Sri Lanka ready to incubate dotcoms

By Akhry Ameer 

An IT incubator primarily grows entrepreneurial ideas and concepts into companies. 

The idea developed in the US with sudden failures of Internet start-ups after a very sharp rise to fame. Normally start-ups sell their concept to a larger company or list their IPO in a techno-savvy stock exchange like NASDAQ, Nikkei, CAT 40 to attract capital. On the other hand the incubator protects the business in its early days and provides the start-ups with full office support, business, marketing, legal and technology counselling, as most of them have only the concept and do not have all these capabilities to survive. 

Sri Lanka Technology Incubators (SLTI) (Pvt) Ltd. set up its first incubator at the Bank of Ceylon Merchant Tower in August this year. Operating under the brand name and web-site Conceptnursery.com it helps new dot com companies evolve from scratch to maturity. 

SLTI is the result of a partnership of Sri Lanka Institute of Information Technology (SLIIT), Media Solutions, Prudential Holdings and Peoples Venture Investment Company (PVIC). The partners hold strength in providing the incubator with the necessary data entry and R&D facilities, technological expertise, management background and venture capital.

They offer both resident and affiliate incubatee programmes for new companies. A typical resident incubatee is provided with fully furnished office infrastructure, phone lines, a high-speed internet connection, secretarial services such as access to faxes, photocopies, telephone call management and product launches. Besides this, they are also provided with access to HR for purposes of data entry, etc. by way of students from SLIIT, a pool of experts in all areas and international promoters through contacts of the parent companies and SLTI's alliances with other overseas incubators. The incubatees have to pay an all-inclusive fee of Rs. 20,000/- for all of the services. The affiliates are provided with similar temporary site facilities and access to resources on an annual membership.

The aspect of financing is handled by PVIC and Concept nursery itself. The prospective incubatees are assessed and provided with venture capital in the form of an equity stake in the project or the incubatee-company. The venture capital is determined based on the project and the return on equity while identifying an exit strategy.

SLTI further promotes a right environment for entrepreneurship, helps in the development of business plans, legal services such as patents, hosting of incubatee sites with facilities like firewall, security and administration. Upon successful maturity SLTI helps the incubatee establish a postal address and test market the product in the designated country and train them on its trade policies.

Currently four projects are under incubation of its total capacity of 12 with nine more applications under consideration. The projects are judged on the quality of business plans, team skills, background and commitment of the team. 

Some of the projects being incubated are an e-learning portal, a cyber mall for the local and Indian market, an online cricket magazine and a wear-and-see spectacle frame purchasing site which has already attracted overseas orders before hatching.

To further strengthen this concept SLTI is in the process of negotiating franchised operations at the Moratuwa University Design Center, the Peradeniya University Computer Center and the ICT. It is also conducting presentations at private universities and other institutions like the John Keells Institute, NIIT and IICS.

ISO is not so easy

Jewelknit Ltd became the first garment manufacturer in the MAST group to obtain the ISO 9002 last week. It was able to implement the 18 requirements specified to the garment industry and the preparations of manuals in a record time of six months. 

"A government sponsored financing scheme to assist small garment manufactures in obtaining ISO 9002 will be helpful," the CEO of Jewelknit Ltd, Nimal Mello, suggested.

He said ISO 9002 has become a vital marketing tool for the high-end Western markets. Jewelknit is exclusively catering to the brand names like, Marks and Spencer, Victoria's Secret and Calvin Klein. 

Speaking about the post quota era, Mello said, "Small manufacturers may find it difficult to survive, but on the contrary their low overheads can give them an edge. 

The leading brands have lots of confidence in Sri Lanka when placing difficult orders". On future avenues for growth, he said; " If Sri Lanka could expand it's designing capability to the Western fashion by opening design offices, it will be the way forward."

Sri Lanka to chair shipping group

By Akhry Ameer

The meeting to pass the resolution is to be held on 22nd January 2001 in Karachi. The current chairman of the SLSC Mr. Rohan Masakorale would be nominated as the new chairman of ASCOBIPS. 

An important proposition lined up for discussion at the meeting is the resolution to convert ASCOBIPS into a SAARC Shipppers Council. This however would need the co-operation of the other SAARC members - Nepal, Bhutan, Maldives that do not have sea front port accessibility, but whose participation would be necessary.

Other regional issues such as Terminal Handling Charges and Freight increases are also to be disccused at this meeting. The THC recently received local news attention over its proposed increase effective January 2001.

The SLSC chairman Mr. Masakorale said that he hopes to have a meeting of the member associations towards the end of next year once Sri Lanka takes over the chairmanship. The association has been active in a lesser capacity due to low participation by India, which happens to be the largest member in terms of trade volume, ports, etc. Being a neutral party Sri Lanka's taking over of chairmanship is seen as a good sign to revive the association.

The SLSC is one of the oldest and experienced associations established in 1996. Representing almost 95% of the Sri Lankan shippers, the association has requested the government shipping related ministries to hold talks with the other ministries in the region towards protecting national interests. 

Millennium City in gem city

Under the township promotion programme of Ceylinco Developers Limited, Ratnapura was selected as the first regional city to hold this promotion, it said.

The release said: The core objective behind Township Promotion Programme was to inform the public in major towns about the eco-friendly township concept and how Ceylinco Developers Ltd., have successfully introduced it to the local market. 

The significance of this sales promotion is that the Millennium City marketing team meets the regional customers at the doorstep and provides them the opportunity to be informed about it in a more personalised manner.

The company's Assistant General Manager Marking, Ms. Preethi Gunaratne stated that the sales promotion in Ratnapura had generated a mammoth interest among the public to experience the difference of living in a truly satisfying environment. Specially most businessmen expressed their interest in the single and double storied detached houses of Millennium City which would enable them to have a permanent place to stay close to Colombo and carryout their business with convenience.

Millennium City, Athurugiriya was developed to promote 21st century life style, which is signified by security, convenience, togetherness and the eco-friendly ways of living. 

All houses are detached and built on a natural land and they were tastefully designed by a team of renowned local and foreign architects according to internatinal standards.

SriLankan to Jakarta

The airline's Monday and Wednesday flights to Singapore and Jakarta and return from Jakarta on the same day, although the return flights from Singapore will depart on Tuesdays and Thursdays, a company release says.

At present SriLankan Airlines shares Emirates' twice-weekly services from Colombo to Jakarta via Singapore, every Tuesday and Thursday. With the launch of SriLankan's services, the airline will offer customers Jakarta four times each week.

SriLankan Airlines will also have the right to transport passengers between Singapore and Jakarta, on this route.

Emirates raises funds to build orphanage 

The airline undertook to raise funds to build the infirmary at the request of the home, which cares for 380 orphans, most of them from the eastern province. 

The infirmary was a long-felt need at the home, whose residents range from infants of a few months to 18-year-olds. 

Emirates Colombo undertook the project as part of its annual awards function, at which the top ten passenger and cargo agents who contributed to the airline's growth are honoured. The foundation stone for the infirmary was laid just hours before the awards ceremony, and travel and cargo agents were also invited to support the orphanage in whatever way they could. Internationally, Emirates supports many charitable causes. The airline has also built a modern orphanage in Thailand though its "Care for Life" project, which utilizes money collected on board Emirates flights for the UAE Red Crescent Society.

First Capital                                                                          Money Market

Renewed investor interest for government securities pushes the yield down 

Therefore, the pressure on the money market rates are likely to prevail, until a clear direction of easing the liquidity shortfall. The sharp rise in call money rates pushed the one month term money rate to 26%~29%, from the 24%~26% of the previous week. 

As the Central Bank maintained its reverse repo rate at 20%, the overnight market repo rate was persisted same at 19.8%~20%. 

Central Bank open market operations

For the third consecutive week, Central Bank open market operations, repo and reverse repo rates remained unchanged at 17% and 20% respectively. The Central Bank's reverse repo window persistent to be the largest lender in the market and during week the reverse repo window released Rs. 140Bn, averaging Rs. 28.8Bn a day. We are of the opinion that the reverse repo window will remain as the main lender in the market and to set the direction for market repo rate and the call money rate. 

Treasury bill auction

Treasury bond auction

Foreign exchange - dollar spot movement

Days 91 182 364 

Last Week 18.04 18.25 19.75
This Week 17.97 18.13 19.43
Change (.07%) (0.08%) (0.32%)

Maturity 08-Dec-02 
Coupon 10.75%
Amount offered Rs.Mn 3000
Amount Accepted Rs.Mn 3000
Weighted Average 20.13%
Change (1.21%)

Tea Update

Quantity (kg) Value (Rs.) Av. FOB per Kg

2000 1999 2000 1999 2000 1999

Bulk 108.0 100.6 16.6 13.6 153.35 135.33

Packets 38.8 40.3 6.9 6.0 176.97 149.42

Bag 7 6 3.0 2.3 389.54 376.81

Instant tea 0.7 0.6 0.34 0.31 480.95 479.82

Green tea 0.3 0.2 0.14 0.10 388.12 366.08

Others 5.2 3.5 1.3 0.90 251.57 253.78

Total 160.8 151.7 28.0 23.3 174.62 153.72

Tea imported/

Re exported 4 3 1.2 0.86 264.49 290.64

Total 165.1 154.7 29.2 24.1 179.97 156.35

Figures in billions 

Source: Asia Siyaka Commodity Brokers

Confifi Hotels are WAP online 

By Akhry Ameer 

Its web-site confifigrouphotels.com has been designed to enable a world-wide brand presence and to provide customers with direct access, while attracting clients from countries where there are no tour operators promoting Sri Lanka. The site features information on its hotels, resorts, tours, contact information together with main attractions such as water sports. It also provides a link to its online booking system and contact information. 

The Online Booking System makes it possible for its clients to select a hotel, type of room, stay dates, etc. including other services such as airport pickup request. After entering the booking, the clients would be able to immediately obtain confirmation on the availability of the booking and pay using secure credit card payment methods. Confifi has tied up with Lanka Ecom Technologies Ltd. to provide the secure payment feature through its site avakasakade.com. Avakasakade uses special encryption software that has been guaranteed by a leading overseas Internet security company. 

Confifi is also WAP online for mobile phone users. Users of this service will be able to browse under 'Hotels' through the Dialog GSM WAP portal on their phones, view information and make reservations via its E-mail facility. Reservations made through the WAP service will be entitled to special packages. The Dialog WAP portal also provides other information on entertainment, personal information management and general interest content.

To complete the range of e-commerce features the hotel chain has transformed its brochures into a CD-Rom Presentation. "In addition to keeping with the modern trends and providing us with easy transportability, this feature would help us to provide additional information to our clients like 360( views of rooms, bathrooms, etc." said Mr. Stefan Furkhan, Managing Director of Confifi Management Services Ltd. Confifi Group Hotels was established in 1970 and currently operates six local and one overseas hotel. The group also has 22 companies operating in various businesses. 

British Water to visit Sri Lanka

The visit, sponsored by the British High Commission and Trade Partners UK, aims to build on the growing level of British interest in Sri Lanka. Britain is keen to develop partnerships with Sri Lankan Government Authorities and to share expertise in key issues affecting water supply, waste-water treatment and leakage assessment. This sector is a particular strength of the UK environmental industry.

British companies are keen to explore the scope for developing joint ventures with Sri Lankan companies. The visiting delegates include representatives from British Water, Bechtel Water, Halcrow Group, Mott MacDonald, Thames Water, Vivendel Water and W.S. Atkins. Mr. Alan David, Head of the Water and Land Directorate at the DETR will lead the companies. Expertise covers everything from technology provision, through consultancy to financial packages.

"Daewoo Electronics not affected"

Moreover, Daewoo Electronics has been assessed by Korean creditor financial institutions to be the most successful corporate restructuring example among the 12 Daewoo Group companies. 

It was turning out the most financially sound as a result of restructuring begun one and a half years ago, Mr. Chang has said in a statement.

Since August 1999, Daewoo Electronics Co. Ltd., has sold its unprofitable assets and the shares it held in other Daewoo Group companies disposed of non-core business units and streamlined its organization and network to be more focused on the company's strengths, he has explained.

In Sri Lanka, Daewoo Electronics has been represented by Hayleys Electronics since late 1997.

Among the popular Daewoo appliances marketed by Hayleys Electronics are refrigerators, washing machines and microwaves. Hayleys was recently selected the Most Outstanding White Goods Distributor for Daewoo in the Middle East and Africa Region at a Regional Conference held in Dubai. 

Prof Erevelles to electrify business leaders again

One of the world's most sought after speakers on management, Prof. S. Erevelles, PhD, a distinguished member of the faculty of A Gary Anderson Graduate School of Management at the University of California, Riverside will conduct two seminars for CIMA Sri Lanka Division. Dr. Erevelles is one of the most powerful management speakers in the world, who has delivered executive seminars in every part of the world.His areas of speciality are the New Economy, Competitive Advantage, Management and Marketing Strategy. Dr. Erevelles is listed in the "Who's Who Among America's Teachers'', and the "International Who's Who of Professionals."

The seminar on "Leadership and Management in the New Economy", on one and a half days on January 22 and 23, is targeted at directors, chief executive officers and senior managers in the corporate sector, who creates the destinies of their companies in the new economy.

The seminar on "People Management and Service Excellence in the New Economy," aimed at middle and frontline managers will be held on January 24. These seminars are endorsed by the American Chamber of Commerce in Sri Lanka (AMCHAM) and the first event is scheduled to be inaugurated by the American Ambassador E. Ashley Wills.

Organized by CIMA Sri Lanka's Management and Professional Development Unit the series is sponsored by the Lanka Oberoi, Conqueror, MTV and YES FM.

World on your palm

Ericsson Sri Lanka will soon unveil the R380, the first in a series of hybrid phones. Earlier this year Ericsson launched its first fully WAP enabled phone, the R320. Now within months of its first ever public appearance, the R380 will also connect people and keep them organised on the go. Ericsson R380 offers users a small, trendy WAP phone integrated with a Personal Digital Assistant (PDA) and other trimming of a modern digital phone. The R380 has been specially developed to provide Internet access to the mobile user. 

The R380, which is very similar in shape, size and weight to the R320 supports the GSM 900/1800 bands and e-GSM band. The 130x50x26mm phone weighs around 164g, but it features outweigh its weight in grams. 

The R380 features a large touch screen to facilitate organising, checking e-mails and browsing WAP sites. 

Meanwhile the hybrid phone supports two of the widely used industry standard e-mail protocols - POP-3 and IMAP4 and gives direct access to corporate networks mail servers such as Lotus Domino and Microsoft Exchange.

Other features include PC synchronization and back up, In-built modem and IR communication, voice dialling/answering, address book and Contacts, calendar, voice memo, notepad, handwriting recognition and soft keyboard among many others. 

With the standard battery provided, the phone offers 3 hours talk time, 90 hours standby time, 2.5 hours WAP time and 80 hours Organiser time. It is available in two distinct colors: Classic Blue and Desert Green.

Ericsson is targeting the R380 at early adaptors of new technology who are highly mobile in their working and leisure time and require the ability to be in-touch and to be organized. 

Ericsson believes that the R380 would be a success as it is a hybrid phone and PDA in a very small package. In addition, its pricing promises to be less than the combined price of a cellular phone and a PDA available at present. 

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