It directed the local unit of the Anglo-Dutch petroleum multinational to cut its selling price of a 12.5 kg cylinder of LPG by Rs. 45 with effect from January 15.

The FTC ruling came after an investigation into the activities of Shell Gas following growing public concern over the manner in which the company had raised the price of gas to astronomical levels.

It was not immediately clear whether Shell Gas would comply with the FTC ruling.

Steven Bartholameuze, media manager for Shell Gas Lanka Ltd., said that since they had received the FTC ruling very recently they were unable to comment on its contents.

The firm's legal advisors were studying the ruling and compliance or non-compliance with the contents of the ruling would depend on the results of the study, he said.

Ariyaseela Wickramanayake, the chairman of Mundo Gas, the third player in the LPG market, welcomed the FTC ruling.

He said it was overdue and that the trading practices of Shell were unfair.

The FTC ruled that Shell Gas has a monopoly of the local LPG market with a market share of 80 percent. Laugfs Lanka Gas (Pvt) Ltd accounts for the rest.

It also ruled that Shell Gas had used its dominant position and marketing practices in a manner that restricts consumers' choice as well as competition, discouraging other players from entering the market, and had operated against the public interest.

Shell was also violating consumer rights by retaining part of the gas cylinder deposits without making refunds, thereby restricting the consumers' choice, the FTC ruling said. "At present, SGLL takes a deposit of Rs.2,150 for a new empty 12.5 kg cylinder," the FTC said. "This deposit has two elements. One is the refundable deposit of Rs. 1,110 and the other is the non-refundable deposit of Rs. 1,000. SGLL's practice of refunding only part of the cylinder deposit when a cylinder is returned compels the consumer to be tied-down to SGLL and restricts the freedom of the consumer to change to another supplier. This practice of SGLL restricts competition and distorts the market."

Fitch affirms Hayleys AA+ rating
Fitch Ratings Lanka Ltd (FRL) has affirmed SL AA+ national credit rating for implied long-term unsecured senior debt of Hayleys Limited.

SL AA+ rating denotes a very low expectation of credit risk.

It indicates very strong capacity for timely payment of financial commitments. This capacity is not significantly vulnerable to foreseeable events.

Hayleys Ltd’s ratings are supported by diversification of business operations, diversified manufacturing locations, less cyclicality in core business segments, successful cost reduction strategies, strong manufacturing capabilities and moderate financial policies. The rating also takes into consideration the successful restructuring of the group’s inland marketing segment.

Rating concerns centre on sensitivity of coir fibre, activated carbon and glove segments to raw material price increases, increased leverage due to imminent expansions and the high exposure of coir fibre, activated carbon and glove segments to global competition.

Fitch said as of March 2002, creditor protection measures declined slightly due to the difficult operating environment, global economic slowdown and high interest cost environment while reduced working capital requirements increased net cash flow from operations by 58 percent to Rs. 807 million.

It said as at 30 September 2002, Hayley's total debt was Rs. 3,449 million, marginally lower from Rs. 3,493 million as at 31 March 2002.

Total debt constitutes largely of short term debt due to holding of cash by group companies in local foreign currency banking units to gain from rupee depreciations, the Fitch statement added.

Long term debt has averaged around Rs. 1,000 million over the last five years.

CIMA launches business club
CIMA Sri Lanka is launching a business club in a new initiative towards enhancing and strengthening interaction among its members mainly for the provision of a greater service to the business community. It will be inaugurated by Karu Jayasuriya, Minister of Power and Energy, on January 21 at the Ceylon Continental Hotel.

Members of the Business Club will have an opportunity to discuss common professional areas of interest, form professional alliances, share business leads, interact through a website, enjoy informal out of office fellowship and also develop enhanced business proficiency thro-ugh soft skills development programmes. Frequent fellowship seminars will be organised where guest speakers will be chosen for their ability to instruct, motivate and advise. Activities of the Business Club will be open to all CIMA members.

HSBC wins strings of awards in 2002
HSBC won a string of 2002 awards from a number of key regional publications and organisations including being ranked the Best Trade Finance Bank in both FinanceAsias Achievement Awards and The Assets Triple A Awards.

“HSBC's hold on trade finance services remains firm, winning the award for the sixth year running. HSBC was voted preferred bank for its regional and global coverage. Respondents also praised the bank for its quick response times and its fast and accurate processing of documents,” FinanceAsia said while The Asset noted that “ its been a tough year for trade finance activities, but HSBC benefits from a still expanding intra-Asian trade. The bank's core strength is still derived from its reliable traditional services. ”

HSBC reclaimed FinanceAsia's Best Foreign Exchange House Award in the 2002 survey. A poll of treasury officials around the region was conducted, with half of the respondents nominating HSBC as their foreign exchange bank of first choice. The bank was again named Best Cash Manager Asia by Treasury Management International (TMI), for the fourth year running. The Bank was also awarded the Best Local Currency Services in Cash Management from The Asset.

HSBC Holdings 2001 Annual Review clinched the Hong Kong Management Association's Best Annual Report Award for the second year in a row. The Association commented: “A high quality report with comprehensive coverage and professional presentation, and overall excellence in all aspects comparable to the highest international standard.”

HSBC's Hong Kong operations also clinched the top spot in both the Far East Economic Review's 2002 Asia's Leading Companies and Asiamoney's Best Management Companies Poll.

Record sales for Premier Pacific apartments
Premier Pacific Pinnacle, the super luxury residential and shopping complex along R.A.de Mel Mawatha (Duplic-ation Road) in Colombo, has achieved record sales of 50 percent of the apartments within four months of its launch.

"We are setting new records in the property development industry since the launch of Premier Pacific Pinnacle," Director-in-Charge, Nirosh Perera told reporters last week. "From the date of the launch itself we have been receiving an overwhelming response to the project."

The world-class, 11-storey building consists of 58 apartments from the fifth floor to 11th floor and 66 shopping units from Ground up to the 4th floor with complete physical segregation between the two sections.

Perera said the extensive market research conducted by the company both locally and overseas assisted the company in the design of apartments as well as unique and customer friendly payment schemes. The complex has a range of 16 types of apartments of two and three bedrooms and also offers customers extensive customisation support coupled with after sales service.

The structural grids of Premier Pacific Pinnacle and the reinforced concrete network has been scientifically designed to enhance integrity of the base and superstructure and to make it resistant to earthquakes.

Company chairman Nimal Perera said the 'partnering concept' introduced by the company has been successfully implemented in the company's second project. "The construction work is currently on schedule, and in fact, we expect to complete construction ahead of schedule," he stated.

Premier Pacific Pinnacle is an Rs. 850 million, upmarket housing project.

Sathosa opens first supermarket in Jaffna
The Sathosa chain re-launched its retail operations in the Jaffna peninsula with a supermarket at Kasthuriyar Road. The state-owned supermarket chain's first branch in the heart of Jaffna town was opened on Friday.

A Sathosa spokesman said the supermarket will provide food and other essential commodities to Jaffna residents at prices prevailing in the rest of the country.

Commerce and Consumer Affairs Minister Ravi Karunanayake said plans are underway to upgrade the supermarket to a super-mall in the coming months under the ongoing 100 super-mall project.

The Sathosa chain had three outlets in the Jaffna peninsula which were shut down in the 1990’s due to the war. These outlets are expected to be reopened.

Cancer Detection Centre offers free risk assessment
The Ceylinco Cancer Detection Centre, Sri Lanka's only dedicated centre for cancer screening, will offer free risk assessment for cancer to the public, to mark the centre's first anniversary.

This special offer will be valid from January 10 to 17, the centre said in a statement.

Individuals who are willing to obtain this facility should call the centre to get an appointment. Risk assessment is the first step towards identifying whether an individual is at risk of getting cancer. This procedure will be conducted according to international standards set by the Washington Cancer Institute and will be handled by qualified medical professionals, the Centre said.

"Our team of doctors and medical assistants will be standing by to perform this service for anybody who wants it," R. Renganathan, Deputy Chairman of Ceylinco Healthcare Services Ltd., said. "This will also help to create better awareness about the benefit of early detection of cancer through screening."

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