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SLT attacks TRC over leaked document Sri Lanka's Telecommunication Regulatory Commission (TRC) came under attack last week from Sri Lanka Telecom (SLT) chairman Thilanga Sumathipala who accused the regulator of leaking a "highly confidential" document to the public. "We are very disappointed with TRC. We are disappointed that they have leaked a highly confidential document to the public. They don't understand competition and have a lethargic way of reacting to SLT requests. We feel it's a kind of a ploy," he told a news conference called to clarify reports on SLT plans to increase tariffs. Sumathipala
said the SLT hadn't asked for increase of call charges more than
what has been proposed. The overall
15 percent increase of annual domestic revenue over the preceding
year requested from TRC was the final tariff rebalancing provided
for in the privatization agreement of 1997. The national operator's
proposed fifth and final tariff revision that covers installation
charges, rentals and call charges was due in 2002 according to the
agreement. The previous rebalancing due in 2001 was carried out
in 2002. The agreement also allows the reduction in International
Direct Dialling (IDD) call charges. Explaining
the proposal, Sumathipala said SLT had requested they be allowed
to change the practice of heavy users subsidizing its low-end customer
base. "We have the capacity. We feel it is not fair. We have
requested to increase the low-end tariff, give a discount to middle
users, and a serious discount to high end users," he said.
Accordingly, call charges of 20 percent of SLT's heavy user customer
base using 1,000 units and above will fall to Rs. 2.55 from Rs.
3.50. All other users consuming up to 1,000 units and currently
paying various rates would be revised to Rs. 2.85 per unit. SLT says the tariff revision stems from the problem of 49 percent of its customer base using less than 500 units and being subsidized by heavy users. In effect categories such as religious institutions that account for 18 percent of customers using less than 100 units are currently paying Rs. 50 as a monthly rental and are charged at Rs. 1.10 per call unit, while their monthly bills inclusive of rental does not exceed Rs. 1,000. However, it costs the national operator over Rs. 1,000 to maintain the telephone connection to each of its customers without any usage. "If the government wishes to keep these people subsidized then we would request that the difference in the cost of maintaining the line be refunded from the proposed Vishwa Grama Fund," said Sumathipala. The Vishwa Grama Fund is part of the Telecom Reforms proposal, where all operators would contribute a component of call charges towards modernization and development of national telecom infrastructure. SLT's proposal
to the TRC on the rebalancing was made in July 2002 and since then
has been pending approval. (AA) ADB president meets Tigers for talks Tadao China,
president of the Asian Development Bank (ADB), has reaffirmed ADB's
commitment to supporting the peace process with rehabilitation and
reconstruction assistance, during a meeting with representatives
of the Liberation Tigers of Tamil Eelam (LTTE) in northern Kilinochchi. Chino, who
met with S. Tamilchelvan, head, and other members of the LTTE's
political wing, said he was impressed with the progress made in
the peace talks since the ceasefire agreement between the government
and the LTTE a year ago. "We believe a lot has been done and
are encouraged by the achievements that have been made so far,"
he said. "We realize there are challenging issues which need
to be resolved and we will do what we can to continue and enhance
our support for this process," he was quoted as saying in an
ADB statement. It did not say when Chino, on a three-day visit to
Sri Lanka, met the rebels. International
support will be essential for the large reconstruction programme
needed in these regions, he said. ADB, along
with other funding bodies, is preparing a needs' assessment for
a major donor conference in Tokyo to address the reconstruction
needs of Sri Lanka in June. "ADB and Sri Lanka's development partners, many of whom are ADB shareholders, need to be assured that all the people of Sri Lanka can enjoy the benefits of peace," he said. Deutsche Bank plans business expansion here Deutsche Bank,
one of the largest European banks present in Sri Lanka, has said
the positive turn in the peace initiative and economic environment
paves the way for expanding its business in Sri Lanka. "I am
delighted to reaffirm Deutsche Bank's commitment to Sri Lanka and
we look forward to playing a positive role in the local market in
the years ahead. The Bank's extensive network in Asia plays an important
role in the development of our franchise in the region," said
Brian Stevenson, Deutsche Bank's Head of Global Banking Division
Asia Pacific. The bank said in a statement that it has already started
to roll out its premier web-based electronic banking platform, db-direct
Internet, as part of its continuing strategy to augment its services
for both existing and potential customers in the country. Using
the latest in web technology, db-direct Internet is the leading
electronic banking system in the market today, providing a platform
for corporates as well as financial institutions to access the Banks'
Cash Management, Foreign Exchange and Trade Finance services from
anywhere in the world. Another cash management product offering
that will follow shortly is db-recon, a new receivables matching
solution that will enable customers to outsource the administrative
task of reconciliation to Deutsche Bank. Deutsche Bank is also a significant player in providing quality and innovative trade finance solutions in Sri Lanka. With a range of sophisticated trade and risk management products, it is one of the leading trade banks in the region. Colombo's British School gets top accreditation The British
School in Colombo said last week that it has joined over 1,500 schools
in 110 countries offering the International Baccalaureate Diploma
(IB), an examination that is fast replacing the current advanced
level examination the world over. Considered one of the best Sixth Form programmes in the world, the examination combines high academic standards with a unique philosophy of education and extracurricular activity, honing individual talents to teach young people to relate the experience of the classroom to the realities of the world outside. "The IB is an academically challenging examination with immense contemporary relevance. The high percentage of pupils now entering the world's most respected universities on the strength of their IB scores does testimony to both points," explained Jill Macdonald, Headmistress of The British School in Colombo. "The IB is very much the Sixth Form examination of the future. Like the best medical schools, the IBO recognizes that academic qualifications have limited applicability in the absence of sound community values and an appreciation of service." Macdonald also says that there is a misconception that the IB is an American examination. "In fact the IB curriculum was developed in Europe. In the last thirty years, the number of countries with IB schools has increased rapidly and now includes many parts of Europe, Australia, Africa and Canada, USA and South America. As a result IB students are welcomed in universities in almost every country." Fitch awards top rating for Citibank,SL The Sri Lanka
branch of Citibank, N.A. has been awarded the top SLAAA rating by
Fitch Ratings Lanka Ltd (FRLL). The rating that denotes the lowest
expectation of credit risk is the first to be awarded to a bank
in Sri Lanka. Ravi Abeysuriya,
Chief Executive Officer/Managing Director of FRLL said, "The
rating denotes a high degree of safety and timely payment of capital
and interest. Citibank showed support from Citigroup Inc, good asset
quality, healthy profitability, and competent management to be awarded
a 'AAA' rating". Abeysuriya
also noted that the bank had performed exceptionally well above
the averages of private and state banks in many of the performance
indicators. He also commended the bank's openness in disclosing
comprehensive details inclusive of clients for credit risk evaluation.
Citibank's asset quality was enhanced by its zero NPL (Non Performing
Loan) and the bank has recorded a four-fold growth of its balance
sheet in the last four years. Citibank globally
has AA+ rating. Explaining the reason for opting for a local rating,
Kapila Jayawardena, Chief Executive Officer and Country Head of
Citibank, Sri Lanka said that the bank wishes to set a trend and
practice of rating in the local financial industry. Credit Risk
Ratings will become mandatory from January 1, 2004 for deposit taking
institutions and debt issues over Rs. 100 million, according to
the 2003 budget. However, it is still unclear whether foreign banks
would be allowed to use its international rating for this purpose. The rating is awarded for a three to five year period based on the contract with the rating agency and would be continuously monitored. Conglomerate John Keells Holdings was the only local company to be awarded a SLAAA rating. However, this was recently downgraded to a SLAA+ rating.Citibank N.A. is a full-service commercial bank with a Sri Lankan presence since 1979. They largely offer trade finance services to a select market. Citibank, Sri
Lanka today serves 2,500 clients with a workforce of 105 employees.
It has been currently mandated to raise $100 million for the government. Fitch Ratings Lanka Ltd is a joint venture between Fitch Ratings, Inc, International Finance Corporation - Washington, Central Bank of Sri Lanka and several other leading local financial institutions. Fitch Ratings Inc is one of the three internationally accredited rating agencies and rates over 2300 international banks and financial institutions. (AA) |
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