business Sri Lanka

Tea production data for October 2017 released by SLTB, revealed a figure of 25.5 Mnkg sharply up 36% on last year’s drought effected quantity of 18.7 Mnkg.

Whist this looks favourable on the face of it, production is below the 2015 October figure of 26.8 Mnkg and 28.1 Mnkg harvested in 2014. Sri Lanka is yet to get back to pre El-Nino production levels and every month this year has recorded lower quantities compared with the corresponding period of 2015. Whilst there has certainly been more rain this year, overcast conditions and excessive rain have restricted growth from all three elevations.

Tea production for the period January to October has reached 258 Mnkg up 9% on last year’s low quantity of 237.6 Mnkg, but is well below 279 Mnkg of 2015 and 283 Mnkg in 2014.

 The economic and trade relations between Sri Lanka and China have witnessed continuous development and in 2016 the bilateral trade had reached US$ 4.56 billion, said Xiong Meng, Executive Vice-Chairman and Secretary General of China Federation of Industrial Economics (CFIE).

Meng said that China has become the largest trade partner and one of the most important investment countries in Sri Lanka. He made these observations addressing the Sri Lanka Economic and Investment Conclave held in Colombo recently.

China has invested in the Colombo Port City project which will create thousands of employment opportunities, enhance Sri Lanka’s global shipping trade hub position, develop Sri Lanka economy and achieve a win-win situation for both countries.

He said the “Belt and Road Industrial and Commercial Alliance (BRICA)”, which was founded by CFIE, is willing to contribute to the development of economic and trade relations between Sri Lanka and China.

“Because of the conclave (SEIC 2017) we have established good relations with the Colombo Chamber of Commerce and the other business associations. We invite them to join BRICA, provide more business opportunities to Sri Lankan companies and develop the Sri Lanka economy,” Meng said.

The plans to improve electrical vehicles could fail if meaningful steps are not taken by the governmen, the Electric Vehicle Club of Sri Lanka said in a statement.

Co-founder and Interim Committee Member of Mahisanka Abeywickrama Electric Vehicle Club Sri Lanka however thanked Finance Minister Mangala Samaraweera for taking measurements to improve the electric vehicle usage in Sri Lanka in 2018.

“Also the plan of removing all fuel vehicles from 2025, imposing the carbon tax, proposal to install electric vehicle chargers, the reduction of taxation for buses and trains are highly appreciated. However there are a few issues that needs to be addressed.

The first issue is imposing higher tax percentage for electric vehicles over100Kw. It is clear that electric vehicles that will come in 2018 will be of a motor capacity between 100kw-150kw. Therefore it would not be practical to import these vehicles during next year. The attached tables shows how the taxes of electric vehicles are greater than hybrid vehicles if compared within same class”

The second issue is that the decision not to give tax relives for used vehicles (later it was brought down to one year used vehicles), is not practical.

The main reason is that in Sri Lanka, brand new electric vehicles are still not imported. Second reason is that the efficiency of the car will remain thought out years when compared with hybrids and petrol cars.

“When it comes to an electric vehicles, the main component which will depreciate when running is the electric battery. When a new batter is replaced with the old battery, the old battery could be used for home solar systems for another 5 years. After that period there is a process of re-exporting and recycling and even batteries of hybrids cars follow the same process. “It is true that without a proper recycle or disposing process, if used electric batteries are thrown to the environment, there will be pollution.

There are many steps the government can take to properly collect and re-export the used batteries without restricting the importation of electric vehicles.

The Club said even though brand new electric vehicles are not sold in Sri Lanka at this point, it would start during next year. And there is a possibility of their prices being very high. Furthermore, European countries give special grants and other relies when purchasing an electric vehicle. As a result their prices go down drastically and by importing those used vehicles our country also will benefit from those grants in indirect way. The Association proposes that by considering above facts, they would appreciate if the government could allow bring down at least 2 years older electric vehicles.

Promoting use of electrical vehicles in proper manner will give huge benefits to Sri Lanka’s energy security, environment, and people and generally to the whole community. If the government really cares about all these the club said they believe that above mentioned facts will be taken into consideration.

The government has embarked a clear strategy of trade liberalisation in Budget 2018 with a view to reaching Sri Lanka’s ancient status as a trading nation, Finance and Mass Media Minister Mangala Samaraweera said.

The Minister was speaking at the Annual General Meeting (AGM) of Sri Lanka Apparel Exporters Association, held in Colombo this week.

According to the Minister, to this end, para-tariffs will be removed over a three-year period which will enhance the spirit of competition in the economy.

“Over the years, all of these tariffs and para-tariffs have created a protectionist economy, incentivizing the diversion of resources away from the export sector. The government in parallel will bring in strong anti-dumping laws and trade remedies along with trade adjustments. This will ensure fair competition and support vulnerable industries to become more profitable.”

“The government is also supporting industries’ efforts to link with global value chains. Steps have been taken to enhance market access with the revival of the GSP Plus and soon to be concluded FTAs with China, Singapore and India.”

“A world-class logistics network is also essential to help connect with global value chains. Significant steps are being taken to enhance trade facilitation measures,” Minister Samaraweera said.

The Budget 2018 included allocations for the establishment of a single window, a trade information portal, and numerous other proposals to improve the trade and investment climate. The liberalization of shipping and freight forwarding sectors will also contribute immensely to freight trade, the Minister noted.

“This will help attract investment to position Sri Lanka as a logistics hub. It is also encouraging to note that the apparel industry has made important progress in backward integration. The government is keen to see the development of local designs, innovative product development and R&D.

“Sri Lanka will one day be a hub for design, development and logistics for all major apparel players. This will enable true value creation in the industry.

The apparel industry has made great strides into other key themes emphasized in Budget 2018.”

As Sri Lanka needs to build its foreign earnings, the role of the apparel industry is more important than ever, the Minister said, adding that the government has taken steps to create an enabling environment for further export growth.

The apparel industry aims to achieve an export earnings target of US$ 8 billion in the coming years.

The government will take necessary steps to create an enabling environment to facilitate this objective.

The Minister also urged apparel exporters to strive harder in the coming years to go beyond industry targets.

The National Budget 2018 has some of the strongest announcements of liberalization seen in years, including the removing of para-tariffs on 1,200 imported items, said Minister Malik Samarawickrama

Speaking in the Republic of Korea, he said that the budget also announced very progressive steps towards UN sustainability goals by declaring that all government vehicles will be either hybrid or electric by 2025, and dramatically reducing taxes on electric cars.

The focus of the government is to shift the economic growth model from one that was heavily dependent on public infrastructure spending, to growth driven more by private enterprises, exports, and foreign direct investment.

“Our government is now firmly focused on making the country more open to the world and become an attractive place to do business. We are also committed to improving the ease of doing business. Yes, we have slipped on the rankings recently but that has only made us more determined to double up our reform efforts. By next year you will see the results as we have taken several measures in this regard. Sri Lanka has been most successful during times of greater outward orientation, when it was more open to exports and FDI. But for sometime during the past decade we had slipped on this, and growth was driven more by domestic activity.”

The total trade between Korea and Sri Lanka is now just under US$ 400 million and has been steadily increasing and exports to Korea over the last 5 years have been growing by 7% each year, but there is a lot more potential to grow this in the further,” he said.

“We would also like to diversify our exports to Korea, beyond the current focus on apparels, coconut products and rubber products. Sri Lanka is keen to be a partner of Korea’s supply chain especially in automobiles and electronics products.”

“The new Logistics and Industrial Zone in the south of the country – in Hambantota – is being developed with Chinese investment and we expect a lot of investor interest in this”

“While we are of course very keen to attract Korean investment to Sri Lanka, we are even keener to attract Korean know-how and technology to Sri Lanka.”

“More broadly on the macroeconomic front, we are taking measures to build strength and resilience.”

Over 51% Sri Lankans are likely to embrace new forms of payments and 68% find convenience and security of digital transactions driving the adoption, a Visa survey said.

Visa, the world’s leader in digital payments technology, announced an independent study, conducted in collaboration with YouGov, which measure the consumer sentiment around digital payments in Sri Lanka. The study observed a growing inclination among consumers (51%) in favour of adopting newer modes of digital payments, indicating increased awareness, acceptance and adoption of digital forms of payments among Sri Lankan consumers.

Going cashless is more than a convenience and for many, it has become a preferred choice, says Anthony Watson, Country Manager for Visa in Sri Lanka. “More and more consumers are becoming digital natives, expecting a differentiated experience, oriented towards convenience and practical usability. IoT, contactless payment technology, enabling simplified, secure and faster eCommerce experience are some of the trends defining the next wave of the future of payments.

The study shows that while consumers are steadily embracing digital payments, they are also seeking secure payment forms.”

One of the factors that surfaced as the key drivers of this adoption include the convenience and security of the digital form factors of payments, as stated by 68% respondents. Among those who have used less-cash currently than before, 55% state that the main reason to transit away from cash include the ease of transaction’ offered by digital modes of payments.

The survey was aimed at understanding the pulse of the Sri Lankan consumers and their views towards the transition to a digital economy. The study indicates that amongst people for whom this adoption was tough,53% stated they find that merchants they go to only accept cash while 54% find insufficient modes of payments as a key barrier while32% noted that they were worried about the security of their transactions.

Significantly, over half of the consumers’ (66%) value security more than convenience when it comes to making payments online. This is similar across the board - gender, ages, household income and even education levels.

The survey also highlights a popular trend among Sri Lankans to prefer card payments to pay for special incentives such as hotel and airline tours or holiday promotions which remain popular among Sri Lankan consumers through special credit card offers.

The survey was conducted across three countries, Sri Lanka, India, and Bangladesh and also shows that millennials are more likely to use digital payments for everyday essentials like paying at bus or subway gates, shopping at supermarkets, online, department stores, fast food restaurants, taxis/cabs etc. than earlier generations. The study also shows that the inclination towards embracing digital is higher among those from a higher income household.

“While there is a visible shift in consumer spend pattern form cash to digital modes, there is also a clear and willing adoption of this transition among consumers today. People across geographies realise the benefits of adopting digital modes of payment and are open to experimenting with newer forms of payments.

While the study indicates consumer willingness to transition to digital forms of payments, it also highlights the opportunity for the industry to expand digital acceptance footprint across Sri Lanka in keeping with evolving consumer spend patterns.” adds Watson.

The study, which sampled people in India, Bangladesh and Sri Lanka this October, was conducted by market researchers YouGov on behalf of Visa using active sampling, a method that focuses on ensuring the quality of the sample, rather than the quantity of the respondents Visa Inc. (NYSE: V) is the world’s leader in digital payments.

Young entrepreneur Rohanthi Wijewickrama, the Founder/CEO of Sri Lankan children's products company Quebee Den (Bellybees) was invited to participate at the 8th annual Global Entrepreneurship Summit, held by USA and India, last week.

Recommended and nominated by the Women’s Chamber of Industry and Commerce Sri Lanka (WCICSL), and selected by the U.S. Department of State, Wijewickrama attended the highly prestigious, invitation-only 2017 Global Entrepreneurship Summit (GES), held in Hyderabad, India with the participation of more than 1,800 entrepreneurs and investors from 148 countries. Ivanka Trump, Advisor to the President of the USA, headed the United States delegation to the Summit. Through networking, mentoring, and workshops, the GES empowers entrepreneurs to pitch their ideas, build partnerships, secure funding, and create innovative goods and services that will transform societies.

Quebee Den is a local consumer goods company with an emphasis on safe, healthy and convenient products for one's home. Its mission is to re-invent the future with healthy and safe products that will uplift the economic, social and environmental sustainability of the industry, community and the world.

The company has built a powerful portfolio of niche brands like “Bellybees”, which specializes in food and beverages with no preservatives and “Qbee” a dedicated household products brand for non food items.

Quebee Den has won several national awards including JCI’s Top Outstanding Young Persons of Sri Lanka Award in 2016, as well as the Western Province's Best Entrepreneur - Industrial and Manufacturing Sector in 2017 and the Best Entrepreneur Award for 2016, both awarded by the National Chamber of Commerce of Sri Lanka.

Quebee Den has also been recognized as the Runner-up, and one of the “Top Fundable Companies”, at Venture Engine 2016 and with a Women Entrepreneur Award and Best Women CEO Award in 2015.

Commenting on the success of Quebee Den, Ms. Wijewickrama notes that her company's focus is on producing entirely natural and locally-sourced products, which enables her to offer sustainable products that are free of toxic chemicals.

 The premier automobile brand 'TVS' has yet again created history being the first automobile company to be awarded the 'Marketing Company of the Year – Sri Lanka' by Asia Marketing Federation at the recently concluded Asian Marketing Excellence Awards conducted by the Asia Marketing Federation in Mongolia for the financial year 2016/17.

Asia Marketing Federation is the foremost governing body of Marketing in the Asian region, whose member countries include Japan, China, Singapore, Taiwan, Korea, Malaysia, Mongolia, Hong Kong, Indonesia, Philippine, Thailand, Vietnam and Myanmar.

The entry criteria with regard to Asian Marketing Excellence Awards was that the brand in the contest should have been recognized by the local national marketing body of the country where the brand marketing has taken place. Further, any brand marketed in Sri Lanka being recognized with a Gold award in the preceding year becomes eligible to be nominated by the respective local national body of marketing.

“The award of ‘Marketing Company of the Year’ by Asia Marketing Federation was not beyond our reach since brand TVS has continued to perform exceptionally during last couple of years. Brand TVS emerged as the Product Brand of the Year - 2015 and Brand of the Year - 2016, surpassing all local and multinational brands across all products and service industries. In particular, in 2016, brand TVS was awarded with six awards including four Gold Awards and two Silver Awards.

This is the highest achievement a brand has thus far recorded in the National Marketing Awards,” stated Ravi Liyanage, Chief Executive Officer of TVS Lanka.

Among very popular Brands in the TVS portfolio - TVS Apache is the premium flagship brand which is known for performance and style. The "RTR" as the name stands for ‘Racing Throttle Response’. More than 2.5 million Apaches are on the road.

TVS Lanka is a joint venture between United Motors PLC, T.V.Sundaram Iyengar & Sons Limited and TVS Motors of India, specializing in motorcycles, scooters, spare parts and lubricants.

Dr. Sena Yaddehige, Chairman of Richard Pieris & Company PLC, was conferred an honorary doctorate by the University of Kelaniya, at a recent ceremony held at BMICH, Colombo. The ceremony was graced by many senior delegates. The doctorate was awarded by the Chancellor of the University of Kelaniya.

A Sri Lankan-born British scientist and engineer and a Swiss-based industrialist, Dr. Yaddehige is not only an eminent corporate leader but also the proud owner of a number of patents worldwide, in radiation technology, polymer technology, automotive sensors and accelerator pedal modules, along with slow release fertiliser.

He is also known for founding a host of companies both in Sri Lanka and overseas, where more than 33,000 Sri Lankans are currently employed.

He is currently serving as the Chairman of five publicly listed companies and heads over 52 companies wholly or majority owned by Richard Pieris and Company.

Dr. Yaddehige has set up the largest automotive sensor business in the UK and currently serves as the Managing Director of a European firm and Chairman/CEO of a US firm in the automotive industry. Dr. Yaddehige was also a Director of the National Development Bank PLC.

After assuming the role of Chairman of the Richard Pieris & Company, a leading conglomerate in manufacturing, engineering and plantations - Dr. Yaddehige has revitalised the vision and management of the company and provided leadership to expand it by 14-fold over the years.

Today Richard Pieris has become one of the largest and most successful conglomerates in Sri Lanka.

The Ceylon Chamber of Commerce will hold a seminar on December, 7, 2017 to discuss the new Forex Act, which came into effect recently. The event is titled ‘The new forex Act and Regulations – What Does It Mean for Business?’.

The Seminar will take place at 2.30 p.m. at the Ground Floor Auditorium of the Ceylon Chamber of Commerce.

The seminar will commence with a presentation delivered by Pavithri Vithanage, Senior Assistant Director, Legal and Compliance, Central Bank of Sri Lanka (CBSL.)

Her presentation would be followed by a panel discussion, which will cover the key provisions of the new Act compared to the previous Act, the capital and current account regulations, re-designation of existing accounts and the overall policy direction of the new Act in terms of liberalizing foreign currency transactions.

The Panelists for the session would be Udeni Alawattage, Director, Department of Foreign Exchange of the CBSL, Pavithri Vithanage, Senior Assistant Director, Legal & Compliance, CBSL, Duminda Hulangamuwa, Partner Ernst & Young, Ayomi Aluwihare Gunawardene,Precedent Partner, FJ & G De Saram, Suresh Perera, Director, KPMG, Summaiya Maccan Marker, Head of Compliance, Cargills Bank and Shiran Fernando, Chief Economist of the Ceylon Chamber of Commerce.

More details could be obtained from sriyani@chamber.lk

 DFCC Bank, recently joined hands with the upcoming Fairway Galle Literary Festival, as the event’s official banking partner. The partnership is part of the bank’s long-term commitment to supporting events that uplift the arts and literature in Sri Lanka whilst raising the profile of the island as a creative hub in the international arena. The sponsorship will also help to highlight the Bank’s growing presence in the southern region, one of its key areas for growth and expansion.

Commenting on the Bank’s partnership with the exclusive literature festival, Lakshman Silva – CEO, DFCC Bank, said, “we are proud to partner with the Fairway Galle Literary Festival 2018 as the festival’s official banking partner. This is an ideal platform for the DFCC brand to leverage on and to drive its vision for knowledge sharing under the brand theme of ‘Know & Grow’ as it provides a pivotal platform for the country’s writers, poets and literary specialists and helps to uplift the country’s image in the international arena, highlighting our nation’s rich history in the arts and our ongoing commitment to the development of artistic fields."

"This sponsorship will also help us to gain exposure and highlight our presence in the south of the country, which is one of our key areas for future expansion and growth. We also believe that the festival will showcase Sri Lanka as a nation that shelters a plethora of vibrant talents and personalities that derive inspiration from the unique and diverse cultures of the country."

"We will be arranging activities around the Literary Festival to enable our customers to be a part of this event and to have an up close and personal interaction with the multitude of both international and local artists and authors who will be participating at the Festival. We are extremely pleased to be collaborating with this prestigious event, which will play a key role in steering the country towards reaching its full potential as a premier hub for both contemporary and classical arts and literature.”

Over the years, DFCC Bank has strengthened its presence in the southern region, offering a wide-range of loans and financial services to customers in the Galle, Matara and Hambantota areas. Serving customers as a fully-fledged commercial bank, DFCC Bank offers a full-spectrum of products for personal, corporate and SME customers.

DFCC Bank prides itself on delivering tailor-made products that are designed to meet the specific lifestyle needs of customers, attractive interest rates, structured repayment plans, easy access to all funds and fast and prompt support. The southern region remains one of the bank’s key areas for expansion and growth, attracting an increasing number of customers seeking reliable financial services that support their personal and business needs and specific lending requirements.

DFCC Bank PLC now is a fully-fledged commercial bank that offers an array of seamless banking solutions. The Bank has been rapidly growing its footprint across the country with a network of 138 branches and service points. Connected to the LankaPay Common ATM Switch, all account holders can access over 3,600 ATMs island-wide and perform zero cost cash withdrawals and balance inquiries via connected Banks. DFCC Bank is rated AA- (lka) by Fitch Ratings Lanka Limited.

For the first time, BMS (Business Management School) with Northumbria University UK has introduced a Business Clinic for the final year students undergoing Business and Management studies.

President, BMS, Dr. W. A. Wijewardena said the ‘Business Clinic’ is launched to provide opportunities for their under graduates who have hands on experience resolving real business problems.

He said that students would be linked with the local SME sector and then the student would be with the company for over three years and offer their expertise.

He said that via their students’ knowledge the SME would be able to look at business in a new angle and also the students would gain valuable practical knowledge as to how a mini company is being operated. “The SME sector too would gain valuable insights from them,” he said.

He also said that today some of the students who went overseas to UK and India for Business and Management studies are remaining in Sri Lanka due to high quality of education BMS offers.

“In fact the brain drain has now reversed and we see Indian students joining BMS. In addition students from Maldives, Nepal, Bangladesh and Pakistan too are now following our courses.”

He said that one of the biggest advantages of their Business and Management studies courses are that students gain employment in the last year of their course. “BMS is a provider of high quality education in association with the best of British universities. Business and Management degree is our flagship management programme.”

President Chamber of Commerce Rajendra Thiyagarajah said that today most of the youth are looking at joining banks, government institutions and the top corporate sector.

“However once employed they have limited opportunities to innovate. However in the SME sector it’s different and youth could get a better burst of energy,” he said.

Commenting on the BMS Business clinic he said that he said it was a very timely as the Sri Lankan economy is driven by the SME sector. “We (CCC) would try to nominate a few SME companies for this program.”

British High Commissioner to Sri Lanka, James Dauris said that there are over 70, 000 students outside UK who are studying their courses and in Sri Lanka too they are very popular.

BMS is entering its seventeen year of success in providing high quality education is association with the best of the British universities, while incorporating the flexibility of the module credit systems leading to a British degree. ss

With a view to further liberalizing capital flows and simplifying the processes associated with current account transactions and various types of foreign currency/Rupee accounts, the Government declared in its Budget Proposals for 2016, that a new foreign exchange law will be introduced.

In keeping with this announcement, a new legislative and policy framework for foreign exchange operations has been implemented by the Foreign Exchange Act, No. 12 of 2017 with effect from November 20, 2017, repealing the Exchange Control Act, No. 24 of 1953. Provisions of the new Act are being implemented through the newly established Department of Foreign Exchange in the Central Bank of Sri Lanka.

Relevant Regulations and Orders made under the new Act by the Minister of National Policies and Economic Affairs have been published in the Gazette Notification No. 2045/56 dated November 17, 2017, while Directions have been issued to Authorized Dealers by the Director of Department of Foreign Exchange on November 20, 2017.

More information could be obtained from website www.dfe.lk or through the Department of Foreign Exchange on following telephone numbers.

Tel: 0112477433 – Additional Director

0112477207/248/375 – Deputy Directors

0112398641 – Policy and Research Division

0112477358/651 – Capital Transactions Division

The European Union was studying Sri Lanka's current budget since it reflected some of the country's political and economic objectives, which met some of the recommendations of the World Bank and of the International Monetary Fund.

This was stated by Ambassador of the European Union to Sri Lanka Tun Lai Margue at the EU-Sri Lanka dialogue at the Ministry of Development Strategies and International Trade.

The Ambassador stated that this budget would lead to the creation of a more favorable business environment and several progressive outcomes would arise from such efforts. This include devaluating the possibility of foreign investors owning land in Sri Lanka, as well as economic packages that would promote the development of small and medium enterprises, notably in the Northern Province.

“The new budget also encourages investment in new sectors such as the IT industry as well as the Agricultural sector.”

The Ambassador also added that it was positive that under the budget, environmental issues were to be addressed by the Government of Sri Lanka. Promotion of electric cars in the country was also a significant new move on the part of Sri Lanka. He stated that the EU felicitated the Government of Sri Lanka in its efforts, particularly in the area of seeking to boost investments in the country.

Minister of Development Strategies and International Trade, Malik Samarawickrama who led the Sri Lankan side with other relevant officials in line Ministries said that the current budget of the Government of Sri Lanka was the most outward orientated budget that the country had adopted since the era of the late President J R Jayewardene. One of its strength was the development of a very comprehensive Inland Revenue Act.

However, a vital area that needed to be addressed was improvement on the "Ease of Doing Business" since success in this area this would impact very positively on investment and trade.

The Minister stated that the objective of the government was to make every industrialist an exporter. At the same time there is a commitment on the part of Sri Lanka to develop the Northern Province and many concessions have already be given to promote economic activity in the former conflict affected areas.

A number of subjects were discussed by the Sri Lankan side and the EU delegation. These included the need for a definition of what constitutes "used cars" in Sri Lanka. In addition to this the EU delegation spoke of a need for Sri Lanka to formulate environmental standards that are consistent and of a very high level.

The Minister also spoke of Sri Lanka's objective to develop container terminals located on both the Eastern and western coasts in the Island. The European Union Chamber of Commerce discussed their need for addressing issues of noise pollution at certain tourism locations as well as the Island's objective to develop a strong dairy sector.

Discussions also covered the future development of a dry port in the area of Bloemendhal area.

In the period 2005 - 2016, EU enterprises operating under BOI invested an estimated US$ 2.5 billion in Sri Lanka. The bulk sectors for investment were manufacturing (other than textile and apparel) US$ 557 million; textile and apparel manufacture (US$ 327 million); telecommunications (US$ 617 million): Airline services (US$ 325 million); and power generation (US$ 255 million).

The leading European Union countries in terms of FDI to Sri Lanka are the United Kingdom with 90 projects under BOI (of which 54 exporters), Germany (42 projects, 31 exporters), the Netherlands (29 projects, 14 exporters), Sweden (20 projects, 13 exporters) Italy (18 projects, 14 exporters, France (13 projects, 10 exporters) and Belgium (10 projects of which 6 exporters). 

An internationally renowned property policy expert and Belius GmbH Managing Partner Andreas Krüger predicted that Sri Lanka’s largest and most iconic integrated multi-functional development project, Cinnamon Life, will help Colombo to be the main hub in the region.

Krüger made these remarks while commencing the first chapter of the Cinnamon Life Business Forum series conducted with top business leaders, developers and investors.

The Cinnamon Life Business Forum series, conducted in association with Ceylon Chamber of Commerce and German Development Cooperation (GIZ), was launched to share ideas that will help to shape Colombo into a dynamic and competitive city.

Krüger further said Cinnamon Life, from Sri Lanka’s premier listed conglomerate, the John Keells Group, is the island's most iconic integrated multi-functional development project.

Krüger also valued the important role played by the country’s real estate industry in supporting the transformation and growth of a city.

Krüger highlighted the important areas including political, government and public administration policymaking and the importance of understanding different roles, stakeholder monitoring, adhering to recommended methods and embracing process innovations.

Presenting his insights at the forum, Krüger said although Sri Lanka has progressed rapidly after the three-decade civil conflict, the country has yet to see a mixed development as large as Cinnamon Life making a mark on its skyline and economy.

He said this project and the country’s rapidly growing real estate industry would play a crucial role in the development and positioning of the city of Colombo as a regional hub.

Krüger said he wished the topics that were discussed at the forum will shed a light on the role that large-scale property and real estate projects will have on the island’s overall urban and economic development. In addition, Krüger also delivered exclusive insights from the drastic transformation of Berlin, a dynamic and fast-paced city that thrives on entrepreneurial drive, contrast and creativity.

It is said that Cinnamon Life’s iconic design which is to be the first multi-functional development of its kind in the country is a city within a city and it will span across 4.5 million sqft.

Upon completion, the project will comprise an 800-roomed luxury Cinnamon hotel, an array of entertainment facilities, apartments, retail and entertainment malls, office space and many other attractions. 

Sri Lanka’s premier connectivity provider, Dialog Axiata PLC and Australia’s Department of Foreign Affairs and Trade (DFAT) will collaborate to pilot a digital payment platform roll-out across 200 ATM (Automated Teller Machine) locations in the Northern Province.

Dialog Axiata PLC and Australia’s Department of Foreign Affairs and Trade (DFAT) collaborated to pilot a digital payment platform rolled-out across 200 ATM (Automated Teller Machine) locations in Sri Lanka’s Northern Province. Here Dialog customer Shiroshini Maximin making the first eZ Cash transaction on the ATM at the Jaffna Branch, whilst Bryce Hutchesson, Australian High Commissioner to Sri Lanka, Dr. R Rainer Deutschmann, Chief Operating Officer of Dialog Axiata PLC and Janaka Jayalath, Senior General Manager - Mobile Money and DS Operations, Dialog Axiata PLC look on. See story on page iii

The announcement was made yesterday at the launch ceremony held in Jaffna.

With Rs 60 million from DFAT’s Business Partnerships Platform and Rs 91 million of its own funding, Dialog intends to reach and support underbanked communities with its state-of-the-art digital payment retail system.

Customers in 200 locations will be able to withdraw money via eZ Cash across a wide network of corner stores and ATMs by just using their mobile phones. eZ Cash is a mobile wallet, which is licenced by the Central Bank of Sri Lanka. Customers can easily transact on-the-go and pay for goods, services and mobile reloads. Also, eZ cash customers can send and receive money between any mobile phone in Sri Lanka. Launched in 2012 as the world’s first cross-operator mobile money service, eZ Cash has not only won the hearts of its users, but also international recognition such as the Global Mobile Award for Best Mobile Money Service at the GSMA Awards 2015.

Australian High Commissioner to Sri Lanka, Bryce Hutchesson welcomed the initiative.

“Our partnership with Dialog Axiata lays the foundation for the delivery of advanced digital and financial services to Sri Lankans in the Northern Province.

I expect the pilot to generate tremendous learnings and impact, many times greater than our original investment. We live in a world where access to technology is an important equalizer of social and economic opportunity.”

Rainer Deutschmann, Group Chief Operating Officer of Dialog Axiata, noted, “The partnership between the Australian Government and Dialog Axiata is an expression of our greater effort to propel digital and financial inclusion in the country.

We aim to provide an inclusive, safe and low-cost payment platform to foster economic growth from the grassroots. Customers can safely and easily deposit and withdraw cash to and from their digital wallet, as well as transact in a cash-less way.

This project is part of our wider Digital Transformation Initiative to support economic growth not just in the Northern region but across the whole country.

The eZ Cash based platform shall stimulate new business opportunities for entrepreneurs and small retailers with a special focus on women retailers. Dialog will provide training and run parallel digital literacy programs to expedite adoption.” 

One hundred Chinese couples are to tie the knot together at a mass royal wedding in front of the Colombo Town Hall on December 17.

The royal wedding, to be held according to Sri Lankan tradition, is planned as a tourism promotion to showcase the island’s rich culture and will be held under the patronage of President Maithripala Sirisena and Prime Minister Ranil Wickremesinghe. Megapolis and Western Development Minister Champika Ranawaka and Tourism and Christian Affairs Minister John Amaratunga will also grace the occasion.

The spectacular event which is expected to strengthen Sri Lanka-China relations is being organized by the Megapolis and Western Development Ministry together with Tourism Promotion and Christian Affairs Ministry, Waters Edge and Green Lives Entertainment.

“Sri Lanka and China share long-standing and deep relations in all sectors of the bilateral. According to written history, bilateral relationships between the two countries date back to 5 AD, but according to historical accounts our relations date thousands of years before that. The royal wedding will be a celebration of our strong bilateral relations and also serve as a platform to showcase Sri Lanka’s rich heritage,” stated Minister Champika Ranawaka at a press conference held to announce the mass wedding, at Waters Edge yesterday.

“Among the couples there will be a groom related to King Alakeshwara of the Raigam Kingdom which would be an iconic mark of the royal wedding which will once again make the Sri Lanka-China bond strong, dating way back in history. 

Corporates should look more seriously towards reconciliation (of ethnic harmony) and fostering gender equality, said Chairman of the evaluators panel for ‘Best Corporate Citizen Sustainability Award 2017’ and marketer, Eardley Perera.

Speaking at the awards ceremony last Tuesday, he said that it was sad to note that none of the corporates had given attention nor made any initiatives towards this key area. He also said that out of the Ceylon Chamber corporate membership only around 15% of companies have applied for Best Corporate Citizen Sustainability Award and this too is disappointing. “When I meet them they (corporate) say there is no time. But I don’t buy this since there is one full year to apply for this award.”

He also blamed corporates for not paying too much attention towards customers and suppliers. “We hardly see a WOW factor for customers.” Perera was also critical of participants of the last year’s awards ceremony and said that none of the participants even bothered to get a copy of the speech made by the keynote speaker.

Meanwhile Ambassador of Japan in Sri Lanka, Kenichi Suganuma, who was the Chief Guest said that he was happy with the CSR practices undertaken by the Lankan corporate sector.

He also said that with the change of government and improved relations more Japanese companies are keen to invest in Sri Lanka. “This can be mainly attributed to Sri Lanka’s unique geographical location and the fact that the region is now growing at around 6% which is a faster pace than some of the other countries,” he said.

Suganuma said that tourist arrivals from Japans too are increasing.

He also said that today there are more than 300 companies in Japan which are over 100 years old.

David Bent, a global expert on corporate sustainability who delivered the keynote address predicted that the future power generation would be mainly based on solar and wind energy.

Aitken Spence PLC won the top place in the Best Corporate Citizen Sustainability Award 2017 while Hatton National Bank PLC and Cargills (Ceylon) PLC became the first and second runner up, respectively.

The awards ceremony, organized by Ceylon Chamber of Commerce, was held at the Cinnamon Grand Hotel, Colombo amidst a gathering of 350 top corporate executives. (SS) 

Consider investing in Sri Lanka and you won’t regret it, remarked Dr Harsha de Silva, Deputy Minister of Policy Planning and Economic Development, addressing the Sri Lanka Economic and Investment Conclave yesterday in Colombo.

“The story of Sri Lanka begins not now, not 100 years ago but 2,000 years ago. When the Spice Route was in operation we found Ceylon cinnamon in Persia, Europe and China and we saw Chinese and Arabian traders using Sri Lanka as a hub in doing their business.”

“What this all means is that the island was completely integrated with global trade. We were a niche player right throughout. Then in the 16th century the Portuguese and then the Dutch and the British came to this country. They did not come to this country to look for oil, coal or gold. We didn’t have it. They used this country as a strategic point to expand their trade. What we are trying to do today is to create some sort of entry point or gateway to the rest of this region. Sri Lanka has only a 20 million population and it is certainly not going to be anybody’s comprehensive marketplace. But it will certainly be a place where industries and investors can set up to exploit the region.”

“The South of India is very exciting for Sri Lanka. Sri Lanka’s US$ 80 billion economy can be easily integrated with the five South Indian states - Tamil Nadu, Karnataka, Kerala, Andhra and Telangana. If you look at those five states you are looking at a population of about 400 million and about a US$ 400 billion economy. If you consider the integration of those ports, economic centres with the main ports and economic centres in India, you probably would see that it is easier to be setting up businesses in Sri Lanka to service those southern states of South India. So there is clearly a case for those who are looking at entering the market of India to position themselves in Sri Lanka,” Deputy Minister De Silva pointed out.

The Deputy Minister said to him, Sri Lanka was not a South Asian nation but an Indian Ocean nation. He said when compared with SAARC countries there was nothing much in common with Sri Lanka. But when one compares Sri Lanka with countries like Singapore or Dubai there was a lot in common. Therefore the perspective on Sri Lanka from investors’ point of view changes because the country is linked to China. Therefore, it would be unwise from the government’s point of view not to leverage the growing economy in this part of the world. So the FTA with India must be linked with the FTA with China. Hence the Minister said Sri Lanka’s future will certainly be based on how well the island can integrate with the region and the world.

“If we are to take control of our destiny, we cannot be held back by vested interests in this country but rather by opening up, liberalizing and creating the ecosystem for any shipping line to come and take full advantage of our ports to be able to integrate this nation with the rest of the world,” he said.

If you look at the thinking of this government it is very clear, we have the Vision 2025 document and that says very clearly what Sri Lanka is going to become. Sri Lanka will be knowledge based, highly competitive social market economy at the centre of the Indian Ocean, and that is our vision. In order to achieve that vision we are in the process of putting in place all the Acts and plans that are required.”

German Ambassador to Sri Lanka and the Maldives, Jörn Rohde urged the Sri Lankan government to formulate sustainable, conducive and predictable policies to open up the Sri Lankan economy and to create much-needed business links with the rest of the world.

The Ambassador was speaking at the Annual General Meeting of the Sri Lanka Apparel Exporters Association, held in Colombo this week.

The Ambassador also called on apparel exporters to support government’s policies to open up the economy and to create a level playing field for exports.

Noting that Sri Lanka has the opportunity to be the hub of South Asia, the Ambassador noted the government needs to set the right framework to realise this ambitious goal.

Commenting on two-way trade between Sri Lanka and Germany, Ambassador Rohde said it is planned to increase the two-way trade between Sri Lanka and Germany from US$ 700 million to US$ 1.2 billion in another three years.

The Ambassador also noted that Sri Lankan exports to Germany grew by 13% while exports from Germany to Sri Lanka registered a growth of 18% during the first three quarters of 2017.

He further added that a professional German Chamber office too will be opened in Colombo in 2018 to put the business to business context on a new footing.

Sri Lanka Apparel Exporters Association with its apex body, Joint Apparel Association Forum (JAFF), has requested the Department of Commerce to explore the possibilities of undertaking a joint request to the European Union between Sri Lanka and selected ASEAN countries to agree on cross regional accumulation for fabric.

Chairman of Apparel Exporters of Sri Lanka, Felix Fernando made these remarks speaking at the annual general meeting of Sri Lanka Apparel Exporters Association.

“We reliably understand that the European Commission has basically agreed to consider granting this benefit and we have selected Indonesia, Thailand and Malaysia to start with.”

He expressed hope that the government authorities will consider this as a priority and do the needful sooner, since it will give a huge advantage to apparel exporters in maximizing the use of GSP Plus facility. From 2004-2011, apparel exports grew from US$ 2.7 billion to US$ 4 billion, registering a 60% growth. Following the withdrawal of the GSP Plus facility, apparel exports however had been stagnating. In the months of July, August and September 2017, apparel exports grew considerably after the restoration of the GSP Plus facility.

“It is visible that Sri Lanka has already started reaping the benefits of the GSP Plus facility. Apparel exports up to September 2017 have recorded an 11.6% overall growth compared to year 2016. And the total value of apparel exports is expected to surpass US$ 5 billion mark for the first time.

Sri Lankan apparel exports will also have the GSP Plus facility for the full year in 2018 and it is expected that the industry will record a further increase in apparel exports.

Despite the fact that 40% of the total apparel exports, amounting to US$ 1.9 billion are exported to the EU, bulk of it goes to UK market, Fernando said.

With the uncertainties around Brexit, Fernando pointed out that Sri Lankan authorities need to hold discussions with UK counterparts for the latter to agree to continue to offer the same trade facilities for Sri Lankan exports.

“Due to these uncertainties, it is imperative that we consider the EU countries and especially Germany where our presence is limited. We seek the help of the German Ambassador to Sri Lanka to convey the strength and the size of the industry and see the possibility of creating a link between our industry with that of importing industry and the fashion industry in Germany.

“It is also heartening to note the importance given to the export sector, when the present government launched its Vision 2025; the government has realised the limitations of the present market and hence plans to position Sri Lanka as an export-oriented economic power at the centre of the Indian Ocean.”

Fernando also noted that the government’s idea in formulating National Exports Strategy (NES) is very well recognized by the Association and thanked the Minister of Development Strategies and International Trade in taking initiatives and inviting all stakeholders to the process making of the NES.

The apparel sector which has been identified as a mature export expects that the NES formulated by the government will improve trade facilitation through export and import trade documentation, logistics and other relevant support services.

Fernando also thanked Minister Mangala Samaraweera for heeding apparel exporters’ concerns and deciding to put on hold the abolition of Simplified Value Added Tax (SVAT) system. 

The government was in the latest phase of reform and they had the political will to open Sri Lanka’s doors for investors to come in and utilize Sri Lanka, Dr Harsha de Silva, Deputy Minister of Policy Planning and Economic Development said, addressing the Sri Lanka Economic and Investment Conclave yesterday in Colombo.

The European Parliament has given Sri Lanka the nod to export 6,600 products with zero duty to 28 European countries. Those were the kinds of advantages the investors can use.

Once CM Port comes into operation in Hambantota, 50 sq km of industrial space will be created for big businesses to come and become a part of the global production network. He said that was the reason that the Budget took off para-tariffs of 1,200 products.

“We are committed to unilaterally reform our trade and make it as easy as possible for people to enter and exit. Last month we took out an archaic law called ‘Foreign Exchange Control’. How can we live in the 21st century and expect to integrate with the rest of the world when you have something called ‘control’ after foreign exchange? You can’t. People must have the freedom and flexibility to bring their dollars and take out their dollars, bring in their yuan and take out their yuan or rupees. As of now, we don’t have foreign exchange control.

The word ‘control’ has been removed and we have introduced something called foreign exchange management. We have loosened the law and created the space for investors to come,” the Deputy Minister added. 

One of the top US based health service companies, Synergen Health Care has set up their back office operations with Foundation of Goodness (FoG) in Seenigama (FoG).

The company has already taken space from the Foundation premises and has hired six youth from the area to man this operation. Under the program, all medical records of US citizens who patronize Synergen Health Care are being processed and sent back to USA.

Foundation of Goodness Chairman Kushil Gunasekera said that due to the success of this project, three other US firms are talking to them to them. “In addition, US based Rimas Foundation, involved in investment banking, lending and providing business solutions is looking to set up operations in Sri Lanka and would be opening one of their regional branches with them.”

President and CEO, Rimas Foundation, Oriando, USA, Khawar Ali Khan who visited the Foundation said that they were also happy with the manner in which Foundation of Goodness is operating and plans to open one of their regional offices with the Foundation.

The global supermarket chain TESCO has also contracted the Foundation to supply spices to their supermarket and this project is now expanding to other areas of merchandise.

In addition, the back office operations of John Keells which involves supermarket and hotel invoicing, are being done at a special area at Foundation of Goodness. Several other local companies too are using the skills of the Foundation for their back office operations.

“All the youth who work in these operations were educated in ICT by the Foundation free and today due to their ‘high returns’ they are looking for any other employment.”

Gunasekera, a former cricketer and board member of Sri Lanka Cricket, said that the FoG started in early 1999 in his ancestral home in Seenigama to mainly assist youth in sports.

The aim was to give holistic support to the rural community to bridge the gap between the rural and urban sectors. In the early days, it provided English and computer classes, sports training to village children, upgrades to villagers’ dwellings (including water, sanitation and electricity supply) and a simple medical clinic.

When the tsunami struck in 2004, he gifted what was left of his ancestral home and garden to the village, setting up firstly an emergency centre and then, with sponsorship from the Marylebone Cricket Club, developing the MCC Centre of Excellence, which is now the hub of the Foundation of Goodness' work.

“After the devastation of the tsunami, many international cricketers like Ian Botham, Mike Brearley, Steve Waugh, Michael Clark and local cricketers like Murali, Mahela and Sanga also provided funds.”

The post-tsunami international funding has provided facilities and opportunities which have been open to all free of charge and has benefitted around 20,000 villagers in about 25 villages.

“Since then, I expanded the FoG to other areas like Montessori education, health and dental care, vocational, IT, English and photography training, women’s entrepreneurships programs, beauty culture and other activities.

Gunasekera said that several foreign donors visited the centre after the tsunami and provided assistance to people in the area. Brian Adams Foundation provided 150,000 British pounds and with this a cricket ground, pavilion, sports centre, hostel and a swimming pool were built and the complex is named MCC Centre of Excellence.

Before visiting the Foundation of Goodness, the group from Harrow School led by Alderton raised funds to construct a brand new library building at the MCC Centre of Excellence to benefit rural villagers, especially the children and youth attending classes at FoG.

“Several youth in the area who trained here are now representing Sri Lanka in several sports like cricket, volleyball, netball.”

The diving centre which was also opened by Foundation of Goodness at Seenigama too is a major success as its gaining popularity among foreign diving enthusiastic.

The medical centre and the dental care unit which was donated by a UK based insurance company along with the mental care treatment unit has provided employment for over 50 youth.

Since 2011, the Foundation of Goodness has expanded its development activities to the post-war North. The FoG plans to emulate the holistic development model of the Seenigama MCC Centre, in the North, through establishing the North Learning and Empowerment Institute.

While work is underway in establishing the Centre, the FoG carries out development and humanitarian activities in the North including the Neethipuram Water and Sanitation Project, sports camps, development of school grounds and libraries, micro-finance, developing a pre-school, distribution of solar power bulbs and livelihood projects.

To date, over 32,931 beneficiaries representing over 100 villages benefited under the North development program.

The total cost for this was over Rs. 225 million for 72 months.

He said that the unique feature of the Foundation of Goodness in Seenigama is that they don’t charge any money from the people who follow their programs and patronize their services.

On average, the Foundation invests around US$ 70 to US$ 650 to train an individual. “But we don’t charge them and in return for their education they have to do voluntary work for the Foundation.

We operate on donor funding and money generated from projects within Foundation of Goodness. We also have many international volunteers and their expertise too has helped the Foundation to be a major success.”

“Our aim is to bridge the gap between the urban and rural sectors in Sri Lanka and to date we have empowered over 35,000 lives in over 200 villages annually in the South and North via 30 sectors, free of cost.”

He said that a Managing Director of a one of the leading local cement companies provided Rs. 10 million to install solar energy to the their centre and this is helping to reduce their energy cost by 70%.

According to Trustee, Ashan Malalsekera, Foundation of Goodness in Seenigama is now almost 65% self-funded and would be self-sufficient by 2020.” 

The graduating class of AIS is to present a fashion show with a difference. The event titled PULS8 Feel The Beat will be held on December 5, at the Kings Court Cinnamon Lakeside.

Latest fashions and exotic finishes will be showcased by the aspiring models of AIS class of 2018. This high octane evening of inspiring design is being choreographed by Rashmin Sappideen. Funds raised from this show will be donated to charity.

Tickets are available at Gerard Mendis Chocolatier and at Asian International School.

Aitken Spence PLC won the coveted ‘Best Corporate Citizen Sustainability Award 2017’, an annual event organized by the Ceylon Chamber of Commerce, while Hatton National Bank PLC and Cargills (Ceylon) PLC became the first and second runner up of the competition, respectively, last night at the Cinnamon Grand Hotel.

Aitken Spence PLC, Hatton National Bank PLC, Cargills (Ceylon) PLC, Nestle Lanka PLC, Access Engineering PLC, Singer Sri Lanka PLC, Peoples’ Leasing & Finance PLC, Ceylon Biscuits Limited, National Development Bank PLC and MAGA Engineering (Private) Limited were recognized as the top ten corporate citizens of the year, during the awards night.

Access Engineering PLC won the Less than Rs. 15 billion Annual Turnover ‘Best Corporate Citizen Sustainability Award 2017’ offered under ‘Category B’, while Citizens Development Business Finance PLC became the first runner up of the said category.

Under Category Awards, Access Engineering PLC won a category award for Corporate Environmental Management, MAGA Engineering (Private) Limited was awarded for Environmental Integration, Hatton National Bank was recognized for Environment Beyond the Business, and Aitken Spence PLC won two category awards for Employee Relations and Community Relations, respectively.

Nestle Lanka PLC was honored for Customer Relations, Nations Trust Bank PLC for its work on Governance, Sirio Limited was awarded for Financial Performance and the Bank of Ceylon for its efforts in Economic Contribution.

Aitken Spence PLC also won a Triple Bottom Line Award for its work on Environmental Sustainability, Nestle Lanka PLC was recognized for its contribution made towards Social Sustainability, while Bank of Ceylon was awarded for its actions on Economic Sustainability.

The sector awards were won by Access Engineering for the Construction Sector, Hatton National Bank PLC for Finance Sector, Nestle Lanka PLC for Manufacturing sector, Aitken Spence PLC for Diversified Holdings while Sri Lanka Telecom PLC won a ‘Sector‘ award under the ‘Other’ category.

The award for the Best Presented Application was won by Nestle Lanka PLC. Japanese Ambassador in Sri Lanka, Kenichi Suganuma attended as the Chief Guest of the event, while David Bent, a global expert on Corporate Sustainability delivered the keynote address. 

LB Finance has received Colombo Stock Exchange approval to raise Rs 3 billion via a debenture issue, the company said in a stock exchange filing.

Accordingly, the company will issue 20,000,000 debentures, with an option to issue up to a further 10,000,000 debentures in the event of an over-subscription of the initial issue, at an issue price of Rs 100 per share.

Capital Alliance Partners Limited is the managers to the issue.

The subscription list of the issue will open on December 4. (IH)

No partnership between India and Sri Lanka is as strong as the historic Indo-Lanka trade pact inked way back in 1998.

“Indo-Sri Lanka Free Trade Agreement was the most significant Indo-Sri Lanka partnership we have realised on the commercial front,” said Minister of Industry and Commerce Rishad Bathiudeen, in Chennai recently.

Minister Bathiudeen was addressing the inaugural event of the UEF Trade Summit 2017 at the Chennai Trade Centre, Tamil Nadu.

The event, the second edition in the series organized by the United Economic Forum (UEF), was unveiled by Minister for Finance of Government of Jammu and Kashmir, Haseeb A. Drabu. UEF is currently led by Ahmed A.R. Buhari, Founder President and CEO of Dubai-based Coal and Oil Group (C&O).

“The most significant Sri Lanka Free Trade Agreement (ISFTA) played a crucial role in shaping Sri Lanka’s subsequent economic integration with other countries in the region,” said Minister Bathiudeen. “We signed it in 1998. Undoubtedly this was the most significant Indo-Sri Lanka partnership we have realised on the commercial front. I am sure that the ISFTA played a crucial role as a catalyst that shaped our subsequent economic integration with other countries in the region. With the ISFTA becoming operational in year 2000, the value of Indo-Lanka bilateral trade has increased in an unprecedented manner from US$ 650 mn in 2000, to close to US$ 5 billion by 2016.” 

Investors from seven countries are participating in the first Sri Lanka Economic and Investment Conclave which opened at the Kingsbury Hotel, Colombo, yesterday.

The business seminar is focusing on investment opportunities in Sri Lanka.

Dr. Palitha Kohona, former Ambassador to the United Nations and Permanent Secretary to the Ministry of Foreign Affairs, opened the event.

China’s ‘One Belt, One Road’ initiative, sector-specific investment opportunities, and Sri Lanka’s position as a “gateway to India” are topics that will be covered over the two- day event which will close today.

The seminar is sponsored by the Federation of Industry and Commerce of China, the Colombo Chamber of Commerce and the Indian Chamber of Commerce. 

Liberalization of shipping sector is necessary to achieve the Vision 2025 objective of creating a knowledge-based, highly competitive social market economy at the centre of the Indian Ocean, Policy Planning and Economic Development Deputy Minister Dr Harsha de Silva said.

The Deputy Minister, speaking at the Committee Stage debate of Budget 2018 in Parliament yesterday when the Finance Heads of Ports and Shipping Ministry were taken up, said the Government, as a policy, is in favour of liberalization.

“Today we have a multi-polar world. In the next 25-50 years, wealth will be created in the countries surrounding the Indian Ocean. Countries like India, China, Bangladesh, Vietnam and Myanmar are rapidly growing. We must make sure we are well-positioned to leverage the growing wealth creation in this part of the world. We cannot miss this chance as we did many times in the past,” said the deputy minister.

“Even 2,500 years ago Sri Lanka was part of the Spice Route and our cinnamon found its way to European countries. The Portuguese, Dutch and English arrived in our country to use the country as a trading hub,” he added.

He said Sri Lanka’s international trade has dropped considerably over the past years as our transaction costs are comparatively high.

“As the existing laws and minimum rates have been fixed without any basis of competition, we have been unable to attract large shipping lines to the country. Association of Tea Exporters and Sri Lanka Export Association have spoken in favour of the budget proposal to fully open up the shipping sector. They believe it will bring down their export costs and thereby they will be able to be more competitive in the world market. On the other hand, the Ceylon Association of Shipping Agents has spoken against the move raising concerns of losing their business. The Government will discuss with the shipping agents and arrive at a decision,” he said.

“Several giant shipping lines have expressed their interest in improving their footprint in Sri Lanka. We cannot sustain ourselves just by transshipment. We have to have cargo destined to Sri Lanka. We must be able to add ourselves to global production networks,” he noted. 

Total government revenue increased by 15.7% to Rs. 1,172.4 billion in the first eight months of 2017, compared to Rs. 1,013.4 billion in the same period of 2016, a Finance Ministry report said.

Tax revenue increased by 17.5% to Rs. 1,094.9 billion whereas non-tax revenue declined by 4.9% to Rs. 77.4 billion during the review period in 2017.

Domestic consumption base tax revenue increased by 26.9% to Rs. 342.3 billion in the first eight months of 2017, compared to Rs. 269.7 billion recorded in the same period.

This was mainly due to increased domestic Value Added Tax (VAT) revenue by 67.5% to Rs. 181.4 billion in the review period of 2017, compared to Rs. 108.3 billion in the same period of 2016, reflecting increased VAT rate to 15% from 11% with effect from November 2016.

Revenue from Nation Building Tax (NBT) also contributed to this increment on domestic base tax consumption.

However, revenue generated from liquor decreased by 5.9% to Rs. 73.6 billion in the respective period of 2017, due to declined consumption resulting from increased excise duty rates on liquor products.

Meanwhile the revenue from cigarette products declined by 8.1% to Rs. 54.6 billion in the review period in 2017, due to declined production stemming from increased tax rates on cigarettes. As a result, revenue collected from excise duty imposed on liquor and cigarettes dropped by 6.9% to Rs 128.3 billion in the review period of 2017.

Revenue from import base tax revenue increased by 16.3% to Rs. 552.1 billion during the first eight months of 2017, compared to Rs. 474.9 billion recorded in the same period of 2016.

The revenue generated from VAT on imports significantly increased by 61% to Rs. 108.6 billion mainly due to increased VAT rate to 15%.

Revenue from NBT on imports increased by 6.0% to Rs. 12.4 billion, resulting from the enhanced import base economic activities.

Revenue from Ports and Airports Development Levy (PAL) increased by 15.8% to Rs. 65.6 billion.

Meanwhile, revenue from Special Commodity Levy (SCL) increased by 23.4% to Rs. 49.2 billion in the reference period of 2017 benefiting the rate revisions done to encourage domestic productions.

Total revenue from excise duty imposed on imported items enhanced by 15.5% to Rs 184.2 billion in the first eight months of 2017.

The revenue generated from excise duty on motor vehicles increased by 8.0% to Rs 129.5 billion during the review period of 2017 due to increased vehicle imports by 2.1% to Rs 298,182.

Meanwhile, re-introduction of concessionary duty schemes on import of motor vehicles negatively impacted on government revenue.

In context of direct taxes, the revenue was increased by 9.1% to Rs. 171.0 billion in the first eight months of 2017 compared to Rs. 156.7 billion in the same period of 2016.

The revenue from Economic Service Charge (ESC) significantly increased by 181.7% to Rs. 31.2 billion due to increased tax rate to 0.5% from 0.25%.

Meanwhile, revenue from Pay-As-You-Earn (PAYE) increased by 18.6% to Rs. 22.4 billion due to improved tax administration and enhanced high wage employment in high earning categories such as professional services, etc.

However, revenue from corporate and non-corporate income tax marginally declined by 1.3% to Rs. 81.2 billion while revenue on tax on interest declined by 18.6% to Rs. 36.2 billion due to lower issuance of Treasury Bills and Bonds.

In the meantime, revenue from Telecommunication Levy (TL) declined by 1.6% to Rs. 23.3 billion during the first eight months of 2017.

Non-tax revenue declined by 4.9% to Rs. 77.4 billion in the first eight months of 2017 compared to Rs. 81.4 billion recorded in the same period of 2016.

Government expenditure consisting of recurrent and capital expenditure increased by 18.0% to Rs. 1,694.9 billion in the first eight months of 2017 compared to Rs. 1,499.1 billion recorded in the same period of 2016.

Recurrent expenditure increased by 11.6% to Rs. 1,294.3 billion mainly due to increased interest payment by 25.1% to Rs. 518.6 billion due to increase in interest rates during the period.

Salaries payment and pension payments increased by 3.6% to Rs. 392.5 billion and by 5.9% to Rs. 120.2 billion during the review period of 2017 due to increase of basic salary from 2016.

Meanwhile, capital expenditure increased by 17.9% to Rs. 400.5 billion in the first eight months of 2017 compared to Rs. 339.6 billion in the same period of 2016.

The expenditure in welfare programmes marginally declined by 2.8% to Rs. 113.6 billion. Public investment increased by 16.1% to Rs. 404.8 billion in the period of January to August, 2017 compared to Rs. 348.7 billion recorded in the same period of 2016.

The overall budget deficit was Rs. 520 billion during the first eight months of 2017 compared to Rs. 485 billion in the same period of 2016. 

Intex South Asia exhibition was held recently at Sri Lanka Exhibition and Convention Centre (SLECC), Colombo.

Intex South Asia is the largest and only international sourcing textile show in South Asia region connecting global exhibitors from India, Pakistan, Bangladesh, Sri Lanka, China, Korea, Taiwan, Hong Kong and more, buyers from across the South Asia region and other international markets.

The third edition of Intex South Asia in 2017 is the largest and only fair in South Asia specifically designed to synergise the garmenting needs of international brands with the manufacturing strength of South Asia, satisfying both exports and large domestic markets.

On the back of highly successful shows in 2015 and 2016, Intex South Asia 2017, will be 60% bigger than 2016 and showcased around 250 exhibitors from 15 countries. Buyers from more than 25 countries visited Intex South Asia 2017 in Colombo.

Intex South Asia was created as a meeting point to bring the best in fibers, yarns, apparel fabrics, denims and allied services from around the world to interact with buyers from the biggest manufacturing and consuming region in the world - South Asia and other international markets. Intex South Asia provided an excellent opportunity to meet potential customers, explore new market opportunities.

(DJ)

The Chartered Institute of Logistics and Transport Sri Lanka (CILT Sri Lanka) announced the launch of ‘CILT Sri Lanka Logistics Excellence Awards and Scholarships 2018’ at the recently concluded CILT International Conference, held at The Kingsbury.

The Logistics and Transport industry is a vital component of the Sri Lankan economy and, as the leading professional association for the industry, CILT Sri Lanka wishes to recognise and celebrate the exceptional contributions that organisations and individuals have made to take the industry to new heights and enhance the contributions to the national economy.

Furthermore, as an effort to advance the knowledge and expertise of new entrants and youth in the industry, and contribute to their overall capacity enrichment, CILT Sri Lanka plans to award scholarships to students to support them to be the future leaders of the industry. “CILT Sri Lanka believes that industry recognition and capacity building would go a long way in developing the industry and augmenting the performance of the Logistics and Transportation sector”, said Dr. Lalith Edirisinghe, CILT Council Member and Chairman of the Awards and Scholarships Committee.

The CILT Sri Lanka Logistics Excellence Awards candidates are to be considered under two categories, namely Individual and Corporate.The Award for the individual category would be a “Lifetime Achievement Award” bestowed on an individual who has an outstanding track record in the Transport and Logistics Industry. Similarly, there will be three Awards under the corporate category to recognise the most outstanding organizations in the Transport and Logistics Industry. The three corporate awards will represent large, medium, and small categories.

Logistics and Transport education would be the key to capacity building efforts. Therefore, CILT Sri Lanka wishes to offer academic scholarships. Under the Scholarship program, CILT Sri Lanka declared that a variety of scholarships will be offered for study courses in Logistics and Transport at Diploma, Undergraduate, and Postgraduate degree levels.

The final selection process will be carried out by an independent panel of judges. 

The Auditor General’s Forum is the Maldives’ national platform for all professional auditors and accountants to address strategic issues that are shaping the operating environment of organizations today and gain insights to effectively manage the associated risks of business.

Invited to address the gathering were eminent Sri Lankan professionals Arjuna Herath, Senior Partner Ernest & Young and Michel Nugawela, Partner Interbrand Sri Lanka and CEO of MND.

Herath gave the keynote address, while Michel Nugawela spoke on ‘The Leadership Brand’.

Arjuna Herath is the Chair PAODC of IFAC, Council Member of CA Sri Lanka and Senior Partner of Ernst & Young. His vast experience and expertise in his field has led to him being considered to be one of Sri Lanka’s most respected accounting professionals.

Michel Nugawela is the Sri Lanka Partner for Interbrand, the world’s largest and most influential brand consultancy. He has branded and repositioned many of Sri Lanka’s most respected brands and brings over two decades experience in brand strategy and positioning.

The latest Colombo Big Data meetup took place recently at Virtusa. Gathered at this quarterly event were big data enthusiasts from academia and industry eager to discuss the latest tools and technologies in the field.

The event aims to bring together like-minded individuals to create a forum for the exchange of ideas and the opportunity to network. By doing so these meetups aim to improve the research done in the field of big data.

The first speaker of the evening was Dinesh Asanka, Microsoft MVP, Senior Architect at Virtusa, who spoke on the topic of Linguistic Analytics on Data Warehousing.

The second speaker was Dinesh Priyankara, Microsoft MVP, MCT, Founder / Principal Architect at dinesQL, who spoke on the topic of Microsoft HDInsight: Apache Hadoop as a Cloud Service. 

MicroMoney Lanka Pvt. Ltd, an international social lending company introduced by Prosperous Capital and Credit Ltd to the Sri Lanka market, launched Micro Money Social Loan Advance Scheme, which is approved and executed via mobiles.

MicroMoney is an open source credit and big data bureau that connects new customers to all existing financial services.

MicroMoney A.I. platform uses complex algorithms to predict creditworthiness of all customers and in just 15 minutes a borrower can get their very first loan in his or her life just from their smartphone.

All customers have an ability to pay less interest and have a higher credit rating, if they use this platform more often.

All aggregated big data and credit histories are stored on the blockchain.

Thousands of existing businesses will get access to millions of new customers which the company will bring to the global economy.

Country Manager MicroMoney, Malsha Thilakarathne said that any person who applies for a 'loan' would be given it in less than 24 hours.

The cash would be dispersed via an online payment method and it could be withdrawn from any ATM. The second state would be where withdrawal could be made via applications like EZY cash and other systems.

Any user could download the MicroMoney app and enjoy this facility.

He said that the company has allocated Rs. 1.5 million for the first year of operations and this would be increased according to the demand. Prosperous Capital hopes that MicroMoney would become a self-funding entity in two years.

The credit would start from as low as Rs. 7,500 and would go up to Rs. 100,000 with single digit interest being charged.

As for collateral, we will take a salary slip which too could be scanned and forwarded to us from the mobile itself.

"The main target market would be low income employees."

Talking about the technology behind creating MicroMoney, Thilakarathne said that the technology was totally homegrown.

She said that the system was started and executed via Face book and due to its popularity they decided to open a special office in Colombo 3 as well.

"This is a 100% online system executed via mobiles and we expect an island wide response." She also said that a unique feature of this credit scheme is that the loan would be applied, executed and processed without the customer and MicroMoney officials meeting each other.

Asked what they would do for defaulters, he said that they would be take general legal action as per the e-agreement and generally the defaulting rate is very minimal since the solution is highly useful for the unbanked and underbanked populations in the world for their urgent and important needs without any hassle.