business Sri Lanka

The Research Intelligence Unit(RIU) will be hosting its annual edition of RIU Investor Forum on May 17, 2018 at the Sri Lanka High Commission in London, UK.

Their objective is to promote and channel investment into Sri Lanka from among the high net worth individuals (HNI) living overseas while also building strong interest among the investor community based in key global financial hubs. Foreign investors have shown confidence towards investing in Sri Lanka as foreign direct investment (FDI) into Sri Lanka has grown to over US$ 1.63 billion in 2017, doubling the US$ 802 million received in the previous year. As with our previous events we are proud to work with the UK High Commission in London to reach out to the corporate investors living in the UK, Roshan Madawela, head of the Research Intelligence Unit said.

“The UK is easily the most significant diaspora market for Sri Lanka both in terms of quality and quantity. We look forward to concluding yet another successful event in the UK together with our sponsors and associates.” The United Kingdom has over 436,000 UK citizens with Sri Lankan origin and they maintain a regular financial or real estate related presence in their country of origin.

The event will bring together experts from disciplines; property development and management, infrastructure development and economics.

The first 10 MW dendro power plant in Sri Lanka constructed at Kalawaaragama in Moneragala District by Green Watts (Pvt) Ltd is scheduled to be commissioned in September 2018.

The project is being implemented by Green Watts (Pvt) Ltd a joint venture company between private sector organizations from China and Sri Lanka.

The Principle Chinese partners are Messrs. Beijing Full Dimension Power Tech Company Ltd, a company with many years of experience in development and operation of bio mass and other power plants across many countries and Nanjing Turbine and Electric Machinery group Company Ltd which is one of the largest Steam Turbine manufacturers in China.

Further one of their subsidiary companies – NTCE has been awarded the EPC contract for the implementation of the project. The local partners who initiated and developed the project up to the level of final approval are professionals with long years’ experience in technology and industry.

They have contributed their knowledge and local expertise to optimize the integration of the project with the rural economy with significant flow of financial and other benefits to the people in the project area, which is in one of the least developed provinces in the country.

The project layout is designed on the basis of non conventional concept to optimize the efficiency and to mitigate the risk which consists of six biomass boilers using Gliricidia wood as the fuel and three steam turbine generators as the core of the power generation system. The cooling system uses ground water resources supplemented by large scale collection of rainwater runoff.

The external sector performance in November 2017 was supported by continued inflows to the financial account of the Balance of Payments (BOP) mainly with higher foreign inflows to the government securities market, and marginally improved earnings from tourism.

Although a double-digit growth in exports has been recorded, partly driven by the low base recorded in November 2016, the trade deficit expanded considerably during the month with higher imports. Meanwhile, workers’ remittances continued to decline, owing to adverse economic and geopolitical conditions prevailing in the Middle Eastern region. Accordingly, the BOP recorded an overall surplus of around US dollars 2.0 billion by end November 2017.

Gross official reserves also increased to US dollars 7.3 billion (equivalent to 4.2 months of imports) by end November 2017 from US dollars 6.0 billion recorded at end 2016.

The deficit in the trade balance expanded in November 2017, while the trade deficit on a cumulative

Basis also widened during the first eleven months of 2017 in comparison to the value recorded during the corresponding period of the previous year. This was due to higher import expenditure on account of increased expenses on fuel imports.

Exports continued to record a double-digit growth for the fifth consecutive month in November 2017. However, this growth was partly driven by the low base recorded in November 2016. Earnings from textiles and garments exports contributed largely for this growth.

Export earnings from garments increased for the fifth consecutive month in November 2017 with increased demand from the EU and the USA and non-traditional markets such as Australia, Hong Kong and UAE.

Following the restoration of the GSP+ facility, earnings from garment exports to the EU continued to expand, and in November 2017, it grew by 13.8 per cent (year-on-year), while garment exports to the USA increased by 11.9 per cent.

In addition, earnings from seafood exports increased significantly during the month mainly due to increased exports to the EU market reflecting the positive impact of the removal of the ban on exports of fisheries products to the EU market and the restoration of the GSP+ facility.

Reporting the highest monthly value since November 2011, expenditure on imports increased significantly in November 2017. This was due to high expenditure incurred for fuel imports as a result of significant increase in crude oil and refined petroleum products.

Despite the slower than expected improvement in the current account, the financial account of the BOP continued to strengthen during the month of November 2017.

Sri Lanka’s gross official reserves increased from US dollars 6 billion recorded as at end 2016 to US dollars 7.3 billion by end November 2017, which are sufficient to finance 4.2 months of imports.

 Fitch Ratings has assigned DFCC Bank PLC’s (DFCC, B+/AA-(lka)/Stable) proposed Sri Lanka rupee-denominated Basel III-compliant subordinated unsecured debentures an expected National Long-Term Rating of ‘A+(lka)(EXP)’.

The debentures, totalling Rs 7 billion, will have maturities of five and seven years and carry fixed coupons. The debentures qualify as regulatory Tier II capital for the bank and include a non-viability clause. The bank plans to use the proceeds to support its loan-book expansion and strengthen its Tier II capital base. The debentures will be listed on the Colombo Stock Exchange.

The final rating is subject to the receipt of final documentation conforming to information already received. Fitch rates the proposed Basel III Tier II notes one notch below the bank’s National Long-Term Rating of ‘AA-(lka)’. This reflects the notes’ higher loss-severity risks compared with senior unsecured instruments due to the notes’ subordinated status. The notes include a non-viability clause whereby they would convert to equity upon the occurrence of a trigger event, as determined by the Monetary Board of Sri Lanka.

DFCC’s National Long-Term Rating is used as the anchor rating because the rating reflects the bank’s standalone financial strength. Fitch believes the bank’s standalone credit profile best indicates the risk of becoming non-viable.

Fitch has not differentiated the notching on the proposed notes from the notching on DFCC’s legacy Tier II notes as it is assumed that the authorities would step in late, moving the point of non-viability close to liquidation. Fitch has not applied additional notching to the notes for non-performance risk according to Fitch’s criteria, as the notes have no going-concern loss-absorption features. DFCC’s ratings also reflect its developing commercial banking franchise and capitalisation, which is still high relative to rating peers. The rating of the notes would move in tandem with DFCC’s National Long-Term Rating.

John Keells Holdings said group net profit has fallen 13% to Rs 4.49 billion in the December 2017 quarter from the previous year.

The Group profit before tax (PBT) for the first nine months of the financial year 2017/18 at Rs 14.87 billion is a decrease of 4 per cent over the PBT of Rs 15.48 billion recorded in the same period of the previous financial year Chairman, Susantha Ratnayake said. The Group PBT at Rs 5.83 billion in the third quarter of the financial year 2017/18 is a decrease of 13 per cent over the Rs 6.72 billion recorded in the corresponding period of the previous financial year.

The profit attributable to shareholders in the first nine months at Rs 11.06 billion is a decrease of 2 per cent over the corresponding period of the previous financial year while the Rs 4.49 billion recorded in the third quarter is a decrease of 13 per cent over the previous year. The Company PBT for the first nine months of the financial year 2017/18 at Rs 7.90 billion is an increase of 7 per cent over the previous financial year. The Company PBT for the third quarter of 2017/18 at Rs 2.36 billion is a decrease of 16 per cent over the Rs 2.83 billion recorded in the corresponding period of 2016/17. The transportation industry group PBT of Rs.945 million in the third quarter of 2017/18 is an increase of 12 per cent over the third quarter of the previous financial year [2016/17 Q3: Rs 845 million].

The leisure industry group PBT of Rs 901 million in the third quarter of 2017/18 is a decrease of 34 per cent over the third quarter of the previous financial year [2016/17 Q3: Rs 1.36 billion].

The Maldivian resorts segment recorded an improvement in average room rates, although profitability was impacted by lower occupancies and the partial closure of “Ellaidhoo Maldives by Cinnamon” for refurbishments in October 2017.

The property industry group PBT of Rs 34 million in the third quarter of 2017/18 is a decrease of 83 per cent over the third quarter of the previous financial year [2016/17 Q3: Rs 196 million].

The Consumer Foods and Retail industry group PBT of Rs 947 million in the third quarter of 2017/18 is a decrease of 26 per cent over the third quarter of the previous financial year [2016/17 Q3: Rs 1.29 billion]. The Financial Services industry group PBT of Rs 1.54 billion in the third quarter of 2017/18 is an increase of 35 per cent over the third quarter of the previous financial year [2016/17 Q3: Rs 1.14 billion].

Granite Capital (Pvt Ltd) will invest Rs 600 million to launch Sri Lanka’s first international residential community villa development project, Catalina in Koggala.

Catalina Managing Director Jeevan William said the investment comprises 55% Sri Lankan shareholder capital, and 45% of capital from investors from US, Australia and Singapore.

He said that a five and half acre land overlooking Paddy fields have been already purchased and they will first build a model ‘show’ villa and club house. “These would be ready mid this year and the balance 21 villas would be ready by end of 2019. “We hope to market them from US$ 275, 000,” he said. William said they were targeting senior citizens and have already received inquiries from Australia, Canada and USA.

He stressed that the Catalina project was not a retirement home or a nursing home but a kind a villa concept and a country-club resort-style environment with several recreation activities for residents.

Chairman, Catalina Brad West, said that they have several projects in Indonesia, Thailand, and decided to invest in Sri Lanka as they felt people like to live here. “We also observe a good regulatory framework for investors and also for buyers as foreign ownership laws are being relaxed.”

He said that they would invest more in Sri Lanka in the future and said they would be under the BOI.

A meeting was held between President Maithripala Sirisena and a delegation of Board of Directors of Asian Development Bank (ADB) at the Presidential Secretariat on Tuesday.

The discussion was mainly about ADB grants and the progress of the ADB funded project in Sri Lanka.

ADB representatives appreciated Moragahakanda-Kaluganga multipurpose project, that directly help alleviate poverty and raise living standards of those living in agro-economy based areas. It was also mentioned that the North Western Canal under the Moragahakanda project is constructed with the assistance of ADB.

Cooperation will be provided specifically to the agricultural sector which aids to develop the rural and the poor and it is expected to broaden the assistance provided from the ADB. The President highlighted the focus areas for collaboration with ADB. They include, uplifting the economic capacity of farmers, reducing poverty, development of the SME sector with an agro-economic bias.

President Sirisena mentioned that poverty levels in the North and East are among the highest and more programmes were necessary to uplift living conditions of the people.

The government pays special attention in order to uplift the small and medium scale entrepreneurs, with a focus on increasing technology adoption in the agro sector, and increasing the export-oriented products of the SME sector are priorities for Sri Lanka.

All the representatives who were present agreed with the President to provide assistance concerning all these matters. The executive director of the Asian Development Bank and the team leader for Sri Lanka Kshatrapati Shivaj including other Board members were present at this meeting. Economic advisor to President, Dr. Sarath Rajapathirana and Secretary-General and chief economist of the National Economic Council Professor Lalith Samarakoon were present at the event.

 Fonterra Sri Lanka’s General Manager of Marketing, Vidya Sivaraja was recently appointed Managing Director of the Malaysia and Singapore business, effective February 1, 2018.

It is the first time a Sri Lankan has led one of the global dairy co-operative’s country markets.

Sunil Sethi, Managing Director of Fonterra Brands Sri Lanka & the Indian Sub-Continent, said, “Our people are our biggest asset and we want to grow with them as they grow their careers. Vidya is a strong leader with a proven track record. Her story is a reflection of the unique opportunities available to inspiring leaders to take on challenging and interesting work across the globe.”

Commenting on her new role, Vidya said, “The opportunity is incredibly exciting and I am honoured to step up to the challenge. I am looking forward to working with the fantastic team of people we have in both markets to unleash the energy in our business, strengthen our brands’ leadership positions and develop high quality dairy solutions to delight our consumers.”

Vidya began her career at Fonterra in 2004 as a Group Brand manager and drove the growth of the local dairy business under the Anchor Newdale brand.

In 2007 she was given the opportunity to work on a regional role in Singapore. This experience, Vidya says, made her appreciate the common ground diverse teams had despite different geographies, cultures and ways of working.

“My time in the regional team made me learn how to motivate and unite diverse teams. Gaining a better understanding of local nuances and the commonalities across markets helped me develop communication with global and local relevance. Global exposure helps you realise how resilient and innovative you can be, making you think and do things differently to get results.”

In 2010 Vidya returned to Sri Lanka as Marketing Director. She took on another challenge and role with the global team in 2013 as Category Director - adding to her experience across 14 markets. Vidya returned to Sri Lanka to head the marketing role for Sri Lanka in addition to developing brands and consumer opportunities for Fonterra's operations across the Indian subcontinent.

Vidya’s international career path and leadership roles have made her an obvious role model and mentor to other women in the co-op, and her emphasis on performance and people has made a mark on the Sri Lankan business.

“A core part of leadership is about building diversity to harness different perspectives, providing a strong sense of ownership and passion through clarity of purpose and fostering a contagious ‘can do’ attitude,” she says.

In building her marketing team, she actively sought non-core marketing people to source new thinking, searching for personality and attitude over age, experience, gender and qualifications on paper.

“Each person has their own strength but everybody needs to come together to do extraordinary things. One of the ways Vidya empowered her team in Sri Lanka to unleash their own potential was to encourage them to exercise their own personal passions – whether at home, with friends or at work.

 Harris Premaratne has retired from the board of Pan Asia Banking Corporation PLC as the Deputy Chairman with effect from January 28 on reaching 70 years of age as per the corporate governance rules of the Central Bank of Sri Lanka.

Following Premaratne’s retirement, board member Sarath Rangamuwa has been appointed Deputy Chairman of the bank with effect from January 29, 2018.

Rangamuwa is an experienced professional in management, finance, credit and marketing with over 26 years of senior management exposure having held key positions at strategic and operational levels.Rangamuwa is the Managing Director of Vallibel Finance PLC since its re-launch and also serves as a Director of Hunnas Falls PLC and Finance House Consortium (Pvt) Ltd.

He is a former Director of Mercantile Investments PLC and also had stints at Central Finance and Ernst & Young. A Fellow of the Chartered Institute of Marketing (UK), Rangamuwa is a member of the Institute of Management Accountants of (Australia) and has an MBA from the University of Southern Queensland.

Volkswagen, the world’s biggest carmaker, is under fire globally from politicians and environmentalists following revelations it helped to fund experiments in which monkeys and humans breathed in car fumes for hours at a time.

Angela Merkel, the German chancellor, said there was an urgent need for the company to reveal the true extent of the experiments, which were commissioned by the European Research Group of Environment and Health in the Transport Sector (EUGT), a body funded by Volkswagen, Daimler and BMW.

“These tests on monkeys or even on humans are not ethically justifiable in any shape or form,” her spokesman, Steffen Seibert, said on Monday. “The indignation of many people is absolutely understandable.”VW is already under heavy scrutiny over its role in the “dieselgate” scandal, in which the carmaker manipulated tests on about 11m cars worldwide to make it appear they met air emissions tests, when in reality they exceeded them many times over when used on the road.The company said on Monday a small internal group had mistakenly pushed for the tests to be carried out and that they did not reflect VW’s ethos. But industry observers said VW’s excuses held little water, as the experiments had been well-documented and the results presented to managers at BMW, Daimler and VW, all of whom belonged to the EUGT, a car lobby group, which has since been disbanded.

BBC

Sri Lanka’s budget openness in the latest survey has scored 44 out of 100, coming in next to last in South Asia, tied with Pakistan.

Open Budget Survey, which scores 115 countries on the openness of their budget process, is the world’s only independent assessment of information disclosure in public budgets.

The recent assessments of the 2013/14 and 2016/17 budget processes have placed Sri Lanka 60th in the world and amongst the lowest ranked countries in South Asia.

In the latest survey, of the 2016/17 budget process, Sri Lanka came in next to last in South Asia, tied with Pakistan. Afghanistan performed better than Sri Lanka, whereas Bangladesh did not.

“Compared to the previous, Sri Lanka improved in the information provided each quarter, on revenue, expenditure and debt,” Verité Research who conducted this survey in Sri Lanka said.

“However, the quality and timeliness of this information continued to fall short of many of its peers.”

Sri Lanka’s budget related reporting is governed by the Fiscal Management (Responsibility) Act.

Verité Research said the government remains compliant with this law, despite falling short of international standards on the quality and scope of its budget reports.

The research firm proposed three ways in which Sri Lanka can improve, by going beyond the letter of the law and implementing the Act it in terms of its intended purpose.

Verité Research, however, said that in past years Sri Lanka has performed better than in recent years, which points towards several of the above improvements being well within the scope of what is achievable in a short time-frame.

Improving Sri Lanka’s performance on budget openness requires alignment with international standards, Verité Research emphasized.

According to Verité, this requires the government to make two shifts: Firstly, to go beyond the letter of the law and publish timely budget information in consistent formats.

Secondly, to recognise the gaps in terms of budget information required by the law and publish adequate information that allows for the proper monitoring and scrutiny of budgetary outcomes and compliance.

Sri Lanka has legislation in place that allows for public scrutiny of budget information.

But the shortfalls in implementation, and the gaps in the requirements specified, are resulting in the country coming out in a poor light in international rankings on budget openness. (LBO)

Abans Finance PLC has partnered with Newgen, a provider of Business Process Management (BPM), Enterprise Content Management (ECM) and Customer Communication Management (CCM) platforms, to streamline its credit and loan processes.

Abans Finance will use Newgen Enterprise Mobility Framework (NEMF) and ECM software to seamlessly manage the initiation of loan and leasing approvals and collection processes. Based on Newgen’s Intelligent Business Process Suite’s (iBPS) platform, NEMF will help them undertake mobility initiatives and set them on a digital transformation journey.

“Credit processes are complex and managing and verification of all the documents manually can be very challenging. With NEMF on board, we will improve information management of our organisation and extend flexibility to our workforce to accommodate process changes without sacrificing our service levels. Moreover, it will help our customers get their requests approved strategically with more agility,” commented Gayan Wickramasinghe, Head of IT, Abans Finance PLC.

“Newgen always strives to facilitate seamless digital transformation within the organisation it is associated with. We will facilitate Abans Finance with plug and play components of our Mobility Framework, which will enable its stakeholders to interact, share, collaborate, socialize and offer services in a seamless way with a strong digital backbone,” said Diwakar Nigam, MD and Chairman, Newgen Software. NEMF and OmniDocs will assist Abans Finance in informed decision making pertaining to loan initiations and approvals, real-time customer engagement and higher field force productivity due to low code highly configurable hybrid mobile applications with better privacy and security.

Abans Finance PLC is a member of the prestigious Abans Group, a household name in Sri Lanka. Abans Group recognizing the potential for financial services in the country and the available resources at their disposal, decided to establish Abans Finance PLC.

Newgen Software is a provider of Business Process Management (BPM), Enterprise Content Management (ECM) and Customer Communication Management (CCM) platforms with large, mission-critical solutions deployed at world’s leading corporate.

 The industry partnership (IP) program is a joint academic cum industry work exposure programme that helps undergraduates understand the essence of business at large.

Airtel has now opened its doors to the undergraduates of the Department of Marketing Management, Faculty of Commerce and Management Studies, University of Kelaniya under the Airtel Industry Partnership Programme. The programme offers undergraduates of the University of Kelaniya a cohesive working experience that encompasses the opportunity to hone their soft skills and business acumen through a series of experimental learning and team projects.

“With the rising demand for market-ready graduates which has become a vital need in Sri Lanka, by partnering with the Department of Marketing Management at University of Kelaniya, we hope to bridge the skill gap between fresh graduates and market-ready graduates.” said Jinesh Hegde, CEO of Bharti Airtel Lanka. “After all, a country’s future depends on the quality of education it provides, and our responsibility is to support the education by giving this education a holistic approach.”

The University of Kelaniya stands among Sri Lanka’s leading higher education institutions, providing undergraduate and postgraduate programmes in numerous fields of study.

Bharti Airtel Lanka, a subsidiary of Bharti Airtel—the world’s third largest mobile operator by subscribers, across 17 countries—was the fastest network to reach the one million customers mark and continues to sustain its growth momentum in the youth segment

Facebook has said it will block any advertising promoting cryptocurrency products and services.

The company said it was open to emerging technologies but many companies were not acting in “good faith” when extolling the virtues buying into virtual currencies.

Recently, a wave of new currencies have emerged, seeking to piggyback Bitcoin's huge increase in value.

Facebook urged users to report any ads the company's security measures missed.

It admitted it would not always catch every ad for a cryptocurrency.

“We want people to continue to discover and learn about new products and services through Facebook ads without fear of scams or deception,” wrote Rob Leathern, product management director for Facebook Business.

“That said, there are many companies who are advertising binary options, ICOs and cryptocurrencies that are not currently operating in good faith.”

An ICO - initial coin offering - encourages people to buy into new cryptocurrencies before they launch in the hope they are one day worth a lot more money as the coin becomes more popular.

Some companies have used ICOs as a way to raise great sums of money, but without the regulatory burden associated with raising cash though more traditional investment channels.

Because of this, many ICOs have simply disappeared, with little recourse for the “investor” - a loose term, since those who pay into ICOs do not typically get a genuine stake in the new company. (BBC)

Sri Lanka’s latest taxi booking and trip scheduling app Taxiyak has taken another leap in delivering higher order value to its partner drivers. Taxiyak officially signed up with Pay & Go payment kiosks to enable partner drivers to make payments in a fast, easy and more convenient manner recently.

The payment kiosk, which is available island wide accommodating payments to multiple vendors, now carries the Taxiyak payment option. The agreement took place at the Pay & Go head office at Kirula Road, Colombo 05 with the participation of Mr. Vardan Aslibekyan, General Director – Pay & Go, Mr. Ushantha Samaraweera, Marketing & Business Development Manager – Pay & Go, Mr. Hanif M. Ibrahim, Managing Director – Taxiyak, Mr. Ahamed Salik, Chief Technical Officer – Taxiyak, and Ms. Indika Wijayaratne, Manager Sales & Marketing – Taxiyak.

As a proactive company that looks at adding value to its drivers and customers, Taxiyak Managing Director Hanif Ibrahim stated: “We take every measure to ensure convenience is added to the lives of our partner drivers as well as customers, enhancing their lifestyles in every way possible.”

Taxiyak is a product of Airport Travels Holdings, specialists in airport transfers and trip scheduling with over 20 years of experience in the industry, known for quality and service excellence. With a wide mix of vehicles available, especially Tuks, Taxiyak strongly believes that adding value to their drivers and riders is the way forward. With a solid grounding of vehicles in the market, Taxiyak is poised for sustainable growth and with such convenience added to the ecosystem, the company is in a positive path of progress.

Gulf Air, the Kingdom of Bahrain’s national carrier, has been independently ranked by UK aviation analysts OAG the third most punctual airline in 2017, amongst Middle East and African airlines, with an average on-time performance (OTP) of 80.22%.

Gulf Air Chief Executive Officer Krešimir Kučko commented, “Punctuality is a critical element for travelers and we are delighted to be recognized yet again as a leading global player in OTP. Gulf Air is committed to delivering on its promise to get passengers to their destinations in a timely manner.”

“We are gearing up to welcome our incoming fleet of 39 new Boeing and Airbus aircraft of which a total of 5 Boeing 787-9 Dreamliners and 2 Airbus A320Neos will have entered Gulf Air’s fleet by end-2018. With this development, passengers can soon enjoy not only Gulf Air’s punctuality and trademark Arabian hospitality, but also remarkable product and service enhancements alongside network growth.”

Gulf Air has held the top spot in recent years for OTP, ranking as the most punctual airline in 2016, amongst GCC airlines. Gulf Air also ranked first among major airlines from the Middle East and Africa for the 5th Annual Airline On-time Performance Service Awards in 2013. Gulf Air’s network currently serves 42 cities in 25 countries.

Hellmann Worldwide Logistics (HWL) and MAS Holdings establish the joint venture “Hellmann MAS Supply Chain (HMSC)” in Sri Lanka by combining Hellmann´s existing contract logistics business in Sri Lanka and in-house logistics activities of MAS.

With the formation of the new JV, the existing HWL business in Sri Lanka transitions into a focused air and sea unit, whilst the new JV will provide contract logistics and Fourth Party Logistics (4PL) services in Sri Lanka.

In addition to the existing Hellmann contract logistics business in Sri Lanka being transferred to the new joint venture, a new fashion logistics facility will be opened at the MAS compound in Katunayake Export Promotion Zone (KEPZ). It is the vision of HMSC to create a pull model supply chain using Sri Lanka as the hub for major global fashion brands, help produce market specific products by offering value-added services and facilitate an e-commerce channel from the source.

HSMC will also manage the procurement and coordination of MAS’ incoming air freight.

HMSC will provide its services to MAS as well as Hellmann’s existing contract logistics customers. Services offered by HMSC, which include warehousing, value added services such as re-packing, labeling, ratio packing etc. and 4PL logistics services, will also be offered to other potential customers in Sri Lanka.

Madhav Kurup, CEO for Hellmann Middle East & South Asia (MESA): “This joint venture is a clear example of two family owned companies with similar DNA coming together to create a unique expertise in Sri Lanka that will have the ability to provide services of the highest standards in contract logistics and 4PL. This venture further helps us position ourselves as the market trend setter in the global fashion supply chain, as it evolves from a push model to pull model. MAS’ well established credibility with Hellmann’s global logistics expertise, systems and processes will make us invincible in the market place.”

Shirendra Lawrence, COO of MAS stated: “ This strategic partnership with global logistics partner Hellmann is timely as it gives MAS a strong foundation to offer warehousing, value added services and 4th party logistics solutions. Hence, it gives us the opportunity to further enhance our agility and speed to market.”

Since its foundation in 1871, Hellmann Worldwide Logistics has developed into one of the largest international logistics providers. The company is represented by a worldwide network of 19,500 people in 437 branches in 162 countries.

In 1987, Mahesh, Ajay and Sharad Amalean introduced lingerie manufacturing to South Asia and there began the MAS legacy.

Today, MAS manages a portfolio of businesses with a revenue of USD 1.75bn and is positioned as one of the world’s most recognized design to delivery solution providers in the realm of apparel and textiles.

MullenLowe Sri Lanka, the fully owned operation of the multibillion-dollar New York based Inter Public Group (IPG), completed 2017 on a record high. In a tough economic climate in 2017, where market trends were contrary to growth, the company saw its top-line revenues soar almost two-and-a-half times the accepted global average with a significant contribution coming from new business.

2017 saw the market being restricted by poor consumer spending due to inflationary pressures and devastating floods and droughts, which resulted in budget contractions across business categories, overshadowing an anticipated positive outlook earlier in the same year. However this did not deter the company coming up with a very strong performance.

MullenLowe’s significant growth in 2017 came despite the company not handling any lucrative government businesses, which many companies are very dependent on and secondly it operates as a single entity at present and does not have multiple sub-units to manage conflicting businesses.

Referring to the company’s accelerated growth as “pure growth”, Thayalan Bartlett, Chief Executive Officer of MullenLowe Sri Lanka notes that MullenLowe is the single largest agency in the country today. He attributes the company’s growth to doing creatively effective work across multiple platforms and making significant gains in new business.

The company produced an average of 1.9 commercials per week during 2017 making MullenLowe the single largest producer of commercial content in the country.

Commenting on the campaigns rolled out by the agency during 2017, Dilshara Jayamanna, Senior Vice President and Executive Creative Director, MullenLowe Sri Lanka said, “Landmark work for Sunlight detergent, Clear shampoo, Rexona deodorant, Nations Trust Bank, Maliban Spicy Cracker, FriMi, Close Up toothpaste and Marmite saw us push conceptual and executional boundaries to create engaging work resulting in our clients’ brands receiving an unfair share of attention.

Collaborating more with the best local and global technical teams gave our creative an added dimension and polish, especially in the digital arena with 4 pieces of our branded content having reigned at No.1 on YouTube.”

The outlook for 2018 looks extremely promising for the company but comes with its own sent of challenges. “Finding quality talent to resource the agency as it expands and to have adequate external support to cope with the increased demand for TV productions remain our biggest challenge. In fact our 2017 growth was somewhat muted by this limitation or else we would have recorded much better figures than what we closed on,” said Thayalan. “Based on our projections we will end-up producing 125 commercials this year,” he added.

Established as LDB Lintas in 1993, and thereafter referred to as Lowe LDB, the agency has a vibrant creative legacy. It came to be known as MullenLowe as a result of a merger with US based network Mullen in 2015.

The Pathfinder Foundation in collaboration with the National University of Singapore organised a one-day joint symposium on “The Belt and Road Initiative: the Politics, Potentials & Partnerships” in Singapore Orchard Hotel on Monday.

This is the address made by Chairman, Pathfinder Foundation Bernard Goonetilleke.

I was based in Beijing18 years ago. Like other diplomats, who were based there, I was amazed at the rapid pace of development. However, the Chinese leaders saw a serious contradiction in their development model. That was, Western China lagging behind the Eastern seaboard.

The remedy prescribed by the Chinese leaders was to “Go West” to provinces like Gansu, Yunnan, Qinghai and autonomous regions like Xinjiang, Tibet and Ningxia.

Over 13 years later in 2013, the Chinese President concluded that Chinese prosperity lies beyond its borders and China needs to spread its wings and move farther west. They realized that their planfor prosperity could be achieved by reviving the ancient silk roads, both land and sea, covering Asia, Africa and Europe.

The railroads laid since then across Central Asia and Levant, provided access to many cities in Western Europe, and investment made in ports and other infrastructure along the maritime silk roadmade it possible for Chinese companies to own, or co-own, numerous ports all the way to Europe.

Five years ago, it may still have been a distant dream, but not so, today. Recently, China invited south American countries to join BRI. It appears that BRI is now poised to circle the globe, and countries stand to gain by joining the Chinese caravan!

Politics

We are living in a world immersed in politics and politics permeates every aspect of our lives. So, it is not a surprise that BRI being politicised. I recall some years ago in a western capital, I was asked: “Are you not afraid of China making inroads in to your country”? I did not think it was an expression of concern about the well-being of my country.

Being westerners, who had the world wrapped around their fingers for over five centuries, they were worried about reawakening of China. They were aware that as China advances, they should retreat. This is not a happy prospect for those who controlled vast regions ofland and equally vast stretches of oceans for centuries.

And there are others, who opposes BRI overbilateral issues.Non-participation at theBRI summit held last May by some major countries demonstrates how politics come to fore. On the other hand, what happened in Sri Lanka in 2015 is a good example, how political intrigues play critical roles, either in favour or against projects of this nature.

Potentials

The Silk Road Economic Belt, 21st century Maritime Silk Road and economic corridors connecting China’s Xinjian with Pakistan’s Gwadar port, and Kunming with Bangladesh, India and Myanmar, are estimated to cost app. US$ 900billionto Chinese financial institutions, including the Silk Road Fund, AIIB etc.

Details of projects listed as deliverables under the BRI cover areas such as policy, infrastructure, trade, finance and people to people connectivity.

Granted, all these projects may not see the light of day and some may even fail at some stage or other, as the case with any project. Yet, even if part of these projects eventually succeeds, we could witness transformation of economies of at least one third of the countries in the world, which will not be a mean achievement.

If we were to take ports of Gwadar in Pakistan, Hambantota in Sri Lanka and KyaukPyu in Myanmaras examples, associated with those ports, there will be massive special economic zones, which would bring large number of industries to those under-developed regions with resultant positive andnegative consequences. The situation in other countries will not be any different. Such is the potential of BRI.

Partnership building

Partnership building through BRI appears to be the expectation of China. Importance of BRI to China could be understood by the recent decision taken to amend the Constitution of CPC to include promotion of BRI as one of China’s major future objectives.

The stated objective of China is to ‘build a community of shared interest’ and achieve ‘shared growth’ through ‘discussion and collaboration’.

It is quite clear that China is preparing itself to assume global leadership, economically as well as politically. Partnership building appears to be a priority to succeed in their quest.

In this context, what comes to my mind is whatthe Prime Minister of Singaporewrote on the Special ASEAN-India Commemorative Summit held in Delhi on January 25. He said,“Major global trends are reshaping the strategic outlook, presenting both challenges and opportunities. The strategic balance is shifting.”

Negotiators would confirm that the Chinese are hard bargainers. Myanmar was reportedly planning to have a 50/50 deal over the strategic KyaukPyuport.

However, reports indicate that eventually Yangon had to yield to Chinese demands for a 70% stake! Sri Lanka too, had to bargain hard and what they ended up with, may not be a bargain.

The morale of the story is that proponents should come up with projects that would provide a reasonable return on investment and seek to minimize negative consequences such as degradation of environment.

Above all, they should also learn to bargain hard and not fall victim to corruption, so that the Belt and Road Initiative will be a win-win situation for both China as well as the participating countries.

Pathfinder and future

In conclusion, I wish to say that the Pathfinder Foundation is happy tobe associated with the Instituteof South Asian Studies(ISAS) of the National University of Singapore,to take part in this symposium along with the historical Sichuan University.

Having seen the enthusiastic participation, I am confident that the participants would conclude the symposium served its purpose by connecting Singapore and Sri Lanka, two significant hubs of the Maritime Silk Road. Pathfinder Foundation looks forward for similar joint events with ISASin the future.

Fitch Ratings has downgraded Housing Development Finance Corporation Bank of Sri Lanka’s (HDFC Bank) National Long-Term Rating to ‘BBB-(lka)’ from ‘BBB(lka)’.

HDFC Bank’s senior secured and senior unsecured debentures have also been downgraded to ‘BBB-(lka)’ from ‘BBB(lka)’. The ratings are maintained on Rating Watch Negative (RWN).

The one-notch downgrade reflects Fitch’s assessment of the weakening of support from the Sri Lanka sovereign (B+/Stable) to HDFC Bank. This is after the state failed to provide capital to the bank in timely manner for it to meet the minimum Rs 5 billion regulatory capital requirement by January 1, 2018. However, Fitch believes that it is still likely that the authorities would provide adequate support to meet the shortfall within an extended deadline.

The RWN reflects the risk that the state, as major shareholder, would not raise the bank’s capital to meet the minimum capital requirement, in which case Fitch will downgrade the rating to reflect the bank’s weaker intrinsic strength.

Silk Air, the regional wing of Singapore Airlines (SIA), will be increasing flight frequency to Singapore to meet growing travel demand.

It will come into effect from March 27, and SilkAir will operate four flights per week from Colombo, while SIA will continue to operate its daily night flight SQ468 and return flight SQ469.

Customers will be provided with a full-service experience and provides excellent connecting flight options as it flies to 52 destinations across 14 countries in the world.

The Spices and Allied Products Producers’ and Traders’ Association yesterday expressed satisfaction over the decision taken by the government to ban the re-export of pepper from Sri Lanka with effect from February 10, 2018.

The Spices and Allied Products Producers’ and Traders’ Association organization said it was happy to learn from the media that President Maitripala Sirisena has directed that the re-export of pepper from Sri Lanka would be banned from February 10 2018.”This step is in the right direction to protect Sri Lanka pepper.”

In addition to pepper, President Sirisena also stated that the re-export of tea will also be stopped immediately. The President expressed these views at a public rally held in Badulla recently.

According to President Sirisena, the import and re-export of pepper amid low global prices has hurt the industry growth prospects to a great extent and has led to a collapse of the industry.

The President further noted that the import and re-export of tea has also negatively impacted the image of Ceylon Tea. The 50-percent concession given to farmers on seed potatoes would also be increased to 100 percent, the President noted. (IH)

Sri Lanka customs data analysed by Siyaka Research confirms that the country earned a highest ever Rs. 233.3 billion from tea exports in 2017.

A massive 26% or Rs. 48 billion more than 2016 figure of Rs. 184 billion.

The previous rupee record was Rs. 212 billion in 2014 earned from an export quantity of 327 Mnkg compared with 288 Mnkg this year. The approximate Dollar value of all exports is $ 1.53 bln, the highest since 2014 value of $1.63 bln. In that year the country exported a highest ever 327 Mnkg, 12% more.

This makes 2017 FOB value a record $ 5.30 well above the previous record of $ 5 achieved in 2014 and much more than the FOB price of $ 4.39 achieved in 2016.

This year’s figure is the lowest since 2009 when 289.6 Mnkg was exported. The countries export quantities peaked at 327.4 Mnkg in 2014 but have been sharply lower since then. A review of the different segments have bulk tea shipments at 43% with Packets at 47%.

Ideal Developments Canada and Pura Resorts Canada a subsidiary of the Ideal Group announced the first ever international FDI into Sri Lanka’s east coast.

It will consist of 50 luxury resort chalets and 62 luxury island homes built for completion by April 2020 on the pristine beaches of Nilaveli, Trincomalee.

PURA Luxury Resort Villas is the very first project being launched in Sri Lanka by this Canadian investor in Sri Lanka with an investment of US$ 57 million, said Pura Resorts Inc Managing Director and Director of Corporate Affairs Ideal Group, Sri Nithya Omkarananda.

Ideal Developments founded by Sri Lankan Shaji Nada, is a multi faceted company that collates design-forward strategies to create exceptional projects that showcase leading-edge architecture and technology, boasting an impressive portfolio of upscale custom luxury homes.

The company develops residential and commercial real estate throughout Greater Toronto Area aka GTA as well as internationally intending to maximize peace, luxury, tranquility and nature at this coastal retreat through conceptual luxury that is unique in design and unparalleled in features.

Pura Resorts embraces contemporary architecture as a striking counterpoint to this natural palette which thrives in a jungle milieu and coastal canvas.

The 62 spacious vacation villas at PURA come in three and four bedroom layouts, each featuring expansive gardens, light-filled interiors, parking, private swimming pool and glass-walled living and dining areas blurring the line between indoor and outdoor space with complete privacy.

The Citi Bank Group in their rating model on leading frontier markets shows Sri Lanka, Romania and Kenya as the most attractive markets based on six key metrics: earnings momentum, price momentum, valuation, macro growth and imbalances and monetary policy.

Citi Bank’s rating model gives investors a macro view of prospects for 12 countries.

“We thought Sri Lanka was cheap, but it turns out to be really cheap,” Andrew Howell frontier markets strategist at Citi Bank noted. “It’s a market you probably want to look at closely,” Howell, said. Frontier markets are in prime position to pioneer the use of block chain technologies and to lead in the use and development of crypto currencies, according to frontier-focused investment bank Exotix.

“We may be at the beginning of another episode of technology leapfrogging as frontier economies move straight to block chain distributed ledgers and crypto currencies as alternatives for weak domestic institutions and capital controls,” Paul Domjan, Exotix’s global head of research, City Bank said.

In an interview with WSJ Frontiers, Domjan argued that block chains, which underlie cryptocurrencies such as Bitcoin and Ether, could be invaluable in recording contracts, enabling transactions and establishing ownership in countries where institutions are weak.

The cryptocurrencies themselves are already proving popular in countries such as Zimbabwe and Venezuela where faith in the conventional currency is low.

Exotix made its prediction in a report on the key themes that could provide new opportunities for investors in frontier markets. Among the other themes it identified were China’s changing engagement with frontier markets from a predominantly extractive relationship to one based more on partnership, and the impact of mobile money, particularly the evolution of e-commerce businesses built around mobile money services.

Last Tuesday, Singapore (Aaa stable) and Sri Lanka (B1 negative) signed a free trade agreement.

Although the countries have not yet publicized the full details of the Sri Lanka-Singapore Free Trade Agreement (SLSFTA), Moody’s Credit Outlook expects that the pact will enhance the cross-border trade of goods and services and promote foreign direct investment (FDI) between the two countries, a credit positive for both.

The SLSFTA will have a larger effect on Sri Lanka’s credit quality because the potential increase in current account inflows and inward investments would help reduce its elevated external vulnerability. The SLSFTA liberalizes bilateral trade in goods. Sri Lanka will eliminate tariffs on 80% of products over 15 years. Singapore’s Ministry of Trade and Industry estimates that the agreement will result in approximately SGD10 million in annual tariff savings.

Because Singapore does not impose import duties on 99% of tariff lines, the agreement’s trade benefits for Sri Lanka will materialize through the opening of access to the broader Association of Southeast Asian Nations (ASEAN) market and other large economies given Singapore’s existing preferential trade arrangements with Australia, Japan, Korea and other countries in Southeast Asia.

In 2017, Sri Lanka was Singapore’s 37th-largest trading partner, while Singapore was Sri Lanka’s eighth-largest trading partner; total bilateral trade amounted to about 0.5% of Singapore’s GDP and 2.5% of Sri Lanka’s GDP. We expect that the SLSFTA will support growth in bilateral trade.

The extent to which the SLSFTA reduces Sri Lanka’s external vulnerability will depend on its effectiveness at bolstering services and investment flows.

Sri Lanka’s current account has a structural deficit because a large merchandise trade deficit more than offsets a surplus in services and remittance inflows.

Moreover, FDI inflows only partially finance the current account shortfall, resulting in a persistent basic balance (FDI inflows plus current account balance) deficit.

The SLSFTA is likely to boost Sri Lanka’s services receipts, particularly in tourism. Using travel and passenger transport by air as a proxy, tourism accounts for about three-quarters of the services surplus. Although Singapore comprised less than 1% of Sri Lanka’s total tourist arrivals in 2017, the SLSFTA may allow Sri Lanka to leverage Singapore’s transportation hub to attract more tourists. Additionally, there are provisions on the cross-border transfers of information by electronic means and data flows, which could aid Sri Lanka’s burgeoning IT services sector.

The agreement also will promote direct investment in Sri Lanka by Singaporean companies.

According to the Sri Lankan government, FDI from Singapore totaled $658 million (less than 1% of GDP) during 2006-17 in sectors such as food manufacturing and real estate.

By easing regulation in the services sector, the SLSFTA will broaden the scope of investment to other areas such as infrastructure, logistics, education and healthcare.

The agreement also protects against expropriation, improves transparency through safeguards against discriminatory treatment and provides for a dispute resolution mechanism, all of which create a better investment climate to attract FDI.

The free trade agreement continues Sri Lanka’s move toward greater openness of trade and investment. In particular, as part of its International Monetary Fund Extended Fund Facility program structural reform objectives, the government is reviewing its trade regime to boost trade and private-sector development, focusing on reducing costs and bolstering competitiveness through reform of para-tariffs and other nontariff barriers that have hampered exports. As part of this effort, Sri Lanka also has started negotiations on other free trade agreements, including with China.

The SLSFTA is Singapore’s 21st trade agreement with 32 trading partners, and reiterates Singapore’s commitment to free and open markets. Particularly within the region, the agreement promotes the growth of outward Singaporean investment, helps maintain its strong positive net international investment position (224% of 2016 GDP), and solidifies its strength as a hub for global trade, finance, and logistics.

LPG retailers in Sri Lanka have been compelled to increase the price of a domestic gas cylinder due to global LPG gas price hikes that has been ongoing since October 2016.

The price of a domestic gas cylinder was increased by Rs 110 by the Consumer Affairs Authority (CAA) following approval from the Cabinet of ministers based on the recommendation given by the cabinet subcommittee with regard to the cost of living.

The inevitable price increase was a direct result of the incremental price revision by Saudi Aramco, which holds price index known as the Contract Price or CP for Liquid Petroleum Gas (LPG). However, given the current market pressure which is predicted to increase in the near future, industry leaders commented on the inadequacy of the price hike and called for a sustainable and a pragmatic pricing-formula - as practiced in the case of country’s fuel price which is quite transparent.

CP Variation – Jan 2016 to March 2017

Increased consumption in the Asian region specifically China, India and Japan, higher purchases by the USA for feed stocks, high consumption in the USA and South America contributed to the global LPG price increase. While LPG retailers have been reluctant to transfer the pressure of the price hike to consumers and consequently bore the increasing expenses since October 2016, the current market pressure calls for further a price increase and a fairer mechanism to protect both the consumer as well as the retailers.

LPG Contract Price (CP) Movement in USD

Given the heavy yet necessary investments in strategic business areas required of LPG retailers such as storage, filling plant and market development in order to serve the almost 50% of consumers who had not previously been on-board of the energy-ladder, a price-revision was an unquestionable necessity.

These investments are of paramount importance not only from a business perspective but also in terms adjusting to the changing socio-economic landscape. As more and more people make the switch from wood burning stoves to LPG powered stoves, companies need to prepare to serve an expanding customer base.

LPG retailers have been heavily subsidizing the initial cost of switching to LPG gas usage from more traditional cooking methods in a bid to allow a larger cross-section of the community to adopt this more efficient and safer method of cooking.

Industry experts reiterate that the introduced price increase of Rs. 110 is merely a nominal increase in comparison to the global price hike. Retailers, consumers and authorities will have to prepare, however reluctantly for further revisions in future if the global prices continue to rise.

According to predictions announced at the summit of World LP Gas association in October 2017 had in Morocco, World LPG prices will rise by 20% - 25% in 2018 in comparison to the average price of LPG in 2017.

The high profile “Ambassadors Forum on Entrepreneurship and SME Development – East Meets West” in Bahrain was conducted and organized by Bahrain SMEs Society and Union of Gulf Corporation Council (GCC) Entrepreneurs under the patronage of Vision 2030 of the Crown Prince of the Kingdom of Bahrain.

Each year, this Regional Forum selects two serving Ambassadors with extensive experience in the sphere of Entrepreneurship Development and SMEs to speak on the topic and to reflect insights and thoughts of their respective regions and the world at large.

This year Ambassador of Sri Lanka, Dr. A. Saj U. Mendis, and Ambassador of Germany, Alfred Simms-Portz, were invited to address the Forum respectively. Former Assistant Minister of Foreign Affairs of Bahrain, Ambassador Dr. Dhafer Alumran, moderated the Forum. A large number of select invitees were present including secretaries & senior officials of Ministries, senior bureaucrats and technocrats, ambassadors and diplomats based in Bahrain, corporate executives and leaders, presidents and board members of SME and entrepreneur associations in the region and academia, among others.

The moderator and both the speakers accentuated the vitality and seminality of the SME sector to any country, be it a developed nation or a developing nation.

Ambassador Dr. Mendis, in his address, stated that the Government of Sri Lanka is extending increasing degree of importance and significance to the SME sector and to entrepreneurship development. This is particularly because a vibrant and robust SME sector coupled with entrepreneurship development could fuel economic and commercial advancement.

Further, both the speakers added that the SME sector is often referred and defined as the backbone of any given economy. However, the critical role played by the SME sector has not been extended due prominence and significance opposed to “Fortune 500” companies and other large multi-national corporates.

Dr. Mendis stressed that the development of SME sector could reduce unemployment & inequality and engender innovative ideas, creativity, innovation and entrepreneurship, thus unleashing the entrepreneurial capabilities and unlocking the potentials.

He also stated the Government Policy Framework fosters and nurtures micro-enterprises to become small enterprises to become mid-size enterprises to large enterprises to national players and regional players respectively.

The Ambassador of Germany stated that over 99% of enterprises and firms in the European Union are categorized as SMEs. He expounded in detail of the assistance and cooperation extended by the Government of Germany to uplift and to enhance the efficacy of SME sector. He also added that Germany, being the fourth largest economy in the world, the SME sector and entrepreneurial development play a critical and crucial role in advancement of the economy. The moderator and both the speakers stated that almost all “Fortune 500 ” and listed companies in the world began as micro-enterprises (MSMEs), defined as less than 10 employees.

It was interesting to note that the largest money center banks, manufacturing companies and global technology behemoths such as Microsoft, Apple, Amazon, Face-book and Google began not only as MSMEs but also in garages. Both the speakers enunciated the fact that these global companies and their respective founders had a well-defined vision to make them global players within a particular passage of time.

The key objectives of the Ambassador Forum were to exchange innovative ideas with different companies as well as with countries, to explore strategies to evolve and map-out entrepreneurship development in different countries with varying degrees of advancement, to find out challenges confronted by the global fraternity of SMEs and cross-fertilization of varied experiences of countries, among others.

Further, the SME Society and Union of GCC Entrepreneurs expressed keenness and eagerness to work and to nurture the SME Sector, particularly, with developing nations such as Sri Lanka.

For record, Ambassador of Germany, Alfred Simms-Protz, is one of the most senior career Foreign Service Officers of German Foreign Service and is a senior lawyer by profession.

The Indian economy should grow between 7 per cent and 7.5 per cent in the next fiscal year starting April 1, 2018, with exports and private investment set to rebound, the Economic Survey says.

Finance Minister Arun Jaitley tabled the survey, the annual report card of the country's financial health, in Parliament on Monday as the Budget session began.

The Economic Survey sees GDP growth at 6.75 per cent in the current fiscal year, ending March 31, 2018. It says a series of major reforms undertaken over the past year will allow real GDP growth to rise to between 7.0 per cent and 7.5 per cent in 2018-19, thereby reinstating India as the world's fastest growing major economy.

Stock markets remained strong in afternoon trade with Sensex and Nifty rising to record highs. The Sensex was up over 350 points while Nifty traded above 11,150.

Chief Economic Advisor Arvind Subramanian, who has prepared the Economic Survey, said in a tweet that growth is reviving after temporary decoupling. There are robust and broad-based signs of revival in economic activity, he added.

The economic survey says the launch of the Goods and Services Tax (GST), resolution of long-festering bad loans under the Bankruptcy Code, the implementation of a bank recapitalisation package for public sector banks and further liberalisation of the foreign direct investment regime will lift GDP growth, which began to accelerate from the second half of the current fiscal year.

The International Monetary Fund (IMF) projects the Indian economy to grow at 7.4 per cent in 2018, which will make it the fastest growing country among emerging economies. The IMF has also projected a growth rate of 7.8 per cent for India in 2019.

The economic survey has flagged risks from rising oil prices. "Some of the factors could have dampening effect on GDP growth in the coming year viz. the possibility of an increase in crude oil prices in the international market," it says.

It has also said that concerns have been expressed about growing protectionist tendencies in some countries but it remains to be seen as to how the situation unfolds.

(www.ndtv.com)

The ban of imports and usage of the Glyphosate weedicide has affected the Sri Lankan tea plantations and exports particularly to Japan, which is a major market for tea.

Glyphosate is a weedicide that was widely used by most tea plantations for the control of undergrowth weeds, in order to ensure that fertilizing and harvesting was carried out successfully.

With the ban on imports and usage of Glyphosate, undergrowth and weeds have grown beyond any control making it dangerous to walk through the tea bushes in plantations due to the breeding of poisonous reptiles and other insects.

Japan being a major importer of quality Ceylon Tea for many decades accepted the residue levels of Glyphosate at reasonable levels. Japan being a very health conscious country has placed the acceptable residue level of Glyphosate in made tea at 0.15ppm. These have been arrived at after extensive research and testing by the Japanese health authorities.

In the absence of Glyphosate weedicide, the tea plantations are using another weedicide, namely MCPA - 2-Methyl-4-Chloro Phenoxyacetic Acid.

This weedicide is far more harmful to human health with the Japanese authorities having placed the acceptable residue levels of MCPA in made black tea at 0.01ppm.

Most of the teas produced in Sri Lanka, except for a few plantations, produce teas which have MCPA residue levels far in excess of the limits placed by Japan.

In fact, majority of our teas produced do not meet the maximum residue levels (MRL) for MCPA by European countries which is at 0.05ppm.

The short sighted decision made by the authorities in banning Glyphosate weedicide in Sri Lanka will result in the loss of another major market for Ceylon Tea in Japan.

Tea exporters who have invested large sums of funds in the promotion of Ceylon Tea in Japan, are now helpless and cannot export the tea, unless authorities take immediate and long-term solutions to this national crisis.

The Tea Industry in Sri Lanka employs over a 1 million citizens directly and indirectly.

The loss of a premiere market like Japan will not only affect the tea producers and exporters but also have far reaching repercussions on support industries such as Packaging and printing industry, sea freight and air freight (transportation industry) and many others.

The authorities must also understand the long term effects, Sri Lanka will face in such a situation and if immediate action is not taken, the country will lose another opportunity of gaining much needed foreign exchange to the country.

Nipuna Illangarathne, Managing Director of Virco International (Pvt) Ltd which has been in the operation since 2015 was recently awarded as the young entrepreneur of the year 2017 North Western Province at the recently concluded awards ceremony held at the BMICH and organized by the Federation of Chambers of the Commerce and Industry of Sri Lanka.

He and his partner Dinesh Kodithuwakku studied Electrical Engineering from university of Moratuwa Sri Lanka for the first degree and continued studies until to the master degree from the field of Robotics and Automation.

After gathering working experience as research and innovation engineer he started Virco as a Co-founder and act as the Managing Director and Co-founders of Virco International. Both of them together started manufacturing Virgin Coconut Oil and their theme of the business is “let the food be medicine and medicine be the food” which is the motto of the father of the Medicine Hippocrates as well.

Virco International does the packaging of quality food for other local exporters at their modern equipped factory at Mawathagama and they are also engaged in 100% export business. Australia, Japan, France, Korea and Slovakia are the main countries they are engaged in the export.

They are engaged in the business according to the international standards of ISO 22000, HACCP and APCC. Managing Director, Nipuna Illangarathne firmly believes this award is a collective victory of their employees.

The Pathfinder Foundation in collaboration with the Institute of South Asian Studies (ISAS) of the National University of Singapore is planning to organise a one-day joint symposium on “The Belt and Road Initiative: the Politics, Potentials and Partnerships”.

The symposium will be held in Singapore on January 29, 2018. This symposium will feature speakers and panelists from China, Singapore and Sri Lanka.

The keynote address will be delivered by Sim Ann, Singapore Senior Minister of State, Ministry of Trade and Industry; and Ministry of Culture, community and youth.

A delegation led by Ambassador-at-Large, Gopinath Pillai, Chairman Institute of South Asian Studies (ISAS), National University of Singapore, consisting of Hernikah Singh, Senior Associate Director and Sithara Doriasamy, Head Communications and Strategic Events, met with Pathfinder Foundation Founder, Milinda Moragoda, Chairman Amb. Bernard Goonetilleke, and Senior Fellow Lalith Weeratunga; and Director of the Pathfinder Foundation's Centre for Indo-Lanka Initiatives (CILI) and Centre for the Law of the Sea, Admiral, Jayanath Colombage and the Executive Director of the Pathfinder Foundation and Director of its China-Sri Lanka Cooperation Studies Centre (CSLCSC), Luxman Siriwardena, to discuss the logistical and organisational details of the joint Singapore Symposium.

Ceylinco Insurance PLC was chosen as Sri Lanka’s best insurer by not only one but several key business ranking indices recently.

Ceylinco Insurance was chosen amongst Sri Lanka’s Best 20 Brands and is incidentally the only insurance company selected amongst the elite list of brands by Interbrands, the world’s leading brand listing agency.

Having pioneered brand valuation in 1988, Interbrand has a deep understanding of the impact that a strong brand has on key stakeholder groups to influence the growth of a business, namely, both current and prospective customers, employees and investors.

Once again, for the fifth consecutive year, Ceylinco Insurance earned the honour of being the only insurance company amongst the ‘Business Today Top 30’ companies in Sri Lanka. As announced in its edition for 2016/17, Ceylinco Insurance moved up the corporate ladder to the 12th position, achieving a truly unique feat.

According to Business Today, financial information reviewed for the selection process covered several aspects which included revenue, share turnover, profit after tax, growth in turnover, growth in profit, return on equity, growth in earnings per share, market capitalization, value of shares transacted and value additions.

Ceylinco Insurance reiterated its position as the highest ranked insurance company in Sri Lanka for the 23rd consecutive year.

The LMD 100 listing announced in December 2017 placed Ceylinco Insurance in the 25th position among all listed companies in the island. Since the inception of the LMD ranking, Ceylinco Insurance has maintained its supremacy by occupying the top position among insurance companies.

Ajith Gunawardena, Managing Director / CEO of Ceylinco Insurance PLC said, “We feel a humble pride as we have been recognized not only on one occasion but many.

We extend our deep gratitude to all our customers, shareholders, staff, and other stakeholders for the trust and confidence placed in us. The company understands the aspirations of its stakeholders and will ensure its future growth strategy fulfills these aspirations while enhancing quality of life for our customers”.

R Renganathan, Managing Director of Ceylinco Life, commenting on the achievements said that these results reflect the commitment displayed by the employees and that the company will continue to provide protection to the people of Sri Lanka.

Sri Lanka’s premier fair for footwear and leather lndustries will be held during February 2-4, 2018 at the Sirimavo Bandaranaika Memorial Exhibition Centre of the BMICH. This will be the 10th edition of the fair which commenced in 2007.

The Footwear & Leather Fair 2018 is organised by the Sri Lanka Footwear & Leather Products Manufacturers Association in collaboration with the Ministry of Industry & Commerce, Industrial Development Board and the Sri Lanka Export Development Board.

The main objective of organizing this fair was to promote Sri Lankan footwear and leather products locally and internationally and the organisers of the view that they are gradually reaching this objective.

Apart from the local producers foreign suppliers of raw material, machinery, components and accessories will be participating at this fair.

Already the Confederation of Indian Footwear Industries (CIFI) and Indian Footwear Components Manufacturers Association (IFCOMA) has confirmed their participation.

This year's fair will have about 230 stalls displaying and selling latest designs of export quality Footwear and Leather products at very attractive prices.

A design award ceremony has been organized to encourage the up coming designers and best stall competition to encourage the exhibitors to design their stalls attractively. The fair will be held from 10 a.m to 9 p.m. daily during February 2-4, 2018.

Dialog Axiata PLC, Sri Lanka’s premier connectivity provider, launched an Artificial Intelligence (AI) powered personal voice service skill to support its expansive product service framework.

For the first time in Sri Lanka, this service simplifies human interaction with voice and natural language by using Natural Language Processing (NLP), an emerging technology used by Amazon’s artificial intelligence. The service is set to revolutionize selfcare experience with the addition of a futuristic yet human centered technology platform. The skill will assist users with tasks such as checking bill related information and DTV channel related information.

Along with the ability to assist users with numerous Dialog selfcare related tasks, the AI based skill is easily accessible by any customer with Amazon Alexa enabled personal voice assistant devices such as; Amazon Echo, Echo dot, Amazon Echo Prime, Echo show.

This service is currently available to Dialog mobile users and supports the English Language.

The Dialog AI based personal voice service will expand to support Sinhala/Tamil languages along with other functionalities on the award-winning Dialog self-care app by the first half of 2018.

Users of Amazon Echo devices can experience this service by enabling the Dialog skill on Amazon’s Alexa app or on Alexa’s web interface by simply saying, “Alexa, open Dialog”.

Speaking at the launch, Sandra De Soyza, Group Chief Customer Officer, Dialog Axiata PLC said, “At Dialog, we constantly look for ways to enhance customer experience with every interaction, and the introduction of this revolutionary technology is a natural step in the direction of convenience and seamless operations for consumers and agents alike. With the use of Artificial Intelligence and Machine Learning we will leverage the very latest in technology when serving over 12 million Sri Lankans across the country.”

The winner of six Global Mobile Awards, Dialog has the distinction of being voted by Sri Lankan Consumers as the Telecom Service Provider of the Year for six years in succession at the SLIM-Nielsen People's Choice Awards.

Dialog was also voted by Sri Lankan consumers as the Internet Service Provider of the Year, and has topped Sri Lanka’s Corporate Accountability rankings for the past six years in succession and is an ISO 9001 certified company.

The Company has received numerous local and international awards including the National Quality Award and Sri Lanka Business Excellence Award.

The Shangri-La Hotel has purchased 400 copies of the book ‘Condominium Living the Emerging Trend’.

Clarence Tan, Project Director, Shangri-La said the book is extremely helpful to condominium owners, property developers and the management of corporations and all others concerned in the private and State sector.

He further said that the book contains good practical information and guidelines to all academics, professional and prospective condo-apartment dwellers who are interested to know their responsibilities when they come into occupation at condominium apartments.

The book could be considered as a guideline for the prospective owners of the Shangri-La Apartments. Powers of management corporations and obligations of management corporations are also well mentioned in the book. The publication it is timely as the skyline in Colombo is changing, with higher rise dwelling in the pipelines.

Condominium apartment developers need to purchase this book “Condominium Living the Emerging Trend” and make it available to the prospective buyers as a token of compliment which will be the best to ensure proper management of the condominium by the owners through their management corporation.

.Wijeweera also said in the near future the overwhelming majority of population in Sri Lanka will migrate to the urban surroundings. High rise living or Condominium living would be the answer to the scarcity of the land in the urban sector.

Wijeweera also said in his book he has detailed out as to how owners should manage the affairs of a condominium complex by themselves.

Formation of a condominium management corporation has been detailed out in this book. Responsibilities of the management corporations are also clearly stated while the powers and obligation on the management corporation are also mentioned in detail, he said.

Wijeweera also mentioned that this book also outline obligations and the responsibility of the owners. What condominium owners shall do and shall not do when living in a condominium apartment is very well elaborated.