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Depositors
can’t file action against Central Bank as regulator Speaking on
"Consumer/Depositor - Are they protected in the emerging scenario?"
he said that since the regulator is a statutory authority charged
with the function in the interests of the depositors, the consumer-depositor
could not sue the regulator for negligence in regulatory functions. He said a credible
bank regulatory system would restore ailing banking institutions
and maintain the confidence of investors, both domestic and foreign.
To avert a
devastating impact on the rest of the economy, the reduction of
risk on bank failures is important. Kanag-Iswaran
said that though the purpose of supervision and regulation was to
protect the depositors, it did not provide a guarantee against loss
or to make banking so completely safe as to stop the banks from
taking any risks at all. Supervision therefore was directed towards
reducing failure. Grave responsibility
is cast on the regulator at the time of setting up of a bank and
such matters like suitability of the applicant, nature of proposed
business, parent company, sufficiency of financial resources, quality
of management, proven track record, interests of directors in related
companies and the adequacy of the systems and controls necessary
for the proper running of the proposed business were all matters
the regulator had to scrutinize. Once the licence
is granted, the future of the depositors rested on the hands of
the board of directors. Though other
systems come into place to safeguard the interests of the depositors,
the management of the bank determined the running of its day-to-day
business and not the regulator. The regulator
is not a policeman and therefore for the safety of the depositor
it is fundamentally important that applicants for licences to be
properly vetted, a due diligence done and licences granted without
any political considerations. Whether this
could always be done is anybody's guess. Finance Minister
K.N. Choksy said the Banking Act that regulated the banking industry
was closely examined and it was found that major changes were necessary.
He said that the changes have been identified and as an urgent business
next month (August) an amending bill would be presented in parliament
to strengthen bank supervision and control over specialized banks,
to increase the role of the department of bank supervision, among
other issues. He said that they were looking at a new assets management law to impose a special duty on bank directors and managers to ensure prudent business practices and avoid the hardships that ultimately fall on depositors who have placed confidence in them. Low
Grown prices fall after hitting new high Brokers John
Keells Limited said the overheated Low Grown market took a correction
with most offerings weakening from last levels. Iran was, as
expected, less active and the prices for flowery grades sometimes
declined fairly sharply. "Meanwhile,
the Low Grown average for sale of 29th/30th July reflected an all
time record at Rs. 176.33. The average
for July is also an all time monthly record at Rs. 172.06,"
John Keells said. "At the
ensuing sales, it is likely that whilst the demand from Russia and
the CIS continue to strengthen, the demand from Middle Eastern markets
such as Iran and Saudi Arabia will be at a slightly lower key. A
further market correction is likely but no serious erosion in price
levels is expected." Asia Siyaka
Commodities said that with stylish Low Grown teas proving difficult
to sell owing to lack of demand, if the trend continues, they expect
a decline in offerings of these teas at future auctions. Forbes and
Walker Tea Brokers said the total sale average for January-July
2003 of Rs. 144/10 reflects a decline of Rs. 4 when compared with
the Rs. 148/10 average for the same period last year. Low Grown average shows a decline of Rs. 7/06 whilst the Medium Grown recorded a decline of Rs. 3/93 when compared with the same period last year. The High Grown average shows a marginal increase of Rs. 0.96 when compared with January/July 2002 Major
drive to promote tea as preferred beverage Explaining
the rationale behind the concept of "DiversiTEA in SpecialiTEA",
Mr. Hasitha de Alwis, Actg. Director General, Sri Lanka Tea Board,
said that the 21st century has seen the emergence of tea as an exciting,
refreshing beverage. "No longer
is it considered a cheap alternative to water, or the average man's
drink," he said. "Instead a new breed of discerning customers
around the world is discovering the diversity found in teas - that
there are different teas for different occasions and different purposes.
Vastly different teas, each with their own peculiar taste profiles
to suit the consumers varying moods at different times of the day
- a countless number of sensations yet to be discovered." Historically
tea has been consumed not only as a beverage but also for its medicinal
properties. This is reinforced by the outcomes of research conducted
by current day scientists and food technologists who continue to
uncover its many health-giving properties. "Exciting for us
in Sri Lanka, is the possibility that teas from different agro-climatic
zones have uniquely different properties in addition to their vastly
differing tastes," de Alwis said. "Competitiveness
is the key to survival. Survival in the tea industry will depend
on our response to other beverages competing with tea for a 'share
of throat'. Product diversification and specialized marketing are
tools that would give tea a competitive edge. No longer can tea
companies be content with marketing just one quality and brand of
tea; rather to remain competitive they will have to extend their
range of products to cater to many segments - both niche and mass
market - that make up the world's new generation of tea consumers." In order to
make Sri Lanka competitive in the global tea market and position
Sri Lanka's tea industry in the 21st century, the teas from different
agro-climatic zones, which have uniquely different properties, in
addition to their vastly differing tastes, are being promoted. The
many different grades of tea produced by each tea factory are also
being highlighted. In this context, "The Speciality Tea of
the Year" competition was conducted in respect of teas from
the different agro-climatic zones and the different grades produced
and offered at the Colombo Tea Auction over the last one year. The
winners of this competition will be introduced to the delegates
and presented awards during the International Tea Convention. In a further effort to promote speciality teas from Sri Lanka, a group of about 30 speciality tea dealers from the American Speciality Tea Registry have been invited to visit Sri Lanka during this period. They will be conducted on a week's intensive tea tour during their stay in Sri Lanka. Ten members of the Japanese Tea Association, who are attending the International Tea Convention, will arrive a few days before this event to undertake a similar familiarization tea tour. A significant number of journalists representing leading international tea journals and magazines too will visit Sri Lanka to cover the series of tea events. Career
opportunities in the industry The "tea
events" revolve around the United Nation's Food and Agricultural
Organisation's Inter-Governmental Group meeting on Tea, scheduled
to take place in Sri Lanka from 18th- 20th of August. The Colombo
Tea Traders' Association (CTTA) will be holding an International
Tea Convention and Exhibition and other related events, in association
with the Sri Lanka Tea Board and the Sri Lanka Tea Cluster. The
organizers are sparing no effort to ensure that Sri Lanka's tea
industry obtains the optimum exposure through this opportunity.
With a view to bringing the national educational institutions closer
to the tea industry, a special programme for students has been included
in the line up of "tea events". The programme
for students will feature workshops in which eminent personalities
in the tea industry will present an overview of the tea industry
and highlight career opportunities in relation to areas such as
export marketing, engineering and agriculture. The Chairman
of the International Tea Convention and Exhibition Organizing Committee,
Mr. Dickie Juriansz, said that the main objective of including a
special programme for students to coincide with the series of major
events in the tea calendar in August, was to create a greater awareness
of the tea industry by providing an insight into its different sectors
and its challenges so as to stimulate interest and motivate promising
talent to seek career opportunities in the industry. "The special
programme for students is also designed in order to attract appropriate
visitors to the exhibition from student groups with related interests,
to enable them to benefit from such exposure," he explained. Mr. Mahen Dayananda,
Chairman, Colombo Tea Traders' Association, said that the Association
considers it vital that the tea industry should work closely with
the higher educational institutions of this country. "This
initiative will ensure cooperation and collaboration in developing
appropriate tools for the industry, such as equipment and machinery.
It will also enhance and refine the production processes, improve
agricultural and management practices and attract the best of the
younger generation, with specialized academic training in appropriate
disciplines into the industry." he said. In this context, he
observed that "marketing is a critical aspect of the agricultural
industries of this country and any work undertaken towards their
development, particularly in the field of scientific research, should
be market oriented. This is why the theme of the convention has
been designed to focus sharply on this objective." The organizers
have invited universities and schools in Sri Lanka to nominate participants
for these workshops, which are free of charge, as a consequence
of generous sponsorship by the Sri Lanka Tea Board. A limited number
of students will be selected from each educational institute in
order to ensure representation from a wide spectrum of social and
cultural backgrounds. This will include those from rural areas,
with emphasis on tea growing regions, and will target estate schools
as well. Separate workshops are being arranged for students from Colombo and its suburbs and for those from the outstations. These workshops will be conducted in Sinhala and English, with Tamil interpretation services to suit the requirements of the students. Over 1,500 participants are expected to benefit from these workshops. All participants at the workshops will be given free passes to visit the international tea exhibition and will be conducted on guided tours of the exhibition. Furthermore, interested universities have been encouraged to participate at the exhibition since the Colombo Tea Traders' Association has identified the importance of developing and strengthening the linkages between the universities in this country and the tea industry. |
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