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Mixed reactions over Govt’s performance
By Rajika Chelvaratnam
Corporate leaders have given mixed reactions to the effect of the peace process on the business environment and the performance of what is seen as a pro-business government after one year in office.

Representatives of major businesses commended the government while those of the small and medium industries sector expressed scepticism.The Ceylon Chamber of Commerce said in a statement last week that the improvements effected in the past one year will lay the foundations for greater savings and foreign investment, promote productivity, propel economic growth and create new employment opportunities.

A Chamber Business Environment Survey has shown a vast improvement which is reflected in the growth in the All Share Price Index by 80 percent, curtailment of inflation, reduction of interest rates and the stability of the rupee exchange rate, it said.

Chandra Imbuldeniya, president of the National Chamber of Commerce, said that the past year of peace has helped the business climate tremendously and “has won the confidence of the local investors as well as those of the international community.

“The upward trend of the economy is going well,” he added. He commended the government for “its sincere dedication and positive approach towards a new political culture”.

Imbuldeniya said the government’s pro-business policy has definitely lived up to expectations and the government is doing its best to get rid of the shortcomings and create a disciplined financial sector.

The CCC said the corrective measures initiated by the government will necessarily create hardships in the short term. During this period a social safety net to protect the lower income segments of society should be provided, it said.

“No real improvements can be made until our country improves its productivity and thereby the competitiveness of our industries,” it said. “Wage increases that are not matched by improvement in productivity will result in inflation and take away the benefits wage earners seek.”

Despite repeated government pronouncements that it was seeking to provide small businesses a better deal, they did not seem to be impressed. K.V. Sumanasena, vice president of the Sri Lanka Chamber of Small Industries said, “We are representing the small and medium sectors and what we have seen for the past year is that we have not moved an inch ahead.”

One of the major problems which will be faced by the small and medium sectors is the importation of goods from India. “In India there is protection for the small and medium sectors”, he said, adding that this protection is not provided in Sri Lanka.
Sumanasena said that they had approached the Finance Ministry requesting them to bring down the interest rates for these industries.

“I feel the government is concentrating too much on the peace issue and not enough on the economic development of the country. I think that nothing is moving ahead.”
Ranjith Hettiarachchi, the chairman of the Ceylon National Chamber of Industries, said that the peace process has definitely helped create a conducive environment. “If there is peace fifty percent of the industrial environment is alright.”

He added that an industrialist’s job is not easy and that without peace whatever efforts taken by them will not be fruitful. With peace it will be possible to have long-term plans, foreign investments will increase, the exchange rate can be maintained and a solid currency base can be built, he added.

New savings scheme for Pahala Kosgama locality
A new savings scheme, loosely known as the “Till System”, has been introduced as a combined effort between the Shell LiveWlRE Trust and the Western Province Industrial Development Authority (IDA).

It is aimed at helping families in the Pahala Kosgama locality, in the Avissawella electorate, to get a stronger economic footing in life, a Shell statement said.
This till system would ensure that if the members saved at a rate of Rs. 10 per day, (30 days per month), that each group would end up with a collective fund of Rs.18,000 at the end of six months.

The scheme is such that once collected, this money would act as a revolving fund, which could be lent to various members at a reasonable rate of interest. Eventually, if done properly, these low income community groups will curtail unnecessary expenditure and save up to nearly Rs. 200,000 in less than two years.

Meanwhile, the Live-Wire Programme would provide them with essential written material on basic business principles while the IDA would provide them with the necessary training in industry specific skills and business skills such as accountancy and management.

The concept is to provide them with the tools to manage their own funds and convert it eventually into a profitable company, where the members would be directors and shareholders.

Pradeep Wijenayake, Industrial Development Officer, IDA, accepted the responsibility of holding onto the keys of the tills for three to six months, by that time the participants will have acquired the discipline needed to save. This system has already been introduced by the IDA at various Shell LiveWire sponsored “Bright Ideas” workshops in the Western Province.

While the “Bright Ideas” workshops identify the target audience and provide an ideal forum for the till system to be introduced, the IDA personnel provide the necessary follow-up and ensure that the interested youth are properly trained and guided.

Christmas cheer for children courtesy of HSBC
At HSBC, Christmas has become a time of sharing love and festive cheer with the often forgotten little ones in children’s homes and orphanages throughout the neighbourhood.

This year too, on the 15 December 2002, staff at every HSBC branch will be hosting an orphanage to gifts, games and goodies. The Bank hopes that, as happened last year, customers will drop in at the branches and participate in the festivities.

Sri Lankadara Children’s Home, Wellawatte; Sri Jinananda Lama Nivasa; Missionaries of Charity, Rawathawatte; Sri Sanghamitta Balika Nivasa, Dehiwala; Mentally Retarded Home, Madiwela and the Street Children of All Saints Parish, Borella are some of the children’s homes that will be celebrating Christmas with HSBC. The branches of Fort, Bambalapitiya, Colpetty, Wellawatte, Nugegoda, Union Place and Kandy will be hosting children from these orphanages at their banking halls.

Staff from the Pelawatta, World Trade Centre and Nawam Mawatha branches will be visiting the children at the orphanages themselves, setting up Christmas trees and helping them to decorate them. According to a spokesperson for the Bank, “The staff have been tremendously enthusiastic about this project.

Each branch was given the responsibility of organising their own Christmas party in their own style for the children and this has resulted in a wide array of ideas and creativity in both décor and the organisation of the parties themselves,” he said.

The entire staff contributed towards Christmas presents for the children and also spent a great deal of time and effort decorating the banking halls of each branch for their distinguished little visitors.

“Some customers have also insisted that they will be dropping in with gifts and goodies for the children and it is really encouraging to know that these little ones will not be left out of the fun and joy of this festive season!” He added that, rather than sending greeting cards to customers this seemed a much better way of celebrating Christmas.

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