business Sri Lanka

Hong Kong-based Cathay Pacific Airways celebrates 25 years of service in Sri Lanka this month. The airline commenced its flights to Colombo in October 1993 with just two flights a week. Since then the airline has expanded its services to the island offering greater choice and convenience to customers travelling to and from Sri Lanka via Cathay Pacific’s extensive international network and the regional network of sister airline, Cathay Dragon.

Launching a series of celebrations in October, the airline announced a limited period flash sale with up to 25% discount on Economy Class flights from Colombo to select destinations.

Cathay Pacific Airways also offers amongst the fastest flying times between Colombo and North America, with special all-inclusive return fares under the flash sale offer. The promotional offer is also available for popular destinations in Japan and Korea with attractive fares in Economy Class.

Commenting on the launch of flash sale, Vishnu Rajendran, Country Lead – Sri Lanka and Maldives for Cathay Pacific Airways said “Sri Lanka has always been an important market in our network and we continually strive to offer seamless connections for Sri Lankans travelling from Colombo to key destinations in Asia, North America and Australia via our Hong Kong hub.”

The two day sale ends by mid-night of October 2, 2018 and bookings made using this offer are valid for travel outbound until 31 October 2018 subject to seat availability.

Cathay Pacific currently connects Sri Lanka to the world with daily non-stop flights between Colombo and Hong Kong operated by Airbus A330-300 aircraft featuring the award-winning fully flat-bed Business Class seats together with ergonomically designed Economy Class seats.

 findmyfare.com Sri Lanka’s online travel company, is raising funding of US$ 2 million from Ironwood Capital Partners.

The investment that they recently raised will help further accelerate findmyfare’s rapid ascent.

findmyfare.com was the brainchild of Abishek Sithampalam and Thushan Shanmugarajah, two young entrepreneurs who set their mind to starting an e-commerce business from the time they were university students.

Commenting on the company’s latest deal, Thushan Shanmugarajah - Co-Founder/CEO of findmyfare.com stated, “When Abishek and I started findmyfare, we aspired to transform the industry. Today, with this new investment, we are in a position to achieve that dream.”

Abishek Sithampalam - Co-Founder/Director, findmyfare.com added, “We were fortunate to attract excellent partners that invested in us thus far, including Guardian Capital and Jafferjee Brothers.

“We are now excited that a reputed investor such as Ironwood Capital Partners foresees the potential we have and has decided to invest with us.”

Ironwood Capital Partners is a Private Equity Fund Manager set up to manage dedicated country funds for Sri Lanka. Ironwood Capital Partners assists companies such as findmyfare to unlock growth potential, through leveraging their managerial, operational and strategic know-how along with providing access to international networks.

Hiran Embuldeniya - Managing Partner of Ironwood Capital Partners, said “Abishek and Thushan are two dynamic young entrepreneurs that launched one of the most exciting start ups in Sri Lanka. We have to support more young people like this for the future of the country”.

In 2012, they began their journey with a very small investment and a group of friends as staff. Whilst they themselves remain understated, their company has taken the local travel industry by storm, growing at a compounded annual growth rate in excess of 70% over the past 3 years. Findmyfare has now surpassed several of the mainstays in this established industry by achieving an annual Gross Booking Value of 3.2 billion rupees in the fiscal year ended March 2018.

In addition, the company has quoted over 300 million online fares last year, with 500k+ monthly flight searches and 100k subscribed customers on their website.

In a bid to fall in line with some of the advancement of online ticket bookings, The National Transport Commission (NTC) has launched an online booking facility for long distance private buses starting from Colombo.

This facility which is now operational was launched by Transport Minister Nimal Siripala de Silva at the Ministry premises last week.

This will also given an opportunity for tourists to book online even prior to them arriving in Sri Lanka, through the website www.ntcbooking.lk, an official from the Transport Ministry said. “With this new facility, passengers can book their seats without any inconvenience,” an official from the ministry said.

A service fee of Rs.30 passengers would be charged in addition to the bus fare when making an online booking.

Sri Lanka Transport Board (SLTB) intends importing 500 new buses for $ 20 million under the Indian line of credit. Four hundred 57 seat buses and hundred 35 seat buses will be imported. In addition 1000 low floor buses from Hungary too would be imported.

Caption: Minister of Transport Nimal Siripala de Silva discussing the project at the Ministry premises last week.

World Tourism Day on the theme Digital Transformation -UNWTO organized by Chamber of Tourism and Industry Sri Lanka was held in a grandeur in Arugambay Pacific Hotel Auditorium last Thursday.

The ceremonies chaired by the President of Chamber of Tourism and Industry Sri Lanka AM Jaufer was attended by Minister of City Planning and Water Supply Rauf Hakeem as Chief Guest while Deputy Ministers Faizal Cassim, HMM Hares, State Minister Shiriyani Wijewickrema participated as guests of honor. District Secretary DML Bandaranayke, Deputy Inspector General Nuwan Weddhasinghe, Predeshya Saba Chairman MS. Wasith, Divisional Secretary ACM Naseel and several other officials from the tourist sectors too graced the occasion.

Addressing the gathering which included a large number tourists from other countries Minister Rauff Hakeem said that Arugambay is one of the world reputed tourists destinations which attracts guests for its surfing spots and other historical monuments. Hence, this Chamber has to play a pivotal role in developing and providing all facilities to the tourists.

“I shall take all measures to look in to their needs and attend to them. It is also the bounden duty of the all Hoteliers and public to maintain the atmosphere very nicely. “

Touching upon the drinking water problems and the land issues that were prevailing in Pottuvil area, he said that he would soon sort out the problems with the officials and pave the way for them get back to their normal life. Prior to the ceremony, Chief Guest Minister Rauff Hakeem, along with the Guests of honor Deputy Ministers Faizal Cassim, HMM Hares and State Minister Shiriyani Wijewickrema , District Secretary DML Bandaranayake, DIG Nuwan Weddhasinghe were taken on a parade flanked by Kandiyan dances and other cultural dances.

The highlights of the program were handing over of Awards to nine domestic airlines for their excellent services to the area, surfers, best life guards, hoteliers, national park operators, tuk tuk operators, and Eco tourism operators.

Minister Hakeem was presented with a memento by the President of CTISL Jaufer as a mark of remembrance of the day and this was followed by the presentation of mementos to Deputy Ministers Faizal Cassim, HMM Hares, State Minister Shiriyani Wijewickrema, District Secretary DML Bandaranayke and DIG Nuwan Weddhasinghe to mark the day.

 Sri Lanka Tourism Development Authority decided to open a branch office in Jaffna soon, said Tourism and Christian Religious Affairs Minister John Amaratunge at the World Tourism Day celebrations in Jaffna.

Jaffna is one of the emergence tourism destinations in Sri Lanka. The government too is very keen to develop the tourism industry in NE and this is the reason we plan to open this office in Jaffna soon, he said.

SLTDA already opened a hotel school in Jaffna but the numbers of students are few. If the tourism industry grows in Jaffna, ordinary people too could earn an additional income not only through direct employment but also by offering other services like, transport and supply of food and beverages the Minister said.

“We are also strongly considering start the Rameswram-Talaimannar ferry service once again,” Amaratunga said

Minister also disclosed plans to conduct domestic flight services between Katunayake and Plalay.

The second day of the World Tourism Day, celebrations in Jaffna, was held in the Jaffna University Kailasapathy Auditorium.

Minister Amaratunge also invited the Tamil Diaspora, to invest in Northern tourism sector and help the Jaffna Tamils and helped them to overcome poverty.

Northern Province Chief Minister C. V. Vigneswaran also said that while tourism should be promoted in Jaffna local people’s cultural values too should be respected. “We know that Hikkaduwa area is facing lot of cultural issues due to the advancement of tourism.”

Cultural shows and exhibitions were also held in the Jaffna Municipal grounds. Essay competitions conducted for students about tourism, certificates awarded the best essays.

State Minister of Tourism and Christian affairs Ranjith Aluvihare, TNA Parliamentarians Mavai Senathirajah, Selvam Adaikkalanathan, Indian Consulate General of Jaffna K. Balacahnadran, Jaffna University Vice Chancellor R.Vignewsaran, V. Sivagnanasothy Secretary Ministry of Tourism and Christian Religious Affairs and P.U Ratnayake Director General of SLTDA also participated.

Glyphosate is not available despite the removal of its ban, tea industry sources said.

“Though the ban on Glyphosate is lifted for specific use in tea and rubber a plantation, the country is yet to receive the fist consignment. We do hope that this will be resolved by mind-October to avoid further issues with regard to exports in the future,” said Chairman Planters Association Sunil Poboliyadde speaking at the AGM.

He said that they were made to understand that unless Glyphosate was made available to the growers in Sri Lanka, Japan might very soon lose the confidence they have with Sri Lanka tea and go into the other origins for their purchases.

“The only alternative for Glyphosate MCPA is not accepted by Japan,” he said.

He said the tea industry was in stable position after having suffered a prolonged period of four years with low prices. “During the past year the prices improved to a record high level of Rs. 600 to 700 per kilo. Unfortunately, during the latter part of the last financial year, the prices started to decline again and now they stand at an overall average of Rs. 550.”

There have been many seasons for the drop, starting with the issue with Russia where they detected the beetle inside a container.

“We also have many trade issues especially with Turkey and some other export destinations with trade sanctions affecting the low grown leafy tea market.”

Commenting on the workers he said that they were glad that the unions agreed for productivity based wage structure at the last revision and also to look at a revenue sharing model which needs to be aggressively pursued for the sustainability to the industry.

He said the production of rubber has shown a slight increase but it is way below compared to the production recorded five years ago. “The natural rubber price is mostly governed by the price of Petroleum which has not changed much during the past year.”

Rubber plantations are shrinking and the main cause for this decline has been the diminishing extents of rubber land, and also the climate change which has had an adverse impact in harvesting.

He also said that Palm Oil plantations too are facing an issue as the government encourages the sector and now they are discouraging it without proper research. “The industry had imported seedlings worth Rs. 450 million in the nurseries but is unable to plant them out in the field due to a ban imposed by the government.”

“It has come to a crucial point where there is no solution but to put out these available plants with north-east monsoon rains. Otherwise, the companies would have no alternative but to discard the plants losing millions of rupees.”

Among other critical issue is the ad hoc acquisition of plantation lands. “Most lands lost in the plantation sector are the most high yielding and profitable lands with easy access. We are aware that land is required for housing etc but acquisition priority should be for bare land or lands with low productivity.”

Meanwhile Chief Guest Minister of Labour Relations Ravindra Samaraweera said that as the industry faces challenges from the Fourth Industrial Revolution, the planters must take advantage of the opportunities that would come in the form of automation and digitization to improve productivity.

He however said that the industry will never be able to do away with the human element. He also appealed to the industry stake holders to look after the people who work on estates to ensure the highest standards of welfare in estates for the workers.

Fitch Ratings Lanka Limited has assigned Serendib Finance Limited a National Long-Term Rating of ‘A+(lka)’. The outlook is stable.

Serendib’s rating is driven by Fitch’s view that support would be forthcoming from its parent, Commercial Bank of Ceylon PLC (CB). CB’s credit profile and its ability to support Serendib is reflected in its ‘AA(lka)’/Stable rating, which is underpinned by its standalone strength. The support assessment also takes into account CB’s 100% ownership of Serendib and a track record of support by the parent via multiple equity infusions.

China has been prompt and highly professional in the selection of projects and disbursements of funds which Sri Lanka has found to be lengthy and time consuming in other multi-lateral and bi-lateral relationships, said Minister Dr. Sarath Amunugama addressing an Economic Forum on the “Belt and Road Initiative”  held in Chengdu, China last week. 

“As a result Sri Lanka was able to mobilise Chinese support in time,” he said.

Dr Amunugama however said that most developing countries have increased their debt burden in relation to international multi-lateral and bi-lateral lenders.  China has played a positive role in suggesting a conversion of debt to equity in many of the projects that were launched with Chinese assistance.

The future will therefore be more complex in the realization of investment for infrastructural development.  While the World Bank, ADB and AIIB have enhanced their lending capacity many borrowers are inhibited by the debt ceilings imposed either by the IMF or by their own budgetary constraints.

Recent developments in the areas of trade and commerce, with the imposition of new tariffs and trade embargos, will finally affect the development effects of the poorer nations.  I would like to suggest that we appoint a high level group of eminent persons to examine ways and means of overcoming their debt difficulties.

The Minister also said that Sri Lanka is strategically located in South Asia and is known as the “Pearl of the Orient”.  President Xi Jinping at the inaugural meeting of the Belt and Road initiative was kind enough to say that “Sri Lanka is not only the pearl of the orient” but also the Pearl of the Belt and Road” co-operation.

It is the duty of all local exporters to convert Lanka in to a export- oriented country to achieve the objective of prospering its economic growth, 99X Technology CEO Mano Sekaram urged addressing the 26th annual National Chamber of Exporters (NCE) Awards ceremony held in Colombo.

Sri Lanka’s Netherlands Ambassador Joanne Doornewaard was the Chief Guest. Over 50 Sri Lankan exporters of local products including agricultural, rubber, tea and spice and spices based products were felicitated at the ceremony.

Delivering the keynote address Guest of Honour Sekaram valued the service rendered by local exporters to prosper the economy and thanked the National Chamber of Exporters for their untiring support extending towards our exporters to market their exports.

“Since Sri Lanka has no large domestic population such as India and China to drive the economic growth by domestic consumption, we have to increase our exports to convert Sri Lanka as an export oriented country,” he said.

He also highlighted the invaluable service rendered by Sri Lankan exporters and said statistics revealed that Lanka would be able to reach a record foreign exchange target due to the tireless efforts of our exporters.

NCE, President Ramal Jayasinghe said the Lanka export sector should be developed to the maximum to achieve the expected goal and said the Chamber also actively participated and contributed to the development of the export sector. He said the problem Lankan business community faced was the impacts of the impending free trade agreements and other matters such as lack of skilled labourers and the affects of increased taxes imposed on Lankan export sector.

Senior Vice President NCE Ramya Weerakoon said their prime objective is to provide all award winners to gain national exposure among clients, prospective buyers and business partners both locally and internationally.

The Vice President also valued the bilateral relations between Sri Lankan and Netherlands that have existed with the mutual understanding between the two nations. She said this awards ceremony for exporters was inaugurated in 1992 and continued uninterruptedly for the last 26 years. She said such recognition of exporters will undoubtedly take their enterprises to greater heights .

Netherlands Ambassador Joanne Doornewaard also highlighted the longstanding trade relationship with Sri Lanka.

Sri Lanka’s communication sector has hit top spot in the world and the country is capable achieving this feat in the power and energy sector as well, asserted State Minister of Power and Renewable Energy, Ajith P. Perera addressing the annual conference of the Organization of Professional Associations of Sri Lanka last week in Colombo.

Perera said Sri Lanka has made huge strides in renewable energy production and in the past two years itself through the Soorya Bala Sangramaya project have added 181 mw to the national grid which could be valued at US$ 200 million. This was through sola roof panels and solar parks put up in rural areas.

State Minister of Power and Renewable Energy, Ajith P. Perera

The Minister however cautioned that corruption had been a huge bane in the development of renewable energy in the country in the past. A few individuals with permits were commanding a monopoly in the sector, he said. The government with a very ambitious effort has been able to do away with that draconian permit system and for the first time in the history of the country tendered two 10 mw power plant projects. The Electricity Board used to purchase a unit of electricity from private suppliers at Rs 23.10 and from the first tender itself by creating competition the government was able to bring it down by 50 percent to Rs 12 per unit. He said they called tenders for 60, 1mw projects around the country and was capable to bring down the average solar power unit which stood at 23.10 to Rs 17.10. The government subsequently tendered another 90, 1mw projects and according to the latest tender the average cost of purchasing a unit of solar power has come down to Rs 15.40 a reduction of 40 percent. Similarly tenders were called for two 10 mw power projects where they were able to negotiate Rs 11.82 and 12.20 respectively for a solar power unit which is a 50 percent reduction. The minister said within a couple of months they would call tenders for a 70 mw wind power, 150 mw solar power and two 100 mw solar power plants in Siyambalanduwa and Pooneryn. Perera said the government’s ultimate goal was to move to 100 percent renewable power production by 2050.

The Electricity Board plans to construct a 100 mw wind power plant in mannar and the cost of producing unit of electricity using wind power was $ 0.5 per unit. This is in contrast to Sri Lanka’s current electricity generating cost of US $ 0.8 per unit.

To achieve this, the power sector should be converted into a smart grid and the road map to the smart grid has been approved by the Cabinet last week and the process is expected to be completed within the next five years. The country will require 60 lakhs of smart meters and this would be produced by a local factory, he said. To coordinate these activities a control room has already being put up in Battaramulla with an investment of Rs 3 billion.

Fairfirst Insurance clinched the title of best website insurance at the Web Awards 2018 organized by the esteemed Web Marketing Association in USA.

Now in its 17th year, the Web Award program is the longest running annual website award competition dedicated to naming the best Web sites from across 96 industries while setting the standard of excellence for all website development.

Each entry is evaluated against a number of criteria’s such as Design, Innovation, Content, Technology, Interactivity, Copy writing and Ease of use.

Former recipients of the award include some of the biggest names in insurance like GEICO, AXA and Liberty Mutual. Fairfirst Insurance is incidentally the only Sri Lankan insurer to have succeeded in claiming this international title.

Supported by cutting edge technology and the remarkable design and development capabilities of Antrya Solutions – a boutique digital services agency, Fairfirst sets the bar high with its user friendly and refined website.

“To us the website is not merely an information disseminating platform. We have everything from 24x7 customer support, an online insurance purchasing platform to customer inquiry and grievance management happening via the site,” said Sasith Bambaradeniya, Head of Marketing and Digital solutions.

“Our versatile offerings have allowed us to stand out from the rest and it’s an absolute honor to have been recognized at such a global platform for our efforts”.

Fairfirst has been consistently investing in tech driven products and propositions making them the only insurer that’s home to an end to end online insurance purchasing platform.

The shop which has radically transformed how insurance can be purchased offers insurance for vehicles, motorbikes and most recently pets.

Fairfirst also launched its very first artificial intelligence based chat bot named Machan, yet another tech driven breakthrough which expedites the claiming process and provides customers real time information on the status of their claim. Once again, Machan has been seamlessly integrated to the website making him accessible to people from anywhere at any time.

The Fairfirst website provides users an easy to navigate layout that displays the various personal and business & institutional insurance covers offered. Live customer support, an online payment gateway, customer complaints portal and the branch network are a few of the other distinctive features offered to users.

Niranka Perera, Founder and CEO of Antrya Solutions said, “We are proud of this achievement. Joining Fairfirst Insurance to conceptualize, design and develop their vision into a functioning online platform that has today, won global recognition is a huge milestone for us both”.

“We look forward to working hand-in-hand with Fairfirst to further innovate and revolutionize the insurance industry”, he further added.

Among the top General Insurance companies of Sri Lanka, Fairfirst serves individuals, businesses and institutions across this beautiful island through a versatile workforce spread across a comprehensive branch network, affinity partners and leading brokers in the market.

Alibaba Group Holding Ltd, China’s biggest e-commerce firm, warned on Thursday investments in its delivery business would keep pressuring profits even as it reported its strongest-ever quarterly revenue growth, largely in line with estimates.

US-listed shares of Asia’s most valuable public company rose early on Thursday but then erased gains to end the day down 3 per cent. While Alibaba makes money from its core businesses, including online marketplaces Tmall and Taobao and payment platform Alipay, it also has far-flung investments in sports content, microchips and facial recognition technology.

“As Alibaba continues to invest in New Retail initiatives, the consolidation of lower margin businesses such as Cainiao, Ele.me, and Lazada is shifting the long-term margin profile of the core business,” Baird analyst Colin Sebastian said in a note.

“We expect management’s ongoing focus on New Retail market share will continue to be a profitability headwind for the foreseeable future,” said Sebastian, cutting his price target on the stock by US$5 to US$215.

In April-June, Alibaba’s gross margin was 11 per cent versus 29.2 per cent a year earlier, the lowest since the company’s 2014 stock exchange listing. Profit margins at Alibaba are typically well above 20 per cent.

On Thursday, the company said it had formed a holding company for its food delivery platform Ele.me and food and lifestyle services firm Koubei, for which it had received over US$3 billion in new investment commitments, including from SoftBank Group Corp and Alibaba itself.

Quarterly net profit at Alibaba, led by China’s second-richest man Jack Ma, plunged 41 per cent, hurt by a one-time charge for stock-based compensation paid to employees to account for a jump in valuation of its affiliate Ant Financial.

Without the charge, Alibaba said its net income would have risen by 33 per cent from the year-ago period. Excluding one-off items, the company earned 8.04 yuan per share, or US$1.22 per share, missing the average estimate of 8.15 yuan per share. Channel NewsAsia

Mercmarine Training, Sri Lanka’s leading maritime training institute has been announced as a finalist for ‘The Maritime Education & Training Award’ at the Maritime Standard Awards 2018.

The annual Awards Show which is being held for the 5th consecutive year will take place at The Palm in Dubai this October under the patronage of Sheikh Ahmed bin Saeed Al Maktoum, President of the Dubai Civil Aviation Authority and Chairman of the Emirates Group and Dubai World.

The other finalists in ‘The Maritime Education & Training Award’ category include; Abu Dhabi Ports, DP World, Jordan Academy of Maritime Studies, Kuwait Oil Tanker Company and the Shipping Corporation of India.

Expressing his thoughts on their achievement, Captain L. K. Jayasuriya, Principal of Mercmarine Training said, “We are honoured to be named a finalist at the Maritime Standard Awards 2018. Having previously won the award under the same category, this year’s selection is a testament to our continued commitment to upholding the quality and standards in maritime training and education in Sri Lanka and for producing some of the most notable seafarers in the region.”

The Maritime Standard Awards is considered to be one of the world’s leading shipping and maritime awards events and the premier event of its kind in the region. The gala evening recognizes and honours the feats of the industry’s most worthy and outstanding players.

‘The Maritime Education and Training Award’, of which the Mercmarine Training Institute was adjudged the winner in 2014, identifies an educational institution, organization or an individual that has made a significant contribution to maritime education or training in the Middle East and the Indian Subcontinent. To be recognized as a finalist is a commendation bestowed on the top maritime training institutes, and attests to their quality and adherence to international standards of training.

Around 800 high level executives from the worlds of shipping, ports, shipbuilding and repair and other maritime sectors will attend the event, along with leading figures from governmental agencies and international industry bodies, to witness the presentation of these prestigious awards.

The awards show is judged by an independent panel comprising some of the industry’s most renowned names. In addition to ‘The Maritime Education and Training’ category the event also recognizes and awards the industry for Safety and Security; Environmental Protection; Green Shipping; Technology & Innovation; Corporate Social Responsibility; Transport & Logistics and Energy, Oil and Gas Shipping. Moreover, they also present awards under the categories of Shipyard/Ship Repair Facility; Marine Broker; Marine Insurance Company; Ship Manager; Ship Agency; Tanker Operator; Ship owner and Operator; Classification Society; Terminal Operator; Shipping Company and Port of the Year.

The Ceylon National Chamber of Industries (CNCI) held its 57 Annual General Meeting (AGM) recently in Colombo. Raja Hewabowala, who had been the Chairman CNCI for the past year was re-elected Chairman for another term of one year.

Presenting the Chairman’s Review, Hewabowala said that the post war era with a peaceful atmosphere after a three decades war, the infra-structural development programmes in the country, measures taken by the government to attract Foreign Direct Investors will hopefully create more opportunities in the areas of business both to start and improve. However, the CNCI believes that such opportunities alone do not suffice to make a good businessman without know how and the direction. This is an important era where the chamber involves in filling the gap.

Raja Hewabowala  garland the official memento as the newly appointed chairman by the pro tem chairman. Pictures by Saliya Rupasinghe

He pointed out that during the period under review, there have also been instances where the Sri Lankan industries have happened to face challenges. Global threats, natural disasters, labour issues, environmental issues, social and political issues coupled with competition have been among a bundle of challenges. The monetary an fiscal policy of the Government also created novel experiences to the local industries amid all these challenges.

He further said that the proposed Free trade Agreement (FTA) between Sri Lanka and China, ETCA with India and the already signed FTA with Singapore were significant factors to be concerned by the industrial sector. The Latest is the Singapore Sri Lanka Free Trade Agreement, where the association believed that there were certain adverse implications to the industrial sector. “We submitted the industrial concerns to the Committee appointed by the President,” he said.

Hewabowala added that as the pioneering chamber for industries in the country, their endeavour was to create a level playing field for the local industries which should be free of undue constraints.

Hewabowala is a graduate in Rubber and Polymer Chemistry at the University of Moratwua. After graduation, he joined the paint industry as an employee and later decided to achieve his future aspirations with great confidence. In 1979 he started a company named Silicone Coatings with the brand name of Nippolac with only three workers. After 33 yeas in the Industry, Silicone Coatings (pvt) Ltd entered into a strategic partnership with “Nippon Paint”, which became the Asia’s number one paint manufacturer by 2012 . Hewabowala is also the Managing Director of Can-tec Printing and Packing (Pvt) Ltd, Speciality Construction Chemicals (Pvt) Ltd and Resin and polymer Technologies (Pvt) Ltd.

(MFJ)

Global IT Park Minami Uonuma initiated in 2016 with an aim to practice and promote open innovation between Japanese companies, Sri Lankan IT companies and other foreign IT companies. Adam Innovation came up with this concept through its global strategy consulting services for Japanese companies.

“Japan is a very unique country. Compared to many other countries in the world Japan has deeply rooted business culture and extraordinary achievements. By the 1970s and 1980s, Japan extended its domination to the global electronics industry as it manufactured the majority of the world’s consumer electronics products. They introduced innovative and revolutionary new products such as the pocket transistor radio, the VHS recorder and the Sony Walkman, which created a totally new market that was similar to the Apple iPod and iPhone in recent years. Japanese electronics manufacturers also established a strategic foothold in the growing computer hardware industry, virtually Japan’s Bubble Economy: Nintendo monopolizing the market for semiconductor chips, circuit boards and other computer components – nearly everything except for CPU chip production, which was still dominated by American companies. In the 1980s, many people believed that the Japanese firms Sony and Hitachi would eventually acquire American electronics giants Intel and IBM”, said President, Adam Innovations Co., Ltd, Kaushal Wawlagala.

“In Japan, industries dominated by large business conglomerates “keiretsu” in Japanese. Typical keiretsu conglomerates were arranged in the form of a series of interlocking industrial corporations organized around a Japanese bank. There are also a large number of “monozukuri” companies who manufacture products and services for those keiretsu conglomerates. Monozukuri literally means ‘production’ or ‘making of things’ in Japanese. But, monozukuri is more than just crafting; it is a mindset, a spirit, a philosophy. It is the Japanese work ethic and the drive toward perfection”, he said.

“Due to this strong bond among Japanese companies, it’s really difficult for foreign companies to break this barrier. To have a business contract with a Japanese company is extremely difficult. I have seen many Sri Lankan companies are coming to Japan to start business with Japanese companies. They also initiate some good discussions. But, when it comes to business contracts it is almost impossible. That is one of the reasons we helped Sri Lankan IT companies to set up their Japan office in Global IT Park”, he said.

Global IT Park is not just a business park to provide office space. It is a total support system for foreign IT companies. Even a Sri Lankan startup can start its office in Japan and be able to work with Japanese companies. We like to support startups because they approach problems differently, are constantly finding solutions, and are driven to make the most out of their time and work. Global IT Park has a good mix of startups and mature companies from Sri Lanka and India. We provide various support for them to get business in Japan. We conduct various business activities such as organizing regular business seminars and discussions with Japanese counterparts. We build partnerships with universities and business associations such as chambers and IT Associations. We conduct events and activities to build communication between Japanese and foreigners. We participate in major exhibitions too. Last year Global IT Park booth at “Niigata Biz Expo” got the highest number of B2B Meetings and number of visitors”, he said.

“Global IT Park is a very challenging project there are many things that we need to consider. There are language barriers and strong cultural barriers. More than that software development projects are not much visible to Japanese monozukuri companies as they are used to manufacturing hardware. Most companies do not have IT departments and top management do not understand the value of software. Therefore, the customer journey of closing a sale is long and time consuming. On the other hand, foreign companies expect quick wins. Thus, satisfying those two counterparts are extremely challenging. We utilize a lot of resources to create this harmony”, he said.

Kaushal Wawlagala with executive delegation from Niigata Keizai Doyukai (Niigata Association of Corporate Executives), consists of top executives in Niigata companies

“Last two years we spend a lot of time and money on PR activities as it is important to build awareness about technologies and foreign companies among Japanese companies. However, in last two years we were able to start a few amazing projects with Japanese companies and government entities. To name few, we developed a health monitoring application for Japanese construction and mining workers. We completed the phase one of the Ocular disease screening systems. We developed a multilingual restaurant App for foreigners to enjoy Japanese cuisine. We are in the process of developing a highly intelligent competency matching platform to match the skills and competencies for a particular project, Smart Parking Solutions, Foreigners’ registration system for City offices. Document Management system for large organizations, Smart toilet to monitor the health of senior citizens. Most of these projects are handled by Sri Lankan IT companies,” he said.

“We are very optimistic about the future of the Global IT Park. The government of Japan is to introduce a big stimulus package to motivate Japanese monozukuri companies to use new generation IT technologies. The Cabinet already passed the new Economic Policy Package to push up productivity through the use of technologies such as artificial intelligence, robots, IoT. This will help Sri Lankan IT companies to work hand in hand with Japanese companies to develop new generation technologies,” he said.

Currently, there are six Sri Lankan IT companies registered at Global IT Park Japan. Those registered companies obtain the project and pass it to their Sri Lankan office for development. The management of those projects is done by the Japanese office together with Adam Innovations. This has high confidence and visibility for Japanese companies than directly passing a project to a foreign company,” he said.

“Sri Lanka has talented IT Engineers who can design and develop world-class solutions. We want to find good companies with a talented pool of such Engineers. This will help us to raise the bar of Sri Lanka in Japan and also to bring a lot of foreign revenue to Sri Lanka,” he added.

Global IT Park in Japan is planning to showcase their new technologies in October Niigata Biz Expo and 2nd Anniversary events.

The Asian Development Bank’s (ADB) Board of Directors has approved a $300 million loan to help in the construction of about 5.3 kilometers (km) of elevated toll highway with related facilities between the New Kelani Bridge (NKB) and Galle Face in central Colombo in Sri Lanka. The new highway is expected to ease traffic congestion, improve connectivity, and facilitate trade logistics in the country.

“Improved connectivity and infrastructure development are essential if Sri Lanka is to reach its potential as a trade and logistics hub in South Asia,” said ADB Senior Transport Specialist for South Asia Kanzo Nakai. “The new highway will help provide a direct link to the city center and the port from the Colombo–Katunayake Expressway through the NKB, improving connectivity and contributing to growth.”

In 2016, the port of Colombo handled about 1.3 million 20-foot equivalent units (TEUs) of gateway container cargo, which could double to 2.5 million TEUs in 2030 as Sri Lanka continues to grow. The port, however, is only serviced by a four-lane, ground-level access road passing through its main gate, which intersects with Baseline Road, one of the busiest trunk roads in Colombo. This leads to serious traffic congestion in the city and holds back trade and mobility.

The 5.3-km elevated toll highway to be built as part of the South Asian Subregional Economic Cooperation (SASEC) Port Access Elevated Highway Project will include related road facilities including an advanced electronic toll collection (ETC) system, which will eventually be installed on the entire expressway network. The project will also upgrade 1.4 km of the ground-level port access road from four to six lanes, while a maritime facilitation center will be constructed to provide better services to port users and relocate and gather the administrative and operational functions of the port, many of which will be affected by the construction of the elevated highway.

The project also contributes to regional connectivity and trade, in line with SASEC’s goals.

Additionally, ADB will provide a $500,000 technical assistance for the Expressway Operations Improvement component of the project, which will strengthen the operational capacity of the expressway regarding its toll rate policy and the ETC system. The Japan Fund for Poverty Reduction, financed by the Government of Japan, will also provide a $1.25 million grant to support trade logistics facilitation for customs modernization.

The total cost of the project is $360.2 million, with the Government of Sri Lanka contributing $60.2 million. The project is expected to be completed by mid-2025.

Information and cyber security are critical for businesses today, especially those that rely heavily on digital infrastructure such as Nations Trust Bank, with its comprehensive digital banking services. This need for cyber security awareness and readiness drove the senior management of Nations Trust Bank to go a step further and engage in a Game of Threats, a proprietary cyber security strategy training programme for business leaders, provided by the international giant, PWC (Price Waterhouse Coopers).

Speaking about the cyber security training, Nishan Mendis Executive Director Consulting Technology at PWC Sri Lanka said, ‘Game of Threats is a digital game that is designed to simulate the speed and complexity of an actual cyber breach. This is the first time that a bank or financial institution in Sri Lanka has taken such a comprehensive measure to ensure readiness to meet any cyber security threat, at such a high level.Our solution integrates elements of gamification and game theory to provide an interactive experience where client teams play both offense and defence. The game environment creates a realistic experience where both sides are required to make quick, high impact decisions with minimal information.’

Information security is a key focus area for Nations Trust Bank. The organization is ISO 27001 certified and maintains world class standards in terms of information security, conducting security audits multiple times each year. The Bank also allocates vast resources annually to upgrade systems and to work with companies of global repute such as PWC to ensure the strength and integrity of its information and data systems.

Nisala Kodippili – Chief Information Officer at Nations Trust Bank elaborated further saying, ‘We rely heavily on digital banking; in fact over 50% of retail traffic now comes in via our digital channels. Therefore, cyber security is extremely important to us. Over the last few decades, cyber security has moved from being something only technical teams deal with to something that is also dealt with at the boardroom level."

‘This is the third time we are conducting cyber security trainings at the senior management level but this is the first time we have used simulations and gamification. Normally, we conduct classroom sessions as part of our cyber security training protocol but classroom sessions can never provide real world like experience and when it comes to the serious cyber security issues that we can face at any time, it’s essential that the Senior Management has hands on real-world training."

‘That’s why we decided to engage the services of PWC to use their proprietary Game of Threats cyber security training solution for business leaders. Game of Threats™ is a turn based digital game that lets players understand cyber security risks and strategies through real-time simulations."

The Bank of Ceylon opened its self service banking unit, BOC Smart Zone at the newest state-of-the-art Luxury residences, hotel and shopping mall in Colombo, Colombo City (CCC) last week with the participation of the Bank’s Assistant General Manager (Western Province North) Priyal Silva, Chief Manager (Business Process Re-engineering Project) V. Sivananthan, Operations Manager (Western Province North) M.K.G.I Keerthilatha, Area Manager –Kushan Delgoda and Managing Director Colombo City Center Sriram Chakravarti.

The Bank is currently in the process of expanding its digital customer touch points strategically.

The Bank’s latest addition to its digital chain, BOC Smart Zone is a sophisticated self serving customer service center that includes ATM, CDM and bill payment Kiosk.

Apart from the benefit of the cash withdrawal facility from the ATM, through the CDM, customers can instantly deposit cash straight into their BOC account that gets credited on real time without an additional charge and pay any utility bill payments through the bill payment Kiosk.

Colombo Business Systems (PRIVATE) Ltd. was recently appointed the distributor for the Amano range of products in Sri Lanka.

Amano Time Recorders, Watchman’s Clocks, Finger Scanners, and Date and Time Stamp Machines have been sold and serviced for almost four decades in Sri Lanka.

The full product range of Amano products includes Time Management Systems and Products, Parking Controls, Parking Management Systems, Environmental Systems and Industrial Dust Collection Systems, Pneumatic Conveying Systems and Commercial Cleaning Systems including Robotic Industrial Cleaning Equipment.

Colombo Business Systems (PRIVATE) Ltd. (CBS) will continue to provide top class after-sales services with ample parts and consumables and honor applicable warranties for the range of Amano Time Management Products that were sold in Sri Lanka by the former distributor, Hideki International.

Fully trained personnel operate the customer support functions, some of who have almost thirty years of experience servicing and supporting Amano products in Sri Lanka, providing total peace of mind to customers ensuring their investment is safe in a genuine Amano product. Colombo Business Systems (PRIVATE) Ltd or

“We also take this opportunity to advise all existing and prospective customers that we have not appointed any resellers or service agents in Sri Lanka to sell or service Amano products and to avoid using any unauthorized persons or organizations claiming to represent Amano, CBS, or the former distributor, Hideki,” an official from CBS said.

The Department of Industrial Development and Enterprise Promotion (DIDEP) Central province recently concluded the Star Awards for the year 2018 for the 14th consecutive year at the Grand Kandyan Hotel, Kandy.

Edirisinghe Homes (PVT) Ltd in Kandy won at Star Awards 2018 for Large Scale, Service Sector at this ceremony. The primary objective of the Star Awards 2018 is to appreciate and encourage best performing entrepreneurs in the Central Province.

The evaluation was made on a number of criteria encompassing planning process, achieving targets, creativeness, modernization, growth, financial management, human resources management, awards and social evaluation, standardization, internal administration activities, environmentally friendliness.

The Metropolitan Group celebrates 60 years of bringing advanced technology and services to workplaces across Sri Lanka with the issue of a commemorative stamp showcasing the corporate head office signifying the growth and the values that had been the pillars of Metropolitan’s growth : Trust and Excellence.

This commemorative stamp was issued in recognition of the companies achievements over the past 60 years by the Post Master General Ranjith Ariyarathne.

“This stamp could not have been more timely and it represents the values and confidence that customers, partners have attributed to Metropolitan which are Trust and Excellence,” said J. J. Ambani.

Metropolitan commenced its business in 1958 by the late J. S. Ambani, with its primary focus on Office Machines and Supplies. To date, it remains a closely controlled entity.

Many reputed companies in Sri Lanka including blue chips were in the same business. However, with due focus and the realizations of its potential enabled Metropolitan to establish its dominant position in this space within a relatively short period of time.

With the advancement of electronics in this field and more over the liberalization that took place in 1977, Metropolitan adapted to the changes and challenges and maintained its dominant position inter alia in the field of Office and Banking Machines, Telecommunications and IT products and solutions.

One of the key factors that could be attributed to Metropolitan’s success is its partnership with the very best of international organizations in their respective fields. For example, Canon Inc. Japan, Johnson Controls, USA, Ericsson AB of Sweden, Acer Inc., ROC.

The Group also specialize in public private partnerships in technology projects and have also been entrusted with the production for smart card driving license for the Department of Motor Traffic for the past 10 years which can be regarded as one of the best public/private sector partnerships in the country, and been printing the national budget for almost 10 years.

Chief Sales and Marketing Officer- CHEC Port City, Colombo, Liang Thow Ming said that Colombo port city will be developed as a world class city for South Asia and also sought the support of the Sri Lankan government as well as the general public to help realize this vision to create much needed economic benefits in the long run.

“Concept behind this project is to create a city for all and also the project will be executed based on two pillars; livability and sustainability,” he said.

He said the port city land reclamation is scheduled to be completed by mid -2019 and subsequently, they intend to commence work on international financial centre during the same year.

He said so at the 31st annual conference of the Organization of Professional Association of Sri Lanka under the theme, ‘Innovative Digitalization’ held at Cinnamon Grand Hotel, Colombo yesterday.

Making a presentation on ‘towards a digitalized new business era’ at the event, he stressed the need to create more inclusive, integrated and intelligent cities to engage citizens and provide them with better services. He added further that smart cities are anticipated to create huge business opportunities with a market value of over $ 2 trillion by 2025.

Artificial Intelligence (AI), personalized healthcare, robotics, advanced driver assistance systems, distributed energy generation and other technologies will drive smart cities of the future.

In addition, the Asia Pacific region is anticipated to be the fastest growing region in the smart energy space by 2025. More than 50% of smart cities will be in Asia.

Meanwhile Jiffry Zulfer, Chief Executive Officer of PickMe speaking at the event said emerging technologies today are likely to reshape all steps of business activities and the government as well as policymakers need to understand this situation and take immediate actions to develop both ICT sector and start up culture in Sri Lanka.

“Today computers are impacting our day to day lives in a bigger way and will continually disrupt every industry you can think of. And many jobs that we have today will not exist in another 10 years time and we need to be aware of what’s coming in the future,” he said.
He said Sri Lanka needs to recognize these emerging trends and take necessary steps to stay relevant in the market place.
According to him, the world’s most valuable resource is no longer oil, but technology and data.

China will overtake the United States to become the world’s biggest economy by 2030, economists at HSBC Holdings Plc predicted in a study published on Tuesday, Bloomberg reported.

The study also forecasts that China will remain the biggest contributor to global economic growth over the next decade.

It predicts China’s GDP will increase from $14.1 trillion today to $26 trillion in 2030, while the GDP of the US will grow slowly from $20.4 trillion to $25.2 trillion.

The forecast stands in sharp contrast to the claim made by US President Donald Trump last month that China was no longer on track to surpass the US in a very short period of time. However HSBC’s prediction is backed by another made by the International Monetary Fund in July, which also said China could become the world’s largest economy by 2030.

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Chairman of National Agency for Public Private Partnership (NAPPP) Thilan Wijesinghe yesterday said NAPPA is looking at ways how PPP could be used to make state owned entities viable in the country.

He said, Kandy Mahaiyawa Urban Housing Project, Pettah Multimodel Hub, Ekala Aero City Project, Convention Centre Port City, Medical Complex port city, School at Port City, Dedduwa integrated tourism development project, Colombo Port cruise terminal, renewable energy park in Pooneryn, Barge mounted power plant are some of the PPP projects in the pipeline in the country. He was speaking at the 31st annual conference OPA under the theme, ‘Innovative Digitalization’, held at Cinnamon Lakeside Hotel yesterday.

Talking about technological aspects, Wijesinghe said the delay in implementing the Transit Smart Card Project in Sri Lanka is a major concern. “Transit Smart Card project has been gravitating among Information and Communication Technology Agency of Sri Lanka (ICTA) ICTA, Central Bank of Sri Lanka, Ministry of Transport and various other line ministries over the last two and a half years.”

“However, we have thrown our hat into the ring and taken some control of it. What we have today is a brilliant technical solution. But it is sad that there is no idea how this project can be implemented from a financial model perspective,” he said.

He also revealed that PPP Agency or any other line ministries currently don’t have a single tangible large scale digital infrastructure project that’s under implementation stage.

He said the government should be essential partners in shaping the transition to new scientific, technological, economic and social framework.

“Subsequently, NAPPP would be able to play a catalytic role in facilitating PPPs in digital infrastructure and act as a leading partner for generating economic productivity,” he said.

He also noted that Sri Lanka has a successful track record in implementing PPPs with no failed transactions. “Also, the government must not over- estimate what it can do,” he said.

He added, Sri Lanka has financially closed over US $ 5 billion worth of PPP projects in the last 20 years. “If you go back to the 1996-2000 era when I was the Board of Investment (BOI) Chairman, that was the time when Sri Lanka embarked on the PPP journey and financially closed almost a $1 billion worth of PPP projects over a five-year period,” he said.

The Organization of Professional Association of Sri Lanka, holding their annual conference for the second consecutive day yesterday listed the importance of moving onto digital Human Resource Management (HRM) for the future Sri Lanka. Not varying with the Basic idea of HRM Digital HR transforms HR by maximizing the opportunities technology brings.

“HRM is a matter of seven G’s: Goal, Get, Give, Grow, Glue, Glow, and Guard”, addressing the gathering Prof. Ajantha Dharmasiri, Director of IPM said.

He further said that there should be a proper balance in high-tech high-touch harmony, referring to Human Resource Management and Robotic Resource Management (RRM). Almost 50% of the jobs are invaded by machines in the next 30 years. Hence paradox navigation is the future for digital HR cooperating with the multi-cultural, multi-generational, multi-skilled workforces.

Workplaces, workforces becomes digital except HR. The new generation becomes a digital generation such that there will be a tremendous challenge when dealing with the next generation talents.

“Rate of technology is so fast now”, Harsha Purasinghe, Chairman and CEO of Microimage said adding further that organizations need to use the power of digital technology in daily routines.

Everything needs to be real time with Employee engagements. Digital tools need to be adopted by organizations so that people can work from anywhere and mechanisms should be there to monitor their performance.

Apparently a digital platform needs to be built with access to cloud facilities, mobile and social technology and data analytics.

“We are still in the early stages of AI and concepts such as Internet of Things/ Wearable Technology and Artificial Intelligence have become common topics of discussion.

Therefore devices need to be integrated with such technologies to assist in the working environment.” Purasinghe added. Many large companies are re-inventing for the future, new job titles are emerging, however ethics and values cannot be forgotten irrespective of the fact that everything is digital and it must be ensured that peoples’ wishes are fulfilled within an organization.

Sri Lanka incurs a massive financial and man-hour loss due to traffic congestion every year and the loss is estimated at Rs 360 billion per annum.

According to the experts, the country is losing a thumping amount of money each year due to lack of public transport facilities and insufficient traffic systems and etc.

Gayani de Alwis- Chairperson of the Chartered Institute of Logistics and Transport, Sri Lanka, told the 31st annual conference of the Organization of Professional Association of Sri Lanka (OPA), held under the theme ‘Innovative Digitalization’ at Cinnamon Lakeside Hotel yesterday.

She also stressed the need to find proper solutions to redress issues facing the public transport sector in Sri Lanka by utilizing information communication technology to deliver a better public transport service and to enhance overall urban systems.

She said Sri Lanka needs to restructure local bus services in particular using digital solutions to improve the quality of service level to give a pleasurable experience to the passengers and to attract more people into public transport system.

De Alwis said further that policy consistency, integrated planning, policy change management , 5G (the fifth generation of mobile networks) and energy infrastructure such power system stability and storage and connectivity infrastructure modernization would play a crucial role in developing new urban public transport system in Sri Lanka.

The World Tourism Day under the global theme ‘Tourism and the Digital Transformation’ was celebrated in Jaffna yesterday with a series of events hosted by the Sri Lanka Tourism Development Authority (SLTDA) and the Sri Lanka Tourism Promotions Bureau (SLTPB).

The three day celebrations also include a tourism exhibition and a cultural show at the Municipal Council grounds, Jaffna under the mandated theme by the United Nations to drive digital tourism. A special panel discussion on ‘Tourism and the Digital Transformation’ is also included. In addition a street food festival and an essay, photography and video competition will also take place to mark the World Tourism Day.

National Youth Corps training centers has launched a major island-wide drive to recruit students who have completed their GCE A/L and have failed to continue higher studies.

Mooted under proposal by the then Minister of Youth Affairs and Prime Minister Ranil Wickremesinghe. School leavers who are in the age range of 18 – 28 years are eligible to enter National Youth Corps training centers for trainings.

The successful students who join the National Youth Corps would be provided a comprehensive training on Leadership, Personality Development, English, Information Technology, Hospitality, Career guidance, Adventure Base Training, Career Guidance and Discipline. In addition Vocational training too would be conducted and successful students would be awarded with the NVQ level 3 certificates at the end of the course.

They will be also allocated on the job training in the public and private sector institutions as well.

Trainees would also be provided a special allowance of Rs. 3,000, bus fair, meal allowance, uniforms and also an insurance coverage would be provided free of charge.

The program is been monitored by Ministry of Youth Affairs, Project Management and Southern Development under the guidance of its Minister Sagala Rathnayaka.

The programs are guided by Director Brigadier N. I. De Silva (RSP) from their head office in Bauddhaloka Mawatha, Colombo 07.Currently the recruiting for the second intake for 2018 at the National Youth Corps Training Center, in Yatinuwara is now in progress and more emphasis this year would be on improving Spoken English skills and Information Technology. The Yatinuwara Youth Corps Training Center operates under the leadership of the Officer in Charge Major, E. K. D. P. Ellawala.

Standard Chartered was named the Best Overall International Bank for Belt & Road Initiative (BRI) in Asiamoney’s New Silk Road Finance Awards 2018 and the Best Foreign Bank For One Belt, One Road in Global Finance’s The Stars of China Awards 2018, which fully recognise the bank’s leading position in capitalising on the enormous opportunities arising from the Belt & Road initiative.

Meanwhile, Standard Chartered was also recognised by Asiamoney as the, Best International Bank in Southeast Asia for BRI, Best Bank for Infrastructure/Project Finance in Southeast Asia, Best International Bank in South Asia for BRI, Best Bank for BRI-related financing in South Asia and best Regional Bank for BRI in Middle East & Africa.

In addition, Standard Chartered bagged three awards in the inaugural GlobalRMB China Capital Markets Awards, Best Offshore RMB Bond House, Best Bank for Asset-backed Securities and Best Bank for Securities Services.

Carmen Ling, Global Head of RMB Internationalisation / Belt & Road, Standard Chartered, said: “We are proud to win all these recognitions from the leading financial publications for our efforts in supporting China’s opening, in particular the Belt & Road initiative. Standard Chartered’s footprint covers nearly 70% of the Belt & Road markets, in many of which we have presence for over 100 years.”

“With the deep local knowledge, we are uniquely positioned to provide an effective suite of banking services to help clients seize the opportunities. In 2017 alone, Standard Chartered was involved in more than 50 deals related to the Belt & Road initiative.”

Asiamoney said: “Standard Chartered’s deep roots in Asia, and its presence in the majority of the BRI markets make it a natural winner of the award for Best Overall International Bank for BRI.”

Asiamoney and GlobalRMBare part of GlobalCapital, which is a leading news, opinion and data service headquartered in London for people and institutions using and working in the international capital markets.

The Asian Development Bank (ADB) yesteray signed an agreement with Hatton National Bank (HNB), under ADB’s Microfinance Risk Participation and Guarantee Program, to expand local currency lending and provide guarantees of up to $20 million to the microfinance sector in Sri Lanka.

The agreement was signed by ADB’s Private Sector Financial Institutions Division Senior Investment Specialist Sabine Spohn and HNB Deputy General Manager - SME & Midmarket Jude Fernando at a ceremony in Colombo.

“We are excited to partner with HNB, an established player in microfinance in Sri Lanka,” said Spohn. “Our partnership will help further expand the Microfinance Program, which has already facilitated more than $846 million in local currency loans across the region since 2012. Together, HNB and ADB will improve access to financial services to even more low-income families and small-business owners, especially in rural and remote areas in Sri Lanka.”

Currently, many microfinance institutions struggle to access funds for growth from the commercial market to meet the demands of clients. Only approximately 17% of women have access to formal financial services in Sri Lanka. Through the Microfinance Program, ADB aims to fill market gaps by sharing risks with commercial banks to promote local currency lending to these institutions. This helps mitigate microfinance institutions’ exposure to foreign exchange risks.

“This collaboration represents another key step in HNB’s strategy to expand service to the low-income population, build on our in-depth experience in Sri Lanka, and further expand the bank’s support to the microfinance segment,” said Mr. Fernando.

Backed by ADB’s AAA credit rating, the Microfinance Program provides risk sharing and guarantees to international and local partner financial institutions. Since 2012, the Microfinance Program has supported more than 4.47 million microfinance borrowers, who are predominantly women, primarily in India, Bangladesh, Indonesia, and Myanmar. To date, more than $440.73 million private sector co financing has been raised through the program.

K-Line vessel Hawaiian Highway, a car carrier sailing from Marshall Island, called at the Hambantota Port recently.

The vessel carried 1260 cars on board, for discharge at the port. This was the first ever KLine vessel to berth at the Hambantota International Port following the recent signing of the Terminal Service Agreement (TSA) between KLPL and HIPG.

Captain of the m.v. Hawaiian Highway, Filipov Genchev said, “It’s a pleasure to stop by this lovely port of Hambantota, and I wish to make this a regular call”.

KLine local agent, Executive Director of ABC shipping (Pvt) Ltd. Roshan Dissanayake and his team were also present to commemorate this maiden call ceremony.

The LP Gas Distributors Association (LPGDASL), attached to Litro Gas says that they urgently need a revision of their handling charges.

“Sri Lanka will be facing an imminent crisis in LP Gas distribution that could negatively impact the economy unless the relevant authorities take meaningful steps to address their longstanding grievances.”

The Association has called for a reasonable increase in the channel margin from the current 7.5% to 12%. They also called for a higher transport margin which is to be amended to a minimum of Rs.7 per km within Colombo district with a sufficient increase in percentage for all other districts. “This will result in the increase of around Rs. 70 for a medium size cylinder of gas,” said President LP gas Distributors Association, Sathyendra Wijayapura yesterday.

“We are asking for a revision of channel margin as costs in fuel, diesel, tyres vehicle spare parts and other overheads have gone up. “We must also state that there had been no revision of our costs in the past six years. Since 2007, we have been adhering to the highest of business standards and doing our very best to ensure that there is no disruption whatsoever to the LP Gas distribution in Sri Lanka. We have borrowed from various financial institutions, invested heavily and overcome numerous challenges with the greatest difficulty to make sure that we have safely and efficiently made all our deliveries 365 days of the year for several years, so that both our domestic and industrial consumers are able to function smoothly.”

He added that their growing list of financial commitments range from paying loan installments, increasing staff salaries, lease installments on vehicles, regular staff training, periodic marketing and promotions, vehicle insurance, maintenance and spare parts as well as safety equipment for employees. “As a result, all 35 distributors find it impossible to continue their operations at this same high level due to the extensive outflow of finances,” he added.

Liquid Petroleum Gas (LP Gas) is the most popular, convenient and economical energy source in the domestic and commercial cooking. Additionally, it is widely used in various large-scale industries such as hospitality and agriculture (animal husbandry). At present, over 5.5 million households in Sri Lanka use LP gas as the main source of cooking energy. Litro Gas enjoys over 73% of the market (over 4.25 million households) in Sri Lanka.

NLH Holdings (NLH), Sri Lanka has received the green light to restructure and settle liabilities of both Ceylinco’s Finance and Guarantee Real Estate Company (FGRECL) and Finance and Guarantee Property Developers (FGPDL).

The five member Board that was appointed by the Supreme Court approved NLH (from the three short listed companies) and has given the green light to the restructuring proposal presented by NLH Holdings (NLH).

The main investor, Chairman, NLH Holdings (NLH), Don Duminda Mayadunna, told Daily News Business that the five depositors’ associations formed to look after the interests of both these defunct companies too have given the green light for NLH to take over FGRECL and FGPDL.

“We have taken a decision to completely settle the 1,500 depositor’s claims for Rs. 7 billion by way of offering them cash and sharers. This will start from end of December 2018 and would be completed in less than two years.”

The Central Bank had proposed that depositors of FGRECL and FGPDL shall be eligible to receive a minimum of 61% and 51% respectively on the principal outstanding on deposits. “We are a financially stable company and NLH holds an asset base of Rs. 3 billion of which 25% is comprised of cash and cash equivalents and liquid assets,” he said.

“Our company has previously executed a turn-around strategy under similar circumstances, undertaking a similar approach, objective, and process outlined herein and we already have restructure four of the Ceylinco companies, that included NLH Holdings Pvt Ltd, Nations Building Society Ltd (The only Building Society registered under the National Housing Act) Ceyhomes Credit & Investments Pvt Ltd and Ceylinco Prosperity Pvt Ltd.

After taking over these four companies, 42 out of 60 installments under the agreed repayment amounts have been returned to depositors.

“Over Rs. 1 billion in an additional pool of shareholder capital is available to invest into target mergers and acquisitions.”

“NLH will be forming a JV with ZRA Holdings Pvt. Ltd, which will be listed shortly to carry out the investment and restructuring of FGRECL and FGPDL.

The Organisation of Professional Associations (OPA) has identified digitalization as the most challenging phenomenon, currently affecting the humanity and its future. “Digital technologies are radically changing our lives, young and old, our workplaces and our communities. It is re-shaping the world of work and in the process dramatically changing the ways we manage and interact within organisations and in the society,” President, OPA, Lalith A, P. Wijetunge said.

He was speaking at the inaugural ceremony of the Annual Conference of OPA at the Cinnamon Lake Hotel last evening.

He said, “It is a mega change which the environment has become volatile, uncertain, complex and ambiguous combined with the opportunities and challenges brought about the 4th industrial revolution becoming the new norm of the society.”

“Digitalization is the integration of the Digital Technologies into everyday life by digitalization of everything that can be digitalized. The literal meaning of digitalization gives an apparent idea of development of a technology dependent world”

Even though Prof. Clayton Christensen of the Harvard University termed this change as “disruptive”, we believe that the change should be positive. Therefore, OPA appropriately selected the theme “Innovative Digitalization”.

He said the professionals are of the view that as a nation we should focus our attention on, “How Sri Lanka would face the immediate challenge of Digitalization”. As a nation we need to adequately prepare ourselves to face this inevitability, successfully and optimize the benefit that would accrue from this Technological Revolution. In this mega change the world is confronted with, the government of Sri Lanka should possess a clear policy and formulate and implement a comprehensive action plan covering all critical sectors of the society such as Education, Health, Engineering, Finance and Banking, Transport and Logistics, Science and Technology. Such proactive and visionary approach by the government will save our nation from “a technological disaster or calamity”.

“It is sad to say, that our country lacks such guidance. If this situation continues, it will adversely affect our economy, quality of life and the progress of the nation. Sri Lanka will be less competitive and continued to be a lesser developed or under developed country. In this context, we professionals and the OPA urge the government not only to prepare this blue print of a national action plan on digitalization covering critical dimensions such as Objectives, Policies and Strategies, Resource Mobilization, Expected Deliverables or Outcomes and Delegation of Responsibility with specific Time frames. More importantly, ensure its implementation to achieve desired results.” 

Following the depreciation of the Sri Lankan Rupee against the US Dollar, the Sri Lanka Chamber of Pharmaceutical Industry (SLCPI) issued a statement calling on the Minister of Health Dr. Rajitha Senaratne and the National Medicines Regulatory Authority (NMRA) urgently to formulate a viable pricing mechanism for the industry, given that over 85% of all pharmaceuticals are imported and hugely impacted by the rupee depreciation.

“Today the Sri Lankan rupee stands in a historically weak position against the dollar and the impact of this massive and unprecedented depreciation is clearly being witnessed across almost every facet of the economy.

“While some sectors are able to freely adjust and others like the transport industry which are regulated but still allowed to adjust fares based on substantial increases in cost, there is not a glimmer of hope for the pharmaceutical industry. While the Sri Lankan rupee is significantly devaluing, the industry had to face a further price control of 15 molecules where importers have to absorb the loss on the imported inventory. The absence of a viable pricing mechanism has forced different stakeholders of the industry—importers, manufacturers and retailers—to absorb huge exchange losses.”

SLCPI says, in March 2014, when all pharmaceuticals products were gazetted as essential items, prices of most drugs have remained unchanged despite the devaluation of Lankan Rupee from 130 to the current 167 for 1 USD. SLCPI also notes that the price ceiling of 48 drugs in 2016 was regardless of any currency fluctuation and prices of medicinal drugs were not adjusted then, with the Pharma Industry expecting a viable long-term pricing mechanism as envisaged in the National Medicines Regulatory Authority (NMRA) Act.

However, the 30% reduction on further 15 drugs by the Health Ministry recently—while the Sri Lankan rupee is depreciating at an alarming rate—has posed several challenges for the industry to maintain its long-term sustainability. In this context, withdrawing certain drugs from the local market has become an economic imperative, SLCPI says in a press release.

“However, in the current situation all reasonable parties can see that these dynamics are totally unsustainable. Hence we urge the authorities to re-evaluate the current pricing mechanisms on a very urgent basis,” SLCPI President, Shyam Sathasivam stated.