Tea output falls in March

The latest Sri Lanka tea production figures published by the Sri Lanka Tea Board have confirmed the expected shortfall from the previously anticipated large harvest for March 2001, broker John Keells Ltd. said in a report.

The worker strike action, which took the form of scattered incidents of 'go-slow' in the upcountry tea plantations eventually progressed to grip almost all the plantations in the higher elevations within a period of just over three weeks and dangerously made inroads into the lower regions of the planting districts. This contributed to the relatively lower production levels for this month.

The National Tea Production for March 2001 was 25.95M kg, which is 6.33M kg (19.60%) lower from March 2000. High Grown production has declined by 2.50M kg (27%), Mediums down by 1.35M kg (21%) and the Low Grown by 2.47M kg (14%).

The cumulative figures from January, however, are in favour of the current year, when compared to the previous year, due largely to the high production levels in the preceding two months. The 1st quarter tally for 2001 is 79.56M kg compared to 76.53M kg in 2000, the quantity gained is 3.03M kg (3.96%) over last year.

The cumulative elevation-wise breakdown, however, makes interesting analysis. High Grown production is lower by 2.27M kg (10%), Medium Grown falls short of last year by 1.17M kg (8%), but the Low Grown sector has improved by 6.47M kg (15%) - which is necessarily the contributing factor for growth in the National Production figures.

Crop from all elevations in the ensuing months is expected to increase on account of the favourable weather conditions, John Keells said.

Ceylinco sets up Lanka's first Telemedicine Service

Telemedicine, a concept that could significantly enhance the local healthcare delivery system, has become a reality with the establishment of Sri Lanka's first telemedicine service company, Ceycom Telemedicine Ltd. a subsidiary of Ceylinco Consolidated, one of the country's leading business conglomerates.

An Internet-based specialist consultancy service introduced by Ceycom Telemedicine Ltd. allows patients and doctors in rural areas to consult leading specialists in major cities such as Colombo, Kandy, Galle etc. to seek specialist advice and opinion.

This will eliminate the need for long and costly journeys for regular follow-up visits to specialists.

At the launch of Ceycom Telemedicine Ltd. the Chairman of Ceylinco Consolidated, Lalith Kotelawala said: "My vision is to pass on the real benefit of advanced technology to the masses of this country."

The Deputy Chairman of Ceycom Telemedicine Ltd. Khavan Perera explained that this is a unique tailor-made system using advanced information technology to serve the needs of patients, medical professionals as well as the healthcare authorities in Sri Lanka.

"This is expected to greatly increase the effectiveness of the existing health care delivery system in the country," he said.

He further mentioned that the introduction of this system will pave the way for a systematic and regular referral system in the medical field, especially in specialists' consultations.

Executive Director, Ceycom Telemedicine Ltd. Gamini Gunawardana said that the company has set up four telemedicine centres in Anuradhapura, Puttalam, Galle and Kandy.

These centers will transmit patient's information and medical reports to the data centre in major cities for the opinions and recommendations of the specialists.

Mr. Gunawardana further stated that the Company hopes this novel service will be the ideal solution to all those who are burdened with the ever escalating healthcare costs in our country.

Ceycom Telemedicine Ltd. has also set up an overseas hospital service with links to leading medical institutions in India, Singapore, Australia and USA for advanced medical treatment facilities.

The company will provide a comprehensive service package for the convenience of patients seeking these facilities.

"The majority of our medical specialists are based in Colombo and other major cities, and long distance travel is becoming increasingly difficult," Mr. Gunawardena commented.

"Ceycom Telemedicine service will be a convenient, stress-free and cost-effective alternative," he added.

He highlighted the tremendous expense a patient has to bear when visiting a specialist in Colombo and other major cities.

Besides cost of travelling and accommodation, patients are sometimes accompanied by interpreters because of the language barrier between doctors and patients. Some patients travel a great distance just to show a medical report to a specialist.

Mr. Gunawardena said the services of Telemedicine centres would be extended to cover 16 other rural towns, where there is a dearth of medical personnel, by the end of this year

US$22 million funding for eRunway

By Akhry Ameer

eRunway, Inc., a U.S. company with fully owned subsidiaries in Sri Lanka and Hyderabad, India has secured US$22 million in funding to spearhead growth in infrastructure. The announcement was made by its Chairman and Chief Executive Officer, Kris Canekeratne at a recent media briefing in Colombo.

Commencing operations in Sri Lanka as Technology Providers International, the company transformed itself to the US company eRunway, Inc. in 1996. After quarter-to-quarter growth and profits it secured an initial funding of $13.5 million by Sigma Partners, a top US venture capitalist in May 2000.

The second round of funding lead by two other U.S. venture capitalists Charles River Ventures and JAFCO Ventures will be used to expand the eRunway's Advanced Technology Centres (ATC) in the U.S, Sri Lanka and India, its global operations and build on its intellectual capital.

eRunway, a provider of outsourced software and application development services has to its credit a successful incubation of edocs, a company operating an internet-based bill presentment and payment system and top U.S. businesses such as Vignette, PFPC, Lotus, Symantec, Unisys, Storage Networks, Minolta, Fannie Mae as its clients.

'Securing funding from some of the top VCs (Venture Capitalists) is in itself a recognition of our business as a strong solutions provider of leading emerging technologies,' said Mr. Canekeratne, according to whom the recognition of their business by a leading VC in the first instance had gained them six new leading customers.

The company has also recruited top executives from other U.S. companies such as Hewlett-Packard, Scient, ZEFER and also locally from John Keells to drive its expansion plans. Keith Modder, who successfully grew two IT business units in the John Keells Group has been appointed as Managing Director, Asian Operations for eRunway. 'Last year over 300 applied to get into eRunway.

We interviewed less than 15% and selected only 5% explained Mr. Canekeratne on the company's aim of giving its customers the best talent in the world's leading emerging technologies.

eRunway, Inc., a $76 million plus investment focuses on emerging technologies and operates a continuous workday between its ATCs in Westborough, Massachusetts, Hyderabad in India and Colombo through high-speed links with full motion video conferencing and internet and intranet facilities.

CEPA for poverty issues

The Centre for Poverty Analysis (CEPA) was set up last week by a group of eminent economists and professionals aimed at promoting a better understanding of poverty-related issues in Sri Lanka.

The CEPA, launched on May 1, will provide advisory and training services, based on applied empirical research, to organisations and professionals working towards poverty reduction.

CEPA takes over the implementation mandate of the Poverty Impact Monitoring Unit (PIMU) supported by the German Agency for Technical Co-operation (GTZ). PIMU, since its first phase began in November 1998, provided consultative services and training to clients from the donor-supported community on poverty impact monitoring.

The Board of Directors of CEPA is chaired by Dr. Nimal Sanderatne, Visiting Senior Fellow, Peradeniya University and former Chairman, National Development Bank and Bank of Ceylon. Other board members, including Ms. Sujatha Cooray, Director, Department of External Resources, Mr. Chandrasena Maliyadde, Secretary, Ministry of Plan Implementation, Mr. Wimal Nanayakkara, Director-General, Department of Census and Statistics, Dr. Asoka Kasturiarachchi, Assistant Resident Representative UNDP, Dr. Reinhardt Bolz, Country Director, GTZ, Mrs. Mano Alles, Managing Director, LB Finance and Dr. Darini Rajasingham, Senior Fellow, Social Scientists' Association. The organisation is registered as a non-profit company under Section 21 of the Companies Act 17 of 1982.

The objective of the CEPA is to provide independent analysis on the causes, characteristics and impact of poverty in Sri Lanka; to build capacity among development organisations to monitor poverty related impacts and to improve the know-how transfer and policy dialogue on poverty.

CEPA aims to achieve these objectives by providing services on applied research on poverty relevant issues, by way of advisory services to clients on their poverty orientation and impact monitoring; through the provision of training to build capacities of development professionals, and organising dialogue & exchange programmes to enhance co-operation on poverty related issues among policy makers, researchers and development practitioners. In its service provision, CEPA focuses on four programme areas that have developed out of the interests and needs of the organisation and its clients. The Poverty Impact Monitoring Programme continues to develop innovative approaches to assess the impact of donor- supported and government programmes on poverty reduction; The Programme on Poverty and Youth aims to support youth initiatives addressing poverty to discover and mobilise their potential to foster social change, according to a CEPA press release.

The Poverty and Conflict programme centres on issues of poverty in the conflict-affected areas of Sri Lanka and tries to ascertain to what extent relief and rehabilitation efforts have alleviated or contributed to poverty. The programme on Poverty and Enterprise Development seeks to assess the poverty relevance of current state, donor and private sector investment in entrepreneur and enterprise development.

Banking interest rates - a growing concern

Mr. Nick Cherril, CEO of Hongkong and Shanghai Banking Corporation Limited, Sri Lanka (HSBC) said last week that the banking industry was concerned that customers have to borrow at high interest rates.

"Though the Central Bank is committed to reducing interest rates, we have to monitor our lending. We have asked our managers to watch out for the early warnings," the bank's country head said at the opening of the HSBC's newest branch at Union Place on Thursday.

HSBC has also been extending its lending to infrastructure projects besides the regular loans to the apparel industry, etc.

HSBC's branch at Union Place is its 10th to be set up in the country and the second for this year, after the recent opening of a branch in Nawam Mawatha. Mr. Cherril also said that they are committed to being technically innovative and would be introducing internet banking in November this year.

Mr. David Eldon, the Chairman of HSBC who is on a visit to Sri Lanka also spoke at the opening.

He said that they are comfortable with their position here. "We hope to be here for another 100 years," he added. During his visit Mr. Eldon will also be speaking to the bank's key customers.

Mr. A.S. Jayawa-rdena, Governor of the Central Bank, ceremonially opened the new branch.

HSBC has reported a nett profit of Rs.330 million for the first half of 2000, a 15.2% rise compared to the same period in 1999, in "the best year so far in Sri Lanka" according to its CEO.

HSBC has been in Sri Lanka for 109 years and has been known for its new and innovative services.

Money Market First Capital

91 Days 182 Days 364 Days

Last Week 18.80 18.80 18.85

This Week 18.80 18.77 18.85

Change 0T (0.03) 0

Call money market

With the liquidity shortfall in the money market lowering further, the inter-bank money rates eased slightly. The Central Bank's purchases of treasury bills along with the reduction in cash in circulation due to returning of funds to the banking system, caused the liquidity improvement. The holiday affected week ending Thursday saw the liquidity shortfall maintain at the level of Rs.24-25 Bn. During the week most of the call money transactions took place between 21% and 22%. Hence, the weekly average call money rate lowered marginally to close at 21.30%.

However, the term money market remained unchanged and one month money continued to quote at 20.00% to 21.00%.

With no change in the Central Bank's open market rates, the market repo rate remained at 21.25% - 21.50%.

CB Open Market Operations

The Central Bank's open market rates, repo and reverse repo rates remained unchanged at 18.5% and 21.5% respectively. The volume on the Central Bank's reverse repo window saw a notable decline.

The amount released to the market by the Central Bank was approximately Rs.74.8 Bn averaging Rs.24.9 Bn a day.

Celltel in expansion deal

Celltel Lanka Ltd., Sri Lanka's pioneering mobile phone operator, announced last week a 213-million rupee expansion programme across the island.

The announcement was made by Celltel's owning company, Millicom International Cellular (MIC) President and CEO, Marc Beuls, and MIC Asia President, David Harris, at a Colombo news conference. The new investment will fund the second phase of Celltel's GSM network expansion, which is scheduled for completion by mid-2001.

Celltel has a 40 percent share in the local mobile phone industry.

Millennium City to introduce "Home & Company"

Millennium City, the first ever, largest, eco-friendly township and housing project in Sri Lanka will soon introduce yet another concept which again is novel to Sri Lanka that of "Shop Houses". This product is named Home & Company and offers two in one. As the name suggests, it will permit the owner to live and work on the same premises. Although this concept is new to Sri Lanka, it is an extremely popular concept in provincial cities in the Far Eastern region namely in Thailand and in Malaysia.

This will be a two-story unit of 1864 square feet with dual entrances built on 4.7 perch land. The Shop will be located on the ground floor and will consist of the Shop, corridor, rear verandah and toilet. The house is located on the upper floor and will consist of living/dining, 02 bedrooms, lobby, kitchen, toilet and two balconies. This unit will also be provided with a telephone free of charge.

The Home & Company shop houses are ideal for entrepreneurs, self-employed individuals, and private practitioners such as doctors, dentists etc.

Among the main advantages of owning a Home & Company shop house at the Millennium City will be its location, which is adjacent to the superior Commercial Complex with over 100 parking lots, the ability to cater to a ready market of over 1875 families within the Millennium City, residents in Athurugiriya and suburbs, and the freedom to operate day and night. Furthermore, they could also enjoy the other benefits offered to the Millennium City residents such as land at the government valued price, and both duty as well as GST free advantages by the way of reduced prices, while the cost of water and electricity up to the periphery of the Millennium City has been met by BOI.

There are 21 Home & Company shop houses on offer and only one kind of business of each category will be entertained on a first come first served basis. For example one dentist, one Communication Centre, one book shop etc.

Each Home & Company unit will be priced at Rs. 3.55 million and the prospective customers could reserve them by making a down payment of 10% while the balance could be paid in installments through reputed banks and other financial institutions.

People's Bank launches Jaya Sri

Seven hundred People's Bank officials consisting of Regional Managers, Branch Managers and Senior Executives met at the BMICH recently to discuss the newly launched Jaya Sri 2 Promotion. After a successful run with the first Jaya Sri programme, People's Bank is re-launching the next phase of the programme with a new look and a new face.

"Jaya Sri 2 is more vibrant and exciting," Mr. Derek Kelly, CEO/GM said. "This promotion has a host of new and valuable prizes specially tailored to appeal to the Bank's strong rural base, in addition to its urban customer. For example, premium motor boats, tractors and hand tractors are among the new regional draw prizes, in addition to the daily prizes of gold coins, monthly prizes of cars, computers, fridges, scooters and motorbikes and the Grand Annual Prize of a Mitsubishi Montero."

The briefing began with a glimpse of what Sri Lankans across the country will experience by way of a Veedi Sancharaya made up of drummers, sesath bearers, a motorized float and more. The Jaya Sri troupe will be travelling across the country bringing 'Lady Luck' and the Jaya Sri 2 programme to people to encourage them to bank with People's Bank and experience the rewards of the Jaya Sri 2 programme.

"We have to make this deposit mobilization campaign a great success, using our strong rural base," said Mr. Mano Tittawella, Chairman of the People's Bank when he discussed the challenges facing the Sri Lankan economy and the role of the banking sector with those at the briefing. "It is going to be tough for us in the future, but we need to work together as we did for the first Jaya Sri programme to make Jaya Sri 2 a success."

ISO 9002 for Arpidag

Two years ago, Richard Pieris Tyre Company Ltd., achieved the accreditation of the ISO/9002 certification for the unique "Cold-Process" of Arpidag Precured Retreads in their factories in Nawinna, Kurunegala and Weligama.

In April 2001, Arpidag International (Pvt) Ltd., was accredited with the lSO/9002 certification for its manufacturing process of Pre-cured materials. The numerous customers of "Arpidag Tyres" islandwide can now have its twin attributes - consistency in quality of material and continuity in process control, the very essence of an excellent product.

The Arpidag will always endeavour to continually improve its product quality by technological innovations, process control, research and development and monitoring consumer response.

A highly motivated, well-trained and a contended workforce, acting together as a team with a dedicated management outfit, in a safe and conducive environment strives unceasingly to maintain the ultimate quality standard well known to the Sri Lankan customers of the Richard Pieris' Group.

This timely accreditation of the ISO/9002 certification is a testimony to Arpidag's foremost strategy in exceeding customer satisfaction and delight.

Super K opens in Negombo

Super K Negombo, a franchise outlet of the Keells Supermarket chain opened its doors to the people of Negombo on May 3. This franchise operation is in collaboration with John Keells Holdings and a local partner from Negombo. This outlet is the 5th to be opened for the Super K outlets and the 9th outlet in the Keells Super Family.

Keells Super is one of the leading supermarket chains in Sri Lanka and is renowned for the widest range of quality products and value for money they offer to consumers with excellent service. In addition Super K Negombo is the biggest supermarket in Negombo, offering ample parking to its valued customers.

Power Protection equipment from EAP

Tripp Lite, a world leader in the manufacture of power protection equipment, has announced that its award-winning line of computer and electronic power protection products will now be available in Sri Lanka through EAP Technologies, a leading distributor of IT solutions there.

This new partnership will promote the distribution and sales of Tripp Lite products and will enable computer resel-lers to order Tripp Lite products locally through EAP Technologies. EAP Technologies was established in 1998 with the purpose of introducing new and improved hardware, software and communications solutions to Sri Lanka. It is a subsidiary of EAP Edirisinghe Group of Companies, one of the largest conglomerates in the country. EAP Technologies prides itself as an organization which provides innovative, high quality, integrated IT solutions while maintaining the highest level of customer loyalty. Supplying nearly half of all resellers in Sri Lanka, EAP Technologies is in a great position to introduce Tripp Lite power protection products to an upcoming, lucrative Sri Lankan market.

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