Biz briefs
Talawakelle, Malwatte sold off
Residual government stakes in two plantations companies, Talawakelle Plantations
Ltd and Malwatte Valley Plantations Ltd were sold on the Colombo bourse
last week, raising a total of Rs. 111.7 million.
Hayleys Plantation Management Services, a joint venture between Hayleys,
Aitken Spence and MJF Group, which already owns 51 percent of Talawakelle
Plantations, bought the 19 percent stake (3.8 million shares) on offer
at Rs. 18.25 per share, paying a total of Rs. 69.5 million. The 19 percent
stake in Malwatte Valley was sold at Rs. 11 per share for Rs. 41.8 million
to a group led by Wayamba Plantations CEO Wilhelm Bogstra and S.A. Silva
who both owned a big stake in the firm.
More hospitals join e-Channelling
e-Channelling, the Rs. 70 million e-commerce healthcare joint venture between
Millennium Information Technologies and Ayojana Fund, has attracted more
hospitals with Oasis and Asiri joining the network.
The Web-based service already has Nawaloka and Durdens on its system
which enables users to channel doctors through the Internet.
Exploiting ocean resources
The Economic Intelligence Unit of the Ceylon Chamber of Commerce has launched
a study on the potential to exploit the island's ocean resources with the
aim of attracting foreign and local investment.
The chamber has sought Norwegian support to develop a data base on ocean
resources given the moves to remove restrictions on the commercial exploitation
of marine and mineral resources.
CEB engineers call for longer power cuts
Ceylon Electricity Board (CEB) engineers have called on the government
to immediately extend daily power cuts and warned that failure to do so
could make the power shortage even worse.
The CEB engineers union has said it had recommended extending the existing
two-and-a-half hour power cuts by another one hour during the day.
Inadequate rainfall in the hydro-catchment areas had made the power
supply situation "critical", they warned. Meanwhile on Friday, the CEB
increased the power cuts to 5 hours.
PIA closes office
Pakistan International Airlines (PIA) has decided to shut down its office
here and lay off staff.
The move was prompted by India closing its airspace to PIA flights owing
to the tension between the two neighbours who have mobilised their armed
forces in preparation for war. PIA flights to and from Sri Lanka must pass
through Indian airspace. PIA offices in other destinations such as Male
are also to be closed.
Ceylinco starts Millennium City phase 2
Ceylinco Developers have launched the second phase of their Millennium
City housing scheme in which 300 homes and a five-storey shopping mall
will be built at a cost of Rs. 100 million.
Under the first stage of the project, launched in 1999, the company
sold more than 800 homes. Some 400 families have already taken residence
in the township which eventually will have more than 1,500 homes on the
100-acre site.
3M sees good market for shatterproof film
Despite sluggish economic growth there are opportunities to launch new
products in the local market, such as shatterproof film which guards against
accidents and prevents injury from shattered glass, according to 3M Sri
Lanka.
High intensity signage and reflective glass for enhanced road safety
are other products with potential, the company said in a statement.
The firm, a unit of the US-based 3M which has a presence in 61 countries
and sells its products in 200 countries around the world, displayed some
of its innovative products at the Architects' Exhibition which began on
February 21 at the BMICH.
A number of 3M's core technologies have been introduced into the Sri
Lankan economy in the areas of pharmaceuticals, healthcare, communications,
presentations, the apparel industry and automotive after care.
3M Sri Lanka entered Sri Lanka with stationery products, the most popular
being the post-it notes in their bright, eye-catching colours, and also
multi-media projectors.
However, there are a host of other items currently in use for other
industrial and business applications, the company said. These include 3M
floor matting and specialty tapes and adhesives in the manufacture of high
quality garments.
East-West group in alliance with People Power Int
The East West Group of companies, one of Sri Lanka's most successful diversified
business conglomerates, has entered into a strategic alliance with People
Power International (Pvt) Ltd – an exclusive people management consulting
practice, to provide management consulting services.
The East West Group is made up of 13 companies and its business activities
include civil aviation, shipping, real estate, travel, information technology
and marine services.
A major strategic consulting intervention is currently being conducted
by Dr. Suresh Marcandan (CEO/Principal Consultant) and Ms. Sreeja Marcandan
(Director/Senior Consultant) of People Power International (Pvt) Ltd involving
a corporate re-structure of the group and a redefinition of the vision,
mission and strategic objectives, according to an East West press release.
It quoted business tycoon Nahil Wijesuriya (Chairman of the East West
Group) as saying that it is his vision to position the East West Group
to within the top three most stable, successful and developing diversified
business conglomerates in Sri Lanka, while being a role model for transforming
Sri Lanka's businesses from the realm of the third world to that of the
developed world.
Pleasure craft exports to Holland
Nath (Pvt) Ltd, Galle, has exported its first luxury pleasure craft, a
15-foot Canadian-style canoe, to the Netherlands. The craft was built by
Nath with the wood core-epoxybuilding method using the expertise of Seatech
Services in Holland.
H.B. Jayathilake, director of Nath (Pvt) Ltd., said almost all the raw
material, hardware and labour for the project were supplied locally. "I
am very happy with this project," he said. "We have acquired the specialised
construction techniques." He said he had already received a new building
contract for a 21-foot sailing catamaran using the same technique.
F.A. Tuynman, managing director of Seatech Services, Amsterdam, said
the new building technique produced an extremely lightweight, strong, high
impact resistance, maintenance-free hull.
Many modern round-the-world racing sailing yachts are built using the
same technique, he said.
"I trained the young workers and after one year they turned out to be
highly skilled professionals," he said. "Now they start to teach the master!
So my mission is complete."
Janashakthi accepts Eagle's expression of regret
Janashakthi General insurance Company Ltd, (JGICL), announced that the
long-drawn court case between it and Eagle Insurance has been settled.
The legal problem arose soon after its incorporation in mid-1995 when
the plaintiff (Janashakthi), obtained the services of Ernst and Young to
prepare a profile of JGICL titled "Janashakthi General Insurance Company
Ltd Profile". This document was circulated among prospective investors
to attract investments. Many investors indicated to the plaintiff their
willingness to invest, a company statement said last week.
In September 1995 Eagle Insurance, defendants in the case, prepared
and published a document titled "Janashakthi General Insurance Company
Ltd - An analysis of the Profile." JGICL instituted action for defamation
against Eagle in the District Court over this analysis saying it affected
its trade or business.
The plaintiff asked for judgment against the defendants in a sum of
Rs. 150 million while the defendants also moved a claim in reconvention
against Janashakthi for Rs. 500 million.
The defendants then assured the plaintiff in court in January 2002,
that the statements in the analysis on the profile were not made with any
intention to defame or cause any harm or embarrassment to the plaintiff
and said it regretted if those statements had caused such an impression.
"The plaintiff accepted this expression of regret by the defendants
and moved to withdraw its action while the defendants also moved to withdraw
their claim in reconvention," the statement said.
CyberSoft-IBM business partners
IBM recently announced the appointment of CyberSoft (Pvt) Ltd as its value-added
partner to distribute Informix products and services in Sri Lanka.
IBM last year acquired Informix Software, Inc, bolstering its presence
in the global database market.
CyberSoft has represented Informix in Sri Lanka since 1996 and substantially
increased Informix's share in the local market. It was set up in 1996 as
a BOI venture and has quickly established itself as a leading software
house in the county, an IBM press release said. "CyberSoft, is poised to
increase IBM's Informix presence in the Sri Lanka market," said Kavan Ratnayaka,
Country Manager IBM.
BOI signs 12 agreements in January
The BOI has signed 12 agreements during January 2002, amounting to an estimated
total investment of Rs. 1,055 million of which Rs. 780 million consists
of foreign investment and the projected employment is around 1900.
The apparel sector continued to dominate in terms of growth with an
agreement signed by Sirio (Pvt) Ltd for an investment of Rs. 521 million
and employing 1,200 people, a BOI statement said.
This venture will establish a project to manufacture non-quota garments
for the export market. Dott Sandro Veronesi, the president of Calzedonia
Luxembourg opened its first factory three years ago, Omega line Ltd a state-of-the-art
factory at Sandalankawa. Veronesi decided to open another factory to expand
their presence in Sri Lanka. The parent company of Sirio Ltd will sell
their products through a network of over 1,250 shops in Europe.
People's Merchant Bank in Indian Line of Credit
The People's Merchant Bank last week signed an agreement with the Bank
of Ceylon to be a Participating Credit Institution (PCI) for the Indian
Line of Credit.
A statement said this arrangement will enable People's Merchant Bank
customers to import items from India at a lower rate of interest. The People's
Merchant Bank will also enter into alliances with importers of capital
goods from India in the near future, in order to facilitate the success
of this scheme.
A bank spokesman said that with this latest facility, the People's Merchant
Bank enhances its portfolio of services with further benefits to its customers.
With the signing of the agreement PMB has entered into a new face in its
growth, the statement noted.
The progress made as a PCI for the Indian Line of Credit will help PMB
to participate in other lines of credit, made available to the Sri Lankan
financial sector, it said.
Port improves e-business systems
The Sri Lanka Ports Authority (SLPA) has started a big project to improve
the e-business infrastructure of Colombo port's Jaye Container Terminal
(JCT), the main transshipment facility.
"The current on-line services provided to shipping lines would have
new features, which would result in enhanced customer satisfaction," the
SLPA said in a statement.
"Plans are already in place for the implementation of an Internet-based
application system, which is the first step towards moving into an e-shipping
environment," it said.
A web-enabled berthing system has already been installed at the JCT
allowing shipping agents to send data through the Internet.
SLPA chairman Parakrama Dissanayake said the proposed system at JCT
would have features that allow automatic tracking of containers in the
yard.
An electronic billing and financial management system would be the next
addition to the SLPA's range of e-business application systems, the statement
said.
Key to success in aquarium fish exports
Proper handling and packing of aquarium fish is the key to improving Sri
Lanka exports in this field, an expert says.
"Fish is considered fresh when it is alive. Live fish is in demand in
many countries especially in some South East Asian countries not only because
of its freshness but also marketing of fish is deep rooted as a part of
culture," said Dr. S. Subasinghe, Director Inter-Governmental Organisation
for Marketing and Technical Advisory Services for Fisheries Products in
the Asia and the Pacific Region (InfoFish).
He was making a presentation at a workshop held recently on "Handling
and packaging of aquarium fish for export" organised by the Export Development
Board in collaboration with InfoFish. About 75 exporters attended the workshop.
In Asia, Japan is the single most important market for live fish. Other
countries in the region where live fish is popular are Hong Kong, Taiwan,
Korea and Singapore. The lack of technology has restricted live fish markets
close to production centres for a long time.
The recent technological development in packing has paved the way for
successful transporting of live fish to markets several hundred miles away.
Andrew Soh, Managing Director, Association of Aquarium (Pvt.) Ltd, Singapore,
in his presentation on handling and packing of aquarium fish for export
said the normal schedule begins right from packing until delivery time
at a station or an airport.
Fish should be kept in clean water in separate tanks a few days prior
to export. Fish should not be fed for several days depending on their size.
The last feed for very small fish or larvae should be 12 to 24 hours
before transshipment. Larger fish should not be fed for three days prior
to export. Sufficient plastic bags, insulating boxes, rubber bands, pure
oxygen and clean water should be available, he said.
Sri Lankan exports of aquarium fish has grown from US$ 5.3 million in
1995 to US$ 7.5 million in 2000 with a slight drop in the value of exports
from 1998 to 2000. The major importing countries of this fish are the EC,
the US and Japan.
SriLankan's new freighter service
SriLankan Airlines began a weekly freighter service to Karachi on February
17 using its dedicated freighter, an Antonov AN12.
The freighter, with a capacity of 13 tonnes, will carry consignments
of betel leaves to Karachi and bring back a mix of general cargo such as
garments, medicines and equipment to Colombo and destinations in the Indian
sub continent and Far East.
"We have begun the service to Karachi primarily to assist our exporters,"
says Navin Gunawardene, SriLankan's Senior Manager Cargo said in an airline
statement.
SriLankan's AN12 also serves Bangkok, Bangalore and Male. It flies to
Bangkok once a week, Bangalore twice a week and Male thrice a week.
The AN12 carries perishables to Male, once again assisting Sri Lankan
exporters and garments to Bangkok. The service to Bangalore carries a mix
of cargo from the SriLankan network and also returns with a mix of cargo
destined for cities on the SriLankan route network.
SriLankan Airlines also offers cargo space on its fleet of Airbus aircraft,
offering a total of 500 tonnes each week from Colombo. In the year ended
March 31, 2002, the airline carried a total of 58, 618 tonnes around its
network. |
