The mill, which will be built at the Prince Vijaya Quay, will have a capacity of 300,000 tonnes a year, and is scheduled to start commercial operations in 15 months, said Essa Al Ghurair, General Manager of the Dubai-based National Flour Mills. It will provide up to 1,000 direct and indirect employment opportunities.

A team from the company held talks with Prime Minister Ranil Wickremesinghe and other cabinet ministers last week to discuss the project which has been opposed by the United National Party trade union, the Jathika Sevaka Sangamaya (JSS). The JSS has challenged the project in court, alleging irregularities in the allocation of land under the deal, which they said would deprive the Sri Lanka Ports Authority of income with the demolishing of a warehouse to make way for the flour mill.

"Prime Minister Wickremesinghe has welcomed our investment proposal and is very supportive," Essa Al Ghurair said in an interview. The company plans to double the mill's capacity with a second production line later on if current peace efforts succeed and the investment climate improves.

The project promoters, the National Flour Mills Company and Emirates Trade Agency of Dubai, are diversified companies in the Gulf region, which own and operate bulk carriers and are involved in flour milling and the cement and steel industries.

Stock market report
Busy week for Colombo bourse
By John Breusch
Last week it was Hayleys; this week the banks. The reinvigorated Colombo stock market enjoyed another round of busy trading this week on the back of renewed interest in the banking sector, market sources said.

The All Share Index ended an abbreviated trading week - shortened by the advanced Vesak holiday on Friday - 23.1 points, or 3.6 percent, higher at 665.7 points.
The blue chip Milanka index fared even better, climbing 55 points, or five percent, to finish at 1145.4 points.

Both indices are at their high levels since the UNP's victory in the national elections caused the market to rise in December. After a quiet start to the week the pace picked up on Tuesday when the country's largest private lender, Hatton National Bank, snapped up another 2.3 percent of DFCC shares to lift its stake in the development bank to 12.6 percent.

The move - which saw HNB pay Rs. 140 million or Rs. 140 a share - dominated the day's trading, accounting for more than 60 percent of turnover. As with last week - when Singapore-based fund Arisaig Partners paid Rs. 390 million for a seven percent stake in Hayleys - the deal set the tone for the week.

Volumes were even higher on Wednesday, with Rs. 308 million changing hands, up from Rs. 226 million on Tuesday. But this time investors focused their attention on the rest of the banks. HNB's swoop further entrenched the intertwined nature of Sri Lanka's banking sector and fuelled speculation that the industry could face a round of consolidation later this year.

That shakeout may be driven by the upcoming privatisation of Sri Lanka Insurance Corporation (SLIC), which owns 30 percent of Commercial Bank and 11.5 per cent of DFCC.

It is not yet clear whether these two holdings will be sold as part of the SLIC float or will be offloaded separately. Either way, Commercial Bank gained Rs. 8, or almost five percent, over Wednesday and Thursday to finish the week at Rs. 170, while DFCC gained Rs. 10, or 7.4 percent, to Rs. 145.

Directors' institute- New committee
The second annual general meeting of the Sri Lanka Institute of Directors (SLID) was held last week with Ranjith Fernando taking over as president from Ken Balendra.
Fernando, who retired from the NDB after a long spell as CEO, is currently secretary to the Ministry of Enterprise Development while Balendra, former chairman of the John Keells Group, is now heading the Bank of Ceylon.

Since its launch two years ago, the Institute has far exceeded expectations moving from strength to strength with the support of its 750 strong membership of corporate leaders.

The new committee comprises Ranjith Fernando (president), Richard Juriansz and Chandra Jayaratne (vice presidents), Chrisantha Perera, Mahen Dayananda, Vivendra Lintotawela, Eranjith Wijenaike, Chandima Gunawardena, Prema Cooray and Tilak de Zoysa.

Price support for rubber
A veteran plantation expert has suggested that a price support scheme should be prepared by government to help losing rubber smallholders get at least 55 rupees per kilo for raw latex purchased by large private sector firms like Richard Peiris and
Dipped Products.

"The financial shortfall could be met from government revenue whenever the priceannot be paid out by the prescribed buyer. If this is not done the rubber industry in the country would be fighting a losing battle for survival," said Clinton Rodrigo, a retired planter and one-time senior regional chairman in the JEDB. He was reacting to Plantation Minister Lakshman Kiriella's comments in last week's Sunday Times where the minister said he expected the rubber industry to bounce back from currently turbulent times.

Rodrigo, referring to Kiriella's statement of preparing a three-year action plan for rubber, said unless this "plan" is put into action early it would be a case of "closing the stable door after the horse has bolted".

He said many rubber smallholders were changing to other crops - as rubber prices were falling - and urged the minister to do something fast to reverse this trend and save the industry.

"The minister also spoke of value addition as the only way to revive the whole industry and that he was encouraging the private sector to move into value addition. This is a laudable exercise but the government should also stop import of raw latex and ensure that local rubber meets the entire needs of our industry," he said in a letter.

Discounts at Ceylinco Cancer Detection Centre
Ceylinco Life has launched an initiative to encourage the company's massive base of policyholders to undergo early screening for cancer, believed to be the second highest cause of disease-related deaths in Sri Lanka.

The company has announced that all active policyholders would automatically receive a 10 percent discount when they use the screening facilities at the Ceylinco Cancer Detection Centre in Colombo.

Good work ETF on express claims
I was perturbed to read a letter (in a recent Sunday Times Business issue) criticising the ETF express claims procedure. Our public expects the government to dole out everything on a platter. How many Sri Lankans actually pay tax? I am pleased with the express claim. The staff was efficient and I got my money the next day - that is brilliant for a government department. My message to the ETF and the prime minister is - do what is right, do not worry about people who sit back and do nothing and only criticise. I like fresh thinking and guts and the new ETF chairman has that and we need a few more of them in politics. Please clean the ETF for us.
A CEO of a company

around the world. Do keep the interaction going. This would help me improve and to make the column more relevant to your needs.

SLTnet prepaid card launched
Sri Lanka Telecom (SLT) launched SLTnet prepaid card on World Telecommunication Day - May 17. The card will initially be available for Rs. 200 and can be used for three hours. Detailed information as to how to access the Internet is given with the card. The user name and password that are specific to each card create a virtual SLTnet account for the user who could reuse the card until it expires. The special advantage of the SLTnet card is that it can be used to access the Internet at any time of the day regardless of where the user accesses Internet, which facilitates the mobility of Internet users.

Moreover, pre-paid card users will not need to worry on features such as billing and bill payment as the card provides seamless Internet access for three hours, an SLT statement said.

IMF praises peace effort, positive on reforms
By John Breusch
Shigemitsu Sugisaki, the man with the ultimate responsibility for the International Monetary Fund's dealings with Sri Lanka, ended a whistle-stop visit to the country last week congratulating the government for its reform agenda and highlighting the economic benefits of peace.

"We are very happy that the current administration is taking the correct and right measures," he said. "I have come here at the right moment. Momentum is there and I have a sense that momentum will go on."

Sugisaki highlighted the government's fiscal restraint, its privatisation programme and its commitment to restructuring loss-making public corporations as evidence of the progress made.

As deputy managing director of the IMF, Sugisaki is the most senior IMF official to come to Sri Lanka in at least a decade. His visit comes before an IMF team arrives next month to determine whether the lending agency should release the final $60 million tranche in a $253 million Stand-By Arrangement (SBA) designed to run for 14 months. Once the SBA is completed, the IMF has proposed a longer-term loan under a Poverty Reduction and Growth Facility (PRGF).

Sugisaki would not comment on the possible size of the PRGF. But he said that compared to the SBA - which was essentially an emergency package focused on economic stability - the PRGF would focus on economic efficiency.

The PRGF aims to restructure the state sector and promote the private sector as the engine of growth. "So the [reform] agenda will be broader and will be deeper," Sugisaki said.

During his two-day visit, Sugisaki met President Chandrika Kumaratunga, Premier Ranil Wickremesinghe, Finance Minister K.N. Choksy, Central Bank officials, business leaders and non-government organisations (NGOs).

He said that an end to the conflict in the north and east would provide a boost to the economy and help the government implement a reform agenda. But he stressed that both were necessary if the country were to achieve sustainable, high growth.
"The peace process and reforms must go hand in hand," he said.

NCE's export awards scheme
The National Chamber of Exporters of Sri Lanka (NCE) last week launched its 10th anniversary export awards scheme in Colombo at a meeting attended by NCE members and participants in this year's awards programme.

NCE Vice President Kingsley Bernard, who is also Chairman of the Awards Committee, told participants that the increased number of participants at this launch is a clear indication of the top recognition given to the scheme by members which was mainly due to the consistency in conducting this awards ceremony and the impartial evaluation.

The awards scheme is exclusively for NCE members and is not only aimed at recognising members and their achievements but also the contribution to the country's export drive and the economy.

Applications are to be invited in seven sectors - agriculture traditional and non-traditional, industry, gems and jewellery and service providers to exporters.
In addition to these sector categories, the most outstanding exporter under each sector will be recognised. The awards for the most outstanding exporter, the best woman exporter, the best Sri Lanka brand, most value added and innovati

ve product will also be made. The awards presentations ceremony will be held on August 16.
NCE's Felix Yahampath and Rasa Weerasingham also spoke while NCE President Emeritus Patrick Amarasinghe also made a few comments.

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