Financial Times

Textile training centres to be privatised
Workers are opposing a government plan to privatise the Textiles Training and Services Centre (TTSC) and the Clothing Industry Training Institute (CITI), which were established to promote and develop the island's textiles industry. Director of these institutions, D.P. Gunawardana, confirmed the privatisation decision and said the government had decided to convert them into two separate companies, managed by the Joint Apparel Association.

Workers at the institutes have petitioned the Ministry of Tertiary Education and the Ministry of Enterprise Development, Industrial Policy and Investment Promotion. They are demanding a halt to the move to privatise the institutions, and prevent the private sector from exhausting state resources. According to the institutions' annual report for 2002, the TTSC has made a profit of nine million rupees while the CITI reported a marginal profit of Rs. 123,000.

Despite these institutions reaching a level of self-financing and possessing highly qualified individuals, the government decision has surprised both workers and some industrialists as to the reason behind the privatisation move.

The TTSC, set up to boost the rapidly diminishing textile industry, acquired a modern fabric testing laboratory with Japanese aid. This laboratory has contributed nearly 80 percent to the TTSC revenue through its testing. The CITI has focused on developing the skills of garment industrialists, and conducts training programmes and workshops for the industry.

Ashraff Omar, Chairman of the Joint Apparel Associations Forum said that the move to privatise both institutions was timely since the industry was not getting the maximum benefit from the institutions. "The facilities are not vibrant and the training it provides today offers very little benefit to the industry," he said.

Omar said that despite the government's original plan to privatise the institutions through the stock exchange, the fear that small and medium scale industrialists could be neglected by a sole private enterprise has forced such a move to be abandoned.

Instead, plans are under way for the government to own the companies, which would be leased out to a Board of Directors consisting of representatives from the five major apparel associations, so that all stakeholders would be able to play a role in the management of the institutions, for the benefit of the industry.

Omar said that the new management would look into areas such as upgrading courses, inviting foreign lecturers and creating skilled professionals that would help improve the bottom line in the industry. (SG)

Insurance for depositors?
The Association of Professional Bankers (APB), in view of the Pramuka Bank crisis, has organised a panel discussion on how to protect the consumers and depositors during its 15th anniversary annual convention to be held on July 26 and 27 at the HNB auditorium.

APB President Nihal Kekulawala said that well known company lawyer, K. Kanag Isvaran PC would speak on this issue followed by a discussion which would also consider insurance cover for depositors, etc.

Mundogas prevented from refilling other cylinders
Mundogas has again been prevented from refilling gas cylinders of other suppliers.
The Supreme Court last week directed the Appeal Court to restore its interim order preventing the company from refilling empty Liquid Petroleum Gas (LPG) cylinders bearing other trademarks.

It also directed the Appeal Court to hear the writ application filed by Shell Gas Lanka against the Consumer Affairs Authority on the merits of the case. Shell had filed a writ application asking the Appeal Court to quash the gazette notfication issued by the Consumer Affairs Authority allowing LPG suppliers to refill cylinders of any trademark.

The interim order restored by the Supreme Court will be effective till the final determination of the case.

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