Despite tensions in the Gulf, workers from Sri Lanka were continuing even last week to travel to countries like Kuwait, bordering war-torn Iraq, while Sri Lankans already there don't want to return, officials said.

Lalith Peiris, executive director of the foreign employment recruitment arm of George Steuarts Ltd, a big Colombo conglomerate, told a meeting in Colombo on Tuesday to discuss the crisis facing migrant workers in the Gulf, that they were sending Sri Lankan workers and a group was leaving on Wednesday to Kuwait.

"A lot of Sri Lankans want to go to Kuwait and Saudi and those there don't want to come back. There is a misconception that Sri Lankan workers are desperate to return," he said at the meeting organized by the Action Network for Migrants (ACTFORM), a local migrant workers network, and the local office of the American Centre for International Labour Solidarity (ACILS), a US labour rights group.

His views were endorsed by Kalyani Herath of the Sri Lanka Foreign Employment Bureau (SLFEB) who said there was no mass hysteria or plea for migrant workers to return to Sri Lanka because of the Gulf war.

"Many workers who are home on vacation and have return tickets are keen to return even though we have explained to them some of the possible problems in case the war escalates," she said, adding that some of the families of migrant workers here were more interested in mundane issues like seeking information about clearing goods sent by their mothers, wives or daughters working in the Gulf.

But groups working with migrant workers had a different version of events. Dudley Wijesiri, a consultant at the Migrant Workers' Centre said that according to information collected from migrant workers abroad and their families here, migrants were unaware of the two-dozen welfare centres set up for workers in Kuwait.

"Many of the workers have told us that they had no information about these centres," he said, adding that workers in Kuwait also found it difficult to call their families in Sri Lanka because telephone lines were congested and had expressed concern. He said workers were also unaware of any Sri Lankan government plans to evacuate them in case the war spreads to countries bordering Iraq.

However, Wijesiri noted that there was no current cause for real panic or evacuation as the war was confined to Iraq. He urged migrant workers to hold onto their travel documents and passports for purposes of claiming compensation if evacuation became necessary.

Viola de Silva, coordinator of ACTFORM, also urged workers to protect their travel documents and cited the 1991 case when workers had to leave Kuwait quickly sans their passports.

But others at the discussion pointed out that most travel papers were kept by the employers and these would be difficult to obtain in an emergency. However, SLFEB officials said that during the 1991 Gulf crisis which led to some 100,000 Sri Lankans being evacuated from Kuwait, temporary travel permits issued in Kuwait in lieu of lost passports were accepted for compensation payments under a UN-sponsored payments scheme.

Wijesiri said he believed there were fewer workers going to the Gulf these days and if the war continued for a longer period that would adversely affect remittances.

William Conklin, local representative of ACILS, said that while the IOM appeared to have made arrangement to care for foreign workers it was also incumbent on labour-sending governments to be responsible for their workers. "No one knows what the future holds for these workers. No one knows what the government's plans are to look after the welfare of Sri Lankan workers. There is a need for government plans, if any on the protection of migrant workers, to be disseminated to the public."

ComBank rewards for Year 5 scholarship winners

A large number of children holding 'Arunalu' savings accounts with Commercial Bank of Ceylon who were placed among the top three in their respective schools at the Year 5 Scholarship Examination in 2002 have been awarded over Rs. 300,000 by the Bank by way of special prizes. The Arunalu account holders who received cash awards came from 50 schools from all parts of Sri Lanka with the Badulla, Jaffna, Colombo and Kegalle areas having the highest number, the bank said in a statement..

"It is heartening to note that Commercial Bank's Arunalu children's savings account has been extremely popular with parents from all walks of life whostrive to save for their children to ensure a secure future for them,"

Commercial Bank's Chief Manager - Marketing Richard Rodrigo said. The Commercial Bank has also provided cash grants to some of the schools to improve their library facilities and classrooms at special assemblies which were organised to honour scholarship winners.

The Arunalu savings scheme was launched in 1998 by the bank with the objective of promoting academic excellence from a young age while encouraging the savings habit. Arunalu accounts can be opened at any of

Commercial Bank's 109 branches with a minimum deposit of Rs. 100.

New association to deal with recoveries, insolvency

The proposed new company registrations Act should make provision for the process of business recovery with the view to save ailing businesses from insolvency, said Ajith Nivard Cabraal, President of the newly formed Business Recovery and Insolvency Practitioner's Association of Sri Lanka.

Speaking at the inaugural meeting of the association, Cabraal said that the business recovery process is a new approach to save troubled businesses, which needs professional knowledge and skills to manage insolvency situations.

The association known as BRIPASL, was formed in collaboration with the global association of business recovery practitioners, Insol International, with objectives of playing a leading role in corporate turnarounds and insolvencies in Sri Lanka, encouraging re-structuring of sick industries and businesses, promoting mutual exchange of opinion and information among professionals engaged in research and business recovery and insolvency and providing a forum for such professionals, promoting law reforms for effective business recovery and promoting international corporation in the field.

Commerce and Consumer Affairs Minister Ravi Karunanayake who was the chief guest at the event emphasised the importance of insolvency and business recovery process in the light of globalisation.

He noted the contribution made by business recovery practitioners in restructuring Sathosa, Salusala and STC General Trading Company under his ministry, which were some of the biggest loss makers in the public sector.

Karunanayake also volunteered to offer Rs. 500,000 as a seed capital for the new association through the Department of Company Registration. The new association has drawn its membership from various professions such as Banking, law, accountancy and chartered secretaries and administrators, who are directly involved with business restructuring.

The elected council of the Association includes Ajith Nivard Cabraal, President, Ms. Rohini Nanayakkara and Asite Talwatte, Vice Presidents, Dr. Harsha Cabraal, General Secretary, Sudarshan Senaratne, Treasurer and five council members K. Neelakandan, N.R. Gajendran, Nihal Jayamanne, D.K. Hettiarachchi and Ms. Mano Alles. In addition there are five nominated members representing the Bar Association of Sri Lanka, ICAS, CIMA, ICSASL and the Association of Professional Bankers of Sri Lanka.

CSC mulls Europe container service

The Ceylon Shipping Corporation is looking at the possibility of operating to Europe in partnership with a consortium of main line operators, its General Manager Sarath Gunawardena said.

The CSC is holding talks with other container lines on launching a service on a vessel-sharing basis in which the different partners would share container slots, he said.

"There is great demand from local shippers who want the national line to ship their cargo or at least a line which they can rely upon locally," he said.

Shippers and exporters have said the absence of a national line was badly felt when many foreign lines avoided calling at Colombo after underwriters raised war-risk insurance premiums following the Tiger terrorist attack on the Katunayake international airport in July 2001.

The attack disrupted trade and raised costs for shippers.

CSC chairman A.J.M. Muzammil has said the government is committed to reviving the CSC and making it a viable company because of the strategic importance of a national carrier and the need to offer exporters cheaper freight rates to help them be more competitive.

The CSC used to have a small fleet of container ships but the numbers dwindled after it found itself unable to compete with big carriers following the liberalisation of shipping. It now owns and operates two 1983-built cargo vessels, the 10,325DWT Lanka Mahapola, with a capacity of 450 containers, and the 3,080 DWT Lanka Muditha, with a capacity of 110 containers.

The corporation suffered 16 years of continuous losses after 1982 and was only turned around in 1998/99.

Muzzamil said the CSC was awaiting clearance from the Indian authorities to launch a passenger ferry service between the two countries.

The CSC wants to have a regular passenger ferry service between Colombo and Tuticorin initially and later extend it to other ports.

Sathosa retail goes online

Sathosa Retail Ltd signed a MoU with the French Internet Service Provider 'In Terre Net' recently.

After discussions the projects department of the Ministry of Commerce had with 'In Terre Net', the latter decided to come forward in helping Sathosa Retail Ltd to host the 'Sathosa On Line Shopping Mall' at no cost to Sathosa.

This company also hosts their own Internet shopping site where a wide range of household goods, furniture, boats, etc, are sold via the Internet. It is a very user-friendly site and anyone could update their own 'shop' from their individual computers.

Dario Angella who visited Sri Lanka a few months ago with the FSLBC (Franco-Sri Lanka Business Council) group, led by Tima Lazarus and Johny Sore, the International Mission Director of the CGPME (Small and Medium Industries of the Rhone Region), met Commerce Minister Ravi Karunanayake at the ministry, during that trip and discussed this project.

Over Rs. 1 bln for tea stabilisation fund

The proposed tea stabilisation fund, which would have over a billion rupees, would start operating shortly to buy unsold quantities at the Colombo auction and ensure the trade does not face cash flow problems.

The stabilisation scheme was accepted by all stakeholders at a meeting at the Treasury last week attended by officials of the Tea Board, Tea Association of Sri Lanka, brokers and commercial banks, said Niraj de Mel, chief executive officer of the Tea Association of Sri Lanka.

Banks had pledged Rs. 1.25 billion or about Rs. 125 million each and the government would give a 25 percent security, he said.

"We will draw the money as and when required, bid for unsold teas and store the teas at warehouses provided by the Plantations Industries Ministry," he said. "This will help overcome the cash flow problem."

The TASL will hold such teas for at least three months and resell them to the trade.

To handle the fund, an entirely different organisation under TASL is being incorporated consisting of de Mel, the Tea Commissioner, a banker's nominee, a Treasury representative, and Plantations Industries Ministry secretary K.A.S. Gunasekera.

The banks have not asked for collateral and the government would provide 25 percent of each bank's contribution, reducing their risk to 75 percent of their commitment, de Mel said.

The fund was mooted after a sharp drop in auction prices when orders from the Middle East, a key market for low grown teas, dried up in the uncertainty caused by the run-up to the Gulf war.

Large volumes of teas remained unsold creating cash flow problems that the government feared would ultimately affect small holders who produce low growns which make up more than half the crop.

De Mel said demand had revived at last week's auction. "The market this week was wonderful," he said on Tuesday, the first day of the auction. "Over 90 percent of teas were sold today."

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