knowledge, said President ISMM Nalin Silva.

Speaking to Daily News Business he said the first program for 2017 had been launched on June 18 with the participation of 25 students. The ISMM provides course materials as well as the lecture panel to run the program and the ISB provides all the infrastructure services to ensure the smooth running of the program. The President of the ISMM requested the authorities in the Wayamba District who are custodians of industries and private entities to get the maximum benefit from the extended services of ISMM to Wayamba. This will enable the growth and development of their organizations through these proper carrier development programs which were now in progress at the Industrial Services Bureau of Kurunegala. 

Continuing in its effort to provide medical facilities to underprivileged senior citizens, Sri Lanka's premier commercial establishment Lanka IOC has agreed to extend its support to HelpAge Sri Lanka (HASL) to conduct medical and eye camps for needy elderly citizens.

The Lanka IOC management has agreed to sponsor 12 mobile medical camps (MMU) with HelpAge during the next six months of this year. These medical camps will be conducted covering many districts of Sri Lanka

The elders will be examined by a special team of doctors, eye specialists and trained nurses at the mobile buses which have latest eye care and medical equipment. A doctor also attends the camps to examine elders who suffer from non-communicable diseases (NCDs).

HelpAge statistics reveal that the Lanka IOC had also sponsored mobile medical and eye camps during the first six months of this year in the districts of Matara, Akuressa and Ratnapura.

These camps benefitted about 800 elders who had various medical issues and eye ailments.

In addition, Lanka IOC also conducted medical and eye camps in Vavuniya, Hambantota, Matara, Colombo and Galle districts during last year and these camps benefitted over 900 elders.

HelpAge Sri Lanka which is a sister organization of HelpAge International, UK, a non-profit charitable institution that works to resolve the social, medical and low vision issues faced by destitute Sri Lanka's senior citizens. Speaking at a ceremony held in Colombo, Lanka IOC Managing Director Shyam Bohra highlighted that Lanka IOC always been helping needy citizens in the country to improve their vision impairment and health conditions through their CSR initiative.

Lanka IOC Senior Vice President (Retail Sales and HR) Siddharth Agarwal said in addition to various social services, conducting free mobile medical and eye camps for elders are also a part of their CSR initiative.

HelpAge Executive Director Samantha Liyanawaduge also appreciated the IOC management for making such an invaluable contribution towards a needy section in our society.

Executive Director Liyanawaduge said that HelpAge expects more similar donations in the future. IOC, Sales Manager Suren Gomes also attended. 

Sri Lanka faced one of the worst natural disasters in recent times. The floods and landslides had caused extensive damage to lives and property in ten major districts around the island.

Standing by its policyholders during these trying times, Allianz Lanka provided a ray of hope, reassuring them of a future where they would be able to return to their day to day lives.

Working against the odds, the insurer leveraged the resources of its widespread network to respond to affected policyholders and provide them with the necessary relief assistance.

Allianz Lanka’s teams worked tirelessly to rapidly process all flood related claims at the earliest and have already settled almost all of them.

“As the nation recuperates from this telling time, Allianz is proud to state that we were able to keep to our promise of unprecedented service by providing the means to rehabilitate and uplift our customers. As a company deep rooted with the notions of customer centricity, Allianz has been able to be a beacon of hope to many an individual through these unfortunate times,” said Dennis Hewagama, General Manager Sales and Distribution, Allianz Insurance Lanka.

Allianz Insurance Lanka and Allianz Life Insurance Lanka known together as Allianz Lanka, are fully-owned subsidiaries of Allianz SE, a world leader in integrated financial services. Having started out as a Greenfield operation in 2005, it has emerged as one of the fastest growing insurance service providers in the country.

The company prides on supporting its clients’ business strategy by understanding their risk profile and needs, and providing individual solutions from its world class portfolio of products and services.

JASTECA Institute of Management announced that a Japanese management day seminar on the concept of kaizen

will be led by Tony Nakata, a kaizen professional from Japan on July 15 at Sasakawa Hall, Colombo 3.

The seminar titled 'Kaizen: the Secret to Achieve Production Efficiency' will be held in English.

Nakata has worked for more than 30 years in Sony Corporation, which is the world leader in precise quality and productivity. He was involved in improving operations of about 250 partner companies in Japan, China and Latin Amercia which are assemblers and part manufacturers for Sony Corporation.

He is currently engaged by Sri Lanka by Strategic Management Alliance, a Sri Lankan business development consultancy providing professional guidance and training to several Sri Lankan manufacturing enterprises.

The seminar is suitable for Sri Lankan managers, supervisors and production leaders who are engaged in varied types of production and manufacturing environments.

The content of the seminar will include why it is important to focus on kaizen at every manufacturing and production facility, explain successful cases and results achieved by enterprises practising kaizen, explain the difference between Toyota Production System (TPS) and Lean System, compare the advantages and disadvantages of each system, explain the importance of productivity improvements and more.

Benefits from attending this programme are that the problem-solving procedure at the site can be realized and managers can significantly improve management skills with a new management tool.

JASTECA Institute of Management is in the forefront of conducting seminars and workshops in the Japanese style of management and other management development programmes.

Further details could be obtained from jastecaim@gmail.com.

The upcoming ‘Sri Lanka Economic Summit 2017’ will dig deeper into the Sri Lanka’s latest trade reform agenda anchored towards new preferential trade pacts, tariff liberalization and export promotion, with the participation of an expert line-up of speakers, representing both local and international trade bodies.

The experts will take their seats at a thematic session titled ‘Executing a Smarter Trade Strategy Amidst Turbulence’, and will share their views and also recommendations on Sri Lanka’s trade strategy and the direction it should take.

The session will kick off with presentations by Dr. Ganeshan Wignaraja, Chair of the Global Economy Programme of the Lakshman Kadirgamar Institute of International Relations and Strategic Studies and Dr. Harsha Vardhana Singh, Executive Director of Brookings India, a policy research body.

The duo’s presentations would be followed by a panel discussion, with the participation of Economist Dr. Dushni Weerakoon, Deputy Director of the Institute of Policy Studies and Elizabeth Ward, Special Negotiator, Office of Trade Negotiations, Department of Foreign Affairs and Trade of Australia. Anushka Wijesinha, Chief Economist of the Ceylon Chamber of Commerce will moderate the session.

The session will discuss whether the anti-globalization rhetoric is a real threat, what is the smarter way for Sri Lanka to plan out its forward march towards liberalization and trade integration and how Sri Lanka can latch on to the growth in Asia, using ASEAN as a pivot.

‘Sri Lanka Economic Summit 2017,’ organized by the Ceylon Chamber of Commerce will take place on July 25 and 26 at the Cinnamon Grand Hotel, Colombo. The event is supported by some of the best corporate firms in the country.

Sunshine Holdings PLC comes in as the Platinum Sponsor, Standard Chartered Bank enters the fray as the Gold Sponsor, Fonterra Brands as the Silver Sponsor and Dialog Axiata the Telecommunications Partner of the event, whilst Janashakthi Insurance, Prima Group, and Nestle Lanka join in as the strategic partners. Echo Wave comes in as the Digital Events Platform Partner and OMD of OmniCom Media Group is the communications partner. If you wish to take part in the event, please email events@chamber.lk.