Untitled Document

Business

Get Sri Lankans abroad to help - Chamber
The Ceylon Chamber of Commerce has urged Prime Minister Ranil Wickremesinghe to establish a database of the Sri Lankan diaspora living overseas and also network with them in overseas countries through organised associations.

In a letter to the prime minister, the chamber said it believed the Sri Lankan diaspora living overseas could effectively be leveraged to support peace and economic reform initiatives of the government by encouraging them to exploit trade, investments and technology transfer opportunities.

"There are case studies of strategies adopted in other countries, which Sri Lanka can use as models to fully leverage economic diplomacy and the Sri Lankan Diaspora in adding value through the exploitation of trade, investments and technology transfers opportunities," it said.

The chamber recommended that an inter-ministerial group with representation by high level officials of connected ministries be set up to develop a strategy and action plans in such network partnerships.

TATA in Jaffna on IT mission
Tata Consultancy Services, India's big software services and consulting company, plans to launch information technology training in Jaffna in collaboration with local firms. It has appointed AIMS Computers International (Pvt) Limited (AIMS) as distributor for their software in the island, a company statement said.

AIMS has focused on Jaffna as a fast growing region for their software training and sales business and has teamed up with the Institute of Informatics Studies (IIS), Jaffna, which will be operating as the training and sales arm for AIMS in Jaffna. Kithsiri Manchanayakke Chairman and Managing Director of AIMS visited Jaffna recently along with T. Ramanan, Business Manager, Tata Consultancy Services, India.

"This is not only a business mission, this is a goodwill mission to build a strong relationship with our fellow Sri Lankans in Jaffna," said Manchanayakke who is also president of the Association for Computer Training Organisations. "This mission will enable us to identify the talents which will pave the way for job opportunities in Jaffna for young talented candidates," he said.

Prosecutors consider deal with Andersen
The embattled Arthur Andersen accountancy firm may be able to avoid a criminal conviction that could have sealed the firm's fate, US newspapers reported Thursday as the firm pressed ahead with internal reforms.

The Wall Street Journal reported that federal prosecutors might be willing to consider some kind of out-of-court settlement of obstruction of justice charges it filed against Andersen last month.

The Justice Department would insist on Andersen admitting that it accept "full responsibility," for "illegally" shredding documents relating to its former client, Enron Corporation, as part of any deal, the Journal said.

But the move would allow the Chicago-based accountancy firm to avoid a criminal conviction which would have effectively barred it from the auditing business by virtue of regulations that exclude firms with a criminal record signing off on corporate accounts."

The only thing that is absolute is that we can't accept a criminal plea," one Andersen partner told the Journal.

Separately, USA Today reported Thursday that Andersen lawyers had stepped up efforts to hammer out a deal, but said the two sides were stuck over an admission of wrongdoing by Andersen in a competing version of the behind-the-scenes negotiations.

Neither Andersen nor the Justice Department could be reached for comment on the reports. But one analyst noted that a deal could save Andersen's US unit from bankruptcy while offering federal prosecutors a face-saving resolution of the case.
"It would serve the Justice Department by demonstrating that it accomplished what it set out to do, namely: spotlight a problem and make sure it gets fixed," said Stephen Presser, professor of business law at the Kellogg School of Management, at Chicago's Northwestern University.

"It's not in anyone's interest to destroy a great American firm and reduce competition in the accounting business," he added.

Federal prosecutors, reportedly angered by Andersen's refusal to admit any misconduct in the case, have been aggressive in their pursuit of the case against the 89-year-old firm.

But the company, which has been brought to the verge of collapse by the steady drumbeat of client defections in the wake of its indictment, has softened its stance in recent days.

On Thursday, it announced it had reached an agreement to divest itself of its tax services division in line with a rescue plan drawn up by former Federal Reserve chairman Paul Volcker.

Most of Andersen's US tax partners and professionals will join rival accountancy firm Deloitte and Touche by April 30 this year under a memorandum-of-understanding signed by both firms, Andersen said in a statement.

The move was part of the "process of reforming and rebuilding Arthur Andersen, LLP as a firm focused on quality auditing," said Larry Gorrell, managing partner of Andersen US.

Allegations of conflicts of interest between the consulting and auditing arms of Andersen were at the core of the Enron debacle, with critics contending that Andersen used questionable accounting practices to hide losses at Enron in order to retain lucrative consulting contracts with its Houston-based client.

Enron filed for bankruptcy in December 2001 after it was forced to restate financial accounts reflecting millions of dollars in liabilities that it had previously hidden in off-the-book partnerships.

In his rescue plan, Volcker called for "aggressive" tax planning and advocacy services to be run separately from Andersen's auditing practice for purposes of transparency.

ABN Amro launches "Bancafe" to promote business
BANGALORE, India, (AFP) - The Indian arm of the Dutch banking group ABN Amro and the country's largest retailer of coffee, the Barista Coffee Company Ltd, announced on Thursday the launch of India's first cafe in a bank.

At the 'Bancafe' in the southern city of Bangalore customers can browse through investment options, conduct banking transactions over the Internet or view information about ABN Amro's products over a cup of coffee served by a Barista expresso bar.

"Consumer banking is becoming extremely competitive," said Romesh Sobti, executive vice-president and country representative of ABN Amro. "There is very little left in terms of technology. That has ceased to be the differentiator."

"The trend now is not to come into the bank. Customers are going to ATMs and using the Internet for bank transactions. The only way is to create another channel and invite them to come in," Sobti said.

Sobti said the Bancafe will be open every evening, even during public holidays, as surveys have shown most customers want to go to banks after office hours and carry out business at their own pace.

"To add value, we have an investment planner and partners who can even help customers to get the best deal on cars, insurance and even on finance for overseas holidays," Sobti said.

Indian team to explore investment opportunities in Indonesia
NEW DELHI, (AFP) - Indian Prime Minister Atal Behari Vajpayee has told Indonesian President Megawati Sukarnoputri that a top-level business delegation will soon visit Jakarta to explore investment opportunities, officials said on Thursday.
An Indian foreign ministry statement said Vajpayee also urged the need to strengthen bilateral cooperation in industry sectors such as telecommunications, power and ports development.

"In his meeting with President Megawati on Wednesday, Prime Minister Vajpayee expressed India's keen interest in participating in railway projects in Indonesia," it added.

President Megawati, who is on a five-day visit to India, said she was receptive to the idea of India developing rail projects in Indonesia.

The two countries signed an agreement on Wednesday under which New Delhi will build a railway line and port terminal worth 260 million dollars in the Indonesian province of South Sumatra.

Back to Business