CEB to construct transmission line

ENERGIE Gmbh & Company KG of Biberach, Germany will provide Lanka Transformers the required tower designs under a Technical Co-operation agreement between them. 

Kukule Ganga Power Station is expected to be completed in year 2003. The power lines will be ready in advance for the connection, a Ceylon Electricity Board press release said. Lanka Transformers Ltd., has worked with international contractors, in the construction of transmission lines and grid substations. They recently established a state-of-the-art galvanizing plant at Sapugaskanda and a large steel fabrication plant with computer controlled precision equipment at Bandaragama in the Kalutara district. 

Mr. Arjun Deraniyagala, Chairman, CEB and Mr. Bjorn Edwardsen, Director Asia region of ENERGIE signed the contract at a simple ceremony held at the Headquarters of the CEB.

Millennium Motor Show 2000

As in previous years, the Ceylon Motor Trader's Association is teaming up with the Classic Car Club of Ceylon to present a breathtaking array of motor cars from vintage versions to the sleek lines of today's modern automobiles, a news release said. 

The membership of the Ceylon Motor Trader's Association comprises brand new franchise holders. The Association was founded in 1919 and is affiliated to the Ceylon Chamber of Commerce which is in existence in Sri Lanka for 161 years being the oldest Chamber. The Association has a representative in the Main Chamber Committee. 

Over this long period of 81 years the Association has been in the forefront of the development of the Motor Industry in Sri Lanka and has always acted in the National interest.

Helping put the glitter on this show are four of Sri Lanka's new lubricant brands BP, Mobil, Shell and Valvoline. 

These international giants are pooling their resources to make this years Millennium Motor Show 2000 an event to be long remembered, the release says.

Among the new car exhibitors at the show will be Sri Lanka's premier automobile companies; DIMO, Prestige, Car Mart, Car Plan, Brown & Co., IWS Holdings, Toyota Lanka, Stafford Motors, United Motors, Senok Automobiles, Sathosa Motors, Associated Motorways, Premier Automobiles, David Pieris Motor Co., Swedish Trading and Uni Walkers.

SriLankan Airlines introduces psychometric testing 

There are different types of psychological tests used in the personality assessment process that has been specifically designed to elicit behaviours and preferences that are appropriate to the work place. 

The P.A. Preference Inventory (PAPI) is a type of Psychometric testing that was first introduced by Dr. Max Martin Kostick in the United States in the early sixties. In 1966, the PA Consultancy Group of the United Kingdom acquired the rights to it outside the US, and worldwide in 1979. 

PAPI is now used by over 500 organizations worldwide, and PA Consultancy has 50 offices in 20 countries. It helps to assess the personality of individuals at management, professional and executive levels by exploring their preferred roles and needs and focuses solely on the personality at work. 

SriLankan Airlines is using pyschometric testing as a tool at the recruitment level, and is also looking at using it as a development tool for staff. 

SriLankan Airlines also uses different types of personality tests on the recruitment of cabin crew, technical crew and other categories of service related personnel. According to Ms. Menik Dias Amaratunga, Manager Human Resources of SriLankan Airlines, the second new recruitment tool, Assessment Centre Interview Techniques, is a procedure of behaviour and personality assessment based on a standard of behavioural indicators. Assessment Centre Interview Technique recognizes that emotional competence or "soft skills" is a vital component of the management philosophy of any organization, with academic abilities being largely irrelevant. The focus is on personal qualities such as leadership, innovation, creativeness, teamwork, empathy and adaptability. Identifying these qualities allows SriLankan Airlines to find star performers among equally qualified persons. Eighteen members of the airline's management and senior management group earlier participated in a workshop on how to conduct Assessment Centre Interviews, where an external trainer trained them on the techniques. 

The assessors observe candidates perform various activities and identify management potential through observations of behaviour. 

SriLankan Airlines has already begun using both Psychometric Testing and Assessment Centre Interview Techniques in the recruitment of new management.

SriLankan Airlines opens outstation office in Galle

Many customers book tickets through travelling agencies but have to collect the ticket from Colombo, Mr.Wickremasinghe said pointing out the need of a ticketing office in outstations. Galle was chosen taking into consideration the demand from the Middle Eastern workers in the South. 

Customers purchasing tickets from the new office during September will be entered into a raffle draw for three sets of return air tickets to fly to any destination served by the airline.

The office will be open till 5.00p.m.It will not include cargo handling which will be included if there is a demand. The airline which has expanded to around 35 destinations hopes to open its next ticketing office in Dambulla and Anuradhapura during the year Mr.Chandana De Silva, Manager Sri Lanka and Maldives said.

Cathay spreads its wings

All passengers will fly on a state-of-the-art Airbus A 330 aircraft to the airline's Super Hub in Hong Kong to make convenient connections out of Hong Kong to any one of the airline's 50 destinations worldwide, an airline release said.

They can enjoy personal TV's in both Business and Economy class and choose from a wide array of specially prepared meal options. A multi national crew including Sri Lankans will be on hand to deliver genuine Asian warmth in the skies.

James Finlay and Co., (Colombo) Limited are the General Sales Agents for Cathay Pacific Airways in Colombo.

HNB leads tier one capital strength 

HNB by virtue of being the 1365th strongest in the world becomes the strongest private sector commercial bank in Sri Lanka. The Commercial Bank of Ceylon has been ranked 1481st and the People's Bank as the 1644th strongest bank in the world. The Tier 1 capital of HNB of US $65 million as at 31st December is the largest amongst the private sector commercial banks in Sri Lanka, a bank release said. 

Hatton National Bank also has been featured in the top 10 banks in Asia that has shown an appreciable increase in its Tier 1 capital. In terms of the growth in Tier 1 capital, Hatton National Bank has shown a 46.96% growth in comparison to the Tier 1 capital as at 31st December 1998, largely due to the injection of new capital through the non-voting ordinary share issue in latter part of last year and its retained profits for the year. Hatton National Bank is the only Sri Lankan bank which has been featured in the top 10 in Asia, in terms of growth in Tier 1 capital, in the survey carried out by "The Banker".

New SAARC Women Entrepreneur Council 

The SWEC idea has been there ever since SAARC came into existence in 1986. However, things started shaping up only last year when the Federation of Chambers of Commerce & Industry Sri Lanka (FCCISL) of which WCIC is a member, mooted the concept and got it ratified at an Executive Committee meeting in Male early this year.

WCIC, a 125 member organization, started out in 1985 with the sole objective of promoting the special interests of the woman entrepreneur and incorporating them into the mainstream of business activity in the country. The membership comprises of women in business and management.

Three Coins Beer lead new trend

The company in a news release says its investment in a hi-tech canning plant, as part of a Rs 400 million modernisation programme has been the much-needed catalyst for the local beverage industry to take cognizance of a long felt consumer need for affordable canned drinks.

The two-piece, 330-ml. Three Coins cans are made of recyclable aluminium and retailed at less than half the price of their imported counterparts, the release adds. 

Consumers who wanted the convenience of canned beer were forced to buy imported brands at about Rs 90 - 100, because, having lacked the necessary incentives, the local brewers had been too parochial in their orientation to pay much attention to consumer needs - the inevitable outcome of a virtual monopolistic situation, the release says. 

The Group Brand Manager of Three Coins, Ramesh Nonis added: "There was a clear segment of the market that was asking for the utility of the cans, but the industry was dictating terms to the consumers, denying them of the technology that had been around for decades. But, the industry will now find it increasingly difficult to suppress the freedom of choice."

He said the obvious advantages of the cans — no deposit as in the case of bottles, easier to store and chill because they take up less space, no breakages, and easy disposability — are the key elements that make them attractive in terms of cost: value. Mr Nonis also pointed out that "with giants like Coca-Cola and Elephant House following us in taking the option of canned beverages for the local market seriously, a recycling plant may soon become viable for an investor."

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Money Market Update                              First Capital Ltd

The inter-bank call money market and the overnight repo market

Central Bank open market operations

From next week onwards the Central Bank will be calling for bids from the market for repos and reverse repos. The overnight repo and reverse repo rate will be decided by the market, based on their bids. There will not be any term reverse repos. 

The treasury bill auction.

Treasury bond auction

However, the cut-out limit was less than the previous week. In the absence of a clear view of the financing of widened budget deficit, investors are likely to be cautious. 

The secondary market activities witnessed a slight improvement as some investors who booked bonds at higher yield sold to the parties who missed, taking immediate capital gains. However, this activity was mostly restricted to two and three year bonds.

Foreign exchange - dollar spot movement

Ayurveda

Crying out for research 

By Chanakya Dissanayake

Ayurveda drugs are increasingly being tested as remedies for diabetes and certain types of cancer. However, unlike in the case of over the counter herbal medicines often used as dietary supplements, ayurveda remedies that are expected to be used as prescribed medicines need to be approved by the relevant drug authorities. In order to obtain the approval of a state agency such as FDA of USA, the effectiveness and the safety of the drug should be proved in a series of tests.

The main barrier is the high cost of establishing a R& D facility. Managing Director, Link Herbal Products, Dr. Devapriya Nugawela told The Sunday Times Business, the cost of establishing a modern R&D facility geared towards satisfing the international requirements, cannot be borne by either the private sector or the government alone. What we need is a research project jointly financed by both sectors. 

If we are successful in getting the approval for one of our ayurveda drugs, the potential forex earnings will be huge. Many multinationals are already spending millions of dollars on research on herbal medicines, because they know that the future market is for herbal medicine. He also added that the investment required will be in the range of $40 to $50 million. 

World demand for herbal products has been growing steadily at a rate of between 10% to 15% per annum. Sri Lanka has earned a reputation for high quality herbal products, which are now even being exported to India.

A leading ayurveda/ herbal product exporter speaking to the Sunday Times Business said that "the international demand for our Ayurveda and herbal products depend upon their quality. The quality is mainly determined by the quality of raw materials available to the producer. 

There is a urgent need for a Standard Raw Material Quality Maintaining Authority to independently verify the authenticity of raw materials supplied." Another very important aspect is that the description in the packaging should correspond with the actual ingredient content. For a example Sri Lanka does not have Rath Hadun, so we do not produce any products that require Rath Hadun, but some other manufacturers has been advertising their products containing this ingredient. These bogus products can kill the industry. The recent price inflation of herbs has also created difficulties for herbal medicine exporters. This is mainly due to the short supply arising out of a lack of properly planned herb cultivation in Sri Lanka. 

However some herbal medicine producers including Link Natural Products has entered into outgrower schemes with farmers in rural areas with the assistance of the Central Bank. The technical assistance and the know- how will be provided to the farmer and the cultivation will be done on a buy back agreement.

Dr. Nugawela also added the importance of practising proper advertising ethics in marketing herbal products. 

The distinction between herbal products and ayurveda medicines should be maintained. There is nothing called an ayurveda toothpaste, but if you are using herbs to manufacture it you can call it a Herbal toothpaste. The image and goodwill ayurveda carried for thousands of years should not be tarnished.

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