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Malaysia Airlines vows to stay even if war breaks out
Malaysia Airlines, the first new international airline to fly to war-torn Sri Lanka after a devastating airport attack in July 2001 by Tamil rebels, on Monday vowed it would not pull out even if the current peace process fails and the country goes back to war.

"We have a good track record of not withdrawing even in crisis situations. When there was high tension in Karachi in Pakistan, we remained. Similarly we will remain whatever the situation in Sri Lanka," Ahmad Dahlan, senior General Manager, Sales and Distribution at Malaysia Airlines promised at a news conference in Colombo.

"We are also optimistic that the Sri Lankan government's peace efforts would succeed."

He was responding to a question from the Sri Lankan media as to whether Malaysia Airlines, which launched its twice-weekly flights to Colombo with the first flight on Sunday, would pull out if proposed peace talks failed and government troops and Tamil rebels, currently observing a five-month old official ceasefire, resumed hostilities.

An official ceasefire has been in force since late February after an unofficial truce from last December. Previous ceasefires and peace talks, at least on three occasions, have failed with both sides getting back to the battlefield. But there is increasing hope this time - with the help of international truce monitors and the backing of the West - that planned talks in Thailand in August or September would generate much more results than on earlier occasions.

The Colombo news briefing was combined with a travel promotion between the two countries at the Oberoi hotel in which members of the travel trade in Sri Lanka and Malaysia took part - both sides impressing on the other the incentives and benefits of visiting either country. A group of Malaysian journalists and representatives of the travel trade also flew to Colombo on the inaugural flight.

Paddy Withana, chairman of the Sri Lanka Tourist Board - the main state agency promoting tourism - highlighted the pluses of Sri Lanka as a tourist destination and noted that tourist arrivals were expected to rise this year after a dismal 2001.

The focus was also changing from traditional tourism-generating markets like the UK, Germany and France to India and China. Sri Lanka was also shifting its image from a country with the best beaches to a country with culture, nature and adventure, he said.

Withana said tourism planners were also looking at creating niche markets and bringing in high-spenders in addition to mass-market clients. In a bid to overcome the transportation hassle, plans were underway to develop seaplane services on the abundance of lagoons and lakes and transport tourists from the airport to their hotels in luxury trains.

Syed Abdullah, regional manager, South Asia at Malaysia Airlines, said the number of Sri Lankans travelling to Malaysia rose by 100 percent last year to 16,000 which is a sharp increase from 3,554 Sri Lankan arrivals in 1997. He expected these numbers to rise in 2002 and 2003.

According to latest official figures here, 5,022 Malaysians visited Sri Lanka in the January to June 2002 period, up sharply by 108 percent from 2,410 in the same period last year.

Mirza Taiyab, Director, International Marketing, Malaysian Tourism Promotion Board, said there were plans to ease visa formalities for Sri Lankans. Two of the problems are that visitors to Malaysia have to pay 30 rupees for the visa application form - even before it is processed - while the visa officer in Colombo is a foreign office staffer unfamiliar with the rules.

"Whenever there is a doubt, visa applications are referred to the Malaysian immigration authorities which results in delays. We are trying to do away with the fee for an application form and also hoping to post a immigration official here who can take spot decisions on visa approvals," he said.

The Malaysian group of journalists and travel trade executives would be visiting some of the country's most beautiful spots during a five-day tour of the country.

Business leaders say confidence returning
A recent survey of Sri Lankan business leaders shows that there is a considerable improvement in the business climate in the country, the Ceylon Chamber of Commerce said.

"It is heartening to note that a significant improvement in business environment is the assessed opinion of business leaders, in respect of most of the key assessment criteria," according to the chamber's business environment survey 2002 undertaken in June.

But the survey results would, however, be out of tune with current political development where the prospect of another election is increasingly becoming possible. The corporate sector across the board has rejected fresh polls saying it would affect business sentiment and the peace process

The chamber in a circular to members congratulated the government for the improved business conditions as seen from the significant shift in business sentiment but noted that it was important for the private sector, media and civil society to continue to play a key role in ensuring stockholders accountability for "deliverance of the vision for Sri Lanka".

The survey was aimed at ascertaining the views on the prevailing business environment in Sri Lanka. The chamber also conducted a similar survey in June 2002 and this survey included business leaders and also trade union leaders, professionals and academics, government officials, civil society leaders and journalists.

4As to address key issues in advertising industry
The Accredited Advertising Agencies Association (4As) has appointed senior advertising specialists to address key issues facing the advertising industry. Kenneth Honter of Minds FCB and president of the 4As takes charge of the committee to arrive at criteria for professional standards and practices, Nimal Gunewardena of Bates Strategic Alliance and a past president of the 4As is in charge of Media Issues and Relationships, Keith Martenstyn of Lowe LDB will head the committee for Media Issues and Relationships and Rohan Rajaratnam will be in charge of the fellowship committee.

Picture shows the new Board Directors of the Accredited Advertising Agencies Association. Left to right - Michelle Nugawela of Carl and Michelle Nugawela, Crishantha Jayasinghe of Q&E Advertising, Rohan Rajaratnam of Grant McCann and Erickson, Roshni de Saram of Ross K&D, Hony. Treasurer, Varuni Ahangama Fernando of Triad, (Hony. Secretary), Kenneth Honter of Minds FCB, (President), Lilamani Dias Benson of Lowe LDB, (Immediate Past President), Nimal Gunewardena of Bates Strategic Alliance, Keith Martenstyn of Lowe LDB, (2nd Vice President), Keith Wijesuriya of TAL and Ameer Ahmed of Art Box (1st Vice President).

ST Club nominations this week
The Sunday Times Business Club invites nominations from its members for the new executive committee of the Business Club which was re-launched recently. The club will have a committee inclusive of a president and vice president while the secretary of the club would be a nominee of the Sunday Times.

Nominations should be sent to Club Secretary, Ms. Devi at 304179 or 075-345163 on or before Wednesday, August 14.

Letter
Selling the family silver
The government is planning to offload the Sri Lanka Insurance Corporation to the private sector despite high profits, the biggest bonus in Asia and being the leader in the insurance business here for the past 40 years, according to the chairman of the corporation.

If this is so why can't the new regime continue all this "good" work, as claimed?

Why do we need new investors to bring in expertise and skills when these are already there?

The next stage in the plan is for PERC to invite potential investors for expression of interest and give them an opportunity to acquire ownership and control of a profitable life and general insurance which has the leading market position in Sri Lanka with potential for future growth.

One could understand getting rid of a white elephant, but why an established organisation run profitably for 40 long years in spite of being heavily overstaffed with mediocre personnel from both the previous and present governments?

Is this another case of selling off the family silver?
Hilmi Farouk
Rajagiriya


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