News

Sri Lankan dishes and plates at H ollywood's Oscar banquet

While Clarke made some presentations via satellite to the world's biggest gathering of film stars, Sri Lanka dishes and plates formed part of the cutlery for the sumptuous banquet that followed for close to 1,800 guests. 

For the third time in five years, Dankotuwa Porcelain was selected to grace the banquet referred to as The Governorís Ball. A design called Majestic was selected to hold the culinary masterpieces of the banquet, the company said in a statement.. 

Dankotuwa Porcelain tableware was previously selected in 1996 and 1997 as well for the Oscar Awards Banquet. In 1996 the dazzling design selected was Magnificence. This design featured an intricate 22-carat ceramic gold border along the edge of the dinnerware. 

The platinum version of this same design was used for the 1997 Oscar Banquet. This years star called Majestic has a rich ruby red border embellished in gold. 

Dinner plates and bread and butter plates from this collection graced the banquet table this year. Magnificence which is obviously still an ìOscarî favourite made another appearance at this yearís event too. The Magnificence dinner plates were used for the main entre along with the ìMagnificence cup and saucer.

The Sri Lankan company has exported to 25 countries around the world, its biggest buyer being the USA, followed by the UK, Spain, Japan and France. 

In the USA, Macys buys most of the dinnerware. Dankotuwa plans to introduce more state-of-the art machinery and computerization to increase production capacity. 

SLT brings out a government supplementary directory 

"Having considered large-scale changes that have taken place in the Government section of the Greater Colombo directory ... it was decided to issue a supplement to this directory that would consist of two parts. Part 1 is comprised of information pertaining to the Presidential Secretariat, Prime Minister's Office, Parliamentary Complex and Members of Parliament and part 2 that of Ministries," SLT said in a release. 

SLT said it was unable to include this information in the directory as the closing date of the same fell in the month of August. 

The remaining four months of the year are used by the publisher to format and print directories in time for the distribution to begin in the month of January. "We intend mailing over 410,000 of the above supplement to all out Greater Colombo subscribers during first week of April," it said. 

The Greater Colombo directory distribution to the customer's premises by the Postal Department began in the final week of January and was expected to be completed in end-March. 

First Cap's new bond index

It said that with the introduction of sovereign bonds in 1997, bonds became a very significant aspect of the mode of investment in the country. Over the years the sovereign bond portfolio increased significantly and became the highest capitalized investment portfolio of the country.

As of today bonds outstanding is approximately Rs. 220 billion and will continue to grow, a First Capital statement said.

Informatics to provide Ifs Software To Aes Kelanitissa power plant

AES Kelanitissa is a flagship status BOI Company incorporated in Sri Lanka in late 1998 for the construction of a 165MW Power Plant at Kelanitissa at an approximate cost of US $110 million on Built Operate Own & Transfer (BOOT) basis.

AES Kelanitissa is a subsidiary company of the AES Corporation, which is a leading global power company with its headquarters in Arlington, USA. 

The company's generating assets include interests in 160 facilities in 23 countries totalling over 54 gigawatts of capacity. 

Lion Kingdom expands

Lion's 325ml lion cub stout pint bottle now comes in three and six bottle convenient carrier packs and sells at Rs. 38/- per bottle.

"The new packs come with the enhanced value of a handy take home size, easy serving limited to one drink and easy refrigeration. A Rs. 8/- refund is made on each bottle returned to sales points.

Stock market report

The benchmark indexes of the Colombo Stock Exchange fell below the 430 & 650 range providing most companies at a discounted rate.

A large debenture parcel of CTC Eagle Insurance Company Ltd changed hands among local investors, at a price as low as 10 rupees, which saw revenue soaring by 70 million rupees during one trading day. 

Among the other transactions that took place in the week was DFCC Bank Ltd 90,000 ordinary shares at Rs.75/- & 95,000 ordinary shares of Colombo Dockyards Ltd. 

In mid-week trade, large quantities of Asian Hotels Limited (40,000 shares at four rupees), Colombo Dockyards (422,500 at 10 rupees), John Keells Holdings (89,300 shares at 33.50 rupees) and Royal Palm Beach Hotels Ltd (52,000 at 9.75 rupees) were transacted.

Hatton National Bank, on a bumpy road in the recent past, made it's long waited announcement recently disclosing the performance of the financial year 2000. The bank has made a considerable post tax profit giving its shares a positive push in a stagnating market.

On Thursday, multinational Nestle announced its highest dividend of 85 percent, an announcement that temporarily halted bearish trends. Analysts said the market was likely to further fall to the 400 and 600 levels in coming weeks. 

Aswin Hemmathagama 

Money Market First Capital

The inter-Bank money market activities remained very calm, as there were no significant changes in the market forces. The liquidity shortfall remained unchanged at the levels of Rs. 33-34 Bn. The slightly reduced demand for call money helped ease the pressure on the inter-bank money market. Therefore, most of the inter-Bank call money transactions took place in the range of 22% to 23%, which is slightly over the Central Banks reverse repo window. Hence, the weekly average call money rate lowered marginally by 11 basis points to close at 21.98%. 

The term money rates remained virtually unchanged and the one-month money was quoted at 21.50% to 21.75%. 

As the Central Bankís Open Market Rates remained unchanged the market repo rates held at 21.5% to 22.00%. At 22% the market players reached Central Bank. 

Given the prevailing liquidity shortfall in money market, the interest structure will be guided by the Central Banks reverse repo rate. 

Central Bank Open Market Operations

Despite the market expectation of a further reduction, the Central Bank overnight repo and reverse repo rates remained unchanged at 19% and 22% respectively. Given the prolonged liquidity shortfall, the reverse repo amounts on the Central Bank window kept high as 173.3Bn, averaging Rs. 34.6Bn a day. 

The Treasury Bill Auction.

The amount offered in the weekly treasury bill auction was only Rs. 2,815Mn. Given the indecisive market perception, the subscription level kept comparatively low. Since of December last year, for the first time the Central Bank intervened in the bill auction by purchasing slightly more than Rs. 1000Mn worth of bills. If not for the intervention the yields would have been much higher. 

As the much envisaged reduction in the Central Bank open market rates did not materialize, the investors took a very cautious approach. Therefore, the yield of all categories witnessed a phenomenal rise. We expect the market to be indecisive until a clear direction is seen from the authorities. 

Treasury Bond Auction

Of the bond auction held for Rs. 1000Mn this week, the total bids were rejected by the Central Bank. We feel that, high bids than anticipated could be the reason for the total rejection. 

However, with the rise in the bill rates, the secondary market bond yields saw a surge. 

Foreign Exchange Dollar Spot Movement

During the week, the rupee came under pressure, due to the renewed demand for dollars. The rupee, which began the week at Rs. 85.59 level reached Rs.87.30 mark at the closing of the week. We believe that, the demand was stemmed by financing of import bills. 

As the Central Bank intervened at the higher levels, the pressure was eased to a certain extent. 

The rupee depreciation for the year saw a noteworthy hike during the week to close at 5.41% as compared with 3.32% at the end of the previous week. Three months forward was quoted at Rs.90.15 to Rs. 90.45, while six months forward was quoted at Rs.93.06 to Rs. 93.55. 

Lose touch with the customer and you will perish-former Tesco chief

By D.C. Ranatunga

Lord MacLaurin, currently serving on the directorates of several companies and is Chairman of England & Wales Cricket Board, was addressing the Institute of Directors at a breakfast meeting at the Taj Samudra recently when he spoke of his experiences in transforming Tesco into one of the world's largest retailers.

Having joined Tesco as a management trainee, he held several senior appointments and by the time he took over as CEO the retail chain was losing market share. It had lost touch with the customers and was giving the customer what the company thought they should have, not what the customer wanted. The result was a drop in business with customers looking at alternatives. What did Lord MacLaurin's team do? They knew they had to look round the market to see what was wrong with them. A research study was launched to know exactly what the customer wanted. They soon realised that the customers were not interested in the promotional offers Tesco were making. It was also revealed that customers of the right age should be targeted. 

They also looked round and found Marks & Spencers were doing well in the marketplace. They had many schemes which were popular with the customers. "We just copied what they did unashamedly," Lord MacLaurin said. "Don't feel shy to copy if you see something good even it is from your competitors", he advised. He quoted the Japanese car manufacturers as a good example of 'successful copiers'. They looked at the Western car manufacturers, copied what they were doing and improved on them. Today they are right on top.

Having looked at the marketplace, Tesco closed down 500 out of a thousand stores. In place of small city retail stores, large out of town stores were opened. A planned programme of staff training was undertaken. Moving with the times, checkouts were computerised. Advertising campaigns were launched featuring the changes in the stores network. They concentrated on cost effective advertising and worked hand in hand with the advertising agency who also had a very close understanding of the Tesco problems.

Lord MacLaurin is a great believer in delegation. "This is vital. Let them decide and do what they think is best. But you should monitor the progress," he advises. Retailing has everything to do with understanding people. So the staff had to move closely with the customers. Goods on display should be what the customers want. In order to keep in close touch with the customers, Tesco set up Customer Panels.

The directors did not stay aloof from the staff. They visited the retail stores regularly and spoke to both the staff and customers. They could then make on the spot decisions and plan out things to meet consumer needs. "Listen to the staff and the customers," Lord MacLaurin advised. "Have a clear goal shared by the management and staff.. Never stop trying to improve." 

Having served on the Board of Directors of Tesco from 1970, he was appointed Managing Director, Deputy Chairman and finally as Chairman in 1985. When he was nearing sixty, he decided he should retire at sixty. "It's very important that one should know when to go", he said. "The marketplace is changing the whole time. New ideas crop up. New products are developed. New techniques are introduced. One should keep pace with all these. Even if one is able to grasp some of them, younger people will be able to do that better. So the seniors should move out giving way to new young people". He related how when he told the chairman of Marks & Spencer that he had decided to retire when he reaches 60, he too had said he would do the same. Both were of the same age. "Six months before we were due to go, he rang me one day and said he had decided to stay because he had nowhere else to go. It was his wish and his decision. I gave way to a younger set and quit. Tesco just took off and is today among the top five retail chains in the world and employing 180,000 people. Marks & Spencer has had a slow downturn".

"Plan your departure. Get the succession plans going," was his advice.

Lord MacLaurin has made use of his vast experience in the business sector to streamline the affairs of the English Cricket Board. When he took over reins as Chairman (it was then known as Test & County Cricket Board), he found it unwieldy. There were 70 members on the Board. The administration was virtually in shambles. There was no contact between the Board and the players which he described as "absolutely disastrous". Using his experience in the business sector, he soon set about restructuring the Board. The name itself was changed to England & Wales Cricket Board and the number of members was reduced to 20.

What is the position four years after restructuring? "Things have changed considerably. There is tremendous interest in cricket once again. Three and a half million children are playing cricket in UK. These include 500,000 girls", he said. As for the English team, he said things are now getting better and he described the English side as "the shop window" of the country. He said he has a huge admiration for the coach, Duncan Fletcher and the captain, Nasser Hussein. 

"Cricket itself is starting to get the act together. Anti-corruption laws are being put in place. Umpiring situation has to be looked at and more professionals should be made available", he observed. "The family of cricket is getting stronger", he stressed.

Sri Lankan exports fall 12% in January

"We are not unduly concerned about the reversal as it is primarily due to large shipments of apparels/textiles in December 2000 to meet quota based delivery deadlines. Exports in December reached a record high of US $ 518 million, "Asia Stockbrokers Ltd said in a report.

It said imports too eased by 10.4% YoY to US $ 565.2 million, as the previous year's import bill was inclusive of the purchase of an Airbus passenger aircraft by the national carrier. 

The decline in imports enabled Sri Lanka's trade deficit to fall by 7.6% to US $ 231 million in January 2001. However, if the import of the aircraft is excluded, the trade deficit has actually expanded by 52.7%, the report said. 

Asia said overall export volumes were lower by 17% in January but composite prices had increased by approximately 5% in US dollar terms. The fall in export volumes is attributed to lower apparel shipments, down 25% in the month. 

The value of apparel/textile exports declined by 24.6% YoY in January and caused a 21.5% slump in industrial exports. 

Other industrial exports that recorded lower export earnings were rubber based product (-24% YoY), petroleum products (-42%) and travel goods (-15%). However, earnings from diamonds (+7%), machinery and equipment (+1%) and gems (+36%) recorded increases.

Agricultural exports grew by 8.4% YoY to US $ 78.3 million, driven by higher earnings in tea and minor agricultural crops. Tea exports increased by 20% YoY in January due to higher prices as well as increased export volumes. 

The average export price of tea had increased by 4.4% YoY to US $ 2.60 per kg in January while volumes had risen by 15% following higher production and improved demand from Russia and Middle East countries.

Referring to imports, Asia said the sharp growth in consumer imports was driven by medical and pharmaceutical products (+51% YoY), radios and televisions (+91%), plastics (+43%) and printed books (+37%). However, food imports eased by 6% YoY, in addition to lower imports of motor vehicles and accessories.

Imports of intermediate goods also declined by 11.4% YoY and is worrying, as inputs for the apparel manufacturing industry accounts for around 45% of such imports, the report noted. "This may imply that apparel exports in the future would remain sluggish. "We understand that crude oil was not imported during the month of January 2001 as the oil refinery was closed for routine maintenance, "Asia said.

Hayleys Photoprint beats the world at x-ray systems sales

The company, which was appointed sole agent for Control-X in March 2000, had supplied 10 x-ray systems worth Rs 25 million to hospitals in Sri Lanka in its first year as agent. This represents over 60 per cent of all x-ray systems sold in Sri Lanka during the year, HPL said in a News Release.

Hayleys Photoprint ventured into the medical consumables business in 1992 and expanded its portfolio to include medical equipment in 1996. The Healthcare Products & Services Department of the company presently markets a wide range of products including x-ray films and chemicals, dental x-ray films, x-ray cassettes and screens, x-ray protective wear, x-ray plants, radiology consumables, x-ray film processing equipment, medical laser imagers and surgical equipment.

LOLC obtains SLF-1

The SL F-1 rating indicates the strongest capacity for timely payment of financial commitments with no significant vulnerability to foreseeable events. LOLC is the first Sri Lankan company to receive a national short term issue rating.

First locally appointed CEO at Celltel

Mr Ratnayaka, who has worked for Celltel for the past 12 years, began his career in cellular communications as an engineer at Celltel and was promoted Manager - Engineering, Chief Technical Officer and Deputy CEO. He holds an Electronics and Telecommunications degree from the University of Moratuwa.

Describing his new job as an interesting challenge, Celltel's CEO said: "I am happy to be the first locally appointed CEO for the company and look forward to leading Celltel to even greater heights in the market."

Mr Ratnayaka said he hopes that the Calling Party Pays (CPP) regime will be introduced very soon, so that the cellular companies will be in a position to offer more services and facilities to subscribers. 

"There is tremendous potential for the market to grow if only we were able to offer incoming calls free of charge. Usage will increase beyond expectation, because there will be no reason for anyone to keep the phones off, " he said.

Celltel Lanka Limited, which commenced operations in June 1989, is the leader in the local market in terms of subscribers, coverage and services. Celltel recently commissioned its digital GSM network "Infiniti" with an investment of US$10 million. 

The GSM network is operated alongside the company's existing analog network which services approximately 200,000 subscribers. Celltel's analogue coverage spans all major cities in Sri Lanka excluding the North and East. 

Lumbini Aquaria wins Arch of Europe award

The award, presented by Business Initiative Directions (BID) in Frankfurt recognizes "immeasurable contribution to the business world, high standing and professionalism demonstrated by prestigious performance." Lumbini was the only company from Sri Lanka to win the award, at a gala ceremony attended by business leaders from 53 countries last month. 

"This is a giant stride not just for Lumbini, but for the ornamental fish sector in Sri Lanka and worldwide," the company's Managing Director Vibhu Perera said, pointing out that this was the first time in the history of this celebrated award, that an ornamental fish exporter had won the Arch of Europe, in competition with more than 80 companies from diverse sectors.

China, SL Business Seminar

The seminar titled "Tips, tricks and techniques to beat the bottom line" is scheduled to be held on April 5 at the Galadari Hotel.

The seminar is aimed at senior and middle level Managers and Executives engaged in production, marketing and HRD functions.

Lanka Bell offers cheapest Internet access

Now in a bid to make the Internet accessible to as many users as possible, Lanka Bell extends the Cheapest Call Charges to all Internet Service Providers' Modem Pools. It is therefore possible for Lanka Bell users to surf the Internet or send and receive e-mails at just Rs. 6.00 per hour, which is 10 cents per minute during off peak hours - generally the time most people access the Internet.

With a dial-up speed of up to 28.8 Kbps, customers couldn't ask for a better deal, while the frequency transmission at 3.5 GHz ensures that the user is connected and remains connected uninterrupted.

Committed to providing a better and more value added service to their customers, Lanka Bell users can be assured of many more attractive and service oriented packages from the company.

Suntel co-sponsors Inter Banking Quiz 2001

Organized by the Chartered Institute of Bankers (Colombo centre), the Inter bank Quiz has been an annual feature for the last 10 years in Sri Lanka. This year, a record number of teams from banks, between 25 - 30 are expected to participate in this popular event, held annually within the banking & financial sector. 

The quiz will consist of 5 rounds of questions with 12 questions per round. Questions will be related to banking (law related,) international trade, current affairs, arts & entertainment and sports. 

A special feature of this yearís competition will be the IT & Telecommunication round.

Indian HC visits CEAT-Kelani Factory

Product safety in the hands of manufacturers

By Akhry Ameer

Mr. Millward addressed the participants at a training seminar on product safety in the garment industry last week. 

Although product safety in the textile industry has been a demand made by some buyers for a considerable period of time, the move by leading brands to extend scanning to their full product ranges becomes a threat to Sri Lankan garment and textile exporters. This means that garment industry exporters would soon be required to possess an HACCP (Hazard Analysis and Critical Control Point) international certification to manufacture for international brands.

In reality the certification means that the manufacturers have systems and machinery to detect and rid their garments and textiles of metal objects that may possibly cause injuries to the consumer. 

These may be in the form of broken sewing and knitting needles, pins, staples and other stray metals that may get into the products from the machinery during the manufacturing process. 

Lock Inspection Systems are manufacturers of metal detection machinery that are installed into manufacturing lines. 

This equipment is specialized to detect metallic contamination in both garments with and without essential metallic trims such as zips, buttons, rivets, etc. 

Besides doing the checks, Lock equipment have additional features like three different signals to warn of contaminated material, reporting features which indicate the number of rejects, items checked and the data can be downloaded to a PC or printer. 

Security and test features are also part of the equipment that calls for an authorized person to reset the machine through pin-number access to continue checking, and testing the machine for accuracy every time during the start-up process through a test card provided by the manufacturer. 

Lock Inspection Systems of UK are suppliers of metal detection technology in the textile, food and pharmaceutical industry with distributors in over 50 countries worldwide. In Sri Lanka currently over 80 Lock units are in operation at various installations supported by local agents, Package Care Ltd. The seminar organized by Package Care was aimed at raising awareness among the garment manufacturers of such systems and was part of a training programme to certify the Lock equipment operators.

Grand cultural pageant at HNB Global Village

A growing tribute was paid to Hatton National Bank for the excellent manner in which this entire cultural pageant was organised. The Managing Director of Hatton National Bank Rienzie T. Wijetilleke who was in Dubai for this occasion hosted a lunch for the principal officials of the UAE Global Village as well as our Ambassador in the UAE Janaka Nakawita at a leading five star hotel.

Ceylinco Homes in Hyde Park 

Bringing stylish functionality to the busy corporate lifestyle with a home that compliments your individuality and personality. Demanding Sri Lankan homeowners and International corporations who consider real estate as the ultimate safe investment whose values could only appreciate turn to Ceylinco Homes International when they seek nothing less than the very best in comfort and convenience.

'The Four Seasons, Renaissance, Raffles and Equatorial are the four types of apartments available. Apart from maximum functionality and floor space these apartments all command a magnificent view of the city' says the driving force behind Ceylinco Homes International, Mr. Chry-shantha Jayawardana, CHl's executive Director and its driving force. 

Designed by the reputed Australian architecture firm Harvies & Abignanno in collaboration with Sri Lanka's Design Consortium Ltd and Sanken Lanka (Pvt) Limited as the appointed construction company, Ceylinco Homes International is now set to redefine living, reset standards and enhance Colombo's skyline with HydePark Residencies.

The concept of designer living began in Sri Lanka with CHl's first project, 'Lotus Grove' in Dehiwela. The company set out to fulfil Ceylinco Chairman Deshamanya Lalith Kotelawala's vision of providing Sri Lankans with homes that are on par with the highest international standards.

IE Technics Group expands its wings 

Started by Mr. Tisil Cooray (MD) as an in house Research & Development unit over 2 decades back to develop electronic products needed by the market, has today, developed to a large scale research centre now known as HE LABS @ which has developed a technology of its own. Most of the products commercially produced by IE are their very own designs developed to meet specific market or customer needs, some of which hold patent rights. Power Guards, Boomerang Antennae to name a few, have today become household names.

IE LABS has the facilities and capability to develop hi-tech electronic products such as building control systems, digital signs, information display systems etc., which will utilize latest technology. Sanjeeva Cooray (Dir.) explains - Now we have the expertise needed to develop IE products, which are software and hardware integrated. 

In keeping up with global needs these systems can even be configured to be remotely controlled/monitored via internet. In other words "we can make a system to switch on the lights at home from any internet terminal anywhere in the world."

Building controls - which can be used to monitor/control a small house to a multi storied building are today becoming an essential part of living. 

Valmelix introduces new cough drops

Valmelix Cough Drops fills a void in the market for Throat Soothing Confectionery which provides relief from Throat Irritations and refreshes the mouth. The new product is made under agreement by Uswatte confectionery Works Ltd. a pioneer of confectionery manufacturing. The main medicament of this product is Valmi plant extract which is a trusted herbal remedy for Coughs and Sorethroat known for generations. 

Union Chemists celebrates 40 years of service

Over the past four decades of our progressive journey in the business, we have emerged as a pioneer in Health-Care Sector. We have diversified our services from the Pharmaceutical trade to Supermarket Concept, Medical Diagnostics Laboratory Services and Communications. We have opened up a Branch Shop near Hospital Square, on Deans Road, and an Agency Post Office in the same venue to provide much needed Postal facilities, thus catering to wider spectrum of People.

Ranbaxy launches dermatological products 

New product range includes anti-fungals and topical steroids used for the treatment of eczemas and contact dermatitis.

Dr. Prasad Kumarasinghe, a leading Dermatologist in Sri Lanka, made a presentation on contact Dermatitis for a distinguished gathering of General Practitioners and Dermatologists.

According to Mr. Kapila Dayaratne, Country Manager, Ranbaxy, they are the 4th largest pharmaceutical company in Sri Lanka and they hope to expand the present product portfolio with the latest innovations.

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