Business News

Forex expert advises

Try the plain vanilla first

The Sri Lankan forex market should stick to plain vanilla types for short term currency hedging, a forex expert from Citibank London said last week.

This is because the put call option parity does not work well in a market with a depreciating currency, Vice President, Head of Sales, Citibank London Bernard Sinniah told a Forex Dealers Association gathering.

While the forward contract commonly used in the Sri Lanka market for foreign exchange transactions gives the customer full protection at a premium, it does not allow for a benefit on currency fluctuations, Sinniah pointed out.

For example if the dollar rupee spot rate is Rs. 80 and the customer books three months forward at Rs. 81.50 and the exchange rate climbs to Rs. 82 the customer pays only Rs. 81.50 for his dollars and he is protected against the exchange rate increase. But, if the dollar drops to Rs. 77 in three months the customer is locked in at 81.50

"While there is no transaction without a risk, there cannot be a proper market without hedging," Sinnah added. Beating the forward is difficult and we are breaking our heads about it," he said.

The sophisticated London market has developed an appetite for newer alternatives to the traditional call and collar options, he said. The most popular in the London market now is the participation option while the convertible forward and the forward enhancer are identified as exotic options, Sinniah added.

He urged forex dealers to consider basic derivatives to develop the domestic exchange market. "Banks should get together and offer derivatives to customer," he said. Derivatives are considered dangerous or a dirty word by some conservative banks. But top executives in banks should take the decision to offer derivatives as an insurance against currency risk."

At present most dealers use only the forward contract for exchange transactions without any options because from 1977 onwards, the rupee has been depreciating against the dollar at an average rate of 8% annually. In this scenario where there is no downward fluctuation (rupee appreciating against the dollar) a simple forward contract is all that is useful for the customer, the dealers said.

They also said that until the rupee gets a free float status against the US dollar, hedging options will not work. Recently the Central Bank in a surprise move relaxed the rupee trading band from 2% to 5% giving a floor of Rs.75.60 and a cap of Rs. 79.47 to the dollar. Dealers said that as long as the Central Bank continues to control the US dollar exchange rate a free market, in which hedging options work best, would not be created.

Even with the current constraints Sinniah said that customers should be looking at whether they are paying too much of a forward premium on their forward contracts. Now that there is a cap on the exchange rate the forward premium needs to be worked out, he said. Normally forward premiums are fixed on interest rate differentials, but in the miniscule Colombo market a large dollar transaction could make the market go haywire, dealers said.A large deal in the London market could be as high as US$ 2 billion, Sinniah said.

Last Friday the dollar dropped to Rs. 78.10, and exporters who were hoarding their dollars without encashing them to rupees have lost out. As predicted by head of Treasury Standard Chartered Bank and President Forex Dealers Association Mr. Mangala Boyagoda in our issue of August 6th, "This is the ideal time to develop forward markets and go into US dollar rupee swaps, to add further liquidity to the market".

Mind your business

After the polls

A new man has been put in charge of economic affairs and he wasted no time in making it clear he would do business his way. So, for starters he made it known that some heads would have to roll and that he would like to have his men in all the right places if he were to do a proper job. But his request for changes was put on hold. Wait until after the polls, the lady in charge has firmly told him...

Those in high places

Though the captains of industry were summoned to the first residence recently for the distribution of some awards, they were not a happy lot at the end of the meeting. Firstly, they were kept waiting before the chief guest arrived and then there were discreet suggestions that they contribute to the election effort. Of course, the feelers were out only for some; others were not sounded out because someone had identified them as supporters of the green camp- and they were pointedly ignored by the high and mighty...

Special offer

A cosmetics distributor is giving away a much sought after brand of cologne in a special offer of two-for-the price-of-one, but this bonanza is virtually out of stock. No, it is not that it has been sold out. It is just that some retailers have taken the distributor for a ride.The retailers themselves have 'bought' the special offer, removed it from the special gift pack and are selling the cologne at a hundred per cent profit!

Corporate buzz

PD Keells

John Keells Holdings (JKH) recently announced it would transfer its shares in PD Keells to Kelsey Holdings Ltd to facilitate a management buy out. All Glass Holdings of Singapore will also be transferring its 28 per cent stake in PD Keells to Kelsey Holdings. JKH is transferring its 28 per cent stake in the company at 10 cents per share.

All Glass Holdings is selling out at Rs. 4.25 per share. These disposal prices have been agreed on based on an undertaking by Kelsey Holdings to make minority shareholders an offer of Rs. 10 per share.

Commercial Leasing Ltd

Chemanex Ltd extended the period for which its mandatory offer to minority shareholders was valid,to 28th August. The offer which was due to close on 14 August had not been received by all its shareholders, the company explained. Chemanex which held 32.96 per cent of Commercial Leasing shares at the time of making the mandatory offer has increased its stake by a further 1.41 per cent. But 67 .04 per cent of shares have escaped the company's grasp thus far.

Sri Lanka goes international in diamonds

The Sri Lanka Diamond Manufacturers Association was admitted to the International Diamond Manufacturers Association (IDMA) as a full member at the recently concluded World Diamond Congress held in Antwerp, Belgium.

"With this milestone, we have been recognized by the International Diamond Community as a rapidly developing diamond cutting centre", President of Sri Lanka Diamond Manufacturers Association, Mr. Shabbir Sangani said in a news release.

IDMA is an international grouping of the world's diamond manufacturers and is a forum for dealing with issues that affect the industry at an international level. IDMA has 11 members including Belgium, China, Germany, India, Israel, Netherlands, Russia, South Africa, Thailand and the United States.

Sri Lanka became the 11th member in July 2000.

The benefits of belonging to this club are: Recognition as a global player in the diamond community; An international network through which members can maintain contact with key players in both the industry and trade wordwide; Since each country has one vote, Sri Lanka has an equal opportunity with other members in the decision making process of IDMA; Quick access to information on international diamond issues and guidance on how to react to various developments in the international trade and industry.

An example is the issue of "conflict diamonds" where certain African rebel groups are using diamonds as a source of funding. "This trade in conflict diamonds has received international attention over the past year. Although these diamonds are a small fraction of total world diamond production and trade, the continuation of this illegal trade has caused warfare and human suffering".

To stop this trade in conflict diamonds, the World Diamond Congress passed several joint resolutions with IDMA and the World Federation of Diamond Bourses pledging to adopt measures to eradicate this problem. "The Sri Lankan Diamond Community will lend its full support in this effort to stop the trade in conflict diamonds," Mr. Sangani said in the release.

An International Diamond Council was set up at the Congress to help track the world trade in diamonds from the mines to polished diamonds to ensure conflict diamonds are excluded from the trade pipeline, he said.

The Congress was attended by nine delegates from Sri Lanka, including Mr. Sangani, Ms. Cecile Kotelawala, from Blue Diamonds Ltd., Mr. Nigel Austin of Nisol Diamonds (Pvt) Ltd., Mr Saliya De Saram from Colandium (Pvt) Ltd., Mr. Sunil Siriwardana of Sunil Diamonds (Pvt.) Ltd., Mr Harshana Mahipala of Ben Lanka Diamonds (Pvt) Ltd., and Ms. Chitranganie Mubarak of the Sri Lanka Export Development Board.

"The Sri Lanka Export Development Board has been associated with the Diamond Manufacturers Association since its inception and it is personally rewarding to see the association become a fully fledged member of the International Diamond Community," Ms. Mubarak, Deputy Director of Product Development at the Sri Lanka Export Development Board said.

Funding for the participating at the World Diamond Congress came partially from a programme funded by USAID's Technological Initiative for the Private Sector (TIPS).

The World Diamond Congress is a bi-annual meeting of Diamond manufacturers and dealers worldwide, bringing together both the members of the World Federation of Diamond Bourses and the International Diamond Manufacturers Association.

At the first meeting of the WFDB, which was held in Antwerp in July 1947, it was decided to develop a worldwide network of diamond clubs, where delegates from affiliated bourses meet to discuss issues facing the industry. Diamond dealers have a long tradition of Co-operating with one another (within the framework of the Bourse), although they daily compete with one another (both on their domestic and on the global markets).

MARKET REPORT

Index down, turnover dwindles

The All Share Price index (ASPI) breached the psychological 500 barrier on Wednesday to close at 497.96. Turnover dwindled to meager levels as the week ended with parliament being dissolved. Foreign participation was insignificant with net foreign out flows of Rs. 4.1 mn.

The ASPI fell 2.04 per cent to close at 495.4 while the Milanka Price Index dropped 2.95 per cent to register 804.6. The MBSL Midcap Index slid 0.89 per cent to close at 884.3. Average turnover during the week was Rs. 19.1 mn.

"Now that the polls have been announced we expect activity early next week but this will not be sustained," Head of Research, CDIC Sassoon Cumberbatch, Diluk Desinghe, said. He was referring to the announcement of the election date-10 October. "The bourse will become active a week or two before elections," he predicted.

"There will be thin trading in the week ahead. With interest rates rising investor focus will be on fixed income investment and the stock market will play a secondary role," Director, John Keells Stock Brokers, Nandakumar Nair said.

"Speculation on the outcome of the election could lead to retail driven market rallies in the lead upto the polls," Head of Research, Asia securities, Dushyanth Wijaysingha said.

Full scholarship to Lanka student

The renowned Adelaide University in South Australia has offered a full scholarship to the promising Sri Lankan student Mahendraraja Piraveenan. The 19-year-old from the strife-torn northern province left the island recently to pursue higher studies in computer systems engineering.

A student of Mahajana College and Union College in Tellippalai, Piraveenan had to face many difficulties during his school days. He had to study under a bottle lamp as the area lacked electricity. Furthermore, the confrontations between the armed forces and Tamil militants affected him psychologically. He couldn't even attend tuition classes, as he would have had to pass a sentry point in an area that was mined and at risk from LTTE attacks. But sheer perseverance got him through.

Piraveenan was placed first in the north-eastern province at the year 5 scholarship exam, first in Jaffna district at the O/Ls (obtaining 8 Distinctions) and was among the top performers all island at the A/Ls (obtaining 4 As for Physics, Chemistry, Pure Maths and Applied Maths).

He has also engaged in extra curricular activities with noteworthy success. A good chess player, he has written Tamil short stories and poems, and won a top prize for drama script writing. In fact, he was awarded 15 gold medals in literary pursuits and general knowledge contests.

Office Bearers 2000/2001

Sri Lanka-Indonesia Business Council

President,Mr. N. Goonaratne, Tea Director, Lipton Ceylon Ltd.

Vice president, Mr. S. Amerasinghe, Managing Director, CarMart (Pvt)Ltd,

Vice President, Mr. Patrick Rodrigo, Assistant General Manager, Walker & Sons Ltd.

Committee

Douglas & Sons Ltd, Mr. J. Pinidiyapathirage, Expolanka Limited, Mr. Z. Alif, Modern Packaging Industries (Pvt) Ltd,Mr. Bala Thambimuthu, Nawala Cushion Works Ltd,Mr. D. Wijesinghe, Someswaran Jayawickrema & Co Ltd, Ms. Maryam Marikkar, Tropical Fish Lanka (Pvt) Ltd,Mr. G. Gunawardhana

Money Market Update

First Capital - Money Marker

The Inter-Bank Call money market and the Overnight Repo market

During the short week ended 17th August, the inter-bank call money rate escalated, renewing pressure on the inter-bank money market. We estimate, the liquidity short fall to be in the range of Rs.8~9Bn. Throughout the week, the call money rate kept close to the reverse repo rate of the Central Bank. During the week the call money rate fluctuated within a narrow range between 15.50% and 14.75%. The weekly call money average rose up by 119 basis points to close at 15.06%.

Central Bank Open Market Operations

For the third consecutive week, the Central Bank overnight repo rate and the reverse repo rate remained unchanged at 11% and 15% respectively. As the demand for money in the market, was much in excess of supply, the market players reached the Central Bank to fill the gap. The reverse repo window was very active throughout the week as it released Rs. 20.5bn averaging approximately Rs. 5 Bn a day. Given the lack of excess liquidity in the market, the repo widow of the Central Bank kept virtually dormant.

The Treasury Bill Auction.

During the week, Rs. 3.77Bn worth of treasury bills were matured. The Government of Sri Lanka retired Rs. 750Mn worth of bills, which were issued for 14 days in the special bill auction held early this month. Further, the Central Bank reserved and bought Rs. 1000Mn of bills, mostly with the intension of holding the rising treasury bill yields and help improving the much needed liquidity. However, as most of the bids were not within the acceptable region, the Central Bank further intervened for Rs. 456Mn. Nevertheless, the rising momentum in bill yields continued.

Treasury Bond Auction

In the bond auction held during the week, Rs. 1.75Bn worth of 3-year bonds were offered. The 3-year bond yield witnessed a sharp increase, as the investors bided high. Renewed government borrowing limits approved by the Parliament on Wednesday and the much widened budget deficit disturbed the investor sentiments. With the changes in the yield curve, some secondary market activities were observed in the 2-3 year maturities, while the long bonds remained inactive.

Foreign Exchange - Dollar Spot Movement

The Central Bank dollar/rupee trading band remained unchanged, buying at Rs. 75.60 and selling at Rs. 79.47. Along with the prolonged comparatively high short-term interest rates and the very conservative trading by the commercial banks, weakened the buying interest of dollars.

During the week the rupee gained against the dollar. The spot started at Rs. 78.40/78.48 closed at Rs. 78.30/78.34. Three months forward was quoted at Rs. 79.90 to Rs. 80.00, while six months was at Rs.81.30 to Rs. 81.45.

Maturity 01-08-02 01-06-03

Coupon 10.75% 11.00%

Amount offered

Rs. Mn 2000 1000

Amount

Accepted Rs. Mn 1410 750

Weighted

average 13.86 13.94

Change 0.17 0.01

65 booths at Facets 2000 in September

By Udeshika Dissanayake

'Gate 2000' a sculpture made of silver, gold and platinum decorated with 2000 coloured gemstones will be on display in Colombo in September.

The sculpture which was unveiled at the ICA Congress in May 99 at Abano, Italy will be a salient feature at FACETS 2000, the 10th International Gem and Jewellery show to be held in the country.

The show will have on display Sri Lanka's best colours of sapphires from calibrated to fine single stones. The year's theme is mainly on natural sapphires especially padparadscha which bears a colour relating to the Lotus flower.

The exhibition consisting of 65 booths will include local as well as foreign exhibitors from Japan, Hong Kong, Australia and India.Visitors are expected from countries including USA, Germany, France, Sweden, Switzerland, Italy, and Nepal.

The prime objective of FACETS is to promote Sri Lanka as a buying centre for gem and jewellery, as many dealers outside the world are not aware that Sri Lanka is a source country for some of the finest gems in the world, Mr.Mochi Asham, Chairman FACETS said at a press briefing recently.He said Sri Lanka produces 50 varieties of gemstones which is one third of the gemstones produced in the world.

A spokesman for the organising committee also pointed out that the exhibition enables traders to gain experience to participate successfully while it also selects the best booth holder.

FACETS 2000 will be held from September 11-13th at Hilton Colombo and will be declared open by Joseph M.Menzie, Vice President, International Colour Gemstones Association .

The Show is organised by Sri Lanka Gem Traders Association along with other related trade associations, and sponsored by the National Gem and Jewellery Authority and the Sri Lanka Export Development Board.

Appointment

Mayura joins Confifi

Mr. Mayura Fernando has joined the Confifi Group as their Finance Director (Designate) with effect from 15th August, 2000.

Mr. Mayura Fernando has had over 20 years experience in the financial sector. He is a Graduate of the University of Sri Jayewardenapura with a B.Sc. Degree in Physical Science.

He is a double qualified Accountant, being a member of both the Institute of Chartered Accountants (ICA) and the Chartered Institute of Management Accountants (CIMA).

Sri Lanka Institute of Credit Management incorporated

The Sri Lanka Institute of Credit Management, which was established in 1988 under the Companies Act No. 17 of 1988 has now been incorporated under an Act of Parliament.

The Act referred to as the "Sri Lanka Institute of Credit Management (Incorporation) Act No. 7 of 2000" was certified by the Speaker on 27th March 2000.

The Institute which has been training management personnel for the past 12 years conducts a one year Diploma Course in Credit Management on completion of which, the successful candidates are admitted as Associate Members and are entitled to use the letters A.I.C.M. after their names.

The course itself is divided into two modules and covers subjects such as Credit Management, Business Environment, Accountancy and Finance and Business Law. The Institute which is housed at No. 154, Havelock Road, Colombo 5 has its own in-house Lecture hall, a news release said.

The students who follow this Diploma Course range from school leavers to graduates, professionally qualified accountants and bankers and those who are currently employed in the field of credit management.

The resource personnel consists of academics and those with years of practical experience in the field of finance and are now holding very senior positions in various financial organizations.

The Institute of Credit Management (England) has recognized this local diploma course and has granted exemptions from the intermediate stage of the examination conducted by the ICM (England).

At present, there are 102 associate members who have successfully completed the diploma course and passed its examinations and obtained associateship. This qualification has been recognized by banks, finance companies and other commercial establishments for promotions and employment.

In addition to running the Diploma Course, the Institute also conducts periodical seminars on current topics in the field of finance and credit management both in Colombo and Kandy.

The Institute which consists of 12 Council Members has as its Patron, Deshamanya Lalith Kotelawala, Chairman, Ceylinco Group of Companies. The Institute is administered by an Executive Committee comprising of Mr. Pratapkumar de Silva (The President) who is the Chairman of Alliance Group of Companies, Mr. Walter Ediriweera (Vice President) who is the Deputy Chairman, Arpico Finance Co. Ltd. Mrs, Chandani Gunewardene (Treasurer) who is a Director of the Finance Co. Ltd. and Mr. Lyle D Peiris (Council Member) who is the Managing Director, Delmege Financial Services Ltd. Mr. B H Premaratna functions as the Registrar of the Institute.

Hostile takeover attempt of Sampath Bank.

Sampath Union asks CB to hurry up

We draw your attention to the much publicized hostile take over attempt by Stassen Group/HNB of the Sampath bank, which is a grave concern not only to employees of Sampath Bank, but also to the share holders and customers of both banks and the general public of this country.

We have, with regret and amazement noted that inspite of all its early warning and supervision mechanisms, the Central Bank has failed to take corrective action at the developing stages of this issue which has now become a serious national issue. We are at a loss to understand why the Central Bank is still dragging its feet in coming to a conclusion as to the legality of the action by HNB/Stassen Group in acquiring the Sampath Bank shares.

However, as the only regulatory body for banking in this country, we still look upon Central Bank to take control of the situation in order to ensure that the law as well as fair play is maintained in the local banking arena.

Hence we wish to reiterate the fact that the whole country is awaiting your judgment on this matter and call upon you to announce your decision at your earliest, and clear any misconceptions which may have resulted by the questionable delay in doing so.

We also would like to state, that should this suspicious delay continue, we would be regretfully compelled to take alternative action to bring this matter to the attention of the general public, relevant authorities and bodies in this country as well as in the region.

-President Sampath Bank Employees' Association, Secretary Sampath Bank Employees' Association.

BOC authorized capital increased

Two amendments were introduced to the Bank of Ceylon Ordinance in Parliament last week concerning issued share capital and recovery laws. Bank of Ceylon is the largest Sri Lankan bank which is unlisted and fully state owned. Authorized capital was increased from Rs. 1bn. to Rs. 50bn. The initial share capital of Rs. lbn. composed of I million shares of Rs. 1,000 each, under the new structure 50 million shares of Rs. 1,000 each are permitted a Jardine Fleming Securities Ltd. report says. The government restructuring programme of 1993, assigned Rs. 1,600mn as share capital pending allotment, due to the constrains on authorized capital. This allocation translated into an immediate increase of share capital to Rs. 2.6bn. or 2.6mn. share and a reduction of BVPS to Rs. 3,981 from Rs. 10,351. If the new shares were fully allotted, the BVPS would reduce further to Rs. 207.

In the second amendment the provision for parate execution was strengthened by allowing the board of the bank to authorize a person to take possession of any immovable property mortgaged to the bank as security for any loan, overdraft advance or other accommodation in respect of which the advance has been made. This would allow a faster recovery from defaulters, which is crucial given Bank of Ceylon's high proportion of non-performing loans.

SriLankan Airlines add value to UK and continent flights

SriLankan Airlines has launched several value-added services on its flights to the three European cities of London, Paris and Frankfurt. The special packages on offer range from a free rail transfer on London's Heathrow Express with city-centre check-in, a free limousine escort, to the Eurostar service and the "Rail& Fly/Fly & Rail" offer from German Railways, an airline release said.

With the addition of two more frequencies to London via Dubai on 1st July 2000, there are now a total of 9 weekly flights to London's Heathrow Airport. The SriLankan Airlines special Heathrow Express offer will be good news for businessmen and holidaymakers on the non-stop weekday flights from Colombo and London. All passengers buying return tickets from Colombo to London on weekday flights, will be entitled to a free return rail transfer from Heathrow Airport to Paddington station in Central London . Further travellers are assured of an even more smoother return journey, with the facility of check-in at Paddington station in London and a 20 minute ride to the airport on the Heathrow Express. This means that a passenger may check-in his/her luggage at any time upto three hours before departure, which gives plenty of time for leisure, shopping and sight-seeing in London, before boarding the Heathrow Express (which leaves every 15 minutes) at Paddington to their SriLankan flight to Colombo.

SriLankan Airlines offers its passengers purchasing a one-way or return ticket to London on full business class fare the benefit of a free limousine service to any location within a 50-mile radius of Heathrow Airport. A request for this service should be made 48 hours prior to departure. Whether it's from London Waterloo to Paris' Gare du Nord or Disneyland Paris or even Brussels, SriLankan offers passengers an opportunity to travel on Eurostar, the U.K's high speed international passenger train, absolutely free, when they buy a one-way or return ticket to London or Paris. Eurostar offers a two class service - First and Standard.

The Rail & Fly/Fly & Rail facility on German Rail is offered free of charge to SriLankan's passengers who hold a one-way or return ticket to Frankfurt. Whether a traveller is coming to or leaving Germany, the 'Deutsche-Bahn' trains connect to 7000 German railway stations from the mainline station in Frankfurt. A noteworthy feature is that the train tickets which are valid for a period of 2 days each for the outward and return, entitles the holder to unlimited stopovers en-route to the destination, within the validity period. SriLankan participates in this scheme along with over 80 other international airlines. Currently SriLankan Airlines operates four-weekly flights to Frankfurt with operations to Berlin due to commence in October 2000.

APIIT Lanka concludes successful Java training programmes

APIIT Lanka recently concluded two programmes on Java for the Corporate Sector, a company release said.

There is a great demand all over the world from organizations in the software business for IT personnel with knowledge of Java and Sri Lanka is no exception.

This language, which unlike other languages, can be run on any platform, such as windows, NT, UNIX and Apple Macintosh has become the favoured language for programming Internet based applications. Formost among these applications is the revolutionary technology related to e-commerce, which many experts say will determine how to buy and sell in future.

APIIT Lanka offers the Corporate Sector a suite of High Quality Training programmes in Information Technology, for which there is a strong demand and has been fortunate to contract the services of Mr. Haja Mohideen, to conduct a series of programmes on Java for the Corporate Sector.

Mr. Haja Mohideen is a Senior Corporate Consultant at APIIT Malaysia. He is an extremely respected professional in Singapore, Malaysia and in the South Asia region, on account of his excellent knowledge and presentation skills.

Within a short span of time he has earned an enviable reputation in Sri Lanka not merely from participants who have attended his programmes, but also from many others who are in the field of Information Technology in this country.

Haja Mohideen counts over 10 years experience in developing support systems in the field of IT education and has managed programmes in the development of PC software, and hardware in the context of networked computing environment. A Microsoft Certified Systems Engineer, who has specialized in Microsoft Advanced Back office system integration, Haja is presently leading a team to develop Java and Windows NT client server applications and to develop the courseware for a comprehensive Corporate Training module for e-commerce.

NIIT opens education centre

NIIT, a computer training and software major, in co-operation with MMBL CyberSkills (Pvt) Ltd., has launched a world class IT education and training centre at 467, Union Place, Colombo 2.

The new Institute of Information Technology will use the revolutionary e-technology curriculum from NIIT to offer World-Class education and training, a news release said.

The new education centre at Union Place would be another milestone in NIIT's efforts in globalizing its education and training services. Through its on-going computer education and software development activities in over 26 countries including USA, Japan, UK, Singapore, Malaysia and Indonesia, NIIT has already created a computer training and software development expertise in the international arena.

The education centre will offer NllT's latest e-technology curriculum. The students will be trained on a variety of environments including Windows, NT, LINUX and on an equally wide variety of hardware platforms. Industry standard application suites will be an integral part of the curriculum.

Students will also be trained in two of the most sought after skills in the computer industry: object oriented programming, which is covered extensively using Visual Basic, and programming with Java, the programming environment for the Internet.

The courses, which have been indigenously developed by NIIT's Instructional Research and Development team, are ISO 9001 certified.

The programmes are designed to build requisite computing skills for today's IT industry. The programmes also prepare them for the emerging technologies of tomorrow.

In addition, the Institute would also address itself to the needs of training endures and self-employed professionals to enable them to carry out their work more effectively and productively while using computers.

The education centre will also provide custom-built training programmes to corporate executives. NIIT's training programmes have been delivered to global clients like Merill Lynch, Singapore International Airlines, Telecom Asia, Telekom Malaysia and Bank of Thailand.

The education centre, equipped with the latest software and hardware, will have over 100 computers. The computers will be networked using LINUX and Windows NT operating systems.

One of the unique facilities will be the concept of Professional Practice. Pioneered by NIIT, Professional Practice leads to successful integration of theory and practice. In the final year of the GNIIT programme, students are sent to reputed organizations to gain a year's useful work experience.

The development of the curriculum and delivery of the programmes have been enriched by NIIT's vast global experience in software development, for clients like Sun Microsystems, Sony and the World Bank.

Inflight Email from Cathay and Tenzing

Cathay Pacific Airways and global Internet Service Provider Tenzing Communications have agreed upon a firm schedule for Cathay Pacific to become the first airline in the world to offer passengers inflight email and Intranet services across its entire fleet. The new service is targeted to begin operation in the second quarter of 2001, an airline release said.

Tenzing will provide Cathay Pacific with a suite of services targeted towards the frequent business traveller including inflight transmission and receipt of email and attachments, an inflight Intranet providing select "Best of the Web" surfing and e-commerce.

To support the Tenzing technology, Cathay Pacific will install an inseat data system and an inseat power system in its aircraft starting in 2001.

U.S. wheat for Lanka

The United States and Sri Lanka today signed an agreement by which the U.S.will make available US$ 5 million this year in very low-interest loans to allow Sri Lanka to import approximately 40,000 metric tons of high-quality U.S. wheat. In a brief ceremony U.S. Ambassador Shaun E. Donnelly and Finance Secretary P.B. Jayasundera signed the formal agreement that had been negotiated over the preceding weeks.

Under the programme, known as "Public Law 480, Title I", the Commodity Credit Corporation of the U.S. Department of Agriculture agreed to finance US$ 5 million in wheat sales to Sri Lanka during the current fiscal year. The wheat provided under this agreement or the funds generated by the sale of this wheat can be used, according to the terms of the agreement, "to improve food security, alleviate poverty, and promote broad based equitable and sustainable agriculture in Sri Lankam, including measures to foster the growth forage, feed and livestock industries."

CITI group ranked first

CITIgroup has been ranked the number one corporation in the world's super 50, by the Forbes magazine for the year 2000, based on a composite ranking of sales, assets, profits and market value. This year Citigroup surpassed General Electric for the top spot, a place GE had held since it overtook Royal Dutch shell in 1998. Citigroup is represented in Sri Lanka by Citibank N.A.A. branch of the global banking giant

Odel introduces Trussardi footwear for men

Odel Unlimited, renowned for setting fashion trends and bringing international brands to Sri Lanka, now offers Trussardi footwear for men.

Earlier this year, Odel introduced Calvin Klein shoes for ladies and Kenzo footwear for men to Sri Lanka as part of their continued effort to offer international brands locally at affordable prices. The addition of Trussardi footwear will complement Odel's wide range of quality clothes and accessories.

Trussardi stands for elegance and aesthetic idea, which becomes the intermediary of a 'Made in Italy,' culture, which is set in an international dimension. Refinement and precision of manufacturing: from cutting to the finishing touches, from the careful selections of materials to how they are used characterises Trussardi's footwear collection for men.

Sobriety and naturalness applied both to the material and the form, express the character of the Trussardi style, a style the American press has dubbed 'the modern sensuality'.

Nicola Trussardi's relationship with fashion is a celebration of versatility and eclecticism. Today the word 'style', probably more efficiently and precisely applies to what is 360º aesthetic philosophy, a taste for design, an innovative ability and a faith in creativity applied to manufacturing.

Trussardi has been credited for discovering classical shapes for all clothes and accessories and for redefining and updating aesthetics of a modern luxury, where technology never has a singular purpose, but is always serving multiple functions.

For Trussardi, its source of inspiration is drawn from the Italian value of tradition, and it redefines itself according to current events and future standards.

Caltex wins National Environment Award

Caltex Lubricants Lanka Limited (CLLL) is the proud winner of the National Environment Award for the year 2000. CLLL was placed first in the competition organised by the National Environment Committee of the Ministry of Forestry and Environment to select the best ten private companies for their sponsorship on the wild life and environment conservation.

The company carried out a national awareness campaign at grassroot level, the main objective of which was to educate people on how to minimise harmful acts on the environment. The project commenced in January covering areas such as Kurunegala, Kandy and Nuwara Eliya extending to Anuradhapura, Polonnaruwa and areas in Colombo and the outstations.

Caltex products are now manufactured using the latest technology that minimises fuel consumption and reduces pollution. The main driver behind the development of the recently launched Caltex Havoline Energy was to reduce carbon dioxide emissions, and to assist in the battle against global warming.

CLLL is also the first to provide customers with service such as LAMP (lubricant analysis and maintenance programme) which monitors the operational efficiency of machinery to extend oil drain intervals with laboratory analysis of oil samples.

The award was received by the organisation's Managing Director, Shahid Ahmed at a ceremony held at the CLLL Marketing Office, recently.

HSBC gets Best All Round Performance award from VISA

HSBC was presented with an award for the best Visa bank for the year 1999 recently. The award was presented by Visa International for All Round Performance. Commenting on the success, Manager Card Centre said that it was a reward for the hard work that had gone into developing credit cards in Sri Lanka.

HSBC is one of the largest financial services organisations in the world, with 5,000 offices in 80 countries and territories.

Here in Sri Lanka, HSBC succeeded in becoming the market leader as far as credit cards go. Until 1997, HSBC held the fourth position in the market as the credit card was then pitched at an up market business traveller who was already aware of its benefits.

HSBC re-launched its credit cards in November 1998 with the very popular credit card education and advertising campaign, which placed emphasis on the fact that potential customers did not have to have an account at HSBC to hold an HSBC credit card.

The number of cards in the customer base grew rapidly by the end of 1998, and HSBC assumed the position of market leader in a few months — a position it holds to date, with a market share estimated at approximately 40 per cent.

The credit card base has now shot up to over 65,000 with the added benefits given to HSBC credit card holders in the form of discounts on a range of items and activities.

The ongoing Prize Circle promotion has also attracted a great many customers as it provides an opportunity for existing HSBC credit card holders to introduce new customers and win fabulous prizes for themselves which include an anti-spill travelling mug given for introducing one friend, to a portable barbecue set given for introducing 15.

It is for this reason that Visa International has recognised HSBC as the best Visa bank, awarding it the Best All Round Performance award, given in recognition of contributing significantly to the development of the credit card in Sri Lanka.

SMB makes the right moves

Seylan Merchant Bank has made a dramatic turnaround with their second quarter profits which have shown a tremendous growth in all areas. The growth of the bank's total portfolio registered an increase of 65 per cent with a net interest margin growth of 310 per cent.

Other notable achievements include an increase in share prices by 100 per cent and a turnover growth of 41 per cent. Seylan Merchant Bank has also provided three million for the short term trading portfolio.

The bank's reported profit of Rupees 356,187 for the first and second quarter this year has compared favourably with the loss of Rupees 10,878,276 recorded for the same period of 1999. The bank's consolidated profits reported for the first two quarters of the year 2000 is Rupees 712,029 compared to the loss of Rupees 11,033,178 for the same period last year.

Keeping abreast of the prominent progress that the bank has made, the bank's headquarters too will move to a new, prestigious location at the Landmark building in Colombo 3, while customers may also look forward to two new branches. A fully-fledged branch will open on September 18 in Nugegoda, and a Seylan Merchant Centre will be established in Panadura in the near future.

With Seylan Merchant Bank's statistics showing incredible progress with profits ending at the second quarter, the management and board of directors have no doubt that Seylan Merchant Bank will record a solid financial performance in merchant banking while making a significant contribution to society.

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