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Adopt Chinese economic system, says JVP

The firebrand JVP stalwart recently provided a rare insight into the JVP's economic policy at a seminar organised by the Sri Lanka Institute of Marketing (SLIM).

Weerawansa identified the privatisation process, which began in 1977, as the sole cause for mounting public debt. "The privatisation process has denied the government of all its revenue sources. As a result the government is financing its expenditure through borrowings which has now reached an all-time high of 100 percent of GDP," he said.

The JVP would model Sri Lanka loosely on the economic policies adopted by China, which has a heavy emphasis on state involvement. "The current system is not fulfilling the needs of the majority," he told the small group of marketers.

He added that developed countries have adopted various protectionist policies to safeguard their weak sectors but they prevent the Third World from doing so.

"Sri Lanka should have its own development agenda and not dictated to by the multilateral agencies," the JVP's main spokesman noted.

Malaysia was taken as an example of how IMF-sponsored economic policies could create instability." Globalisation brings back the law of the jungle. (Malaysian Prime Minister) Mahathir learned it the hard way in 1997 when he was hit by international speculators," Weerawansa said.

Speaking about the failure of the socialist economic model on a worldwide scale in the early 1990's, Weerawansa said "socialism failed to recognise the cultural needs of the people. Providing the same basic necessities for all people is sometimes just not enough".

Sri Lanka seen as good investment base by French

By Hiran Senewiratne

"Quite a few French investors have said they are not too concerned about the prevailing crisis and believe that in the long run Sri Lanka is still the right place to invest their monies, given that the laws are sound, the infrastructure good and the human resources better than most places in the world today," said Tima Lazarus, President of the Franco-Sri Lanka Business Council (FSLBC).

He told The Sunday Times Business Desk that small and medium industries in France are convinced that the Sri Lankan business environment is conducive for their business.

FSLBC in collaboration with the Sri Lankan embassy in Paris is promoting small and medium companies (SMSC) in both Sri Lanka and France.

Lazarus said the French were interested in using Sri Lanka as a hub for the South and South East Asian Countries and SAARC and other mutual commitments with South Asian countries in trade.

A large number of small and medium companies in France and Sri Lanka have opened their doors to international trade through the efforts of the FSLBC.

Lazarus, who operates a medium size company by the name of Eastbound in France, has launched a website in French with Dialog GSM and plans to do the same in Sinhala and Tamil.

Don't worry, be happy-Singer chairman

Singer is celebrating its 150th anniversary since launching the business in the United States. What started it?

Singer was founded by Issac Singer who obtained the first patent for the sewing machine on August 12, 1851 in Boston. He started by peddling this machine house-to-house, door-to-door in Boston.

The company was also the first to launch the instalment payment plan and also the first multinational to venture out into Europe, Latin America and Asia.

The other important factor is that Singer has dominated the sewing machine market for 150 years, an achievement no other multinational can match in any product.

How do you plan to mark this event in Sri Lanka?

We have decided to donate 150 artificial limbs to wounded soldiers and also offer 150 sewing scholarships for less-privileged people to be trained at our 60-odd sewing schools across the country.

The company has trained close to 100,000 women over the past several years, many of who are seamstresses owning small dress boutiques or are in some form of self-employment.

How is it being celebrated abroad?

In every country, there are separate celebrations. In Thailand for instance, there is a photographic exhibition with some relation to Singer products. In some countries there are fashion shows while others are donating to charity like the Colombo office.

Any other plans to mark this event?

We decided to identify this event by going direct to our customer base and accessing funds from them while offering attractive interest rates. We are putting out some money market instruments and offering these to our customer base of close to 2 million households.

We hope to raise around 200 million rupees (through a debenture) and provide our investors with a gilt-edged security. The issue would open on August 23.

This fresh capital - for what is it?

We want to improve our distribution network - which is our main strength - and our retailing presence. We already have a large product range. So there are no plans to expand the range. But what we are doing is to improve the current portfolio particularly the furniture segment.

Singer is opening two specialised and exclusive furniture stores because our customers say our quality is the best.

Are you moving away from the mega store concept?

In a small way - yes. These specialty stores will cater to the upper-middle class segment of the market. The mega stores will however still continue to have separate floors for furniture.

Does Singer Sri Lanka sell the full range of products marketed across the world or is it just a part of it?

Just a part only but Sri Lanka has a much bigger range than most Asia-Pacific countries. Many countries for instance don't have furniture. We focused on a particular strategy and it has worked. It is not only the product range but also the quality of the product that has attracted customers. It is also a lot to do with the package offered to the customer and easy access to shopping, consumer financing etc.

Marketing in a turbulent environment - is it difficult?

It is a challenge but the effective strategy is to cater to the customer's needs and wants. Having a product range that satisfies different income levels, helps. There are many ways of marketing in an environment like the current one and the market is still growing. We have done that for the past 20 years. Also these are households items and virtually essential stuff.

We had turbulent times in 1983, 1988-89 but still managed to sell. You need to be customer-friendly, not harsh with the customer and insist that payments should be made on due dates.

But that would also depend on the kind of resources a company has and Singer has these resources unlike smaller firms.

I agree. Smaller companies would have to downsize the scale of their operations during such turbulent times.

Your recent acquisition of Sisil must be a good buy? Any plans for more, similar acquisitions?

That was an excellent investment since there is a very loyal following of this brand (of refrigerators). If there are other similar opportunities, we will certainly go for it.

Planned revenues for this year, targets?

We hope to reach five billion rupees in net revenue this year against 4.2 billion rupees in the previous financial year.

What are the default rates on repayments?

The default rate is at two percent of total loan portfolio, which is very low. The default rate in rural areas is even lower. Rural households are much better settlers of instalments than urban households.

Other issues?

We have a subsidiary called First Capital which is a primary dealer in treasury bills and other instruments. Once the money market instruments develop, we may be able to use Singer stores and outlets to handle financial services like selling treasury bills and other instruments.

As an experiment we have set up a First Capital branch at the Kandy mega store where financial services are offered.

Sewing machines - once the flagship brand - now represent 18 percent of our total revenues. Volume sales of sewing machines haven't dropped but other products have grown in size. We are now trying to sell portable machines with built-in motors weighing about four kilogrammes. We plan to offer a computer sewing machine next month in which designing of one's own patterns is possible.

As a business leader, what do you think about the current business environment?

It looks very negative. But we should not feel that way. We should make the best of what we have. If everyone falls back and become negative, then you are setting in motion a recession. We should look at every possible opportunity of adjusting to the environment, hope that sanity will prevail and that the politicians will form a stable government.

Are we moving in that direction?

I don't know. I think they are planning political games at the moment. It will be only as a last resort that they will get together - in desperation more than serving the country.

Computer training for school teachers

The objective of this service project is to train teachers in computer applications in order that they could conduct similar programmes for schoolchildren.

The two-day programme will be conducted three times a year in April, August and December during the school vacation.

The first programme is scheduled for August 14 and 15 and will include introduction to personal computers, Windows operating systems, MS Word, MS Excel, Internet & e-mail.

Schools have been requested to nominate two teachers with a knowledge of English for this training programme.

Union Assurance maintains steady growth rate

UAL's total revenue increased by 7.5 percent during the same period, from Rs.906.1 million to Rs. 974.3 million.

The company says it is successfully dealing with the present "oppressive" economic climate with a well-focused strategy of cost containment and prudent investment with future progress in mind, especially in the areas of human resources and IT development. 

The company is also making substantial headway in making continuous improvements to service quality.

The intense price competition among insurers continues unabated. This is a cause for great concern within the industry, especially in the light of numerous recent instances of insurers falling into financial difficulties as a result of imprudent, irresponsible and naïve underwriting practices. "One of our guiding principles is to remain the strongest, financially. In pursuing this principle, we have walked away from a number of business opportunities because of very unrealistic pricing. Our revenue could have been much higher if we wrote all the business that came our way," Union Assurance's CEO, Sarath Wickramanayake was quoted as saying in the press release.

SL a safe destination, says NZ trade commissioner

He said he hoped SriLankan Airlines would in the near future be able to restore its Sydney flights as many New Zealand businesspersons and tourists used this service.

Healy was speaking at the recent launch of the Sri Lanka-Australia-New Zealand Business Council in Colombo in the presence of the visiting New Zealand cricket team and other guests.

New Zealand cricket captain Stephen Fleming spoke of the warmth, friendliness and hospitality of the Sri Lankan people and their ability to keep smiling inspite of all the difficulties the country is facing.

Healy noted that there had been a sharp increase in the number of Sri Lankan students going to New Zealand for further studies with some 245 Sri Lankan students travelling last year. Study costs in New Zealand were modest in comparison with the cost of study in the UK or US and some 20 percent cheaper than Australia.

He said Sri Lanka is an important trading partner for New Zealand with the former importing five billion rupees worth of products including dairy, meat, apples, timber, paper and aluminium. Milk powder is the biggest export from New Zealand.

Healy said he planned to work with the new business council to identify new trade opportunities and reduce the trade gap, which is unfavourable to Sri Lanka. Last year, New Zealand imported some one billion (NZ) dollars worth of apparel and textiles but less than NZ $ 19 million came from Sri Lanka.

Gem and jewellery fair next month

The exhibition, which attracts dozens of local and foreign buyers, is annually presented by chambers representing the gems and jewellery industry in Sri Lanka.

According to an industry promotional document, the Sri Lanka gemstone industry combines tradition that dates back to ancient times with modern cutting edge skills that make the island a leader in the processing of rough stones and the manufacture of gem-studded jewellery. 

A colourful array of rubies, padparadschas, alexandrites, cat's eyes, star sapphires, star rubies, garnets, spinels, aquamarines, moonstones, topaz, along with a wide variety of sapphires - blue, pink, yellow and orange, await the most discerning buyer, the statement said.

Organisers are arranging tours to various places of interest like Ratnapura -the famous "City of Gems" and Elhara – well-known for its blue sapphires, for foreign participants.

Wanted – non-violent agitation by the mass business community

POINT OF VIEW

By Suraj Dandeniya

Enough is enough. It is very clear that the future of our generation and even the generations to come have got messed up. It is time the business community rises to the occasion to try and help this nation irrespective of political affiliations.

Each time people begin to live in the hope – having heard the utterances of those in power that the darkest days are over -, a new tragedy and a deep sense of hopelessness overtakes them. Within the next few months there will be no light at the end of the tunnel for the people of this country. Therefore, it is time that the silent business community voices its concerns. The business community in this country even now has been defined, though only in concept, as those traditionally engaged in large scale trading of commodities and services; those who are eligible to belong to one or the other trade chambers.

But unfortunately, those engaged in an important segment of the export economy of this country, namely those promoting and providing foreign employment to thousands of Sri Lankans who send in the highest foreign exchange earnings to this country have not been found worthy of falling within this definition.

The blueprint for the future of this country, at least from now onwards, should be the will and the voice of the people. Their silence should not be mistaken for ignorance. The common necessities of the people are what should be voiced in parliament and not the personal and party agendas of the members of parliament.

The Association of Licensed Foreign Employment Agencies (ALFEA) - responsible for creating more than three million jobs in the Middle East in the past 20 years out of which between 800,000 to 1.2 million Sri Lankans are still domiciled there and contribute nearly 90 billion rupees annually while contributing nearly 1.1 billion rupees to the coffers of the Foreign Employment Bureau – requests all political parties to see that parliament is reconvened immediately as this crisis is reaching alarming proportions while the price of all commodities have skyrocketed. 

The turmoil in our country could hamper future foreign employment orders which would be seized by other countries. In the past three years, the association has found 361,000 jobs in the Middle East while this year alone we have found more than 75,000 jobs and plans for another 50,000 jobs in the next four months would be affected if the democratic systems don't work.

When democracy is being threatened it is the duty of all business organizations also to rise up to the occasion in order to save this tiny island of ours, which was once called "The Pearl of the Indian Ocean."

(The writer is the President of the Association of Licensed Foreign Employment Agencies - ALFEA) 

Virtual anarchy - a call for action

By Sonali Siriwardena

Serious impediments in the workings of the criminal justice system have resulted in a culture of lawlessness in the country, Ranjith Abeysuriya, one of the country's top lawyers, told the seminar. He lamented that of the cases taken to trial, the rate of convictions is a paltry 25 percent, which raises concerns about the efficacy of the judicial system in the country.

"Our laws have the teeth but not the bite," he said, explaining the non-implementation of the law as a key contributor to this sad state of affairs. Citing an example, he pointed out that according to the provisions of the Fire Arms Ordinance (Amendment) No. 22 of 1996, the mere possession of an automatic weapon is punishable with imprisonment for life. Further the punishment specified for anyone who uses any gun in the commission of any offence (which includes common offences like robbery, criminal trespass, etc.) could extend upto death, with a minimum of 15 years imprisonment for using a gun in less serious offences such as cheating and home trespass. But although this law was effective from January 1, 1997- not a single prosecution has been recorded under this Ordinance.

"Why is the law being ignored or is that some people are being protected?" he queried, adding that this unfortunate situation should not be permitted to continue and public opinion needs to be stirred to deal with this gun culture. He said that while death or life imprisonment is not the ultimate objective, the public must be made aware that drastic consequences await those who resort to guns.

The politicisation of the police is another contributing factor. Policemen today don't appear to be performing their duties conscientiously, he said. 

The failure of the justice system to deliver, calls for immediate positive action needed to arrest this fast deteriorating situation. And the initiative, failing everything else, must now come from the public who are entitled to the right to live in safety.

Chairman of the National Dangerous Drugs Control Board, Prof. Ravindra Fernando highlighted the need for the police to be trained in crime control to facilitate speedy detection, investigation and arrest of perpetrators, which in turn would lead to successful prosecutions. He also pointed out that an effective and advanced forensic service is a dire requirement that needs to be addressed.

In this respect he stated that today the cost of DNA testing extends to Rs. 60,000 to 80,000 as the blood samples must be sent to the University of Glasgow because no facilities are available in the country. Prof. Fernando says that a proposal to establish a DNA laboratory in Sri Lanka was forwarded by him to the authorities six years ago but it was turned down. The estimated cost of the laboratory was Rs. 20 million, which is small in comparison to the amount spent on vehicles for politicians in the country.

Top indian business software now in SL

Tally ees 6.3 version is ranked as one the best business solution software in the world for medium scale businesses, according to its Bangalore-based developers, Tally Solutions. Its integrated architecture improves the organisation's MIS functions by providing facilities such as comprehensive financial accounting, inventory management, multi-location stock control, budgeting and security control.

"Tally ees 6.3 is our latest introduction in business solutions to Sri Lanka," said Mr. M.G. Anuragavan, Managing Director of Advanced Business Solution (Pvt) Ltd in a press release.

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