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Charge of the 'Magic' bicycle brigade

A row of bicycles ready for refitting with new lightweight refrigerators and new logos at the Cargills Magic ice cream factory near Minuwangoda. Rows of the old Walls refrigerators are seen behind the bicycles. Cargills' Magic ice cream was launched earlier this month, a few months after the group bought the Walls factory from Unilever. Pic. by J.W. Weerasekera.

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Sri Lanka running out of sand
Pilot project to promote use of sea sand in building construction
Sri Lanka's building industry may face a shortage of sand for the construction industry, a senior government official warned last week.

The construction industry may face a serious shortage of sand if the over-exploitation of river sand is not stopped and sea sand from offshore sites is not promoted as a viable alternative, said Janapriya de Silva, chairman of the Geological Survey and Mines Bureau.

"We could run short of sand in another two years' time," he declared.

Sand mining in river beds was doing serious damage to the environment, weakening river banks and the foundations of bridges, and causing an incursion of seawater upstream.

The problem became so severe that, with the onset of the drought, the water pumping station at Avissawella was closed down recently because of an incursion of seawater upriver.

"The entire construction industry could come to a halt unless alternatives are given," de Silva warned.

Demand for sand is forecast to rise with a construction boom expected with the revival of the economy and the reconstruction of the north and east following the truce between the government and the Tamil Tigers.

Sand would be required in large quantities for the big highway and port projects in the pipeline.

The bureau, along with other state agencies, plan to launch a pilot project with a stockpile of offshore sand mined and kept for use by the Road Development Authority at Muthurajawela. The project was proposed by the Coast Conservation Department.

"Our aim is to introduce offshore sea sand to the construction industry as a viable alternative to river sand," de Silva said. "Then, hopefully, the focus on river sand would diminish. We want to promote the use of sea sand among the biggest users such as construction firms.

"What we want to stop is the over-exploitation of rivers," he added. "We must strike a balance. Otherwise, the country is going to face a crisis."

Fears among users that sea sand was not suitable for construction purposes because of a high salt content were unwarranted, said Dr. N.P. Wijayananda, director of the Geological Survey and Mines Bureau.

"Studies by the Moratuwa University show that the salt content in dredged sea sand is 0.8 percent, within the acceptable limit of less than one percent," he said. "So it is acceptable for construction purposes."

The bureau has demarcated sand deposits off the southwest coast between Panadura and Kalpitiya, he said.

The bureau allows dredging at selected sites 20 kilometres offshore in sand deposits at a water depth of over 15 metres.

"We've identified the deposits and already given licences for mining sea sand under very strict conditions," Dr. Wijayananda said. "Otherwise, it can increase erosion of the coastline."

The mining season is between December and May.

The stockpile at Muthurajawela, mined from one site north of Colombo, has been used for landfill purposes for Colombo Port's Jaye Container Terminal and the modernisation of the Queen Elizabeth Quay that is now underway. It is also used for the Colombo-Katunayake highway project.

De Silva said that offshore sand mining was a big industry in the industrialised West and that sea sand was used in Europe for building purposes.

Sand used in the civil engineering construction industry and for road building in the island now comes from rivers and mining is done on licences issued by the bureau. No licences are issued for mechanised mining.

Large deposits of sand with the properties required for building purposes are found in the middle and lower reaches of the Kelani River, Kalu Ganga, Maha Oya and Deduru Oya, according to the Geological Survey and Mines Bureau.

Sand along riverbanks is mined using manual labour and buckets and wicker baskets while deeper water sand is mined by divers who load it on to barges.

Surveys by the bureau have revealed that sand is mined mainly by businessmen most of whom own land by the rivers.

De Silva said river sand mining was becoming a social issue, much like the coral mining problem.

"River sand mining is difficult to stop despite the harm caused," he said. "A sizeable section of the poor could lose their livelihood."

"But it is better to give a warning in time so that they could find alternative employment."

Bartleet gets into insurance
The Bartleet Group plans to set up an insurance company in a joint venture with the Life Insurance Corporation of India.

The new venture would be called the Life Insurance Company (Lanka) Ltd, company officials said.

The 44-year-old Life Insurance Corporation of India is a big insurance firm in India and had been operating in the island before the nationalisation of the insurance industry in the 1960s.

It operates over 2,000 offices and has 120,000 employees and 800,000 agents.

Bartleet is a 98-year-old brokerage company that is well known in the plantations industry and has expanded into other sectors such as finance, information technology, engineering, and imports and exports.

Have fun Sri Lankans
No change in holidays for 2003
The government, despite pleas from Sri Lanka's business community to reduce holidays in an effort to improve productivity, has maintained the same number of holidays for next year, according to an official announcement.

The Ministry of Home Affairs said in a statement there would by 25 public and bank holidays in 2003 which is unchanged from this year or 2001. This means Sri Lankans would be on holiday for 129 days of the year inclusive of the 52 weekends.

"It's just not right. We have been consistently urging the government to cut holidays if we are to be productive and stay competitive in the region," noted Chandra Jayaratne, chairman of the Chamber of Commerce (CCC). He said there were much fewer holidays in other export-competing markets like China, India or Vietnam.

Jayaratne said he was surprised by the announcement issued more than a week ago because the "proposed National Employment Policy talks of a revision in the number of holidays".

The CCC and many other chambers have urged the government to at least do away with the extra holiday given when official holidays fall on a Saturday or Sunday. Patrick Amarasinghe, a veteran chamber personality who has previously headed a chamber federation and the National Chamber of Exporters, expressed disappointment over the move.

"How can we talk of a national productivity policy and make this nation productive if we have too many holidays?" he asked, stressing the need to cut the number of Poya holidays and only provide for the most important events in the Buddhist calendar.

Amarasinghe suggested that holidays need to be rationalised by providing long stretches of one-two weeks holiday during the Sinhala and Tamil New Year, and Christmas and reducing holidays during the rest of the year on the lines of practices followed in China or Hong Kong.

"In any case people hardly ever work during the New Year and Christmas periods. Factory workers keep away for days forcing us anyway to close," he said noting that Sri Lanka is fast becoming uncompetitive because it was often on holiday while the rest of the world was at work.

Home Ministry officials were not available for comment on the holiday schedule.


Master Divers, Bakri in offshore bunkering JV
Master Divers has teamed up with Saudi oil major Bakri International Energy Co to provide an offshore bunkering service off southern Sri Lanka to serve ships plying the main East-West trade route across the Indian Ocean.

The joint venture has just been approved by the Board of Investment and would use a 40,000 tonne tanker barge stationed off Hambantota, Master Divers chairman Ariyaseela Wickremanayake said.

"We hope to be operational by September," he said.

Bakri would supply the fuel oil while Master Divers would operate the vessel.

The two companies were in the initial bidding for Lanka Marine Services (LMS), the Ceylon Petroleum Corporation (CPC) subsidiary that is the monopoly provider of bunkers in the island.

The offshore bunkering operation is being set up following the liberalisation of the industry. The government is keen to exploit the island's strategic location almost astride the main shipping lane.

Most ships passing Sri Lanka do not take on bunkers at Colombo mainly because of the high cost and restricted quantities.

LMS has been forced to limit supplies and charge high prices because most of the bunker fuel produced by the CPC's Sapugaskande refinery is going to feed thermal power plants.

LMS also has been importing parcels of bunker fuel because of the shortage in the CPC.

IOC to give new image to fuel stations
The Indian Oil Corporation (IOC) plans to transform petroleum product retailing in the island by expanding the use of retail outlets with facilities such as convenience stores and automatic teller machines.

"It's going to be a different ball game altogether," said Nalin Pathikirikorale, Chairman of Lankpro (Ceylon) Ltd, the agent for IOC in Sri Lanka, adding that a "few outlets should be ready by October".

The IOC's entry into the Sri Lankan market and the contemplated reforms would provide a "new image" of the entire petroleum sector, he said in an interview.

IOC will enter the Sri Lankan market under a Memorandum of Understanding signed between the Indian and Sri Lankan governments in June.

The IOC will spend about three billion rupees in a phased programme to develop the tank farm, jetty and pumping facility, and retail outlets. It will invest in and improve retailing to eventually capture a 50 percent market share by volume.

There are more than 1,000 petrol sheds in the island of which only about 360 are owned by the CPC with the rest being operated as franchises or by dealers.

IOC intends to provide more facilities and services to customers by having convenience stores, food courts, automatic teller machines in tie-ups with banks, Internet kiosks, and communication centres at selected retail outlets, Pathikirikorale said.

"Whoever gives the best service at a lower cost would do better," he said.

Under the MoU, the Indian oil major will lease all 99 tanks in the China Bay tank farm in Trincomalee owned by the Ceylon Petroleum Corporation (CPC) and acquire 100 CPC service stations and filling stations as well as build and operate its own outlets.

It will initially refurbish and use about 10-15 tanks in China Bay to store products for distribution in the north and east and later market the rest to other players. Petroleum products would be shipped from the IOC's refinery in Chennai, India.

The IOC is entering the island as part of its thrust into new markets such as Nepal and Bangladesh, Pathikirikorale said.

Sri Lanka imports about two million tonnes of petroleum products a year.

New regulations would be framed to provide an overall policy framework and standards in the liberalised petroleum product sector such as the size and minimum distance between two outlets, as well as the facilities and volumes that would be available in an outlet.

An IOC team is currently in Trincomalee inspecting the facility. Work on the tank farm and retail outlets will start once the lease is worked out by year's end.


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