business Sri Lanka

Fitch Ratings has assigned DFCC Bank PLC’s (DFCC; AA- (lka)/Stable) proposed Sri Lanka rupee-denominated senior debentures an expected National Long-Term Rating of ‘AA-(lka)(EXP)’.

The notes, which will total Rs10 billion, will mature in five, seven and 10 years and carry fixed coupons. The bank plans to use the proceeds to support its loan expansion and to better manage its assets and liability mismatches. The debentures are to be listed on the Colombo Stock Exchange.

The final rating is subject to the receipt of final documentation conforming to information already received.

DFCC’s National Long-Term Rating captures its developing commercial-banking franchise, relatively weak asset quality and earnings, and our expectation that DFCC would maintain higher capital buffers than similarly rated peers.

The bank’s senior debt ratings will move in tandem with its National Long-Term Rating. An inability to replenish its capital buffers to a level that is commensurate with its risk profile could pressure DFCC’s National Long-Term Rating. Fitch sees limited upside for the bank’s ratings due to its weak franchise.

The concept of digital is not deeply embraced by senior board members at some large corporations in Sri Lanka and lack of digital confidence at board levels hurts the growth of organizations to a great extent, leaving companies vulnerable to emerging threats.

Many senior board members at some large corporations still tend to focus more on traditional technological aspects rather than invest money in innovation and digital transformation.

Majority of Sri Lankan board members are senior, quite traditional individuals with a long career. Despite the fact that some large corporations started to embrace digital technologies many years ago, some senior members at board levels are still hesitant to adapt to digital age, Co-Founder and Chief Executive Officer of IronOne Technologies and BoardPAC, Lakmini Wijesundera told at a seminar organized by Sri Lanka Institute of Directors (SLID) in Colombo.

She stressed that board members need to better understand about today’s digital disruptions and the role of technology in enhancing long-term business growth.

“Technology is expensive, but it is important that you endorse and use digital tools at your organization to match the current business landscape,” she said.

Speaking at the event, Sri Lanka Institute of Directors (SLID) Chairman Preethi Jayawardena said, “Digital age is truly upon us. Big data, Could Computing, e-commerce, smart phone penetration and the explosion of social media means that the leaders of organizations must ensure, their organizations remain relevant, resilient and sustainable and in the best position to deliver their mission to achieve their long-term goals.”

He said the board has a role to play to recognize the importance of new digital era and its inclusion in the organization’s framework. Digital literacy is required to consider the impact that emerging technologies such as Artificial Intelligence (AI) data analytics will have on respective industries.

“Boards can’t allow their companies to sit down in a defenseless or vulnerable position waiting for the next chaos to happen; they should lead the company to digital age for greater change and should not to be feared of it,” Jayawardena noted.

The Department of Census and Statistics (DCS) in a survey conducted reveals that in the first half of 2018, at least one computer is available in 22.9% of households in the country.

That is more than one out of every five households owns either a desktop or a laptop computer. This percentage is 39.5% in Urban Sector. The Rural and Estate Sectors show 20.3% and 4.9% respectively. The highest availability is in the Western province (33.4%) while the lowest availability is reported from the Uva province (10.7%).

Overall Computer Literacy reported in first half of 2018 for Sri Lanka is 27.5%. The survey results show a decrease of 0.8 percentage points from 2017 (1st half) to 2018 (1st half). The Urban sector shows the highest computer literacy rate (38.4%) among residential sectors. Computer literacy rate for Rural and Estate sectors are 25.9% and 11.1% respectively. Among the provinces the highest level of computer literacy is reported from the Western province (36.1%) while the lowest percentage is reported from the Eastern province. The computer literacy rate among districts show variations ranging from 8.6% (Kilinochchi) to 42.6% (Colombo) and shows the still prevailing digital divide (Table 2.1).

Overall Computer Literacy reported in 1st half of 2018 for Sri Lanka is 27.5%. The survey results show a decrease of 0.8 percentage points from 2017 (1st half) to 2018 (1st half).

Computer literacy among the employed population who are aware of computer in Sri Lanka is around 61.7% in first half of 2018 and the positions such as managers, senior officials and legislators (67.6%), professionals (85.8%), technical and associate professionals (83.3%) and clerks and clerical support workers (89.4%) have higher computer literacy rates.

The Ministry of Development Strategies and International Trade along with the Export Development Board (EDB) will implement seven pilot projects for the development of agriculture for exports this month.

The project covers agricultural bases such as flowers, cinnamon leaf oil, coir, vanilla, ornamental fish, baby bitter gourd (Thumba Karawila) for exporting.

“We have to uncover new products for exporting to diversify our exports,” said Deputy Minister of Development Strategies and International Trade Nalin Bandara at the 17th Exporters’ Forum held at the EDB Auditorium yesterday. He further said that they have to identify new industries and develop them to create new exporters. “We are mainly focusing on exporting value added products and we are on the process of identifying new exporters while supporting the existing ones.”

The 2000 Exporters Development Program is also progressing well and is mainly focusing on developing SMEs (Small and Medium sized Enterprises). These enterprises are guided to develop products for exports while helping them to commence direct exports after getting the necessary experience. “We have already aided 20+ direct exports which values to Rs 4 million,” said Chairperson and Chief Executive, EDB, Indira Malwatte. Development programs are also carried out to increase the productivity. Further the National Export Strategy is also continuing.

The forum provided a platform for the exporters representing a cross-section of industries to interact with relevant Government institutions and seek responses to their trade issues. A number of representatives from governmental and nongovernmental organizations participated in the forum where 19 issues were addressed. Some issues related to Colombo Dockyard PLC, Lanka Organic (Pvt) Ltd, Aqua Packaging, Noritake Lanka Porcelain, Global Rubber Industries (Pvt) Ltd, Lanka Special Steels Ltd and Anverally and Sons were solved outside the forum. This forum is held once in every two months.

The Minister said that all the necessary support will be given for the exporters and believe that these issues would not be repeated at the next forum and hope that a new set of issues would be there to solve. He also appreciated the presence of the representatives from these organizations to make this event a success.

Dr Parakrama Dissanayake , Secretary to the Ministry of Ports & Shipping and Southern Development presenting the final draft of the National Policy for Maritime and Logistics Sectors to Minister of Ports & Shipping and Southern Development Sagala Ratnayaka. Chairman of the Sri Lanka Ports Authority Kavan Ratnayaka; Managing Director of the Sri Lanka Ports Authority Captain Athula Hewawitharana; A W Seneviratne, Director General of Merchant Shipping; H D.A.S. Premachandra, Chief Executive Officer LAUGFS Terminals Ltd; K N Kumari Somarathne, Additional Secretary (Development) of the Ministry of Ports & Shipping and Southern Development; H. M. L. S. Herath, Additional Secretary (Admin and Finance) of the Ministry of Ports & Shipping and Southern Development; Shehara Jayawardana, Group Joint Managing Director of McLarens Group; Saliya Senanayake, Chairman, CASS;  Romesh David, CEO of SAJT were also present.

The final draft of the National Policy for Maritime and Logistics Sectors presented to Minister of Ports and Shipping and Southern Development Sagala Ratnayaka by Ministry Secretary Dr Parakrama Dissanayake in an event held at the Ministry yesterday.

The policy was drafted by the committee comprised with leading experts on maritime affairs chaired by Dr Dissanayake, to better understand the importance of a national policy for the alignment of maritime and logistics sectors to reap the benefits towards the development of Sri Lanka. Around 80 stakeholders participated during the formulation of the policy.

While valuing and appreciating the efforts by all parties involved in drafting this comprehensive and comparative policy on maritime, a lifeline of the country, the Honorable Minister requested for feedbacks from the interested parties and the general public. He has ensured the promulgation of this national policy as quickly as possible. Minister Ratnayaka has acknowledged the governing supports of his predecessor, former Minister of Ports and Shipping Mahinda Samarasinghe, on this national initiative.

Meanwhile, in his brief introduction during the event, Dr Dissanayake has clarified the importance of this historic national policy and how it is going to elevate the developments of the maritime affairs in the country. Around 150 pages document comprehensively detailed the strategies, suggested actions and coordinating role of each party while addressing the urgent requirements of the maritime and logistics sectors in Sri Lanka. It has addressed the several areas of the subject including, Ports and Related Infrastructure; Development of Maritime Related Services; Ships, Ship Owning, Ship and Crew Management, Shipping & NVOCC Agency, Coastal Shipping ; Development of Logistics and Intermodal Infrastructure, Harmonization of Regulatory Framework ; Maritime Safety, Security, Marine Pollution Prevention, Maritime Training; Promotion of Small & Medium Scale Enterprises in Maritime and Logistics; Restrictive Practices in Maritime and Logistics.

One of the aims of this national policy is to “encourage sustainable port development to cater to long-term forecasted growth in volumes of imports and exports and transshipment trades by sea, with a competitive and efficient port industry capable of meeting the needs of importers and exporters in a cost-effective and timely manner, thus contributing to long-term economic growth and prosperity of Sri Lanka,” Dr Dissanayake said by quoting the final draft of the national policy. The vision of this national policy reads as to “become a leading Global Maritime and Logistics Hub while maintaining a premier status in regional Maritime and Logistics by affording and facilitating the best technology and convenience to all stakeholders thus facilitating the economic growth in Sri Lanka.”

Chairman of the Sri Lanka Ports Authority Kavan Ratnayaka, Managing Director of the Sri Lanka Ports Authority Captain Athula Hewawitharana, Executive Director of Sri Lanka Ports Authority Dr Emerick Fernando, Additional Managing Director of Sri Lanka Ports Authority D. Upali De Zoysa, Directors of Sri Lanka Ports Authority, several stakeholders and experts of the subject were present at the event.

The Bank of Ceylon’s ‘Aaradhana’ Sri Lankan classical music concert was recently staged at the BMICH Colombo.

The event took place on January 29, with the patronage of the Bank’s CEO and General Manager Senarath Bandara. This was the third live stage performance presented and was made into a memorable spectacular evening with maestro Prof. Sanath Nandasiri, Malkanthi Nandasiri, Keerthi Pasqual, Nirosha Virajini and Kasun Kalhara performing live for the audience including customers of the Bank of Ceylon and well wishers of the Bank adding colour.

The event turned out to be a special occasion for music maestro Prof. Sanath Nandasiri as he was felicitated by bank’s CEO and General Manager Senarath Bandara, CFO and Deputy General Manager Corporate and Offshore Russell Fonseka and Assistant General Manager Marketing Priyanthi Wijesekara with a special token of recognition for his long-term contribution for the Sri Lankan Classical music. A special occasion was celebrated during the event as it was the birthday of the maestro Keerthi Pasqual.

A classical music program aired by Sri Lanka Broadcasting Corporation (SLBC) that was dedicated to Sri Lankan Classics for over forty years was rejuvenated and brought to a new level by upgrading the concert as a live-stage performance of renowned Sri Lankan artists. Dedicated to Sri Lankan classical music, this program was started with the patronage of the Bank of Ceylon and was produced by the SLBC. Now it has been transformed into a television program with the partnership of Sri Lanka Rupavahini Corporation (SLRC) engaging classical music enthusiasts across the country.

The very first program to take to the stage live was the one staged at the Bank of Ceylon Auditorium with the participation of maestros of music Victor Rathnayake, Dayarathna Ranathunga, Sunil Edirisinghe and Neela Wickramasinghe. The second live performance took place at ‘Nelum Pokuna’ auditorium in August 2018 in line with the Bank’s 79th Anniversary celebrations. It was performed by maestro T.M. Jayarathna, Somathilake Jayamaha, Amarasiri Peiris and Deepika Priyadarshani Peiris. It was evident from the feedback received by the organizers that these programs were warmly received by classical music enthusiasts opening a new platform for true Sri Lankan classics to re-emerge and be restored its proper place. The first episode of the latest live program will be aired in February and will continue to be telecast along with the other episodes consequently on Rupavahini from time to time.

Regional Print Excellence Awards 2019, the highly anticipated event in the biennial calendar of the Sri Lanka Association of Printers, (SLAP) the Regional Print Excellence Awards 2019, will be held for the fourth time, on Sunday, March 3, 2019 at the BMICH Main Conference Hall.

The event focuses on recognizing the printing excellence at regional level excluding the Colombo district and identifying the contribution of regional printers toward improving the standard of the industry by way of quality and creativity.

SLAP believes that enhancing product quality is the only way to take the industry towards a sustainable future. The Regional Print Awards will not only recognize printing talent, but it would also empower the printers and elevate the standards of the Sri Lankan Printing Industry to compete successfully in the Global market. The competition covers a wide range of print products, while entries would be judged in two categories based on the size of the printers, as small scale and large scale. In 2017, the large scale category was won by Paramount Printers, Kelaniya and the small scale category was won by “Thotupola,” of Yakkala. Applications could be downloaded from the official website of the Sri Lanka Association of Printers (www.slap.lk). Entries will close on February 8, 2019.

All Printers based outside the Colombo District who are not previous winners of Collate or Sri Lanka Print Awards, are eligible to participate.

From the year 2017 onwards, the ‘Master Printer’ of the Regional Print Excellence Awards shall not be eligible to participate in the competition, to provide opportunities for new comers to win the coveted award.

The main sponsor of this year’s event is JDC Printing Technologies. The Platinum sponsors are Alliance Agencies Ltd., Colorcroma (Pvt) Ltd ., and Ranpath Paper.

The fourth annual Lanka Property Show 2019 is organized by LankaPropertyWeb, will be held on February 9 and 10 at the Kingsbury Hotel’s Balmoral Hall.

The event is Sri Lanka’s largest property show, attracting the country’s most renowned property developers, real estate agents and banks coming together all under one roof to offer consumers a chance to view, express interest in, and eventually have an opportunity to invest in Sri Lanka’s fast growing real-estate and property sector.

This year in addition to the developers showcasing their latest and finest projects, the event will also focus on providing assistance to buyers and sellers with their property needs. LankaPropertyWeb (LPW) in partnership with Nations Trust Bank (NTB), will host a home loans day, where buyers can either obtain to financial health checkup or get a free loan pre-approval for their mortgage. Lanka Property Web Managing Director Daham Gunaratna said “following two highly successful property shows last year, we aim to make this year’s event even larger and more successful with over 30 exhibitors participating at the show and over 50 projects showcased”.This would be the ideal platform for anyone looking to buy property to find great deals on sale prices and save on the 15% VAT that will be imposed on apartment sales from April 1.“ Our previous shows have had tremendous success with many properties sold during the event or soon after where most of the developers were happy.” The Property Show thereby aims to bring various projects together under one roof that will benefit both buyers and sellers alike.

This year’s event will also feature seminars and discussions about property investments, which was a major success with the attendees at the previous events. The show will comprise of panel discussions connected to the market outlook of 2019 and presentations from the developers related to their products and services to give the participants great knowledge and valuable insights. LankaPropertyWeb.com was set up 12 years ago through its focused vision on offering property buyers and sellers the best service for finding and selling property.

The Sri Lanka Association of Software and Services Companies (SLASSCOM) hosts the first-ever Robotic Process Automation (RPA) Conference and Hackathon Awards on 13th February 2019 at the Galle Face Hotel. Organized by the SLASSCOM Business Process Management (BPM) Forum, this event has already seen many companies submitting entries for the virtual hackathon.

The IT/BPM industry is recognized as a thrust industry within the National Export Strategy (NES) as is promoted globally as the “Island of Ingenuity” for world-class knowledge solutions. The industry goal is to reach US$ 5 billion by 2022, powered by 200,000 skilled jobs in the industry, along with a thriving ecosystem for startup companies. The RPA Hackathon & Conference will comprise of two main segments. The Virtual RPA Hackathon allows you to submit your case study describing an application of RPA and resulting business value delivered to the customer. The RPA Conference is a half-day program to increase awareness about RPA with examples of implementation, details on service providers, followed by a panel discussion. The best case studies from the RPA Virtual Hackathon will be rewarded and recognized during the conference as well.

RPA addresses services or activities in your organization which are repetitive processes. These are often time consuming and monotonous, whichleads to errors during processing. RPA aims to streamline these processes using technology, with minimum human intervention.

This results in significant time and cost savings for the organization. These forms of efficiency gains are called process automation.

There are two categories of tools used to achieve process automation, Robotic Process Automation (RPA) and Intelligence Automation (IA). Many companies see this as a key technology to optimize processing costs for transactions and services. RPA uses software robots or agents to perform such routine business processes bymimicking the way that people interactwith applications, through a user interface such as clicking buttons, typing login credentials, or reading from a word or PDF while following simple rules tomake decisions. An example would be retrieving information from one system and transferring this to another system without manual intervention.

IA is a more advanced approach by automating non-routine tasks such as those involving intuition, judgment, creativity,persuasion or problem solving. This aims to create a substitute for human thinking capabilities. Although there have been some breakthroughs in this field, it’s still at a primitive stage to be adopted universally.

The event is sponsored by UiPath the Platinum Sponsor and Gold sponsors include WNS Global Services, RR Donnelley, Novigo Solutions and the HSBC Global Service Centre.

The economic diplomacy activities carried out by the Sri Lankan missions abroad and the foreign ministry at large is commendable said President of National Chamber of Commerce of Sri Lanka, (NCCSL) Asela de Livera at the 60th Annual General Meeting in Colombo.

He also said that initial steps taken by the authorities to prepare the National Export Strategy (NES) for Sri Lanka towards “Sri Lanka – An Export Hub driven by Innovation and Investment” is a step taken in the right direction and it should be revived at regular intervals.

“I believe that there should be a moderation in imports. More stringent measures are needed with regard to unessential imports that are causing this deficit in spite of the growth in exports. Maybe at least till the situation improves”.

Main driving force of Sri Lanka’s economy is the SME sector and 75% of the enterprises are SME’s and they provide over 40% of the employment in the country in diversified sectors ensuring growth.

“It is noted that unfortunately many SMEs do not use latest technology and have limited access to finance due to collaterals not being available. Further, SMEs are disconnected from their markets especially in the case of exports.”

Cross border production based on fragmentation theory is becoming popular in the SME’s spectrum. Due to technological advances various stages of manufacture could take place in different countries.

“As a result semi-processed goods may cross national borders many a time for these transactions, it therefore is of utmost importance to have increased efficiency and to reduce cost of cross border services”. “In order to ensure SMEs are well connected with global markets, the authorities have to introduce and maintain SME friendly policies. These policies focus on encouraging innovation, increasing competitiveness, providing cheaper access to inputs, lessening red tape and reduction of tariff and nontariff barriers through preferential Trade Agreements.”

Regional and bilateral trade agreements need to pave the way for SMEs to be meaningfully integrated with global value chains. Trade sections operating in our missions should find out information on how to and whom to contact to market our exports

I am proud to note that the National Chamber of Commerce works hand in hand with Provincial and District Chambers to address this situation.

“I think this is where it’s necessary for the larger established companies in this country to give a hand to the SME’s. They should encourage the local SME’s by handing over sub contract work to our local entrepreneurs or by purchasing semi-finished items.”

“ These larger companies should not only purchase from SME’s but also provide them the knowhow on how to maintain quality in production methods. I am sure if given this chance our own SME’s can remodel their production methods and quality to international standards.”

As per our statistics the shortages of skilled labour across all industries continue to be a hindrance in manufacturing and service industries in Sri Lanka. It is vital for Sri Lanka to have policies to increase skilled labour availability directed towards export related industries.There should be change in the attitude of young people joining industry for the first time to get into semi-skilled or hands on jobs. Social acceptance for these jobs is at a minimum level.

The government, private sector and media at large have a great national responsibility to make this transformation to happen. Commenting on agriculture he said that food and security in crops is very important to our economy. “We need to value add to our agricultural products and find markets for newly developed products”.

For many years weather had failed us and this should not be an issue even now if we encourage new methods to agriculture. Dubai grows its own food crops and even exports them to other gulf countries.

These are desert countries.Green houses and tunnel agriculture can be adopted to save water, and control the environment.

The Board of Directors of Colombo City Holdings PLC by resolution passed on January 28, 2019 decided to acquire the entirety of the shares held by Ambeon Capital PLC and Taprobane Investments (Private) Limited in Lexinton Holdings (Private) Limited (LEXH).

This decision was made by the Board of Directors in accordance with the Group’s restructuring proposal to restructure the ownership and operational structures of its businesses with a view to streamlining the structure of the Ambeon Group and thereby maximizing value and returns to the shareholders.

Ambeon Capital PLC held 49,616,300 ordinary shares and in LEXH amounting to 72% of the issued shares of LEXH and Taprobane Investments (Private) Limited held 19,295,228 ordinary shares in LEXH amounting to 28% of the issued shares of LEXH. The total consideration paid by the Company to Ambeon Capital PLC and Taprobane Investments (Private) Limited for the transfer of these shares is Rs 414,833,710. The said transaction was completed on January 28,2019.

LKI’s Executive Director, Dr.GaneshanWignaraja recently stressed the need for having a national debate on how to move on from the political crisis to an economic policy agenda for the next few years.

Speaking on the theme, ‘Trade Liberalisation in Sri Lanka: Then and Now,’ at the Sri Lanka Economic Association (SLEA) 33rd Anniversary Annual Sessions, he said, the country is plagued by rising income inequality, slow growth, and a simmering debt crisis. “These challenges may continue for some time as several global and internal risks are clouding the economic horizon in Sri Lanka.” To page v

The Sri Lanka Ports Authority (SLPA) will sign an agreement with Colombo Dockyard PLC to build two pilot boats for Colombo Port enabling it to handle a greater volume of activities with more efficiency.

A pilot boat is a type of boat used to transport maritime pilots between land and the inbound or outbound ships that they are piloting. The Colombo Port currently has four pilot boats and the fleet was last upgraded in 2007.

“Colombo Port has become busier over the years and its infrastructure needs to be developed allowing it become more competitive on a global scale.

The two new pilot boats will be faster than other boats in the fleet and will be better equipped to handle modern ships that frequently visit the country’s busiest port. We, therefore, think it will be a much-needed investment for the future,” Ports, Shipping and Southern Development Minister Sagala Ratnayaka said.

The SLPA will sign an agreement with Colombo Dockyard PLC to build the two pilot boats and deliver them in 10 months. “The contractor was selected through a Cabinet approved procurement process. The SLPA will invest USD 3.12 million in new pilot boards,” the Minister explained.

The Minister expressed confidence that the Colombo Port would use the two pilot boats from December 01. “Colombo Port is the lifeline of the country’s economy. It is important to make the right type of investments at the right time to ensure that it operates with greater efficiency,” Ratnayaka added.

Regional and bilateral trade agreements need to pave the way for SMEs to be meaningfully integrated with global value chains, Asela De Livera, newly appointed President of the National Chamber of Commerce of Sri Lanka (NCCSL) told the 60th AGM of the National Chamber of Commerce held on Tuesday in Colombo.

To ensure SMEs are well connected with global markets, the authorities have to introduce and maintain SME friendly policies, these policies should focus on encouraging innovation, increasing competitiveness, providing cheaper access to inputs, lessening red tape and reducing tariff and nontariff barriers through preferential trade agreements etc.

The Chambers, together with government development agencies and financial institutions must have a common development strategy for micro, small and medium entrepreneurs, he said.

“We should continue to encourage entrepreneurship in this country,” he insisted.

The NCCSL boss also said the larger established companies in this country should encourage the local SME’s by handing over sub contract work to local entrepreneurs or by purchasing semi-finished items. These larger companies should not only purchase from SME’s but also provide them the knowhow on how to maintain quality in production methods. “I am sure if given this chance our own SME’s can remodel their production methods and quality to international standards,” he said.

De Livera said the shortages of skilled labour across all industries continued to be a hindrance in manufacturing and services in Sri Lanka. It is essential that the government provides policies addressing the much-required skilled workforce for the industries. It is vital for Sri Lanka to have policies to increase skilled labour availability directed towards export related industries. To develop investment the government should encourage a favourable and steady exchange rate, a skilled labour force, provide physical infrastructure such as availability of electrical power and good logistics, uphold, strong macroeconomic conditions and maintain political stability. These are considered some of the key decision making factors for FDIs, De Livera said.

He said food and security in crops is very important to Sri Lanka. The country needs to value add to its agricultural products and find markets for newly developed products.

“Unfortunately 50 to 60% of the production is lost due to unavailability of proper storage, cold rooms and proper transport facilities. Even now there will be a bumper rice harvest the next few months. Are we ready with storage facilities? These can help the farmers to sell directly without going through middlemen,” he said. De Livera said the National chamber was seriously considering organizing an agricultural exhibition every year to promote agriculture, find domestic and foreign markets, and educate farmers in modern methods of agriculture.

The 60th AGM of the National Chamber of Commerce was held on January 19 at the Kingsbury Hotel. Former President of the Chamber , Speaker Karu Jayasuriya was the Chief Guest while State Minister for Finance and Media, Eran Wickramaratne was Guest of Honour.

Outgoing President, Sujeewe Samaraweera in his address thanked his fellow Chamber members for their support during his tenure and urged them to carry on the good work , whilst supporting President Elect Asela De Livera.

A highlight of the proceedings was the presentation of the portrait gallery and tenures of Past Presidents and here the National Chamber has much to be proud of as they are the only Chamber in Sri Lanka to have had a lady President, namely Nirmali Samaratunga.

Another feature was the presentation of the Youth Forum of the National Chamber on their views and directions for the way forward for Sri Lanka. A welcome addition indeed as they will soon be the voice of Sri Lankan business.Pictures by Chaminda Niroshana

In March 2018, funder and renowned business leader, Ajit Gunewardene saw an opportunity to expand his business portfolio at Bluestone Capital, a private equity and venture capital company.

Under Bluestone 1, a subsidiary of Bluestone Capital, the company acquired Melsta Regal Finance, a finance company that was owned by Melstacorp PLC, and renamed it Fintrex Finance.

Fintrex Finance is now 100% owned by Bluestone 1 under a Board comprising industry stalwarts Ajit Gunewardene (founder/Chairman), Ronnie Peiris (non-independent/non-executive director), Shantanu Nagpal ((non-independent/non-executive director), Mahendra Galgamuwa (independent/non-executive director), Shivan Coorey, (independent/non-executive director), Keith Bernard, (independent/non-executive director), and Shivanthi Atukorale, (independent/non-executive director).

At the rebranding of Fintrex Finance in August 2018, Gunewardene he talks about the systems, governance and processes that will drive the success of Fintrex Finance.

Q: What made you invest in this industry and company?

A: Sri Lanka has a growing economy that has huge opportunities for entrepreneurship. Sri Lanka has a lot of young talent who are the next generation of entrepreneurs that needs mentoring. Sri Lanka also has a lot of untapped market segments that can be penetrated. For one to benefit from the other, there is a vital requirement- financial assistance. I believe that through Fintrex Finance, we can partner these entrepreneurs who belong mostly in the SME sector to tap into these entrepreneurial opportunities and build up a growing economy. As entrepreneurs ourselves, we have the knowledge, the expertise and the financial backing that could help these new markets to benefit.

Q: What is the status of our finance industry? Is it a viable landscape to invest in?

A: The finance industry in Sri Lanka is evolving and will continue to evolve and will play a huge part in driving the national economy. GDP growth means more opportunities which will eventually translate to the rise of entrepreneurship, the future engine of our economy. Entrepreneurs are making huge strides, tapping into market segments and penetrating business opportunities. This is where I see huge potential for the finance industry, to support these entrepreneurs to succeed.

Considering all of this, our aim at Fintrex Finance is to be more efficient and offer more mobility to the smaller economies at a SME level which is what I foresee to be the dominating factor in this growing economy.

Q: Having done so, how would you add value to this organization and industry?

A: I am conscious of the risks associated with this industry that is already suffering from bad publicity. To mitigate this bad reputation that the industry is now cloaked in, I, together with my Board, have put together three pillars that will guide us, hold us responsible and protect our stakeholders.

Firstly, through our experience in the corporate environment, we bring in governance of the highest level to this business. There will be transparency, effectiveness, efficiency, and accountability at all levels, and our 100 percent participation and responsiveness with no exceptions. Secondly, we have put in to place tools, systems and processes required to manage risks, technology to address efficacies, and the expertise to run this organization effectively. Thirdly, we have and will ensure the right people with the right competencies are in the right positions to drive this organization properly.

Our collective intent is not growth at any cost but growth on a solid and reliable foundation.

Q: Are there new opportunities in this market that Fintrex Finance would like to explore?

A: In the medium term we are looking at technology to drive and grow our business. Technology is nothing new to Sri Lanka and I believe that our customers and our organization is geared to accept technology as a game changer to improve operational efficiencies and service standards, and to offer customer conveniences.

Q: Ultimately, what will Fintrex is best known for?

A: We will create more entrepreneurs who are the future base of this economy. It is the small entrepreneur that will grow to be the future success of this nation.

With the right technology and a management team that has the ability to compound capital for investors, we will enable responsible lending and deploy best in class practices to scale our operations nationwide and a build a future for the next generation of leaders.

The newest addition of John Keells Holdings PLC, to the Plasticcycle initiative is the collaboration with the Department of National Zoological Gardens to place plastic collection bins at the Pinnawala Elephant Orphanage, Pinnawala Zoo, Dehiwala Zoo and Ridiyagama Safari Park which generate significant amounts of recyclable plastics.

In addition to spreading awareness on Refusing, Reducing & Reusing Plastics, this initiative provides avenues for responsible disposal of recyclable plastic waste by placing collection bins at key locations.

Plasticcycle has to date recycled over 15 Metric tons of Plastic waste and will continue its commitment to reducing plastic pollution in Sri Lanka. Popular attractions such as the Pinnawala Elephant Orphanage and the Dehiwala Zoo observe a high influx of local and foreign tourists which peak during weekends and the holiday season with most tourists consuming plastic water bottles while travelling.

Director General of the Department of National Zoological Gardens Dammika Malsinghe, said that “the placement of the Plasticcycle bins under the project would be greatly beneficial in managing plastic waste at these highly crowded sites”.

“Plasticcycle” is a Social Entrepreneurship Project launched in July 2017 by John Keells Holdings PLC (JKH), Sri Lanka’s largest listed conglomerate in the Colombo Stock Exchange operating over 70 companies in 7 diverse industry sectors.

Whilst being a full member of the World Economic Forum and a Member of the UN Global Compact, JKH drives its vision of “empowering the nation for tomorrow,” through the John Keells Foundation.

 Five Sri Lankan companies participated at the Paperworld 2019 Exhibition organized by Messe Frankfurt, which was held from January 26 to 29 in Frankfurt Germany.

Madhawee Printers, PrintXcel, Richard Trading, Srinko Enterprises and Digiscan Secure Print Solutions were the first Sri Lankan companies that exhibited their products at the event. These exhibits included paper covering, novel writing instruments, school supplies, water and duster colours and other office supplies.

Paperworld Frankfurt is the key event of the paper industry in the world and offers a source of innovative business ideas for wholesalers, retailers and booksellers. Paperworld offers the world’s widest range of products in commercial office supplies (visionary office) and private stationery sector (stationery trends).

Paperworld is the highlight of the year for the industry and a source of innovative business ideas for wholesalers and retailers, booksellers, the Internet and mail order sector and commercial consumers. In addition, the wide-ranging event and congress programme were held during the event.

Over 1,600 exhibitors made presentations during the four-day fair in 2019, while more than 35,000 trade visitors gained inspirations from the latest trends and products that were showcased at the event. The 10 visiting countries after Germany for the event were, United Kingdom, France, the USA, China, the Netherlands, Poland, Spain, Turkey and Greece.

There were trends in every segment from gift-wrapping paper to desk accessories and traditional office supplies. Paperworld showcased the entire spectrum of innovations in terms of paper, office supplies and stationery, whether they are technically oriented or simply intended for the home office.

Messe Frankfurt is the world’s largest trade fair, congress and event organizer with its own exhibition grounds. With more than 2,500 employees at 30 locations, the company generates annual sales of around US$ 715 million.

The wide range of services include renting exhibition grounds, trade fair construction and marketing, personnel and food services. With its headquarters in Frankfurt and Main, the company is owned by the City of Frankfurt (60%) and the State of Hesse (40%).

In recent years, retail customers have got their demands for a simple and seamless digital experience answered. From purchase to payments, there has been no short of innovation that makes the online retail consumers’ lives that much easier. With a click, they get to choose from almost an endless selection of items, and with another click, they complete the purchase by paying with a digital wallet, mobile payment app, or stored value card.

While business-to-consumer (B2C) payments channels dominate the market, there remains a lag in the development of business-to-business (B2B) payments solutions.

Just as consumers find online payments to be seamless and cost-effective, many businesses consider B2B digital payments expensive and complex. Concerns about hefty set-up costs and a tedious implementation process could be keeping companies from switching to digital payments. Some 90% of Asia B2B transaction volume is in cash, and about 40% of B2B transaction value is in cash and cheques .

But to pay less attention to the B2B payments segment would be a short-sighted approach. Estimates show retail e-commerce sales were US$2.3 trillion in 2017 while B2B online sales stood at US$7.7 trillion , excluding non-e-commerce B2B payments. And the number of non-cash transactions is expected to grow 28.8% annually in emerging Asia and 9.9% in mature Asia Pacific through 2021 . More importantly, electronic invoicing reduces administrative costs by 60-90% compared to paper invoicing processing, translating into savings of US$12.80 per invoice .

To capitalise on the potential of B2B digital payments, we need a concerted approach to bring about a new mindset towards regular corporate payments practice and a change to businesses’ reliance on paper invoicing. Governments, banks, financial services companies, and technology firms have a role to play in this digital shift.

ASEAN regulators are taking steps to boost electronic B2B payments. These measures include the enhancement of the e-payments infrastructure, waivers of transaction fees for domestic online transactions, and an increase in cheque processing fees. In the ASEAN agreement on e-commerce endorsed in August 2018, provisions encouraging member states to promote paperless trade, cross-border data flows, and electronic payments were laid out.

With the advent of digital solutions that have transformed retail payments, it makes good economic sense to leverage existing innovations to engineer a shift in the B2B payments space.

In the B2C payments area, many Asian governments are launching their direct debit networks to encourage digital adoption. Indonesia’s central bank unveiled a direct debit feature in their national clearing system in 2016, and is in discussions to launch additional payment options to provide digital alternatives. PayNet, owned by Bank Negara Malaysia, has also revamped its direct debt infrastructure to include business-friendly features to promote usage. These direct debit systems allow for the drawing down of payers’ accounts after a one-time authorisation. Businesses can leverage the existing instant payments infrastructure capabilities to do the same with their vendors or suppliers.

With the widespread use of consumer e-wallets, Fintechs and corporates are also exploring the viability of business e-wallets for payments within their supply chain ecosystem. A number of Proof of Concepts (POCs) are underway as some larger corporates are assessing the feasibility of setting up their proprietary wallets.

As instant payments among consumers through a proxy, such as mobile numbers, take shape, companies in industries such as telecommunications or insurance could be keen to improvise this capability for their B2B accounts. Higher payment transaction limits will also likely accelerate the pace at which businesses offer and accept B2B digital payments.

In Singapore, the Association of Banks in Singapore (ABS) initiated the PayNow Corporate Scheme, an extension of the peer-to-peer funds transfer service PayNow. The corporate initiative, launched in August 2018, is an end-to-end process that covers billing, payments, and collections.

To leverage the full potential of these technologies and simplify the business payments process, corporates need to accept and apply new technologies to their own payments systems and work together to synchronise the instant payments mechanism across their digital platforms. Partnerships between banks and technology firms are critical to develop digital payments solutions that are safe, secure, and convenient for businesses to use.

International financial institutions, such as Standard Chartered, have a key role to play in facilitating instantaneous cross-border digital transactions. The bank is actively working with its corporate clients to simplify B2B payments in their supply chain ecosystem. It is also leveraging the distributed ledger technology, which enables simultaneous access, validation, and record-updating across a cross-border network used by multiple parties, to support international B2B digital payments.

Re-imagining the future of B2B payments is critical to moving the innovation agenda forward. The advent of B2C digital payments is a step in the right direction, but it takes a collaborative effort between businesses and regulators to make digital B2B payments a reality. We can either be a part of the digital payments ecosystem or risk being left behind in this race towards the paperless ideal.

Author Ankur Kanwar is Regional Head - Cash Management Products, ASEAN and South Asia at Standard Chartered Bank

Fitch Ratings has affirmed Sri Lanka Telecom PLC’s (SLT) Long-Term Foreign-and Local-Currency Issuer Default Ratings (IDRs) at ‘B’. The Outlook is Stable. The agency has simultaneously withdrawn the ratings for commercial reasons.

The ratings were withdrawn with the following reason For Commercial Purposes. Key Rating Drivers Ratings Constrained by Sovereign: Prior to the withdrawal, SLT’s IDRs were constrained by Sri Lanka’s IDRs of ‘B’ as per Fitch’s Government-Related Entities Rating Criteria, as the state holds a majority stake in SLT directly and indirectly, and exercises significant influence on its operating and financial profile. SLT’s second-biggest shareholder, Malaysia’s Usaha Tegas Sdn Bhd at 44.9%, has no special provisions in its shareholder agreement to dilute the government’s significant influence over SLT.

Strong State Linkages: Fitch sees SLT’s status, ownership and control by the Sri Lankan sovereign as ‘Strong’. The state’s ownership gives it significant influence over operating and financial policies. We view the support record and expectations for the likelihood of state support for SLT as ‘Strong’, given its strategic importance in expanding the country’s fibre infrastructure. Historically, SLT has not required tangible financial support due to its healthy financial profile.

State’s Incentive to Support: Fitch sees the socio-political implications of a default by SLT as ‘Moderate’ due to the presence of three other privately owned telcos. However, it could affect the fixed-line market because SLT acts as a policy company to invest in fibre networks across the island to support the government’s vision of fibre-based internet for all households. Fitch also sees the financial implications of a default as ‘Strong’, as a financial default by SLT may have an impact on the availability and cost of financing options for other government-related entities.

State Trading (General) Corporation earns Rs. 61.43 million in the financial year 2018, data shows the profit of the company.

It is a growth of 19.3% over the 2017 financial year. It had made a profit of Rs. 51.5 million for the year 2017.
 

The Sri Lankan spice sector is looking at expanding the sector with technological collaborations and investments following the Global Spice Road Symposium in Colombo in June.

The industry sources said, the spice industry representatives envision that Sri Lanka as a main spice country and the growers and the exporters will be able to benefit through technological collaborations and knowledge sharing sessions during the symposium. The main objective of this event is to create an upheaval in the main segments of spice, namely, Agronomy, Post Harvesting, Primary Processing, Technological Intervention and Value Addition, Export and Commercials.

Along with product quality, the hygienic factor of low quality spices augmented through the use of health hazardous chemicals, which in fact has been a negative factor contributing to the diminishing demand for Sri Lankan Spices.

According to the Global Spice Road Symposium Secretariat, the main challenges and constraints confronted mainly by producers and exporters will be addressed in the forum to secure a holistic approach to identify the most feasible solution.

The symposium despite being a private initiative has managed to gather sufficient momentum from the government sector, mainly the endorsements from President Maithripala Sirisena and Ministry of Agriculture.

Further collaboration with the main public agencies such as the Spice Council, Spice and Allied Product Producers’ and Traders’ Association, Export Agricultural Department, United Nations Food and Agricultural Organization and many academic leaders will be a part of the external committee to drive the main strategies and formation of the event towards its envisioned success.

The Global Spice Road Symposium will be held at the Bandaranaike International Memorial Hall from July 10 to 13.

The members of the Strategy and Planning Committee of the Global Spice Road Symposium Secretariat include Dr. Heenkende, Director General of Export Agricultural Department, Gulam Chathoor, Chairman of Saboor Chathoor Pvt Ltd, Manju Gunawardena, Chairman of The Spice Council, Prins Gunasekara, Chairman of The Spice and Allied Product Producers’ and Traders’ Association and Professor Buddhi Marambe, Chairman, Board of Study in Crop Science, Postgraduate Institute of Agriculture (PGIA), University of Peradeniya.

According to the Logistics Performance Index compiled by the World Bank, Sri Lanka has moved up 11 places to 79 in 2018 compared to that a decade ago.

Furthermore, in the Index of Burden of Customs Procedures , Sri Lanka has moved up about 6 %, by cutting down cumbersome procedures involving trading goods which are imported and exported, Eran Wickramaratne, State Minister Finance & Mass Media told the International Customs Day celebration event held in Colombo on Monday.

The Department of Customs in Sri Lanka has improved in certain areas which is evident with the statistics, he said. Similarly there were several public private partnership projects underway to maximize efficiency within the Department of Customs by using the know-how of private institutions. The Minister said that the Department of Customs was responsible for more than 60% of the tax revenues of the country, making it the largest revenue collector.

In the last two years there have been efforts to increase domestic tax revenue by improving the quantity and quality of state provided services. Although imports have grown Customs revenue particularly in the last period has not grown in the same space. “I expect to see at least a 20% increase in customs revenue as a minimum target in 2019.” He said the rupee depreciation would also help in that context.

The minister said this year Sri Lanka has the highest level of debt payments. He therefore reiterated the importance of achieving the targets of tax revenue to improve the fiscal position of the country.

Wickramaratne said he was certain the Customs Department will continue to improve the quality and efficiency of its services and adopt state of the art technology which will really help Sri Lanka.

Ports, Shipping and Southern Development Minister Sagala Ratnayaka said the implementation of the proposed port tariff revision will be deferred until March 15 considering concerns raised by multiple industry stakeholders.

The Cabinet ratified the decision today after a Cabinet memorandum presented by Minister Ratnayaka seeking to defer the implementation of the tariff revision due to concerns raised by multiple industry stakeholders.

The Cabinet will review the tariffs after considering the report of the committee appointed to look into the matter. The committee comprises of several senior officials of the Sri Lanka Ports Authority (SLPA), and a member each from the Ceylon Association of Shipping Agents (CASA), the Chamber of Exporters, the Import Section of the Ceylon Chamber of Commerce, the Sri Lanka Logistics and Freight Forward Association (SLAFFA), Joint Apparel Associations Forum (JAAF), Association of Clearing and Forwarding Agent (ACFA) and the National Chamber of Commerce.

The committee, the minister’s Cabinet memorandum said, would study the tariff consolidation further and make necessary recommendations on the way forward. The tariff revision was approved by the Cabinet on November 5, during the second Cabinet meeting of the Sirisena-Rajapaksa government. However, multiple industry stakeholders raised concerns about the revision and said it would be detrimental to the import and export sectors.

The new tea factory of Maxims Holdings Company established at Mulleriyawa, Ambathale area was opened by the President Maithripala Sirisena yesterday.

This modern tea factory with an investment of Rs 2 billion, composed of the cutting age technology, a computerized store house complex and most modern office complex and has the capability of making tea with machines and packing systems and other technological procedures.

A business approved by the Sri Lanka Board of Investment, this tea factory will produce high quality tea, primarily for export. It will also provide packing facilities to small and medium sector tea plantations.

The warehouse is equipped with a modern racking system and will be ventilated by electrical turbine ventilators along with windows. It will be using sky lighting through the roof with energy saving light (CFL and LED),” said Dr. Saman Weerasinghe, Chairman Maxim Holdings Private Limited and former Sri Lankan Ambassador for Russia Dr. Saman Weerasighe.

The facility comprises a fully air conditioned main office covering 11,771 square feet. The office has well laid out dedicated areas. Lobby and Elevator (6 passenger 450kgs) have access to the 1st floor, office for Chairman and Board of Directors, office space for HR and Administration Department, office space for Finance, office space for Marketing, office space for Operations (Import Export), office space for Product Development, office space for Procurements, Tea Tasting Room, Staff Pantry and rest rooms.

The tea processing facility and warehouse processing facility along with the double height warehouse has dedicated areas which include air conditioned office spaces for the Factory Manager, Assistant Factory Manager, and the Tea Bagging Manager, air conditioned Cool Room for store flavours, tea blending area, air conditioned tea bag machine area, Packing area, Lab and Testing area, Machine and Maintenance Room, factory staff pantry and rest rooms, Raw Material Store, Packing Material Store, Finish Goods Store, Loading and Unloading Bay, Generator Room, Fork Lift Charging Area, worker rest rooms and canteen.

People’s Leasing & Finance PLC (PLC), the non-bank finance sector affiliated to the People’s Bank was recognized as one of the 10 best companies in Sri Lanka, at the ‘Best Corporate Citizen Sustainability Awards - 2018’.

The award ceremony organized annually by the Sri Lanka Board of Commerce recognizes companies dedicated towards sustainability.

The award ceremony was held for the 15th time at the Cinnamon Grand hotel, with the distinguished participation of the Speaker of the Parliamnet, Karu Jayasuriya, as the Chief Guest of the ceremony.

Speaking on PLC’s achievement at BCC Awards 2018, Mr. Sabry Ibrahim, CEO/ GM PLC said, “Best Corporate Citizen Sustainability Awards 2018 endows great value and credibility to our company. Finance, sustainability and social responsibility is the criteria set by ‘Best Corporate Citizen Sustainability Awards’ to select the best companies in a particular year. It is encouraging news for the PLC and its stakeholders, to understand PLC is within the 10 best companies in 2018.”

“PLC is a mammoth company that is dedicated towards customer satisfaction and Sri Lanka’s sustainable development. We engage in business in a socially responsible manner. This award has endorsed PLC’s sustainable forward march”.

People’s Leasing was commissioned in 1995 as a wholly owned subsidiary of one of the largest state banks in Sri Lanka, the People’s Bank.

Fitch Rating Lanka has assigned PLC a credit rating of AA- (lka) which makes PLC the highest rated Finance company in the country.

PLC is the only Sri Lankan Finance company to have two international ratings of which one is equal to the Sovereign from Standard & Poor’s (‘B+/B’) and the other is one notch below the Sovereign from Fitch Rating International (‘B’).

PLC’s financial service product portfolio includes; leasing, auto loan, fixed deposits, saving accounts, housing and business loans, gold loans, margin trading, factoring and Islamic financial services.

People’s Leasing conglomerate consists of six subsidiaries namely, People’s Insurance PLC, People’s Micro-Commerce Ltd, People’s Leasing Property Development Ltd, People’s Leasing Fleet Management Ltd, People’s Leasing Havelock Properties Ltd and its latest foreign venture Lankan Alliance Finance Limited.

The Chartered Institute of Logistics and Transport (CILT) Sri Lanka has welcomed the appointment of an eminent Fellow of the Institute as the new Secretarytothe Ministry of Ports, Shipping and Southern Development -Dr. Parakrama Dissanayake(FCILT).

Dr Dissanayake has been a past Chairman of Sri Lanka Ports Authority and alsoof CILT Sri Lanka and has received many accolades locally and globally, for his contribution and leadership inthe Sri Lankan Maritime and Logistics sector.

The Institute is greatly encouraged by Dr. Dissanayake’s sentiments that his vision of signing a MoU between the terminal operators within Port of Colombo and initiatives taken to improve efficiency among them, convening regular meetings with industry stakeholders and giving operational solutions in a timely manner to bring the port sector to the record highest throughput of seven million TEUs in 2018.

The country will undoubtedly require well-trained and qualified professionalslike him to achieve this vision and CILT has been at the forefront of delivering this in Sri Lanka for several years now.

Dr. Dissanayake is a fine example of CILT being the career partner for life that starts with students and support their careers all the way to becoming a professional at the highest level, for which CILT offers the platform for growth.

Becoming a secretary to the ministry of Port & Shipping & Southern Development is an admirable accomplishment, and CILT as a globally recognized professional body within which you are a highly reputed fellow member look forward to your extraordinary contribution to the industry in your capacity as the Secretary to the Ministry.

The North East will receive a tremendous economic and tourism boost with the proposed development of the Palali airport, said Government Agent, District Secretary Jaffna, N. Vethanayahan at the opening ceremony of the Jaffna international trade fair on Friday.

He said that the government has allocated Rs. 2 billion for this development, which can be done without relocating people in the area.

Vethanayahan said that in addition the Indian-funded Kankesanthurai harbour development project has been fast tracked and is to be opened by 2020. “This too would give Northern entrepreneur more access to international markets benefit in more foreign exchange to Sri Lanka via direct exports.”

He however said that during the troubled period of nearly 30 years, the private sector suffered a major setback as they lost most of their machinery and even after several years after the conflict are still unable to stand alone. “These enterprisers should be given more incentives by way of soft loans by the government.”

Meanwhile - Consul General, Consulate General of India, Jaffna, S. Balachandran speaking to ‘Daily News Business’ said that around 70% work of the KKS harbour has now been completed. “These include clearing of the debris.”

In Janauray 2018 India extended a fresh financial assistance of USS 45.27 million, for upgrading Kankesanthurai (KKS) Harbour in northern Sri Lanka into a commercial port and strengthening the country’s efforts to become a regional maritime hub.

“In addition the cultural centre which is to be development with Indian aid is now nearing completion and would be opened in July this year. The Centre will have facilities to host mega MICE events and this could be used to develop tourism in the North.”

Meanwhile President, Chamber of Commerce and Industries of Yarlpanam, K. Vignesh said that talks have one again commenced with regard to the restarting the Kankesanthurai ferry Service up to Tuticorin, known officially as Thoothukudi in India.

The Trump administration imposed sanctions against Venezuela’s state-owned oil company on Monday, seeking to cripple the government of embattled President Nicolás Maduro by cutting off its main source of cash.

The move marked the first punitive step by the United States to force Maduro to give up power since the opposition leader, Juan Guaidó, declared himself interim president last week after years of accusations of corruption in Venezuela at the expense of its people.

The sanctions prohibit most American businesses from engaging in transactions with the Oil Company, Petróleos de Venezuela, S.A., or Pdvsa. Administration officials said the financial penalties are expected to block US$7 billion in assets and result in $11 billion in export losses over the next year for Venezuela’s government, starving it from its most important source of revenue and foreign currency.

Last week, the Trump administration recognized Guaidó, the 35-year-old leader of the National Assembly, as his supporters took to the streets to demand new elections. Maduro has cut ties to the United States and has demanded that all American diplomats leave the country.

Steven Mnuchin, the Treasury secretary, said Pdvsa had “long been a vehicle for embezzlement” among top Venezuelan officials and politically connected businessmen.

“The United States is holding accountable those responsible for Venezuela’s tragic decline,” Mnuchin said at the White House. He said the Trump administration would pursue all diplomatic and economic avenues to support Guaidó and the National Assembly, “and the Venezuelan people’s efforts to restore their democracy.”

In Caracas, the Venezuelan capital, Maduro immediately denounced the sanctions as “unilateral, illegal, immoral and criminal.”

“You will have blood on your hands, President Trump,” Maduro said during a ceremony honoring Venezuelan diplomats who recently returned home from the United States.

Maduro said he had ordered Pdvsa to pursue legal action to retain its assets. In an interview Monday before the sanctions were announced, Guaidó said his nascent government was making every effort it could to get control of Venezuela’s international assets — and mainly the state oil company.

“They have the bureaucracy of this country kidnapped, they direct this bureaucracy,” he said, referring to Mr. Maduro and his control of Pdvsa. (www.nytimes.com)

In the early morning of January, as the snow covering the Atlas Mountains in central Morocco remains unmelted, the Chinese staff of the Noor Concentrated Solar Power or CSP projects in Ouarzazate, a city south of the mountain range, have already started a day’s work despite the freezing temperature.

In May 2015, Shandong Electric Power Construction Co Ltd or Sepco-III, a subsidiary of Power Construction Corporation of China, undertook the construction of Noor-II and Noor-III CSP projects in Ouarzazate, the gateway to the Sahara Desert.

After more than 1,000 days and nights of hard work, both projects have been put into commercial operation.

The two power stations have achieved stable full-load operation with hundreds of millions of kilowatt-hours of electricity already delivered to the Moroccan grid, said Zhou Hejun, vice-president of the Middle East region of Sepco-III.

According to Liang Xinfeng, chief engineer of the Noor-II project, the 200-mW facility has the world’s largest installed capacity as a parabolic trough power plant, while the 160-mW installed capacity of the Noor-III is the largest among the world’s tower power plants.

As the first 100-mW tower CSP project built by Chinese enterprises overseas, Noor-III has put a severe test on the construction.

“But through unremitting efforts, we have overcome various problems and obtained valuable experience about how to integrate key facilities such as solar field, center tower, power block and molten salt tank,” Zhou said.

Wang Guangchun, a general manager of the Noor-II and Noor-III projects, said his company attaches great importance to fulfilling its social responsibility in Morocco, as the two projects have offered more than 13,000 job opportunities for local residents in over three years.

Khadija Agoujdam, a human resources manager of the Noor-II and Noor-III projects, said the “openness” and “inclusiveness” of the Chinese firms have impressed her.

“Unlike other companies, they are willing to recruit labor with zero work experience and to spend time in training them to be skilled workers,” said Agoujdam, who has worked for the two projects for more than three years.

According to her, many Moroccans have gained work experience and better professional qualities at the Noor-II and Noor-III projects.

In October 2018, the government of Ouarzazate province gave two awards to the Noor-II and Noor-III projects for actively fulfilling social responsibilities and promoting economic development in the region.

“Chinese companies respect local employees and encourage them to acquire more skills. I hope more and more Chinese companies will come to Morocco to help us develop the economy,” Agoujdam said.

(chinadaily.com.cn)

The Kingdom of Saudi Arabia (KSA) has introduced new customs rules asking travellers to submit declarations to the customs authority if they carry goods or currencies equivalent to or more than 60,000 Saudi Riyals.

The central bank of Bangladesh has communicated the new Saudi rules to all authorised dealer (AD) banks of foreign exchange in Bangladesh, directing them to inform their customers travelling to/from the KSA to avoid any penalty.

“However, entitlements of foreign exchange for travelling to the KSA on various grounds by Bangladeshi nationals as enumerated in Guidelines for Foreign Exchange Transactions-2018, Volume 1 and subsequent circulars/circular letters shall remain unchanged,” the Bangladesh Bank (BB), the country’s central bank, said in a notification on Sunday.

It also said the rules and regulations require all travellers arriving in or departing from the KSA to submit declarations to the Saudi Customs Authority if they carry goods such as cash money, financial instruments, gold bullions, precious metals, stones or jewellery equivalent to or more than 60,000 Saudi Riyals, according to the notification. Talking to the BBN, a BB senior official said the central bank issued the circular in this connection to raise awareness among the people about the new customs rules of KSA to avoid any penalty.

(Bangladesh Business News)

Trincomalee and Galle harbours will operate 24/7 with night navigation before the end of this year, Ports, Shipping and Southern Development Minister Sagala Ratnayaka said.

The Minister said the Trincomalee harbour, a natural resource with immense economic potential will have night navigation in April. The project is supported by a JPY 1 billion grant by the Japan International Cooperation System (JICS).

The Minister added speedy measures would be adopted to set up new radar systems and other necessary infrastructure to introduce night navigation to the Trincomalee harbour which will be transformed into a port that can handle more volume of activities, including more general cargo ships.

“The government has earmarked the Trincomalee area as a potential export hub. Transformation of Trincomalee Harbour into a highly competitive port will be a key pillar of our export hub strategy,” the minister explained.

Trincomalee Harbour is considered the second best natural harbor in the world and has up to 10 times the land area as the Colombo port. Its current dimensions are Water area up to 1630 Hectares, an entrance channel of 500 Meters and a land area of 5,261 hectares.

“We also have plans to introduce night navigation to the Galle harbour before the end of the year. Apart from the economic and industrial aspects, we will also look at the tourism aspect when developing the Galle harbour,” the minister explained.

Norway is committed to bilateral cooperation on oceans and to helping Sri Lanka put in place data based management of ocean resources, which will enable Sri Lanka to better monitor its fish stocks, Ambassador of Norway to Sri Lanka and Maldives, Thorbjørn Gaustadsæther said in Colombo yesterday.

He was speaking at an event to launch the main research findings of the survey carried out by the Norwegian Research Vessel Dr. Fridtjof Nansen in Sri Lanka in 2018.

The event was organized by the National Aquatic Resources Research and Development Agency (NARA) and Institute of Marine Research, Norway (IMR).

Ambassador Gaustadsæther also highlighted the importance of sharing these research findings with other Sri Lankan stakeholders both in the public and in the private sector to make informed decisions related to oceans and fisheries. He also reiterated the importance of Sustainable Development Goal 14 (SDG 14) on conserving and sustainably using the oceans, seas and marine resources to achieve Sri Lanka’s economic growth.

Norwegian Research Vessel Dr. Fridtjof Nansen successfully completed an ecosystem survey in the coastal waters of Sri Lanka from June 23 to July 16 last year. The survey was part of the EAF-Nansen Programme implemented by the Food and Agriculture Organization of the United Nations (FAO) in close collaboration with the Institute of Marine Research, Norway and funded by the Norwegian Agency for Development Cooperation (Norad). The survey was a result of Sri Lanka - Norway bilateral agreement to provide technical assistance to improve management of the fisheries sector in Sri Lanka and it provided training for Sri Lankan scientists and post survey data analyses.

The aim of the survey last year was to carry out a marine resources survey around Sri Lanka with the expectation that the survey should provide Sri Lanka with up-to-date data, which will be useful for future management of the country’s fisheries resources. Nina Brandstrup, FAO Representative in Sri Lanka said, “the successful completion of this programme in Sri Lanka is a testament to the longstanding relations between FAO, the Government of Norway and Sri Lanka. The findings of the survey will be an important baseline for FAO in supporting Sri Lanka achieve sustainable management of fisheries resources amidst mounting pressures such as climate change and pollution.”

 The visit of the RV Dr. Fridtjof Nansen was also an opportunity to highlight the longstanding development cooperation between Sri Lanka and Norway, especially in the field of fisheries, which started in 1971. The Norwegian fisheries cooperation with Sri Lanka includes fisheries management, research and education, and private sector development. From 2013 to 2017, NOK 11.1 million (approx. USD 1.3 million ) has been disbursed for these activities.

P. Harrison, Minister of Agriculture, Rural Economy Affairs, Livestock Development, Irrigation and Fisheries and Aquatic Resources Development and Dilip Wedaarachchi, State Minister, Ministry of Fisheries and Aquatic Resources Development also highlighted the importance of the resource survey and its findings to take necessary management decisions.

K. D. S. Ruwanchandra, Secretary of the Ministry of Agriculture, Rural Economy Affairs, Livestock Development, Irrigation and Fisheries and Aquatic Resources Development, representatives of IMR, NARA, National Aquaculture Development Authority of Sri Lanka and a number of other government officials were present at the event.

Footwear and Leather Product exports have surged by 300 percent in the 10 year period of 2008 to 2018, the Export Development Board (EDB) revealed.

In 2018, its exports totalled US $ 119 million. 48% of it were bought by Vietnam and 16% by the UK. Around US $ 900,000 of Lankan footwear were also imported by the US (2018). The Industry Ministry has been supporting the Footwear and Leather exhibition series for the last 10 years, investing almost Rs 28 million aimed at image building to advance in its long term export efforts.

Meanwhile, the industry has come forward to felicitate the Cabinet Minister in charge of it for invaluable support and services that he rendered towards its success.

“Minister Bathiudeen made special efforts to resolve issues faced by Sri Lankan industrialists and supported to transform the footwear and leather sector to be a competitive, export-standard segment,” said the President of Sri Lanka Footwear and Leather Products Manufacturers Association (SLFLPMA) P.G.D. Nimalasiri on January 27.

SLFLPMA’s Nimalasiri who awarded the industry’s felicitation to the Minister of Industry and Commerce, Resettlement of Protracted Displaced Persons & Cooperative Development Rishad Bathiudeen on January 27 at the 11th Footwear and Leather Fair 2019 in Colombo, added: “Minister Bathiudeen has rendered invaluable support and services to the footwear and leather sector by bringing in anti-dumping regulations, introducing surcharges for imported footwear parts. He increased the import cess for such parts from Rs 300 to 600 and the local manufacturers were promptly safeguarded and supported to transform the sector to a competitive, export-standard segment. He also resolved issues faced by our leather tanners and is considering the establishment of a special leather industry and tanning zone. He has initiated Sri Lanka’s first ever footwear and leather training course series with SLITA under the Industry Ministry. Footwear and Leather Products Industry is Rs 100 Billion sector and has great potential in years to come.

The footwear and leather sector operators therefore wish to felicitate him today for his invaluable support and services rendered as Sri Lanka’s Cabinet Minister of Industries.”

Sri Lanka’s footwear and leather sector employs around 300,000 and according to SLFLPMA’s President Nimalasiri, its annual production is estimated at around US $ 550 Mn (Rs 100 Billion). It’s among the leading forex-saving industries in the country. The sector involves all scales of Lankan operators.